EX-99.1

EX-99.1 2 d461985dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

LOGO

Popular, Inc. Announces First Quarter 2023 Financial Results

•

Net income of $159.0 million in Q1 2023, compared to net income of $257.1 million in Q4 2022; the results of Q4 2022 included a tax benefit of $68.2 million related to the partial release of the deferred tax valuation allowance in the U.S.

•

Net interest margin of 3.22% in Q1 2023, compared to 3.28% in Q4 2022; net interest margin on a taxable equivalent basis of 3.46% in Q1 2023, compared to 3.64% in Q4 2022.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $27.1 million from Q4 2022; NPLs to loans ratio at 1.3% vs. 1.4% in Q4 2022;

•

Net charge-offs (“NCOs”) increased by $1.6 million from Q4 2022; annualized NCOs at 0.41% of average loans held-in-portfolio vs. 0.39% in Q4 2022;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.13% vs. 2.25% in Q4 2022; and

•

ACL to NPLs at 167.1% vs. 163.9% in Q4 2022.

•

Loans increased by $260.6 million, $334.5 million in average quarterly balances, from Q4 2022.

•

Deposit balances decreased by $273.3 million, $1.3 billion in average quarterly balances, from Q4 2022.

•

Total borrowings at Q1 2023 were $1.4 billion, flat compared to Q4 2022.

•

Common Equity Tier 1 ratio of 16.73%, Common Equity per Share of $61.82 and Tangible Book Value per Share of $50.15 at March 31, 2023.

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $159.0 million for the quarter ended March 31, 2023, compared to net income of $257.1 million for the quarter ended December 31, 2022. Excluding the effects of the partial release of $68.2 million of the deferred tax asset valuation allowance, the net income for the fourth quarter was $188.9 million.

Ignacio Alvarez, President and Chief Executive Officer, said: “We reported strong results for the first quarter as we continued to support our clients during a period of increased volatility and uncertainty. Our diversified business model and strong deposit base, robust capital and liquidity positions are a source of strength and allow us to continue to meet our clients’ needs, as reflected by the growth in our loan portfolio and client base during the quarter. We remain optimistic about the opportunities that lie ahead as we remain vigilant of potential risks stemming from continued inflation and economic and market uncertainty. Economic trends in Puerto Rico are positive, and a considerable amount of recovery funds yet to be disbursed are expected to support additional economic activity in future years. I want to express my gratitude to our colleagues; it is their effort and commitment that lead to our customers’ continued trust in Popular.”

Significant Events

Issuance of Senior Notes

On March 13, 2023, the Corporation issued $400 million aggregate principal amount of 7.25% Senior Notes due 2028 (the “Notes”) in an underwritten public offering. The Corporation intends to use the net proceeds of the offering to redeem or repay $300 million aggregate principal amount of its outstanding 6.125% Senior Notes due September 2023.

Refer to Table I for further details of liquidity sources.

Earnings Highlights


(Unaudited)	Quarters ended
(Dollars in thousands, except per share information)	31-Mar-23		31-Dec-22			31-Mar-22
Net interest income	$	531,656	$	559,566		$	494,312
Provision for credit losses (benefit)		47,637		49,531			(15,500	)

Net interest income after provision for credit losses (benefit)		484,019		510,035			509,812
Other non-interest income		161,961		158,465			154,692
Operating expenses		440,687		461,708			402,339

Income before income tax		205,293		206,792			262,165
Income tax expense (benefit)		46,314		(50,347	)		50,479

Net income	$	158,979	$	257,139		$	211,686

Net income applicable to common stock	$	158,626	$	256,786		$	211,333

Net income per common share - basic	$	2.22	$	3.56		$	2.69

Net income per common share - diluted	$	2.22	$	3.56		$	2.69

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 Tables D and E for the quarter ended March 31, 2023 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.

For the quarter ended March 31, 2023, net interest income was $531.7 million, compared to $559.6 million in the previous quarter, a decrease of $27.9 million. The impact of two less days in the quarter results in a reduction of $9.0 million to net interest income and impacts the net interest margin for the quarter. Net interest income on a taxable equivalent basis for the first quarter of 2023 was $570.4 million compared to $621.5 million in the previous quarter, a decrease of $51.1 million. The higher variance in the taxable equivalent net interest income as compared to the GAAP net interest income is related to a higher effective tax during the first quarter of 2023 due to a higher disallowed interest expense as a result of the increase in the Corporation’s cost of deposits. Refer to the Income taxes discussion for further information.

Net interest margin for the quarter was 3.22% compared to 3.28% in the fourth quarter of 2022 or a decrease of 6 basis points. On a taxable equivalent basis, net interest margin for the first quarter of 2023 was 3.46%, compared to 3.64% for the prior quarter. The main variances in net interest income on a taxable equivalent basis were:

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Lower interest income from money market, investment and trading securities by $15.4 million driven by lower average volume by $1.5 billion;

•

higher interest expense on deposits by $53.9 million due to the increase in rates, mainly from Puerto Rico government, commercial deposits and Popular Bank (“PB”) deposits;

Partially offset by:

•

higher interest income from loans by $18.1 million resulting from an increase in average loans by $336 million reflecting increases in both PB and Banco Popular de Puerto Rico (“BPPR”) and across most major lending segments except construction loans in PB. Loan origination in a higher interest rate environment and the repricing of adjustable-rate loans resulted in a higher yield on loans by 27 basis points. The categories with the highest impact were commercial loans with an increase of $10.8 million in interest income, or 31 basis points, and consumer loans which increased $4.2 million in interest income, or 59 basis points. The yield on the construction portfolio increased by 86 basis points but was offset by lower average balances.

Net interest income for the BPPR segment amounted to $449.8 million for the first quarter of 2023, compared to $472.4 million in the fourth quarter of 2022. Net interest margin decreased slightly to 3.24% compared to 3.26% in the fourth quarter of 2022. The decrease in net interest income of $22.6 million was mainly driven by a higher cost of deposits, partially offset by an improvement in the yield on earning assets. The latter increased 30 basis points driven by the repricing of money market investments and adjustable-rate loans and a higher average volume of loans by $150 million. Earning assets decreased by $1.5 billion, driven primarily by the decrease of P.R. public sector and commercial interest-bearing deposits. The cost of interest-bearing deposits increased 48 basis points to 1.61% from 1.13% the previous quarter. The increase in the cost of deposits was mainly impacted by the repricing of public funds and corporate clients. Total deposit costs for the quarter increased by 35 basis points, from 0.83% to 1.18%.

Net interest income for PB was $90.1 million for the quarter ended March 31, 2023, compared to $94.2 million during the previous quarter, a decrease of $4.1 million. Net interest margin decreased 21 basis points in the quarter to 3.34% compared to 3.55% in the fourth quarter of 2022. The decrease in net interest margin was mostly driven by a higher cost of deposits, partially offset by a higher volume of loans and the repricing of adjustable-rate loans driven by the changes in interest rates. The cost of interest-bearing deposits was 2.47% compared to 1.71%, or an increase of 76 basis points, while total deposit cost was 2.01% compared to 1.34% in the previous quarter.

Non-interest income

Non-interest income amounted to $162.0 million for the first quarter of 2023, an increase of $3.5 million compared to $158.5 million for the fourth quarter of 2022. The main factors that contributed to the variance in non-interest income were:

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higher other service fees by $1.1 million mainly due to higher credit card fees, mainly from commercial clients, and higher investment management and trust fees, partially offset by lower insurance fees, including contingent payments typically received during the fourth quarter;

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The first quarter of 2023’s results included $7.0 million in income from the successful insurance claim reimbursements related to prior period legal matters while the fourth quarter of 2022’s results included a gain of $8.2 million related to a recovery on the sale of a previously charged-off investment.

Refer to Table B for further details.

Operating expenses

Operating expenses for the first quarter of 2023 totaled $440.7 million, a decrease of $21.0 million when compared to the fourth quarter of 2022. The variance in operating expenses was driven primarily by:

•

lower professional fees by $15.7 million mainly due to lower advisory expenses arising from the Corporation’s Transformation initiative designed to expand its digital capabilities, modernize its technology platform, incurred in the fourth quarter of 2022; though this initiative is ongoing, its initial planning stages required certain up front expenditures in 2022;

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lower technology and software expenses by $9.7 million mainly due to a decrease in IT professional and consulting fees by $7.6 million, driven by the incurrence during the fourth quarter of 2022 of higher Transformation initiative expenses, and lower network management, application processing and hosting expenses by $1.9 million;

•

lower other business promotion expenses by $9.3 million mainly due to lower seasonal donations, advertising and sponsorship expenses, which are typically higher in the fourth quarter; and

•

lower other operating expenses by $3.3 million mainly due to a reserve of $2.0 million in legal matters recorded during the fourth quarter of 2022 and lower mortgage servicing related losses;

partially offset by:

•

higher personnel costs by $8.6 million, mainly due to higher salaries by $8.9 million as a result of an increase in minimum salary at BPPR effective in January 2023 and higher headcount, an increase in health insurance costs by $2.8 million, and higher payroll taxes, fringe benefits and other compensation expenses by $5.2 million that traditionally are higher during the first quarter of the year; partially offset by a decrease in profit-sharing accrual of $8.0 million;

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higher credit and debit card processing and transactional expenses by $2.3 million mainly due to higher volume of transactions;

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higher FDIC deposit insurance expense by $2.5 million due to amendments to the Deposit Insurance Fund restoration plan implemented by the FDIC that increased the base deposit assessment rate by 2 basis points, annually, beginning with the first quarterly assessment period of 2023; and

•

lower other real estate owned (OREO) benefit by $7.5 million mainly due to lower gain on sale of mortgage and commercial properties by $5.1 million and lower expense claim reimbursement from federal government agency programs by $1.2 million.

