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 First Quarter 2022 Financial Results By: Popular, Inc. via Business Wire April 26, 2022 at 08:00 AM EDT Net income of $211.7 million in Q1 2022, compared to net income of $206.1 million in Q4 2021. Net interest margin of 2.75% in Q1 2022, compared to 2.78% in Q4 2021; net interest margin on a taxable equivalent basis of 3.05% in Q1 2022, compared to 3.02% in Q4 2021. Credit Quality: Non-performing loans held-in-portfolio (“NPLs”) decreased by $28.0 million from Q4 2021; NPLs to loans ratio at 1.8% vs. 1.9% in Q4 2021; Net charge-offs (“NCOs”) were $3.8 million, compared to a net recovery of $7.9 million in Q4 2021; NCOs at 0.05% of average loans held-in-portfolio vs. (0.11%) in Q4 2021; Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.29% vs. 2.38% in Q4 2021; and ACL to NPLs at 130.4% vs. 126.9% in Q4 2021. Common Equity Tier 1 ratio of 16.26%, Common Equity per Share of $60.78 and Tangible Book Value per Share of $51.16 at March 31, 2022. Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $211.7 million for the quarter ended March 31, 2022, compared to net income of $206.1 million for the quarter ended December 31, 2021. Ignacio Alvarez, President and Chief Executive Officer, said: “We had a solid quarter with net income of $212 million, building on the momentum of our record 2021 results. We saw broad-based loan growth, across geographies and most business lines, while maintaining strong asset quality metrics. Net charge-offs were five basis points for the quarter. We continued to see deposit growth from our private sector clients. Our deposit franchise in Puerto Rico will be an even greater source of strength as interest rates rise as expected. Our capital ratios remained strong, allowing us to continue to return capital to our shareholders and increase our common stock dividend. Going forward, we remain optimistic about the economic outlook, yet cognizant of the possible challenges to the macroeconomic environment resulting from the war in Ukraine, inflation and the evolving health situation. I am thankful to our team who have continued to perform at a high level and deliver results under a myriad of changing conditions. Finally, our thoughts and prayers are with the people of Ukraine as they suffer the horrible consequences of the war.” Earnings Highlights (Unaudited) Quarters ended (Dollars in thousands, except per share information) 31-Mar-22 31-Dec-21 31-Mar-21 Net interest income $494,312 $501,283 $479,112 Provision for credit losses (benefit) (15,500 ) (33,050 ) (82,226 ) Net interest income after provision for credit losses (benefit) 509,812 534,333 561,338 Other non-interest income 154,692 164,677 153,653 Operating expenses 402,339 417,394 375,528 Income before income tax 262,165 281,616 339,463 Income tax expense 50,479 75,552 76,831 Net income $211,686 $206,064 $262,632 Net income applicable to common stock $211,333 $205,711 $262,279 Net income per common share - Basic $2.69 $2.59 $3.13 Net income per common share - Diluted $2.69 $2.58 $3.12 Significant Events Entry into Asset Purchase Agreement with Evertec; Renegotiation and Extension of Commercial Agreements On February 24, 2022, the Corporation and Banco Popular de Puerto Rico (“BPPR”), entered into an Asset Purchase Agreement (the “Purchase Agreement”), with Evertec, Inc. (“EVERTEC”) and Evertec Group, LLC, a wholly owned subsidiary of EVERTEC (“EVERTEC Group”), pursuant to which BPPR will purchase from EVERTEC Group certain information technology and related assets currently used by EVERTEC to service certain of BPPR’s key channels (the “Acquired Assets”) under the Amended and Restated Master Service Agreement (the “MSA”), dated September 30, 2010, among the Corporation, BPPR and EVERTEC. In connection with the purchase of the Acquired Assets, BPPR will assume certain liabilities relating to the Acquired Assets (together with the purchase of the Acquired Assets, the “Transaction”). The Transaction is expected to close on or about June 30, 2022, subject to the satisfaction of certain closing conditions. In connection with the consummation of the Transaction (the “Closing”), the Corporation will transfer to EVERTEC Group, as consideration for the Transaction, shares of EVERTEC’s common stock (“EVERTEC Common Stock”) having an aggregate value of approximately $197 million, subject to certain purchase price adjustments, based on a price per share of $42.84, which value was determined at the time of entering into the Purchase Agreement. As a result of this transfer, the Corporation expects that its percentage ownership of the outstanding shares of EVERTEC Common Stock will be reduced from its current level, which is approximately 16.2%, to approximately 10.5% immediately following the Closing. As part of the transaction, the Corporation has also agreed to reduce its voting interest in EVERTEC below 4.5%, whether through selling shares of EVERTEC common stock or a conversion of such shares into non-voting preferred stock. The Corporation expects to sell down its stake in EVERTEC below 4.5% following the closing and intends to return to shareholders, via common stock repurchases, the after-tax gains resulting from such sale, subject to the receipt of regulatory approvals. Additionally, as part of the Closing, the Corporation and BPPR will also enter with EVERTEC into, among other commercial agreements, a Second Amended and Restated Master Services Agreement (the “Second A&R MSA”), pursuant to which EVERTEC Group will continue to provide various key information technology and various transaction processing services to the Corporation, BPPR and their respective subsidiaries, which services are provided under the currently effective MSA. Capital Actions On March 1, 2022 the Corporation announced that on February 28, 2022 it entered into an accelerated share repurchase agreement (the “ASR Agreement”) to repurchase an aggregate of $400 million of Popular’s common stock. Popular previously disclosed in a press release on January 12, 2022 its plan to repurchase up to $500 million of its common stock as part of its planned capital actions for 2022. Under the terms of the ASR Agreement, on March 2, 2022 the Corporation made an initial payment of $400 million and received an initial delivery of 3,483,942 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 $320 million in treasury stock and $80 million as a reduction of 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 2022. Popular expects to execute during the remainder of the year, in the open market or in privately negotiated transactions, the remaining $100 million in common stock repurchases contemplated as part of the Corporation’s 2022 capital actions announced in January 2022. The timing and exact amount of such additional repurchases will be subject to various factors, including market conditions and the Corporation’s capital position and financial performance. On February 23, 2022, the Corporation’s Board of Directors approved a quarterly cash dividend of $0.55 per share, an increase from the previous $0.45 per share quarterly dividend, on its outstanding common stock. The dividend was paid on April 1, 2022 to shareholders of record at the close of business on March 15, 2022. 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 for the quarter ended March 31, 2022, 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 March 31, 2022 was $494.3 million compared to $501.3 million in the previous quarter, a decrease of $7.0 million. Net interest income, on a taxable equivalent basis, for the first quarter of 2022 was $548.1 million, an increase of $4.2 million when compared to $543.9 million in the last quarter of 2021. The increase in the taxable equivalent adjustment results from BPPR’s higher volume of tax-free investment securities in Puerto Rico. Net interest margin for the quarter was 2.75% compared to 2.78% in the last quarter of 2021. On a taxable equivalent basis, net interest margin for the first quarter of 2022 was 3.05% compared to 3.02% in the fourth quarter of 2021. The main variances in net interest income on a taxable equivalent basis were: higher interest income from money markets, trading and investment securities by $18.4 million resulting from a higher volume by $540 million, in turn driven by an increase in the average U.S. Treasury portfolio by $4.2 billion, partially offset by lower volume of money market investments by $3.1 billion and higher yields by 17 basis points driven by higher market rates and the composition of the portfolio; and higher interest income from consumer loans mainly driven by a higher average volume in both P.R. and the U.S. partially offset by: lower interest income from commercial loans by $16.5 million resulting from lower income form loans under the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) by $12.6 million, lower interest income from the repayment of purchased credit deteriorated (“PCD”) loans and the impact of 2 fewer days in the quarter or approximately $4.1 million. This negative effect was offset in part by an increase of $346 million in the average volume of commercial loans, at both P.R. and the U.S segments, for a $4.4 million benefit; a decrease in auto and lease financing income of $1.6 million mainly driven by two fewer days in the quarter when compared to the prior quarter, partially offset by higher loan volume by $62 million. The Corporation recognized income of $10.6 million related to loans issued under the SBA PPP, compared to $23.2 million in the previous quarter. These loans carried a yield of approximately 17.01% in this quarter, including the amortization of fees received under the program, compared to 17.86% last quarter. This portfolio of loans issued under the SBA PPP declined by $141 million in BPPR to a balance of $114 million and declined by $39 million in Popular Bank (“PB” or “Popular U.S.”) to a balance of $59 million. On March 31, 2022, the portfolio at BPPR and PB had a remaining aggregate balance of unamortized fees of $8.1 million. Net interest income for the BPPR segment amounted to $415.2 million for the first quarter of 2022, compared to $425.9 million for the fourth quarter of 2021. Net interest margin for the first quarter of 2022 was 2.67% a decrease of 6 basis points when compared to 2.73% for the previous quarter. As discussed above, net interest margin was negatively impacted by lower SBA PPP income and lower payment of PCD loans, partially offset by the positive impact of higher investment securities balances. The cost of interest-bearing and total deposits remained unchanged from the previous quarter at 0.16% and 0.12%, respectively. Net interest income for PB was $86.5 million for the quarter ended March 31, 2022, compared to $83.2 million during the previous quarter. Net interest margin for the quarter was 3.56% compared to 3.47% the previous quarter. The increase in net interest income results mainly from a higher volume of commercial and consumer loans. The lower cost on deposits also resulted in a benefit to PB’s net interest margin. The cost of interest-bearing deposits was 0.46% or 6 basis points lower than the 0.52% reported in the last quarter of 2021, while the total cost of deposits, including demand deposits, was 0.36%, compared to 0.40% in the previous quarter. Non-interest income Non-interest income decreased by $10.0 million to $154.7 million for the quarter ended March 31, 2022, compared to $164.7 million for the quarter ended December 31, 2021. The variance in non-interest income was primarily driven by: lower other service fees by $6.7 million, mainly due to lower insurance fees by $3.7 million principally resulting from contingent insurance commissions that are typically recognized during the fourth quarter and lower credit card fees by $2.0 million mainly in interchange income due to seasonal purchasing activity in the previous quarter; and lower income from mortgage banking activities by $4.2 million mainly due to a loss on sale of loans and securitization activities of $1.5 million, compared to a gain of $5.4 in the previous quarter due to a lower volume of transactions and lower market rates, partially offset by higher realized gains on closed derivative positions by $3.4 million; partially offset by: higher other operating income by $4.9 million mainly due to higher earnings from the portfolio of equity method investments and higher income from the sale of auto rental units. Refer to Table B for further details. Operating expenses Operating expenses for the first quarter of 2022 totaled $402.3 million, a decrease of $15.1 million when compared to the fourth quarter of 2021. The variance in operating expenses was driven primarily by: lower net occupancy expenses by $2.0 million due to lower rent and electricity expenses; lower business promotion expenses by $10.8 million mainly due to lower advertising and promotion expenses by $5.7 million a result of seasonal activities during the fourth quarter of 2021, lower donations by $2.8 million and lower credit cards rewards expense as a result of transactional volumes by $1.7 million; lower other operating expenses by $11.4 million due to the effect during the previous quarter of an impairment charge on undeveloped properties by $5.0 million and lower sundry losses by $5.0 million mainly related to the termination of a white label credit card contract during prior quarter; and lower amortization of intangibles by $5.2 million due to an impairment write-down of a trademark during the fourth quarter of 2021. partially offset by: higher personnel cost by $6.5 million mainly due to higher performance shares and restricted stock expenses by $6.3 million; higher payroll taxes by $5.1 million; partially offset by $3.1 million in lower incentives related to the profit-sharing plan which is tied to the Corporation’s financial performance; higher professional fees by $3.4 million mainly due to higher advisory expenses related to corporate initiatives; and higher credit and debit card processing and other expenses by $3.8 million due in part to lower volume incentives. Full-time equivalent employees were 8,492 as of March 31, 2022, compared to 8,351 as of December 31, 2021. For a breakdown of operating expenses by category refer to Table B. Income taxes For the quarter ended March 31, 2022, the Corporation recorded an income tax expense of $50.5 million, compared to $75.6 million for the previous quarter. The decrease in income tax expense was mainly attributable to lower income before tax and higher exempt income during the first quarter of 2022. The effective tax rate (“ETR”) for the first quarter of 2022 was 19.3%, compared to 27% in the fourth quarter of 2021. The ETR of the Corporation is impacted by the composition and source of its taxable income. The Corporation expects its ETR for the year 2022 to be within a range from 18% to 20%. Credit Quality During the first quarter of 2022, the Corporation continued to exhibit strong credit quality trends and low credit costs with low level of NCOs and decreasing NPLs. We continue to closely monitor changes on borrower performance and in the pace of economic recovery, given the rising interest rate environment and geopolitical uncertainty. 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 first quarter of 2022: At March 31, 2022, total non-performing loans held-in-portfolio decreased by $28.0 million from December 31, 2021. BPPR’s NPLs decreased by $27.5 million, mostly driven by lower mortgage NPLs by $27.3 million. The mortgage NPLs decrease was mainly due to the combined effects of collection efforts, increased foreclosure activity and the sustained low levels of early delinquency compared with pre-pandemic trends. PB’s NPLs remained flat quarter-over-quarter. At March 31, 2022, the ratio of NPLs to total loans held-in-portfolio was 1.8%, compared to 1.9% in the fourth quarter of 2021. Inflows of NPLs held-in-portfolio, excluding consumer loans, remained flat quarter-over-quarter. In BPPR, total inflows increased by $5.3 million, mostly driven by higher commercial and mortgage inflows of $3.8 million and $2.0 million, respectively. Mortgage inflows continued trending lower than pre-pandemic levels. NPL inflows at PB decreased by $4.9 million during the quarter, mostly driven by a decrease of $7.2 million in mortgage inflows, as the prior quarter included the impact of loans that did not resume payment after the end of COVID-19-related payment deferral periods. NCOs amounted to $3.8 million, an unfavorable variance of $11.7 million when compared to the fourth quarter. BPPR‘s NCOs increased by $13.1 million, as the prior quarter included recoveries from the resolution of certain commercial non-performing loans. During the first quarter of 2022, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.05%, compared to (0.11%) in the fourth quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios. At March 31, 2022, the ACL decreased by $17.6 million, or 2.5%, from the fourth quarter of 2021 to $677.8 million. The ACL incorporated updated macroeconomic scenarios for Puerto Rico and the United States. Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The baseline scenario continues to be assigned the highest probability, followed by the pessimistic scenario. The current baseline forecast continues to show a favorable economic scenario. 2022 annualized GDP growth of 3.5% and 3.7% is expected for Puerto Rico and United States, respectively. This represents a reduction for both Puerto Rico and United States since last quarter’s GDP growth forecast was 4.0% and 4.6%, respectively. Changes in assumptions related to fiscal stimulus and higher energy prices contributed to the reduction. The 2022 average unemployment rate is forecasted at 7.3% and 3.6% for Puerto Rico and United States, respectively. This is consistent with previous expectations for both regions. Puerto Rico’s unemployment rate forecast benefits from the Bureau of Labor Statistics (“BLS”) revisions that show a stronger than expected labor market. In BPPR, the ACL decreased by $17.6 million, mainly driven by reductions in qualitative reserves due to substantial improvements in employment levels in Puerto Rico. Recent updates by the BLS show that employment levels in Puerto Rico have already surpassed pre-pandemic levels. This contributed to a lower commercial, mortgage and consumer loans ACL. The decrease in qualitative reserves was partially offset by the impact of higher loan volumes and changes in the macroeconomic scenario. The ACL for the PB segment remained flat quarter-over-quarter as higher loan volumes in both the commercial real estate and consumer portfolios offset reductions in qualitative reserves. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.29% in the first quarter of 2022, compared to 2.38% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 130.4%, compared to 126.9% in the previous quarter. The provision for credit losses for the loan portfolios for the first quarter of 2022 reflected a benefit of $14.4 million, compared to a benefit of $31.4 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was a benefit of $12.7 million, compared to a benefit of $30.6 million in the previous quarter, while the provision for the PB segment was a benefit of $1.7 million, compared to a benefit of $0.9 million in the previous quarter. The provision for unfunded commitments for the first quarter of 2022 reflected a benefit of $0.8 million, compared to a benefit of $0.5 million in the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $0.3 million, compared to a benefit of $1.1 million in the fourth quarter of 2021. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations. Non-Performing Assets (Unaudited) (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Non-performing loans held-in-portfolio $519,921 $547,877 $698,142 Non-performing loans held-for-sale - - 3,549 Other real estate owned (“OREO”) 90,567 85,077 72,060 Total non-performing assets $610,488 $632,954 $773,751 Net charge-offs (recoveries) for the quarter $3,781 $(7,881 ) $21,030 Ratios: Loans held-in-portfolio $29,588,190 $29,240,557 $29,131,628 Non-performing loans held-in-portfolio to loans held-in-portfolio 1.76 % 1.87 % 2.40 % Allowance for credit losses to loans held-in-portfolio 2.29 2.38 2.75 Allowance for credit losses to non-performing loans, excluding loans held-for-sale 130.36 126.92 114.70 Refer to Table K for additional information. Provision for Credit Losses (Benefit) - Loan Portfolios (Unaudited) Quarters ended (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Provision for credit losses (benefit) - loan portfolios: BPPR $(12,661 ) $(30,562 ) $(39,976 ) Popular U.S. (1,744 ) (859 ) (35,803 ) Total provision for credit losses (benefit) - loan portfolios $(14,405 ) $(31,421 ) $(75,779 ) Credit Quality by Segment (Unaudited) (In thousands) Quarters ended BPPR 31-Mar-22 31-Dec-21 31-Mar-21 Provision for credit losses (benefit) - loan portfolios $(12,661 ) $(30,562 ) $(39,976 ) Net charge-offs (recoveries) 5,502 (7,615 ) 19,474 Total non-performing loans held-in-portfolio 486,816 514,289 665,978 Allowance / loans held-in-portfolio 2.74 % 2.85 % 3.20 % Allowance / non-performing loans held-in-portfolio 118.45 % 115.53 % 102.35 % Quarters ended Popular U.S. 31-Mar-22 31-Dec-21 31-Mar-21 Provision for credit losses (benefit) - loan portfolios $(1,744 ) $(859 ) $(35,803 ) Net charge-offs (recoveries) (1,721 ) (266 ) 1,556 Total non-performing loans held-in-portfolio 33,105 33,588 32,164 Allowance / loans held-in-portfolio 1.18 % 1.21 % 1.53 % Allowance / non-performing loans held-in-portfolio 305.64 % 301.31 % 370.42 % Financial Condition Highlights (Unaudited) (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Cash and money market investments $10,508,840 $17,965,152 $12,064,592 Investment securities 26,658,289 25,267,418 23,076,488 Loans 29,588,190 29,240,557 29,131,628 Total assets 69,525,082 75,097,899 66,870,268 Deposits 62,862,295 67,005,088 58,742,801 Borrowings 1,060,706 1,155,166 1,311,064 Total liabilities 64,853,836 69,128,502 60,972,709 Stockholders’ equity 4,671,246 5,969,397 5,897,559 Total assets decreased by $5.6 billion from the fourth quarter of 2021, driven by: a decrease of $7.5 billion in money market investments, mainly due to lower Puerto Rico public sector deposits and purchases of U.S. Treasury securities; partially offset by: an increase of $1.4 billion in debt securities available-for-sale, mainly due to purchases of U.S. Treasury securities, offset in part by maturities and paydowns of U.S. Treasury and agency mortgage-backed securities; and an increase in loans held-in-portfolio by $0.4 billion, mainly due to loan growth in the commercial portfolios in both Puerto Rico and the U.S. (mainly in the health care sector at PB) and construction portfolios, and purchases of third-party lending consumer loans, partially offset by a decrease in the mortgage portfolio, mainly due to loan payoffs and amortizations. Total liabilities decreased by $4.3 billion from the fourth quarter of 2021, driven by: a decrease of $4.1 billion in deposits, mainly due to lower Puerto Rico public sector deposits by $5.5 billion at BPPR as a result of the payments made by Puerto Rico pursuant to the Plan of Adjustment for Puerto Rico under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”); and a decrease in borrowings of $94 million, mainly due to the maturity during this quarter of $75 million in short-term borrowings. Stockholders' equity decreased by $1.3 billion from the fourth quarter of 2021, principally due to an increase in accumulated unrealized losses on debt securities available-for-sale by $1.1 billion due to a decline in fair value of fixed-rate debt securities as a result of the rising interest rate environment, the impact of the $400 million ASR and declared quarterly common stock dividends, partially offset by the net income of $211.7 million for the quarter. Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.26%, $60.78 and $51.16, respectively, at March 31, 2022, compared to 17.42%, $74.48 and $65.26 at December 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, new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic (including the appearance of new strains of the virus), actions taken by governmental authorities in response thereto, and the direct and indirect impact of the pandemic on Popular, our customers, service providers and third parties. Other factors include the length of time necessary for Popular to consummate the Transaction; the ability to satisfy the conditions to the closing thereof; the receipt of any regulatory approvals necessary to effect the Transaction and the contemplated return to shareholders of net gains resulting from a sale of EVERTEC shares effected in connection with the consummation of the Transaction; the ability to successfully transition and integrate the assets acquired as part of the Transaction, related operations, employees and third party contractors; unexpected costs, including, without limitation, costs due to exposure to any unrecorded liabilities or issues not identified during due diligence investigation of the Transaction or that are not subject to indemnification or reimbursement by EVERTEC; risks that Popular may be affected by operational and other risks arising from the acquisition of the acquired assets or by adverse effects on relationships with customers, employees and service providers and business and other risks arising from the extension of Popular’s current commercial agreements with EVERTEC. 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, 2021, and in our Form 10-Q for the quarter ended March 31, 2022 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 Tuesday, April 26, 2022 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 1-844-200-6205 (Toll Free) or 1-646-904-5544 (Local). The dial-in access code is 659646. 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 Tuesday, May 24, 2022. The replay dial-in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 408334. An electronic version of this press release can be found at the Corporation’s website: www.popular.com. Popular, Inc. Financial Supplement to First Quarter 2022 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 [Left Blank] Table F - Mortgage Banking Activities & 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 First Quarter 2022 Earnings Release Table A - Selected Ratios and Other Information (Unaudited) Quarters ended 31-Mar-22 31-Dec-21 31-Mar-21 Basic EPS $2.69 $2.59 $3.13 Diluted EPS $2.69 $2.58 $3.12 Average common shares outstanding 78,443,706 79,477,823 83,899,769 Average common shares outstanding - assuming dilution 78,595,463 79,652,836 84,051,935 Common shares outstanding at end of period 76,487,523 79,851,169 84,379,180 Market value per common share $81.74 $82.04 $70.32 Market capitalization - (In millions) $6,252 $6,551 $5,934 Return on average assets 1.14% 1.09% 1.61% Return on average common equity 14.38% 13.74% 18.76% Net interest margin (non-taxable equivalent basis) 2.75% 2.78% 3.07% Net interest margin (taxable equivalent basis) -non-GAAP 3.05% 3.02% 3.39% Common equity per share $60.78 $74.48 $69.63 Tangible common book value per common share (non-GAAP) [1] $51.16 $65.26 $61.42 Tangible common equity to tangible assets (non-GAAP) [1] 5.69% 7.01% 7.83% Return on average tangible common equity [1] 16.40% 15.66% 21.37% Tier 1 capital 16.33% 17.49% 17.15% Total capital 18.19% 19.35% 19.62% Tier 1 leverage 6.98% 7.41% 8.06% Common Equity Tier 1 capital 16.26% 17.42% 17.08% [1] Refer to Table Q for reconciliation to GAAP financial measures. POPULAR, INC. Financial Supplement to First Quarter 2022 Earnings Release Table B - Consolidated Statement of Operations (Unaudited) Quarters ended Variance Quarter ended Variance Q1 2022 Q1 2022 (In thousands, except per share information) 31-Mar-22 31-Dec-21 vs. Q4 2021 31-Mar-21 vs. Q1 2021 Interest income: Loans $426,791 $444,101 $(17,310 ) $434,649 $(7,858 ) Money market investments 6,464 6,847 (383 ) 3,112 3,352 Investment securities 96,466 88,315 8,151 85,690 10,776 Total interest income 529,721 539,263 (9,542 ) 523,451 6,270 Interest expense: Deposits 24,783 26,331 (1,548 ) 30,201 (5,418 ) Short-term borrowings 80 60 20 143 (63 ) Long-term debt 10,546 11,589 (1,043 ) 13,995 (3,449 ) Total interest expense 35,409 37,980 (2,571 ) 44,339 (8,930 ) Net interest income 494,312 501,283 (6,971 ) 479,112 15,200 Provision for credit losses (benefit) (15,500 ) (33,050 ) 17,550 (82,226 ) 66,726 Net interest income after provision for credit losses (benefit) 509,812 534,333 (24,521 ) 561,338 (51,526 ) Service charges on deposit accounts 40,713 41,613 (900 ) 39,620 1,093 Other service fees 77,134 83,793 (6,659 ) 70,628 6,506 Mortgage banking activities 12,865 17,035 (4,170 ) 17,343 (4,478 ) Net (loss) gain, including impairment, on equity securities (2,094 ) (1,454 ) (640 ) 421 (2,515 ) Net loss on trading account debt securities (723 ) (355 ) (368 ) (45 ) (678 ) Adjustments (expense) to indemnity reserves on loans sold (745 ) 1,398 (2,143 ) (698 ) (47 ) Other operating income 27,542 22,647 4,895 26,384 1,158 Total non-interest income 154,692 164,677 (9,985 ) 153,653 1,039 Operating expenses: Personnel costs Salaries 98,673 96,830 1,843 89,335 9,338 Commissions, incentives and other bonuses 31,339 27,611 3,728 33,218 (1,879 ) Pension, postretirement and medical insurance 12,783 13,971 (1,188 ) 10,924 1,859 Other personnel costs, including payroll taxes 24,201 22,060 2,141 26,002 (1,801 ) Total personnel costs 166,996 160,472 6,524 159,479 7,517 Net occupancy expenses 24,723 26,755 (2,032 ) 26,013 (1,290 ) Equipment expenses 23,479 25,180 (1,701 ) 21,575 1,904 Other taxes 15,715 15,160 555 13,959 1,756 Professional fees Collections, appraisals and other credit related fees 2,226 3,227 (1,001 ) 3,320 (1,094 ) Programming, processing and other technology services 69,374 69,647 (273 ) 66,366 3,008 Legal fees, excluding collections 3,954 3,445 509 2,365 1,589 Other professional fees 32,943 28,736 4,207 27,897 5,046 Total professional fees 108,497 105,055 3,442 99,948 8,549 Communications 6,147 6,263 (116 ) 6,833 (686 ) Business promotion 15,083 25,833 (10,750 ) 12,521 2,562 FDIC deposit insurance 7,372 6,688 684 5,968 1,404 Other real estate owned (OREO) income (2,713 ) (3,860 ) 1,147 (4,533 ) 1,820 Credit and debit card processing, volume, interchange and other expenses 12,509 8,757 3,752 12,454 55 Other operating expenses Operational losses 11,825 16,820 (4,995 ) 7,896 3,929 All other 11,815 18,226 (6,411 ) 12,364 (549 ) Total other operating expenses 23,640 35,046 (11,406 ) 20,260 3,380 Amortization of intangibles 891 6,045 (5,154 ) 1,051 (160 ) Total operating expenses 402,339 417,394 (15,055 ) 375,528 26,811 Income before income tax 262,165 281,616 (19,451 ) 339,463 (77,298 ) Income tax expense 50,479 75,552 (25,073 ) 76,831 (26,352 ) Net income $211,686 $206,064 $5,622 $262,632 $(50,946 ) Net income applicable to common stock $211,333 $205,711 $5,622 $262,279 $(50,946 ) Net income per common share - basic $2.69 $2.59 $0.10 $3.13 $(0.44 ) Net income per common share - diluted $2.69 $2.58 $0.11 $3.12 $(0.43 ) Dividends Declared per Common Share $0.55 $0.45 $0.10 $0.40 $0.15 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table C - Consolidated Statement of Financial Condition (Unaudited) Variance Q1 2022 vs. (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Q4 2021 Assets: Cash and due from banks $439,148 $428,433 $495,915 $10,715 Money market investments 10,069,692 17,536,719 11,568,677 (7,467,027 ) Trading account debt securities, at fair value 36,042 29,711 36,504 6,331 Debt securities available-for-sale, at fair value 26,359,915 24,968,269 22,771,609 1,391,646 Debt securities held-to-maturity, at amortized cost 75,984 79,461 89,725 (3,477 ) Less: Allowance for credit losses 7,844 8,096 10,096 (252 ) Total debt securities held-to-maturity, net 68,140 71,365 79,629 (3,225 ) Equity securities 186,348 189,977 178,650 (3,629 ) Loans held-for-sale, at lower of cost or fair value 55,150 59,168 84,214 (4,018 ) Loans held-in-portfolio 29,856,356 29,506,225 29,344,620 350,131 Less: Unearned income 268,166 265,668 212,992 2,498 Allowance for credit losses 677,792 695,366 800,797 (17,574 ) Total loans held-in-portfolio, net 28,910,398 28,545,191 28,330,831 365,207 Premises and equipment, net 488,390 494,240 508,023 (5,850 ) Other real estate 90,567 85,077 72,060 5,490 Accrued income receivable 204,466 203,096 215,993 1,370 Mortgage servicing rights, at fair value 125,358 121,570 122,543 3,788 Other assets 1,755,847 1,628,571 1,713,083 127,276 Goodwill 720,293 720,293 671,122 - Other intangible assets 15,328 16,219 21,415 (891 ) Total assets $69,525,082 $75,097,899 $66,870,268 $(5,572,817 ) Liabilities and Stockholders’ Equity: Liabilities: Deposits: Non-interest bearing $16,096,666 $15,684,482 $14,263,548 $412,184 Interest bearing 46,765,629 51,320,606 44,479,253 (4,554,977 ) Total deposits 62,862,295 67,005,088 58,742,801 (4,142,793 ) Assets sold under agreements to repurchase 72,819 91,603 86,834 (18,784 ) Other short-term borrowings - 75,000 - (75,000 ) Notes payable 987,887 988,563 1,224,230 (676 ) Other liabilities 930,835 968,248 918,844 (37,413 ) Total liabilities 64,853,836 69,128,502 60,972,709 (4,274,666 ) Stockholders’ equity: Preferred stock 22,143 22,143 22,143 - Common stock 1,046 1,046 1,045 - Surplus 4,571,111 4,650,182 4,571,919 (79,071 ) Retained earnings 3,143,004 2,973,745 2,489,453 169,259 Treasury stock (1,668,820 ) (1,352,650 ) (1,012,263 ) (316,170 ) Accumulated other comprehensive loss, net of tax (1,397,238 ) (325,069 ) (174,738 ) (1,072,169 ) Total stockholders’ equity 4,671,246 5,969,397 5,897,559 (1,298,151 ) Total liabilities and stockholders’ equity $69,525,082 $75,097,899 $66,870,268 $(5,572,817 ) Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER (Unaudited) Quarters ended Variance 31-Mar-22 31-Dec-21 31-Mar-21 Q1 2022 vs. Q4 2021 Q1 2022 vs. Q1 2021 ($ 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 $43,304 $144.8 1.35 % $42,764 $126.4 1.18 % $33,756 $127.8 1.52 % $540 $18.4 0.17 % $9,548 $17.0 (0.17 ) % Loans: Commercial 13,741 172.1 5.08 13,395 188.6 5.59 13,624 179.0 5.33 346 (16.5 ) (0.51 ) 117 (6.9 ) (0.25 ) Construction 726 9.8 5.45 777 10.7 5.46 911 11.9 5.30 (51 ) (0.9 ) (0.01 ) (185 ) (2.1 ) 0.15 Mortgage 7,388 96.8 5.24 7,504 96.4 5.14 7,869 98.4 5.00 (116 ) 0.4 0.10 (481 ) (1.6 ) 0.24 Consumer 2,538 70.0 11.19 2,471 68.1 10.93 2,513 70.4 11.36 67 1.9 0.26 25 (0.4 ) (0.17 ) Auto 3,460 69.3 8.12 3,432 71.3 8.24 3,203 68.2 8.63 28 (2.0 ) (0.12 ) 257 1.1 (0.51 ) Lease financing 1,393 20.7 5.95 1,359 20.3 5.97 1,215 18.4 6.04 34 0.4 (0.02 ) 178 2.3 (0.09 ) Total loans 29,246 438.7 6.06 28,938 455.4 6.26 29,335 446.3 6.15 308 (16.7 ) (0.20 ) (89 ) (7.6 ) (0.09 ) Total interest earning assets $72,550 $583.5 3.25 % $71,702 $581.8 3.23 % $63,091 $574.1 3.67 % $848 $1.7 0.02 % $9,459 $9.4 (0.42 ) % Allowance for credit losses - loan portfolio (695 ) (719 ) (890 ) 24 195 Allowance for credit losses - investment securities (8 ) (9 ) (10 ) 1 2 Other non-interest earning assets 3,782 3,844 3,895 (62 ) (113 ) Total average assets $75,629 $74,818 $66,086 $811 $9,543 Liabilities and Stockholders' Equity: Interest bearing deposits: NOW and money market $28,289 $7.3 0.10 % $28,205 $7.7 0.11 % $22,674 $8.3 0.15 % $84 $(0.4 ) (0.01 ) % $5,615 $(1.0 ) (0.05 ) % Savings 16,434 6.6 0.16 16,324 6.8 0.17 14,364 7.0 0.20 110 (0.2 ) (0.01 ) 2,070 (0.4 ) (0.04 ) Time deposits 6,737 10.9 0.66 6,793 11.8 0.69 7,265 14.9 0.83 (56 ) (0.9 ) (0.03 ) (528 ) (4.0 ) (0.17 ) Total interest-bearing deposits 51,460 24.8 0.20 51,322 26.3 0.20 44,303 30.2 0.31 138 (1.5 ) - 7,157 (5.4 ) (0.11 ) Borrowings 1,105 10.6 3.87 1,163 11.6 4.01 1,344 14.1 4.23 (58 ) (1.0 ) (0.14 ) (239 ) (3.5 ) (0.36 ) Total interest-bearing liabilities 52,565 35.4 0.27 52,485 37.9 0.29 45,647 44.3 0.39 80 (2.5 ) (0.02 ) 6,918 (8.9 ) (0.12 ) Net interest spread 2.98 % 2.94 % 3.28 % 0.04 % (0.30 ) % Non-interest bearing deposits 16,142 15,455 13,394 687 2,748 Other liabilities 939 917 1,351 22 (412 ) Stockholders' equity 5,983 5,961 5,694 22 289 Total average liabilities and stockholders' equity $75,629 $74,818 $66,086 $811 $9,543 Net interest income / margin on a taxable equivalent basis (Non-GAAP) $548.1 3.05 % $543.9 3.02 % $529.8 3.39 % $4.2 0.03 % $18.3 (0.34 ) % Taxable equivalent adjustment 53.8 42.6 50.7 11.2 3.1 Net interest income / margin non-taxable equivalent basis (GAAP) $494.3 2.75 % $501.3 2.78 % $479.1 3.07 % ($7.0 ) (0.03 ) % $15.2 (0.32 ) % Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table E – Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE [THIS PAGE INTENTIONALLY LEFT BLANK] Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table F - Mortgage Banking Activities and Other Service Fees (Unaudited) Mortgage Banking Activities Quarters ended Variance (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Q1 2022 vs.Q4 2021 Q1 2022 vs.Q1 2021 Mortgage servicing fees, net of fair value adjustments: Mortgage servicing fees $9,323 $9,492 $9,715 $(169 ) $(392 ) Mortgage servicing rights fair value adjustments 1,088 1,500 512 (412 ) 576 Total mortgage servicing fees, net of fair value adjustments 10,411 10,992 10,227 (581 ) 184 Net (loss) gain on sale of loans, including valuation on loans held-for-sale (1,534 ) 5,428 4,975 (6,962 ) (6,509 ) Trading account profit: Unrealized gains on outstanding derivative positions 2 - - 2 2 Realized gains on closed derivative positions 4,135 691 2,502 3,444 1,633 Total trading account profit 4,137 691 2,502 3,446 1,635 Losses on repurchased loans, including interest advances (149 ) (76 ) (361 ) (73 ) 212 Total mortgage banking activities $12,865 $17,035 $17,343 $(4,170 ) $(4,478 ) Other Service Fees Quarters ended Variance (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Q1 2022 vs.Q4 2021 Q1 2022 vs.Q1 2021 Other service fees: Debit card fees $11,779 $12,392 $11,577 $(613 ) $202 Insurance fees 14,156 17,848 12,828 (3,692 ) 1,328 Credit card fees 33,642 35,649 28,691 (2,007 ) 4,951 Sale and administration of investment products 5,791 5,908 5,540 (117 ) 251 Trust fees 5,927 5,858 5,842 69 85 Other fees 5,839 6,138 6,150 (299 ) (311 ) Total other service fees $77,134 $83,793 $70,628 $(6,659 ) $6,506 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table G - Loans and Deposits (Unaudited) Loans - Ending Balances Variance (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Q1 2022 vs.Q4 2021 Q1 2022 vs.Q1 2021 Loans held-in-portfolio: Commercial $14,028,246 $13,732,701 $13,442,486 $295,545 $585,760 Construction 744,783 716,220 907,736 28,563 (162,953 ) Leasing 1,426,122 1,381,319 1,244,956 44,803 181,166 Mortgage 7,326,346 7,427,196 7,808,852 (100,850 ) (482,506 ) Auto 3,430,162 3,412,187 3,203,137 17,975 227,025 Consumer 2,632,531 2,570,934 2,524,461 61,597 108,070 Total loans held-in-portfolio $29,588,190 $29,240,557 $29,131,628 $347,633 $456,562 Loans held-for-sale: Commercial $- $- $3,549 $- $(3,549 ) Mortgage 55,150 59,168 80,665 (4,018 ) (25,515 ) Total loans held-for-sale $55,150 $59,168 $84,214 $(4,018 ) $(29,064 ) Total loans $29,643,340 $29,299,725 $29,215,842 $343,615 $427,498 Deposits - Ending Balances Variance (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Q1 2022 vs. Q4 2021 Q1 2022 vs. Q1 2021 Demand deposits [1] $25,684,715 $25,889,732 $23,450,312 $(205,017 ) $2,234,403 Savings, NOW and money market deposits (non-brokered) 29,318,333 33,674,134 27,356,136 (4,355,801 ) 1,962,197 Savings, NOW and money market deposits (brokered) 768,558 729,073 679,832 39,485 88,726 Time deposits (non-brokered) 6,964,848 6,685,938 7,143,221 278,910 (178,373 ) Time deposits (brokered CDs) 125,841 26,211 113,300 99,630 12,541 Total deposits $62,862,295 $67,005,088 $58,742,801 $(4,142,793 ) $4,119,494 [1] Includes interest and non-interest bearing demand deposits. Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table H - Loan Delinquency - Puerto Rico Operations (Unaudited) 31-Mar-22 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 $ 2,130 $ 189 $ 274 $ 2,593 $ 160,648 $ 163,241 $ 274 $ - Commercial real estate: Non-owner occupied 3,646 93 20,627 24,366 2,536,174 2,560,540 20,627 - Owner occupied 4,024 50 49,732 53,806 1,396,696 1,450,502 49,732 - Commercial and industrial 1,218 169 48,167 49,554 3,333,918 3,383,472 47,149 1,018 Construction 715 - - 715 126,610 127,325 - - Mortgage 182,397 79,374 736,338 998,109 5,125,554 6,123,663 306,560 429,778 Leasing 9,819 2,446 3,766 16,031 1,410,091 1,426,122 3,766 - Consumer: Credit cards 5,817 3,728 9,049 18,594 896,966 915,560 - 9,049 Home equity lines of credit - - 23 23 3,093 3,116 - 23 Personal 10,215 6,184 19,157 35,556 1,267,920 1,303,476 19,157 - Auto 51,497 11,353 27,514 90,364 3,339,798 3,430,162 27,514 - Other 537 37 12,184 12,758 112,322 125,080 12,037 147 Total $ 272,015 $ 103,623 $ 926,831 $ 1,302,469 $ 19,709,790 $ 21,012,259 $ 486,816 $ 440,015 31-Dec-21 Puerto Rico Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 314 $ - $ 272 $ 586 $ 154,183 $ 154,769 $ 272 $ - Commercial real estate: Non-owner occupied 2,399 136 20,716 23,251 2,266,672 2,289,923 20,716 - Owner occupied 3,329 278 54,335 57,942 1,365,787 1,423,729 54,335 - Commercial and industrial 3,438 1,727 45,242 50,407 3,478,041 3,528,448 44,724 518 Construction - - 485 485 86,626 87,111 485 - Mortgage 217,830 81,754 805,245 1,104,829 5,147,037 6,251,866 333,887 471,358 Leasing 9,240 2,037 3,102 14,379 1,366,940 1,381,319 3,102 - Consumer: Credit cards 5,768 3,520 8,577 17,865 901,986 919,851 - 8,577 Home equity lines of credit 46 - 23 69 3,502 3,571 - 23 Personal 10,027 6,072 21,235 37,334 1,250,726 1,288,060 21,235 - Auto 59,128 15,019 23,085 97,232 3,314,955 3,412,187 23,085 - Other 432 714 12,621 13,767 110,781 124,548 12,448 173 Total $ 311,951 $ 111,257 $ 994,938 $ 1,418,146 $ 19,447,236 $ 20,865,382 $ 514,289 $ 480,649 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 1,816 $ 189 $ 2 $ 2,007 $ 6,465 $ 8,472 $ 2 $ - Commercial real estate: Non-owner occupied 1,247 (43 ) (89 ) 1,115 269,502 270,617 (89 ) - Owner occupied 695 (228 ) (4,603 ) (4,136 ) 30,909 26,773 (4,603 ) - Commercial and industrial (2,220 ) (1,558 ) 2,925 (853 ) (144,123 ) (144,976 ) 2,425 500 Construction 715 - (485 ) 230 39,984 40,214 (485 ) - Mortgage (35,433 ) (2,380 ) (68,907 ) (106,720 ) (21,483 ) (128,203 ) (27,327 ) (41,580 ) Leasing 579 409 664 1,652 43,151 44,803 664 - Consumer: Credit cards 49 208 472 729 (5,020 ) (4,291 ) - 472 Home equity lines of credit (46 ) - - (46 ) (409 ) (455 ) - - Personal 188 112 (2,078 ) (1,778 ) 17,194 15,416 (2,078 ) - Auto (7,631 ) (3,666 ) 4,429 (6,868 ) 24,843 17,975 4,429 - Other 105 (677 ) (437 ) (1,009 ) 1,541 532 (411 ) (26 ) Total $ (39,936 ) $ (7,634 ) $ (68,107 ) $ (115,677 ) $ 262,554 $ 146,877 $ (27,473 ) $ (40,634 ) Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table I - Loan Delinquency - Popular U.S. Operations (Unaudited) 31-Mar-22 Popular U.S. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ - $ - $ - $ - $ 1,865,623 $ 1,865,623 $ - $ - Commercial real estate: Non-owner occupied 902 740 374 2,016 1,391,874 1,393,890 374 - Owner occupied 6,385 - 677 7,062 1,398,580 1,405,642 677 - Commercial and industrial 10,925 602 4,891 16,418 1,788,918 1,805,336 4,352 539 Construction - - - - 617,458 617,458 - - Mortgage 13,006 1,069 21,826 35,901 1,166,782 1,202,683 21,826 - Consumer: Credit cards - - - - 26 26 - - Home equity lines of credit 259 15 5,248 5,522 68,437 73,959 5,248 - Personal 739 558 627 1,924 203,381 205,305 627 - Other - 1 1 2 6,007 6,009 1 - Total $ 32,216 $ 2,985 $ 33,644 $ 68,845 $ 8,507,086 $ 8,575,931 $ 33,105 $ 539 31-Dec-21 Popular U.S. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 3,826 $ - $ - $ 3,826 $ 1,804,035 $ 1,807,861 $ - $ - Commercial real estate: Non-owner occupied 5,721 683 622 7,026 2,316,441 2,323,467 622 - Owner occupied 1,095 - 1,013 2,108 392,265 394,373 1,013 - Commercial and industrial 9,410 2,680 4,015 16,105 1,794,026 1,810,131 3,897 118 Construction - - - - 629,109 629,109 - - Mortgage 11,711 2,573 21,969 36,253 1,139,077 1,175,330 21,969 - Consumer: Credit cards - - - - 10 10 - - Home equity lines of credit 71 34 5,406 5,511 69,780 75,291 5,406 - Personal 863 574 681 2,118 152,827 154,945 681 - Other - - - - 4,658 4,658 - - Total $ 32,697 $ 6,544 $ 33,706 $ 72,947 $ 8,302,228 $ 8,375,175 $ 33,588 $ 118 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ (3,826 ) $ - $ - $ (3,826 ) $ 61,588 $ 57,762 $ - $ - Commercial real estate: Non-owner occupied (4,819 ) 57 (248 ) (5,010 ) (924,567 ) (929,577 ) (248 ) - Owner occupied 5,290 - (336 ) 4,954 1,006,315 1,011,269 (336 ) - Commercial and industrial 1,515 (2,078 ) 876 313 (5,108 ) (4,795 ) 455 421 Construction - - - - (11,651 ) (11,651 ) - - Mortgage 1,295 (1,504 ) (143 ) (352 ) 27,705 27,353 (143 ) - Consumer: Credit cards - - - - 16 16 - - Home equity lines of credit 188 (19 ) (158 ) 11 (1,343 ) (1,332 ) (158 ) - Personal (124 ) (16 ) (54 ) (194 ) 50,554 50,360 (54 ) - Other - 1 1 2 1,349 1,351 1 - Total $ (481 ) $ (3,559 ) $ (62 ) $ (4,102 ) $ 204,858 $ 200,756 $ (483 ) $ 421 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table J - Loan Delinquency - Consolidated (Unaudited) 31-Mar-22 Popular, Inc. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 2,130 $ 189 $ 274 $ 2,593 $ 2,026,271 $ 2,028,864 $ 274 $ - Commercial real estate: Non-owner occupied 4,548 833 21,001 26,382 3,928,048 3,954,430 21,001 - Owner occupied 10,409 50 50,409 60,868 2,795,276 2,856,144 50,409 - Commercial and industrial 12,143 771 53,058 65,972 5,122,836 5,188,808 51,501 1,557 Construction 715 - - 715 744,068 744,783 - - Mortgage 195,403 80,443 758,164 1,034,010 6,292,336 7,326,346 328,386 429,778 Leasing 9,819 2,446 3,766 16,031 1,410,091 1,426,122 3,766 - Consumer: Credit cards 5,817 3,728 9,049 18,594 896,992 915,586 - 9,049 Home equity lines of credit 259 15 5,271 5,545 71,530 77,075 5,248 23 Personal 10,954 6,742 19,784 37,480 1,471,301 1,508,781 19,784 - Auto 51,497 11,353 27,514 90,364 3,339,798 3,430,162 27,514 - Other 537 38 12,185 12,760 118,329 131,089 12,038 147 Total $ 304,231 $ 106,608 $ 960,475 $ 1,371,314 $ 28,216,876 $ 29,588,190 $ 519,921 $ 440,554 31-Dec-21 Popular, Inc. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 4,140 $ - $ 272 $ 4,412 $ 1,958,218 $ 1,962,630 $ 272 $ - Commercial real estate: Non-owner occupied 8,120 819 21,338 30,277 4,583,113 4,613,390 21,338 - Owner occupied 4,424 278 55,348 60,050 1,758,052 1,818,102 55,348 - Commercial and industrial 12,848 4,407 49,257 66,512 5,272,067 5,338,579 48,621 636 Construction - - 485 485 715,735 716,220 485 - Mortgage 229,541 84,327 827,214 1,141,082 6,286,114 7,427,196 355,856 471,358 Leasing 9,240 2,037 3,102 14,379 1,366,940 1,381,319 3,102 - Consumer: Credit cards 5,768 3,520 8,577 17,865 901,996 919,861 - 8,577 Home equity lines of credit 117 34 5,429 5,580 73,282 78,862 5,406 23 Personal 10,890 6,646 21,916 39,452 1,403,553 1,443,005 21,916 - Auto 59,128 15,019 23,085 97,232 3,314,955 3,412,187 23,085 - Other 432 714 12,621 13,767 115,439 129,206 12,448 173 Total $ 344,648 $ 117,801 $ 1,028,644 $ 1,491,093 $ 27,749,464 $ 29,240,557 $ 547,877 $ 480,767 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ (2,010 ) $ 189 $ 2 $ (1,819 ) $ 68,053 $ 66,234 $ 2 $ - Commercial real estate: Non-owner occupied (3,572 ) 14 (337 ) (3,895 ) (655,065 ) (658,960 ) (337 ) - Owner occupied 5,985 (228 ) (4,939 ) 818 1,037,224 1,038,042 (4,939 ) - Commercial and industrial (705 ) (3,636 ) 3,801 (540 ) (149,231 ) (149,771 ) 2,880 921 Construction 715 - (485 ) 230 28,333 28,563 (485 ) - Mortgage (34,138 ) (3,884 ) (69,050 ) (107,072 ) 6,222 (100,850 ) (27,470 ) (41,580 ) Leasing 579 409 664 1,652 43,151 44,803 664 - Consumer: Credit cards 49 208 472 729 (5,004 ) (4,275 ) - 472 Home equity lines of credit 142 (19 ) (158 ) (35 ) (1,752 ) (1,787 ) (158 ) - Personal 64 96 (2,132 ) (1,972 ) 67,748 65,776 (2,132 ) - Auto (7,631 ) (3,666 ) 4,429 (6,868 ) 24,843 17,975 4,429 - Other 105 (676 ) (436 ) (1,007 ) 2,890 1,883 (410 ) (26 ) Total $ (40,417 ) $ (11,193 ) $ (68,169 ) $ (119,779 ) $ 467,412 $ 347,633 $ (27,956 ) $ (40,213 ) Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table K - Non-Performing Assets (Unaudited) Variance (Dollars in thousands) 31-Mar-22 As a % of loans HIP by category 31-Dec-21 As a % of loans HIP by category 31-Mar-21 As a % of loans HIP by category Q1 2022 vs. Q4 2021 Q1 2022 vs. Q1 2021 Non-accrual loans: Commercial $123,185 0.9 % $125,579 0.9 % $202,770 1.5 % $(2,394 ) $(79,585 ) Construction - - 485 0.1 22,400 2.5 (485 ) (22,400 ) Leasing 3,766 0.3 3,102 0.2 3,040 0.2 664 726 Mortgage 328,386 4.5 355,856 4.8 405,574 5.2 (27,470 ) (77,188 ) Auto 27,514 0.8 23,085 0.7 15,405 0.5 4,429 12,109 Consumer 37,070 1.4 39,770 1.5 48,953 1.9 (2,700 ) (11,883 ) Total non-performing loans held-in-portfolio 519,921 1.8 % 547,877 1.9 % 698,142 2.4 % (27,956 ) (178,221 ) Non-performing loans held-for-sale [1] - - 3,549 - (3,549 ) Other real estate owned (“OREO”) 90,567 85,077 72,060 5,490 18,507 Total non-performing assets $610,488 $632,954 $773,751 $(22,466 ) $(163,263 ) Accruing loans past due 90 days or more [2] $440,554 $480,767 $832,756 $(40,213 ) $(392,202 ) Ratios: Non-performing assets to total assets 0.88 % 0.84 % 1.16 % Non-performing loans held-in-portfolio to loans held-in-portfolio 1.76 1.87 2.40 Allowance for credit losses to loans held-in-portfolio 2.29 2.38 2.75 Allowance for credit losses to non-performing loans, excluding loans held-for-sale 130.36 126.92 114.70 [1] There were no non-performing loans held-for-sale as of March 31, 2022 and December 31, 2021 (March 31, 2021 - $4 million in commercial loans). [2] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. The balance of these loans includes $13 million at March 31, 2022, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (December 31, 2021 - $13 million; March 31, 2021 - $29 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on the financial statements of BPPR with an offsetting liability. These balances include $266 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2022 (December 31, 2021 - $304 million; March 31, 2021 - $341 million). Furthermore, the Corporation has approximately $45 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (December 31, 2021 - $50 million; March 31, 2021 - $58 million). Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table L - Activity in Non-Performing Loans (Unaudited) Commercial loans held-in-portfolio: Quarter ended Quarter ended 31-Mar-22 31-Dec-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $120,047 $5,532 $125,579 $183,394 $2,787 $186,181 Plus: New non-performing loans 6,127 2,999 9,126 2,297 3,208 5,505 Advances on existing non-performing loans - 2,505 2,505 - 35 35 Less: Non-performing loans transferred to OREO (3,052 ) - (3,052 ) (996 ) - (996 ) Non-performing loans charged-off (256 ) (73 ) (329 ) (2,412 ) (66 ) (2,478 ) Loans returned to accrual status / loan collections (5,084 ) (5,560 ) (10,644 ) (62,236 ) (432 ) (62,668 ) Ending balance NPLs $117,782 $5,403 $123,185 $120,047 $5,532 $125,579 Construction loans held-in-portfolio: Quarter ended Quarter ended 31-Mar-22 31-Dec-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $485 $- $485 $14,877 $- $14,877 Plus: New non-performing loans - - - 481 - 481 Less: Loans returned to accrual status / loan collections (485 ) - (485 ) (14,873 ) - (14,873 ) Ending balance NPLs $- $- $- $485 $- $485 Mortgage loans held-in-portfolio: Quarter ended Quarter ended 31-Mar-22 31-Dec-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $333,887 $21,969 $355,856 $354,555 $14,488 $369,043 Plus: New non-performing loans 38,193 4,800 42,993 36,210 12,084 48,294 Advances on existing non-performing loans - 134 134 - 14 14 Less: Non-performing loans transferred to OREO (10,344 ) (85 ) (10,429 ) (7,116 ) - (7,116 ) Non-performing loans charged-off (467 ) - (467 ) (366 ) (26 ) (392 ) Loans returned to accrual status / loan collections (54,709 ) (4,992 ) (59,701 ) (49,396 ) (4,591 ) (53,987 ) Ending balance NPLs $306,560 $21,826 $328,386 $333,887 $21,969 $355,856 Total non-performing loans held-in-portfolio (excluding consumer): Quarter ended Quarter ended 31-Mar-22 31-Dec-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $454,419 $27,501 $481,920 $552,826 $17,275 $570,101 Plus: New non-performing loans 44,320 7,799 52,119 38,988 15,292 54,280 Advances on existing non-performing loans - 2,639 2,639 - 49 49 Less: Non-performing loans transferred to OREO (13,396 ) (85 ) (13,481 ) (8,112 ) - (8,112 ) Non-performing loans charged-off (723 ) (73 ) (796 ) (2,778 ) (92 ) (2,870 ) Loans returned to accrual status / loan collections (60,278 ) (10,552 ) (70,830 ) (126,505 ) (5,023 ) (131,528 ) Ending balance NPLs $424,342 $27,229 $451,571 $454,419 $27,501 $481,920 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios (Unaudited) Quarters ended (Dollars in thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Balance at beginning of period - loans held-in-portfolio $695,366 $718,575 $896,250 Provision for credit losses (benefit) (14,405 ) (31,421 ) (75,779 ) Initial allowance for credit losses - PCD Loans 612 331 1,356 681,573 687,485 821,827 Net loans charged-off (recovered): BPPR Commercial (4,230 ) (11,346 ) (1,434 ) Construction (416 ) (1,518 ) 5,917 Lease financing (434 ) 564 118 Mortgage (2,992 ) (4,398 ) 8,303 Consumer 13,574 9,083 6,570 Total BPPR 5,502 (7,615 ) 19,474 Popular U.S. Commercial (627 ) (387 ) 16 Construction (1,128 ) (213 ) - Mortgage (20 ) 569 (80 ) Consumer 54 (235 ) 1,620 Total Popular U.S. (1,721 ) (266 ) 1,556 Total loans charged-off (recovered) - Popular, Inc. 3,781 (7,881 ) 21,030 Balance at end of period - loans held-in-portfolio $677,792 $695,366 $800,797 Balance at beginning of period - unfunded commitments $7,897 $8,400 $15,851 Provision for credit losses (benefit) (843 ) (503 ) (6,282 ) Balance at end of period - unfunded commitments [1] $7,054 $7,897 $9,569 POPULAR, INC. Annualized net charge-offs (recoveries) to average loans held-in-portfolio 0.05 % (0.11 ) % 0.29 % Provision for credit losses (benefit) - loan portfolios to net charge-offs (380.98 ) % N.M. (360.34 ) % BPPR Annualized net charge-offs (recoveries) to average loans held-in-portfolio 0.11 % (0.15 ) % 0.36 % Provision for credit losses (benefit) - loan portfolios to net charge-offs (230.12 ) % N.M. (205.28 ) % Popular U.S. Annualized net charge-offs to average loans held-in-portfolio (0.08 ) % (0.01 ) % 0.08 % Provision for credit losses (benefit) - loan portfolios to net charge-offs 101.34 % N.M. N.M. N.M. - Not meaningful. [1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table N - Allowance for Credit Losses "ACL"- Loan Portfolios - CONSOLIDATED (Unaudited) 31-Mar-22 (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $204,643 $6,539 $149,206 $18,398 $299,006 $677,792 Total loans held-in-portfolio $14,028,246 $744,783 $7,326,346 $1,426,122 $6,062,693 $29,588,190 ACL to loans held-in-portfolio 1.46 % 0.88 % 2.04 % 1.29 % 4.93 % 2.29 % 31-Dec-21 (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $215,805 $6,363 $154,478 $17,578 $301,142 $695,366 Total loans held-in-portfolio $13,732,701 $716,220 $7,427,196 $1,381,319 $5,983,121 $29,240,557 ACL to loans held-in-portfolio 1.57 % 0.89 % 2.08 % 1.27 % 5.03 % 2.38 % Variance (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $(11,162 ) $176 $(5,272 ) $820 $(2,136 ) $(17,574 ) Total loans held-in-portfolio $295,545 $28,563 $(100,850 ) $44,803 $79,572 $347,633 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table O - Allowance for Credit Losses "ACL"- Loan Portfolios - PUERTO RICO