Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Popular, Inc. Announces Second Quarter 2021 Financial Results By: Popular, Inc. via Business Wire July 22, 2021 at 08:00 AM EDT Net income of $218.1 million in Q2 2021, compared to net income of $262.6 million in Q1 2021. Net interest margin of 2.91% in Q2 2021, compared to 3.07% in Q1 2021; net interest margin on a taxable equivalent basis of 3.22% in Q2 2021, compared to 3.39% in Q1 2021. Credit Quality: Non-performing loans held-in-portfolio (“NPLs”) decreased by $13.0 million from Q1 2021; NPLs to loans ratio at 2.4% flat from Q1 2021; Net charge-offs (“NCOs”) was a net recovery of $1.3 million, a favorable variance by $22.3 million from Q1 2021; NCOs at (0.02)% of average loans held-in-portfolio vs. 0.29% in Q1 2021; Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.70% vs. 2.75% in Q1 2021; and ACL to NPLs at 114.7% flat from Q1 2021. Common Equity Tier 1 ratio of 16.55%, Common Equity per Share of $71.82 and Tangible Book Value per Share of $63.24 at June 30, 2021. Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $218.1 million for the quarter ended June 30, 2021, compared to net income of $262.6 million for the quarter ended March 31, 2021. Ignacio Alvarez, President and Chief Executive Officer, said: “We had another strong quarter with net income of $218 million. These results reflect improving macro-economic conditions and credit quality as well as our diversified sources of revenue. Consumer spending in P.R. has increased and it is reflected in higher revenues from credit and debit card spending. Deposit balances grew by $5.9 billion and excluding forgiveness of PPP loans, we saw a small increase in our period end loans, led by strong auto loan originations in P.R. During the quarter we also continued to return capital to our shareholders, increased our common stock dividend, while maintaining a CET1 ratio of 16.6% at quarter end. While we are extremely pleased with the results for the first half of the year, we remain attentive on how the evolving health situation may impact the economic recovery. We also continued to support the communities we serve. During the quarter we released our annual Corporate Sustainability Report, which summarizes our program, takes into account widely accepted sustainability reporting standards and highlights our commitment, progress and achievements in our efforts to operate as a responsible, ethical and sustainable company.” Significant Events Financial Highlights For the second quarter of 2021, the Corporation recorded net income of $218.1 million, compared to a net income of $262.6 million for the previous quarter. The second quarter’s results include a release of the allowance for credit losses of $17.0 million driven by improving credit quality and the improved macroeconomic outlook. Net Interest income was $487.8 million, an increase of $8.7 million compared to the previous quarter, mainly due to additional funds invested from the increase in deposits. The net interest margin decreased 16 basis points to 2.91%. Total assets grew by $5.8 billion from the previous quarter, reflecting an increase in deposits across various sectors, principally from the Puerto Rico public sector. Capital Actions On May 3, 2021, the Corporation announced that it had entered into an accelerated share repurchase agreement (the “ASR Agreement”) to repurchase an aggregate of $350 million of Popular’s common stock. Under the terms of the ASR Agreement, on May 4, 2021 the Corporation made an initial payment of $350 million and received an initial delivery of 3,785,831 shares of Popular’s Common Stock (the “Initial Shares”). The transaction was accounted for as a treasury stock transaction. Furthermore, as a result of the receipt of the Initial Shares, the Corporation recognized in shareholders’ equity approximately $280 million in treasury stock and $70 million as a reduction in capital surplus. Upon the final settlement of the ASR Agreement, the Corporation expects to further adjust its treasury stock and capital surplus accounts to reflect the final delivery or receipt of cash or shares, which will depend on the volume-weighted average price of the Corporation’s common stock during the term of the ASR Agreement, less a discount. The final settlement of the ASR Agreement is expected to occur no later than the third quarter of 2021. On May 6, 2021, the Corporation’s Board of Directors approved a quarterly cash dividend of $0.45 per share, an increase from the previous $0.40 per share quarterly dividend, on its outstanding common stock. The dividend was paid on July 1, 2021 to shareholders of record at the close of business on May 26, 2021. Earnings Highlights (Unaudited) Quarters ended Six months ended (Dollars in thousands, except per share information) 30-Jun-21 31-Mar-21 30-Jun-20 30-Jun-21 30-Jun-20 Net interest income $487,802 $479,112 $450,881 $966,914 $923,976 Provision for credit losses (benefit) (17,015) (82,226 ) 62,449 (99,241) 252,180 Net interest income after provision for credit losses (benefit) 504,817 561,338 388,432 1,066,155 671,796 Other non-interest income 154,540 153,653 112,055 308,193 238,698 Operating expenses 368,185 375,528 348,231 743,713 720,839 Income before income tax 291,172 339,463 152,256 630,635 189,655 Income tax expense 73,093 76,831 24,628 149,924 27,725 Net income $218,079 $262,632 $127,628 $480,711 $161,930 Net income applicable to common stock $217,726 $262,279 $127,275 $480,005 $160,877 Net income per common share-basic $2.67 $3.13 $1.49 $5.80 $1.83 Net income per common share-diluted $2.66 $3.12 $1.49 $5.79 $1.83 Net interest income on a taxable equivalent basis – Non-GAAP financial measure Net interest income, on a taxable equivalent basis, is presented with its different components in Table D and E for the quarter and six months ended June 30, 2021 and comparable periods. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources. Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies. Net interest income for the quarter ended June 30, 2021 was $487.8 million compared to $479.1 million in the previous quarter, an increase of $8.7 million. The total net impact on net interest income of one more day in the quarter when compared to the first quarter of 2021 is estimated at $3.7 million. Net interest income, on a taxable equivalent basis, for the second quarter of 2021 was $541.2 million, an increase of $11.4 million when compared to $529.8 million in the first quarter of 2021. On a taxable equivalent basis, the total net impact on net interest income of one more day in the quarter when compared to the first quarter of 2021 is estimated at $4.0 million. Net interest margin decreased 16 basis points to 2.91% compared to 3.07% in the previous quarter. The decrease in the net interest margin is due to a higher proportion of money market and investment securities, which carry a low yield, resulting from a higher volume of deposits in the quarter, lower interest and fees related to loans issued under the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”), partially offset by higher discount amortization on purchased credit deteriorated (“PCD”) loans repaid during the quarter and a lower cost of deposits. On a taxable equivalent basis, net interest margin for the second quarter of 2021 was 3.22 % compared to 3.39% in the first quarter of 2021, a decrease of 17 basis points. The main variances in net interest income on a taxable equivalent basis were: Higher interest income from money market investments, trading and investment securities by $9.7 million due to higher volume by $4.4 billion driven by deposit increases across all business lines, mainly government deposits. The taxable equivalent yield on these assets was 1.44%, compared to 1.52% the previous quarter; and Lower interest expense on deposits by $2.1 million resulting from lower deposit cost by 4 basis points driven by a higher volume of low yielding deposits, reduction of costs in several non-maturity deposit products and renewals of time deposits in a lower interest rate environment. These positive variances in deposit costs were partially offset by higher volume of interest-bearing deposits by $3.3 billion. Partially offset by: Lower interest income from loans by $0.6 million mainly due to the following: Lower interest income from commercial loans by $2.1 million resulting from lower SBA PPP interest income and fees of $9.2 million, partially offset by higher interest income by $7.2 million from PCD loans due to the accelerated discount amortization from several repaid loans and interest for one more day in the quarter of $1.9 million; and Auto and lease financing increasing $124 million in average balances resulting an increase in interest income of $2.5 million. The Corporation recognized interest income of $13.9 million related to loans issued under the SBA PPP program, compared to $23.1 million in the previous quarter. These loans carried a yield of approximately 4.45% in this quarter, including the amortization of fees received under the program, compared to 7.21% last quarter. Net interest income for the Banco Popular de Puerto Rico (“BPPR”) segment amounted to $419.2 million for the quarter ended June 30, 2021, compared to $410.3 million in the previous quarter. Net interest margin for the second quarter of 2021 was 2.91%, a decrease of 19 basis points when compared to 3.10% for the previous quarter. As discussed above, the net interest margin was negatively impacted by a higher volume of money market and investment securities, lower fees from the cancellation and amortization of PPP loans of approximately $8.8 million, partially offset by a higher amortization of discount on PCD loans. The cost of interest-bearing deposits was 0.18%, down 3 basis points from the 0.21% reported in the previous quarter. Total cost of deposits for the quarter was 0.14%, compared to 0.16% reported in the first quarter of 2021. Net interest income for Popular Bank (“PB”) was $78.7 million for the quarter ended June 30, 2021, compared to $79.2 million during the previous quarter. Net interest margin for the quarter was 3.33% lower than the 3.35% the previous quarter. The cost of interest-bearing deposits was 0.60%, compared to 0.66% in the previous quarter, decreasing for the seventh consecutive quarter. Total cost of deposits for the quarter, including demand deposits, was 0.47%, compared to 0.54% reported in the first quarter of 2021. Non-interest income Non-interest income increased by $0.9 million to $154.6 million for the quarter ended June 30, 2021, compared to $153.7 million for the quarter ended March 31, 2021. The variance in non-interest income was primarily driven by: higher other service fees by $5.8 million, principally at the BPPR segment, due to higher credit card fees by $4.0 million, mainly in interchange income resulting from higher transactional volumes; an increase in net gain on equity securities of $1.1 million mainly related to employee deferred compensation plans that have an offsetting expense on personnel related expenses; a favorable variance in adjustments to indemnity reserves on previously sold loans of $2.4 million mainly due to a reserve release related to loans previously sold with credit recourse; and higher other operating income by $1.1 million mainly due to higher net earnings from the combined portfolio of investments under the equity method by $2.4 million, partially offset by a lower gain on sale of daily auto rental units by $1.4 million; partially offset by: lower income from mortgage banking activities by $9.9 million mainly due to an unfavorable variance in fair value adjustments on mortgage servicing rights (“MSRs”) of $6.8 million due to the negative adjustment in the second quarter mainly related to a reduction in estimated cash flows related to portfolio amortization and higher losses on closed derivative positions by $3.4 million. Refer to Table B for further details. Operating expenses Operating expenses for the second quarter of 2021 totaled $368.2 million, a decrease of $7.3 million from the first quarter of 2021. The variance in operating expenses was driven primarily by: lower personnel cost by $5.3 million due to $6.8 million of lower commission, incentives, and other bonuses, including lower performance shares and restricted stock expenses by $5.5 million, partially offset by higher pension, postretirement and medical insurance by $2.4 million due to higher premiums accruals; lower net occupancy expense by $1.5 million due lower rent and electricity expenses; lower credit and debit card processing, volume, interchange and other expenses by $1.5 million mainly due to transaction volume rebates and incentives; and lower other operating expenses by $4.1 million due to a release of $4.5 million of mortgage servicing reserves related to claims and foreclosed loans, higher gain on sale of assets by $1.8 million and lower subsequent write-down of foreclosed auto units by $1.2 million; partially offset by higher sundry losses by $3.0 million due to higher legal reserves. Partially offset by: higher business promotion expenses by $4.0 million due higher customer reward program expense in our credit card business by $2.5 million and higher advertising expense by $0.8 million. Full-time equivalent employees were 8,439 as of June 30, 2021, compared to 8,469 as of March 31, 2021. For a breakdown of operating expenses by category refer to Table B. Income taxes For the quarter ended June 30, 2021, the Corporation recorded an income tax expense of $73.1 million, compared to $76.8 million for the previous quarter. The decrease in income tax expense was mainly attributable to lower income before tax during the second quarter of 2021, partially offset by higher effective income tax rate in the P.R. operations and an increase in the blended state income tax rate for the U.S. operations during the second quarter of 2021. The effective tax rate (“ETR”) for the second quarter of 2021 was 25%, compared to 23% for the previous quarter. The ETR of the Corporation is impacted by the composition and source of its taxable income. The increase in the ETR rate for the second quarter of 2021 was primarily attributed to higher income at the Puerto Rico marginal tax rate. Credit Quality During the second quarter of 2021, the Corporation continued to exhibit favorable credit quality and low credit costs, outperforming pre-pandemic trends. These improvements have been aided by the significant government stimulus and the rebound in the economy. We will continue to closely monitor COVID-19 related risks and the effects of the receding stimulus on macroeconomic conditions and on borrower performance. However, management believes that the improvement over the last few years in the risk profile of the Corporation’s loan portfolios positions Popular to operate successfully under the current environment. The following presents credit quality results for the second quarter of 2021: At June 30, 2021, total non-performing loans held-in-portfolio decreased by $13.0 million from March 31, 2021. BPPR’s NPLs decreased by $9.2 million, driven by lower mortgage NPLs by $20.1 million, due to lower inflows for the quarter and lower consumer NPLs by $5.1 million, mostly driven by auto loans. This decrease was in part offset by higher commercial NPLs by $16.8 million mostly due to a single $32.4 million inflow, partially offset by the resolution of an $8.8 million relationship. PB’s NPLs decreased by $3.8 million, mostly related to a construction loan transferred to loans-held-for-sale. At June 30, 2021, the ratio of NPLs to total loans held-in-portfolio remained flat at 2.4% when compared to the first quarter of 2021. Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $11.2 million quarter-over-quarter. In BPPR, total inflows increased by $17.0 million, mostly driven by higher commercial inflows of $31.9 million related to the abovementioned $32.4 million relationship. This increase was partly offset by lower mortgage inflows of $15.0 million, mostly due to improvements in early delinquencies. The NPL inflows at PB decreased by $5.8 million during the quarter. NCOs decreased by $22.3 million from the first quarter of 2021 to net recoveries of $1.3 million. BPPR ‘s NCOs decreased by $21.0 million, primarily driven by lower commercial, mortgage and construction NCOs by $8.4 million, $7.4 million and $6.4 million, respectively. The decrease reflected in the commercial NCOs was mostly due to recoveries of $7.9 million related to the resolution of the abovementioned non-performing relationship. During the second quarter of 2021, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was (0.02)%, compared to 0.29% in the first quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios. At June 30, 2021, the allowance for credit losses (“ACL”) decreased by $15.0 million from the first quarter of 2021 to $785.8 million. The ACL incorporated updated economic scenarios for the United States and Puerto Rico, which continued to show a positive outlook of the economy. In BPPR, the ACL decreased by $19.8 million, led by improvements in commercial and mortgage loans. The decrease in the allowance for commercial loans was mainly prompted by the release of a qualitative reserve for the hotel and hospitality portfolio due to the favorable economic environment and improvements in borrower performance. The reduction in the allowance for mortgage loans was led by a combination of improvements in economic scenarios and other assumptions used to estimate the reserve, as well as lower volumes. The allowance for the PB segment increased by $4.8 million. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.70% in the second quarter of 2021, compared to 2.75% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 114.7%, flat from the previous quarter. Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The ACL is estimated by weighting the outputs of optimistic, baseline and pessimistic scenarios. Among the three scenarios used to estimate the ACL, the baseline is assigned the highest probability, followed by the pessimistic scenario given the uncertainties in the economic outlook and downside risk. The current baseline forecast continues to show a favorable economic scenario. The 2021 forecasted GDP growth is now at 6.8% for U.S. and 3.8% for P.R., compared to 4.9% and 3.4%, respectively, in the previous 2021 forecast. The forecasted U.S. unemployment rate average for 2021 is now 5.43%. This is an improvement over the previous estimate of 6.09%. In the case of P.R., the forecasted unemployment rate average for 2021 of 8.43% was slightly higher than the previous forecast of 7.98%. However, unemployment rate levels in P.R. are expected to continue declining through 2022. The P.R. forecasted average unemployment rate for 2022 of 7.25%, is lower than the previous forecast of 7.52%. The provision for credit losses for the loans portfolios for the second quarter of 2021 reflected a benefit of $17.5 million, compared to a benefit of $75.8 million in the previous quarter. The provision for the BPPR segment was a benefit of $22.5 million, an unfavorable variance of $17.5 million compared to the previous quarter, while the provision expense for the PB segment was $5.0 million, an unfavorable variance of $40.8 million from the previous quarter. In the prior quarter, improvements in the economic forecasts prompted substantial reductions in reserves. The provision for unfunded commitments for the second quarter of 2021 reflected an expense of $0.4 million, compared to a benefit of $6.2 million during the previous quarter. The provision for credit losses in our investment portfolio was an expense of $0.1 million, compared to a benefit of $0.2 million in the first quarter of 2021. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations. Non-Performing Assets (Unaudited) (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Non-performing loans held-in-portfolio $685,183 $698,142 $760,204 Non-performing loans held-for-sale 8,700 3,549 6,778 Other real estate owned (“OREO”) 73,272 72,060 113,940 Total non-performing assets $767,155 $773,751 $880,922 Net (recoveries) charge-offs for the quarter $(1,291) $21,030 $64,953 Ratios: Loans held-in-portfolio $29,062,617 $29,131,628 $29,070,553 Non-performing loans held-in-portfolio to loans held-in-portfolio 2.36% 2.40% 2.62% Allowance for credit losses to loans held-in-portfolio 2.70 2.75 3.16 Allowance for credit losses to non-performing loans, excluding loans held-for-sale 114.68 114.70 120.81 Refer to Table K for additional information. Provision for Credit Losses (Benefit) - Loan Portfolios (Unaudited) Quarters ended Six months ended (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 30-Jun-21 30-Jun-20 Provision for credit losses (benefit) - loan portfolios: BPPR $(22,488) $(39,976) $60,423 $(62,464) $173,427 Popular U.S. 4,988 (35,803) 2,681 (30,815) 78,672 Total provision for credit losses (benefit) - loan portfolios $(17,500) $(75,779) $63,104 $(93,279) $252,099 Credit Quality by Segment (Unaudited) (In thousands) Quarters ended BPPR 30-Jun-21 31-Mar-21 30-Jun-20 Provision for credit losses (benefit) - loan portfolios $(22,488) $(39,976) $60,423 Net charge-offs (1,483) 19,474 62,143 Total non-performing loans held-in-portfolio 656,789 665,978 726,603 Allowance / loans held-in-portfolio 3.13% 3.20% 3.53% Quarters ended Popular U.S. 30-Jun-21 31-Mar-21 30-Jun-20 Provision for credit losses (benefit) - loan portfolios $4,988 $(35,803) $2,681 Net charge-offs 192 1,556 2,810 Total non-performing loans held-in-portfolio 28,394 32,164 33,601 Allowance / loans held-in-portfolio 1.57% 1.53% 2.13% Financial Condition Highlights (Unaudited) (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Cash and money market investments $18,333,650 $12,064,592 $10,060,358 Investment securities 22,647,401 23,076,488 21,058,918 Loans 29,062,617 29,131,628 29,070,553 Total assets 72,657,293 66,870,268 62,845,352 Deposits 64,641,776 58,742,801 53,844,300 Borrowings 1,267,545 1,311,064 1,339,339 Total liabilities 66,842,679 60,972,709 57,065,187 Stockholders’ equity 5,814,614 5,897,559 5,780,165 Total assets increased by $5.8 billion from the first quarter of 2021, driven by: an increase of $6.3 billion in cash and money market investments mainly due to an increase in deposits; partially offset by: a decrease of $0.4 billion in debt securities available-for-sale, mainly due to paydowns of agency mortgage-backed securities, partially offset by an increase of $0.1 billion in net unrealized gains in the portfolio and purchases of U.S. treasury securities. Total liabilities increased by $5.9 billion from the first quarter of 2021, mainly due to an increase of $5.9 billion in deposits due to higher Puerto Rico public sector deposits by $4.3 billion and higher retail and commercial demand deposits by $1.5 billion at BPPR. Stockholders’ equity decreased by approximately $82.9 million from the first quarter of 2021, principally due to the impact of the $350.0 million accelerated share repurchase transaction, offset by higher accumulated unrealized gains on debt securities available-for-sale by $73.0 million and net income for the quarter of $218.1 million, less declared dividends of $36.3 million on common stock and $0.4 million in dividends on preferred stock. Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.55%, $71.82 and $63.24, respectively, at June 30, 2021, compared to 17.08%, $69.63 and $61.42 at March 31, 2021. Refer to Table A for capital ratios. Cautionary Note Regarding Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about Popular’s business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings (including as a result of any participation in and execution of government programs related to the COVID-19 pandemic), new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic (including the appearance of new strains of the virus), actions taken by governmental authorities in response thereto, and the direct and indirect impact of the pandemic on Popular, our customers, service providers and third parties. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions, and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, are generally intended to identify forward-looking statements. More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Annual Report on Form 10-K for the year ended December 31, 2020, in our Form 10-Q for the quarter ended March 31, 2021 and in our Form 10-Q for the quarter ended June 30, 2021 to be filed with the Securities and Exchange Commission. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates. About Popular, Inc. Popular, Inc. (NASDAQ: BPOP) is the leading financial institution in Puerto Rico, by both assets and deposits, and ranks among the top 50 U.S. bank holding companies by assets. Founded in 1893, Banco Popular de Puerto Rico, Popular’s principal subsidiary, provides retail, mortgage and commercial banking services in Puerto Rico and the U.S. Virgin Islands. Popular also offers in Puerto Rico auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the mainland United States, Popular provides retail, mortgage and commercial banking services through its New York-chartered banking subsidiary, Popular Bank, which has branches located in New York, New Jersey and Florida. Conference Call Popular will hold a conference call to discuss its financial results today Thursday, July 22, 2021 at 11:00 a.m. Eastern Time. The call will be open to the public and broadcasted live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com. Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through the dial-in telephone number 1-866-235-1201 or 1-412-902-4127. There is no charge to access the call. A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Sunday, August 22, 2021. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10158030. An electronic version of this press release can be found at the Corporation’s website: www.popular.com. Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table A - Selected Ratios and Other Information Table B - Consolidated Statement of Operations Table C - Consolidated Statement of Financial Condition Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE Table F - Mortgage Banking Activities and Other Service Fees Table G - Loans and Deposits Table H - Loan Delinquency - PUERTO RICO OPERATIONS Table I - Loan Delinquency - POPULAR U.S. OPERATIONS Table J - Loan Delinquency - CONSOLIDATED Table K - Non-Performing Assets Table L - Activity in Non-Performing Loans Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios Table N - Allowance for Credit Losses - Loan Portfolios - CONSOLIDATED Table O - Allowance for Credit Losses - Loan Portfolios - PUERTO RICO OPERATIONS Table P - Allowance for Credit Losses - Loan Portfolios - POPULAR U.S. OPERATIONS Table Q - Reconciliation to GAAP Financial Measures POPULAR, INC. Financial Supplement to Second Quarter 2021 Earnings Release Table A - Selected Ratios and Other Information (Unaudited) Quarters ended Six months ended 30-Jun-21 31-Mar-21 30-Jun-20 30-Jun-21 30-Jun-20 Basic EPS $2.67 $3.13 $1.49 $5.80 $1.83 Diluted EPS $2.66 $3.12 $1.49 $5.79 $1.83 Average common shares outstanding 81,609,435 83,899,769 85,135,522 82,748,275 87,962,040 Average common shares outstanding - assuming dilution 81,772,789 84,051,935 85,161,661 82,888,378 88,039,712 Common shares outstanding at end of period 80,656,480 84,379,180 84,184,927 80,656,480 84,184,927 Market value per common share $75.05 $70.32 $37.17 $75.05 $37.17 Market capitalization - (In millions) $6,053 $5,934 $3,129 $6,053 $3,129 Return on average assets 1.24% 1.61% 0.87% 1.42% 0.59% Return on average common equity 15.43% 18.76% 9.74% 17.08% 6.06% Net interest margin (non-taxable equivalent basis) 2.91% 3.07% 3.25% 2.99% 3.58% Net interest margin (taxable equivalent basis) -non-GAAP 3.22% 3.39% 3.56% 3.31% 3.93% Common equity per share $71.82 $69.63 $68.40 $71.82 $68.40 Tangible common book value per common share (non-GAAP) [1] $63.24 $61.42 $60.13 $63.24 $60.13 Tangible common equity to tangible assets (non-GAAP) [1] 7.09% 7.83% 8.15% 7.09% 8.15% Return on average tangible common equity [1] 17.58% 21.37% 11.23% 19.46% 6.97% Tier 1 capital 16.62% 17.15% 15.78% 16.62% 15.78% Total capital 19.09% 19.62% 18.29% 19.09% 18.29% Tier 1 leverage 7.34% 8.06% 8.13% 7.34% 8.13% Common Equity Tier 1 capital 16.55% 17.08% 15.71% 16.55% 15.71% [1] Refer to Table Q for reconciliation to GAAP financial measures. POPULAR, INC. Financial Supplement to Second Quarter 2021 Earnings Release Table B - Consolidated Statement of Operations (Unaudited) Quarters ended Variance Quarter ended Variance Six months ended Q2 2021 Q2 2021 (In thousands, except per share information) 30-Jun-21 31-Mar-21 vs. Q1 2021 30-Jun-20 vs. Q2 2020 30-Jun-21 30-Jun-20 Interest income: Loans $433,781 $434,649 $(868) $429,670 $4,111 $868,430 $880,116 Money market investments 4,274 3,112 1,162 2,015 2,259 7,386 14,015 Investment securities 91,706 85,690 6,016 76,884 14,822 177,396 164,796 Total interest income 529,761 523,451 6,310 508,569 21,192 1,053,212 1,058,927 Interest expense: Deposits 28,060 30,201 (2,141) 42,780 (14,720) 58,261 104,881 Short-term borrowings 62 143 (81) 645 (583) 205 1,693 Long-term debt 13,837 13,995 (158) 14,263 (426) 27,832 28,377 Total interest expense 41,959 44,339 (2,380) 57,688 (15,729) 86,298 134,951 Net interest income 487,802 479,112 8,690 450,881 36,921 966,914 923,976 Provision for credit losses (benefit) (17,015) (82,226) 65,211 62,449 (79,464) (99,241) 252,180 Net interest income after provision for credit losses (benefit) 504,817 561,338 (56,521) 388,432 116,385 1,066,155 671,796 Service charges on deposit accounts 40,153 39,620 533 30,163 9,990 79,773 71,822 Other service fees 76,382 70,628 5,754 52,084 24,298 147,010 116,857 Mortgage banking activities 7,448 17,343 (9,895) 3,777 3,671 24,791 10,197 Net gain (loss), including impairment, on equity securities 1,565 421 1,144 2,447 (882) 1,986 (281) Net (loss) profit on trading account debt securities (47) (45) (2) 82 (129) (92) 573 Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale (73) - (73) 2,222 (2,295) (73) 3,179 Adjustments (expense) to indemnity reserves on loans sold 1,668 (698) 2,366 (1,160) 2,828 970 (5,953) Other operating income 27,444 26,384 1,060 22,440 5,004 53,828 42,304 Total non-interest income 154,540 153,653 887 112,055 42,485 308,193 238,698 Operating expenses: Personnel costs Salaries 90,294 89,335 959 93,969 (3,675) 179,629 186,225 Commissions, incentives and other bonuses 26,374 33,218 (6,844) 16,076 10,298 59,592 41,334 Pension, postretirement and medical insurance 13,289 10,924 2,365 11,392 1,897 24,213 21,030 Other personnel costs, including payroll taxes 24,247 26,002 (1,755) 17,729 6,518 50,249 37,408 Total personnel costs 154,204 159,479 (5,275) 139,166 15,038 313,683 285,997 Net occupancy expenses 24,562 26,013 (1,451) 25,487 (925) 50,575 50,645 Equipment expenses 22,805 21,575 1,230 20,844 1,961 44,380 42,449 Other taxes 13,205 13,959 (754) 13,323 (118) 27,164 27,004 Professional fees Collections, appraisals and other credit related fees 3,486 3,320 166 2,897 589 6,806 6,778 Programming, processing and other technology services 67,152 66,366 786 59,387 7,765 133,518 122,206 Legal fees, excluding collections 2,367 2,365 2 2,184 183 4,732 5,170 Other professional fees 28,148 27,897 251 28,079 69 56,045 59,464 Total professional fees 101,153 99,948 1,205 92,547 8,606 201,101 193,618 Communications 6,005 6,833 (828) 5,574 431 12,838 11,528 Business promotion 16,511 12,521 3,990 12,281 4,230 29,032 26,478 FDIC deposit insurance 5,742 5,968 (226) 5,340 402 11,710 10,420 Other real estate owned (OREO) (income) expenses (4,299) (4,533) 234 (344) (3,955) (8,832) 2,135 Credit and debit card processing, volume, interchange and other expenses 10,917 12,454 (1,537) 9,873 1,044 23,371 20,155 Other operating expenses Operational losses 6,528 7,896 (1,368) 4,128 2,400 14,424 12,502 All other 9,597 12,364 (2,767) 18,217 (8,620) 21,961 33,640 Total other operating expenses 16,125 20,260 (4,135) 22,345 (6,220) 36,385 46,142 Amortization of intangibles 1,255 1,051 204 1,795 (540) 2,306 4,268 Total operating expenses 368,185 375,528 (7,343) 348,231 19,954 743,713 720,839 Income before income tax 291,172 339,463 (48,291) 152,256 138,916 630,635 189,655 Income tax expense 73,093 76,831 (3,738) 24,628 48,465 149,924 27,725 Net income $218,079 $262,632 $(44,553) $127,628 $90,451 $480,711 $161,930 Net income applicable to common stock $217,726 $262,279 $(44,553) $127,275 $90,451 $480,005 $160,877 Net income per common share - basic $2.67 $3.13 $(0.46) $1.49 $1.18 $5.80 $1.83 Net income per common share - diluted $2.66 $3.12 $(0.46) $1.49 $1.17 $5.79 $1.83 Dividends Declared per Common Share $0.45 $0.40 $0.05 $0.40 $0.05 $0.85 $0.80 Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table C - Consolidated Statement of Financial Condition (Unaudited) Variance Q2 2021 vs. (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Q1 2021 Assets: Cash and due from banks $530,849 $495,915 $435,080 $34,934 Money market investments 17,802,801 11,568,677 9,625,278 6,234,124 Trading account debt securities, at fair value 35,931 36,504 33,560 (573) Debt securities available-for-sale, at fair value 22,335,167 22,771,609 20,763,453 (436,442) Debt securities held-to-maturity, at amortized cost 88,801 89,725 95,429 (924) Less: Allowance for credit losses 10,214 10,096 12,735 118 Total debt securities held-to-maturity, net 78,587 79,629 82,694 (1,042) Equity securities 187,502 178,650 166,476 8,852 Loans held-for-sale, at lower of cost or fair value 85,315 84,214 68,725 1,101 Loans held-in-portfolio 29,286,225 29,344,620 29,250,076 (58,395) Less: Unearned income 223,608 212,992 179,523 10,616 Allowance for credit losses 785,790 800,797 918,434 (15,007) Total loans held-in-portfolio, net 28,276,827 28,330,831 28,152,119 (54,004) Premises and equipment, net 486,443 508,023 513,680 (21,580) Other real estate 73,272 72,060 113,940 1,212 Accrued income receivable 203,419 215,993 220,126 (12,574) Mortgage servicing rights, at fair value 119,467 122,543 141,144 (3,076) Other assets 1,750,151 1,713,083 1,833,444 37,068 Goodwill 671,122 671,122 671,122 - Other intangible assets 20,440 21,415 24,511 (975) Total assets $72,657,293 $66,870,268 $62,845,352 $5,787,025 Liabilities and Stockholders’ Equity: Liabilities: Deposits: Non-interest bearing $14,920,887 $14,263,548 $12,520,510 $657,339 Interest bearing 49,720,889 44,479,253 41,323,790 5,241,636 Total deposits 64,641,776 58,742,801 53,844,300 5,898,975 Assets sold under agreements to repurchase 90,925 86,834 153,065 4,091 Notes payable 1,176,620 1,224,230 1,186,274 (47,610) Other liabilities 933,358 918,844 1,881,548 14,514 Total liabilities 66,842,679 60,972,709 57,065,187 5,869,970 Stockholders’ equity: Preferred stock 22,143 22,143 22,143 - Common stock 1,045 1,045 1,044 - Surplus 4,506,659 4,571,919 4,520,333 (65,260) Retained earnings 2,670,885 2,489,453 2,033,782 181,432 Treasury stock (1,290,427) (1,012,263) (1,016,486) (278,164) Accumulated other comprehensive (loss) income, net of tax (95,691) (174,738) 219,349 79,047 Total stockholders’ equity 5,814,614 5,897,559 5,780,165 (82,945) Total liabilities and stockholders’ equity $72,657,293 $66,870,268 $62,845,352 $5,787,025 Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER (Unaudited) Quarters ended Variance 30-Jun-21 31-Mar-21 30-Jun-20 Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 ($ amounts in millions) Average balance Income / Expense Yield / Rate Average balance Income / Expense Yield / Rate Average balance Income / Expense Yield / Rate Average balance Income / Expense Yield / Rate Average balance Income / Expense Yield / Rate Assets: Interest earning assets: Money market, trading and investment securities $38,136 $137.5 1.44 % $33,756 $127.8 1.52 % $27,356 $111.5 1.64 % $4,380 $9.7 (0.08) % $10,780 $26.0 (0.20) % Loans: Commercial 13,539 176.9 5.24 13,624 179.0 5.33 13,350 168.8 5.09 (85) (2.1) (0.09) 189 8.1 0.15 Construction 858 11.6 5.43 911 11.9 5.30 935 13.2 5.69 (53) (0.3) 0.13 (77) (1.6) (0.26) Mortgage 7,765 99.4 5.12 7,869 98.4 5.00 7,038 92.2 5.24 (104) 1.0 0.12 727 7.2 (0.12) Consumer 2,431 68.7 11.34 2,513 70.4 11.36 2,918 82.9 11.43 (82) (1.7) (0.02) (487) (14.2) (0.09) Auto 3,280 70.1 8.58 3,203 68.2 8.63 2,957 66.0 8.98 77 1.9 (0.05) 323 4.1 (0.40) Lease financing 1,262 19.0 6.01 1,215 18.4 6.04 1,082 16.1 5.97 47 0.6 (0.03) 180 2.9 0.04 Total loans 29,135 445.7 6.13 29,335 446.3 6.15 28,280 439.2 6.24 (200) (0.6) (0.02) 855 6.5 (0.11) Total interest earning assets $67,271 $583.2 3.47 % $63,091 $574.1 3.67 % $55,636 $550.7 3.98 % $4,180 $9.1 (0.20) % $11,635 $32.5 (0.51) % Allowance for credit losses - loan portfolio (801) (890) (926) 89 125 Allowance for credit losses - investment securities (10) (10) (13) - 3 Other non-interest earning assets 3,906 3,895 4,100 11 (194) Total average assets $70,366 $66,086 $58,797 $4,280 $11,569 Liabilities and Stockholders' Equity: Interest bearing deposits: NOW and money market $25,102 $8.0 0.13 % $22,674 $8.3 0.15 % $19,392 $11.6 0.24 % $2,428 $(0.3) (0.02) % $5,710 $(3.6) (0.11) % Savings 15,384 6.9 0.18 14,364 7.0 0.20 11,856 10.2 0.35 1,020 (0.1) (0.02) 3,528 (3.3) (0.17) Time deposits 7,104 13.2 0.74 7,265 14.9 0.83 8,730 21.0 0.97 (161) (1.7) (0.09) (1,626) (7.8) (0.23) Total interest-bearing deposits 47,590 28.1 0.24 44,303 30.2 0.28 39,978 42.8 0.43 3,287 (2.1) (0.04) 7,612 (14.7) (0.19) Borrowings 1,316 13.9 4.24 1,344 14.1 4.23 1,336 14.9 4.48 (28) (0.2) 0.01 (20) (1.0) (0.24) Total interest-bearing liabilities 48,906 42.0 0.34 45,647 44.3 0.39 41,314 57.7 0.56 3,259 (2.3) (0.05) 7,592 (15.7) (0.22) Net interest spread 3.13 % 3.28 % 3.42 % (0.15) % (0.29) % Non-interest bearing deposits 14,920 13,394 11,006 1,526 3,914 Other liabilities 857 1,351 1,203 (494) (346) Stockholders' equity 5,683 5,694 5,274 (11) 409 Total average liabilities and stockholders' equity $70,366 $66,086 $58,797 $4,280 $11,569 Net interest income / margin on a taxable equivalent basis (Non-GAAP) $541.2 3.22 % $529.8 3.39 % $493.0 3.56 % $11.4 (0.17) % $48.2 (0.34) % Taxable equivalent adjustment 53.4 50.7 42.1 2.7 11.3 Net interest income / margin non-taxable equivalent basis (GAAP) $487.8 2.91 % $479.1 3.07 % $450.9 3.25 % $8.7 (0.16) % $36.9 (0.34) % Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE (Unaudited) Six months ended 30-Jun-21 30-Jun-20 Variance Average Income / Yield / Average Income / Yield / Average Income / Yield / ($ amounts in millions) balance Expense Rate balance Expense Rate balance Expense Rate Assets: Interest earning assets: Money market, trading and investment securities $35,958 $267.0 1.49 % $24,050 $247.2 2.06 % $11,908 $19.8 (0.57) % Loans: Commercial 13,582 355.9 5.30 12,846 352.0 5.51 736 3.9 (0.21) Construction 884 23.5 5.38 898 26.4 5.91 (14) (2.9) (0.53) Mortgage 7,816 197.8 5.06 7,033 185.4 5.27 783 12.4 (0.21) Consumer 2,472 139.1 11.35 3,014 172.2 11.49 (542) (33.1) (0.14) Auto 3,241 138.3 8.63 2,975 133.8 9.04 266 4.5 (0.41) Lease financing 1,239 37.3 6.02 1,077 32.4 6.02 162 4.9 - Total loans 29,234 891.9 6.15 27,843 902.2 6.51 1,391 (10.3) (0.36) Total interest earning assets $65,192 $1,158.9 3.58 % $51,893 $1,149.4 4.45 % $13,299 $9.5 (0.87) % Allowance for credit losses - loan portfolio (845) (867) 22 Allowance for credit losses - investment securities (10) (13) 3 Other non-interest earning assets 3,900 4,064 (164) Total average assets $68,237 $55,077 $13,160 Liabilities and Stockholders' Equity: Interest bearing deposits: NOW and money market $23,895 $16.2 0.14 % $17,811 $36.8 0.42 % $6,084 ($20.6) (0.28) % Savings 14,876 14.0 0.19 11,290 21.9 0.39 3,586 (7.9) (0.20) Time deposits 7,184 28.1 0.79 8,211 46.1 1.13 (1,027) (18.0) (0.34) Total interest-bearing deposits 45,955 58.3 0.26 37,312 104.8 0.57 8,643 (46.5) (0.31) Borrowings 1,330 28.0 4.24 1,331 30.1 4.53 (1) (2.1) (0.29) Total interest-bearing liabilities 47,285 86.3 0.37 38,643 134.9 0.70 8,642 (48.6) (0.33) Net interest spread 3.21 % 3.75 % (0.54) % Non-interest bearing deposits 14,161 10,004 4,157 Other liabilities 1,103 1,052 51 Stockholders' equity 5,688 5,378 310 Total average liabilities and stockholders' equity $68,237 $55,077 $13,160 Net interest income / margin on a taxable equivalent basis (Non-GAAP) $1,072.6 3.31 % $1,014.5 3.93 % $58.1 (0.62) % Taxable equivalent adjustment 105.7 90.5 15.2 Net interest income / margin non-taxable equivalent basis (GAAP) $966.9 2.99 % $924.0 3.58 % $42.9 (0.59) % Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table F - Mortgage Banking Activities and Other Service Fees (Unaudited) Mortgage Banking Activities Quarters ended Variance Six months ended Variance (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 30-Jun-21 30-Jun-20 2021 vs. 2020 Mortgage servicing fees, net of fair value adjustments: Mortgage servicing fees $9,522 $9,715 $9,058 $(193) $464 $19,237 $20,026 $(789) Mortgage servicing rights fair value adjustments (6,239) 512 (7,640) (6,751) 1,401 (5,727) (12,869) 7,142 Total mortgage servicing fees, net of fair value adjustments 3,283 10,227 1,418 (6,944) 1,865 13,510 7,157 6,353 Net gain on sale of loans, including valuation on loans held-for-sale 5,197 4,975 5,487 222 (290) 10,172 9,473 699 Trading account (loss) profit: Unrealized gains (losses) on outstanding derivative positions - - 1,695 - (1,695) - - - Realized (losses) gains on closed derivative positions (866) 2,502 (4,823) (3,368) 3,957 1,636 (6,433) 8,069 Total trading account (loss) profit (866) 2,502 (3,128) (3,368) 2,262 1,636 (6,433) 8,069 Losses on repurchased loans, including interest advances[1] (166) (361) - 195 (166) (527) - (527) Total mortgage banking activities $7,448 $17,343 $3,777 $(9,895) $3,671 $24,791 $10,197 $14,594 [1]The Corporation, from time to time, repurchases delinquent loans from its GNMA servicing portfolio, in compliance with Guarantor guidelines, and may incur in losses related to previously advanced interest on delinquent loans. Effective for the quarter ended September 30, 2020, the Corporation has determined to present these losses as part of its Mortgage Banking Activities, which were previously presented with the indemnity reserves on loans sold component of non-interest income. The amount of these losses for prior years were considered immaterial for reclassification. Other Service Fees Quarters ended Variance Six months ended Variance (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 30-Jun-21 30-Jun-20 2021 vs. 2020 Other service fees: Debit card fees $12,458 $11,577 $7,082 $881 $5,376 $24,035 $17,319 $6,716 Insurance fees 12,773 12,828 11,301 (55) 1,472 25,601 24,270 1,331 Credit card fees 32,726 28,691 17,762 4,035 14,964 61,417 40,948 20,469 Sale and administration of investment products 5,970 5,540 4,910 430 1,060 11,510 11,173 337 Trust fees 6,165 5,842 5,546 323 619 12,007 10,806 1,201 Other fees 6,290 6,150 5,483 140 807 12,440 12,341 99 Total other service fees $76,382 $70,628 $52,084 $5,754 $24,298 $147,010 $116,857 $30,153 Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table G - Loans and Deposits (Unaudited) Loans - Ending Balances Variance (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 Loans held-in-portfolio: Commercial $13,437,932 $13,442,486 $13,744,579 $(4,554) $(306,647) Construction 865,113 907,736 936,010 (42,623) (70,897) Lease financing 1,297,928 1,244,956 1,098,188 52,972 199,740 Mortgage 7,678,478 7,808,852 7,521,795 (130,374) 156,683 Auto 3,289,027 3,203,137 2,904,324 85,890 384,703 Consumer 2,494,139 2,524,461 2,865,657 (30,322) (371,518) Total loans held-in-portfolio $29,062,617 $29,131,628 $29,070,553 $(69,011) $(7,936) Loans held-for-sale: Commercial $1,700 $3,549 $6,778 $(1,849) $(5,078) Construction 7,000 - - 7,000 7,000 Mortgage 76,615 80,665 61,947 (4,050) 14,668 Total loans held-for-sale $85,315 $84,214 $68,725 $1,101 $16,590 Total loans $29,147,932 $29,215,842 $29,139,278 $(67,910) $8,654 Deposits - Ending Balances Variance (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 Demand deposits [1] $24,497,918 $23,450,312 $22,731,726 $1,047,606 $1,766,192 Savings, NOW and money market deposits (non-brokered) 32,452,829 27,356,136 22,457,951 5,096,693 9,994,878 Savings, NOW and money market deposits (brokered) 683,021 679,832 522,929 3,189 160,092 Time deposits (non-brokered) 6,979,349 7,143,221 7,919,265 (163,872) (939,916) Time deposits (brokered CDs) 28,659 113,300 212,429 (84,641) (183,770) Total deposits $64,641,776 $58,742,801 $53,844,300 $5,898,975 $10,797,476 [1] Includes interest and non-interest bearing demand deposits. Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table H - Loan Delinquency - Puerto Rico Operations (Unaudited) 30-Jun-21 Puerto Rico Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 128 $ - $ 397 $ 525 $ 151,258 $ 151,783 $ 397 $ - Commercial real estate: Non-owner occupied 32,749 - 72,378 105,127 1,888,302 1,993,429 72,378 - Owner occupied 3,995 604 79,808 84,407 1,380,022 1,464,429 79,808 - Commercial and industrial 2,314 682 65,727 68,723 3,952,675 4,021,398 65,120 607 Construction - 3,080 14,877 17,957 124,990 142,947 14,877 - Mortgage 164,779 73,492 995,175 1,233,446 5,281,711 6,515,157 370,653 624,522 Leasing 6,054 2,103 2,286 10,443 1,287,485 1,297,928 2,286 - Consumer: Credit cards 4,371 2,826 8,021 15,218 864,912 880,130 - 8,021 Home equity lines of credit - - - - 3,489 3,489 - - Personal 9,405 4,444 23,861 37,710 1,227,582 1,265,292 23,861 - Auto 39,032 7,405 13,286 59,723 3,229,304 3,289,027 13,286 - Other 214 97 14,288 14,599 108,427 123,026 14,123 165 Total $ 263,041 $ 94,733 $ 1,290,104 $ 1,647,878 $ 19,500,157 $ 21,148,035 $ 656,789 $ 633,315 31-Mar-21 Puerto Rico Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 196 $ - $ 814 $ 1,010 $ 137,097 $ 138,107 $ 814 $ - Commercial real estate: Non-owner occupied 939 25,406 76,524 102,869 1,958,129 2,060,998 76,524 - Owner occupied 6,749 2,114 89,752 98,615 1,413,356 1,511,971 89,752 - Commercial and industrial 3,870 650 34,333 38,853 4,032,359 4,071,212 33,773 560 Construction 639 - 14,877 15,516 145,081 160,597 14,877 - Mortgage 175,930 83,770 1,211,935 1,471,635 5,204,344 6,675,979 390,781 821,154 Leasing 7,564 1,408 3,040 12,012 1,232,944 1,244,956 3,040 - Consumer: Credit cards 4,824 3,883 10,779 19,486 858,255 877,741 - 10,779 Home equity lines of credit - - 46 46 3,498 3,544 - 46 Personal 10,216 6,250 25,731 42,197 1,219,094 1,261,291 25,731 - Auto 47,396 8,783 15,405 71,584 3,131,553 3,203,137 15,405 - Other 360 375 15,489 16,224 108,508 124,732 15,281 208 Total $ 258,683 $ 132,639 $ 1,498,725 $ 1,890,047 $ 19,444,218 $ 21,334,265 $ 665,978 $ 832,747 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ (68) $ - $ (417) $ (485) $ 14,161 $ 13,676 $ (417) $ - Commercial real estate: Non-owner occupied 31,810 (25,406) (4,146) 2,258 (69,827) (67,569) (4,146) - Owner occupied (2,754) (1,510) (9,944) (14,208) (33,334) (47,542) (9,944) - Commercial and industrial (1,556) 32 31,394 29,870 (79,684) (49,814) 31,347 47 Construction (639) 3,080 - 2,441 (20,091) (17,650) - - Mortgage (11,151) (10,278) (216,760) (238,189) 77,367 (160,822) (20,128) (196,632) Leasing (1,510) 695 (754) (1,569) 54,541 52,972 (754) - Consumer: Credit cards (453) (1,057) (2,758) (4,268) 6,657 2,389 - (2,758) Home equity lines of credit - - (46) (46) (9) (55) - (46) Personal (811) (1,806) (1,870) (4,487) 8,488 4,001 (1,870) - Auto (8,364) (1,378) (2,119) (11,861) 97,751 85,890 (2,119) - Other (146) (278) (1,201) (1,625) (81) (1,706) (1,158) (43) Total $ 4,358 $ (37,906) $ (208,621) $ (242,169) $ 55,939 $ (186,230) $ (9,189) $ (199,432) Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table I - Loan Delinquency - Popular U.S. Operations (Unaudited) June 30, 2021 Popular U.S. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ - $ - $ 5,949 $ 5,949 $ 1,733,104 $ 1,739,053 $ 5,949 $ - Commercial real estate: Non-owner occupied - - 374 374 2,131,860 2,132,234 374 - Owner occupied 907 639 193 1,739 338,445 340,184 193 - Commercial and industrial 3,070 509 1,346 4,925 1,590,497 1,595,422 1,346 - Construction - - - - 722,166 722,166 - - Mortgage 2,498 5,005 13,323 20,826 1,142,495 1,163,321 13,323 - Consumer: Credit cards - - - - 31 31 - - Home equity lines of credit 501 210 6,377 7,088 74,850 81,938 6,377 - Personal 572 579 832 1,983 135,014 136,997 832 - Other - - - - 3,236 3,236 - - Total $ 7,548 $ 6,942 $ 28,394 $ 42,884 $ 7,871,698 $ 7,914,582 $ 28,394 $ - March 31, 2021 Popular U.S. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 30,185 $ - $ - $ 30,185 $ 1,724,802 $ 1,754,987 $ - $ - Commercial real estate: Non-owner occupied 8,280 - 392 8,672 2,034,383 2,043,055 392 - Owner occupied 5,437 644 323 6,404 323,541 329,945 323 - Commercial and industrial 7,226 1,321 1,201 9,748 1,522,463 1,532,211 1,192 9 Construction 11,110 - 7,523 18,633 728,506 747,139 7,523 - Mortgage 13,032 1,762 14,793 29,587 1,103,286 1,132,873 14,793 - Consumer: Credit cards - - - - 22 22 - - Home equity lines of credit 121 10 6,855 6,986 82,631 89,617 6,855 - Personal 1,156 666 1,086 2,908 162,540 165,448 1,086 - Other - - - - 2,066 2,066 - - Total $ 76,547 $ 4,403 $ 32,173 $ 113,123 $ 7,684,240 $ 7,797,363 $ 32,164 $ 9 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ (30,185) $ - $ 5,949 $ (24,236) $ 8,302 $ (15,934) $ 5,949 $ - Commercial real estate: Non-owner occupied (8,280) - (18) (8,298) 97,477 89,179 (18) - Owner occupied (4,530) (5) (130) (4,665) 14,904 10,239 (130) - Commercial and industrial (4,156) (812) 145 (4,823) 68,034 63,211 154 (9) Construction (11,110) - (7,523) (18,633) (6,340) (24,973) (7,523) - Mortgage (10,534) 3,243 (1,470) (8,761) 39,209 30,448 (1,470) - Consumer: Credit cards - - - - 9 9 - - Home equity lines of credit 380 200 (478) 102 (7,781) (7,679) (478) - Personal (584) (87) (254) (925) (27,526) (28,451) (254) - Other - - - - 1,170 1,170 - - Total $ (68,999) $ 2,539 $ (3,779) $ (70,239) $ 187,458 $ 117,219 $ (3,770) $ (9) Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table J - Loan Delinquency - Consolidated (Unaudited) 30-Jun-21 Popular, Inc. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 128 $ - $ 6,346 $ 6,474 $ 1,884,362 $ 1,890,836 $ 6,346 $ - Commercial real estate: Non-owner occupied 32,749 - 72,752 105,501 4,020,162 4,125,663 72,752 - Owner occupied 4,902 1,243 80,001 86,146 1,718,467 1,804,613 80,001 - Commercial and industrial 5,384 1,191 67,073 73,648 5,543,172 5,616,820 66,466 607 Construction - 3,080 14,877 17,957 847,156 865,113 14,877 - Mortgage 167,277 78,497 1,008,498 1,254,272 6,424,206 7,678,478 383,976 624,522 Leasing 6,054 2,103 2,286 10,443 1,287,485 1,297,928 2,286 - Consumer: Credit cards 4,371 2,826 8,021 15,218 864,943 880,161 - 8,021 Home equity lines of credit 501 210 6,377 7,088 78,339 85,427 6,377 - Personal 9,977 5,023 24,693 39,693 1,362,596 1,402,289 24,693 - Auto 39,032 7,405 13,286 59,723 3,229,304 3,289,027 13,286 - Other 214 97 14,288 14,599 111,663 126,262 14,123 165 Total $ 270,589 $ 101,675 $ 1,318,498 $ 1,690,762 $ 27,371,855 $ 29,062,617 $ 685,183 $ 633,315 31-Mar-21 Popular, Inc. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 30,381 $ - $ 814 $ 31,195 $ 1,861,899 $ 1,893,094 $ 814 $ - Commercial real estate: Non-owner occupied 9,219 25,406 76,916 111,541 3,992,512 4,104,053 76,916 - Owner occupied 12,186 2,758 90,075 105,019 1,736,897 1,841,916 90,075 - Commercial and industrial 11,096 1,971 35,534 48,601 5,554,822 5,603,423 34,965 569 Construction 11,749 - 22,400 34,149 873,587 907,736 22,400 - Mortgage 188,962 85,532 1,226,728 1,501,222 6,307,630 7,808,852 405,574 821,154 Leasing 7,564 1,408 3,040 12,012 1,232,944 1,244,956 3,040 - Consumer: Credit cards 4,824 3,883 10,779 19,486 858,277 877,763 - 10,779 Home equity lines of credit 121 10 6,901 7,032 86,129 93,161 6,855 46 Personal 11,372 6,916 26,817 45,105 1,381,634 1,426,739 26,817 - Auto 47,396 8,783 15,405 71,584 3,131,553 3,203,137 15,405 - Other 360 375 15,489 16,224 110,574 126,798 15,281 208 Total $ 335,230 $ 137,042 $ 1,530,898 $ 2,003,170 $ 27,128,458 $ 29,131,628 $ 698,142 $ 832,756 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ (30,253) $ - $ 5,532 $ (24,721) $ 22,463 $ (2,258) $ 5,532 $ - Commercial real estate: Non-owner occupied 23,530 (25,406) (4,164) (6,040) 27,650 21,610 (4,164) - Owner occupied (7,284) (1,515) (10,074) (18,873) (18,430) (37,303) (10,074) - Commercial and industrial (5,712) (780) 31,539 25,047 (11,650) 13,397 31,501 38 Construction (11,749) 3,080 (7,523) (16,192) (26,431) (42,623) (7,523) - Mortgage (21,685) (7,035) (218,230) (246,950) 116,576 (130,374) (21,598) (196,632) Leasing (1,510) 695 (754) (1,569) 54,541 52,972 (754) - Consumer: Credit cards (453) (1,057) (2,758) (4,268) 6,666 2,398 - (2,758) Home equity lines of credit 380 200 (524) 56 (7,790) (7,734) (478) (46) Personal (1,395) (1,893) (2,124) (5,412) (19,038) (24,450) (2,124) - Auto (8,364) (1,378) (2,119) (11,861) 97,751 85,890 (2,119) - Other (146) (278) (1,201) (1,625) 1,089 (536) (1,158) (43) Total $ (64,641) $ (35,367) $ (212,400) $ (312,408) $ 243,397 $ (69,011) $ (12,959) $ (199,441) Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table K - Non-Performing Assets (Unaudited) Variance (Dollars in thousands) 30-Jun-21 As a % of loans HIP by category 31-Mar-21 As a % of loans HIP by category 30-Jun-20 As a % of loans HIP by category Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 Non-accrual loans: Commercial $225,565 1.7 % $202,770 1.5 % $263,129 1.9 % $22,795 $(37,564) Construction 14,877 1.7 22,400 2.5 - - (7,523) 14,877 Lease financing 2,286 0.2 3,040 0.2 4,751 0.4 (754) (2,465) Mortgage 383,976 5.0 405,574 5.2 411,406 5.5 (21,598) (27,430) Auto 13,286 0.4 15,405 0.5 22,111 0.8 (2,119) (8,825) Consumer 45,193 1.8 48,953 1.9 58,807 2.1 (3,760) (13,614) Total non-performing loans held-in-portfolio 685,183 2.4 % 698,142 2.4 % 760,204 2.6 % (12,959) (75,021) Non-performing loans held-for-sale [1] 8,700 3,549 6,778 5,151 1,922 Other real estate owned (“OREO”) 73,272 72,060 113,940 1,212 (40,668) Total non-performing assets $767,155 $773,751 $880,922 $(6,596) $(113,767) Accruing loans past due 90 days or more [2] $633,315 $832,756 $878,776 $(199,441) $(245,461) Ratios: Non-performing assets to total assets 1.06 % 1.16 % 1.40 % Non-performing loans held-in-portfolio to loans held-in-portfolio 2.36 2.40 2.62 Allowance for credit losses to loans held-in-portfolio 2.70 2.75 3.16 Allowance for credit losses to non-performing loans, excluding loans held-for-sale 114.68 114.70 120.81 [1] Non-performing loans held-for-sale as of June 30, 2021, were $7 million in construction loans and $2 million commercial loans (March 31, 2021 - $4 million in commercial loans; June 30, 2020 - $7 million in commercial loans). [2] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. The balance of these loans includes $15 million at June 30, 2021, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (March 31, 2021 - $29 million; June 30, 2020 - $522 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on the financial statements of BPPR with an offsetting liability. While the borrowers for our serviced GNMA portfolio benefited from the moratorium, the delinquency status of these loans continued to be reported to GNMA without considering the moratorium. These balances include $363 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2021 (March 31, 2021 - $341 million; June 30, 2020 - $234 million). Furthermore, the Corporation has approximately $56 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (March 31, 2021 - $58 million; June 30, 2020 - $62 million). Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table L - Activity in Non-Performing Loans (Unaudited) Commercial loans held-in-portfolio: Quarter ended Quarter ended 30-Jun-21 31-Mar-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $200,863 $1,907 $202,770 $204,092 $5,988 $210,080 Plus: New non-performing loans 39,657 7,570 47,227 7,724 1,693 9,417 Advances on existing non-performing loans - 1 1 - 6 6 Less: Non-performing loans transferred to OREO (2,346) - (2,346) (3,850) - (3,850) Non-performing loans charged-off (1,515) (624) (2,139) (2,391) (352) (2,743) Loans returned to accrual status / loan collections (18,956) (992) (19,948) (4,712) (3,655) (8,367) Loans transferred to held-for-sale - - - - (1,773) (1,773) Ending balance NPLs $217,703 $7,862 $225,565 $200,863 $1,907 $202,770 Construction loans held-in-portfolio: Quarter ended Quarter ended 30-Jun-21 31-Mar-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $14,877 $7,523 $22,400 $21,497 $7,560 $29,057 Plus: New non-performing loans - - - - 12,141 12,141 Less: Non-performing loans charged-off - (523) (523) (6,620) - (6,620) Loans returned to accrual status / loan collections - - - - (12,178) (12,178) Loans transferred to held-for-sale - (7,000) (7,000) - - - Ending balance NPLs $14,877 $- $14,877 $14,877 $7,523 $22,400 Mortgage loans held-in-portfolio: Quarter ended Quarter ended 30-Jun-21 31-Mar-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $390,781 $14,793 $405,574 $414,343 $14,864 $429,207 Plus: New non-performing loans 43,432 4,774 48,206 58,397 4,323 62,720 Advances on existing non-performing loans - 11 11 - 5 5 Less: Non-performing loans transferred to OREO (8,257) - (8,257) (801) - (801) Non-performing loans charged-off (4,297) - (4,297) (8,722) (1) (8,723) Loans returned to accrual status / loan collections (51,006) (6,255) (57,261) (72,436) (4,398) (76,834) Ending balance NPLs $370,653 $13,323 $383,976 $390,781 $14,793 $405,574 Total non-performing loans held-in-portfolio (excluding consumer): Quarter ended Quarter ended 30-Jun-21 31-Mar-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $606,521 $24,223 $630,744 $639,932 $28,412 $668,344 Plus: New non-performing loans 83,089 12,344 95,433 66,121 18,157 84,278 Advances on existing non-performing loans - 12 12 - 11 11 Less: Non-performing loans transferred to OREO (10,603) - (10,603) (4,651) - (4,651) Non-performing loans charged-off (5,812) (1,147) (6,959) (17,733) (353) (18,086) Loans returned to accrual status / loan collections (69,962) (7,247) (77,209) (77,148) (20,231) (97,379) Loans transferred to held-for-sale - (7,000) (7,000) - (1,773) (1,773) Ending balance NPLs $603,233 $21,185 $624,418 $606,521 $24,223 $630,744 Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios (Unaudited) Quarters ended (Dollars in thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Balance at beginning of period - loans held-in-portfolio $800,797 $896,250 $919,716 Provision for credit losses (benefit) (17,500) (75,779) 63,104 Initial allowance for credit losses - PCD Loans 1,202 1,356 567 784,499 821,827 983,387 Net loans charged-off (recovered): BPPR Commercial (9,877) (1,434) 1,097 Construction (479) 5,917 (195) Lease financing 393 118 3,390 Mortgage 935 8,303 7,554 Consumer 7,545 6,570 50,297 Total BPPR (1,483) 19,474 62,143 Popular U.S. Commercial (413) 16 (784) Construction 93 - - Mortgage (423) (80) (19) Consumer 935 1,620 3,613 Total Popular U.S. 192 1,556 2,810 Total loans charged-off (recovered) - Popular, Inc. (1,291) 21,030 64,953 Balance at end of period - loans held-in-portfolio $785,790 $800,797 $918,434 Balance at beginning of period - unfunded commitments $9,569 $15,851 $4,466 Provision for credit losses (benefit) 367 (6,282) 2,251 Balance at end of period - unfunded commitments [1] $9,936 $9,569 $6,717 POPULAR, INC. Annualized net charge-offs (recoveries) to average loans held-in-portfolio (0.02) % 0.29 % 0.92 % Provision for credit losses (benefit) - loan portfolios to net charge-offs N.M. -360.34 % 97.15 % BPPR Annualized net charge-offs (recoveries) to average loans held-in-portfolio (0.03) % 0.36 % 1.20 % Provision for credit losses (benefit) - loan portfolios to net charge-offs N.M -205.28 % 97.23 % Popular U.S. Annualized net charge-offs to average loans held-in-portfolio 0.01 % 0.08 % 0.15 % Provision for credit losses (benefit) - loan portfolios to net charge-offs N.M. N.M. 95.41 % N.M. - Not meaningful. [1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table N - Allowance for Credit Losses "ACL"- Loan Portfolios - CONSOLIDATED (Unaudited) 30-Jun-21 (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $271,144 $11,256 $182,619 $17,551 $303,220 $785,790 Total loans held-in-portfolio $13,437,932 $865,113 $7,678,478 $1,297,928 $5,783,166 $29,062,617 ACL to loans held-in-portfolio 2.02 % 1.30 % 2.38 % 1.35 % 5.24 % 2.70 % 31-Mar-21 (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $276,219 $9,195 $202,126 $12,687 $300,570 $800,797 Total loans held-in-portfolio $13,442,486 $907,736 $7,808,852 $1,244,956 $5,727,598 $29,131,628 ACL to loans held-in-portfolio 2.05 % 1.01 % 2.59 % 1.02 % 5.25 % 2.75 % Variance (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $(5,075) $2,061 $(19,507) $4,864 $2,650 $(15,007) Total loans held-in-portfolio $(4,554) $(42,623) $(130,374) $52,972 $55,568 $(69,011) Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table O - Allowance for Credit Losses "ACL"- Loan Portfolios - PUERTO RICO OPERATIONS (Unaudited) 30-Jun-21 Puerto Rico (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $186,784 $1,220 $166,808 $17,551 $289,490 $661,853 Loans held-in-portfolio $7,631,039 $142,947 $6,515,157 $1,297,928 $5,560,964 $21,148,035 ACL to loans held-in-portfolio 2.45 % 0.85 % 2.56 % 1.35 % 5.21 % 3.13 % 31-Mar-21 Puerto Rico (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $197,111 $260 $185,805 $12,687 $285,793 $681,656 Loans held-in-portfolio $7,782,288 $160,597 $6,675,979 $1,244,956 $5,470,445 $21,334,265 ACL to loans held-in-portfolio 2.53 % 0.16 % 2.78 % 1.02 % 5.22 % 3.20 % Variance (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $(10,327) $960 $(18,997) $4,864 $3,697 $(19,803) Loans held-in-portfolio $(151,249) $(17,650) $(160,822) $52,972 $90,519 $(186,230) Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table P - Allowance for Credit Losses "ACL"- Loan Portfolios - POPULAR U.S. OPERATIONS (Unaudited) 30-Jun-21 Popular U.S. (In thousands) Commercial Construction Mortgage Consumer Total ACL $84,360 $10,036 $15,811 $13,730 $123,937 Loans held-in-portfolio $5,806,893 $722,166 $1,163,321 $222,202 $7,914,582 ACL to loans held-in-portfolio 1.45 % 1.39 % 1.36 % 6.18 % 1.57 % 31-Mar-21 Popular U.S. (In thousands) Commercial Construction Mortgage Consumer Total ACL $79,108 $8,935 $16,321 $14,777 $119,141 Loans held-in-portfolio $5,660,198 $747,139 $1,132,873 $257,153 $7,797,363 ACL to loans held-in-portfolio 1.40 % 1.20 % 1.44 % 5.75 % 1.53 % Variance (In thousands) Commercial Construction Mortgage Consumer Total ACL $5,252 $1,101 $(510) $(1,047) $4,796 Loans held-in-portfolio $146,695 $(24,973) $30,448 $(34,951) $117,219 Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table Q - Reconciliation to GAAP Financial Measures (Unaudited) (In thousands, except share or per share information) 30-Jun-21 31-Mar-21 30-Jun-20 Total stockholders’ equity $5,814,614 $5,897,559 $5,780,165 Less: Preferred stock (22,143) (22,143) (22,143) Less: Goodwill (671,122) (671,122) (671,122) Less: Other intangibles (20,440) (21,415) (24,511) Total tangible common equity $5,100,909 $5,182,879 $5,062,389 Total assets $72,657,293 $66,870,268 $62,845,352 Less: Goodwill (671,122) (671,122) (671,122) Less: Other intangibles (20,440) (21,415) (24,511) Total tangible assets $71,965,731 $66,177,731 $62,149,719 Tangible common equity to tangible assets 7.09 % 7.83 % 8.15 % Common shares outstanding at end of period 80,656,480 84,379,180 84,184,927 Tangible book value per common share $63.24 $61.42 $60.13 Quarterly average Total stockholders’ equity [1] $5,683,325 $5,693,672 $5,274,071 Less: Preferred Stock (22,143) (22,143) (22,143) Less: Goodwill (671,121) (671,121) (671,121) Less: Other intangibles (21,350) (22,104) (25,497) Total tangible equity $4,968,711 $4,978,304 $4,555,310 Return on average tangible common equity 17.58 % 21.37 % 11.23 % [1] Average balances exclude unrealized gains or losses on debt securities available-for-sale. View source version on businesswire.com: https://www.businesswire.com/news/home/20210722005308/en/Contacts Popular, Inc. Investor Relations: Paul J. Cardillo, 212-417-6721 Investor Relations Officer pcardillo@popular.com or Media Relations: MC González Noguera, 917-804-5253 Executive Vice President and Chief Communications & Public Affairs Officer mc.gonzalez@popular.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Popular, Inc. Announces Second Quarter 2021 Financial Results By: Popular, Inc. via Business Wire July 22, 2021 at 08:00 AM EDT Net income of $218.1 million in Q2 2021, compared to net income of $262.6 million in Q1 2021. Net interest margin of 2.91% in Q2 2021, compared to 3.07% in Q1 2021; net interest margin on a taxable equivalent basis of 3.22% in Q2 2021, compared to 3.39% in Q1 2021. Credit Quality: Non-performing loans held-in-portfolio (“NPLs”) decreased by $13.0 million from Q1 2021; NPLs to loans ratio at 2.4% flat from Q1 2021; Net charge-offs (“NCOs”) was a net recovery of $1.3 million, a favorable variance by $22.3 million from Q1 2021; NCOs at (0.02)% of average loans held-in-portfolio vs. 0.29% in Q1 2021; Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.70% vs. 2.75% in Q1 2021; and ACL to NPLs at 114.7% flat from Q1 2021. Common Equity Tier 1 ratio of 16.55%, Common Equity per Share of $71.82 and Tangible Book Value per Share of $63.24 at June 30, 2021. Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $218.1 million for the quarter ended June 30, 2021, compared to net income of $262.6 million for the quarter ended March 31, 2021. Ignacio Alvarez, President and Chief Executive Officer, said: “We had another strong quarter with net income of $218 million. These results reflect improving macro-economic conditions and credit quality as well as our diversified sources of revenue. Consumer spending in P.R. has increased and it is reflected in higher revenues from credit and debit card spending. Deposit balances grew by $5.9 billion and excluding forgiveness of PPP loans, we saw a small increase in our period end loans, led by strong auto loan originations in P.R. During the quarter we also continued to return capital to our shareholders, increased our common stock dividend, while maintaining a CET1 ratio of 16.6% at quarter end. While we are extremely pleased with the results for the first half of the year, we remain attentive on how the evolving health situation may impact the economic recovery. We also continued to support the communities we serve. During the quarter we released our annual Corporate Sustainability Report, which summarizes our program, takes into account widely accepted sustainability reporting standards and highlights our commitment, progress and achievements in our efforts to operate as a responsible, ethical and sustainable company.” Significant Events Financial Highlights For the second quarter of 2021, the Corporation recorded net income of $218.1 million, compared to a net income of $262.6 million for the previous quarter. The second quarter’s results include a release of the allowance for credit losses of $17.0 million driven by improving credit quality and the improved macroeconomic outlook. Net Interest income was $487.8 million, an increase of $8.7 million compared to the previous quarter, mainly due to additional funds invested from the increase in deposits. The net interest margin decreased 16 basis points to 2.91%. Total assets grew by $5.8 billion from the previous quarter, reflecting an increase in deposits across various sectors, principally from the Puerto Rico public sector. Capital Actions On May 3, 2021, the Corporation announced that it had entered into an accelerated share repurchase agreement (the “ASR Agreement”) to repurchase an aggregate of $350 million of Popular’s common stock. Under the terms of the ASR Agreement, on May 4, 2021 the Corporation made an initial payment of $350 million and received an initial delivery of 3,785,831 shares of Popular’s Common Stock (the “Initial Shares”). The transaction was accounted for as a treasury stock transaction. Furthermore, as a result of the receipt of the Initial Shares, the Corporation recognized in shareholders’ equity approximately $280 million in treasury stock and $70 million as a reduction in capital surplus. Upon the final settlement of the ASR Agreement, the Corporation expects to further adjust its treasury stock and capital surplus accounts to reflect the final delivery or receipt of cash or shares, which will depend on the volume-weighted average price of the Corporation’s common stock during the term of the ASR Agreement, less a discount. The final settlement of the ASR Agreement is expected to occur no later than the third quarter of 2021. On May 6, 2021, the Corporation’s Board of Directors approved a quarterly cash dividend of $0.45 per share, an increase from the previous $0.40 per share quarterly dividend, on its outstanding common stock. The dividend was paid on July 1, 2021 to shareholders of record at the close of business on May 26, 2021. Earnings Highlights (Unaudited) Quarters ended Six months ended (Dollars in thousands, except per share information) 30-Jun-21 31-Mar-21 30-Jun-20 30-Jun-21 30-Jun-20 Net interest income $487,802 $479,112 $450,881 $966,914 $923,976 Provision for credit losses (benefit) (17,015) (82,226 ) 62,449 (99,241) 252,180 Net interest income after provision for credit losses (benefit) 504,817 561,338 388,432 1,066,155 671,796 Other non-interest income 154,540 153,653 112,055 308,193 238,698 Operating expenses 368,185 375,528 348,231 743,713 720,839 Income before income tax 291,172 339,463 152,256 630,635 189,655 Income tax expense 73,093 76,831 24,628 149,924 27,725 Net income $218,079 $262,632 $127,628 $480,711 $161,930 Net income applicable to common stock $217,726 $262,279 $127,275 $480,005 $160,877 Net income per common share-basic $2.67 $3.13 $1.49 $5.80 $1.83 Net income per common share-diluted $2.66 $3.12 $1.49 $5.79 $1.83 Net interest income on a taxable equivalent basis – Non-GAAP financial measure Net interest income, on a taxable equivalent basis, is presented with its different components in Table D and E for the quarter and six months ended June 30, 2021 and comparable periods. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources. Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies. Net interest income for the quarter ended June 30, 2021 was $487.8 million compared to $479.1 million in the previous quarter, an increase of $8.7 million. The total net impact on net interest income of one more day in the quarter when compared to the first quarter of 2021 is estimated at $3.7 million. Net interest income, on a taxable equivalent basis, for the second quarter of 2021 was $541.2 million, an increase of $11.4 million when compared to $529.8 million in the first quarter of 2021. On a taxable equivalent basis, the total net impact on net interest income of one more day in the quarter when compared to the first quarter of 2021 is estimated at $4.0 million. Net interest margin decreased 16 basis points to 2.91% compared to 3.07% in the previous quarter. The decrease in the net interest margin is due to a higher proportion of money market and investment securities, which carry a low yield, resulting from a higher volume of deposits in the quarter, lower interest and fees related to loans issued under the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”), partially offset by higher discount amortization on purchased credit deteriorated (“PCD”) loans repaid during the quarter and a lower cost of deposits. On a taxable equivalent basis, net interest margin for the second quarter of 2021 was 3.22 % compared to 3.39% in the first quarter of 2021, a decrease of 17 basis points. The main variances in net interest income on a taxable equivalent basis were: Higher interest income from money market investments, trading and investment securities by $9.7 million due to higher volume by $4.4 billion driven by deposit increases across all business lines, mainly government deposits. The taxable equivalent yield on these assets was 1.44%, compared to 1.52% the previous quarter; and Lower interest expense on deposits by $2.1 million resulting from lower deposit cost by 4 basis points driven by a higher volume of low yielding deposits, reduction of costs in several non-maturity deposit products and renewals of time deposits in a lower interest rate environment. These positive variances in deposit costs were partially offset by higher volume of interest-bearing deposits by $3.3 billion. Partially offset by: Lower interest income from loans by $0.6 million mainly due to the following: Lower interest income from commercial loans by $2.1 million resulting from lower SBA PPP interest income and fees of $9.2 million, partially offset by higher interest income by $7.2 million from PCD loans due to the accelerated discount amortization from several repaid loans and interest for one more day in the quarter of $1.9 million; and Auto and lease financing increasing $124 million in average balances resulting an increase in interest income of $2.5 million. The Corporation recognized interest income of $13.9 million related to loans issued under the SBA PPP program, compared to $23.1 million in the previous quarter. These loans carried a yield of approximately 4.45% in this quarter, including the amortization of fees received under the program, compared to 7.21% last quarter. Net interest income for the Banco Popular de Puerto Rico (“BPPR”) segment amounted to $419.2 million for the quarter ended June 30, 2021, compared to $410.3 million in the previous quarter. Net interest margin for the second quarter of 2021 was 2.91%, a decrease of 19 basis points when compared to 3.10% for the previous quarter. As discussed above, the net interest margin was negatively impacted by a higher volume of money market and investment securities, lower fees from the cancellation and amortization of PPP loans of approximately $8.8 million, partially offset by a higher amortization of discount on PCD loans. The cost of interest-bearing deposits was 0.18%, down 3 basis points from the 0.21% reported in the previous quarter. Total cost of deposits for the quarter was 0.14%, compared to 0.16% reported in the first quarter of 2021. Net interest income for Popular Bank (“PB”) was $78.7 million for the quarter ended June 30, 2021, compared to $79.2 million during the previous quarter. Net interest margin for the quarter was 3.33% lower than the 3.35% the previous quarter. The cost of interest-bearing deposits was 0.60%, compared to 0.66% in the previous quarter, decreasing for the seventh consecutive quarter. Total cost of deposits for the quarter, including demand deposits, was 0.47%, compared to 0.54% reported in the first quarter of 2021. Non-interest income Non-interest income increased by $0.9 million to $154.6 million for the quarter ended June 30, 2021, compared to $153.7 million for the quarter ended March 31, 2021. The variance in non-interest income was primarily driven by: higher other service fees by $5.8 million, principally at the BPPR segment, due to higher credit card fees by $4.0 million, mainly in interchange income resulting from higher transactional volumes; an increase in net gain on equity securities of $1.1 million mainly related to employee deferred compensation plans that have an offsetting expense on personnel related expenses; a favorable variance in adjustments to indemnity reserves on previously sold loans of $2.4 million mainly due to a reserve release related to loans previously sold with credit recourse; and higher other operating income by $1.1 million mainly due to higher net earnings from the combined portfolio of investments under the equity method by $2.4 million, partially offset by a lower gain on sale of daily auto rental units by $1.4 million; partially offset by: lower income from mortgage banking activities by $9.9 million mainly due to an unfavorable variance in fair value adjustments on mortgage servicing rights (“MSRs”) of $6.8 million due to the negative adjustment in the second quarter mainly related to a reduction in estimated cash flows related to portfolio amortization and higher losses on closed derivative positions by $3.4 million. Refer to Table B for further details. Operating expenses Operating expenses for the second quarter of 2021 totaled $368.2 million, a decrease of $7.3 million from the first quarter of 2021. The variance in operating expenses was driven primarily by: lower personnel cost by $5.3 million due to $6.8 million of lower commission, incentives, and other bonuses, including lower performance shares and restricted stock expenses by $5.5 million, partially offset by higher pension, postretirement and medical insurance by $2.4 million due to higher premiums accruals; lower net occupancy expense by $1.5 million due lower rent and electricity expenses; lower credit and debit card processing, volume, interchange and other expenses by $1.5 million mainly due to transaction volume rebates and incentives; and lower other operating expenses by $4.1 million due to a release of $4.5 million of mortgage servicing reserves related to claims and foreclosed loans, higher gain on sale of assets by $1.8 million and lower subsequent write-down of foreclosed auto units by $1.2 million; partially offset by higher sundry losses by $3.0 million due to higher legal reserves. Partially offset by: higher business promotion expenses by $4.0 million due higher customer reward program expense in our credit card business by $2.5 million and higher advertising expense by $0.8 million. Full-time equivalent employees were 8,439 as of June 30, 2021, compared to 8,469 as of March 31, 2021. For a breakdown of operating expenses by category refer to Table B. Income taxes For the quarter ended June 30, 2021, the Corporation recorded an income tax expense of $73.1 million, compared to $76.8 million for the previous quarter. The decrease in income tax expense was mainly attributable to lower income before tax during the second quarter of 2021, partially offset by higher effective income tax rate in the P.R. operations and an increase in the blended state income tax rate for the U.S. operations during the second quarter of 2021. The effective tax rate (“ETR”) for the second quarter of 2021 was 25%, compared to 23% for the previous quarter. The ETR of the Corporation is impacted by the composition and source of its taxable income. The increase in the ETR rate for the second quarter of 2021 was primarily attributed to higher income at the Puerto Rico marginal tax rate. Credit Quality During the second quarter of 2021, the Corporation continued to exhibit favorable credit quality and low credit costs, outperforming pre-pandemic trends. These improvements have been aided by the significant government stimulus and the rebound in the economy. We will continue to closely monitor COVID-19 related risks and the effects of the receding stimulus on macroeconomic conditions and on borrower performance. However, management believes that the improvement over the last few years in the risk profile of the Corporation’s loan portfolios positions Popular to operate successfully under the current environment. The following presents credit quality results for the second quarter of 2021: At June 30, 2021, total non-performing loans held-in-portfolio decreased by $13.0 million from March 31, 2021. BPPR’s NPLs decreased by $9.2 million, driven by lower mortgage NPLs by $20.1 million, due to lower inflows for the quarter and lower consumer NPLs by $5.1 million, mostly driven by auto loans. This decrease was in part offset by higher commercial NPLs by $16.8 million mostly due to a single $32.4 million inflow, partially offset by the resolution of an $8.8 million relationship. PB’s NPLs decreased by $3.8 million, mostly related to a construction loan transferred to loans-held-for-sale. At June 30, 2021, the ratio of NPLs to total loans held-in-portfolio remained flat at 2.4% when compared to the first quarter of 2021. Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $11.2 million quarter-over-quarter. In BPPR, total inflows increased by $17.0 million, mostly driven by higher commercial inflows of $31.9 million related to the abovementioned $32.4 million relationship. This increase was partly offset by lower mortgage inflows of $15.0 million, mostly due to improvements in early delinquencies. The NPL inflows at PB decreased by $5.8 million during the quarter. NCOs decreased by $22.3 million from the first quarter of 2021 to net recoveries of $1.3 million. BPPR ‘s NCOs decreased by $21.0 million, primarily driven by lower commercial, mortgage and construction NCOs by $8.4 million, $7.4 million and $6.4 million, respectively. The decrease reflected in the commercial NCOs was mostly due to recoveries of $7.9 million related to the resolution of the abovementioned non-performing relationship. During the second quarter of 2021, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was (0.02)%, compared to 0.29% in the first quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios. At June 30, 2021, the allowance for credit losses (“ACL”) decreased by $15.0 million from the first quarter of 2021 to $785.8 million. The ACL incorporated updated economic scenarios for the United States and Puerto Rico, which continued to show a positive outlook of the economy. In BPPR, the ACL decreased by $19.8 million, led by improvements in commercial and mortgage loans. The decrease in the allowance for commercial loans was mainly prompted by the release of a qualitative reserve for the hotel and hospitality portfolio due to the favorable economic environment and improvements in borrower performance. The reduction in the allowance for mortgage loans was led by a combination of improvements in economic scenarios and other assumptions used to estimate the reserve, as well as lower volumes. The allowance for the PB segment increased by $4.8 million. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.70% in the second quarter of 2021, compared to 2.75% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 114.7%, flat from the previous quarter. Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The ACL is estimated by weighting the outputs of optimistic, baseline and pessimistic scenarios. Among the three scenarios used to estimate the ACL, the baseline is assigned the highest probability, followed by the pessimistic scenario given the uncertainties in the economic outlook and downside risk. The current baseline forecast continues to show a favorable economic scenario. The 2021 forecasted GDP growth is now at 6.8% for U.S. and 3.8% for P.R., compared to 4.9% and 3.4%, respectively, in the previous 2021 forecast. The forecasted U.S. unemployment rate average for 2021 is now 5.43%. This is an improvement over the previous estimate of 6.09%. In the case of P.R., the forecasted unemployment rate average for 2021 of 8.43% was slightly higher than the previous forecast of 7.98%. However, unemployment rate levels in P.R. are expected to continue declining through 2022. The P.R. forecasted average unemployment rate for 2022 of 7.25%, is lower than the previous forecast of 7.52%. The provision for credit losses for the loans portfolios for the second quarter of 2021 reflected a benefit of $17.5 million, compared to a benefit of $75.8 million in the previous quarter. The provision for the BPPR segment was a benefit of $22.5 million, an unfavorable variance of $17.5 million compared to the previous quarter, while the provision expense for the PB segment was $5.0 million, an unfavorable variance of $40.8 million from the previous quarter. In the prior quarter, improvements in the economic forecasts prompted substantial reductions in reserves. The provision for unfunded commitments for the second quarter of 2021 reflected an expense of $0.4 million, compared to a benefit of $6.2 million during the previous quarter. The provision for credit losses in our investment portfolio was an expense of $0.1 million, compared to a benefit of $0.2 million in the first quarter of 2021. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations. Non-Performing Assets (Unaudited) (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Non-performing loans held-in-portfolio $685,183 $698,142 $760,204 Non-performing loans held-for-sale 8,700 3,549 6,778 Other real estate owned (“OREO”) 73,272 72,060 113,940 Total non-performing assets $767,155 $773,751 $880,922 Net (recoveries) charge-offs for the quarter $(1,291) $21,030 $64,953 Ratios: Loans held-in-portfolio $29,062,617 $29,131,628 $29,070,553 Non-performing loans held-in-portfolio to loans held-in-portfolio 2.36% 2.40% 2.62% Allowance for credit losses to loans held-in-portfolio 2.70 2.75 3.16 Allowance for credit losses to non-performing loans, excluding loans held-for-sale 114.68 114.70 120.81 Refer to Table K for additional information. Provision for Credit Losses (Benefit) - Loan Portfolios (Unaudited) Quarters ended Six months ended (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 30-Jun-21 30-Jun-20 Provision for credit losses (benefit) - loan portfolios: BPPR $(22,488) $(39,976) $60,423 $(62,464) $173,427 Popular U.S. 4,988 (35,803) 2,681 (30,815) 78,672 Total provision for credit losses (benefit) - loan portfolios $(17,500) $(75,779) $63,104 $(93,279) $252,099 Credit Quality by Segment (Unaudited) (In thousands) Quarters ended BPPR 30-Jun-21 31-Mar-21 30-Jun-20 Provision for credit losses (benefit) - loan portfolios $(22,488) $(39,976) $60,423 Net charge-offs (1,483) 19,474 62,143 Total non-performing loans held-in-portfolio 656,789 665,978 726,603 Allowance / loans held-in-portfolio 3.13% 3.20% 3.53% Quarters ended Popular U.S. 30-Jun-21 31-Mar-21 30-Jun-20 Provision for credit losses (benefit) - loan portfolios $4,988 $(35,803) $2,681 Net charge-offs 192 1,556 2,810 Total non-performing loans held-in-portfolio 28,394 32,164 33,601 Allowance / loans held-in-portfolio 1.57% 1.53% 2.13% Financial Condition Highlights (Unaudited) (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Cash and money market investments $18,333,650 $12,064,592 $10,060,358 Investment securities 22,647,401 23,076,488 21,058,918 Loans 29,062,617 29,131,628 29,070,553 Total assets 72,657,293 66,870,268 62,845,352 Deposits 64,641,776 58,742,801 53,844,300 Borrowings 1,267,545 1,311,064 1,339,339 Total liabilities 66,842,679 60,972,709 57,065,187 Stockholders’ equity 5,814,614 5,897,559 5,780,165 Total assets increased by $5.8 billion from the first quarter of 2021, driven by: an increase of $6.3 billion in cash and money market investments mainly due to an increase in deposits; partially offset by: a decrease of $0.4 billion in debt securities available-for-sale, mainly due to paydowns of agency mortgage-backed securities, partially offset by an increase of $0.1 billion in net unrealized gains in the portfolio and purchases of U.S. treasury securities. Total liabilities increased by $5.9 billion from the first quarter of 2021, mainly due to an increase of $5.9 billion in deposits due to higher Puerto Rico public sector deposits by $4.3 billion and higher retail and commercial demand deposits by $1.5 billion at BPPR. Stockholders’ equity decreased by approximately $82.9 million from the first quarter of 2021, principally due to the impact of the $350.0 million accelerated share repurchase transaction, offset by higher accumulated unrealized gains on debt securities available-for-sale by $73.0 million and net income for the quarter of $218.1 million, less declared dividends of $36.3 million on common stock and $0.4 million in dividends on preferred stock. Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.55%, $71.82 and $63.24, respectively, at June 30, 2021, compared to 17.08%, $69.63 and $61.42 at March 31, 2021. Refer to Table A for capital ratios. Cautionary Note Regarding Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about Popular’s business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings (including as a result of any participation in and execution of government programs related to the COVID-19 pandemic), new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic (including the appearance of new strains of the virus), actions taken by governmental authorities in response thereto, and the direct and indirect impact of the pandemic on Popular, our customers, service providers and third parties. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions, and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, are generally intended to identify forward-looking statements. More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Annual Report on Form 10-K for the year ended December 31, 2020, in our Form 10-Q for the quarter ended March 31, 2021 and in our Form 10-Q for the quarter ended June 30, 2021 to be filed with the Securities and Exchange Commission. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates. About Popular, Inc. Popular, Inc. (NASDAQ: BPOP) is the leading financial institution in Puerto Rico, by both assets and deposits, and ranks among the top 50 U.S. bank holding companies by assets. Founded in 1893, Banco Popular de Puerto Rico, Popular’s principal subsidiary, provides retail, mortgage and commercial banking services in Puerto Rico and the U.S. Virgin Islands. Popular also offers in Puerto Rico auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the mainland United States, Popular provides retail, mortgage and commercial banking services through its New York-chartered banking subsidiary, Popular Bank, which has branches located in New York, New Jersey and Florida. Conference Call Popular will hold a conference call to discuss its financial results today Thursday, July 22, 2021 at 11:00 a.m. Eastern Time. The call will be open to the public and broadcasted live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com. Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through the dial-in telephone number 1-866-235-1201 or 1-412-902-4127. There is no charge to access the call. A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Sunday, August 22, 2021. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10158030. An electronic version of this press release can be found at the Corporation’s website: www.popular.com. Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table A - Selected Ratios and Other Information Table B - Consolidated Statement of Operations Table C - Consolidated Statement of Financial Condition Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE Table F - Mortgage Banking Activities and Other Service Fees Table G - Loans and Deposits Table H - Loan Delinquency - PUERTO RICO OPERATIONS Table I - Loan Delinquency - POPULAR U.S. OPERATIONS Table J - Loan Delinquency - CONSOLIDATED Table K - Non-Performing Assets Table L - Activity in Non-Performing Loans Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios Table N - Allowance for Credit Losses - Loan Portfolios - CONSOLIDATED Table O - Allowance for Credit Losses - Loan Portfolios - PUERTO RICO OPERATIONS Table P - Allowance for Credit Losses - Loan Portfolios - POPULAR U.S. OPERATIONS Table Q - Reconciliation to GAAP Financial Measures POPULAR, INC. Financial Supplement to Second Quarter 2021 Earnings Release Table A - Selected Ratios and Other Information (Unaudited) Quarters ended Six months ended 30-Jun-21 31-Mar-21 30-Jun-20 30-Jun-21 30-Jun-20 Basic EPS $2.67 $3.13 $1.49 $5.80 $1.83 Diluted EPS $2.66 $3.12 $1.49 $5.79 $1.83 Average common shares outstanding 81,609,435 83,899,769 85,135,522 82,748,275 87,962,040 Average common shares outstanding - assuming dilution 81,772,789 84,051,935 85,161,661 82,888,378 88,039,712 Common shares outstanding at end of period 80,656,480 84,379,180 84,184,927 80,656,480 84,184,927 Market value per common share $75.05 $70.32 $37.17 $75.05 $37.17 Market capitalization - (In millions) $6,053 $5,934 $3,129 $6,053 $3,129 Return on average assets 1.24% 1.61% 0.87% 1.42% 0.59% Return on average common equity 15.43% 18.76% 9.74% 17.08% 6.06% Net interest margin (non-taxable equivalent basis) 2.91% 3.07% 3.25% 2.99% 3.58% Net interest margin (taxable equivalent basis) -non-GAAP 3.22% 3.39% 3.56% 3.31% 3.93% Common equity per share $71.82 $69.63 $68.40 $71.82 $68.40 Tangible common book value per common share (non-GAAP) [1] $63.24 $61.42 $60.13 $63.24 $60.13 Tangible common equity to tangible assets (non-GAAP) [1] 7.09% 7.83% 8.15% 7.09% 8.15% Return on average tangible common equity [1] 17.58% 21.37% 11.23% 19.46% 6.97% Tier 1 capital 16.62% 17.15% 15.78% 16.62% 15.78% Total capital 19.09% 19.62% 18.29% 19.09% 18.29% Tier 1 leverage 7.34% 8.06% 8.13% 7.34% 8.13% Common Equity Tier 1 capital 16.55% 17.08% 15.71% 16.55% 15.71% [1] Refer to Table Q for reconciliation to GAAP financial measures. POPULAR, INC. Financial Supplement to Second Quarter 2021 Earnings Release Table B - Consolidated Statement of Operations (Unaudited) Quarters ended Variance Quarter ended Variance Six months ended Q2 2021 Q2 2021 (In thousands, except per share information) 30-Jun-21 31-Mar-21 vs. Q1 2021 30-Jun-20 vs. Q2 2020 30-Jun-21 30-Jun-20 Interest income: Loans $433,781 $434,649 $(868) $429,670 $4,111 $868,430 $880,116 Money market investments 4,274 3,112 1,162 2,015 2,259 7,386 14,015 Investment securities 91,706 85,690 6,016 76,884 14,822 177,396 164,796 Total interest income 529,761 523,451 6,310 508,569 21,192 1,053,212 1,058,927 Interest expense: Deposits 28,060 30,201 (2,141) 42,780 (14,720) 58,261 104,881 Short-term borrowings 62 143 (81) 645 (583) 205 1,693 Long-term debt 13,837 13,995 (158) 14,263 (426) 27,832 28,377 Total interest expense 41,959 44,339 (2,380) 57,688 (15,729) 86,298 134,951 Net interest income 487,802 479,112 8,690 450,881 36,921 966,914 923,976 Provision for credit losses (benefit) (17,015) (82,226) 65,211 62,449 (79,464) (99,241) 252,180 Net interest income after provision for credit losses (benefit) 504,817 561,338 (56,521) 388,432 116,385 1,066,155 671,796 Service charges on deposit accounts 40,153 39,620 533 30,163 9,990 79,773 71,822 Other service fees 76,382 70,628 5,754 52,084 24,298 147,010 116,857 Mortgage banking activities 7,448 17,343 (9,895) 3,777 3,671 24,791 10,197 Net gain (loss), including impairment, on equity securities 1,565 421 1,144 2,447 (882) 1,986 (281) Net (loss) profit on trading account debt securities (47) (45) (2) 82 (129) (92) 573 Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale (73) - (73) 2,222 (2,295) (73) 3,179 Adjustments (expense) to indemnity reserves on loans sold 1,668 (698) 2,366 (1,160) 2,828 970 (5,953) Other operating income 27,444 26,384 1,060 22,440 5,004 53,828 42,304 Total non-interest income 154,540 153,653 887 112,055 42,485 308,193 238,698 Operating expenses: Personnel costs Salaries 90,294 89,335 959 93,969 (3,675) 179,629 186,225 Commissions, incentives and other bonuses 26,374 33,218 (6,844) 16,076 10,298 59,592 41,334 Pension, postretirement and medical insurance 13,289 10,924 2,365 11,392 1,897 24,213 21,030 Other personnel costs, including payroll taxes 24,247 26,002 (1,755) 17,729 6,518 50,249 37,408 Total personnel costs 154,204 159,479 (5,275) 139,166 15,038 313,683 285,997 Net occupancy expenses 24,562 26,013 (1,451) 25,487 (925) 50,575 50,645 Equipment expenses 22,805 21,575 1,230 20,844 1,961 44,380 42,449 Other taxes 13,205 13,959 (754) 13,323 (118) 27,164 27,004 Professional fees Collections, appraisals and other credit related fees 3,486 3,320 166 2,897 589 6,806 6,778 Programming, processing and other technology services 67,152 66,366 786 59,387 7,765 133,518 122,206 Legal fees, excluding collections 2,367 2,365 2 2,184 183 4,732 5,170 Other professional fees 28,148 27,897 251 28,079 69 56,045 59,464 Total professional fees 101,153 99,948 1,205 92,547 8,606 201,101 193,618 Communications 6,005 6,833 (828) 5,574 431 12,838 11,528 Business promotion 16,511 12,521 3,990 12,281 4,230 29,032 26,478 FDIC deposit insurance 5,742 5,968 (226) 5,340 402 11,710 10,420 Other real estate owned (OREO) (income) expenses (4,299) (4,533) 234 (344) (3,955) (8,832) 2,135 Credit and debit card processing, volume, interchange and other expenses 10,917 12,454 (1,537) 9,873 1,044 23,371 20,155 Other operating expenses Operational losses 6,528 7,896 (1,368) 4,128 2,400 14,424 12,502 All other 9,597 12,364 (2,767) 18,217 (8,620) 21,961 33,640 Total other operating expenses 16,125 20,260 (4,135) 