Management believes that the level of expenditures related to the Corporation’s Transformation initiative incurred during the first quarter of 2023 reflects the current maturity of the project: as the initiative matures, expenses are expected to shift from being primarily advisory-related to expenses related to the development and execution of implementation plans, which have a slower pace of expenditure but are expected to accelerate as the year progresses.

Full-time equivalent employees were 8,975 as of March 31, 2023, compared to 8,813 as of December 31, 2022.

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

Income taxes

For the quarter ended March 31, 2023, the Corporation recorded an income tax expense of $46.3 million compared to an income tax benefit of $50.3 million for the previous quarter. The unfavorable variance in income tax expense was mainly attributable to a partial reversal of the deferred tax asset valuation allowance of the U.S. operation during the fourth quarter of 2022 of $68.2 million and a true-up adjustment of $9.5 million in relation to the fiscal year 2021 tax returns for the P.R. subsidiaries filed in the fourth quarter and related year-to-date adjustments for tax exempt income. The effective tax rate (“ETR”) for the first quarter of 2023 was of 23%. The ETR for the fourth quarter of 2022 was (24)%. Excluding the impact of the partial release of the valuation allowance and true up adjustment, the ETR for the fourth quarter was 12%. The higher ETR during the first quarter of 2023 is mainly due to lower projected tax-exempt income and higher disallowed interest expense deductions as a result of an increase in the Corporation’s projected interest expense for the remainder of 2023. Under the Puerto Rico income tax law, taxable income is computed excluding the exempt interest income but requires a disallowance of the related interest and administrative expenses allocated to support the exempt assets’ income, which has the effect of reducing the benefit of tax-exempt income.

The ETR of the Corporation is impacted by the composition and source of its taxable income. The Corporation expects its ETR for the year 2023 to be within a range from 21% to 26%.

Credit Quality

During the first quarter of 2023, the Corporation continued to reflect strong credit quality metrics with low levels of NCOs and decreasing NPLs. We continue to closely monitor changes in the macroeconomic environment and on borrower performance, given inflationary pressures and geopolitical risks. However, management believes that the improvement over recent years in the risk profile of the Corporation’s loan portfolios positions Popular to continue to operate successfully under the current environment.

The following presents credit quality results for the first quarter of 2023:

•

At March 31, 2023, total non-performing loans held-in-portfolio decreased by $27.1 million from December 31, 2022. BPPR’s NPLs decreased by $23.0 million, mostly driven by lower mortgage and consumer NPLs by $18.3 million and $13.7 million, respectively, in part offset by higher commercial loans NPLs by $8.8 million. The consumer NPLs decrease was mostly driven by a $10.5 million line of credit charge-off on a single relationship, while the commercial NPLs increase was driven by a $14.3 million loan relationship. PB’s NPLs decreased by $4.0 million quarter-over-quarter, mostly due to lower mortgage NPLs by $5.8 million. At March 31, 2023, the ratio of NPLs to total loans held-in-portfolio was at 1.3%, compared to 1.4% in the fourth quarter of 2022.

•

Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $6.8 million quarter-over-quarter. In BPPR, total inflows increased by $10.4 million, mainly driven by the abovementioned commercial relationship, while PB inflows decrease by $3.5 million quarter-over-quarter, mainly driven by lower commercial inflows by $2.8 million.

•

NCOs amounted to $32.8 million, increasing by $1.6 million when compared to the fourth quarter of 2022. BPPR’s NCOs increased by $11.6 million quarter-over-quarter, mainly driven by higher consumer NCOs by $10.4 million, mostly due to the previously mentioned $10.5 million line of credit charge-off. PB’s NCOs decreased by $10.0 million quarter-over-quarter, as the prior quarter included an $8.7 million charge-off on a healthcare loan. During the first quarter of 2023, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.41%, compared to 0.39% in the fourth quarter of 2022. Excluding the impact of the abovementioned $10.5 line of credit charge-off, the annualized net charge-off ratio was 0.28%. Refer to Table O for further information on net charge-offs and related ratios.

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At March 31, 2023, the ACL decreased by $31.2 million from the fourth quarter of 2022 to $689.1 million. The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02 in March 2022, which eliminates the accounting guidance for troubled debt restructures (“TDRs”) and the requirement to measure the effect of the concession from a loan modification, for which the Corporation used a discounted cash flow (“DCF”) method. This impact resulted in a release in the ACL of approximately $45.6 million, mostly as a result of our mortgage TDR portfolio, presented as an adjustment to the beginning balance of retained earnings, net of tax effect. Excluding the impact of ASU 2022-02, the ACL increased by $14.4 million mainly within the Puerto Rico region. 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.

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The 2023 annualized GDP growth in the baseline scenario stands at 2.1% and 1.3% for Puerto Rico and the United States, respectively, increasing from 1.3% and 0.7% in the previous quarter. The 2023 forecasted average unemployment rate continues strong, improving quarter-over-quarter to 6.9% and 3.5% for Puerto Rico and United States, respectively, from 7.8% and 4.0% respectively, in the previous forecast.

•

Excluding ASU 2022-02 impact, in BPPR the ACL increased by $13.8 million, mostly driven by reductions in the P.R. Home Pricing Index (“HPI”) forecast, higher loan volumes and migration of consumer credit scores. In the PB segment the ACL remained essentially flat quarter-over-quarter. The Corporation’s ratio of the allowance for credit losses to loans held-in-portfolio was 2.13% in the first quarter of 2023, compared to 2.25% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 167.1%, compared to 163.9% in the previous quarter.

•

The provision for credit losses for the loan portfolios for the first quarter of 2023 was an expense of $47.1 million, compared to an expense of $48.3 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was an expense of $45.2 million, compared to an expense of $44.4 million in the previous quarter, while the provision for PB was an expense of $1.9 million, compared to an expense of $3.9 million in the previous quarter.

•

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-Mar-23			31-Dec-22			31-Mar-22
Non-performing loans held-in-portfolio	$	412,383		$	439,441		$	519,921
Other real estate owned (“OREO”)		91,721			89,126			90,567

Total non-performing assets	$	504,104		$	528,567		$	610,488

Net charge-offs (recoveries) for the quarter	$	32,813		$	31,200		$	3,781


Ratios:
Loans held-in-portfolio	$	32,338,373		$	32,077,769		$	29,588,190
Non-performing loans held-in-portfolio to loans held-in-portfolio		1.28	%		1.37	%		1.76	%
Allowance for credit losses to loans held-in-portfolio		2.13			2.25			2.29
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		167.11			163.91			130.36

Refer to Table M for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios


(Unaudited)	Quarters ended
(In thousands)	31-Mar-23		31-Dec-22		31-Mar-22
Provision for credit losses (benefit) - loan portfolios:
BPPR	$	45,203	$	44,383	$	(12,661	)
Popular U.S.		1,943		3,949		(1,744	)

Total provision for credit losses (benefit) - loan portfolios	$	47,146	$	48,332	$	(14,405	)

Credit Quality by Segment


(Unaudited)
(In thousands)	Quarters ended
BPPR	31-Mar-23			31-Dec-22			31-Mar-22
Provision for credit losses (benefit) - loan portfolios	$	45,203		$	44,383		$	(12,661	)
Net charge-offs (recoveries)		31,464			19,846			5,502
Total non-performing loans held-in-portfolio		378,979			402,009			486,816
Allowance / loans held-in-portfolio		2.57	%		2.73	%		2.74	%
Allowance / non-performing loans held-in-portfolio		154.89	%		153.12	%		118.45	%

	Quarters ended
Popular U.S.	31-Mar-23			31-Dec-22			31-Mar-22
Provision for credit losses (benefit) - loan portfolios	$	1,943		$	3,949		$	(1,744	)
Net charge-offs (recoveries)		1,349			11,354			(1,721	)
Total non-performing loans held-in-portfolio		33,404			37,432			33,105
Allowance / loans held-in-portfolio		1.07	%		1.10	%		1.18	%
Allowance / non-performing loans held-in-portfolio		305.69	%		279.86	%		305.64	%

Financial Condition Highlights


(Unaudited)
(In thousands)	31-Mar-23		31-Dec-22		31-Mar-22
Cash and money market investments	$	6,560,301	$	6,084,096	$	10,508,840
Investment securities		25,951,936		26,553,317		26,658,289
Loans		32,338,373		32,077,769		29,588,190
Total assets		67,675,759		67,637,917		69,525,082
Deposits		60,953,888		61,227,227		62,862,295
Borrowings		1,402,626		1,400,319		1,060,706
Total liabilities		63,205,034		63,544,492		64,853,836
Stockholders’ equity		4,470,725		4,093,425		4,671,246

Total assets amounted to $67.7 billion at March 31, 2023, an increase of $37.8 million from the fourth quarter of 2022, driven by:

•

an increase in overnight FED fund balances of $483.1 million, reflecting net funding activities and the issuance of the $400 million senior notes due in 2028, offset by loan originations, the repayment of short-term borrowings and the reduction in deposits discussed below;

•

an increase in securities held to maturity of $37.8 million, mainly due to the amortization of $42.0 million of the discount related to securities previously reclassified from the available-for-sale to held-to-maturity (“HTM”), which has an offsetting unrealized loss included within other comprehensive income that is also being accreted, resulting in a neutral effect to earnings; and

•

an increase in loans held-in-portfolio of $260.6 million, reflected across all portfolios in BPPR, and an increase in commercial loans at PB, offset by a decrease in its construction and consumer loans portfolio.

partially offset by:

•

a decrease in other assets of $144.5 million due to a positive variance of $125.3 million in securities trade receivable; and

•

a decrease in securities available for sale of $631.2 million reflecting repayment and maturities, offset by a reduction of $215.5 million in unrealized losses mainly from U.S. Treasury and mortgage-backed securities at BPPR.

Total liabilities decreased by $339.5 million from the fourth quarter of 2022, driven by:

•

a decrease of $273.3 million in deposits, mainly in public sector accounts as well as interest bearing retail deposits at BPPR, partially offset by an increase at PB, mainly from time and savings deposits gathered through its direct channel; and

•

a decrease in short term borrowings of $365.0 million due to the repayment of advances with the FHLB at Popular Bank

partially offset by:

•

an increase in notes payable of $392.4 million due to the issuance of $400 million in senior notes due on 2028.