OPERATIONS (Unaudited) 31-Mar-22 Puerto Rico (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $145,471 $2,414 $131,362 $18,398 $278,966 $576,611 Loans held-in-portfolio $7,557,755 $127,325 $6,123,663 $1,426,122 $5,777,394 $21,012,259 ACL to loans held-in-portfolio 1.92 % 1.90 % 2.15 % 1.29 % 4.83 % 2.74 % 31-Dec-21 Puerto Rico (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $151,928 $1,641 $138,286 $17,578 $284,729 $594,162 Loans held-in-portfolio $7,396,869 $87,111 $6,251,866 $1,381,319 $5,748,217 $20,865,382 ACL to loans held-in-portfolio 2.05 % 1.88 % 2.21 % 1.27 % 4.95 % 2.85 % Variance (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $(6,457 ) $773 $(6,924 ) $820 $(5,763 ) $(17,551 ) Loans held-in-portfolio $160,886 $40,214 $(128,203 ) $44,803 $29,177 $146,877 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table P - Allowance for Credit Losses "ACL"- Loan Portfolios - POPULAR U.S. OPERATIONS (Unaudited) 31-Mar-22 Popular U.S. (In thousands) Commercial Construction Mortgage Consumer Total ACL $59,172 $4,125 $17,844 $20,040 $101,181 Loans held-in-portfolio $6,470,491 $617,458 $1,202,683 $285,299 $8,575,931 ACL to loans held-in-portfolio 0.91 % 0.67 % 1.48 % 7.02 % 1.18 % 31-Dec-21 Popular U.S. (In thousands) Commercial Construction Mortgage Consumer Total ACL $63,877 $4,722 $16,192 $16,413 $101,204 Loans held-in-portfolio $6,335,832 $629,109 $1,175,330 $234,904 $8,375,175 ACL to loans held-in-portfolio 1.01 % 0.75 % 1.38 % 6.99 % 1.21 % Variance (In thousands) Commercial Construction Mortgage Consumer Total ACL $(4,705 ) $(597 ) $1,652 $3,627 $(23 ) Loans held-in-portfolio $134,659 $(11,651 ) $27,353 $50,395 $200,756 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table Q - Reconciliation to GAAP Financial Measures (Unaudited) (In thousands, except share or per share information) 31-Mar-22 31-Dec-21 31-Mar-21 Total stockholders’ equity $4,671,246 $5,969,397 $5,897,559 Less: Preferred stock (22,143 ) (22,143 ) (22,143 ) Less: Goodwill (720,293 ) (720,293 ) (671,122 ) Less: Other intangibles (15,328 ) (16,219 ) (21,415 ) Total tangible common equity $3,913,482 $5,210,742 $5,182,879 Total assets $69,525,082 $75,097,899 $66,870,268 Less: Goodwill (720,293 ) (720,293 ) (671,122 ) Less: Other intangibles (15,328 ) (16,219 ) (21,415 ) Total tangible assets $68,789,461 $74,361,387 $66,177,731 Tangible common equity to tangible assets 5.69 % 7.01 % 7.83 % Common shares outstanding at end of period 76,487,523 79,851,169 84,379,180 Tangible book value per common share $51.16 $65.26 $61.42 Quarterly average Total stockholders’ equity [1] $5,983,309 $5,961,214 $5,693,672 Less: Preferred Stock (22,143 ) (22,143 ) (22,143 ) Less: Goodwill (720,292 ) (706,184 ) (671,121 ) Less: Other intangibles (15,881 ) (19,889 ) (22,104 ) Total tangible equity $5,224,993 $5,212,998 $4,978,304 Return on average tangible common equity 16.40 % 15.66 % 21.37 % [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/20220426005090/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 First Quarter 2022 Financial Results By: Popular, Inc. via Business Wire April 26, 2022 at 08:00 AM EDT Net income of $211.7 million in Q1 2022, compared to net income of $206.1 million in Q4 2021. Net interest margin of 2.75% in Q1 2022, compared to 2.78% in Q4 2021; net interest margin on a taxable equivalent basis of 3.05% in Q1 2022, compared to 3.02% in Q4 2021. Credit Quality: Non-performing loans held-in-portfolio (“NPLs”) decreased by $28.0 million from Q4 2021; NPLs to loans ratio at 1.8% vs. 1.9% in Q4 2021; Net charge-offs (“NCOs”) were $3.8 million, compared to a net recovery of $7.9 million in Q4 2021; NCOs at 0.05% of average loans held-in-portfolio vs. (0.11%) in Q4 2021; Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.29% vs. 2.38% in Q4 2021; and ACL to NPLs at 130.4% vs. 126.9% in Q4 2021. Common Equity Tier 1 ratio of 16.26%, Common Equity per Share of $60.78 and Tangible Book Value per Share of $51.16 at March 31, 2022. Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $211.7 million for the quarter ended March 31, 2022, compared to net income of $206.1 million for the quarter ended December 31, 2021. Ignacio Alvarez, President and Chief Executive Officer, said: “We had a solid quarter with net income of $212 million, building on the momentum of our record 2021 results. We saw broad-based loan growth, across geographies and most business lines, while maintaining strong asset quality metrics. Net charge-offs were five basis points for the quarter. We continued to see deposit growth from our private sector clients. Our deposit franchise in Puerto Rico will be an even greater source of strength as interest rates rise as expected. Our capital ratios remained strong, allowing us to continue to return capital to our shareholders and increase our common stock dividend. Going forward, we remain optimistic about the economic outlook, yet cognizant of the possible challenges to the macroeconomic environment resulting from the war in Ukraine, inflation and the evolving health situation. I am thankful to our team who have continued to perform at a high level and deliver results under a myriad of changing conditions. Finally, our thoughts and prayers are with the people of Ukraine as they suffer the horrible consequences of the war.” Earnings Highlights (Unaudited) Quarters ended (Dollars in thousands, except per share information) 31-Mar-22 31-Dec-21 31-Mar-21 Net interest income $494,312 $501,283 $479,112 Provision for credit losses (benefit) (15,500 ) (33,050 ) (82,226 ) Net interest income after provision for credit losses (benefit) 509,812 534,333 561,338 Other non-interest income 154,692 164,677 153,653 Operating expenses 402,339 417,394 375,528 Income before income tax 262,165 281,616 339,463 Income tax expense 50,479 75,552 76,831 Net income $211,686 $206,064 $262,632 Net income applicable to common stock $211,333 $205,711 $262,279 Net income per common share - Basic $2.69 $2.59 $3.13 Net income per common share - Diluted $2.69 $2.58 $3.12 Significant Events Entry into Asset Purchase Agreement with Evertec; Renegotiation and Extension of Commercial Agreements On February 24, 2022, the Corporation and Banco Popular de Puerto Rico (“BPPR”), entered into an Asset Purchase Agreement (the “Purchase Agreement”), with Evertec, Inc. (“EVERTEC”) and Evertec Group, LLC, a wholly owned subsidiary of EVERTEC (“EVERTEC Group”), pursuant to which BPPR will purchase from EVERTEC Group certain information technology and related assets currently used by EVERTEC to service certain of BPPR’s key channels (the “Acquired Assets”) under the Amended and Restated Master Service Agreement (the “MSA”), dated September 30, 2010, among the Corporation, BPPR and EVERTEC. In connection with the purchase of the Acquired Assets, BPPR will assume certain liabilities relating to the Acquired Assets (together with the purchase of the Acquired Assets, the “Transaction”). The Transaction is expected to close on or about June 30, 2022, subject to the satisfaction of certain closing conditions. In connection with the consummation of the Transaction (the “Closing”), the Corporation will transfer to EVERTEC Group, as consideration for the Transaction, shares of EVERTEC’s common stock (“EVERTEC Common Stock”) having an aggregate value of approximately $197 million, subject to certain purchase price adjustments, based on a price per share of $42.84, which value was determined at the time of entering into the Purchase Agreement. As a result of this transfer, the Corporation expects that its percentage ownership of the outstanding shares of EVERTEC Common Stock will be reduced from its current level, which is approximately 16.2%, to approximately 10.5% immediately following the Closing. As part of the transaction, the Corporation has also agreed to reduce its voting interest in EVERTEC below 4.5%, whether through selling shares of EVERTEC common stock or a conversion of such shares into non-voting preferred stock. The Corporation expects to sell down its stake in EVERTEC below 4.5% following the closing and intends to return to shareholders, via common stock repurchases, the after-tax gains resulting from such sale, subject to the receipt of regulatory approvals. Additionally, as part of the Closing, the Corporation and BPPR will also enter with EVERTEC into, among other commercial agreements, a Second Amended and Restated Master Services Agreement (the “Second A&R MSA”), pursuant to which EVERTEC Group will continue to provide various key information technology and various transaction processing services to the Corporation, BPPR and their respective subsidiaries, which services are provided under the currently effective MSA. Capital Actions On March 1, 2022 the Corporation announced that on February 28, 2022 it entered into an accelerated share repurchase agreement (the “ASR Agreement”) to repurchase an aggregate of $400 million of Popular’s common stock. Popular previously disclosed in a press release on January 12, 2022 its plan to repurchase up to $500 million of its common stock as part of its planned capital actions for 2022. Under the terms of the ASR Agreement, on March 2, 2022 the Corporation made an initial payment of $400 million and received an initial delivery of 3,483,942 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 $320 million in treasury stock and $80 million as a reduction of 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 2022. Popular expects to execute during the remainder of the year, in the open market or in privately negotiated transactions, the remaining $100 million in common stock repurchases contemplated as part of the Corporation’s 2022 capital actions announced in January 2022. The timing and exact amount of such additional repurchases will be subject to various factors, including market conditions and the Corporation’s capital position and financial performance. On February 23, 2022, the Corporation’s Board of Directors approved a quarterly cash dividend of $0.55 per share, an increase from the previous $0.45 per share quarterly dividend, on its outstanding common stock. The dividend was paid on April 1, 2022 to shareholders of record at the close of business on March 15, 2022. 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 for the quarter ended March 31, 2022, 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 March 31, 2022 was $494.3 million compared to $501.3 million in the previous quarter, a decrease of $7.0 million. Net interest income, on a taxable equivalent basis, for the first quarter of 2022 was $548.1 million, an increase of $4.2 million when compared to $543.9 million in the last quarter of 2021. The increase in the taxable equivalent adjustment results from BPPR’s higher volume of tax-free investment securities in Puerto Rico. Net interest margin for the quarter was 2.75% compared to 2.78% in the last quarter of 2021. On a taxable equivalent basis, net interest margin for the first quarter of 2022 was 3.05% compared to 3.02% in the fourth quarter of 2021. The main variances in net interest income on a taxable equivalent basis were: higher interest income from money markets, trading and investment securities by $18.4 million resulting from a higher volume by $540 million, in turn driven by an increase in the average U.S. Treasury portfolio by $4.2 billion, partially offset by lower volume of money market investments by $3.1 billion and higher yields by 17 basis points driven by higher market rates and the composition of the portfolio; and higher interest income from consumer loans mainly driven by a higher average volume in both P.R. and the U.S. partially offset by: lower interest income from commercial loans by $16.5 million resulting from lower income form loans under the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) by $12.6 million, lower interest income from the repayment of purchased credit deteriorated (“PCD”) loans and the impact of 2 fewer days in the quarter or approximately $4.1 million. This negative effect was offset in part by an increase of $346 million in the average volume of commercial loans, at both P.R. and the U.S segments, for a $4.4 million benefit; a decrease in auto and lease financing income of $1.6 million mainly driven by two fewer days in the quarter when compared to the prior quarter, partially offset by higher loan volume by $62 million. The Corporation recognized income of $10.6 million related to loans issued under the SBA PPP, compared to $23.2 million in the previous quarter. These loans carried a yield of approximately 17.01% in this quarter, including the amortization of fees received under the program, compared to 17.86% last quarter. This portfolio of loans issued under the SBA PPP declined by $141 million in BPPR to a balance of $114 million and declined by $39 million in Popular Bank (“PB” or “Popular U.S.”) to a balance of $59 million. On March 31, 2022, the portfolio at BPPR and PB had a remaining aggregate balance of unamortized fees of $8.1 million. Net interest income for the BPPR segment amounted to $415.2 million for the first quarter of 2022, compared to $425.9 million for the fourth quarter of 2021. Net interest margin for the first quarter of 2022 was 2.67% a decrease of 6 basis points when compared to 2.73% for the previous quarter. As discussed above, net interest margin was negatively impacted by lower SBA PPP income and lower payment of PCD loans, partially offset by the positive impact of higher investment securities balances. The cost of interest-bearing and total deposits remained unchanged from the previous quarter at 0.16% and 0.12%, respectively. Net interest income for PB was $86.5 million for the quarter ended March 31, 2022, compared to $83.2 million during the previous quarter. Net interest margin for the quarter was 3.56% compared to 3.47% the previous quarter. The increase in net interest income results mainly from a higher volume of commercial and consumer loans. The lower cost on deposits also resulted in a benefit to PB’s net interest margin. The cost of interest-bearing deposits was 0.46% or 6 basis points lower than the 0.52% reported in the last quarter of 2021, while the total cost of deposits, including demand deposits, was 0.36%, compared to 0.40% in the previous quarter. Non-interest income Non-interest income decreased by $10.0 million to $154.7 million for the quarter ended March 31, 2022, compared to $164.7 million for the quarter ended December 31, 2021. The variance in non-interest income was primarily driven by: lower other service fees by $6.7 million, mainly due to lower insurance fees by $3.7 million principally resulting from contingent insurance commissions that are typically recognized during the fourth quarter and lower credit card fees by $2.0 million mainly in interchange income due to seasonal purchasing activity in the previous quarter; and lower income from mortgage banking activities by $4.2 million mainly due to a loss on sale of loans and securitization activities of $1.5 million, compared to a gain of $5.4 in the previous quarter due to a lower volume of transactions and lower market rates, partially offset by higher realized gains on closed derivative positions by $3.4 million; partially offset by: higher other operating income by $4.9 million mainly due to higher earnings from the portfolio of equity method investments and higher income from the sale of auto rental units. Refer to Table B for further details. Operating expenses Operating expenses for the first quarter of 2022 totaled $402.3 million, a decrease of $15.1 million when compared to the fourth quarter of 2021. The variance in operating expenses was driven primarily by: lower net occupancy expenses by $2.0 million due to lower rent and electricity expenses; lower business promotion expenses by $10.8 million mainly due to lower advertising and promotion expenses by $5.7 million a result of seasonal activities during the fourth quarter of 2021, lower donations by $2.8 million and lower credit cards rewards expense as a result of transactional volumes by $1.7 million; lower other operating expenses by $11.4 million due to the effect during the previous quarter of an impairment charge on undeveloped properties by $5.0 million and lower sundry losses by $5.0 million mainly related to the termination of a white label credit card contract during prior quarter; and lower amortization of intangibles by $5.2 million due to an impairment write-down of a trademark during the fourth quarter of 2021. partially offset by: higher personnel cost by $6.5 million mainly due to higher performance shares and restricted stock expenses by $6.3 million; higher payroll taxes by $5.1 million; partially offset by $3.1 million in lower incentives related to the profit-sharing plan which is tied to the Corporation’s financial performance; higher professional fees by $3.4 million mainly due to higher advisory expenses related to corporate initiatives; and higher credit and debit card processing and other expenses by $3.8 million due in part to lower volume incentives. Full-time equivalent employees were 8,492 as of March 31, 2022, compared to 8,351 as of December 31, 2021. For a breakdown of operating expenses by category refer to Table B. Income taxes For the quarter ended March 31, 2022, the Corporation recorded an income tax expense of $50.5 million, compared to $75.6 million for the previous quarter. The decrease in income tax expense was mainly attributable to lower income before tax and higher exempt income during the first quarter of 2022. The effective tax rate (“ETR”) for the first quarter of 2022 was 19.3%, compared to 27% in the fourth quarter of 2021. The ETR of the Corporation is impacted by the composition and source of its taxable income. The Corporation expects its ETR for the year 2022 to be within a range from 18% to 20%. Credit Quality During the first quarter of 2022, the Corporation continued to exhibit strong credit quality trends and low credit costs with low level of NCOs and decreasing NPLs. We continue to closely monitor changes on borrower performance and in the pace of economic recovery, given the rising interest rate environment and geopolitical uncertainty. 