22,345 (6,220) 36,385 46,142 Amortization of intangibles 1,255 1,051 204 1,795 (540) 2,306 4,268 Total operating expenses 368,185 375,528 (7,343) 348,231 19,954 743,713 720,839 Income before income tax 291,172 339,463 (48,291) 152,256 138,916 630,635 189,655 Income tax expense 73,093 76,831 (3,738) 24,628 48,465 149,924 27,725 Net income $218,079 $262,632 $(44,553) $127,628 $90,451 $480,711 $161,930 Net income applicable to common stock $217,726 $262,279 $(44,553) $127,275 $90,451 $480,005 $160,877 Net income per common share - basic $2.67 $3.13 $(0.46) $1.49 $1.18 $5.80 $1.83 Net income per common share - diluted $2.66 $3.12 $(0.46) $1.49 $1.17 $5.79 $1.83 Dividends Declared per Common Share $0.45 $0.40 $0.05 $0.40 $0.05 $0.85 $0.80 Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table C - Consolidated Statement of Financial Condition (Unaudited) Variance Q2 2021 vs. (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Q1 2021 Assets: Cash and due from banks $530,849 $495,915 $435,080 $34,934 Money market investments 17,802,801 11,568,677 9,625,278 6,234,124 Trading account debt securities, at fair value 35,931 36,504 33,560 (573) Debt securities available-for-sale, at fair value 22,335,167 22,771,609 20,763,453 (436,442) Debt securities held-to-maturity, at amortized cost 88,801 89,725 95,429 (924) Less: Allowance for credit losses 10,214 10,096 12,735 118 Total debt securities held-to-maturity, net 78,587 79,629 82,694 (1,042) Equity securities 187,502 178,650 166,476 8,852 Loans held-for-sale, at lower of cost or fair value 85,315 84,214 68,725 1,101 Loans held-in-portfolio 29,286,225 29,344,620 29,250,076 (58,395) Less: Unearned income 223,608 212,992 179,523 10,616 Allowance for credit losses 785,790 800,797 918,434 (15,007) Total loans held-in-portfolio, net 28,276,827 28,330,831 28,152,119 (54,004) Premises and equipment, net 486,443 508,023 513,680 (21,580) Other real estate 73,272 72,060 113,940 1,212 Accrued income receivable 203,419 215,993 220,126 (12,574) Mortgage servicing rights, at fair value 119,467 122,543 141,144 (3,076) Other assets 1,750,151 1,713,083 1,833,444 37,068 Goodwill 671,122 671,122 671,122 - Other intangible assets 20,440 21,415 24,511 (975) Total assets $72,657,293 $66,870,268 $62,845,352 $5,787,025 Liabilities and Stockholders’ Equity: Liabilities: Deposits: Non-interest bearing $14,920,887 $14,263,548 $12,520,510 $657,339 Interest bearing 49,720,889 44,479,253 41,323,790 5,241,636 Total deposits 64,641,776 58,742,801 53,844,300 5,898,975 Assets sold under agreements to repurchase 90,925 86,834 153,065 4,091 Notes payable 1,176,620 1,224,230 1,186,274 (47,610) Other liabilities 933,358 918,844 1,881,548 14,514 Total liabilities 66,842,679 60,972,709 57,065,187 5,869,970 Stockholders’ equity: Preferred stock 22,143 22,143 22,143 - Common stock 1,045 1,045 1,044 - Surplus 4,506,659 4,571,919 4,520,333 (65,260) Retained earnings 2,670,885 2,489,453 2,033,782 181,432 Treasury stock (1,290,427) (1,012,263) (1,016,486) (278,164) Accumulated other comprehensive (loss) income, net of tax (95,691) (174,738) 219,349 79,047 Total stockholders’ equity 5,814,614 5,897,559 5,780,165 (82,945) Total liabilities and stockholders’ equity $72,657,293 $66,870,268 $62,845,352 $5,787,025 Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER (Unaudited) Quarters ended Variance 30-Jun-21 31-Mar-21 30-Jun-20 Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 ($ amounts in millions) Average balance Income / Expense Yield / Rate Average balance Income / Expense Yield / Rate Average balance Income / Expense Yield / Rate Average balance Income / Expense Yield / Rate Average balance Income / Expense Yield / Rate Assets: Interest earning assets: Money market, trading and investment securities $38,136 $137.5 1.44 % $33,756 $127.8 1.52 % $27,356 $111.5 1.64 % $4,380 $9.7 (0.08) % $10,780 $26.0 (0.20) % Loans: Commercial 13,539 176.9 5.24 13,624 179.0 5.33 13,350 168.8 5.09 (85) (2.1) (0.09) 189 8.1 0.15 Construction 858 11.6 5.43 911 11.9 5.30 935 13.2 5.69 (53) (0.3) 0.13 (77) (1.6) (0.26) Mortgage 7,765 99.4 5.12 7,869 98.4 5.00 7,038 92.2 5.24 (104) 1.0 0.12 727 7.2 (0.12) Consumer 2,431 68.7 11.34 2,513 70.4 11.36 2,918 82.9 11.43 (82) (1.7) (0.02) (487) (14.2) (0.09) Auto 3,280 70.1 8.58 3,203 68.2 8.63 2,957 66.0 8.98 77 1.9 (0.05) 323 4.1 (0.40) Lease financing 1,262 19.0 6.01 1,215 18.4 6.04 1,082 16.1 5.97 47 0.6 (0.03) 180 2.9 0.04 Total loans 29,135 445.7 6.13 29,335 446.3 6.15 28,280 439.2 6.24 (200) (0.6) (0.02) 855 6.5 (0.11) Total interest earning assets $67,271 $583.2 3.47 % $63,091 $574.1 3.67 % $55,636 $550.7 3.98 % $4,180 $9.1 (0.20) % $11,635 $32.5 (0.51) % Allowance for credit losses - loan portfolio (801) (890) (926) 89 125 Allowance for credit losses - investment securities (10) (10) (13) - 3 Other non-interest earning assets 3,906 3,895 4,100 11 (194) Total average assets $70,366 $66,086 $58,797 $4,280 $11,569 Liabilities and Stockholders' Equity: Interest bearing deposits: NOW and money market $25,102 $8.0 0.13 % $22,674 $8.3 0.15 % $19,392 $11.6 0.24 % $2,428 $(0.3) (0.02) % $5,710 $(3.6) (0.11) % Savings 15,384 6.9 0.18 14,364 7.0 0.20 11,856 10.2 0.35 1,020 (0.1) (0.02) 3,528 (3.3) (0.17) Time deposits 7,104 13.2 0.74 7,265 14.9 0.83 8,730 21.0 0.97 (161) (1.7) (0.09) (1,626) (7.8) (0.23) Total interest-bearing deposits 47,590 28.1 0.24 44,303 30.2 0.28 39,978 42.8 0.43 3,287 (2.1) (0.04) 7,612 (14.7) (0.19) Borrowings 1,316 13.9 4.24 1,344 14.1 4.23 1,336 14.9 4.48 (28) (0.2) 0.01 (20) (1.0) (0.24) Total interest-bearing liabilities 48,906 42.0 0.34 45,647 44.3 0.39 41,314 57.7 0.56 3,259 (2.3) (0.05) 7,592 (15.7) (0.22) Net interest spread 3.13 % 3.28 % 3.42 % (0.15) % (0.29) % Non-interest bearing deposits 14,920 13,394 11,006 1,526 3,914 Other liabilities 857 1,351 1,203 (494) (346) Stockholders' equity 5,683 5,694 5,274 (11) 409 Total average liabilities and stockholders' equity $70,366 $66,086 $58,797 $4,280 $11,569 Net interest income / margin on a taxable equivalent basis (Non-GAAP) $541.2 3.22 % $529.8 3.39 % $493.0 3.56 % $11.4 (0.17) % $48.2 (0.34) % Taxable equivalent adjustment 53.4 50.7 42.1 2.7 11.3 Net interest income / margin non-taxable equivalent basis (GAAP) $487.8 2.91 % $479.1 3.07 % $450.9 3.25 % $8.7 (0.16) % $36.9 (0.34) % Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE (Unaudited) Six months ended 30-Jun-21 30-Jun-20 Variance Average Income / Yield / Average Income / Yield / Average Income / Yield / ($ amounts in millions) balance Expense Rate balance Expense Rate balance Expense Rate Assets: Interest earning assets: Money market, trading and investment securities $35,958 $267.0 1.49 % $24,050 $247.2 2.06 % $11,908 $19.8 (0.57) % Loans: Commercial 13,582 355.9 5.30 12,846 352.0 5.51 736 3.9 (0.21) Construction 884 23.5 5.38 898 26.4 5.91 (14) (2.9) (0.53) Mortgage 7,816 197.8 5.06 7,033 185.4 5.27 783 12.4 (0.21) Consumer 2,472 139.1 11.35 3,014 172.2 11.49 (542) (33.1) (0.14) Auto 3,241 138.3 8.63 2,975 133.8 9.04 266 4.5 (0.41) Lease financing 1,239 37.3 6.02 1,077 32.4 6.02 162 4.9 - Total loans 29,234 891.9 6.15 27,843 902.2 6.51 1,391 (10.3) (0.36) Total interest earning assets $65,192 $1,158.9 3.58 % $51,893 $1,149.4 4.45 % $13,299 $9.5 (0.87) % Allowance for credit losses - loan portfolio (845) (867) 22 Allowance for credit losses - investment securities (10) (13) 3 Other non-interest earning assets 3,900 4,064 (164) Total average assets $68,237 $55,077 $13,160 Liabilities and Stockholders' Equity: Interest bearing deposits: NOW and money market $23,895 $16.2 0.14 % $17,811 $36.8 0.42 % $6,084 ($20.6) (0.28) % Savings 14,876 14.0 0.19 11,290 21.9 0.39 3,586 (7.9) (0.20) Time deposits 7,184 28.1 0.79 8,211 46.1 1.13 (1,027) (18.0) (0.34) Total interest-bearing deposits 45,955 58.3 0.26 37,312 104.8 0.57 8,643 (46.5) (0.31) Borrowings 1,330 28.0 4.24 1,331 30.1 4.53 (1) (2.1) (0.29) Total interest-bearing liabilities 47,285 86.3 0.37 38,643 134.9 0.70 8,642 (48.6) (0.33) Net interest spread 3.21 % 3.75 % (0.54) % Non-interest bearing deposits 14,161 10,004 4,157 Other liabilities 1,103 1,052 51 Stockholders' equity 5,688 5,378 310 Total average liabilities and stockholders' equity $68,237 $55,077 $13,160 Net interest income / margin on a taxable equivalent basis (Non-GAAP) $1,072.6 3.31 % $1,014.5 3.93 % $58.1 (0.62) % Taxable equivalent adjustment 105.7 90.5 15.2 Net interest income / margin non-taxable equivalent basis (GAAP) $966.9 2.99 % $924.0 3.58 % $42.9 (0.59) % Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table F - Mortgage Banking Activities and Other Service Fees (Unaudited) Mortgage Banking Activities Quarters ended Variance Six months ended Variance (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 30-Jun-21 30-Jun-20 2021 vs. 2020 Mortgage servicing fees, net of fair value adjustments: Mortgage servicing fees $9,522 $9,715 $9,058 $(193) $464 $19,237 $20,026 $(789) Mortgage servicing rights fair value adjustments (6,239) 512 (7,640) (6,751) 1,401 (5,727) (12,869) 7,142 Total mortgage servicing fees, net of fair value adjustments 3,283 10,227 1,418 (6,944) 1,865 13,510 7,157 6,353 Net gain on sale of loans, including valuation on loans held-for-sale 5,197 4,975 5,487 222 (290) 10,172 9,473 699 Trading account (loss) profit: Unrealized gains (losses) on outstanding derivative positions - - 1,695 - (1,695) - - - Realized (losses) gains on closed derivative positions (866) 2,502 (4,823) (3,368) 3,957 1,636 (6,433) 8,069 Total trading account (loss) profit (866) 2,502 (3,128) (3,368) 2,262 1,636 (6,433) 8,069 Losses on repurchased loans, including interest advances[1] (166) (361) - 195 (166) (527) - (527) Total mortgage banking activities $7,448 $17,343 $3,777 $(9,895) $3,671 $24,791 $10,197 $14,594 [1]The Corporation, from time to time, repurchases delinquent loans from its GNMA servicing portfolio, in compliance with Guarantor guidelines, and may incur in losses related to previously advanced interest on delinquent loans. Effective for the quarter ended September 30, 2020, the Corporation has determined to present these losses as part of its Mortgage Banking Activities, which were previously presented with the indemnity reserves on loans sold component of non-interest income. The amount of these losses for prior years were considered immaterial for reclassification. Other Service Fees Quarters ended Variance Six months ended Variance (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 30-Jun-21 30-Jun-20 2021 vs. 2020 Other service fees: Debit card fees $12,458 $11,577 $7,082 $881 $5,376 $24,035 $17,319 $6,716 Insurance fees 12,773 12,828 11,301 (55) 1,472 25,601 24,270 1,331 Credit card fees 32,726 28,691 17,762 4,035 14,964 61,417 40,948 20,469 Sale and administration of investment products 5,970 5,540 4,910 430 1,060 11,510 11,173 337 Trust fees 6,165 5,842 5,546 323 619 12,007 10,806 1,201 Other fees 6,290 6,150 5,483 140 807 12,440 12,341 99 Total other service fees $76,382 $70,628 $52,084 $5,754 $24,298 $147,010 $116,857 $30,153 Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table G - Loans and Deposits (Unaudited) Loans - Ending Balances Variance (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 Loans held-in-portfolio: Commercial $13,437,932 $13,442,486 $13,744,579 $(4,554) $(306,647) Construction 865,113 907,736 936,010 (42,623) (70,897) Lease financing 1,297,928 1,244,956 1,098,188 52,972 199,740 Mortgage 7,678,478 7,808,852 7,521,795 (130,374) 156,683 Auto 3,289,027 3,203,137 2,904,324 85,890 384,703 Consumer 2,494,139 2,524,461 2,865,657 (30,322) (371,518) Total loans held-in-portfolio $29,062,617 $29,131,628 $29,070,553 $(69,011) $(7,936) Loans held-for-sale: Commercial $1,700 $3,549 $6,778 $(1,849) $(5,078) Construction 7,000 - - 7,000 7,000 Mortgage 76,615 80,665 61,947 (4,050) 14,668 Total loans held-for-sale $85,315 $84,214 $68,725 $1,101 $16,590 Total loans $29,147,932 $29,215,842 $29,139,278 $(67,910) $8,654 Deposits - Ending Balances Variance (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 Demand deposits [1] $24,497,918 $23,450,312 $22,731,726 $1,047,606 $1,766,192 Savings, NOW and money market deposits (non-brokered) 32,452,829 27,356,136 22,457,951 5,096,693 9,994,878 Savings, NOW and money market deposits (brokered) 683,021 679,832 522,929 3,189 160,092 Time deposits (non-brokered) 6,979,349 7,143,221 7,919,265 (163,872) (939,916) Time deposits (brokered CDs) 28,659 113,300 212,429 (84,641) (183,770) Total deposits $64,641,776 $58,742,801 $53,844,300 $5,898,975 $10,797,476 [1] Includes interest and non-interest bearing demand deposits. Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table H - Loan Delinquency - Puerto Rico Operations (Unaudited) 30-Jun-21 Puerto Rico Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 128 $ - $ 397 $ 525 $ 151,258 $ 151,783 $ 397 $ - Commercial real estate: Non-owner occupied 32,749 - 72,378 105,127 1,888,302 1,993,429 72,378 - Owner occupied 3,995 604 79,808 84,407 1,380,022 1,464,429 79,808 - Commercial and industrial 2,314 682 65,727 68,723 3,952,675 4,021,398 65,120 607 Construction - 3,080 14,877 17,957 124,990 142,947 14,877 - Mortgage 164,779 73,492 995,175 1,233,446 5,281,711 6,515,157 370,653 624,522 Leasing 6,054 2,103 2,286 10,443 1,287,485 1,297,928 2,286 - Consumer: Credit cards 4,371 2,826 8,021 15,218 864,912 880,130 - 8,021 Home equity lines of credit - - - - 3,489 3,489 - - Personal 9,405 4,444 23,861 37,710 1,227,582 1,265,292 23,861 - Auto 39,032 7,405 13,286 59,723 3,229,304 3,289,027 13,286 - Other 214 97 14,288 14,599 108,427 123,026 14,123 165 Total $ 263,041 $ 94,733 $ 1,290,104 $ 1,647,878 $ 19,500,157 $ 21,148,035 $ 656,789 $ 633,315 31-Mar-21 Puerto Rico Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 196 $ - $ 814 $ 1,010 $ 137,097 $ 138,107 $ 814 $ - Commercial real estate: Non-owner occupied 939 25,406 76,524 102,869 1,958,129 2,060,998 76,524 - Owner occupied 6,749 2,114 89,752 98,615 1,413,356 1,511,971 89,752 - Commercial and industrial 3,870 650 34,333 38,853 4,032,359 4,071,212 33,773 560 Construction 639 - 14,877 15,516 145,081 160,597 14,877 - Mortgage 175,930 83,770 1,211,935 1,471,635 5,204,344 6,675,979 390,781 821,154 Leasing 7,564 1,408 3,040 12,012 1,232,944 1,244,956 3,040 - Consumer: Credit cards 4,824 3,883 10,779 19,486 858,255 877,741 - 10,779 Home equity lines of credit - - 46 46 3,498 3,544 - 46 Personal 10,216 6,250 25,731 42,197 1,219,094 1,261,291 25,731 - Auto 47,396 8,783 15,405 71,584 3,131,553 3,203,137 15,405 - Other 360 375 15,489 16,224 108,508 124,732 15,281 208 Total $ 258,683 $ 132,639 $ 1,498,725 $ 1,890,047 $ 19,444,218 $ 21,334,265 $ 665,978 $ 832,747 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ (68) $ - $ (417) $ (485) $ 14,161 $ 13,676 $ (417) $ - Commercial real estate: Non-owner occupied 31,810 (25,406) (4,146) 2,258 (69,827) (67,569) (4,146) - Owner occupied (2,754) (1,510) (9,944) (14,208) (33,334) (47,542) (9,944) - Commercial and industrial (1,556) 32 31,394 29,870 (79,684) (49,814) 31,347 47 Construction (639) 3,080 - 2,441 (20,091) (17,650) - - Mortgage (11,151) (10,278) (216,760) (238,189) 77,367 (160,822) (20,128) (196,632) Leasing (1,510) 695 (754) (1,569) 54,541 52,972 (754) - Consumer: Credit cards (453) (1,057) (2,758) (4,268) 6,657 2,389 - (2,758) Home equity lines of credit - - (46) (46) (9) (55) - (46) Personal (811) (1,806) (1,870) (4,487) 8,488 4,001 (1,870) - Auto (8,364) (1,378) (2,119) (11,861) 97,751 85,890 (2,119) - Other (146) (278) (1,201) (1,625) (81) (1,706) (1,158) (43) Total $ 4,358 $ (37,906) $ (208,621) $ (242,169) $ 55,939 $ (186,230) $ (9,189) $ (199,432) Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table I - Loan Delinquency - Popular U.S. Operations (Unaudited) June 30, 2021 Popular U.S. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ - $ - $ 5,949 $ 5,949 $ 1,733,104 $ 1,739,053 $ 5,949 $ - Commercial real estate: Non-owner occupied - - 374 374 2,131,860 2,132,234 374 - Owner occupied 907 639 193 1,739 338,445 340,184 193 - Commercial and industrial 3,070 509 1,346 4,925 1,590,497 1,595,422 1,346 - Construction - - - - 722,166 722,166 - - Mortgage 2,498 5,005 13,323 20,826 1,142,495 1,163,321 13,323 - Consumer: Credit cards - - - - 31 31 - - Home equity lines of credit 501 210 6,377 7,088 74,850 81,938 6,377 - Personal 572 579 832 1,983 135,014 136,997 832 - Other - - - - 3,236 3,236 - - Total $ 7,548 $ 6,942 $ 28,394 $ 42,884 $ 7,871,698 $ 7,914,582 $ 28,394 $ - March 31, 2021 Popular U.S. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 30,185 $ - $ - $ 30,185 $ 1,724,802 $ 1,754,987 $ - $ - Commercial real estate: Non-owner occupied 8,280 - 392 8,672 2,034,383 2,043,055 392 - Owner occupied 5,437 644 323 6,404 323,541 329,945 323 - Commercial and industrial 7,226 1,321 1,201 9,748 1,522,463 1,532,211 1,192 9 Construction 11,110 - 7,523 18,633 728,506 747,139 7,523 - Mortgage 13,032 1,762 14,793 29,587 1,103,286 1,132,873 14,793 - Consumer: Credit cards - - - - 22 22 - - Home equity lines of credit 121 10 6,855 6,986 82,631 89,617 6,855 - Personal 1,156 666 1,086 2,908 162,540 165,448 1,086 - Other - - - - 2,066 2,066 - - Total $ 76,547 $ 4,403 $ 32,173 $ 113,123 $ 7,684,240 $ 7,797,363 $ 32,164 $ 9 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ (30,185) $ - $ 5,949 $ (24,236) $ 8,302 $ (15,934) $ 5,949 $ - Commercial real estate: Non-owner occupied (8,280) - (18) (8,298) 97,477 89,179 (18) - Owner occupied (4,530) (5) (130) (4,665) 14,904 10,239 (130) - Commercial and industrial (4,156) (812) 145 (4,823) 68,034 63,211 154 (9) Construction (11,110) - (7,523) (18,633) (6,340) (24,973) (7,523) - Mortgage (10,534) 3,243 (1,470) (8,761) 39,209 30,448 (1,470) - Consumer: Credit cards - - - - 9 9 - - Home equity lines of credit 380 200 (478) 102 (7,781) (7,679) (478) - Personal (584) (87) (254) (925) (27,526) (28,451) (254) - Other - - - - 1,170 1,170 - - Total $ (68,999) $ 2,539 $ (3,779) $ (70,239) $ 187,458 $ 117,219 $ (3,770) $ (9) Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table J - Loan Delinquency - Consolidated (Unaudited) 30-Jun-21 Popular, Inc. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 128 $ - $ 6,346 $ 6,474 $ 1,884,362 $ 1,890,836 $ 6,346 $ - Commercial real estate: Non-owner occupied 32,749 - 72,752 105,501 4,020,162 4,125,663 72,752 - Owner occupied 4,902 1,243 80,001 86,146 1,718,467 1,804,613 80,001 - Commercial and industrial 5,384 1,191 67,073 73,648 5,543,172 5,616,820 66,466 607 Construction - 3,080 14,877 17,957 847,156 865,113 14,877 - Mortgage 167,277 78,497 1,008,498 1,254,272 6,424,206 7,678,478 383,976 624,522 Leasing 6,054 2,103 2,286 10,443 1,287,485 1,297,928 2,286 - Consumer: Credit cards 4,371 2,826 8,021 15,218 864,943 880,161 - 8,021 Home equity lines of credit 501 210 6,377 7,088 78,339 85,427 6,377 - Personal 9,977 5,023 24,693 39,693 1,362,596 1,402,289 24,693 - Auto 39,032 7,405 13,286 59,723 3,229,304 3,289,027 13,286 - Other 214 97 14,288 14,599 111,663 126,262 14,123 165 Total $ 270,589 $ 101,675 $ 1,318,498 $ 1,690,762 $ 27,371,855 $ 29,062,617 $ 685,183 $ 633,315 31-Mar-21 Popular, Inc. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 30,381 $ - $ 814 $ 31,195 $ 1,861,899 $ 1,893,094 $ 814 $ - Commercial real estate: Non-owner occupied 9,219 25,406 76,916 111,541 3,992,512 4,104,053 76,916 - Owner occupied 12,186 2,758 90,075 105,019 1,736,897 1,841,916 90,075 - Commercial and industrial 11,096 1,971 35,534 48,601 5,554,822 5,603,423 34,965 569 Construction 11,749 - 22,400 34,149 873,587 907,736 22,400 - Mortgage 188,962 85,532 1,226,728 1,501,222 6,307,630 7,808,852 405,574 821,154 Leasing 7,564 1,408 3,040 12,012 1,232,944 1,244,956 3,040 - Consumer: Credit cards 4,824 3,883 10,779 19,486 858,277 877,763 - 10,779 Home equity lines of credit 121 10 6,901 7,032 86,129 93,161 6,855 46 Personal 11,372 6,916 26,817 45,105 1,381,634 1,426,739 26,817 - Auto 47,396 8,783 15,405 71,584 3,131,553 3,203,137 15,405 - Other 360 375 15,489 16,224 110,574 126,798 15,281 208 Total $ 335,230 $ 137,042 $ 1,530,898 $ 2,003,170 $ 27,128,458 $ 29,131,628 $ 698,142 $ 832,756 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ (30,253) $ - $ 5,532 $ (24,721) $ 22,463 $ (2,258) $ 5,532 $ - Commercial real estate: Non-owner occupied 23,530 (25,406) (4,164) (6,040) 27,650 21,610 (4,164) - Owner occupied (7,284) (1,515) (10,074) (18,873) (18,430) (37,303) (10,074) - Commercial and industrial (5,712) (780) 31,539 25,047 (11,650) 13,397 31,501 38 Construction (11,749) 3,080 (7,523) (16,192) (26,431) (42,623) (7,523) - Mortgage (21,685) (7,035) (218,230) (246,950) 116,576 (130,374) (21,598) (196,632) Leasing (1,510) 695 (754) (1,569) 54,541 52,972 (754) - Consumer: Credit cards (453) (1,057) (2,758) (4,268) 6,666 2,398 - (2,758) Home equity lines of credit 380 200 (524) 56 (7,790) (7,734) (478) (46) Personal (1,395) (1,893) (2,124) (5,412) (19,038) (24,450) (2,124) - Auto (8,364) (1,378) (2,119) (11,861) 97,751 85,890 (2,119) - Other (146) (278) (1,201) (1,625) 1,089 (536) (1,158) (43) Total $ (64,641) $ (35,367) $ (212,400) $ (312,408) $ 243,397 $ (69,011) $ (12,959) $ (199,441) Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table K - Non-Performing Assets (Unaudited) Variance (Dollars in thousands) 30-Jun-21 As a % of loans HIP by category 31-Mar-21 As a % of loans HIP by category 30-Jun-20 As a % of loans HIP by category Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 Non-accrual loans: Commercial $225,565 1.7 % $202,770 1.5 % $263,129 1.9 % $22,795 $(37,564) Construction 14,877 1.7 22,400 2.5 - - (7,523) 14,877 Lease financing 2,286 0.2 3,040 0.2 4,751 0.4 (754) (2,465) Mortgage 383,976 5.0 405,574 5.2 411,406 5.5 (21,598) (27,430) Auto 13,286 0.4 15,405 0.5 22,111 0.8 (2,119) (8,825) Consumer 45,193 1.8 48,953 1.9 58,807 2.1 (3,760) (13,614) Total non-performing loans held-in-portfolio 685,183 2.4 % 698,142 2.4 % 760,204 2.6 % (12,959) (75,021) Non-performing loans held-for-sale [1] 8,700 3,549 6,778 5,151 1,922 Other real estate owned (“OREO”) 73,272 72,060 113,940 1,212 (40,668) Total non-performing assets $767,155 $773,751 $880,922 $(6,596) $(113,767) Accruing loans past due 90 days or more [2] $633,315 $832,756 $878,776 $(199,441) $(245,461) Ratios: Non-performing assets to total assets 1.06 % 1.16 % 1.40 % Non-performing loans held-in-portfolio to loans held-in-portfolio 2.36 2.40 2.62 Allowance for credit losses to loans held-in-portfolio 2.70 2.75 3.16 Allowance for credit losses to non-performing loans, excluding loans held-for-sale 114.68 114.70 120.81 [1] Non-performing loans held-for-sale as of June 30, 2021, were $7 million in construction loans and $2 million commercial loans (March 31, 2021 - $4 million in commercial loans; June 30, 2020 - $7 million in commercial loans). [2] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. The balance of these loans includes $15 million at June 30, 2021, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (March 31, 2021 - $29 million; June 30, 2020 - $522 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on the financial statements of BPPR with an offsetting liability. While the borrowers for our serviced GNMA portfolio benefited from the moratorium, the delinquency status of these loans continued to be reported to GNMA without considering the moratorium. These balances include $363 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2021 (March 31, 2021 - $341 million; June 30, 2020 - $234 million). Furthermore, the Corporation has approximately $56 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (March 31, 2021 - $58 million; June 30, 2020 - $62 million). Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table L - Activity in Non-Performing Loans (Unaudited) Commercial loans held-in-portfolio: Quarter ended Quarter ended 30-Jun-21 31-Mar-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $200,863 $1,907 $202,770 $204,092 $5,988 $210,080 Plus: New non-performing loans 39,657 7,570 47,227 7,724 1,693 9,417 Advances on existing non-performing loans - 1 1 - 6 6 Less: Non-performing loans transferred to OREO (2,346) - (2,346) (3,850) - (3,850) Non-performing loans charged-off (1,515) (624) (2,139) (2,391) (352) (2,743) Loans returned to accrual status / loan collections (18,956) (992) (19,948) (4,712) (3,655) (8,367) Loans transferred to held-for-sale - - - - (1,773) (1,773) Ending balance NPLs $217,703 $7,862 $225,565 $200,863 $1,907 $202,770 Construction loans held-in-portfolio: Quarter ended Quarter ended 30-Jun-21 31-Mar-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $14,877 $7,523 $22,400 $21,497 $7,560 $29,057 Plus: New non-performing loans - - - - 12,141 12,141 Less: Non-performing loans charged-off - (523) (523) (6,620) - (6,620) Loans returned to accrual status / loan collections - - - - (12,178) (12,178) Loans transferred to held-for-sale - (7,000) (7,000) - - - Ending balance NPLs $14,877 $- $14,877 $14,877 $7,523 $22,400 Mortgage loans held-in-portfolio: Quarter ended Quarter ended 30-Jun-21 31-Mar-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $390,781 $14,793 $405,574 $414,343 $14,864 $429,207 Plus: New non-performing loans 43,432 4,774 48,206 58,397 4,323 62,720 Advances on existing non-performing loans - 11 11 - 5 5 Less: Non-performing loans transferred to OREO (8,257) - (8,257) (801) - (801) Non-performing loans charged-off (4,297) - (4,297) (8,722) (1) (8,723) Loans returned to accrual status / loan collections (51,006) (6,255) (57,261) (72,436) (4,398) (76,834) Ending balance NPLs $370,653 $13,323 $383,976 $390,781 $14,793 $405,574 Total non-performing loans held-in-portfolio (excluding consumer): Quarter ended Quarter ended 30-Jun-21 31-Mar-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $606,521 $24,223 $630,744 $639,932 $28,412 $668,344 Plus: New non-performing loans 83,089 12,344 95,433 66,121 18,157 84,278 Advances on existing non-performing loans - 12 12 - 11 11 Less: Non-performing loans transferred to OREO (10,603) - (10,603) (4,651) - (4,651) Non-performing loans charged-off (5,812) (1,147) (6,959) (17,733) (353) (18,086) Loans returned to accrual status / loan collections (69,962) (7,247) (77,209) (77,148) (20,231) (97,379) Loans transferred to held-for-sale - (7,000) (7,000) - (1,773) (1,773) Ending balance NPLs $603,233 $21,185 $624,418 $606,521 $24,223 $630,744 Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios (Unaudited) Quarters ended (Dollars in thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Balance at beginning of period - loans held-in-portfolio $800,797 $896,250 $919,716 Provision for credit losses (benefit) (17,500) (75,779) 63,104 Initial allowance for credit losses - PCD Loans 1,202 1,356 567 784,499 821,827 983,387 Net loans charged-off (recovered): BPPR Commercial (9,877) (1,434) 1,097 Construction (479) 5,917 (195) Lease financing 393 118 3,390 Mortgage 935 8,303 7,554 Consumer 7,545 6,570 50,297 Total BPPR (1,483) 19,474 62,143 Popular U.S. Commercial (413) 16 (784) Construction 93 - - Mortgage (423) (80) (19) Consumer 935 1,620 3,613 Total Popular U.S. 192 1,556 2,810 Total loans charged-off (recovered) - Popular, Inc. (1,291) 21,030 64,953 Balance at end of period - loans held-in-portfolio $785,790 $800,797 $918,434 Balance at beginning of period - unfunded commitments $9,569 $15,851 $4,466 Provision for credit losses (benefit) 367 (6,282) 2,251 Balance at end of period - unfunded commitments [1] $9,936 $9,569 $6,717 POPULAR, INC. Annualized net charge-offs (recoveries) to average loans held-in-portfolio (0.02) % 0.29 % 0.92 % Provision for credit losses (benefit) - loan portfolios to net charge-offs N.M. -360.34 % 97.15 % BPPR Annualized net charge-offs (recoveries) to average loans held-in-portfolio (0.03) % 0.36 % 1.20 % Provision for credit losses (benefit) - loan portfolios to net charge-offs N.M -205.28 % 97.23 % Popular U.S. Annualized net charge-offs to average loans held-in-portfolio 0.01 % 0.08 % 0.15 % Provision for credit losses (benefit) - loan portfolios to net charge-offs N.M. N.M. 95.41 % N.M. - Not meaningful. [1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table N - Allowance for Credit Losses "ACL"- Loan Portfolios - CONSOLIDATED (Unaudited) 30-Jun-21 (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $271,144 $11,256 $182,619 $17,551 $303,220 $785,790 Total loans held-in-portfolio $13,437,932 $865,113 $7,678,478 $1,297,928 $5,783,166 $29,062,617 ACL to loans held-in-portfolio 2.02 % 1.30 % 2.38 % 1.35 % 5.24 % 2.70 % 31-Mar-21 (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $276,219 $9,195 $202,126 $12,687 $300,570 $800,797 Total loans held-in-portfolio $13,442,486 $907,736 $7,808,852 $1,244,956 $5,727,598 $29,131,628 ACL to loans held-in-portfolio 2.05 % 1.01 % 2.59 % 1.02 % 5.25 % 2.75 % Variance (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $(5,075) $2,061 $(19,507) $4,864 $2,650 $(15,007) Total loans held-in-portfolio $(4,554) $(42,623) $(130,374) $52,972 $55,568 $(69,011) Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table O - Allowance for Credit Losses "ACL"- Loan Portfolios - PUERTO RICO OPERATIONS (Unaudited) 30-Jun-21 Puerto Rico (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $186,784 $1,220 $166,808 $17,551 $289,490 $661,853 Loans held-in-portfolio $7,631,039 $142,947 $6,515,157 $1,297,928 $5,560,964 $21,148,035 ACL to loans held-in-portfolio 2.45 % 0.85 % 2.56 % 1.35 % 5.21 % 3.13 % 31-Mar-21 Puerto Rico (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $197,111 $260 $185,805 $12,687 $285,793 $681,656 Loans held-in-portfolio $7,782,288 $160,597 $6,675,979 $1,244,956 $5,470,445 $21,334,265 ACL to loans held-in-portfolio 2.53 % 0.16 % 2.78 % 1.02 % 5.22 % 3.20 % Variance (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $(10,327) $960 $(18,997) $4,864 $3,697 $(19,803) Loans held-in-portfolio $(151,249) $(17,650) $(160,822) $52,972 $90,519 $(186,230) Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table P - Allowance for Credit Losses "ACL"- Loan Portfolios - POPULAR U.S. OPERATIONS (Unaudited) 30-Jun-21 Popular U.S. (In thousands) Commercial Construction Mortgage Consumer Total ACL $84,360 $10,036 $15,811 $13,730 $123,937 Loans held-in-portfolio $5,806,893 $722,166 $1,163,321 $222,202 $7,914,582 ACL to loans held-in-portfolio 1.45 % 1.39 % 1.36 % 6.18 % 1.57 % 31-Mar-21 Popular U.S. (In thousands) Commercial Construction Mortgage Consumer Total ACL $79,108 $8,935 $16,321 $14,777 $119,141 Loans held-in-portfolio $5,660,198 $747,139 $1,132,873 $257,153 $7,797,363 ACL to loans held-in-portfolio 1.40 % 1.20 % 1.44 % 5.75 % 1.53 % Variance (In thousands) Commercial Construction Mortgage Consumer Total ACL $5,252 $1,101 $(510) $(1,047) $4,796 Loans held-in-portfolio $146,695 $(24,973) $30,448 $(34,951) $117,219 Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table Q - Reconciliation to GAAP Financial Measures (Unaudited) (In thousands, except share or per share information) 30-Jun-21 31-Mar-21 30-Jun-20 Total stockholders’ equity $5,814,614 $5,897,559 $5,780,165 Less: Preferred stock (22,143) (22,143) (22,143) Less: Goodwill (671,122) (671,122) (671,122) Less: Other intangibles (20,440) (21,415) (24,511) Total tangible common equity $5,100,909 $5,182,879 $5,062,389 Total assets $72,657,293 $66,870,268 $62,845,352 Less: Goodwill (671,122) (671,122) (671,122) Less: Other intangibles (20,440) (21,415) (24,511) Total tangible assets $71,965,731 $66,177,731 $62,149,719 Tangible common equity to tangible assets 7.09 % 7.83 % 8.15 % Common shares outstanding at end of period 80,656,480 84,379,180 84,184,927 Tangible book value per common share $63.24 $61.42 $60.13 Quarterly average Total stockholders’ equity [1] $5,683,325 $5,693,672 $5,274,071 Less: Preferred Stock (22,143) (22,143) (22,143) Less: Goodwill (671,121) (671,121) (671,121) Less: Other intangibles (21,350) (22,104) (25,497) Total tangible equity $4,968,711 $4,978,304 $4,555,310 Return on average tangible common equity 17.58 % 21.37 % 11.23 % [1] Average balances exclude unrealized gains or losses on debt securities available-for-sale. View source version on businesswire.com: https://www.businesswire.com/news/home/20210722005308/en/Contacts Popular, Inc. Investor Relations: Paul J. Cardillo, 212-417-6721 Investor Relations Officer pcardillo@popular.com or Media Relations: MC González Noguera, 917-804-5253 Executive Vice President and Chief Communications & Public Affairs Officer mc.gonzalez@popular.com
Net income of $218.1 million in Q2 2021, compared to net income of $262.6 million in Q1 2021. Net interest margin of 2.91% in Q2 2021, compared to 3.07% in Q1 2021; net interest margin on a taxable equivalent basis of 3.22% in Q2 2021, compared to 3.39% in Q1 2021. Credit Quality: Non-performing loans held-in-portfolio (“NPLs”) decreased by $13.0 million from Q1 2021; NPLs to loans ratio at 2.4% flat from Q1 2021; Net charge-offs (“NCOs”) was a net recovery of $1.3 million, a favorable variance by $22.3 million from Q1 2021; NCOs at (0.02)% of average loans held-in-portfolio vs. 0.29% in Q1 2021; Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.70% vs. 2.75% in Q1 2021; and ACL to NPLs at 114.7% flat from Q1 2021. Common Equity Tier 1 ratio of 16.55%, Common Equity per Share of $71.82 and Tangible Book Value per Share of $63.24 at June 30, 2021.
Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $218.1 million for the quarter ended June 30, 2021, compared to net income of $262.6 million for the quarter ended March 31, 2021. Ignacio Alvarez, President and Chief Executive Officer, said: “We had another strong quarter with net income of $218 million. These results reflect improving macro-economic conditions and credit quality as well as our diversified sources of revenue. Consumer spending in P.R. has increased and it is reflected in higher revenues from credit and debit card spending. Deposit balances grew by $5.9 billion and excluding forgiveness of PPP loans, we saw a small increase in our period end loans, led by strong auto loan originations in P.R. During the quarter we also continued to return capital to our shareholders, increased our common stock dividend, while maintaining a CET1 ratio of 16.6% at quarter end. While we are extremely pleased with the results for the first half of the year, we remain attentive on how the evolving health situation may impact the economic recovery. We also continued to support the communities we serve. During the quarter we released our annual Corporate Sustainability Report, which summarizes our program, takes into account widely accepted sustainability reporting standards and highlights our commitment, progress and achievements in our efforts to operate as a responsible, ethical and sustainable company.” Significant Events Financial Highlights For the second quarter of 2021, the Corporation recorded net income of $218.1 million, compared to a net income of $262.6 million for the previous quarter. The second quarter’s results include a release of the allowance for credit losses of $17.0 million driven by improving credit quality and the improved macroeconomic outlook. Net Interest income was $487.8 million, an increase of $8.7 million compared to the previous quarter, mainly due to additional funds invested from the increase in deposits. The net interest margin decreased 16 basis points to 2.91%. Total assets grew by $5.8 billion from the previous quarter, reflecting an increase in deposits across various sectors, principally from the Puerto Rico public sector. Capital Actions On May 3, 2021, the Corporation announced that it had entered into an accelerated share repurchase agreement (the “ASR Agreement”) to repurchase an aggregate of $350 million of Popular’s common stock. Under the terms of the ASR Agreement, on May 4, 2021 the Corporation made an initial payment of $350 million and received an initial delivery of 3,785,831 shares of Popular’s Common Stock (the “Initial Shares”). The transaction was accounted for as a treasury stock transaction. Furthermore, as a result of the receipt of the Initial Shares, the Corporation recognized in shareholders’ equity approximately $280 million in treasury stock and $70 million as a reduction in capital surplus. Upon the final settlement of the ASR Agreement, the Corporation expects to further adjust its treasury stock and capital surplus accounts to reflect the final delivery or receipt of cash or shares, which will depend on the volume-weighted average price of the Corporation’s common stock during the term of the ASR Agreement, less a discount. The final settlement of the ASR Agreement is expected to occur no later than the third quarter of 2021. On May 6, 2021, the Corporation’s Board of Directors approved a quarterly cash dividend of $0.45 per share, an increase from the previous $0.40 per share quarterly dividend, on its outstanding common stock. The dividend was paid on July 1, 2021 to shareholders of record at the close of business on May 26, 2021. Earnings Highlights (Unaudited) Quarters ended Six months ended (Dollars in thousands, except per share information) 30-Jun-21 31-Mar-21 30-Jun-20 30-Jun-21 30-Jun-20 Net interest income $487,802 $479,112 $450,881 $966,914 $923,976 Provision for credit losses (benefit) (17,015) (82,226 ) 62,449 (99,241) 252,180 Net interest income after provision for credit losses (benefit) 504,817 561,338 388,432 1,066,155 671,796 Other non-interest income 154,540 153,653 112,055 308,193 238,698 Operating expenses 368,185 375,528 348,231 743,713 720,839 Income before income tax 291,172 339,463 152,256 630,635 189,655 Income tax expense 73,093 76,831 24,628 149,924 27,725 Net income $218,079 $262,632 $127,628 $480,711 $161,930 Net income applicable to common stock $217,726 $262,279 $127,275 $480,005 $160,877 Net income per common share-basic $2.67 $3.13 $1.49 $5.80 $1.83 Net income per common share-diluted $2.66 $3.12 $1.49 $5.79 $1.83 Net interest income on a taxable equivalent basis – Non-GAAP financial measure Net interest income, on a taxable equivalent basis, is presented with its different components in Table D and E for the quarter and six months ended June 30, 2021 and comparable periods. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources. Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies. Net interest income for the quarter ended June 30, 2021 was $487.8 million compared to $479.1 million in the previous quarter, an increase of $8.7 million. The total net impact on net interest income of one more day in the quarter when compared to the first quarter of 2021 is estimated at $3.7 million. Net interest income, on a taxable equivalent basis, for the second quarter of 2021 was $541.2 million, an increase of $11.4 million when compared to $529.8 million in the first quarter of 2021. On a taxable equivalent basis, the total net impact on net interest income of one more day in the quarter when compared to the first quarter of 2021 is estimated at $4.0 million. Net interest margin decreased 16 basis points to 2.91% compared to 3.07% in the previous quarter. The decrease in the net interest margin is due to a higher proportion of money market and investment securities, which carry a low yield, resulting from a higher volume of deposits in the quarter, lower interest and fees related to loans issued under the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”), partially offset by higher discount amortization on purchased credit deteriorated (“PCD”) loans repaid during the quarter and a lower cost of deposits. On a taxable equivalent basis, net interest margin for the second quarter of 2021 was 3.22 % compared to 3.39% in the first quarter of 2021, a decrease of 17 basis points. The main variances in net interest income on a taxable equivalent basis were: Higher interest income from money market investments, trading and investment securities by $9.7 million due to higher volume by $4.4 billion driven by deposit increases across all business lines, mainly government deposits. The taxable equivalent yield on these assets was 1.44%, compared to 1.52% the previous quarter; and Lower interest expense on deposits by $2.1 million resulting from lower deposit cost by 4 basis points driven by a higher volume of low yielding deposits, reduction of costs in several non-maturity deposit products and renewals of time deposits in a lower interest rate environment. These positive variances in deposit costs were partially offset by higher volume of interest-bearing deposits by $3.3 billion. Partially offset by: Lower interest income from loans by $0.6 million mainly due to the following: Lower interest income from commercial loans by $2.1 million resulting from lower SBA PPP interest income and fees of $9.2 million, partially offset by higher interest income by $7.2 million from PCD loans due to the accelerated discount amortization from several repaid loans and interest for one more day in the quarter of $1.9 million; and Auto and lease financing increasing $124 million in average balances resulting an increase in interest income of $2.5 million. The Corporation recognized interest income of $13.9 million related to loans issued under the SBA PPP program, compared to $23.1 million in the previous quarter. These loans carried a yield of approximately 4.45% in this quarter, including the amortization of fees received under the program, compared to 7.21% last quarter. Net interest income for the Banco Popular de Puerto Rico (“BPPR”) segment amounted to $419.2 million for the quarter ended June 30, 2021, compared to $410.3 million in the previous quarter. Net interest margin for the second quarter of 2021 was 2.91%, a decrease of 19 basis points when compared to 3.10% for the previous quarter. As discussed above, the net interest margin was negatively impacted by a higher volume of money market and investment securities, lower fees from the cancellation and amortization of PPP loans of approximately $8.8 million, partially offset by a higher amortization of discount on PCD loans. The cost of interest-bearing deposits was 0.18%, down 3 basis points from the 0.21% reported in the previous quarter. Total cost of deposits for the quarter was 0.14%, compared to 0.16% reported in the first quarter of 2021. Net interest income for Popular Bank (“PB”) was $78.7 million for the quarter ended June 30, 2021, compared to $79.2 million during the previous quarter. Net interest margin for the quarter was 3.33% lower than the 3.35% the previous quarter. The cost of interest-bearing deposits was 0.60%, compared to 0.66% in the previous quarter, decreasing for the seventh consecutive quarter. Total cost of deposits for the quarter, including demand deposits, was 0.47%, compared to 0.54% reported in the first quarter of 2021. Non-interest income Non-interest income increased by $0.9 million to $154.6 million for the quarter ended June 30, 2021, compared to $153.7 million for the quarter ended March 31, 2021. The variance in non-interest income was primarily driven by: higher other service fees by $5.8 million, principally at the BPPR segment, due to higher credit card fees by $4.0 million, mainly in interchange income resulting from higher transactional volumes; an increase in net gain on equity securities of $1.1 million mainly related to employee deferred compensation plans that have an offsetting expense on personnel related expenses; a favorable variance in adjustments to indemnity reserves on previously sold loans of $2.4 million mainly due to a reserve release related to loans previously sold with credit recourse; and higher other operating income by $1.1 million mainly due to higher net earnings from the combined portfolio of investments under the equity method by $2.4 million, partially offset by a lower gain on sale of daily auto rental units by $1.4 million; partially offset by: lower income from mortgage banking activities by $9.9 million mainly due to an unfavorable variance in fair value adjustments on mortgage servicing rights (“MSRs”) of $6.8 million due to the negative adjustment in the second quarter mainly related to a reduction in estimated cash flows related to portfolio amortization and higher losses on closed derivative positions by $3.4 million. Refer to Table B for further details. Operating expenses Operating expenses for the second quarter of 2021 totaled $368.2 million, a decrease of $7.3 million from the first quarter of 2021. The variance in operating expenses was driven primarily by: lower personnel cost by $5.3 million due to $6.8 million of lower commission, incentives, and other bonuses, including lower performance shares and restricted stock expenses by $5.5 million, partially offset by higher pension, postretirement and medical insurance by $2.4 million due to higher premiums accruals; lower net occupancy expense by $1.5 million due lower rent and electricity expenses; lower credit and debit card processing, volume, interchange and other expenses by $1.5 million mainly due to transaction volume rebates and incentives; and lower other operating expenses by $4.1 million due to a release of $4.5 million of mortgage servicing reserves related to claims and foreclosed loans, higher gain on sale of assets by $1.8 million and lower subsequent write-down of foreclosed auto units by $1.2 million; partially offset by higher sundry losses by $3.0 million due to higher legal reserves. Partially offset by: higher business promotion expenses by $4.0 million due higher customer reward program expense in our credit card business by $2.5 million and higher advertising expense by $0.8 million. Full-time equivalent employees were 8,439 as of June 30, 2021, compared to 8,469 as of March 31, 2021. For a breakdown of operating expenses by category refer to Table B. Income taxes For the quarter ended June 30, 2021, the Corporation recorded an income tax expense of $73.1 million, compared to $76.8 million for the previous quarter. The decrease in income tax expense was mainly attributable to lower income before tax during the second quarter of 2021, partially offset by higher effective income tax rate in the P.R. operations and an increase in the blended state income tax rate for the U.S. operations during the second quarter of 2021. The effective tax rate (“ETR”) for the second quarter of 2021 was 25%, compared to 23% for the previous quarter. The ETR of the Corporation is impacted by the composition and source of its taxable income. The increase in the ETR rate for the second quarter of 2021 was primarily attributed to higher income at the Puerto Rico marginal tax rate. Credit Quality During the second quarter of 2021, the Corporation continued to exhibit favorable credit quality and low credit costs, outperforming pre-pandemic trends. These improvements have been aided by the significant government stimulus and the rebound in the economy. We will continue to closely monitor COVID-19 related risks and the effects of the receding stimulus on macroeconomic conditions and on borrower performance. However, management believes that the improvement over the last few years in the risk profile of the Corporation’s loan portfolios positions Popular to operate successfully under the current environment. The following presents credit quality results for the second quarter of 2021: At June 30, 2021, total non-performing loans held-in-portfolio decreased by $13.0 million from March 31, 2021. BPPR’s NPLs decreased by $9.2 million, driven by lower mortgage NPLs by $20.1 million, due to lower inflows for the quarter and lower consumer NPLs by $5.1 million, mostly driven by auto loans. This decrease was in part offset by higher commercial NPLs by $16.8 million mostly due to a single $32.4 million inflow, partially offset by the resolution of an $8.8 million relationship. PB’s NPLs decreased by $3.8 million, mostly related to a construction loan transferred to loans-held-for-sale. At June 30, 2021, the ratio of NPLs to total loans held-in-portfolio remained flat at 2.4% when compared to the first quarter of 2021. Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $11.2 million quarter-over-quarter. In BPPR, total inflows increased by $17.0 million, mostly driven by higher commercial inflows of $31.9 million related to the abovementioned $32.4 million relationship. This increase was partly offset by lower mortgage inflows of $15.0 million, mostly due to improvements in early delinquencies. The NPL inflows at PB decreased by $5.8 million during the quarter. NCOs decreased by $22.3 million from the first quarter of 2021 to net recoveries of $1.3 million. BPPR ‘s NCOs decreased by $21.0 million, primarily driven by lower commercial, mortgage and construction NCOs by $8.4 million, $7.4 million and $6.4 million, respectively. The decrease reflected in the commercial NCOs was mostly due to recoveries of $7.9 million related to the resolution of the abovementioned non-performing relationship. During the second quarter of 2021, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was (0.02)%, compared to 0.29% in the first quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios. At June 30, 2021, the allowance for credit losses (“ACL”) decreased by $15.0 million from the first quarter of 2021 to $785.8 million. The ACL incorporated updated economic scenarios for the United States and Puerto Rico, which continued to show a positive outlook of the economy. In BPPR, the ACL decreased by $19.8 million, led by improvements in commercial and mortgage loans. The decrease in the allowance for commercial loans was mainly prompted by the release of a qualitative reserve for the hotel and hospitality portfolio due to the favorable economic environment and improvements in borrower performance. The reduction in the allowance for mortgage loans was led by a combination of improvements in economic scenarios and other assumptions used to estimate the reserve, as well as lower volumes. The allowance for the PB segment increased by $4.8 million. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.70% in the second quarter of 2021, compared to 2.75% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 114.7%, flat from the previous quarter. Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The ACL is estimated by weighting the outputs of optimistic, baseline and pessimistic scenarios. Among the three scenarios used to estimate the ACL, the baseline is assigned the highest probability, followed by the pessimistic scenario given the uncertainties in the economic outlook and downside risk. The current baseline forecast continues to show a favorable economic scenario. The 2021 forecasted GDP growth is now at 6.8% for U.S. and 3.8% for P.R., compared to 4.9% and 3.4%, respectively, in the previous 2021 forecast. The forecasted U.S. unemployment rate average for 2021 is now 5.43%. This is an improvement over the previous estimate of 6.09%. In the case of P.R., the forecasted unemployment rate average for 2021 of 8.43% was slightly higher than the previous forecast of 7.98%. However, unemployment rate levels in P.R. are expected to continue declining through 2022. The P.R. forecasted average unemployment rate for 2022 of 7.25%, is lower than the previous forecast of 7.52%. The provision for credit losses for the loans portfolios for the second quarter of 2021 reflected a benefit of $17.5 million, compared to a benefit of $75.8 million in the previous quarter. The provision for the BPPR segment was a benefit of $22.5 million, an unfavorable variance of $17.5 million compared to the previous quarter, while the provision expense for the PB segment was $5.0 million, an unfavorable variance of $40.8 million from the previous quarter. In the prior quarter, improvements in the economic forecasts prompted substantial reductions in reserves. The provision for unfunded commitments for the second quarter of 2021 reflected an expense of $0.4 million, compared to a benefit of $6.2 million during the previous quarter. The provision for credit losses in our investment portfolio was an expense of $0.1 million, compared to a benefit of $0.2 million in the first quarter of 2021. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations. Non-Performing Assets (Unaudited) (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Non-performing loans held-in-portfolio $685,183 $698,142 $760,204 Non-performing loans held-for-sale 8,700 3,549 6,778 Other real estate owned (“OREO”) 73,272 72,060 113,940 Total non-performing assets $767,155 $773,751 $880,922 Net (recoveries) charge-offs for the quarter $(1,291) $21,030 $64,953 Ratios: Loans held-in-portfolio $29,062,617 $29,131,628 $29,070,553 Non-performing loans held-in-portfolio to loans held-in-portfolio 2.36% 2.40% 2.62% Allowance for credit losses to loans held-in-portfolio 2.70 2.75 3.16 Allowance for credit losses to non-performing loans, excluding loans held-for-sale 114.68 114.70 120.81 Refer to Table K for additional information. Provision for Credit Losses (Benefit) - Loan Portfolios (Unaudited) Quarters ended Six months ended (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 30-Jun-21 30-Jun-20 Provision for credit losses (benefit) - loan portfolios: BPPR $(22,488) $(39,976) $60,423 $(62,464) $173,427 Popular U.S. 4,988 (35,803) 2,681 (30,815) 78,672 Total provision for credit losses (benefit) - loan portfolios $(17,500) $(75,779) $63,104 $(93,279) $252,099 Credit Quality by Segment (Unaudited) (In thousands) Quarters ended BPPR 30-Jun-21 31-Mar-21 30-Jun-20 Provision for credit losses (benefit) - loan portfolios $(22,488) $(39,976) $60,423 Net charge-offs (1,483) 19,474 62,143 Total non-performing loans held-in-portfolio 656,789 665,978 726,603 Allowance / loans held-in-portfolio 3.13% 3.20% 3.53% Quarters ended Popular U.S. 30-Jun-21 31-Mar-21 30-Jun-20 Provision for credit losses (benefit) - loan portfolios $4,988 $(35,803) $2,681 Net charge-offs 192 1,556 2,810 Total non-performing loans held-in-portfolio 28,394 32,164 33,601 Allowance / loans held-in-portfolio 1.57% 1.53% 2.13% Financial Condition Highlights (Unaudited) (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Cash and money market investments $18,333,650 $12,064,592 $10,060,358 Investment securities 22,647,401 23,076,488 21,058,918 Loans 29,062,617 29,131,628 29,070,553 Total assets 72,657,293 66,870,268 62,845,352 Deposits 64,641,776 58,742,801 53,844,300 Borrowings 1,267,545 1,311,064 1,339,339 Total liabilities 66,842,679 60,972,709 57,065,187 Stockholders’ equity 5,814,614 5,897,559 5,780,165 Total assets increased by $5.8 billion from the first quarter of 2021, driven by: an increase of $6.3 billion in cash and money market investments mainly due to an increase in deposits; partially offset by: a decrease of $0.4 billion in debt securities available-for-sale, mainly due to paydowns of agency mortgage-backed securities, partially offset by an increase of $0.1 billion in net unrealized gains in the portfolio and purchases of U.S. treasury securities. Total liabilities increased by $5.9 billion from the first quarter of 2021, mainly due to an increase of $5.9 billion in deposits due to higher Puerto Rico public sector deposits by $4.3 billion and higher retail and commercial demand deposits by $1.5 billion at BPPR. Stockholders’ equity decreased by approximately $82.9 million from the first quarter of 2021, principally due to the impact of the $350.0 million accelerated share repurchase transaction, offset by higher accumulated unrealized gains on debt securities available-for-sale by $73.0 million and net income for the quarter of $218.1 million, less declared dividends of $36.3 million on common stock and $0.4 million in dividends on preferred stock. Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.55%, $71.82 and $63.24, respectively, at June 30, 2021, compared to 17.08%, $69.63 and $61.42 at March 31, 2021. Refer to Table A for capital ratios. Cautionary Note Regarding Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about Popular’s business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings (including as a result of any participation in and execution of government programs related to the COVID-19 pandemic), new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic (including the appearance of new strains of the virus), actions taken by governmental authorities in response thereto, and the direct and indirect impact of the pandemic on Popular, our customers, service providers and third parties. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions, and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, are generally intended to identify forward-looking statements. More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Annual Report on Form 10-K for the year ended December 31, 2020, in our Form 10-Q for the quarter ended March 31, 2021 and in our Form 10-Q for the quarter ended June 30, 2021 to be filed with the Securities and Exchange Commission. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates. About Popular, Inc. Popular, Inc. (NASDAQ: BPOP) is the leading financial institution in Puerto Rico, by both assets and deposits, and ranks among the top 50 U.S. bank holding companies by assets. Founded in 1893, Banco Popular de Puerto Rico, Popular’s principal subsidiary, provides retail, mortgage and commercial banking services in Puerto Rico and the U.S. Virgin Islands. Popular also offers in Puerto Rico auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the mainland United States, Popular provides retail, mortgage and commercial banking services through its New York-chartered banking subsidiary, Popular Bank, which has branches located in New York, New Jersey and Florida. Conference Call Popular will hold a conference call to discuss its financial results today Thursday, July 22, 2021 at 11:00 a.m. Eastern Time. The call will be open to the public and broadcasted live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com. Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through the dial-in telephone number 1-866-235-1201 or 1-412-902-4127. There is no charge to access the call. A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Sunday, August 22, 2021. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10158030. An electronic version of this press release can be found at the Corporation’s website: www.popular.com. Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table A - Selected Ratios and Other Information Table B - Consolidated Statement of Operations Table C - Consolidated Statement of Financial Condition Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE Table F - Mortgage Banking Activities and Other Service Fees Table G - Loans and Deposits Table H - Loan Delinquency - PUERTO RICO OPERATIONS Table I - Loan Delinquency - POPULAR U.S. OPERATIONS Table J - Loan Delinquency - CONSOLIDATED Table K - Non-Performing Assets Table L - Activity in Non-Performing Loans Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios Table N - Allowance for Credit Losses - Loan Portfolios - CONSOLIDATED Table O - Allowance for Credit Losses - Loan Portfolios - PUERTO RICO OPERATIONS Table P - Allowance for Credit Losses - Loan Portfolios - POPULAR U.S. OPERATIONS Table Q - Reconciliation to GAAP Financial Measures POPULAR, INC. Financial Supplement to Second Quarter 2021 Earnings Release Table A - Selected Ratios and Other Information (Unaudited) Quarters ended Six months ended 30-Jun-21 31-Mar-21 30-Jun-20 30-Jun-21 30-Jun-20 Basic EPS $2.67 $3.13 $1.49 $5.80 $1.83 Diluted EPS $2.66 $3.12 $1.49 $5.79 $1.83 Average common shares outstanding 81,609,435 83,899,769 85,135,522 82,748,275 87,962,040 Average common shares outstanding - assuming dilution 81,772,789 84,051,935 85,161,661 82,888,378 88,039,712 Common shares outstanding at end of period 80,656,480 84,379,180 84,184,927 80,656,480 84,184,927 Market value per common share $75.05 $70.32 $37.17 $75.05 $37.17 Market capitalization - (In millions) $6,053 $5,934 $3,129 $6,053 $3,129 Return on average assets 1.24% 1.61% 0.87% 1.42% 0.59% Return on average common equity 15.43% 18.76% 9.74% 17.08% 6.06% Net interest margin (non-taxable equivalent basis) 2.91% 3.07% 3.25% 2.99% 3.58% Net interest margin (taxable equivalent basis) -non-GAAP 3.22% 3.39% 3.56% 3.31% 3.93% Common equity per share $71.82 $69.63 $68.40 $71.82 $68.40 Tangible common book value per common share (non-GAAP) [1] $63.24 $61.42 $60.13 $63.24 $60.13 Tangible common equity to tangible assets (non-GAAP) [1] 7.09% 7.83% 8.15% 7.09% 8.15% Return on average tangible common equity [1] 17.58% 21.37% 11.23% 19.46% 6.97% Tier 1 capital 16.62% 17.15% 15.78% 16.62% 15.78% Total capital 19.09% 19.62% 18.29% 19.09% 18.29% Tier 1 leverage 7.34% 8.06% 8.13% 7.34% 8.13% Common Equity Tier 1 capital 16.55% 17.08% 15.71% 16.55% 15.71% [1] Refer to Table Q for reconciliation to GAAP financial measures. POPULAR, INC. Financial Supplement to Second Quarter 2021 Earnings Release Table B - Consolidated Statement of Operations (Unaudited) Quarters ended Variance Quarter ended Variance Six months ended Q2 2021 Q2 2021 (In thousands, except per share information) 30-Jun-21 31-Mar-21 vs. Q1 2021 30-Jun-20 vs. Q2 2020 30-Jun-21 30-Jun-20 Interest income: Loans $433,781 $434,649 $(868) $429,670 $4,111 $868,430 $880,116 Money market investments 4,274 3,112 1,162 2,015 2,259 7,386 14,015 Investment securities 91,706 85,690 6,016 76,884 14,822 177,396 164,796 Total interest income 529,761 523,451 6,310 508,569 21,192 1,053,212 1,058,927 Interest expense: Deposits 28,060 30,201 (2,141) 42,780 (14,720) 58,261 104,881 Short-term borrowings 62 143 (81) 645 (583) 205 1,693 Long-term debt 13,837 13,995 (158) 14,263 (426) 27,832 28,377 Total interest expense 41,959 44,339 (2,380) 57,688 (15,729) 86,298 134,951 Net interest income 487,802 479,112 8,690 450,881 36,921 966,914 923,976 Provision for credit losses (benefit) (17,015) (82,226) 65,211 62,449 (79,464) (99,241) 252,180 Net interest income after provision for credit losses (benefit) 504,817 561,338 (56,521) 388,432 116,385 1,066,155 671,796 Service charges on deposit accounts 40,153 39,620 533 30,163 9,990 79,773 71,822 Other service fees 76,382 70,628 5,754 52,084 24,298 147,010 116,857 Mortgage banking activities 7,448 17,343 (9,895) 3,777 3,671 24,791 10,197 Net gain (loss), including impairment, on equity securities 1,565 421 1,144 2,447 (882) 1,986 (281) Net (loss) profit on trading account debt securities (47) (45) (2) 82 (129) (92) 573 Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale (73) - (73) 2,222 (2,295) (73) 3,179 Adjustments (expense) to indemnity reserves on loans sold 1,668 (698) 2,366 (1,160) 2,828 970 (5,953) Other operating income 27,444 26,384 1,060 22,440 5,004 53,828 42,304 Total non-interest income 154,540 153,653 887 112,055 42,485 308,193 238,698 Operating expenses: Personnel costs Salaries 90,294 89,335 959 93,969 (3,675) 179,629 186,225 Commissions, incentives and other bonuses 26,374 33,218 (6,844) 16,076 10,298 59,592 41,334 Pension, postretirement and medical insurance 13,289 10,924 2,365 11,392 1,897 24,213 21,030 Other personnel costs, including payroll taxes 24,247 26,002 (1,755) 17,729 6,518 50,249 37,408 Total personnel costs 154,204 159,479 (5,275) 139,166 15,038 313,683 285,997 Net occupancy expenses 24,562 26,013 (1,451) 25,487 (925) 50,575 50,645 Equipment expenses 22,805 21,575 1,230 20,844 1,961 44,380 42,449 Other taxes 13,205 13,959 (754) 13,323 (118) 27,164 27,004 Professional fees Collections, appraisals and other credit related fees 3,486 3,320 166 2,897 589 6,806 6,778 Programming, processing and other technology services 67,152 66,366 786 59,387 7,765 133,518 122,206 Legal fees, excluding collections 2,367 2,365 2 2,184 183 4,732 5,170 Other professional fees 28,148 27,897 251 28,079 69 56,045 59,464 Total professional fees 101,153 99,948 1,205 92,547 8,606 201,101 193,618 Communications 6,005 6,833 (828) 5,574 431 12,838 11,528 Business promotion 16,511 12,521 3,990 12,281 4,230 29,032 26,478 FDIC deposit insurance 5,742 5,968 (226) 5,340 402 11,710 10,420 Other real estate owned (OREO) (income) expenses (4,299) (4,533) 234 (344) (3,955) (8,832) 2,135 Credit and debit card processing, volume, interchange and other expenses 10,917 12,454 (1,537) 9,873 1,044 23,371 20,155 Other operating expenses Operational losses 6,528 7,896 (1,368) 4,128 2,400 14,424 12,502 All other 9,597 12,364 (2,767) 18,217 (8,620) 21,961 33,640 Total other operating expenses 16,125 20,260 (4,135) 22,345 (6,220) 36,385 46,142 Amortization of intangibles 1,255 1,051 204 1,795 (540) 2,306 4,268 Total operating expenses 368,185 375,528 (7,343) 348,231 19,954 743,713 720,839 Income before income tax 291,172 339,463 (48,291) 152,256 138,916 630,635 189,655 Income tax expense 73,093 76,831 (3,738) 24,628 48,465 149,924 27,725 Net income $218,079 $262,632 $(44,553) $127,628 $90,451 $480,711 $161,930 Net income applicable to common stock $217,726 $262,279 $(44,553) $127,275 $90,451 $480,005 $160,877 Net income per common share - basic $2.67 $3.13 $(0.46) $1.49 $1.18 $5.80 $1.83 Net income per common share - diluted $2.66 $3.12 $(0.46) $1.49 $1.17 $5.79 $1.83 Dividends Declared per Common Share $0.45 $0.40 $0.05 $0.40 $0.05 $0.85 $0.80 Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table C - Consolidated Statement of Financial Condition (Unaudited) Variance Q2 2021 vs. (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Q1 2021 Assets: Cash and due from banks $530,849 $495,915 $435,080 $34,934 Money market investments 17,802,801 11,568,677 9,625,278 6,234,124 Trading account debt securities, at fair value 35,931 36,504 33,560 (573) Debt securities available-for-sale, at fair value 22,335,167 22,771,609 20,763,453 (436,442) Debt securities held-to-maturity, at amortized cost 88,801 89,725 95,429 (924) Less: Allowance for credit losses 10,214 10,096 12,735 118 Total debt securities held-to-maturity, net 78,587 79,629 82,694 (1,042) Equity securities 187,502 178,650 166,476 8,852 Loans held-for-sale, at lower of cost or fair value 85,315 84,214 68,725 1,101 Loans held-in-portfolio 29,286,225 29,344,620 29,250,076 (58,395) Less: Unearned income 223,608 212,992 179,523 10,616 Allowance for credit losses 785,790 800,797 918,434 (15,007) Total loans held-in-portfolio, net 28,276,827 28,330,831 28,152,119 (54,004) Premises and equipment, net 486,443 508,023 513,680 (21,580) Other real estate 73,272 72,060 113,940 1,212 Accrued income receivable 203,419 215,993 220,126 (12,574) Mortgage servicing rights, at fair value 119,467 122,543 141,144 (3,076) Other assets 1,750,151 1,713,083 1,833,444 37,068 Goodwill 671,122 671,122 671,122 - Other intangible assets 20,440 21,415 24,511 (975) Total assets $72,657,293 $66,870,268 $62,845,352 $5,787,025 Liabilities and Stockholders’ Equity: Liabilities: Deposits: Non-interest bearing $14,920,887 $14,263,548 $12,520,510 $657,339 Interest bearing 49,720,889 44,479,253 41,323,790 5,241,636 Total deposits 64,641,776 58,742,801 53,844,300 5,898,975 Assets sold under agreements to repurchase 90,925 86,834 153,065 4,091 Notes payable 1,176,620 1,224,230 1,186,274 (47,610) Other liabilities 933,358 918,844 1,881,548 14,514 Total liabilities 66,842,679 60,972,709 57,065,187 5,869,970 Stockholders’ equity: Preferred stock 22,143 22,143 22,143 - Common stock 1,045 1,045 1,044 - Surplus 4,506,659 4,571,919 4,520,333 (65,260) Retained earnings 2,670,885 2,489,453 2,033,782 181,432 Treasury stock (1,290,427) (1,012,263) (1,016,486) (278,164) Accumulated other comprehensive (loss) income, net of tax (95,691) (174,738) 219,349 79,047 Total stockholders’ equity 5,814,614 5,897,559 5,780,165 (82,945) Total liabilities and stockholders’ equity $72,657,293 $66,870,268 $62,845,352 $5,787,025 Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER (Unaudited) Quarters ended Variance 30-Jun-21 31-Mar-21 30-Jun-20 Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 ($ amounts in millions) Average balance Income / Expense Yield / Rate Average balance Income / Expense Yield / Rate Average balance Income / Expense Yield / Rate Average balance Income / Expense Yield / Rate Average balance Income / Expense Yield / Rate Assets: Interest earning assets: Money market, trading and investment securities $38,136 $137.5 1.44 % $33,756 $127.8 1.52 % $27,356 $111.5 1.64 % $4,380 $9.7 (0.08) % $10,780 $26.0 (0.20) % Loans: Commercial 13,539 176.9 5.24 13,624 179.0 5.33 13,350 168.8 5.09 (85) (2.1) (0.09) 189 8.1 0.15 Construction 858 11.6 5.43 911 11.9 5.30 935 13.2 5.69 (53) (0.3) 0.13 (77) (1.6) (0.26) Mortgage 7,765 99.4 5.12 7,869 98.4 5.00 7,038 92.2 5.24 (104) 1.0 0.12 727 7.2 (0.12) Consumer 2,431 68.7 11.34 2,513 70.4 11.36 2,918 82.9 11.43 (82) (1.7) (0.02) (487) (14.2) (0.09) Auto 3,280 70.1 8.58 3,203 68.2 8.63 2,957 66.0 8.98 77 1.9 (0.05) 323 4.1 (0.40) Lease financing 1,262 19.0 6.01 1,215 18.4 6.04 1,082 16.1 5.97 47 0.6 (0.03) 180 2.9 0.04 Total loans 29,135 445.7 6.13 29,335 446.3 6.15 28,280 439.2 6.24 (200) (0.6) (0.02) 855 6.5 (0.11) Total interest earning assets $67,271 $583.2 3.47 % $63,091 $574.1 3.67 % $55,636 $550.7 3.98 % $4,180 $9.1 (0.20) % $11,635 $32.5 (0.51) % Allowance for credit losses - loan portfolio (801) (890) (926) 89 125 Allowance for credit losses - investment securities (10) (10) (13) - 3 Other non-interest earning assets 3,906 3,895 4,100 11 (194) Total average assets $70,366 $66,086 $58,797 $4,280 $11,569 Liabilities and Stockholders' Equity: Interest bearing deposits: NOW and money market $25,102 $8.0 0.13 % $22,674 $8.3 0.15 % $19,392 $11.6 0.24 % $2,428 $(0.3) (0.02) % $5,710 $(3.6) (0.11) % Savings 15,384 6.9 0.18 14,364 7.0 0.20 11,856 10.2 0.35 1,020 (0.1) (0.02) 3,528 (3.3) (0.17) Time deposits 7,104 13.2 0.74 7,265 14.9 0.83 8,730 21.0 0.97 (161) (1.7) (0.09) (1,626) (7.8) (0.23) Total interest-bearing deposits 47,590 28.1 0.24 44,303 30.2 0.28 39,978 42.8 0.43 3,287 (2.1) (0.04) 7,612 (14.7) (0.19) Borrowings 1,316 13.9 4.24 1,344 14.1 4.23 1,336 14.9 4.48 (28) (0.2) 0.01 (20) (1.0) (0.24) Total interest-bearing liabilities 48,906 42.0 0.34 45,647 44.3 0.39 41,314 57.7 0.56 3,259 (2.3) (0.05) 7,592 (15.7) (0.22) Net interest spread 3.13 % 3.28 % 3.42 % (0.15) % (0.29) % Non-interest bearing deposits 14,920 13,394 11,006 1,526 3,914 Other liabilities 857 1,351 1,203 (494) (346) Stockholders' equity 5,683 5,694 5,274 (11) 409 Total average liabilities and stockholders' equity $70,366 $66,086 $58,797 $4,280 $11,569 Net interest income / margin on a taxable equivalent basis (Non-GAAP) $541.2 3.22 % $529.8 3.39 % $493.0 3.56 % $11.4 (0.17) % $48.2 (0.34) % Taxable equivalent adjustment 53.4 50.7 42.1 2.7 11.3 Net interest income / margin non-taxable equivalent basis (GAAP) $487.8 2.91 % $479.1 3.07 % $450.9 3.25 % $8.7 (0.16) % $36.9 (0.34) % Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE (Unaudited) Six months ended 30-Jun-21 30-Jun-20 Variance Average Income / Yield / Average Income / Yield / Average Income / Yield / ($ amounts in millions) balance Expense Rate balance Expense Rate balance Expense Rate Assets: Interest earning assets: Money market, trading and investment securities $35,958 $267.0 1.49 % $24,050 $247.2 2.06 % $11,908 $19.8 (0.57) % Loans: Commercial 13,582 355.9 5.30 12,846 352.0 5.51 736 3.9 (0.21) Construction 884 23.5 5.38 898 26.4 5.91 (14) (2.9) (0.53) Mortgage 7,816 197.8 5.06 7,033 185.4 5.27 783 12.4 (0.21) Consumer 2,472 139.1 11.35 3,014 172.2 11.49 (542) (33.1) (0.14) Auto 3,241 138.3 8.63 2,975 133.8 9.04 266 4.5 (0.41) Lease financing 1,239 37.3 6.02 1,077 32.4 6.02 162 4.9 - Total loans 29,234 891.9 6.15 27,843 902.2 6.51 1,391 (10.3) (0.36) Total interest earning assets $65,192 $1,158.9 3.58 % $51,893 $1,149.4 4.45 % $13,299 $9.5 (0.87) % Allowance for credit losses - loan portfolio (845) (867) 22 Allowance for credit losses - investment securities (10) (13) 3 Other non-interest earning assets 3,900 4,064 (164) Total average assets $68,237 $55,077 $13,160 Liabilities and Stockholders' Equity: Interest bearing deposits: NOW and money market $23,895 $16.2 0.14 % $17,811 $36.8 0.42 % $6,084 ($20.6) (0.28) % Savings 14,876 14.0 0.19 11,290 21.9 0.39 3,586 (7.9) (0.20) Time deposits 7,184 28.1 0.79 8,211 46.1 1.13 (1,027) (18.0) (0.34) Total interest-bearing deposits 45,955 58.3 0.26 37,312 104.8 0.57 8,643 (46.5) (0.31) Borrowings 1,330 28.0 4.24 1,331 30.1 4.53 (1) (2.1) (0.29) Total interest-bearing liabilities 47,285 86.3 0.37 38,643 134.9 0.70 8,642 (48.6) (0.33) Net interest spread 3.21 % 3.75 % (0.54) % Non-interest bearing deposits 14,161 10,004 4,157 Other liabilities 1,103 1,052 51 Stockholders' equity 5,688 5,378 310 Total average liabilities and