Stockholders’ equity increased by $377.3 million from the fourth quarter of 2022, principally due to net income for the quarter of $159.0 million, the after-tax impact of the favorable variance in net unrealized losses in the portfolio of available-for-sale securities of $191.8 million, the amortization of the unrealized losses from securities reclassified to HTM as described above of $33.6 million, and the adoption of the new ASU during the quarter of $28.8 million, partially offset by dividends declared for the quarter.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.73%, $61.82 and $50.15, respectively, at March 31, 2023, compared to 16.39%, $56.66 and $44.97 at December 31, 2022. Refer to Table A for capital ratios.

During the first quarter of 2023 the Corporation had no material incremental use of its available liquidity sources. At March 31, 2023, the Corporation’s available liquidity increased to $18.3 billion from $17.0 billion on December 31, 2022. Refer to Table I for additional information on the Corporation’s liquidity sources.

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 regarding 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, 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. Other potential factors include Popular’s ability to successfully execute its transformation initiative, including, but not limited to, achieving projected earnings, efficiencies and return on tangible common equity and accurately anticipating costs and expenses associated therewith, changes to regulatory capital, liquidity and resolution-related requirements applicable to financial institutions in response to recent developments affecting the banking sector and the impact of bank failures or adverse developments at other banks and related negative media coverage of the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks. 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 Form 10-K for the year ended December 31, 2022 and in our Form 10-Q for the quarter ended March 31, 2023 to be filed with the Securities and Exchange Commission. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.

About Popular, Inc.

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

Conference Call

Popular will hold a conference call to discuss its financial results today, Wednesday, April 26, 2023 at 11:00 a.m. Eastern Time. The call will be broadcast 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 a dial-in telephone number 1-833-470-1428 (Toll Free) or 1-404-975-4839 (Local). The dial-in access code is 980053.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Thursday, May 25, 2023. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 275290.

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

Popular, Inc.

Financial Supplement to First Quarter 2023 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) - For the quarter ended March 31, 2023 and December 31, 2022

Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - For the quarter ended March 31, 2023 and March 31, 2022

Table F - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE [Left Blank]

Table G - Mortgage Banking Activities & Other Service Fees

Table H - Loans and Deposits

Table I - Liquidity Sources, Deposits and Borrowings

Table J - Loan Delinquency - PUERTO RICO OPERATIONS

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

Table L - Loan Delinquency - CONSOLIDATED

Table M - Non-Performing Assets

Table N - Activity in Non-Performing Loans

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

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

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

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

Table S - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to First Quarter 2023 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)


	Quarters ended
	31-Mar-23			31-Dec-22			31-Mar-22
Basic EPS	$	2.22		$	3.56		$	2.69
Diluted EPS	$	2.22		$	3.56		$	2.69
Average common shares outstanding		71,541,778			72,101,177			78,443,706
Average common shares outstanding - assuming dilution		71,606,196			72,192,680			78,595,463
Common shares outstanding at end of period		71,965,984			71,853,720			76,487,523
Market value per common share	$	57.41		$	66.32		$	81.74
Market capitalization - (In millions)	$	4,132		$	4,765		$	6,252
Return on average assets		0.93	%		1.44	%		1.14	%
Return on average common equity		10.00	%		16.59	%		14.38	%
Net interest margin (non-taxable equivalent basis)		3.22	%		3.28	%		2.75	%
Net interest margin (taxable equivalent basis) -non-GAAP		3.46	%		3.64	%		3.05	%
Common equity per share	$	61.82		$	56.66		$	60.78
Tangible common book value per common share (non-GAAP) [1]	$	50.15		$	44.97		$	51.16
Tangible common equity to tangible assets (non-GAAP) [1]		5.40	%		4.84	%		5.69	%
Return on average tangible common equity [1]		11.51	%		19.23	%		16.40	%
Tier 1 capital		16.79	%		16.45	%		16.33	%
Total capital		18.61	%		18.26	%		18.19	%
Tier 1 leverage		8.47	%		8.06	%		6.98	%
Common Equity Tier 1 capital		16.73	%		16.39	%		16.26	%

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


POPULAR, INC.

Financial Supplement to First Quarter 2023 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

	Quarters ended						Variance			Quarter ended			Variance
							Q1 2023						Q1 2023
(In thousands, except per share information)	31-Mar-23			31-Dec-22			vs. Q4 2022			31-Mar-22			vs. Q1 2022
Interest income:
Loans	$	541,210		$	522,042		$	19,168		$	426,791		$	114,419
Money market investments		65,724			50,908			14,816			6,464			59,260
Investment securities		132,088			140,244			(8,156	)		96,466			35,622

Total interest income		739,022			713,194			25,828			529,721			209,301

Interest expense:
Deposits		193,215			139,338			53,877			24,783			168,432
Short-term borrowings		2,885			4,488			(1,603	)		80			2,805
Long-term debt		11,266			9,802			1,464			10,546			720

Total interest expense		207,366			153,628			53,738			35,409			171,957

Net interest income		531,656			559,566			(27,910	)		494,312			37,344
Provision for credit losses (benefit)		47,637			49,531			(1,894	)		(15,500	)		63,137

Net interest income after provision for credit losses (benefit)		484,019			510,035			(26,016	)		509,812			(25,793	)

Service charges on deposit accounts		34,678			34,682			(4	)		40,713			(6,035	)
Other service fees		90,076			89,022			1,054			77,134			12,942
Mortgage banking activities		7,400			6,562			838			12,865			(5,465	)
Net gain (loss), including impairment, on equity securities		1,100			317			783			(2,094	)		3,194
Net gain (loss) on trading account debt securities		378			162			216			(723	)		1,101
Adjustments to indemnity reserves on loans sold		612			(221	)		833			(745	)		1,357
Other operating income		27,717			27,941			(224	)		27,542			175

Total non-interest income		161,961			158,465			3,496			154,692			7,269

Operating expenses:
Personnel costs
Salaries		125,393			116,503			8,890			98,673			26,720
Commissions, incentives and other bonuses		31,162			39,570			(8,408	)		35,521			(4,359	)
Pension, postretirement and medical insurance		15,378			12,452			2,926			12,783			2,595
Other personnel costs, including payroll taxes		26,827			21,612			5,215			20,019			6,808

Total personnel costs		198,760			190,137			8,623			166,996			31,764
Net occupancy expenses		26,039			27,812			(1,773	)		24,723			1,316
Equipment expenses		8,412			9,828			(1,416	)		8,389			23
Other taxes		16,291			16,142			149			15,715			576
Professional fees		33,431			49,159			(15,728	)		36,792			(3,361	)
Technology and software expenses		68,559			78,264			(9,705	)		70,535			(1,976	)
Processing and transactional services
Credit and debit cards		12,550			10,278			2,272			11,472			1,078
Other processing and transactional services		21,359			22,509			(1,150	)		19,481			1,878

Total processing and transactional services		33,909			32,787			1,122			30,953			2,956
Communications		4,088			3,857			231			3,673			415
Business promotion
Rewards and customer loyalty programs		12,348			13,538			(1,190	)		10,021			2,327
Other business promotion		6,523			14,596			(8,073	)		5,062			1,461

Total business promotion		18,871			28,134			(9,263	)		15,083			3,788
FDIC deposit insurance		8,865			6,342			2,523			7,372			1,493
Other real estate owned (OREO) income		(1,694	)		(9,180	)		7,486			(2,713	)		1,019
Other operating expenses
Operational losses		6,800			9,018			(2,218	)		11,825			(5,025	)
All other		17,561			18,614			(1,053	)		12,105			5,456


Total other operating expenses		24,361		27,632			(3,271	)		23,930		431
Amortization of intangibles		795		794			1			891		(96	)

Total operating expenses		440,687		461,708			(21,021	)		402,339		38,348

Income before income tax		205,293		206,792			(1,499	)		262,165		(56,872	)
Income tax (benefit) expense		46,314		(50,347	)		96,661			50,479		(4,165	)
Net income	$	158,979	$	257,139		$	(98,160	)	$	211,686	$	(52,707	)

Net income applicable to common stock	$	158,626	$	256,786		$	(98,160	)	$	211,333	$	(52,707	)

Net income per common share - basic	$	2.22	$	3.56		$	(1.34	)	$	2.69	$	(0.47	)

Net income per common share - diluted	$	2.22	$	3.56		$	(1.34	)	$	2.69	$	(0.47	)

Dividends Declared per Common Share	$	0.55	$	0.55		$	—		$	0.55	$	—


Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

										Variance
										Q1 2023 vs.
(In thousands)	31-Mar-23			31-Dec-22			31-Mar-22			Q4 2022
Assets:
Cash and due from banks	$	462,013		$	469,501		$	439,148		$	(7,488	)
Money market investments		6,098,288			5,614,595			10,069,692			483,693
Trading account debt securities, at fair value		29,839			27,723			36,042			2,116
Debt securities available-for-sale, at fair value		17,173,128			17,804,374			26,359,915			(631,246	)
Debt securities held-to-maturity, at amortized cost		8,563,052			8,525,366			75,984			37,686
Less: Allowance for credit losses		6,792			6,911			7,844			(119	)

Total debt securities held-to-maturity, net		8,556,260			8,518,455			68,140			37,805

Equity securities		185,917			195,854			186,348			(9,937	)
Loans held-for-sale, at lower of cost or fair value		11,181			5,381			55,150			5,800
Loans held-in-portfolio		32,645,023			32,372,925			29,856,356			272,098
Less: Unearned income		306,650			295,156			268,166			11,494
Allowance for credit losses		689,120			720,302			677,792			(31,182	)

Total loans held-in-portfolio, net		31,649,253			31,357,467			28,910,398			291,786