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 first quarter of 2022: At March 31, 2022, total non-performing loans held-in-portfolio decreased by $28.0 million from December 31, 2021. BPPR’s NPLs decreased by $27.5 million, mostly driven by lower mortgage NPLs by $27.3 million. The mortgage NPLs decrease was mainly due to the combined effects of collection efforts, increased foreclosure activity and the sustained low levels of early delinquency compared with pre-pandemic trends. PB’s NPLs remained flat quarter-over-quarter. At March 31, 2022, the ratio of NPLs to total loans held-in-portfolio was 1.8%, compared to 1.9% in the fourth quarter of 2021. Inflows of NPLs held-in-portfolio, excluding consumer loans, remained flat quarter-over-quarter. In BPPR, total inflows increased by $5.3 million, mostly driven by higher commercial and mortgage inflows of $3.8 million and $2.0 million, respectively. Mortgage inflows continued trending lower than pre-pandemic levels. NPL inflows at PB decreased by $4.9 million during the quarter, mostly driven by a decrease of $7.2 million in mortgage inflows, as the prior quarter included the impact of loans that did not resume payment after the end of COVID-19-related payment deferral periods. NCOs amounted to $3.8 million, an unfavorable variance of $11.7 million when compared to the fourth quarter. BPPR‘s NCOs increased by $13.1 million, as the prior quarter included recoveries from the resolution of certain commercial non-performing loans. During the first quarter of 2022, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.05%, compared to (0.11%) in the fourth quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios. At March 31, 2022, the ACL decreased by $17.6 million, or 2.5%, from the fourth quarter of 2021 to $677.8 million. The ACL incorporated updated macroeconomic scenarios for Puerto Rico and the United States. Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The baseline scenario continues to be assigned the highest probability, followed by the pessimistic scenario. The current baseline forecast continues to show a favorable economic scenario. 2022 annualized GDP growth of 3.5% and 3.7% is expected for Puerto Rico and United States, respectively. This represents a reduction for both Puerto Rico and United States since last quarter’s GDP growth forecast was 4.0% and 4.6%, respectively. Changes in assumptions related to fiscal stimulus and higher energy prices contributed to the reduction. The 2022 average unemployment rate is forecasted at 7.3% and 3.6% for Puerto Rico and United States, respectively. This is consistent with previous expectations for both regions. Puerto Rico’s unemployment rate forecast benefits from the Bureau of Labor Statistics (“BLS”) revisions that show a stronger than expected labor market. In BPPR, the ACL decreased by $17.6 million, mainly driven by reductions in qualitative reserves due to substantial improvements in employment levels in Puerto Rico. Recent updates by the BLS show that employment levels in Puerto Rico have already surpassed pre-pandemic levels. This contributed to a lower commercial, mortgage and consumer loans ACL. The decrease in qualitative reserves was partially offset by the impact of higher loan volumes and changes in the macroeconomic scenario. The ACL for the PB segment remained flat quarter-over-quarter as higher loan volumes in both the commercial real estate and consumer portfolios offset reductions in qualitative reserves. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.29% in the first quarter of 2022, compared to 2.38% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 130.4%, compared to 126.9% in the previous quarter. The provision for credit losses for the loan portfolios for the first quarter of 2022 reflected a benefit of $14.4 million, compared to a benefit of $31.4 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was a benefit of $12.7 million, compared to a benefit of $30.6 million in the previous quarter, while the provision for the PB segment was a benefit of $1.7 million, compared to a benefit of $0.9 million in the previous quarter. The provision for unfunded commitments for the first quarter of 2022 reflected a benefit of $0.8 million, compared to a benefit of $0.5 million in the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $0.3 million, compared to a benefit of $1.1 million in the fourth quarter of 2021. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations. Non-Performing Assets (Unaudited) (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Non-performing loans held-in-portfolio $519,921 $547,877 $698,142 Non-performing loans held-for-sale - - 3,549 Other real estate owned (“OREO”) 90,567 85,077 72,060 Total non-performing assets $610,488 $632,954 $773,751 Net charge-offs (recoveries) for the quarter $3,781 $(7,881 ) $21,030 Ratios: Loans held-in-portfolio $29,588,190 $29,240,557 $29,131,628 Non-performing loans held-in-portfolio to loans held-in-portfolio 1.76 % 1.87 % 2.40 % Allowance for credit losses to loans held-in-portfolio 2.29 2.38 2.75 Allowance for credit losses to non-performing loans, excluding loans held-for-sale 130.36 126.92 114.70 Refer to Table K for additional information. Provision for Credit Losses (Benefit) - Loan Portfolios (Unaudited) Quarters ended (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Provision for credit losses (benefit) - loan portfolios: BPPR $(12,661 ) $(30,562 ) $(39,976 ) Popular U.S. (1,744 ) (859 ) (35,803 ) Total provision for credit losses (benefit) - loan portfolios $(14,405 ) $(31,421 ) $(75,779 ) Credit Quality by Segment (Unaudited) (In thousands) Quarters ended BPPR 31-Mar-22 31-Dec-21 31-Mar-21 Provision for credit losses (benefit) - loan portfolios $(12,661 ) $(30,562 ) $(39,976 ) Net charge-offs (recoveries) 5,502 (7,615 ) 19,474 Total non-performing loans held-in-portfolio 486,816 514,289 665,978 Allowance / loans held-in-portfolio 2.74 % 2.85 % 3.20 % Allowance / non-performing loans held-in-portfolio 118.45 % 115.53 % 102.35 % Quarters ended Popular U.S. 31-Mar-22 31-Dec-21 31-Mar-21 Provision for credit losses (benefit) - loan portfolios $(1,744 ) $(859 ) $(35,803 ) Net charge-offs (recoveries) (1,721 ) (266 ) 1,556 Total non-performing loans held-in-portfolio 33,105 33,588 32,164 Allowance / loans held-in-portfolio 1.18 % 1.21 % 1.53 % Allowance / non-performing loans held-in-portfolio 305.64 % 301.31 % 370.42 % Financial Condition Highlights (Unaudited) (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Cash and money market investments $10,508,840 $17,965,152 $12,064,592 Investment securities 26,658,289 25,267,418 23,076,488 Loans 29,588,190 29,240,557 29,131,628 Total assets 69,525,082 75,097,899 66,870,268 Deposits 62,862,295 67,005,088 58,742,801 Borrowings 1,060,706 1,155,166 1,311,064 Total liabilities 64,853,836 69,128,502 60,972,709 Stockholders’ equity 4,671,246 5,969,397 5,897,559 Total assets decreased by $5.6 billion from the fourth quarter of 2021, driven by: a decrease of $7.5 billion in money market investments, mainly due to lower Puerto Rico public sector deposits and purchases of U.S. Treasury securities; partially offset by: an increase of $1.4 billion in debt securities available-for-sale, mainly due to purchases of U.S. Treasury securities, offset in part by maturities and paydowns of U.S. Treasury and agency mortgage-backed securities; and an increase in loans held-in-portfolio by $0.4 billion, mainly due to loan growth in the commercial portfolios in both Puerto Rico and the U.S. (mainly in the health care sector at PB) and construction portfolios, and purchases of third-party lending consumer loans, partially offset by a decrease in the mortgage portfolio, mainly due to loan payoffs and amortizations. Total liabilities decreased by $4.3 billion from the fourth quarter of 2021, driven by: a decrease of $4.1 billion in deposits, mainly due to lower Puerto Rico public sector deposits by $5.5 billion at BPPR as a result of the payments made by Puerto Rico pursuant to the Plan of Adjustment for Puerto Rico under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”); and a decrease in borrowings of $94 million, mainly due to the maturity during this quarter of $75 million in short-term borrowings. Stockholders' equity decreased by $1.3 billion from the fourth quarter of 2021, principally due to an increase in accumulated unrealized losses on debt securities available-for-sale by $1.1 billion due to a decline in fair value of fixed-rate debt securities as a result of the rising interest rate environment, the impact of the $400 million ASR and declared quarterly common stock dividends, partially offset by the net income of $211.7 million for the quarter. Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.26%, $60.78 and $51.16, respectively, at March 31, 2022, compared to 17.42%, $74.48 and $65.26 at December 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, new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic (including the appearance of new strains of the virus), actions taken by governmental authorities in response thereto, and the direct and indirect impact of the pandemic on Popular, our customers, service providers and third parties. Other factors include the length of time necessary for Popular to consummate the Transaction; the ability to satisfy the conditions to the closing thereof; the receipt of any regulatory approvals necessary to effect the Transaction and the contemplated return to shareholders of net gains resulting from a sale of EVERTEC shares effected in connection with the consummation of the Transaction; the ability to successfully transition and integrate the assets acquired as part of the Transaction, related operations, employees and third party contractors; unexpected costs, including, without limitation, costs due to exposure to any unrecorded liabilities or issues not identified during due diligence investigation of the Transaction or that are not subject to indemnification or reimbursement by EVERTEC; risks that Popular may be affected by operational and other risks arising from the acquisition of the acquired assets or by adverse effects on relationships with customers, employees and service providers and business and other risks arising from the extension of Popular’s current commercial agreements with EVERTEC. 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, 2021, and in our Form 10-Q for the quarter ended March 31, 2022 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 Tuesday, April 26, 2022 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 1-844-200-6205 (Toll Free) or 1-646-904-5544 (Local). The dial-in access code is 659646. 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 Tuesday, May 24, 2022. The replay dial-in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 408334. An electronic version of this press release can be found at the Corporation’s website: www.popular.com. Popular, Inc. Financial Supplement to First Quarter 2022 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 [Left Blank] Table F - Mortgage Banking Activities & 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 First Quarter 2022 Earnings Release Table A - Selected Ratios and Other Information (Unaudited) Quarters ended 31-Mar-22 31-Dec-21 31-Mar-21 Basic EPS $2.69 $2.59 $3.13 Diluted EPS $2.69 $2.58 $3.12 Average common shares outstanding 78,443,706 79,477,823 83,899,769 Average common shares outstanding - assuming dilution 78,595,463 79,652,836 84,051,935 Common shares outstanding at end of period 76,487,523 79,851,169 84,379,180 Market value per common share $81.74 $82.04 $70.32 Market capitalization - (In millions) $6,252 $6,551 $5,934 Return on average assets 1.14% 1.09% 1.61% Return on average common equity 14.38% 13.74% 18.76% Net interest margin (non-taxable equivalent basis) 2.75% 2.78% 3.07% Net interest margin (taxable equivalent basis) -non-GAAP 3.05% 3.02% 3.39% Common equity per share $60.78 $74.48 $69.63 Tangible common book value per common share (non-GAAP) [1] $51.16 $65.26 $61.42 Tangible common equity to tangible assets (non-GAAP) [1] 5.69% 7.01% 7.83% Return on average tangible common equity [1] 16.40% 15.66% 21.37% Tier 1 capital 16.33% 17.49% 17.15% Total capital 18.19% 19.35% 19.62% Tier 1 leverage 6.98% 7.41% 8.06% Common Equity Tier 1 capital 16.26% 17.42% 17.08% [1] Refer to Table Q for reconciliation to GAAP financial measures. POPULAR, INC. Financial Supplement to First Quarter 2022 Earnings Release Table B - Consolidated Statement of Operations (Unaudited) Quarters ended Variance Quarter ended Variance Q1 2022 Q1 2022 (In thousands, except per share information) 31-Mar-22 31-Dec-21 vs. Q4 2021 31-Mar-21 vs. Q1 2021 Interest income: Loans $426,791 $444,101 $(17,310 ) $434,649 $(7,858 ) Money market investments 6,464 6,847 (383 ) 3,112 3,352 Investment securities 96,466 88,315 8,151 85,690 10,776 Total interest income 529,721 539,263 (9,542 ) 523,451 6,270 Interest expense: Deposits 24,783 26,331 (1,548 ) 30,201 (5,418 ) Short-term borrowings 80 60 20 143 (63 ) Long-term debt 10,546 11,589 (1,043 ) 13,995 (3,449 ) Total interest expense 35,409 37,980 (2,571 ) 44,339 (8,930 ) Net interest income 494,312 501,283 (6,971 ) 479,112 15,200 Provision for credit losses (benefit) (15,500 ) (33,050 ) 17,550 (82,226 ) 66,726 Net interest income after provision for credit losses (benefit) 509,812 534,333 (24,521 ) 561,338 (51,526 ) Service charges on deposit accounts 40,713 41,613 (900 ) 39,620 1,093 Other service fees 77,134 83,793 (6,659 ) 70,628 6,506 Mortgage banking activities 12,865 17,035 (4,170 ) 17,343 (4,478 ) Net (loss) gain, including impairment, on equity securities (2,094 ) (1,454 ) (640 ) 421 (2,515 ) Net loss on trading account debt securities (723 ) (355 ) (368 ) (45 ) (678 ) Adjustments (expense) to indemnity reserves on loans sold (745 ) 1,398 (2,143 ) (698 ) (47 ) Other operating income 27,542 22,647 4,895 26,384 1,158 Total non-interest income 154,692 164,677 (9,985 ) 153,653 1,039 Operating expenses: Personnel costs Salaries 98,673 96,830 1,843 89,335 9,338 Commissions, incentives and other bonuses 31,339 27,611 3,728 33,218 (1,879 ) Pension, postretirement and medical insurance 12,783 13,971 (1,188 ) 10,924 1,859 Other personnel costs, including payroll taxes 24,201 22,060 2,141 26,002 (1,801 ) Total personnel costs 166,996 160,472 6,524 159,479 7,517 Net occupancy expenses 24,723 26,755 (2,032 ) 26,013 (1,290 ) Equipment expenses 23,479 25,180 (1,701 ) 21,575 1,904 Other taxes 15,715 15,160 555 13,959 1,756 Professional fees Collections, appraisals and other credit related fees 2,226 3,227 (1,001 ) 3,320 (1,094 ) Programming, processing and other technology services 69,374 69,647 (273 ) 66,366 3,008 Legal fees, excluding collections 3,954 3,445 509 2,365 1,589 Other professional fees 32,943 28,736 4,207 27,897 5,046 Total professional fees 108,497 105,055 3,442 99,948 8,549 Communications 6,147 6,263 (116 ) 6,833 (686 ) Business promotion 15,083 25,833 (10,750 ) 12,521 2,562 FDIC deposit insurance 7,372 6,688 684 5,968 1,404 Other real estate owned (OREO) income (2,713 ) (3,860 ) 1,147 (4,533 ) 1,820 Credit and debit card processing, volume, interchange and other expenses 12,509 8,757 3,752 12,454 55 Other operating expenses Operational losses 11,825 16,820 (4,995 ) 7,896 3,929 All other 11,815 18,226 (6,411 ) 12,364 (549 ) Total other operating expenses 23,640 35,046 (11,406 ) 20,260 3,380 Amortization of intangibles 891 6,045 (5,154 ) 1,051 (160 ) Total operating expenses 402,339 417,394 (15,055 ) 375,528 26,811 Income before income tax 262,165 281,616 (19,451 ) 339,463 (77,298 ) Income tax expense 50,479 75,552 (25,073 ) 76,831 (26,352 ) Net income $211,686 $206,064 $5,622 $262,632 $(50,946 ) Net income applicable to common stock $211,333 $205,711 $5,622 $262,279 $(50,946 ) Net income per common share - basic $2.69 $2.59 $0.10 $3.13 $(0.44 ) Net income per common share - diluted $2.69 $2.58 $0.11 $3.12 $(0.43 ) Dividends Declared per Common Share $0.55 $0.45 $0.10 $0.40 $0.15 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table C - Consolidated Statement of Financial Condition (Unaudited) Variance Q1 2022 vs. (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Q4 2021 Assets: Cash and due from banks $439,148 $428,433 $495,915 $10,715 Money market investments 10,069,692 17,536,719 11,568,677 (7,467,027 ) Trading account debt securities, at fair value 36,042 29,711 36,504 6,331 Debt securities available-for-sale, at fair value 26,359,915 24,968,269 22,771,609 1,391,646 Debt securities held-to-maturity, at amortized cost 75,984 79,461 89,725 (3,477 ) Less: Allowance for credit losses 7,844 8,096 10,096 (252 ) Total debt securities held-to-maturity, net 68,140 71,365 79,629 (3,225 ) Equity securities 186,348 189,977 178,650 (3,629 ) Loans held-for-sale, at lower of cost or fair value 55,150 59,168 84,214 (4,018 ) Loans held-in-portfolio 29,856,356 29,506,225 29,344,620 350,131 Less: Unearned income 268,166 265,668 212,992 2,498 Allowance for credit losses 677,792 695,366 800,797 (17,574 ) Total loans held-in-portfolio, net 28,910,398 28,545,191 28,330,831 365,207 Premises and equipment, net 488,390 494,240 508,023 (5,850 ) Other real estate 90,567 85,077 72,060 5,490 Accrued income receivable 204,466 203,096 215,993 1,370 Mortgage servicing rights, at fair value 125,358 121,570 122,543 3,788 Other assets 1,755,847 1,628,571 1,713,083 127,276 Goodwill 720,293 720,293 671,122 - Other intangible assets 15,328 16,219 21,415 (891 ) Total assets $69,525,082 $75,097,899 $66,870,268 $(5,572,817 ) Liabilities and Stockholders’ Equity: Liabilities: Deposits: Non-interest bearing $16,096,666 $15,684,482 $14,263,548 $412,184 Interest bearing 46,765,629 51,320,606 44,479,253 (4,554,977 ) Total deposits 62,862,295 67,005,088 58,742,801 (4,142,793 ) Assets sold under agreements to repurchase 72,819 91,603 86,834 (18,784 ) Other short-term borrowings - 75,000 - (75,000 ) Notes payable 987,887 988,563 1,224,230 (676 ) Other liabilities 930,835 968,248 918,844 (37,413 ) Total liabilities 64,853,836 69,128,502 60,972,709 (4,274,666 ) Stockholders’ equity: Preferred stock 22,143 22,143 22,143 - Common stock 1,046 1,046 1,045 - Surplus 4,571,111 4,650,182 4,571,919 (79,071 ) Retained earnings 3,143,004 2,973,745 2,489,453 169,259 Treasury stock (1,668,820 ) (1,352,650 ) (1,012,263 ) (316,170 ) Accumulated other comprehensive loss, net of tax (1,397,238 ) (325,069 ) (174,738 ) (1,072,169 ) Total stockholders’ equity 4,671,246 5,969,397 5,897,559 (1,298,151 ) Total liabilities and stockholders’ equity $69,525,082 $75,097,899 $66,870,268 $(5,572,817 ) Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER (Unaudited) Quarters ended Variance 31-Mar-22 31-Dec-21 31-Mar-21 Q1 2022 vs. Q4 2021 Q1 2022 vs. Q1 2021 ($ 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 $43,304 $144.8 1.35 % $42,764 $126.4 1.18 % $33,756 $127.8 1.52 % $540 $18.4 0.17 % $9,548 $17.0 (0.17 ) % Loans: Commercial 13,741 172.1 5.08 13,395 188.6 5.59 13,624 179.0 5.33 346 (16.5 ) (0.51 ) 117 (6.9 ) (0.25 ) Construction 726 9.8 5.45 777 10.7 5.46 911 11.9 5.30 (51 ) (0.9 ) (0.01 ) (185 ) (2.1 ) 0.15 Mortgage 7,388 96.8 5.24 7,504 96.4 5.14 7,869 98.4 5.00 (116 ) 0.4 0.10 (481 ) (1.6 ) 0.24 Consumer 2,538 70.0 11.19 2,471 68.1 10.93 2,513 70.4 11.36 67 1.9 0.26 25 (0.4 ) (0.17 ) Auto 3,460 69.3 8.12 3,432 71.3 8.24 3,203 68.2 8.63 28 (2.0 ) (0.12 ) 257 1.1 (0.51 ) Lease financing 1,393 20.7 5.95 1,359 20.3 5.97 1,215 18.4 6.04 34 0.4 (0.02 ) 178 2.3 (0.09 ) Total loans 29,246 438.7 6.06 28,938 455.4 6.26 29,335 446.3 6.15 308 (16.7 ) (0.20 ) (89 ) (7.6 ) (0.09 ) Total interest earning assets $72,550 $583.5 3.25 % $71,702 $581.8 3.23 % $63,091 $574.1 3.67 % $848 $1.7 0.02 % $9,459 $9.4 (0.42 ) % Allowance for credit losses - loan portfolio (695 ) (719 ) (890 ) 24 195 Allowance for credit losses - investment securities (8 ) (9 ) (10 ) 1 2 Other non-interest earning assets 3,782 3,844 3,895 (62 ) (113 ) Total average assets $75,629 $74,818 $66,086 $811 $9,543 Liabilities and Stockholders' Equity: Interest bearing deposits: NOW and money market $28,289 $7.3 0.10 % $28,205 $7.7 0.11 % $22,674 $8.3 0.15 % $84 $(0.4 ) (0.01 ) % $5,615 $(1.0 ) (0.05 ) % Savings 16,434 6.6 0.16 16,324 6.8 0.17 14,364 7.0 0.20 110 (0.2 ) (0.01 ) 2,070 (0.4 ) (0.04 ) Time deposits 6,737 10.9 0.66 6,793 11.8 0.69 7,265 14.9 0.83 (56 ) (0.9 ) (0.03 ) (528 ) (4.0 ) (0.17 ) Total interest-bearing deposits 51,460 24.8 0.20 51,322 26.3 0.20 44,303 30.2 0.31 138 (1.5 ) - 7,157 (5.4 ) (0.11 ) Borrowings 1,105 10.6 3.87 1,163 11.6 4.01 1,344 14.1 4.23 (58 ) (1.0 ) (0.14 ) (239 ) (3.5 ) (0.36 ) Total interest-bearing liabilities 52,565 35.4 0.27 52,485 37.9 0.29 45,647 44.3 0.39 80 (2.5 ) (0.02 ) 6,918 (8.9 ) (0.12 ) Net interest spread 2.98 % 2.94 % 3.28 % 0.04 % (0.30 ) % Non-interest bearing deposits 16,142 15,455 13,394 687 2,748 Other liabilities 939 917 1,351 22 (412 ) Stockholders' equity 5,983 5,961 5,694 22 289 Total average liabilities and stockholders' equity $75,629 $74,818 $66,086 $811 $9,543 Net interest income / margin on a taxable equivalent basis (Non-GAAP) $548.1 3.05 % $543.9 3.02 % $529.8 3.39 % $4.2 0.03 % $18.3 (0.34 ) % Taxable equivalent adjustment 53.8 42.6 50.7 11.2 3.1 Net interest income / margin non-taxable equivalent basis (GAAP) $494.3 2.75 % $501.3 2.78 % $479.1 3.07 % ($7.0 ) (0.03 ) % $15.2 (0.32 ) % Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table E – Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE [THIS PAGE INTENTIONALLY LEFT BLANK] Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table F - Mortgage Banking Activities and Other Service Fees (Unaudited) Mortgage Banking Activities Quarters ended Variance (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Q1 2022 vs.Q4 2021 Q1 2022 vs.Q1 2021 Mortgage servicing fees, net of fair value adjustments: Mortgage servicing fees $9,323 $9,492 $9,715 $(169 ) $(392 ) Mortgage servicing rights fair value adjustments 1,088 1,500 512 (412 ) 576 Total mortgage servicing fees, net of fair value adjustments 10,411 10,992 10,227 (581 ) 184 Net (loss) gain on sale of loans, including valuation on loans held-for-sale (1,534 ) 5,428 4,975 (6,962 ) (6,509 ) Trading account profit: Unrealized gains on outstanding derivative positions 2 - - 2 2 Realized gains on closed derivative positions 4,135 691 2,502 3,444 1,633 Total trading account profit 4,137 691 2,502 3,446 1,635 Losses on repurchased loans, including interest advances (149 ) (76 ) (361 ) (73 ) 212 Total mortgage banking activities $12,865 $17,035 $17,343 $(4,170 ) $(4,478 ) Other Service Fees Quarters ended Variance (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Q1 2022 vs.Q4 2021 Q1 2022 vs.Q1 2021 Other service fees: Debit card fees $11,779 $12,392 $11,577 $(613 ) $202 Insurance fees 14,156 17,848 12,828 (3,692 ) 1,328 Credit card fees 33,642 35,649 28,691 (2,007 ) 4,951 Sale and administration of investment products 5,791 5,908 5,540 (117 ) 251 Trust fees 5,927 5,858 5,842 69 85 Other fees 5,839 6,138 6,150 (299 ) (311 ) Total other service fees $77,134 $83,793 $70,628 $(6,659 ) $6,506 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table G - Loans and Deposits (Unaudited) Loans - Ending Balances Variance (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Q1 2022 vs.Q4 2021 Q1 2022 vs.Q1 2021 Loans held-in-portfolio: Commercial $14,028,246 $13,732,701 $13,442,486 $295,545 $585,760 Construction 744,783 716,220 907,736 28,563 (162,953 ) Leasing 1,426,122 1,381,319 1,244,956 44,803 181,166 Mortgage 7,326,346 7,427,196 7,808,852 (100,850 ) (482,506 ) Auto 3,430,162 3,412,187 3,203,137 17,975 227,025 Consumer 2,632,531 2,570,934 2,524,461 61,597 108,070 Total loans held-in-portfolio $29,588,190 $29,240,557 $29,131,628 $347,633 $456,562 Loans held-for-sale: Commercial $- $- $3,549 $- $(3,549 ) Mortgage 55,150 59,168 80,665 (4,018 ) (25,515 ) Total loans held-for-sale $55,150 $59,168 $84,214 $(4,018 ) $(29,064 ) Total loans $29,643,340 $29,299,725 $29,215,842 $343,615 $427,498 Deposits - Ending Balances Variance (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Q1 2022 vs. Q4 2021 Q1 2022 vs. Q1 2021 Demand deposits [1] $25,684,715 $25,889,732 $23,450,312 $(205,017 ) $2,234,403 Savings, NOW and money market deposits (non-brokered) 29,318,333 33,674,134 27,356,136 (4,355,801 ) 1,962,197 Savings, NOW and money market deposits (brokered) 768,558 729,073 679,832 39,485 88,726 Time deposits (non-brokered) 6,964,848 6,685,938 7,143,221 278,910 (178,373 ) Time deposits (brokered CDs) 125,841 26,211 113,300 99,630 12,541 Total deposits $62,862,295 $67,005,088 $58,742,801 $(4,142,793 ) $4,119,494 [1] Includes interest and non-interest bearing demand deposits. Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table H - Loan Delinquency - Puerto Rico Operations (Unaudited) 31-Mar-22 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 $ 2,130 $ 189 $ 274 $ 2,593 $ 160,648 $ 163,241 $ 274 $ - Commercial real estate: Non-owner occupied 3,646 93 20,627 24,366 2,536,174 2,560,540 20,627 - Owner occupied 4,024 50 49,732 53,806 1,396,696 1,450,502 49,732 - Commercial and industrial 1,218 169 48,167 49,554 3,333,918 3,383,472 47,149 1,018 Construction 715 - - 715 126,610 127,325 - - Mortgage 182,397 79,374 736,338 998,109 5,125,554 6,123,663 306,560 429,778 Leasing 9,819 2,446 3,766 16,031 1,410,091 1,426,122 3,766 - Consumer: Credit cards 5,817 3,728 9,049 18,594 896,966 915,560 - 9,049 Home equity lines of credit - - 23 23 3,093 3,116 - 23 Personal 10,215 6,184 19,157 35,556 1,267,920 1,303,476 19,157 - Auto 51,497 11,353 27,514 90,364 3,339,798 3,430,162 27,514 - Other 537 37 12,184 12,758 112,322 125,080 12,037 147 Total $ 272,015 $ 103,623 $ 926,831 $ 1,302,469 $ 19,709,790 $ 21,012,259 $ 486,816 $ 440,015 31-Dec-21 Puerto Rico Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 314 $ - $ 272 $ 586 $ 154,183 $ 154,769 $ 272 $ - Commercial real estate: Non-owner occupied 2,399 136 20,716 23,251 2,266,672 2,289,923 20,716 - Owner occupied 3,329 278 54,335 57,942 1,365,787 1,423,729 54,335 - Commercial and industrial 3,438 1,727 45,242 50,407 3,478,041 3,528,448 44,724 518 Construction - - 485 485 86,626 87,111 485 - Mortgage 217,830 81,754 805,245 1,104,829 5,147,037 6,251,866 333,887 471,358 Leasing 9,240 2,037 3,102 14,379 1,366,940 1,381,319 3,102 - Consumer: Credit cards 5,768 3,520 8,577 17,865 901,986 919,851 - 8,577 Home equity lines of credit 46 - 23 69 3,502 3,571 - 23 Personal 10,027 6,072 21,235 37,334 1,250,726 1,288,060 21,235 - Auto 59,128 15,019 23,085 97,232 3,314,955 3,412,187 23,085 - Other 432 714 12,621 13,767 110,781 124,548 12,448 173 Total $ 311,951 $ 111,257 $ 994,938 $ 1,418,146 $ 19,447,236 $ 20,865,382 $ 514,289 $ 480,649 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 1,816 $ 189 $ 2 $ 2,007 $ 6,465 $ 8,472 $ 2 $ - Commercial real estate: Non-owner occupied 1,247 (43 ) (89 ) 1,115 269,502 270,617 (89 ) - Owner occupied 695 (228 ) (4,603 ) (4,136 ) 30,909 26,773 (4,603 ) - Commercial and industrial (2,220 ) (1,558 ) 2,925 (853 ) (144,123 ) (144,976 ) 2,425 500 Construction 715 - (485 ) 230 39,984 40,214 (485 ) - Mortgage (35,433 ) (2,380 ) (68,907 ) (106,720 ) (21,483 ) (128,203 ) (27,327 ) (41,580 ) Leasing 579 409 664 1,652 43,151 44,803 664 - Consumer: Credit cards 49 208 472 729 (5,020 ) (4,291 ) - 472 Home equity lines of credit (46 ) - - (46 ) (409 ) (455 ) - - Personal 188 112 (2,078 ) (1,778 ) 17,194 15,416 (2,078 ) - Auto (7,631 ) (3,666 ) 4,429 (6,868 ) 24,843 17,975 4,429 - Other 105 (677 ) (437 ) (1,009 ) 1,541 532 (411 ) (26 ) Total $ (39,936 ) $ (7,634 ) $ (68,107 ) $ (115,677 ) $ 262,554 $ 146,877 $ (27,473 ) $ (40,634 ) Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table I - Loan Delinquency - Popular U.S. Operations (Unaudited) 31-Mar-22 Popular U.S. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ - $ - $ - $ - $ 1,865,623 $ 1,865,623 $ - $ - Commercial real estate: Non-owner occupied 902 740 374 2,016 1,391,874 1,393,890 374 - Owner occupied 6,385 - 677 7,062 1,398,580 1,405,642 677 - Commercial and industrial 10,925 602 4,891 16,418 1,788,918 1,805,336 4,352 539 Construction - - - - 617,458 617,458 - - Mortgage 13,006 1,069 21,826 35,901 1,166,782 1,202,683 21,826 - Consumer: Credit cards - - - - 26 26 - - Home equity lines of credit 259 15 5,248 5,522 68,437 73,959 5,248 - Personal 739 558 627 1,924 203,381 205,305 627 - Other - 1 1 2 6,007 6,009 1 - Total $ 32,216 $ 2,985 $ 33,644 $ 68,845 $ 8,507,086 $ 8,575,931 $ 33,105 $ 539 31-Dec-21 Popular U.S. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 3,826 $ - $ - $ 3,826 $ 1,804,035 $ 1,807,861 $ - $ - Commercial real estate: Non-owner occupied 5,721 683 622 7,026 2,316,441 2,323,467 622 - Owner occupied 1,095 - 1,013 2,108 392,265 394,373 1,013 - Commercial and industrial 9,410 2,680 4,015 16,105 1,794,026 1,810,131 3,897 118 Construction - - - - 629,109 629,109 - - Mortgage 11,711 2,573 21,969 36,253 1,139,077 1,175,330 21,969 - Consumer: Credit cards - - - - 10 10 - - Home equity lines of credit 71 34 5,406 5,511 69,780 75,291 5,406 - Personal 863 574 681 2,118 152,827 154,945 681 - Other - - - - 4,658 4,658 - - Total $ 32,697 $ 6,544 $ 33,706 $ 72,947 $ 8,302,228 $ 8,375,175 $ 33,588 $ 118 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ (3,826 ) $ - $ - $ (3,826 ) $ 61,588 $ 57,762 $ - $ - Commercial real estate: Non-owner occupied (4,819 ) 57 (248 ) (5,010 ) (924,567 ) (929,577 ) (248 ) - Owner occupied 5,290 - (336 ) 4,954 1,006,315 1,011,269 (336 ) - Commercial and industrial 1,515 (2,078 ) 876 313 (5,108 ) (4,795 ) 455 421 Construction - - - - (11,651 ) (11,651 ) - - Mortgage 1,295 (1,504 ) (143 ) (352 ) 27,705 27,353 (143 ) - Consumer: Credit cards - - - - 16 16 - - Home equity lines of credit 188 (19 ) (158 ) 11 (1,343 ) (1,332 ) (158 ) - Personal (124 ) (16 ) (54 ) (194 ) 50,554 50,360 (54 ) - Other - 1 1 2 1,349 1,351 1 - Total $ (481 ) $ (3,559 ) $ (62 ) $ (4,102 ) $ 204,858 $ 200,756 $ (483 ) $ 421 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table J - Loan Delinquency - Consolidated (Unaudited) 31-Mar-22 Popular, Inc. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 2,130 $ 189 $ 274 $ 2,593 $ 2,026,271 $ 2,028,864 $ 274 $ - Commercial real estate: Non-owner occupied 4,548 833 21,001 26,382 3,928,048 3,954,430 21,001 - Owner occupied 10,409 50 50,409 60,868 2,795,276 2,856,144 50,409 - Commercial and industrial 12,143 771 53,058 65,972 5,122,836 5,188,808 51,501 1,557 Construction 715 - - 715 744,068 744,783 - - Mortgage 195,403 80,443 758,164 1,034,010 6,292,336 7,326,346 328,386 429,778 Leasing 9,819 2,446 3,766 16,031 1,410,091 1,426,122 3,766 - Consumer: Credit cards 5,817 3,728 9,049 18,594 896,992 915,586 - 9,049 Home equity lines of credit 259 15 5,271 5,545 71,530 77,075 5,248 23 Personal 10,954 6,742 19,784 37,480 1,471,301 1,508,781 19,784 - Auto 51,497 11,353 27,514 90,364 3,339,798 3,430,162 27,514 - Other 537 38 12,185 12,760 118,329 131,089 12,038 147 Total $ 304,231 $ 106,608 $ 960,475 $ 1,371,314 $ 28,216,876 $ 29,588,190 $ 519,921 $ 440,554 31-Dec-21 Popular, Inc. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 4,140 $ - $ 272 $ 4,412 $ 1,958,218 $ 1,962,630 $ 272 $ - Commercial real estate: Non-owner occupied 8,120 819 21,338 30,277 4,583,113 4,613,390 21,338 - Owner occupied 4,424 278 55,348 60,050 1,758,052 1,818,102 55,348 - Commercial and industrial 12,848 4,407 49,257 66,512 5,272,067 5,338,579 48,621 636 Construction - - 485 485 715,735 716,220 485 - Mortgage 229,541 84,327 827,214 1,141,082 6,286,114 7,427,196 355,856 471,358 Leasing 9,240 2,037 3,102 14,379 1,366,940 1,381,319 3,102 - Consumer: Credit cards 5,768 3,520 8,577 17,865 901,996 919,861 - 8,577 Home equity lines of credit 117 34 5,429 5,580 73,282 78,862 5,406 23 Personal 10,890 6,646 21,916 39,452 1,403,553 1,443,005 21,916 - Auto 59,128 15,019 23,085 97,232 3,314,955 3,412,187 23,085 - Other 432 714 12,621 13,767 115,439 129,206 12,448 173 Total $ 344,648 $ 117,801 $ 1,028,644 $ 1,491,093 $ 27,749,464 $ 29,240,557 $ 547,877 $ 480,767 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ (2,010 ) $ 189 $ 2 $ (1,819 ) $ 68,053 $ 66,234 $ 2 $ - Commercial real estate: Non-owner occupied (3,572 ) 14 (337 ) (3,895 ) (655,065 ) (658,960 ) (337 ) - Owner occupied 5,985 (228 ) (4,939 ) 818 1,037,224 1,038,042 (4,939 ) - Commercial and industrial (705 ) (3,636 ) 3,801 (540 ) (149,231 ) (149,771 ) 2,880 921 Construction 715 - (485 ) 230 28,333 28,563 (485 ) - Mortgage (34,138 ) (3,884 ) (69,050 ) (107,072 ) 6,222 (100,850 ) (27,470 ) (41,580 ) Leasing 579 409 664 1,652 43,151 44,803 664 - Consumer: Credit cards 49 208 472 729 (5,004 ) (4,275 ) - 472 Home equity lines of credit 142 (19 ) (158 ) (35 ) (1,752 ) (1,787 ) (158 ) - Personal 64 96 (2,132 ) (1,972 ) 67,748 65,776 (2,132 ) - Auto (7,631 ) (3,666 ) 4,429 (6,868 ) 24,843 17,975 4,429 - Other 105 (676 ) (436 ) (1,007 ) 2,890 1,883 (410 ) (26 ) Total $ (40,417 ) $ (11,193 ) $ (68,169 ) $ (119,779 ) $ 467,412 $ 347,633 $ (27,956 ) $ (40,213 ) Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table K - Non-Performing Assets (Unaudited) Variance (Dollars in thousands) 31-Mar-22 As a % of loans HIP by category 31-Dec-21 As a % of loans HIP by category 31-Mar-21 As a % of loans HIP by category Q1 2022 vs. Q4 2021 Q1 2022 vs. Q1 2021 Non-accrual loans: Commercial $123,185 0.9 % $125,579 0.9 % $202,770 1.5 % $(2,394 ) $(79,585 ) Construction - - 485 0.1 22,400 2.5 (485 ) (22,400 ) Leasing 3,766 0.3 3,102 0.2 3,040 0.2 664 726 Mortgage 328,386 4.5 355,856 4.8 405,574 5.2 (27,470 ) (77,188 ) Auto 27,514 0.8 23,085 0.7 15,405 0.5 4,429 12,109 Consumer 37,070 1.4 39,770 1.5 48,953 1.9 (2,700 ) (11,883 ) Total non-performing loans held-in-portfolio 519,921 1.8 % 547,877 1.9 % 698,142 2.4 % (27,956 ) (178,221 ) Non-performing loans held-for-sale [1] - - 3,549 - (3,549 ) Other real estate owned (“OREO”) 90,567 85,077 72,060 5,490 18,507 Total non-performing assets $610,488 $632,954 $773,751 $(22,466 ) $(163,263 ) Accruing loans past due 90 days or more [2] $440,554 $480,767 $832,756 $(40,213 ) $(392,202 ) Ratios: Non-performing assets to total assets 0.88 % 0.84 % 1.16 % Non-performing loans held-in-portfolio to loans held-in-portfolio 1.76 1.87 2.40 Allowance for credit losses to loans held-in-portfolio 2.29 2.38 2.75 Allowance for credit losses to non-performing loans, excluding loans held-for-sale 130.36 126.92 114.70 [1] There were no non-performing loans held-for-sale as of March 31, 2022 and December 31, 2021 (March 31, 2021 - $4 million in commercial loans). [2] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. The balance of these loans includes $13 million at March 31, 2022, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (December 31, 2021 - $13 million; March 31, 2021 - $29 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on the financial statements of BPPR with an offsetting liability. These balances include $266 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2022 (December 31, 2021 - $304 million; March 31, 2021 - $341 million). Furthermore, the Corporation has approximately $45 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (December 31, 2021 - $50 million; March 31, 2021 - $58 million). Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table L - Activity in Non-Performing Loans (Unaudited) Commercial loans held-in-portfolio: Quarter ended Quarter ended 31-Mar-22 31-Dec-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $120,047 $5,532 $125,579 $183,394 $2,787 $186,181 Plus: New non-performing loans 6,127 2,999 9,126 2,297 3,208 5,505 Advances on existing non-performing loans - 2,505 2,505 - 35 35 Less: Non-performing loans transferred to OREO (3,052 ) - (3,052 ) (996 ) - (996 ) Non-performing loans charged-off (256 ) (73 ) (329 ) (2,412 ) (66 ) (2,478 ) Loans returned to accrual status / loan collections (5,084 ) (5,560 ) (10,644 ) (62,236 ) (432 ) (62,668 ) Ending balance NPLs $117,782 $5,403 $123,185 $120,047 $5,532 $125,579 Construction loans held-in-portfolio: Quarter ended Quarter ended 31-Mar-22 31-Dec-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $485 $- $485 $14,877 $- $14,877 Plus: New non-performing loans - - - 481 - 481 Less: Loans returned to accrual status / loan collections (485 ) - (485 ) (14,873 ) - (14,873 ) Ending balance NPLs $- $- $- $485 $- $485 Mortgage loans held-in-portfolio: Quarter ended Quarter ended 31-Mar-22 31-Dec-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $333,887 $21,969 $355,856 $354,555 $14,488 $369,043 Plus: New non-performing loans 38,193 4,800 42,993 36,210 12,084 48,294 Advances on existing non-performing loans - 134 134 - 14 14 Less: Non-performing loans transferred to OREO (10,344 ) (85 ) (10,429 ) (7,116 ) - (7,116 ) Non-performing loans charged-off (467 ) - (467 ) (366 ) (26 ) (392 ) Loans returned to accrual status / loan collections (54,709 ) (4,992 ) (59,701 ) (49,396 ) (4,591 ) (53,987 ) Ending balance NPLs $306,560 $21,826 $328,386 $333,887 $21,969 $355,856 Total non-performing loans held-in-portfolio (excluding consumer): Quarter ended Quarter ended 31-Mar-22 31-Dec-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $454,419 $27,501 $481,920 $552,826 $17,275 $570,101 Plus: New non-performing loans 44,320 7,799 52,119 38,988 15,292 54,280 Advances on existing non-performing loans - 2,639 2,639 - 49 49 Less: Non-performing loans transferred to OREO (13,396 ) (85 ) (13,481 ) (8,112 ) - (8,112 ) Non-performing loans charged-off (723 ) (73 ) (796 ) (2,778 ) (92 ) (2,870 ) Loans returned to accrual status / loan collections (60,278 ) (10,552 ) (70,830 ) (126,505 ) (5,023 ) (131,528 ) Ending balance NPLs $424,342 $27,229 $451,571 $454,419 $27,501 $481,920 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios (Unaudited) Quarters ended (Dollars in thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Balance at beginning of period - loans held-in-portfolio $695,366 $718,575 $896,250 Provision for credit losses (benefit) (14,405 ) (31,421 ) (75,779 ) Initial allowance for credit losses - PCD Loans 612 331 1,356 681,573 687,485 821,827 Net loans charged-off (recovered): BPPR Commercial (4,230 ) (11,346 ) (1,434 ) Construction (416 ) (1,518 ) 5,917 Lease financing (434 ) 564 118 Mortgage (2,992 ) (4,398 ) 8,303 Consumer 13,574 9,083 6,570 Total BPPR 5,502 (7,615 ) 19,474 Popular U.S. Commercial (627 ) (387 ) 16 Construction (1,128 ) (213 ) - Mortgage (20 ) 569 (80 ) Consumer 54 (235 ) 1,620 Total Popular U.S. (1,721 ) (266 ) 1,556 Total loans charged-off (recovered) - Popular, Inc. 3,781 (7,881 ) 21,030 Balance at end of period - loans held-in-portfolio $677,792 $695,366 $800,797 Balance at beginning of period - unfunded commitments $7,897 $8,400 $15,851 Provision for credit losses (benefit) (843 ) (503 ) (6,282 ) Balance at end of period - unfunded commitments [1] $7,054 $7,897 $9,569 POPULAR, INC. Annualized net charge-offs (recoveries) to average loans held-in-portfolio 0.05 % (0.11 ) % 0.29 % Provision for credit losses (benefit) - loan portfolios to net charge-offs (380.98 ) % N.M. (360.34 ) % BPPR Annualized net charge-offs (recoveries) to average loans held-in-portfolio 0.11 % (0.15 ) % 0.36 % Provision for credit losses (benefit) - loan portfolios to net charge-offs (230.12 ) % N.M. (205.28 ) % Popular U.S. Annualized net charge-offs to average loans held-in-portfolio (0.08 ) % (0.01 ) % 0.08 % Provision for credit losses (benefit) - loan portfolios to net charge-offs 101.34 % N.M. N.M. N.M. - Not meaningful. [1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table N - Allowance for Credit Losses "ACL"- Loan Portfolios - CONSOLIDATED (Unaudited) 31-Mar-22 (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $204,643 $6,539 $149,206 $18,398 $299,006 $677,792 Total loans held-in-portfolio $14,028,246 $744,783 $7,326,346 $1,426,122 $6,062,693 $29,588,190 ACL to loans held-in-portfolio 1.46 % 0.88 % 2.04 % 1.29 % 4.93 % 2.29 % 31-Dec-21 (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $215,805 $6,363 $154,478 $17,578 $301,142 $695,366 Total loans held-in-portfolio $13,732,701 $716,220 $7,427,196 $1,381,319 $5,983,121 $29,240,557 ACL to loans held-in-portfolio 1.57 % 0.89 % 2.08 % 1.27 % 5.03 % 2.38 % Variance (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $(11,162 ) $176 $(5,272 ) $820 $(2,136 ) $(17,574 ) Total loans held-in-portfolio $295,545 $28,563 $(100,850 ) $44,803 $79,572 $347,633 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table O - Allowance for Credit Losses "ACL"- Loan Portfolios - PUERTO RICO OPERATIONS (Unaudited) 31-Mar-22 Puerto Rico (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $145,471 $2,414 $131,362 $18,398 $278,966 $576,611 Loans held-in-portfolio $7,557,755 $127,325 $6,123,663 $1,426,122 $5,777,394 $21,012,259 ACL to loans held-in-portfolio 1.92 % 1.90 % 2.15 % 1.29 % 4.83 % 2.74 % 31-Dec-21 Puerto Rico (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $151,928 $1,641 $138,286 $17,578 $284,729 $594,162 Loans held-in-portfolio $7,396,869 $87,111 $6,251,866 $1,381,319 $5,748,217 $20,865,382 ACL to loans held-in-portfolio 2.05 % 1.88 % 2.21 % 1.27 % 4.95 % 2.85 % Variance (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $(6,457 ) $773 $(6,924 ) $820 $(5,763 ) $(17,551 ) Loans held-in-portfolio $160,886 $40,214 $(128,203 ) $44,803 $29,177 $146,877 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table P - Allowance for Credit Losses "ACL"- Loan Portfolios - POPULAR U.S. OPERATIONS (Unaudited) 31-Mar-22 Popular U.S. (In thousands) Commercial Construction Mortgage Consumer Total ACL $59,172 $4,125 $17,844 $20,040 $101,181 Loans held-in-portfolio $6,470,491 $617,458 $1,202,683 $285,299 $8,575,931 ACL to loans held-in-portfolio 0.91 % 0.67 % 1.48 % 7.02 % 1.18 % 31-Dec-21 Popular U.S. (In thousands) Commercial Construction Mortgage Consumer Total ACL $63,877 $4,722 $16,192 $16,413 $101,204 Loans held-in-portfolio $6,335,832 $629,109 $1,175,330 $234,904 $8,375,175 ACL to loans held-in-portfolio 1.01 % 0.75 % 1.38 % 6.99 % 1.21 % Variance (In thousands) Commercial Construction Mortgage Consumer Total ACL $(4,705 ) $(597 ) $1,652 $3,627 $(23 ) Loans held-in-portfolio $134,659 $(11,651 ) $27,353 $50,395 $200,756 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table Q - Reconciliation to GAAP Financial Measures (Unaudited) (In thousands, except share or per share information) 31-Mar-22 31-Dec-21 31-Mar-21 Total stockholders’ equity $4,671,246 $5,969,397 $5,897,559 Less: Preferred stock (22,143 ) (22,143 ) (22,143 ) Less: Goodwill (720,293 ) (720,293 ) (671,122 ) Less: Other intangibles (15,328 ) (16,219 ) (21,415 ) Total tangible common equity $3,913,482 $5,210,742 $5,182,879 Total assets $69,525,082 $75,097,899 $66,870,268 Less: Goodwill (720,293 ) (720,293 ) (671,122 ) Less: Other intangibles (15,328 ) (16,219 ) (21,415 ) Total tangible assets $68,789,461 $74,361,387 $66,177,731 Tangible common equity to tangible assets 5.69 % 7.01 % 7.83 % Common shares outstanding at end of period 76,487,523 79,851,169 84,379,180 Tangible book value per common share $51.16 $65.26 $61.42 Quarterly average Total stockholders’ equity [1] $5,983,309 $5,961,214 $5,693,672 Less: Preferred Stock (22,143 ) (22,143 ) (22,143 ) Less: Goodwill (720,292 ) (706,184 ) (671,121 ) Less: Other intangibles (15,881 ) (19,889 ) (22,104 ) Total tangible equity $5,224,993 $5,212,998 $4,978,304 Return on average tangible common equity 16.40 % 15.66 % 21.37 % [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/20220426005090/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 $211.7 million in Q1 2022, compared to net income of $206.1 million in Q4 2021. Net interest margin of 2.75% in Q1 2022, compared to 2.78% in Q4 2021; net interest margin on a taxable equivalent basis of 3.05% in Q1 2022, compared to 3.02% in Q4 2021. Credit Quality: Non-performing loans held-in-portfolio (“NPLs”) decreased by $28.0 million from Q4 2021; NPLs to loans ratio at 1.8% vs. 1.9% in Q4 2021; Net charge-offs (“NCOs”) were $3.8 million, compared to a net recovery of $7.9 million in Q4 2021; NCOs at 0.05% of average loans held-in-portfolio vs. (0.11%) in Q4 2021; Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.29% vs. 2.38% in Q4 2021; and ACL to NPLs at 130.4% vs. 126.9% in Q4 2021. Common Equity Tier 1 ratio of 16.26%, Common Equity per Share of $60.78 and Tangible Book Value per Share of $51.16 at March 31, 2022.
Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $211.7 million for the quarter ended March 31, 2022, compared to net income of $206.1 million for the quarter ended December 31, 2021. Ignacio Alvarez, President and Chief Executive Officer, said: “We had a solid quarter with net income of $212 million, building on the momentum of our record 2021 results. We saw broad-based loan growth, across geographies and most business lines, while maintaining strong asset quality metrics. Net charge-offs were five basis points for the quarter. We continued to see deposit growth from our private sector clients. Our deposit franchise in Puerto Rico will be an even greater source of strength as interest rates rise as expected. Our capital ratios remained strong, allowing us to continue to return capital to our shareholders and increase our common stock dividend. Going forward, we remain optimistic about the economic outlook, yet cognizant of the possible challenges to the macroeconomic environment resulting from the war in Ukraine, inflation and the evolving health situation. I am thankful to our team who have continued to perform at a high level and deliver results under a myriad of changing conditions. Finally, our thoughts and prayers are with the people of Ukraine as they suffer the horrible consequences of the war.” Earnings Highlights (Unaudited) Quarters ended (Dollars in thousands, except per share information) 31-Mar-22 31-Dec-21 31-Mar-21 Net interest income $494,312 $501,283 $479,112 Provision for credit losses (benefit) (15,500 ) (33,050 ) (82,226 ) Net interest income after provision for credit losses (benefit) 509,812 534,333 561,338 Other non-interest income 154,692 164,677 153,653 Operating expenses 402,339 417,394 375,528 Income before income tax 262,165 281,616 339,463 Income tax expense 50,479 75,552 76,831 Net income $211,686 $206,064 $262,632 Net income applicable to common stock $211,333 $205,711 $262,279 Net income per common share - Basic $2.69 $2.59 $3.13 Net income per common share - Diluted $2.69 $2.58 $3.12 Significant Events Entry into Asset Purchase Agreement with Evertec; Renegotiation and Extension of Commercial Agreements On February 24, 2022, the Corporation and Banco Popular de Puerto Rico (“BPPR”), entered into an Asset Purchase Agreement (the “Purchase Agreement”), with Evertec, Inc. (“EVERTEC”) and Evertec Group, LLC, a wholly owned subsidiary of EVERTEC (“EVERTEC Group”), pursuant to which BPPR will purchase from EVERTEC Group certain information technology and related assets currently used by EVERTEC to service certain of BPPR’s key channels (the “Acquired Assets”) under the Amended and Restated Master Service Agreement (the “MSA”), dated September 30, 2010, among the Corporation, BPPR and EVERTEC. In connection with the purchase of the Acquired Assets, BPPR will assume certain liabilities relating to the Acquired Assets (together with the purchase of the Acquired Assets, the “Transaction”). The Transaction is expected to close on or about June 30, 2022, subject to the satisfaction of certain closing conditions. In connection with the consummation of the Transaction (the “Closing”), the Corporation will transfer to EVERTEC Group, as consideration for the Transaction, shares of EVERTEC’s common stock (“EVERTEC Common Stock”) having an aggregate value of approximately $197 million, subject to certain purchase price adjustments, based on a price per share of $42.84, which value was determined at the time of entering into the Purchase Agreement. As a result of this transfer, the Corporation expects that its percentage ownership of the outstanding shares of EVERTEC Common Stock will be reduced from its current level, which is approximately 16.2%, to approximately 10.5% immediately following the Closing. As part of the transaction, the Corporation has also agreed to reduce its voting interest in EVERTEC below 4.5%, whether through selling shares of EVERTEC common stock or a conversion of such shares into non-voting preferred stock. The Corporation expects to sell down its stake in EVERTEC below 4.5% following the closing and intends to return to shareholders, via common stock repurchases, the after-tax gains resulting from such sale, subject to the receipt of regulatory approvals. Additionally, as part of the Closing, the Corporation and BPPR will also enter with EVERTEC into, among other commercial agreements, a Second Amended and Restated Master Services Agreement (the “Second A&R MSA”), pursuant to which EVERTEC Group will continue to provide various key information technology and various transaction processing services to the Corporation, BPPR and their respective subsidiaries, which services are provided under the currently effective MSA. Capital Actions On March 1, 2022 the Corporation announced that on February 28, 2022 it entered into an accelerated share repurchase agreement (the “ASR Agreement”) to repurchase an aggregate of $400 million of Popular’s common stock. Popular previously disclosed in a press release on January 12, 2022 its plan to repurchase up to $500 million of its common stock as part of its planned capital actions for 2022. Under the terms of the ASR Agreement, on March 2, 2022 the Corporation made an initial payment of $400 million and received an initial delivery of 3,483,942 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 $320 million in treasury stock and $80 million as a reduction of 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 2022. Popular expects to execute during the remainder of the year, in the open market or in privately negotiated transactions, the remaining $100 million in common stock repurchases contemplated as part of the Corporation’s 2022 capital actions announced in January 2022. The timing and exact amount of such additional repurchases will be subject to various factors, including market conditions and the Corporation’s capital position and financial performance. On February 23, 2022, the Corporation’s Board of Directors approved a quarterly cash dividend of $0.55 per share, an increase from the previous $0.45 per share quarterly dividend, on its outstanding common stock. The dividend was paid on April 1, 2022 to shareholders of record at the close of business on March 15, 2022. 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 for the quarter ended March 31, 2022, 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 March 31, 2022 was $494.3 million compared to $501.3 million in the previous quarter, a decrease of $7.0 million. Net interest income, on a taxable equivalent basis, for the first quarter of 2022 was $548.1 million, an increase of $4.2 million when compared to $543.9 million in the last quarter of 2021. The increase in the taxable equivalent adjustment results from BPPR’s higher volume of tax-free investment securities in Puerto Rico. Net interest margin for the quarter was 2.75% compared to 2.78% in the last quarter of 2021. On a taxable equivalent basis, net interest margin for the first quarter of 2022 was 3.05% compared to 3.02% in the fourth quarter of 2021. The main variances in net interest income on a taxable equivalent basis were: higher interest income from money markets, trading and investment securities by $18.4 million resulting from a higher volume by $540 million, in turn driven by an increase in the average U.S. Treasury portfolio by $4.2 billion, partially offset by lower volume of money market investments by $3.1 billion and higher yields by 17 basis points driven by higher market rates and the composition of the portfolio; and higher interest income from consumer loans mainly driven by a higher average volume in both P.R. and the U.S. partially offset by: lower interest income from commercial loans by $16.5 million resulting from lower income form loans under the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) by $12.6 million, lower interest income from the repayment of purchased credit deteriorated (“PCD”) loans and the impact of 2 fewer days in the quarter or approximately $4.1 million. This negative effect was offset in part by an increase of $346 million in the average volume of commercial loans, at both P.R. and the U.S segments, for a $4.4 million benefit; a decrease in auto and lease financing income of $1.6 million mainly driven by two fewer days in the quarter when compared to the prior quarter, partially offset by higher loan volume by $62 million. The Corporation recognized income of $10.6 million related to loans issued under the SBA PPP, compared to $23.2 million in the previous quarter. These loans carried a yield of approximately 17.01% in this quarter, including the amortization of fees received under the program, compared to 17.86% last quarter. This portfolio of loans issued under the SBA PPP declined by $141 million in BPPR to a balance of $114 million and declined by $39 million in Popular Bank (“PB” or “Popular U.S.”) to a balance of $59 million. On March 31, 2022, the portfolio at BPPR and PB had a remaining aggregate balance of unamortized fees of $8.1 million. Net interest income for the BPPR segment amounted to $415.2 million for the first quarter of 2022, compared to $425.9 million for the fourth quarter of 2021. Net interest margin for the first quarter of 2022 was 2.67% a decrease of 6 basis points when compared to 2.73% for the previous quarter. As discussed above, net interest margin was negatively impacted by lower SBA PPP income and lower payment of PCD loans, partially offset by the positive impact of higher investment securities balances. The cost of interest-bearing and total deposits remained unchanged from the previous quarter at 0.16% and 0.12%, respectively. Net interest income for PB was $86.5 million for the quarter ended March 31, 2022, compared to $83.2 million during the previous quarter. Net interest margin for the quarter was 3.56% compared to 3.47% the previous quarter. The increase in net interest income results mainly from a higher volume of commercial and consumer loans. The lower cost on deposits also resulted in a benefit to PB’s net interest margin. The cost of interest-bearing deposits was 0.46% or 6 basis points lower than the 0.52% reported in the last quarter of 2021, while the total cost of deposits, including demand deposits, was 0.36%, compared to 0.40% in the previous quarter. Non-interest income Non-interest income decreased by $10.0 million to $154.7 million for the quarter ended March 31, 2022, compared to $164.7 million for the quarter ended December 31, 2021. The variance in non-interest income was primarily driven by: lower other service fees by $6.7 million, mainly due to lower insurance fees by $3.7 million principally resulting from contingent insurance commissions that are typically recognized during the fourth quarter and lower credit card fees by $2.0 million mainly in interchange income due to seasonal purchasing activity in the previous quarter; and lower income from mortgage banking activities by $4.2 million mainly due to a loss on sale of loans and securitization activities of $1.5 million, compared to a gain of $5.4 in the previous quarter due to a lower volume of transactions and lower market rates, partially offset by higher realized gains on closed derivative positions by $3.4 million; partially offset by: higher other operating income by $4.9 million mainly due to higher earnings from the portfolio of equity method investments and higher income from the sale of auto rental units. Refer to Table B for further details. Operating expenses Operating expenses for the first quarter of 2022 totaled $402.3 million, a decrease of $15.1 million when compared to the fourth quarter of 2021. The variance in operating expenses was driven primarily by: lower net occupancy expenses by $2.0 million due to lower rent and electricity expenses; lower business promotion expenses by $10.8 million mainly due to lower advertising and promotion expenses by $5.7 million a result of seasonal activities during the fourth quarter of 2021, lower donations by $2.8 million and lower credit cards rewards expense as a result of transactional volumes by $1.7 million; lower other operating expenses by $11.4 million due to the effect during the previous quarter of an impairment charge on undeveloped properties by $5.0 million and lower sundry losses by $5.0 million mainly related to the termination of a white label credit card contract during prior quarter; and lower amortization of intangibles by $5.2 million due to an impairment write-down of a trademark during the fourth quarter of 2021. partially offset by: higher personnel cost by $6.5 million mainly due to higher performance shares and restricted stock expenses by $6.3 million; higher payroll taxes by $5.1 million; partially offset by $3.1 million in lower incentives related to the profit-sharing plan which is tied to the Corporation’s financial performance; higher professional fees by $3.4 million mainly due to higher advisory expenses related to corporate initiatives; and higher credit and debit card processing and other expenses by $3.8 million due in part to lower volume incentives. Full-time equivalent employees were 8,492 as of March 31, 2022, compared to 8,351 as of December 31, 2021. For a breakdown of operating expenses by category refer to Table B. Income taxes For the quarter ended March 31, 2022, the Corporation recorded an income tax expense of $50.5 million, compared to $75.6 million for the previous quarter. The decrease in income tax expense was mainly attributable to lower income before tax and higher exempt income during the first quarter of 2022. The effective tax rate (“ETR”) for the first quarter of 2022 was 19.3%, compared to 27% in the fourth quarter of 2021. The ETR of the Corporation is impacted by the composition and source of its taxable income. The Corporation expects its ETR for the year 2022 to be within a range from 18% to 20%. Credit Quality During the first quarter of 2022, the Corporation continued to exhibit strong credit quality trends and low credit costs with low level of NCOs and decreasing NPLs. We continue to closely monitor changes on borrower performance and in the pace of economic recovery, given the rising interest rate environment and geopolitical uncertainty. 