stockholders' equity $68,237 $55,077 $13,160 Net interest income / margin on a taxable equivalent basis (Non-GAAP) $1,072.6 3.31 % $1,014.5 3.93 % $58.1 (0.62) % Taxable equivalent adjustment 105.7 90.5 15.2 Net interest income / margin non-taxable equivalent basis (GAAP) $966.9 2.99 % $924.0 3.58 % $42.9 (0.59) % Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table F - Mortgage Banking Activities and Other Service Fees (Unaudited) Mortgage Banking Activities Quarters ended Variance Six months ended Variance (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 30-Jun-21 30-Jun-20 2021 vs. 2020 Mortgage servicing fees, net of fair value adjustments: Mortgage servicing fees $9,522 $9,715 $9,058 $(193) $464 $19,237 $20,026 $(789) Mortgage servicing rights fair value adjustments (6,239) 512 (7,640) (6,751) 1,401 (5,727) (12,869) 7,142 Total mortgage servicing fees, net of fair value adjustments 3,283 10,227 1,418 (6,944) 1,865 13,510 7,157 6,353 Net gain on sale of loans, including valuation on loans held-for-sale 5,197 4,975 5,487 222 (290) 10,172 9,473 699 Trading account (loss) profit: Unrealized gains (losses) on outstanding derivative positions - - 1,695 - (1,695) - - - Realized (losses) gains on closed derivative positions (866) 2,502 (4,823) (3,368) 3,957 1,636 (6,433) 8,069 Total trading account (loss) profit (866) 2,502 (3,128) (3,368) 2,262 1,636 (6,433) 8,069 Losses on repurchased loans, including interest advances[1] (166) (361) - 195 (166) (527) - (527) Total mortgage banking activities $7,448 $17,343 $3,777 $(9,895) $3,671 $24,791 $10,197 $14,594 [1]The Corporation, from time to time, repurchases delinquent loans from its GNMA servicing portfolio, in compliance with Guarantor guidelines, and may incur in losses related to previously advanced interest on delinquent loans. Effective for the quarter ended September 30, 2020, the Corporation has determined to present these losses as part of its Mortgage Banking Activities, which were previously presented with the indemnity reserves on loans sold component of non-interest income. The amount of these losses for prior years were considered immaterial for reclassification. Other Service Fees Quarters ended Variance Six months ended Variance (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 30-Jun-21 30-Jun-20 2021 vs. 2020 Other service fees: Debit card fees $12,458 $11,577 $7,082 $881 $5,376 $24,035 $17,319 $6,716 Insurance fees 12,773 12,828 11,301 (55) 1,472 25,601 24,270 1,331 Credit card fees 32,726 28,691 17,762 4,035 14,964 61,417 40,948 20,469 Sale and administration of investment products 5,970 5,540 4,910 430 1,060 11,510 11,173 337 Trust fees 6,165 5,842 5,546 323 619 12,007 10,806 1,201 Other fees 6,290 6,150 5,483 140 807 12,440 12,341 99 Total other service fees $76,382 $70,628 $52,084 $5,754 $24,298 $147,010 $116,857 $30,153 Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table G - Loans and Deposits (Unaudited) Loans - Ending Balances Variance (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 Loans held-in-portfolio: Commercial $13,437,932 $13,442,486 $13,744,579 $(4,554) $(306,647) Construction 865,113 907,736 936,010 (42,623) (70,897) Lease financing 1,297,928 1,244,956 1,098,188 52,972 199,740 Mortgage 7,678,478 7,808,852 7,521,795 (130,374) 156,683 Auto 3,289,027 3,203,137 2,904,324 85,890 384,703 Consumer 2,494,139 2,524,461 2,865,657 (30,322) (371,518) Total loans held-in-portfolio $29,062,617 $29,131,628 $29,070,553 $(69,011) $(7,936) Loans held-for-sale: Commercial $1,700 $3,549 $6,778 $(1,849) $(5,078) Construction 7,000 - - 7,000 7,000 Mortgage 76,615 80,665 61,947 (4,050) 14,668 Total loans held-for-sale $85,315 $84,214 $68,725 $1,101 $16,590 Total loans $29,147,932 $29,215,842 $29,139,278 $(67,910) $8,654 Deposits - Ending Balances Variance (In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 Demand deposits [1] $24,497,918 $23,450,312 $22,731,726 $1,047,606 $1,766,192 Savings, NOW and money market deposits (non-brokered) 32,452,829 27,356,136 22,457,951 5,096,693 9,994,878 Savings, NOW and money market deposits (brokered) 683,021 679,832 522,929 3,189 160,092 Time deposits (non-brokered) 6,979,349 7,143,221 7,919,265 (163,872) (939,916) Time deposits (brokered CDs) 28,659 113,300 212,429 (84,641) (183,770) Total deposits $64,641,776 $58,742,801 $53,844,300 $5,898,975 $10,797,476 [1] Includes interest and non-interest bearing demand deposits. Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table H - Loan Delinquency - Puerto Rico Operations (Unaudited) 30-Jun-21 Puerto Rico Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 128 $ - $ 397 $ 525 $ 151,258 $ 151,783 $ 397 $ - Commercial real estate: Non-owner occupied 32,749 - 72,378 105,127 1,888,302 1,993,429 72,378 - Owner occupied 3,995 604 79,808 84,407 1,380,022 1,464,429 79,808 - Commercial and industrial 2,314 682 65,727 68,723 3,952,675 4,021,398 65,120 607 Construction - 3,080 14,877 17,957 124,990 142,947 14,877 - Mortgage 164,779 73,492 995,175 1,233,446 5,281,711 6,515,157 370,653 624,522 Leasing 6,054 2,103 2,286 10,443 1,287,485 1,297,928 2,286 - Consumer: Credit cards 4,371 2,826 8,021 15,218 864,912 880,130 - 8,021 Home equity lines of credit - - - - 3,489 3,489 - - Personal 9,405 4,444 23,861 37,710 1,227,582 1,265,292 23,861 - Auto 39,032 7,405 13,286 59,723 3,229,304 3,289,027 13,286 - Other 214 97 14,288 14,599 108,427 123,026 14,123 165 Total $ 263,041 $ 94,733 $ 1,290,104 $ 1,647,878 $ 19,500,157 $ 21,148,035 $ 656,789 $ 633,315 31-Mar-21 Puerto Rico Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 196 $ - $ 814 $ 1,010 $ 137,097 $ 138,107 $ 814 $ - Commercial real estate: Non-owner occupied 939 25,406 76,524 102,869 1,958,129 2,060,998 76,524 - Owner occupied 6,749 2,114 89,752 98,615 1,413,356 1,511,971 89,752 - Commercial and industrial 3,870 650 34,333 38,853 4,032,359 4,071,212 33,773 560 Construction 639 - 14,877 15,516 145,081 160,597 14,877 - Mortgage 175,930 83,770 1,211,935 1,471,635 5,204,344 6,675,979 390,781 821,154 Leasing 7,564 1,408 3,040 12,012 1,232,944 1,244,956 3,040 - Consumer: Credit cards 4,824 3,883 10,779 19,486 858,255 877,741 - 10,779 Home equity lines of credit - - 46 46 3,498 3,544 - 46 Personal 10,216 6,250 25,731 42,197 1,219,094 1,261,291 25,731 - Auto 47,396 8,783 15,405 71,584 3,131,553 3,203,137 15,405 - Other 360 375 15,489 16,224 108,508 124,732 15,281 208 Total $ 258,683 $ 132,639 $ 1,498,725 $ 1,890,047 $ 19,444,218 $ 21,334,265 $ 665,978 $ 832,747 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ (68) $ - $ (417) $ (485) $ 14,161 $ 13,676 $ (417) $ - Commercial real estate: Non-owner occupied 31,810 (25,406) (4,146) 2,258 (69,827) (67,569) (4,146) - Owner occupied (2,754) (1,510) (9,944) (14,208) (33,334) (47,542) (9,944) - Commercial and industrial (1,556) 32 31,394 29,870 (79,684) (49,814) 31,347 47 Construction (639) 3,080 - 2,441 (20,091) (17,650) - - Mortgage (11,151) (10,278) (216,760) (238,189) 77,367 (160,822) (20,128) (196,632) Leasing (1,510) 695 (754) (1,569) 54,541 52,972 (754) - Consumer: Credit cards (453) (1,057) (2,758) (4,268) 6,657 2,389 - (2,758) Home equity lines of credit - - (46) (46) (9) (55) - (46) Personal (811) (1,806) (1,870) (4,487) 8,488 4,001 (1,870) - Auto (8,364) (1,378) (2,119) (11,861) 97,751 85,890 (2,119) - Other (146) (278) (1,201) (1,625) (81) (1,706) (1,158) (43) Total $ 4,358 $ (37,906) $ (208,621) $ (242,169) $ 55,939 $ (186,230) $ (9,189) $ (199,432) Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table I - Loan Delinquency - Popular U.S. Operations (Unaudited) June 30, 2021 Popular U.S. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ - $ - $ 5,949 $ 5,949 $ 1,733,104 $ 1,739,053 $ 5,949 $ - Commercial real estate: Non-owner occupied - - 374 374 2,131,860 2,132,234 374 - Owner occupied 907 639 193 1,739 338,445 340,184 193 - Commercial and industrial 3,070 509 1,346 4,925 1,590,497 1,595,422 1,346 - Construction - - - - 722,166 722,166 - - Mortgage 2,498 5,005 13,323 20,826 1,142,495 1,163,321 13,323 - Consumer: Credit cards - - - - 31 31 - - Home equity lines of credit 501 210 6,377 7,088 74,850 81,938 6,377 - Personal 572 579 832 1,983 135,014 136,997 832 - Other - - - - 3,236 3,236 - - Total $ 7,548 $ 6,942 $ 28,394 $ 42,884 $ 7,871,698 $ 7,914,582 $ 28,394 $ - March 31, 2021 Popular U.S. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 30,185 $ - $ - $ 30,185 $ 1,724,802 $ 1,754,987 $ - $ - Commercial real estate: Non-owner occupied 8,280 - 392 8,672 2,034,383 2,043,055 392 - Owner occupied 5,437 644 323 6,404 323,541 329,945 323 - Commercial and industrial 7,226 1,321 1,201 9,748 1,522,463 1,532,211 1,192 9 Construction 11,110 - 7,523 18,633 728,506 747,139 7,523 - Mortgage 13,032 1,762 14,793 29,587 1,103,286 1,132,873 14,793 - Consumer: Credit cards - - - - 22 22 - - Home equity lines of credit 121 10 6,855 6,986 82,631 89,617 6,855 - Personal 1,156 666 1,086 2,908 162,540 165,448 1,086 - Other - - - - 2,066 2,066 - - Total $ 76,547 $ 4,403 $ 32,173 $ 113,123 $ 7,684,240 $ 7,797,363 $ 32,164 $ 9 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ (30,185) $ - $ 5,949 $ (24,236) $ 8,302 $ (15,934) $ 5,949 $ - Commercial real estate: Non-owner occupied (8,280) - (18) (8,298) 97,477 89,179 (18) - Owner occupied (4,530) (5) (130) (4,665) 14,904 10,239 (130) - Commercial and industrial (4,156) (812) 145 (4,823) 68,034 63,211 154 (9) Construction (11,110) - (7,523) (18,633) (6,340) (24,973) (7,523) - Mortgage (10,534) 3,243 (1,470) (8,761) 39,209 30,448 (1,470) - Consumer: Credit cards - - - - 9 9 - - Home equity lines of credit 380 200 (478) 102 (7,781) (7,679) (478) - Personal (584) (87) (254) (925) (27,526) (28,451) (254) - Other - - - - 1,170 1,170 - - Total $ (68,999) $ 2,539 $ (3,779) $ (70,239) $ 187,458 $ 117,219 $ (3,770) $ (9) Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table J - Loan Delinquency - Consolidated (Unaudited) 30-Jun-21 Popular, Inc. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 128 $ - $ 6,346 $ 6,474 $ 1,884,362 $ 1,890,836 $ 6,346 $ - Commercial real estate: Non-owner occupied 32,749 - 72,752 105,501 4,020,162 4,125,663 72,752 - Owner occupied 4,902 1,243 80,001 86,146 1,718,467 1,804,613 80,001 - Commercial and industrial 5,384 1,191 67,073 73,648 5,543,172 5,616,820 66,466 607 Construction - 3,080 14,877 17,957 847,156 865,113 14,877 - Mortgage 167,277 78,497 1,008,498 1,254,272 6,424,206 7,678,478 383,976 624,522 Leasing 6,054 2,103 2,286 10,443 1,287,485 1,297,928 2,286 - Consumer: Credit cards 4,371 2,826 8,021 15,218 864,943 880,161 - 8,021 Home equity lines of credit 501 210 6,377 7,088 78,339 85,427 6,377 - Personal 9,977 5,023 24,693 39,693 1,362,596 1,402,289 24,693 - Auto 39,032 7,405 13,286 59,723 3,229,304 3,289,027 13,286 - Other 214 97 14,288 14,599 111,663 126,262 14,123 165 Total $ 270,589 $ 101,675 $ 1,318,498 $ 1,690,762 $ 27,371,855 $ 29,062,617 $ 685,183 $ 633,315 31-Mar-21 Popular, Inc. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 30,381 $ - $ 814 $ 31,195 $ 1,861,899 $ 1,893,094 $ 814 $ - Commercial real estate: Non-owner occupied 9,219 25,406 76,916 111,541 3,992,512 4,104,053 76,916 - Owner occupied 12,186 2,758 90,075 105,019 1,736,897 1,841,916 90,075 - Commercial and industrial 11,096 1,971 35,534 48,601 5,554,822 5,603,423 34,965 569 Construction 11,749 - 22,400 34,149 873,587 907,736 22,400 - Mortgage 188,962 85,532 1,226,728 1,501,222 6,307,630 7,808,852 405,574 821,154 Leasing 7,564 1,408 3,040 12,012 1,232,944 1,244,956 3,040 - Consumer: Credit cards 4,824 3,883 10,779 19,486 858,277 877,763 - 10,779 Home equity lines of credit 121 10 6,901 7,032 86,129 93,161 6,855 46 Personal 11,372 6,916 26,817 45,105 1,381,634 1,426,739 26,817 - Auto 47,396 8,783 15,405 71,584 3,131,553 3,203,137 15,405 - Other 360 375 15,489 16,224 110,574 126,798 15,281 208 Total $ 335,230 $ 137,042 $ 1,530,898 $ 2,003,170 $ 27,128,458 $ 29,131,628 $ 698,142 $ 832,756 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ (30,253) $ - $ 5,532 $ (24,721) $ 22,463 $ (2,258) $ 5,532 $ - Commercial real estate: Non-owner occupied 23,530 (25,406) (4,164) (6,040) 27,650 21,610 (4,164) - Owner occupied (7,284) (1,515) (10,074) (18,873) (18,430) (37,303) (10,074) - Commercial and industrial (5,712) (780) 31,539 25,047 (11,650) 13,397 31,501 38 Construction (11,749) 3,080 (7,523) (16,192) (26,431) (42,623) (7,523) - Mortgage (21,685) (7,035) (218,230) (246,950) 116,576 (130,374) (21,598) (196,632) Leasing (1,510) 695 (754) (1,569) 54,541 52,972 (754) - Consumer: Credit cards (453) (1,057) (2,758) (4,268) 6,666 2,398 - (2,758) Home equity lines of credit 380 200 (524) 56 (7,790) (7,734) (478) (46) Personal (1,395) (1,893) (2,124) (5,412) (19,038) (24,450) (2,124) - Auto (8,364) (1,378) (2,119) (11,861) 97,751 85,890 (2,119) - Other (146) (278) (1,201) (1,625) 1,089 (536) (1,158) (43) Total $ (64,641) $ (35,367) $ (212,400) $ (312,408) $ 243,397 $ (69,011) $ (12,959) $ (199,441) Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table K - Non-Performing Assets (Unaudited) Variance (Dollars in thousands) 30-Jun-21 As a % of loans HIP by category 31-Mar-21 As a % of loans HIP by category 30-Jun-20 As a % of loans HIP by category Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020 Non-accrual loans: Commercial $225,565 1.7 % $202,770 1.5 % $263,129 1.9 % $22,795 $(37,564) Construction 14,877 1.7 22,400 2.5 - - (7,523) 14,877 Lease financing 2,286 0.2 3,040 0.2 4,751 0.4 (754) (2,465) Mortgage 383,976 5.0 405,574 5.2 411,406 5.5 (21,598) (27,430) Auto 13,286 0.4 15,405 0.5 22,111 0.8 (2,119) (8,825) Consumer 45,193 1.8 48,953 1.9 58,807 2.1 (3,760) (13,614) Total non-performing loans held-in-portfolio 685,183 2.4 % 698,142 2.4 % 760,204 2.6 % (12,959) (75,021) Non-performing loans held-for-sale [1] 8,700 3,549 6,778 5,151 1,922 Other real estate owned (“OREO”) 73,272 72,060 113,940 1,212 (40,668) Total non-performing assets $767,155 $773,751 $880,922 $(6,596) $(113,767) Accruing loans past due 90 days or more [2] $633,315 $832,756 $878,776 $(199,441) $(245,461) Ratios: Non-performing assets to total assets 1.06 % 1.16 % 1.40 % Non-performing loans held-in-portfolio to loans held-in-portfolio 2.36 2.40 2.62 Allowance for credit losses to loans held-in-portfolio 2.70 2.75 3.16 Allowance for credit losses to non-performing loans, excluding loans held-for-sale 114.68 114.70 120.81 [1] Non-performing loans held-for-sale as of June 30, 2021, were $7 million in construction loans and $2 million commercial loans (March 31, 2021 - $4 million in commercial loans; June 30, 2020 - $7 million in commercial loans). [2] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. The balance of these loans includes $15 million at June 30, 2021, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (March 31, 2021 - $29 million; June 30, 2020 - $522 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on the financial statements of BPPR with an offsetting liability. While the borrowers for our serviced GNMA portfolio benefited from the moratorium, the delinquency status of these loans continued to be reported to GNMA without considering the moratorium. These balances include $363 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2021 (March 31, 2021 - $341 million; June 30, 2020 - $234 million). Furthermore, the Corporation has approximately $56 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (March 31, 2021 - $58 million; June 30, 2020 - $62 million). Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table L - Activity in Non-Performing Loans (Unaudited) Commercial loans held-in-portfolio: Quarter ended Quarter ended 30-Jun-21 31-Mar-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $200,863 $1,907 $202,770 $204,092 $5,988 $210,080 Plus: New non-performing loans 39,657 7,570 47,227 7,724 1,693 9,417 Advances on existing non-performing loans - 1 1 - 6 6 Less: Non-performing loans transferred to OREO (2,346) - (2,346) (3,850) - (3,850) Non-performing loans charged-off (1,515) (624) (2,139) (2,391) (352) (2,743) Loans returned to accrual status / loan collections (18,956) (992) (19,948) (4,712) (3,655) (8,367) Loans transferred to held-for-sale - - - - (1,773) (1,773) Ending balance NPLs $217,703 $7,862 $225,565 $200,863 $1,907 $202,770 Construction loans held-in-portfolio: Quarter ended Quarter ended 30-Jun-21 31-Mar-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $14,877 $7,523 $22,400 $21,497 $7,560 $29,057 Plus: New non-performing loans - - - - 12,141 12,141 Less: Non-performing loans charged-off - (523) (523) (6,620) - (6,620) Loans returned to accrual status / loan collections - - - - (12,178) (12,178) Loans transferred to held-for-sale - (7,000) (7,000) - - - Ending balance NPLs $14,877 $- $14,877 $14,877 $7,523 $22,400 Mortgage loans held-in-portfolio: Quarter ended Quarter ended 30-Jun-21 31-Mar-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $390,781 $14,793 $405,574 $414,343 $14,864 $429,207 Plus: New non-performing loans 43,432 4,774 48,206 58,397 4,323 62,720 Advances on existing non-performing loans - 11 11 - 5 5 Less: Non-performing loans transferred to OREO (8,257) - (8,257) (801) - (801) Non-performing loans charged-off (4,297) - (4,297) (8,722) (1) (8,723) Loans returned to accrual status / loan collections (51,006) (6,255) (57,261) (72,436) (4,398) (76,834) Ending balance NPLs $370,653 $13,323 $383,976 $390,781 $14,793 $405,574 Total non-performing loans held-in-portfolio (excluding consumer): Quarter ended Quarter ended 30-Jun-21 31-Mar-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $606,521 $24,223 $630,744 $639,932 $28,412 $668,344 Plus: New non-performing loans 83,089 12,344 95,433 66,121 18,157 84,278 Advances on existing non-performing loans - 12 12 - 11 11 Less: Non-performing loans transferred to OREO (10,603) - (10,603) (4,651) - (4,651) Non-performing loans charged-off (5,812) (1,147) (6,959) (17,733) (353) (18,086) Loans returned to accrual status / loan collections (69,962) (7,247) (77,209) (77,148) (20,231) (97,379) Loans transferred to held-for-sale - (7,000) (7,000) - (1,773) (1,773) Ending balance NPLs $603,233 $21,185 $624,418 $606,521 $24,223 $630,744 Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios (Unaudited) Quarters ended (Dollars in thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Balance at beginning of period - loans held-in-portfolio $800,797 $896,250 $919,716 Provision for credit losses (benefit) (17,500) (75,779) 63,104 Initial allowance for credit losses - PCD Loans 1,202 1,356 567 784,499 821,827 983,387 Net loans charged-off (recovered): BPPR Commercial (9,877) (1,434) 1,097 Construction (479) 5,917 (195) Lease financing 393 118 3,390 Mortgage 935 8,303 7,554 Consumer 7,545 6,570 50,297 Total BPPR (1,483) 19,474 62,143 Popular U.S. Commercial (413) 16 (784) Construction 93 - - Mortgage (423) (80) (19) Consumer 935 1,620 3,613 Total Popular U.S. 192 1,556 2,810 Total loans charged-off (recovered) - Popular, Inc. (1,291) 21,030 64,953 Balance at end of period - loans held-in-portfolio $785,790 $800,797 $918,434 Balance at beginning of period - unfunded commitments $9,569 $15,851 $4,466 Provision for credit losses (benefit) 367 (6,282) 2,251 Balance at end of period - unfunded commitments [1] $9,936 $9,569 $6,717 POPULAR, INC. Annualized net charge-offs (recoveries) to average loans held-in-portfolio (0.02) % 0.29 % 0.92 % Provision for credit losses (benefit) - loan portfolios to net charge-offs N.M. -360.34 % 97.15 % BPPR Annualized net charge-offs (recoveries) to average loans held-in-portfolio (0.03) % 0.36 % 1.20 % Provision for credit losses (benefit) - loan portfolios to net charge-offs N.M -205.28 % 97.23 % Popular U.S. Annualized net charge-offs to average loans held-in-portfolio 0.01 % 0.08 % 0.15 % Provision for credit losses (benefit) - loan portfolios to net charge-offs N.M. N.M. 95.41 % N.M. - Not meaningful. [1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table N - Allowance for Credit Losses "ACL"- Loan Portfolios - CONSOLIDATED (Unaudited) 30-Jun-21 (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $271,144 $11,256 $182,619 $17,551 $303,220 $785,790 Total loans held-in-portfolio $13,437,932 $865,113 $7,678,478 $1,297,928 $5,783,166 $29,062,617 ACL to loans held-in-portfolio 2.02 % 1.30 % 2.38 % 1.35 % 5.24 % 2.70 % 31-Mar-21 (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $276,219 $9,195 $202,126 $12,687 $300,570 $800,797 Total loans held-in-portfolio $13,442,486 $907,736 $7,808,852 $1,244,956 $5,727,598 $29,131,628 ACL to loans held-in-portfolio 2.05 % 1.01 % 2.59 % 1.02 % 5.25 % 2.75 % Variance (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $(5,075) $2,061 $(19,507) $4,864 $2,650 $(15,007) Total loans held-in-portfolio $(4,554) $(42,623) $(130,374) $52,972 $55,568 $(69,011) Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table O - Allowance for Credit Losses "ACL"- Loan Portfolios - PUERTO RICO OPERATIONS (Unaudited) 30-Jun-21 Puerto Rico (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $186,784 $1,220 $166,808 $17,551 $289,490 $661,853 Loans held-in-portfolio $7,631,039 $142,947 $6,515,157 $1,297,928 $5,560,964 $21,148,035 ACL to loans held-in-portfolio 2.45 % 0.85 % 2.56 % 1.35 % 5.21 % 3.13 % 31-Mar-21 Puerto Rico (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $197,111 $260 $185,805 $12,687 $285,793 $681,656 Loans held-in-portfolio $7,782,288 $160,597 $6,675,979 $1,244,956 $5,470,445 $21,334,265 ACL to loans held-in-portfolio 2.53 % 0.16 % 2.78 % 1.02 % 5.22 % 3.20 % Variance (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $(10,327) $960 $(18,997) $4,864 $3,697 $(19,803) Loans held-in-portfolio $(151,249) $(17,650) $(160,822) $52,972 $90,519 $(186,230) Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table P - Allowance for Credit Losses "ACL"- Loan Portfolios - POPULAR U.S. OPERATIONS (Unaudited) 30-Jun-21 Popular U.S. (In thousands) Commercial Construction Mortgage Consumer Total ACL $84,360 $10,036 $15,811 $13,730 $123,937 Loans held-in-portfolio $5,806,893 $722,166 $1,163,321 $222,202 $7,914,582 ACL to loans held-in-portfolio 1.45 % 1.39 % 1.36 % 6.18 % 1.57 % 31-Mar-21 Popular U.S. (In thousands) Commercial Construction Mortgage Consumer Total ACL $79,108 $8,935 $16,321 $14,777 $119,141 Loans held-in-portfolio $5,660,198 $747,139 $1,132,873 $257,153 $7,797,363 ACL to loans held-in-portfolio 1.40 % 1.20 % 1.44 % 5.75 % 1.53 % Variance (In thousands) Commercial Construction Mortgage Consumer Total ACL $5,252 $1,101 $(510) $(1,047) $4,796 Loans held-in-portfolio $146,695 $(24,973) $30,448 $(34,951) $117,219 Popular, Inc. Financial Supplement to Second Quarter 2021 Earnings Release Table Q - Reconciliation to GAAP Financial Measures (Unaudited) (In thousands, except share or per share information) 30-Jun-21 31-Mar-21 30-Jun-20 Total stockholders’ equity $5,814,614 $5,897,559 $5,780,165 Less: Preferred stock (22,143) (22,143) (22,143) Less: Goodwill (671,122) (671,122) (671,122) Less: Other intangibles (20,440) (21,415) (24,511) Total tangible common equity $5,100,909 $5,182,879 $5,062,389 Total assets $72,657,293 $66,870,268 $62,845,352 Less: Goodwill (671,122) (671,122) (671,122) Less: Other intangibles (20,440) (21,415) (24,511) Total tangible assets $71,965,731 $66,177,731 $62,149,719 Tangible common equity to tangible assets 7.09 % 7.83 % 8.15 % Common shares outstanding at end of period 80,656,480 84,379,180 84,184,927 Tangible book value per common share $63.24 $61.42 $60.13 Quarterly average Total stockholders’ equity [1] $5,683,325 $5,693,672 $5,274,071 Less: Preferred Stock (22,143) (22,143) (22,143) Less: Goodwill (671,121) (671,121) (671,121) Less: Other intangibles (21,350) (22,104) (25,497) Total tangible equity $4,968,711 $4,978,304 $4,555,310 Return on average tangible common equity 17.58 % 21.37 % 11.23 % [1] Average balances exclude unrealized gains or losses on debt securities available-for-sale. 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Popular, Inc. Investor Relations: Paul J. Cardillo, 212-417-6721 Investor Relations Officer pcardillo@popular.com or Media Relations: MC González Noguera, 917-804-5253 Executive Vice President and Chief Communications & Public Affairs Officer mc.gonzalez@popular.com