Premises and equipment, net		508,007			498,711			488,390			9,296
Other real estate		91,721			89,126			90,567			2,595
Accrued income receivable		239,815			240,195			204,466			(380	)
Mortgage servicing rights, at fair value		127,475			128,350			125,358			(875	)
Other assets		1,703,285			1,847,813			1,755,847			(144,528	)
Goodwill		827,428			827,428			720,293			—
Other intangible assets		12,149			12,944			15,328			(795	)

Total assets	$	67,675,759		$	67,637,917		$	69,525,082		$	37,842

Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing	$	15,940,850		$	15,960,557		$	16,096,666		$	(19,707	)
Interest bearing		45,013,038			45,266,670			46,765,629			(253,632	)

Total deposits		60,953,888			61,227,227			62,862,295			(273,339	)

Assets sold under agreements to repurchase		123,499			148,609			72,819			(25,110	)
Other short-term borrowings		—			365,000			—			(365,000	)
Notes payable		1,279,127			886,710			987,887			392,417
Other liabilities		848,520			916,946			930,835			(68,426	)

Total liabilities		63,205,034			63,544,492			64,853,836			(339,458	)

Stockholders’ equity:
Preferred stock		22,143			22,143			22,143			—
Common stock		1,047			1,047			1,046			—
Surplus		4,792,619			4,790,993			4,571,111			1,626
Retained earnings		3,982,140			3,834,348			3,143,004			147,792
Treasury stock		(2,025,399	)		(2,030,178	)		(1,668,820	)		4,779
Accumulated other comprehensive loss, net of tax		(2,301,825	)		(2,524,928	)		(1,397,238	)		223,103

Total stockholders’ equity		4,470,725			4,093,425			4,671,246			377,300

Total liabilities and stockholders’ equity	$	67,675,759		$	67,637,917		$	69,525,082		$	37,842


	Popular, Inc.

	Financial Supplement to First Quarter 2023 Earnings Release

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

	For the quarters ended March 31, 2023 and December 31, 2022

	(Unaudited)
Average Volume							Average Yields / Costs										Interest							Variance Attributable to
31-Mar-23		31-Dec-22		Variance			31-Mar-23			31-Dec-22			Variance				31-Mar-23		31-Dec-22		Variance			Rate			Volume
(In millions)																	(In thousands)
$	5,736	$	5,262	$	474			4.65	%		3.84	%		0.81	%	Money market investments	$	65,724	$	50,907	$	14,817		$	9,946		$	4,871
	28,862		30,843		(1,981	)		2.22			2.44			(0.22	)	Investment securities [1]		158,914		189,189		(30,275	)		(19,127	)		(11,148	)
	31		30		1			4.47			4.28			0.19		Trading securities		338		325		13			7			6

	34,629		36,135		(1,506	)		2.63			2.65			(0.02	)	Total money market, investment and trading securities		224,976		240,421		(15,445	)		(9,174	)		(6,271	)

																Loans:
	15,761		15,503		258			6.32			6.01			0.31		Commercial		245,469		234,707		10,762			6,824			3,938
	732		769		(37	)		8.40			7.54			0.86		Construction		15,155		14,615		540			1,263			(723	)
	1,588		1,557		31			6.12			5.92			0.20		Leasing		24,282		23,049		1,233			760			473
	7,388		7,346		42			5.46			5.38			0.08		Mortgage		100,773		98,880		1,893			1,330			563
	3,020		2,961		59			12.85			12.26			0.59		Consumer		95,715		91,519		4,196			2,078			2,118
	3,559		3,576		(17	)		8.14			7.98			0.16		Auto		71,407		71,910		(503	)		(173	)		(330	)

	32,048		31,712		336			6.97			6.70			0.27		Total loans		552,801		534,680		18,121			12,082			6,039

$	66,677	$	67,847	$	(1,170	)		4.72	%		4.54	%		0.18	%	Total earning assets	$	777,777	$	775,101	$	2,676		$	2,908		$	(232	)

																Interest bearing deposits:
$	23,313	$	24,399	$	(1,086	)		2.52	%		1.73	%		0.79	%	NOW and money market [2]	$	144,970	$	106,591	$	38,379		$	42,884		$	(4,505	)
	15,029		15,248		(219	)		0.47			0.29			0.18		Savings		17,443		10,971		6,472			6,771			(299	)
	7,099		6,675		424			1.76			1.29			0.47		Time deposits		30,802		21,776		9,026			7,264			1,762

	45,441		46,322		(881	)		1.72			1.19			0.53		Total interest bearing deposits		193,215		139,338		53,877			56,919			(3,042	)

	15,704		16,110		(406	)										Non-interest bearing demand deposits

	61,145		62,432		(1,287	)		1.28			0.89			0.39		Total deposits		193,215		139,338		53,877			56,919			(3,042	)

	247		450		(203	)		4.74			3.96			0.78		Short-term borrowings		2,885		4,488		(1,603	)		710			(2,313	)
	947		913		34			4.78			4.30			0.48		Other medium and long-term debt		11,266		9,802		1,464			855			609

	46,635		47,685		(1,050	)		1.80			1.28			0.52		Total interest bearing liabilities (excluding demand deposits)		207,366		153,628		53,738			58,484			(4,746	)

	4,338		4,052		286											Other sources of funds

$	66,677	$	67,847	$	(1,170	)		1.26	%		0.90	%		0.36	%	Total source of funds		207,366		153,628		53,738			58,484			(4,746	)

								3.46	%		3.64	%		(0.18	)%	Net interest margin/income on a taxable equivalent basis (Non-GAAP)		570,411		621,473		(51,062	)	$	(55,576	)	$	4,514

								2.92	%		3.26	%		(0.34	)%	Net interest spread

																Taxable equivalent adjustment		38,755		61,907		(23,152	)

								3.22	%		3.28	%		(0.06	)%	Net interest margin/income non-taxable equivalent basis (GAAP)	$	531,656	$	559,566	$	(27,910	)

Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the change in each category.

[1]	Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity.

[2]	Includes interest bearing demand deposits corresponding to certain government entities in Puerto Rico.

Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

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

For the quarters ended March 31, 2023 and March 31, 2022

(Unaudited)


Average Volume							Average Yields / Costs										Interest							Variance Attributable to
31-Mar-23		31-Mar-22		Variance			31-Mar-23			31-Mar-22			Variance				31-Mar-23		31-Mar-22		Variance			Rate			Volume

(In millions)																	(In thousands)
$	5,736	$	14,763	$	(9,027	)		4.65	%		0.18	%		4.47	%	Money market investments	$	65,724	$	6,464	$	59,260		$	65,572		$	(6,312	)
	28,862		28,471		391			2.22			1.95			0.27		Investment securities [1]		158,914		137,350		21,564			21,280			284
	31		70		(39	)		4.47			5.90			(1.43	)	Trading securities		338		1,019		(681	)		(206	)		(475	)

	34,629		43,304		(8,675	)		2.63			1.35			1.28		Total money market, investment and trading securities		224,976		144,833		80,143			86,646			(6,503	)

																Loans:
	15,761		13,741		2,020			6.32			5.08			1.24		Commercial		245,469		172,128		73,341			45,728			27,613
	732		727		5			8.40			5.45			2.95		Construction		15,155		9,758		5,397			5,320			77
	1,588		1,393		195			6.12			5.95			0.17		Leasing		24,282		20,720		3,562			586			2,976
	7,388		7,388		—			5.46			5.24			0.22		Mortgage		100,773		96,768		4,005			4,005			—
	3,020		2,537		483			12.85			11.20			1.65		Consumer		95,715		70,062		25,653			11,118			14,535
	3,559		3,460		99			8.14			8.12			0.02		Auto		71,407		69,252		2,155			169			1,986

	32,048		29,246		2,802			6.97			6.06			0.91		Total loans		552,801		438,688		114,113			66,926			47,187

$	66,677	$	72,550	$	(5,873	)		4.72	%		3.25	%		1.47	%	Total earning assets	$	777,777	$	583,521	$	194,256		$	153,572		$	40,684

																Interest bearing deposits:
$	23,313	$	28,288	$	(4,975	)		2.52	%		0.10	%		2.42	%	NOW and money market [2]	$	144,970	$	7,323	$	137,647		$	139,459		$	(1,812	)
	15,029		16,434		(1,405	)		0.47			0.16			0.31		Savings		17,443		6,564		10,879			12,314			(1,435	)
	7,099		6,737		362			1.76			0.66			1.10		Time deposits		30,802		10,896		19,906			16,703			3,203

	45,441		51,459		(6,018	)		1.72			0.20			1.52		Total interest bearing deposits		193,215		24,783		168,432			168,476			(44	)

	15,704		16,143		(439	)										Non-interest bearing demand deposits

	61,145		67,602		(6,457	)		1.28			0.15			1.13		Total deposits		193,215		24,783		168,432			168,476			(44	)

	247		91		156			4.74			0.36			4.38		Short-term borrowings		2,885		80		2,805			2,081			724
	947		1,013		(66	)		4.78			4.18			0.60		Other medium and long-term debt		11,266		10,546		720			426			294

	46,635		52,563		(5,928	)		1.80			0.27			1.53		Total interest bearing liabilities (excluding demand deposits)		207,366		35,409		171,957			170,983			974

	4,338		3,844		494											Other sources of funds

$	66,677	$	72,550	$	(5,873	)		1.26	%		0.20	%		1.06	%	Total source of funds		207,366		35,409		171,957			170,983			974

								3.46	%		3.05	%		0.41	%	Net interest margin/income on a taxable equivalent basis (Non-GAAP)		570,411		548,112		22,299		$	(17,411	)	$	39,710

								2.92	%		2.98	%		(0.06	)%	Net interest spread

																Taxable equivalent adjustment		38,755		53,800		(15,045	)

								3.22	%		2.75	%		0.47	%	Net interest margin/income non-taxable equivalent basis (GAAP)	$	531,656	$	494,312	$	37,344

Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the change in each category.

[1]	Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity.

[2]	Includes interest bearing demand deposits corresponding to certain government entities in Puerto Rico.

Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

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

[THIS PAGE INTENTIONALLY LEFT BLANK]

Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

Table G - Mortgage Banking Activities and Other Service Fees

(Unaudited)

Mortgage Banking Activities


	Quarters ended									Variance
(In thousands)	31-Mar-23			31-Dec-22			31-Mar-22			Q1 2023 vs.Q4 2022			Q1 2023 vs.Q1 2022
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees	$	8,689		$	8,852		$	9,323		$	(163	)	$	(634	)
Mortgage servicing rights fair value adjustments		(1,376	)		(2,610	)		1,088			1,234			(2,464	)

Total mortgage servicing fees, net of fair value adjustments		7,313			6,242			10,411			1,071			(3,098	)

Net gain (loss) on sale of loans, including valuation on loans held-for-sale		263			123			(1,534	)		140			1,797

Trading account (loss) profit:
Unrealized (loss) gains on outstanding derivative positions		(131	)		—			2			(131	)		(133	)
Realized gains on closed derivative positions		56			310			4,135			(254	)		(4,079	)

Total trading account (loss) profit		(75	)		310			4,137			(385	)		(4,212	)

Losses on repurchased loans, including interest advances		(101	)		(113	)		(149	)		12			48

Total mortgage banking activities	$	7,400		$	6,562		$	12,865		$	838		$	(5,465	)

Other Service Fees


	Quarters ended						Variance
(In thousands)	31-Mar-23		31-Dec-22		31-Mar-22		Q1 2023 vs.Q4 2022			Q1 2023 vs.Q1 2022
Other service fees:
Debit card fees	$	13,166	$	13,379	$	11,779	$	(213	)	$	1,387
Insurance fees		13,873		14,587		14,156		(714	)		(283	)
Credit card fees		40,498		39,777		33,642		721			6,856
Sale and administration of investment products		6,558		5,793		5,791		765			767
Trust fees		5,775		5,223		5,927		552			(152	)
Other fees		10,206		10,263		5,839		(57	)		4,367

Total other service fees	$	90,076	$	89,022	$	77,134	$	1,054		$	12,942

Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

Table H - Loans and Deposits

(Unaudited)

Loans - Ending Balances


							Variance
(In thousands)	31-Mar-23		31-Dec-22		31-Mar-22		Q1 2023 vs.Q4 2022			Q1 2023 vs.Q1 2022
Loans held-in-portfolio:
Commercial	$	16,005,261	$	15,739,132	$	14,028,246	$	266,129		$	1,977,015
Construction		698,996		757,984		744,783		(58,988	)		(45,787	)
Leasing		1,614,344		1,585,739		1,426,122		28,605			188,222
Mortgage		7,405,907		7,397,471		7,326,346		8,436			79,561
Auto		3,517,940		3,512,530		3,430,162		5,410			87,778
Consumer		3,095,925		3,084,913		2,632,531		11,012			463,394

Total loans held-in-portfolio	$	32,338,373	$	32,077,769	$	29,588,190	$	260,604		$	2,750,183

Loans held-for-sale:
Mortgage	$	11,181	$	5,381	$	55,150	$	5,800		$	(43,969	)

Total loans held-for-sale	$	11,181	$	5,381	$	55,150	$	5,800		$	(43,969	)

Total loans	$	32,349,554	$	32,083,150	$	29,643,340	$	266,404		$	2,706,214

Deposits - Ending Balances


							Variance
(In thousands)	31-Mar-23		31-Dec-22		31-Mar-22		Q1 2023 vs. Q4 2022			Q1 2023 vs.Q1 2022
Demand deposits [1]	$	26,191,672	$	26,382,605	$	25,684,715	$	(190,933	)	$	506,957
Savings, NOW and money market deposits (non-brokered)		26,622,020		27,265,156		29,318,333		(643,136	)		(2,696,313	)
Savings, NOW and money market deposits (brokered)		734,069		798,064		768,558		(63,995	)		(34,489	)
Time deposits (non-brokered)		6,891,051		6,442,886		6,964,848		448,165			(73,797	)
Time deposits (brokered CDs)		515,076		338,516		125,841		176,560			389,235

Total deposits	$	60,953,888	$	61,227,227	$	62,862,295	$	(273,339	)	$	(1,908,407	)

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

Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

Table I - Liquidity Sources, Deposits and Borrowings

(Unaudited)


Liquidity Sources	31-Mar-23						31-Dec-22
(In thousands)	BPPR		Popular U.S.		Total		BPPR		Popular U.S.		Total
Unpledged securities and unused funding sources:
Money market (excess funds at the Federal Reserve Bank)	$	5,181,531	$	909,613	$	6,091,144	$	5,240,100	$	367,966	$	5,608,066
Unpledged securities		7,690,887		273,980		7,694,867		7,494,189		326,599		7,820,788
FHLB borrowing capacity		1,623,246		1,127,316		2,750,562		1,389,579		722,005		2,111,584
Discount window of the Federal Reserve Bank borrowing capacity		1,132,411		331,753		1,464,164		1,090,308		329,385		1,419,693

Total available liquidity	$	15,628,075	$	2,642,662	$	18,270,737	$	15,214,176	$	1,745,955	$	16,960,131

Deposits


	31-Mar-23
(In thousands)	BPPR		% of Total			Popular U.S.		% of Total			Popular, Inc. (Consolidated)		% of Total
Deposits:
Deposits balances under $250,000 [1]	$	24,823,608		47	%	$	5,979,010		62	%	$	30,802,618		51	%
Transactional deposits balances over $250,000		9,503,850		18	%		2,151,732		22	%		11,655,582		19	%
Time deposits balances over $250,000		1,869,792		4	%		255,322		3	%		2,125,114		3	%
Foreign deposits		412,444		1	%				—	%		412,444		1
Collateralized public funds		15,712,622		30	%		245,508		3	%		15,958,130		26	%
Intercompany deposits		134,110		—	%		986,943		10	%		—		—	%

Total deposits	$	52,456,426		100	%	$	9,618,515		100	%	$	60,953,888		100	%

[1]	Includes the first $250,000 in balances of transactional and time deposit accounts with balances in excess of $250,000.


	31-Dec-22
(In thousands)	BPPR		% of Total			Popular U.S.		% of Total			Popular, Inc. (Consolidated)		% of Total
Deposits
Deposits balances under $250,000 [1]	$	24,505,697		46	%	$	5,231,417		60	%	$	29,737,114		49	%
Transactional deposits balances over $250,000		9,957,877		19	%		2,674,841		31	%		12,632,718		21	%
Time deposits balances over $250,000		1,920,455		4	%		167,067		2	%		2,087,522		3	%
Foreign deposits		425,855		1	%		—		—	%		425,855		1	%
Collateralized public funds		16,233,342		31	%		110,676		1	%		16,344,018		27	%
Intercompany deposits		135,172		—	%		482,167		6	%		—		—	%

Total deposits	$	53,178,398		100	%	$	8,666,168		100	%	$	61,227,227		100	%

[1]	Includes the first $250,000 in balances of transactional and time deposit accounts with balances in excess of $250,000.


Borrowings	31-Mar-23								31-Dec-22
(In thousands)	BPPR		Popular U.S.		All other entities		Total		BPPR		Popular U.S.		All other entities		Total
Assets sold under agreements to repurchase	$	25,158	$	98,341	$	—	$	123,499	$	25,496	$	123,113	$	—	$	148,609
FHLB borrowings		82,292		305,990		—		388,282		83,292		670,990		—		754,282
Federal discount window / bank term funding program (BTFP)		—		—		—		—		—		—		—		—
Notes payable
Unsecured senior debt securities maturing on September 2023		—		—		299,426		299,426		—		—		299,109		299,109
Unsecured senior debt securities maturing on March 2028		—		—		393,093		393,093		—		—		—		—
Junior subordinated deferrable interest debentures		—		—		198,326		198,326		—		—		198,319		198,319

Total borrowings	$	107,450	$	404,331	$	890,845	$	1,402,626	$	108,788	$	794,103	$	497,428	$	1,400,319

Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

Table J - Loan Delinquency -BPPR Operations

(Unaudited)


31-Mar-23
BPPR
	Past due												Past due 90 days or more
(In thousands)	30-59 days		60-89 days		90 days or more		Total past due		Current		Loans HIP		Non-accrual loans		Accruing loans
Commercial multi-family	$	650	$	—	$	185	$	835	$	291,971	$	292,806	$	185	$	—
Commercial real estate:
Non-owner occupied		2,739		1,584		22,856		27,179		2,858,304		2,885,483		22,856		—
Owner occupied		21,496		—		37,779		59,275		1,438,228		1,497,503		37,779		—
Commercial and industrial		17,934		793		31,847		50,574		3,883,859		3,934,433		30,132		1,715
Construction		8,081		—		—		8,081		147,268		155,349		—		—
Mortgage		183,187		81,729		515,752		780,668		5,336,016		6,116,684		224,075		291,677
Leasing		12,301		2,605		6,103		21,009		1,593,335		1,614,344		6,103		—
Consumer:
Credit cards		7,162		5,823		12,061		25,046		1,021,129		1,046,175		—		12,061
Home equity lines of credit		—		—		—		—		2,865		2,865		—		—
Personal		14,131		8,990		17,427		40,548		1,572,370		1,612,918		17,412		15
Auto		60,324		12,684		39,516		112,524		3,405,416		3,517,940		39,516		—
Other		1,264		49		1,091		2,404		127,608		130,012		921		170

Total	$	329,269	$	114,257	$	684,617	$	1,128,143	$	21,678,369	$	22,806,512	$	378,979	$	305,638


31-Dec-22
BPPR
	Past due												Past due 90 days or more
(In thousands)	30-59 days		60-89 days		90 days or more		Total past due		Current		Loans HIP		Non-accrual loans		Accruing loans
Commercial multi-family	$	425	$	—	$	242	$	667	$	280,706	$	281,373	$	242	$	—
Commercial real estate:
Non-owner occupied		941		428		23,662		25,031		2,732,296		2,757,327		23,662		—
Owner occupied		729		245		23,990		24,964		1,563,092		1,588,056		23,990		—
Commercial and industrial		3,036		941		35,777		39,754		3,756,754		3,796,508		34,277		1,500
Construction		—		—		—		—		147,041		147,041		—		—
Mortgage		222,926		91,881		579,993		894,800		5,215,479		6,110,279		242,391		337,602
Leasing		11,983		3,563		5,941		21,487		1,564,252		1,585,739		5,941		—
Consumer:
Credit cards		7,106		5,049		11,910		24,065		1,017,766		1,041,831		—		11,910
Home equity lines of credit		—		—		—		—		2,954		2,954		—		—
Personal		13,232		8,752		18,082		40,066		1,545,621		1,585,687		18,082		—
Auto		68,868		19,243		40,978		129,089		3,383,441		3,512,530		40,978		—
Other		487		87		12,682		13,256		124,324		137,580		12,446		236

Total	$	329,733	$	130,189	$	753,257	$	1,213,179	$	21,333,726	$	22,546,905	$	402,009	$	351,248


Variance
	Past due																		Past due 90 days or more
(In thousands)	30-59 days			60-89 days			90 days or more			Total past due			Current			Loans HIP			Non-accrual loans			Accruing loans
Commercial multi-family	$	225		$	—		$	(57	)	$	168		$	11,265		$	11,433		$	(57	)	$	—
Commercial real estate:
Non-owner occupied		1,798			1,156			(806	)		2,148			126,008			128,156			(806	)		—
Owner occupied		20,767			(245	)		13,789			34,311			(124,864	)		(90,553	)		13,789			—
Commercial and industrial		14,898			(148	)		(3,930	)		10,820			127,105			137,925			(4,145	)		215
Construction		8,081			—			—			8,081			227			8,308			—			—
Mortgage		(39,739	)		(10,152	)		(64,241	)		(114,132	)		120,537			6,405			(18,316	)		(45,925	)
Leasing		318			(958	)		162			(478	)		29,083			28,605			162			—
Consumer:
Credit cards		56			774			151			981			3,363			4,344			—			151
Home equity lines of credit		—			—			—			—			(89	)		(89	)		—			—
Personal		899			238			(655	)		482			26,749			27,231			(670	)		15
Auto		(8,544	)		(6,559	)		(1,462	)		(16,565	)		21,975			5,410			(1,462	)		—
Other		777			(38	)		(11,591	)		(10,852	)		3,284			(7,568	)		(11,525	)		(66	)

Total	$	(464	)	$	(15,932	)	$	(68,640	)	$	(85,036	)	$	344,643		$	259,607		$	(23,030	)	$	(45,610	)

Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

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

(Unaudited)


31-Mar-23
Popular U.S.
	Past due												Past due 90 days or more
(In thousands)	30-59 days		60-89 days		90 days or more		Total past due		Current		Loans HIP		Non-accrual loans		Accruing loans
Commercial multi-family	$	—	$	—	$	421	$	421	$	2,043,130	$	2,043,551	$	421	$	—
Commercial real estate:
Non-owner occupied		16,033		—		207		16,240		1,748,952		1,765,192		207		—
Owner occupied		18,042		—		5,095		23,137		1,497,947		1,521,084		5,095		—
Commercial and industrial		13,779		3		5,570		19,352		2,045,857		2,065,209		5,325		245
Construction		7,165		—		—		7,165		536,482		543,647		—		—
Mortgage		22,041		1,499		14,719		38,259		1,250,964		1,289,223		14,719		—
Consumer:
Credit cards		—		—		—		—		21		21		—		—
Home equity lines of credit		496		70		4,618		5,184		61,838		67,022		4,618		—
Personal		1,900		1,259		2,505		5,664		222,487		228,151		2,505		—
Other		2		—		514		516		8,245		8,761		514		—

Total	$	79,458	$	2,831	$	33,649	$	115,938	$	9,415,923	$	9,531,861	$	33,404	$	245


31-Dec-22
Popular U.S.
	Past due												Past due 90 days or more
(In thousands)	30-59 days		60-89 days		90 days or more		Total past due		Current		Loans HIP		Non-accrual loans		Accruing loans
Commercial multi-family	$	2,177	$	—	$	—	$	2,177	$	2,038,163	$	2,040,340	$	—	$	—
Commercial real estate:
Non-owner occupied		484		—		1,454		1,938		1,740,405		1,742,343		1,454		—
Owner occupied		—		—		5,095		5,095		1,485,398		1,490,493		5,095		—
Commercial and industrial		12,960		2,205		4,685		19,850		2,022,842		2,042,692		4,319		366
Construction		—		—		—		—		610,943		610,943		—		—
Mortgage		16,131		5,834		20,488		42,453		1,244,739		1,287,192		20,488		—
Consumer:
Credit cards		—		—		—		—		39		39		—		—
Home equity lines of credit		413		161		4,110		4,684		64,278		68,962		4,110		—
Personal		1,808		1,467		1,958		5,233		232,659		237,892		1,958		—
Other		—		—		8		8		9,960		9,968		8		—

Total	$	33,973	$	9,667	$	37,798	$	81,438	$	9,449,426	$	9,530,864	$	37,432	$	366


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	$	(2,177	)	$	—		$	421		$	(1,756	)	$	4,967		$	3,211		$	421		$	—
Commercial real estate:
Non-owner occupied		15,549			—			(1,247	)		14,302			8,547			22,849			(1,247	)		—
Owner occupied		18,042			—			—			18,042			12,549			30,591			—			—
Commercial and industrial		819			(2,202	)		885			(498	)		23,015			22,517			1,006			(121	)
Construction		7,165			—			—			7,165			(74,461	)		(67,296	)		—			—
Mortgage		5,910			(4,335	)		(5,769	)		(4,194	)		6,225			2,031			(5,769	)		—
Consumer:
Credit cards		—			—			—			—			(18	)		(18	)		—			—
Home equity lines of credit		83			(91	)		508			500			(2,440	)		(1,940	)		508			—
Personal		92			(208	)		547			431			(10,172	)		(9,741	)		547			—
Other		2			—			506			508			(1,715	)		(1,207	)		506			—

Total	$	45,485		$	(6,836	)	$	(4,149	)	$	34,500		$	(33,503	)	$	997		$	(4,028	)	$	(121	)


Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

Table L - Loan Delinquency - Consolidated

(Unaudited)

31-Mar-23
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	$	650	$	—	$	606	$	1,256	$	2,335,101	$	2,336,357	$	606	$	—
Commercial real estate:
Non-owner occupied		18,772		1,584		23,063		43,419		4,607,256		4,650,675		23,063		—
Owner occupied		39,538		—		42,874		82,412		2,936,175		3,018,587		42,874		—
Commercial and industrial		31,713		796		37,417		69,926		5,929,716		5,999,642		35,457		1,960
Construction		15,246		—		—		15,246		683,750		698,996		—		—
Mortgage		205,228		83,228		530,471		818,927		6,586,980		7,405,907		238,794		291,677
Leasing		12,301		2,605		6,103		21,009		1,593,335		1,614,344		6,103		—
Consumer:
Credit cards		7,162		5,823		12,061		25,046		1,021,150		1,046,196		—		12,061
Home equity lines of credit		496		70		4,618		5,184		64,703		69,887		4,618		—
Personal		16,031		10,249		19,932		46,212		1,794,857		1,841,069		19,917		15
Auto		60,324		12,684		39,516		112,524		3,405,416		3,517,940		39,516		—
Other		1,266		49		1,605		2,920		135,853		138,773		1,435		170

Total	$	408,727	$	117,088	$	718,266	$	1,244,081	$	31,094,292	$	32,338,373	$	412,383	$	305,883


31-Dec-22
Popular, Inc.
	Past due												Past due 90 days or more
	30-59		60-89		90 days		Total						Non-accrual		Accruing
(In thousands)	days		days		or more		past due		Current		Loans HIP		loans		loans
Commercial multi-family	$	2,602	$	—	$	242	$	2,844	$	2,318,869	$	2,321,713	$	242	$	—
Commercial real estate:
Non-owner occupied		1,425		428		25,116		26,969		4,472,701		4,499,670		25,116		—
Owner occupied		729		245		29,085		30,059		3,048,490		3,078,549		29,085		—
Commercial and industrial		15,996		3,146		40,462		59,604		5,779,596		5,839,200		38,596		1,866
Construction		—		—		—		—		757,984		757,984		—		—
Mortgage		239,057		97,715		600,481		937,253		6,460,218		7,397,471		262,879		337,602
Leasing		11,983		3,563		5,941		21,487		1,564,252		1,585,739		5,941		—
Consumer:
Credit cards		7,106		5,049		11,910		24,065		1,017,805		1,041,870		—		11,910
Home equity lines of credit		413		161		4,110		4,684		67,232		71,916		4,110		—
Personal		15,040		10,219		20,040		45,299		1,778,280		1,823,579		20,040		—
Auto		68,868		19,243		40,978		129,089		3,383,441		3,512,530		40,978		—
Other		487		87		12,690		13,264		134,284		147,548		12,454		236

Total	$	363,706	$	139,856	$	791,055	$	1,294,617	$	30,783,152	$	32,077,769	$	439,441	$	351,614


Variance
	Past due																		Past due 90 days or more
	30-59			60-89			90 days			Total									Non-accrual			Accruing
(In thousands)	days			days			or more			past due			Current			Loans HIP			loans			loans
Commercial multi-family	$	(1,952	)	$	—		$	364		$	(1,588	)	$	16,232		$	14,644		$	364		$	—
Commercial real estate:
Non-owner occupied		17,347			1,156			(2,053	)		16,450			134,555			151,005			(2,053	)		—
Owner occupied		38,809			(245	)		13,789			52,353			(112,315	)		(59,962	)		13,789			—
Commercial and industrial		15,717			(2,350	)		(3,045	)		10,322			150,120			160,442			(3,139	)		94
Construction		15,246			—			—			15,246			(74,234	)		(58,988	)		—			—
Mortgage		(33,829	)		(14,487	)		(70,010	)		(118,326	)		126,762			8,436			(24,085	)		(45,925	)
Leasing		318			(958	)		162			(478	)		29,083			28,605			162			—
Consumer:
Credit cards		56			774			151			981			3,345			4,326			—			151
Home equity lines of credit		83			(91	)		508			500			(2,529	)		(2,029	)		508			—
Personal		991			30			(108	)		913			16,577			17,490			(123	)		15
Auto		(8,544	)		(6,559	)		(1,462	)		(16,565	)		21,975			5,410			(1,462	)		—
Other		779			(38	)		(11,085	)		(10,344	)		1,569			(8,775	)		(11,019	)		(66	)

Total	$	45,021		$	(22,768	)	$	(72,789	)	$	(50,536	)	$	311,140		$	260,604		$	(27,058	)	$	(45,731	)


Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

Table M - Non-Performing Assets

(Unaudited)

																			Variance
(In thousands)	31-Mar-23			As a % of loans HIP by category			31-Dec-22			As a % of loans HIP by category			31-Mar-22			As a % of loans HIP by category			Q1 2023 vs. Q4 2022			Q1 2023 vs. Q1 2022
Non-accrual loans:
Commercial	$	102,000			0.6	%	$	93,039			0.6	%	$	123,185			0.9	%	$	8,961		$	(21,185	)
Leasing		6,103			0.4			5,941			0.4			3,766			0.3			162			2,337
Mortgage		238,794			3.2			262,879			3.6			328,386			4.5			(24,085	)		(89,592	)
Auto		39,516			1.1			40,978			1.2			27,514			0.8			(1,462	)		12,002
Consumer		25,970			0.8			36,604			1.2			37,070			1.4			(10,634	)		(11,100	)

Total non-performing loans held-in-portfolio		412,383			1.3	%		439,441			1.4	%		519,921			1.8	%		(27,058	)		(107,538	)
Other real estate owned (“OREO”)		91,721						89,126						90,567						2,595			1,154

Total non-performing assets [1]	$	504,104					$	528,567					$	610,488					$	(24,463	)	$	(106,384	)

Accruing loans past due 90 days or more [2]	$	305,883					$	351,614					$	440,554					$	(45,731	)	$	(134,671	)

Ratios:
Non-performing assets to total assets		0.74	%					0.78	%					0.88	%
Non-performing loans held-in-portfolio to loans held-in-portfolio		1.28						1.37						1.76
Allowance for credit losses to loans held-in-portfolio		2.13						2.25						2.29
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		167.11						163.91						130.36

[1]	There were no non-performing loans held-for-sale as of March 31, 2023, December 31, 2022 and March 31, 2022.

[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 $7 million at March 31, 2023, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (December 31, 2022—$14 million; March 31, 2022—$13 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 $167 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2023 (December 31, 2022—$190 million; March 31, 2022—$266 million). Furthermore, the Corporation has approximately $40 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 (December 31, 2022—$42 million; March 31, 2022—$45 million).


Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

Table N - Activity in Non-Performing Loans

(Unaudited)

Commercial loans held-in-portfolio:

	Quarter ended									Quarter ended
	31-Mar-23									31-Dec-22
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	82,171		$	10,868		$	93,039		$	87,448		$	16,428		$	103,876
Plus:
New non-performing loans		16,594			5,719			22,313			5,770			8,572			14,342
Advances on existing non-performing loans		—			26			26			—			7			7
Less:
Non-performing loans transferred to OREO		(287	)		—			(287	)		(445	)		—			(445	)
Non-performing loans charged-off		(673	)		(216	)		(889	)		(131	)		(8,725	)		(8,856	)
Loans returned to accrual status / loan collections		(6,853	)		(5,349	)		(12,202	)		(10,471	)		(5,414	)		(15,885	)

Ending balance NPLs	$	90,952		$	11,048		$	102,000		$	82,171		$	10,868		$	93,039


Mortgage loans held-in-portfolio:

	Quarter ended									Quarter ended
	31-Mar-23									31-Dec-22
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	242,391		$	20,488		$	262,879		$	252,773		$	21,533		$	274,306
Plus:
New non-performing loans		34,019			2,812			36,831			34,449			3,561			38,010
Advances on existing non-performing loans		—			39			39			—			1			1
Less:
Non-performing loans transferred to OREO		(10,586	)		(58	)		(10,644	)		(7,242	)		—			(7,242	)
Non-performing loans charged-off		(503	)		—			(503	)		(90	)		—			(90	)
Loans returned to accrual status / loan collections		(41,246	)		(8,562	)		(49,808	)		(37,499	)		(4,607	)		(42,106	)

Ending balance NPLs	$	224,075		$	14,719		$	238,794		$	242,391		$	20,488		$	262,879


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

	Quarter ended									Quarter ended
	31-Mar-23									31-Dec-22
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	324,562		$	31,356		$	355,918		$	340,221		$	37,961		$	378,182
Plus:
New non-performing loans		50,613			8,531			59,144			40,219			12,133			52,352
Advances on existing non-performing loans		—			65			65			—			8			8
Less:
Non-performing loans transferred to OREO		(10,873	)		(58	)		(10,931	)		(7,687	)		—			(7,687	)
Non-performing loans charged-off		(1,176	)		(216	)		(1,392	)		(221	)		(8,725	)		(8,946	)
Loans returned to accrual status / loan collections		(48,099	)		(13,911	)		(62,010	)		(47,970	)		(10,021	)		(57,991	)

Ending balance NPLs	$	315,027		$	25,767		$	340,794		$	324,562		$	31,356		$	355,918


Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

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

(Unaudited)

	Quarters ended
( In thousands)	31-Mar-23			31-Dec-22			31-Mar-22
Balance at beginning of period - loans held-in-portfolio	$	720,302		$	703,096		$	695,366
Impact of adopting ASU-2022-02		(45,583	)		—			—
Provision for credit losses (benefit)		47,146			48,332			(14,405	)
Initial allowance for credit losses - PCD Loans		68			74			612

		721,933			751,502			681,573

Net loans charge-off (recovered)- BPPR
Commercial:
Commercial multi-family		—						—
Commercial real estate non-owner occupied		(135	)		(305	)		(184	)
Commercial real estate owner occupied		(1,507	)		(462	)		(2,942	)
Commercial and industrial		442			(1,333	)		(1,104	)
Total Commercial		(1,200	)		(2,100	)		(4,230	)
Construction					—			(416	)
Leasing		327			2,221			(434	)
Mortgage		(3,954	)		(6,135	)		(2,992	)
Consumer:
Credit Cards		6,287			5,433			3,418
HELOCs		(36	)		(72	)		(4	)
Personal		12,045			9,268			5,081
Auto		7,204			10,978			4,861
Other Consumer		10,791			253			218
Total Consumer		36,291			25,860			13,574

Total net charged-off (recovered) BPPR	$	31,464		$	19,846		$	5,502

Net loans charge-off (recovered) - Popular U.S.
Commercial:
Commercial multi-family		(2	)		(1	)		(7	)
Commercial real estate non-owner occupied		(1,852	)		8,668			(3	)
Commercial real estate owner occupied		(24	)		(111	)		(112	)
Commercial and industrial		(469	)		(162	)		(505	)
Total Commercial		(2,347	)		8,394			(627	)
Construction		—			—			(1,128	)
Mortgage		(14	)		(32	)		(20	)
Consumer:
Credit Cards		1			(3	)		(9	)
HELOCs		(126	)		(156	)		(909	)
Personal		3,787			3,142			905
Other Consumer		48			9			67
Total Consumer		3,710			2,992			54

Total net charged-off (recovered) Popular U.S.	$	1,349		$	11,354		$	(1,721	)

Total loans charged-off (recovered) - Popular, Inc.	$	32,813		$	31,200		$	3,781

Balance at end of period - loans held-in-portfolio	$	689,120		$	720,302		$	677,792

Balance at beginning of period - unfunded commitments	$	8,805		$	7,307		$	7,897
Provision for credit losses (benefit)		610			1,498			(843	)

Balance at end of period - unfunded commitments [1]	$	9,415		$	8,805		$	7,054


POPULAR, INC.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	0.41	%	0.39	%	0.05	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	143.68	%	154.91	%	(380.98	)%
BPPR
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	0.56	%	0.35	%	0.11	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	143.67	%	223.64	%	(230.12	)%
Popular U.S.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	0.06	%	0.49	%	(0.08	)%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	144.03	%	34.78	%	101.34	%

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 First Quarter 2023 Earnings Release

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

(Unaudited)


31-Mar-23
(In thousands)	Total ACL		Total loans held-in-portfolio		ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$	25,366	$	2,336,357		1.09	%
Commercial real estate - non-owner occupied		71,850		4,650,675		1.54	%
Commercial real estate - owner occupied		54,497		3,018,587		1.81	%
Commercial and industrial		92,266		5,999,642		1.54	%

Total commercial	$	243,979	$	16,005,261		1.52	%

Construction		4,330		698,996		0.62	%
Mortgage		104,477		7,405,907		1.41	%
Leasing		20,990		1,614,344		1.30	%
Consumer:
Credit cards		67,953		1,046,196		6.50	%
Home equity lines of credit		1,953		69,887		2.79	%
Personal		109,729		1,841,069		5.96	%
Auto		130,829		3,517,940		3.72	%
Other consumer		4,880		138,773		3.52	%

Total consumer	$	315,344	$	6,613,865		4.77	%

Total	$	689,120	$	32,338,373		2.13	%



31-Dec-22
(In thousands)	Total ACL		Total loans held-in-portfolio		ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$	26,311	$	2,321,713		1.13	%
Commercial real estate - non-owner occupied		71,540		4,499,670		1.59	%
Commercial real estate - owner occupied		57,081		3,078,549		1.85	%
Commercial and industrial		80,444		5,839,200		1.38	%

Total commercial	$	235,376	$	15,739,132		1.50	%

Construction		4,246		757,984		0.56	%
Mortgage		135,254		7,397,471		1.83	%
Leasing		20,618		1,585,739		1.30	%
Consumer:
Credit cards		58,670		1,041,870		5.63	%
Home equity lines of credit		2,542		71,916		3.53	%
Personal		118,426		1,823,579		6.49	%
Auto		129,735		3,512,530		3.69	%
Other consumer		15,435		147,548		10.46	%

Total consumer	$	324,808	$	6,597,443		4.92	%

Total	$	720,302	$	32,077,769		2.25	%


Variance
(In thousands)	Total ACL			Total loans held-in-portfolio			ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$	(945	)	$	14,644			(0.04	)%
Commercial real estate - non-owner occupied		310			151,005			(0.05	)%
Commercial real estate - owner occupied		(2,584	)		(59,962	)		(0.04	)%
Commercial and industrial		11,822			160,442			0.16	%

Total commercial	$	8,603		$	266,129			0.02	%

Construction		84			(58,988	)		0.06	%
Mortgage [1]		(30,777	)		8,436			(0.42	)%
Leasing		372			28,605			—	%
Consumer:
Credit cards		9,283			4,326			0.87	%
Home equity lines of credit		(589	)		(2,029	)		(0.74	)%
Personal		(8,697	)		17,490			(0.53	)%
Auto		1,094			5,410			0.03	%
Other consumer		(10,555	)		(8,775	)		(6.94	)%

Total consumer	$	(9,464	)	$	16,422			(0.15	)%

Total	$	(31,182	)	$	260,604			(0.12	)%

[1]	Variance is mainly due to impact of ASU 2022-02 adoption. Refer to Credit Quality section for further details.

Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

Table Q - Allowance for Credit Losses “ACL”- Loan Portfolios - BPPR OPERATIONS

(Unaudited)


31-Mar-23
BPPR
(In thousands)	Total ACL		Total loans held-in-portfolio		ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$	4,756	$	292,806		1.62	%
Commercial real estate - non-owner occupied		53,894		2,885,483		1.87	%
Commercial real estate - owner occupied		46,009		1,497,503		3.07	%
Commercial and industrial		77,042		3,934,433		1.96	%

Total commercial	$	181,701	$	8,610,225		2.11	%

Construction		3,072		155,349		1.98	%
Mortgage		89,077		6,116,684		1.46	%
Leasing		20,990		1,614,344		1.30	%
Consumer:
Credit cards		67,953		1,046,175		6.50	%
Home equity lines of credit		100		2,865		3.49	%
Personal		88,408		1,612,918		5.48	%
Auto		130,829		3,517,940		3.72	%
Other consumer		4,877		130,012		3.75	%

Total consumer	$	292,167	$	6,309,910		4.63	%

Total	$	587,007	$	22,806,512		2.57	%


31-Dec-22
BPPR
(In thousands)	Total ACL		Total loans held-in-portfolio		ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$	5,210	$	281,373		1.85	%
Commercial real estate - non-owner occupied		52,475		2,757,327		1.90	%
Commercial real estate - owner occupied		48,393		1,588,056		3.05	%
Commercial and industrial		68,217		3,796,508		1.80	%

Total commercial	$	174,295	$	8,423,264		2.07	%

Construction		2,978		147,041		2.03	%
Mortgage		117,344		6,110,279		1.92	%
Leasing		20,618		1,585,739		1.30	%
Consumer:
Credit cards		58,670		1,041,831		5.63	%
Home equity lines of credit		103		2,954		3.49	%
Personal		96,369		1,585,687		6.08	%
Auto		129,735		3,512,530		3.69	%
Other consumer		15,433		137,580		11.22	%

Total consumer	$	300,310	$	6,280,582		4.78	%

Total	$	615,545	$	22,546,905		2.73	%


Variance
(In thousands)	Total ACL			Total loans held-in-portfolio			ACL to loans held-in-portfolio
Commercial:
Commercial multi-family		(454	)		11,433			(0.23	)%
Commercial real estate - non-owner occupied		1,419			128,156			(0.03	)%
Commercial real estate - owner occupied		(2,384	)		(90,553	)		0.02	%
Commercial and industrial		8,825			137,925			0.16	%

Total commercial	$	7,406		$	186,961			0.04	%

Construction		94			8,308			(0.05	)%
Mortgage		(28,267	)		6,405			(0.46	)%
Leasing		372			28,605			—	%
Consumer:
Credit cards		9,283			4,344			0.87	%
Home equity lines of credit		(3	)		(89	)		—	%
Personal		(7,961	)		27,231			(0.60	)%
Auto		1,094			5,410			0.03	%
Other consumer		(10,556	)		(7,568	)		(7.47	)%

Total consumer	$	(8,143	)	$	29,328			(0.15	)%

Total	$	(28,538	)	$	259,607			(0.16	)%

Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

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

(Unaudited)


31-Mar-23
Popular U.S.
(In thousands)	Total ACL		Total loans held-in-portfolio		ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$	20,610	$	2,043,551		1.01	%
Commercial real estate - non-owner occupied		17,956		1,765,192		1.02	%
Commercial real estate - owner occupied		8,488		1,521,084		0.56	%
Commercial and industrial		15,224		2,065,209		0.74	%

Total commercial	$	62,278	$	7,395,036		0.84	%

Construction		1,258		543,647		0.23	%
Mortgage		15,400		1,289,223		1.19	%
Leasing		—		—		—	%
Consumer:
Credit cards		—		21		—	%
Home equity lines of credit		1,853		67,022		2.76	%
Personal		21,321		228,151		9.35	%
Auto		—		—		—	%
Other consumer		3		8,761		0.03	%

Total consumer	$	23,177	$	303,955		7.63	%

Total	$	102,113	$	9,531,861		1.07	%


31-Dec-22
Popular U.S.
(In thousands)	Total ACL		Total loans held-in-portfolio		ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$	21,101	$	2,040,340		1.03	%
Commercial real estate - non-owner occupied		19,065		1,742,343		1.09	%
Commercial real estate - owner occupied		8,688		1,490,493		0.58	%
Commercial and industrial		12,227		2,042,692		0.60	%

Total commercial	$	61,081	$	7,315,868		0.83	%

Construction		1,268		610,943		0.21	%
Mortgage		17,910		1,287,192		1.39	%
Leasing		—		—		—	%
Consumer:
Credit cards		—		39		—	%
Home equity lines of credit		2,439		68,962		3.54	%
Personal		22,057		237,892		9.27	%
Auto		—		—		—	%
Other consumer		2		9,968		0.02	%

Total consumer	$	24,498	$	316,861		7.73	%

Total	$	104,757	$	9,530,864		1.10	%


Variance
(In thousands)	Total ACL			Total loans held-in-portfolio			ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$	(491	)	$	3,211			(0.02	)%
Commercial real estate - non-owner occupied		(1,109	)		22,849			(0.07	)%
Commercial real estate - owner occupied		(200	)		30,591			(0.02	)%
Commercial and industrial		2,997			22,517			0.14	%

Total commercial	$	1,197		$	79,168			0.01	%

Construction		(10	)		(67,296	)		0.02	%
Mortgage		(2,510	)		2,031			(0.20	)%
Leasing		—			—			—	%
Consumer:
Credit cards		—			(18	)		—	%
Home equity lines of credit		(586	)		(1,940	)		(0.78	)%
Personal		(736	)		(9,741	)		0.08	%
Auto		—			—			—	%
Other consumer		1			(1,207	)		0.01	%

Total consumer	$	(1,321	)	$	(12,906	)		(0.10	)%

Total	$	(2,644	)	$	997			(0.03	)%

Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

Table S - Reconciliation to GAAP Financial Measures

(Unaudited)


(In thousands, except share or per share information)	31-Mar-23			31-Dec-22			31-Mar-22
Total stockholders’ equity	$	4,470,725		$	4,093,425		$	4,671,246
Less: Preferred stock		(22,143	)		(22,143	)		(22,143	)
Less: Goodwill		(827,428	)		(827,428	)		(720,293	)
Less: Other intangibles		(12,149	)		(12,944	)		(15,328	)

Total tangible common equity	$	3,609,005		$	3,230,910		$	3,913,482

Total assets	$	67,675,759		$	67,637,917		$	69,525,082
Less: Goodwill		(827,428	)		(827,428	)		(720,293	)
Less: Other intangibles		(12,149	)		(12,944	)		(15,328	)

Total tangible assets	$	66,836,182		$	66,797,545		$	68,789,461

Tangible common equity to tangible assets		5.40	%		4.84	%		5.69	%
Common shares outstanding at end of period		71,965,984			71,853,720			76,487,523
Tangible book value per common share	$	50.15		$	44.97		$	51.16


	Quarterly average
Total stockholders’ equity [1]	$	6,452,889		$	6,161,634		$	5,983,309
Less: Preferred Stock		(22,143	)		(22,143	)		(22,143	)
Less: Goodwill		(827,427	)		(827,427	)		(720,292	)
Less: Other intangibles		(12,678	)		(13,440	)		(15,881	)

Total tangible equity	$	5,590,641		$	5,298,624		$	5,224,993
Return on average tangible common equity		11.51	%		19.23	%		16.40	%

[1]	Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity.

CONTACTS:

Popular, Inc.

Investor Relations:

Paul J. Cardillo, 212-417-6721

Senior Vice President and Investor Relations Officer

pcardillo@popular.com

Media Relations:

MC González Noguera, 917-804-5253

Executive Vice President and Chief Communications & Public Affairs Officer

mc.gonzalez@popular.com