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 first quarter of 2022: At March 31, 2022, total non-performing loans held-in-portfolio decreased by $28.0 million from December 31, 2021. BPPR’s NPLs decreased by $27.5 million, mostly driven by lower mortgage NPLs by $27.3 million. The mortgage NPLs decrease was mainly due to the combined effects of collection efforts, increased foreclosure activity and the sustained low levels of early delinquency compared with pre-pandemic trends. PB’s NPLs remained flat quarter-over-quarter. At March 31, 2022, the ratio of NPLs to total loans held-in-portfolio was 1.8%, compared to 1.9% in the fourth quarter of 2021. Inflows of NPLs held-in-portfolio, excluding consumer loans, remained flat quarter-over-quarter. In BPPR, total inflows increased by $5.3 million, mostly driven by higher commercial and mortgage inflows of $3.8 million and $2.0 million, respectively. Mortgage inflows continued trending lower than pre-pandemic levels. NPL inflows at PB decreased by $4.9 million during the quarter, mostly driven by a decrease of $7.2 million in mortgage inflows, as the prior quarter included the impact of loans that did not resume payment after the end of COVID-19-related payment deferral periods. NCOs amounted to $3.8 million, an unfavorable variance of $11.7 million when compared to the fourth quarter. BPPR‘s NCOs increased by $13.1 million, as the prior quarter included recoveries from the resolution of certain commercial non-performing loans. During the first quarter of 2022, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.05%, compared to (0.11%) in the fourth quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios. At March 31, 2022, the ACL decreased by $17.6 million, or 2.5%, from the fourth quarter of 2021 to $677.8 million. The ACL incorporated updated macroeconomic scenarios for Puerto Rico and the United States. Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The baseline scenario continues to be assigned the highest probability, followed by the pessimistic scenario. The current baseline forecast continues to show a favorable economic scenario. 2022 annualized GDP growth of 3.5% and 3.7% is expected for Puerto Rico and United States, respectively. This represents a reduction for both Puerto Rico and United States since last quarter’s GDP growth forecast was 4.0% and 4.6%, respectively. Changes in assumptions related to fiscal stimulus and higher energy prices contributed to the reduction. The 2022 average unemployment rate is forecasted at 7.3% and 3.6% for Puerto Rico and United States, respectively. This is consistent with previous expectations for both regions. Puerto Rico’s unemployment rate forecast benefits from the Bureau of Labor Statistics (“BLS”) revisions that show a stronger than expected labor market. In BPPR, the ACL decreased by $17.6 million, mainly driven by reductions in qualitative reserves due to substantial improvements in employment levels in Puerto Rico. Recent updates by the BLS show that employment levels in Puerto Rico have already surpassed pre-pandemic levels. This contributed to a lower commercial, mortgage and consumer loans ACL. The decrease in qualitative reserves was partially offset by the impact of higher loan volumes and changes in the macroeconomic scenario. The ACL for the PB segment remained flat quarter-over-quarter as higher loan volumes in both the commercial real estate and consumer portfolios offset reductions in qualitative reserves. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.29% in the first quarter of 2022, compared to 2.38% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 130.4%, compared to 126.9% in the previous quarter. The provision for credit losses for the loan portfolios for the first quarter of 2022 reflected a benefit of $14.4 million, compared to a benefit of $31.4 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was a benefit of $12.7 million, compared to a benefit of $30.6 million in the previous quarter, while the provision for the PB segment was a benefit of $1.7 million, compared to a benefit of $0.9 million in the previous quarter. The provision for unfunded commitments for the first quarter of 2022 reflected a benefit of $0.8 million, compared to a benefit of $0.5 million in the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $0.3 million, compared to a benefit of $1.1 million in the fourth quarter of 2021. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations. Non-Performing Assets (Unaudited) (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Non-performing loans held-in-portfolio $519,921 $547,877 $698,142 Non-performing loans held-for-sale - - 3,549 Other real estate owned (“OREO”) 90,567 85,077 72,060 Total non-performing assets $610,488 $632,954 $773,751 Net charge-offs (recoveries) for the quarter $3,781 $(7,881 ) $21,030 Ratios: Loans held-in-portfolio $29,588,190 $29,240,557 $29,131,628 Non-performing loans held-in-portfolio to loans held-in-portfolio 1.76 % 1.87 % 2.40 % Allowance for credit losses to loans held-in-portfolio 2.29 2.38 2.75 Allowance for credit losses to non-performing loans, excluding loans held-for-sale 130.36 126.92 114.70 Refer to Table K for additional information. Provision for Credit Losses (Benefit) - Loan Portfolios (Unaudited) Quarters ended (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Provision for credit losses (benefit) - loan portfolios: BPPR $(12,661 ) $(30,562 ) $(39,976 ) Popular U.S. (1,744 ) (859 ) (35,803 ) Total provision for credit losses (benefit) - loan portfolios $(14,405 ) $(31,421 ) $(75,779 ) Credit Quality by Segment (Unaudited) (In thousands) Quarters ended BPPR 31-Mar-22 31-Dec-21 31-Mar-21 Provision for credit losses (benefit) - loan portfolios $(12,661 ) $(30,562 ) $(39,976 ) Net charge-offs (recoveries) 5,502 (7,615 ) 19,474 Total non-performing loans held-in-portfolio 486,816 514,289 665,978 Allowance / loans held-in-portfolio 2.74 % 2.85 % 3.20 % Allowance / non-performing loans held-in-portfolio 118.45 % 115.53 % 102.35 % Quarters ended Popular U.S. 31-Mar-22 31-Dec-21 31-Mar-21 Provision for credit losses (benefit) - loan portfolios $(1,744 ) $(859 ) $(35,803 ) Net charge-offs (recoveries) (1,721 ) (266 ) 1,556 Total non-performing loans held-in-portfolio 33,105 33,588 32,164 Allowance / loans held-in-portfolio 1.18 % 1.21 % 1.53 % Allowance / non-performing loans held-in-portfolio 305.64 % 301.31 % 370.42 % Financial Condition Highlights (Unaudited) (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Cash and money market investments $10,508,840 $17,965,152 $12,064,592 Investment securities 26,658,289 25,267,418 23,076,488 Loans 29,588,190 29,240,557 29,131,628 Total assets 69,525,082 75,097,899 66,870,268 Deposits 62,862,295 67,005,088 58,742,801 Borrowings 1,060,706 1,155,166 1,311,064 Total liabilities 64,853,836 69,128,502 60,972,709 Stockholders’ equity 4,671,246 5,969,397 5,897,559 Total assets decreased by $5.6 billion from the fourth quarter of 2021, driven by: a decrease of $7.5 billion in money market investments, mainly due to lower Puerto Rico public sector deposits and purchases of U.S. Treasury securities; partially offset by: an increase of $1.4 billion in debt securities available-for-sale, mainly due to purchases of U.S. Treasury securities, offset in part by maturities and paydowns of U.S. Treasury and agency mortgage-backed securities; and an increase in loans held-in-portfolio by $0.4 billion, mainly due to loan growth in the commercial portfolios in both Puerto Rico and the U.S. (mainly in the health care sector at PB) and construction portfolios, and purchases of third-party lending consumer loans, partially offset by a decrease in the mortgage portfolio, mainly due to loan payoffs and amortizations. Total liabilities decreased by $4.3 billion from the fourth quarter of 2021, driven by: a decrease of $4.1 billion in deposits, mainly due to lower Puerto Rico public sector deposits by $5.5 billion at BPPR as a result of the payments made by Puerto Rico pursuant to the Plan of Adjustment for Puerto Rico under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”); and a decrease in borrowings of $94 million, mainly due to the maturity during this quarter of $75 million in short-term borrowings. Stockholders' equity decreased by $1.3 billion from the fourth quarter of 2021, principally due to an increase in accumulated unrealized losses on debt securities available-for-sale by $1.1 billion due to a decline in fair value of fixed-rate debt securities as a result of the rising interest rate environment, the impact of the $400 million ASR and declared quarterly common stock dividends, partially offset by the net income of $211.7 million for the quarter. Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.26%, $60.78 and $51.16, respectively, at March 31, 2022, compared to 17.42%, $74.48 and $65.26 at December 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, new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic (including the appearance of new strains of the virus), actions taken by governmental authorities in response thereto, and the direct and indirect impact of the pandemic on Popular, our customers, service providers and third parties. Other factors include the length of time necessary for Popular to consummate the Transaction; the ability to satisfy the conditions to the closing thereof; the receipt of any regulatory approvals necessary to effect the Transaction and the contemplated return to shareholders of net gains resulting from a sale of EVERTEC shares effected in connection with the consummation of the Transaction; the ability to successfully transition and integrate the assets acquired as part of the Transaction, related operations, employees and third party contractors; unexpected costs, including, without limitation, costs due to exposure to any unrecorded liabilities or issues not identified during due diligence investigation of the Transaction or that are not subject to indemnification or reimbursement by EVERTEC; risks that Popular may be affected by operational and other risks arising from the acquisition of the acquired assets or by adverse effects on relationships with customers, employees and service providers and business and other risks arising from the extension of Popular’s current commercial agreements with EVERTEC. 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, 2021, and in our Form 10-Q for the quarter ended March 31, 2022 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 Tuesday, April 26, 2022 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 1-844-200-6205 (Toll Free) or 1-646-904-5544 (Local). The dial-in access code is 659646. 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 Tuesday, May 24, 2022. The replay dial-in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 408334. An electronic version of this press release can be found at the Corporation’s website: www.popular.com. Popular, Inc. Financial Supplement to First Quarter 2022 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 [Left Blank] Table F - Mortgage Banking Activities & 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 First Quarter 2022 Earnings Release Table A - Selected Ratios and Other Information (Unaudited) Quarters ended 31-Mar-22 31-Dec-21 31-Mar-21 Basic EPS $2.69 $2.59 $3.13 Diluted EPS $2.69 $2.58 $3.12 Average common shares outstanding 78,443,706 79,477,823 83,899,769 Average common shares outstanding - assuming dilution 78,595,463 79,652,836 84,051,935 Common shares outstanding at end of period 76,487,523 79,851,169 84,379,180 Market value per common share $81.74 $82.04 $70.32 Market capitalization - (In millions) $6,252 $6,551 $5,934 Return on average assets 1.14% 1.09% 1.61% Return on average common equity 14.38% 13.74% 18.76% Net interest margin (non-taxable equivalent basis) 2.75% 2.78% 3.07% Net interest margin (taxable equivalent basis) -non-GAAP 3.05% 3.02% 3.39% Common equity per share $60.78 $74.48 $69.63 Tangible common book value per common share (non-GAAP) [1] $51.16 $65.26 $61.42 Tangible common equity to tangible assets (non-GAAP) [1] 5.69% 7.01% 7.83% Return on average tangible common equity [1] 16.40% 15.66% 21.37% Tier 1 capital 16.33% 17.49% 17.15% Total capital 18.19% 19.35% 19.62% Tier 1 leverage 6.98% 7.41% 8.06% Common Equity Tier 1 capital 16.26% 17.42% 17.08% [1] Refer to Table Q for reconciliation to GAAP financial measures. POPULAR, INC. Financial Supplement to First Quarter 2022 Earnings Release Table B - Consolidated Statement of Operations (Unaudited) Quarters ended Variance Quarter ended Variance Q1 2022 Q1 2022 (In thousands, except per share information) 31-Mar-22 31-Dec-21 vs. Q4 2021 31-Mar-21 vs. Q1 2021 Interest income: Loans $426,791 $444,101 $(17,310 ) $434,649 $(7,858 ) Money market investments 6,464 6,847 (383 ) 3,112 3,352 Investment securities 96,466 88,315 8,151 85,690 10,776 Total interest income 529,721 539,263 (9,542 ) 523,451 6,270 Interest expense: Deposits 24,783 26,331 (1,548 ) 30,201 (5,418 ) Short-term borrowings 80 60 20 143 (63 ) Long-term debt 10,546 11,589 (1,043 ) 13,995 (3,449 ) Total interest expense 35,409 37,980 (2,571 ) 44,339 (8,930 ) Net interest income 494,312 501,283 (6,971 ) 479,112 15,200 Provision for credit losses (benefit) (15,500 ) (33,050 ) 17,550 (82,226 ) 66,726 Net interest income after provision for credit losses (benefit) 509,812 534,333 (24,521 ) 561,338 (51,526 ) Service charges on deposit accounts 40,713 41,613 (900 ) 39,620 1,093 Other service fees 77,134 83,793 (6,659 ) 70,628 6,506 Mortgage banking activities 12,865 17,035 (4,170 ) 17,343 (4,478 ) Net (loss) gain, including impairment, on equity securities (2,094 ) (1,454 ) (640 ) 421 (2,515 ) Net loss on trading account debt securities (723 ) (355 ) (368 ) (45 ) (678 ) Adjustments (expense) to indemnity reserves on loans sold (745 ) 1,398 (2,143 ) (698 ) (47 ) Other operating income 27,542 22,647 4,895 26,384 1,158 Total non-interest income 154,692 164,677 (9,985 ) 153,653 1,039 Operating expenses: Personnel costs Salaries 98,673 96,830 1,843 89,335 9,338 Commissions, incentives and other bonuses 31,339 27,611 3,728 33,218 (1,879 ) Pension, postretirement and medical insurance 12,783 13,971 (1,188 ) 10,924 1,859 Other personnel costs, including payroll taxes 24,201 22,060 2,141 26,002 (1,801 ) Total personnel costs 166,996 160,472 6,524 159,479 7,517 Net occupancy expenses 24,723 26,755 (2,032 ) 26,013 (1,290 ) Equipment expenses 23,479 25,180 (1,701 ) 21,575 1,904 Other taxes 15,715 15,160 555 13,959 1,756 Professional fees Collections, appraisals and other credit related fees 2,226 3,227 (1,001 ) 3,320 (1,094 ) Programming, processing and other technology services 69,374 69,647 (273 ) 66,366 3,008 Legal fees, excluding collections 3,954 3,445 509 2,365 1,589 Other professional fees 32,943 28,736 4,207 27,897 5,046 Total professional fees 108,497 105,055 3,442 99,948 8,549 Communications 6,147 6,263 (116 ) 6,833 (686 ) Business promotion 15,083 25,833 (10,750 ) 12,521 2,562 FDIC deposit insurance 7,372 6,688 684 5,968 1,404 Other real estate owned (OREO) income (2,713 ) (3,860 ) 1,147 (4,533 ) 1,820 Credit and debit card processing, volume, interchange and other expenses 12,509 8,757 3,752 12,454 55 Other operating expenses Operational losses 11,825 16,820 (4,995 ) 7,896 3,929 All other 11,815 18,226 (6,411 ) 12,364 (549 ) Total other operating expenses 23,640 35,046 (11,406 ) 20,260 3,380 Amortization of intangibles 891 6,045 (5,154 ) 1,051 (160 ) Total operating expenses 402,339 417,394 (15,055 ) 375,528 26,811 Income before income tax 262,165 281,616 (19,451 ) 339,463 (77,298 ) Income tax expense 50,479 75,552 (25,073 ) 76,831 (26,352 ) Net income $211,686 $206,064 $5,622 $262,632 $(50,946 ) Net income applicable to common stock $211,333 $205,711 $5,622 $262,279 $(50,946 ) Net income per common share - basic $2.69 $2.59 $0.10 $3.13 $(0.44 ) Net income per common share - diluted $2.69 $2.58 $0.11 $3.12 $(0.43 ) Dividends Declared per Common Share $0.55 $0.45 $0.10 $0.40 $0.15 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table C - Consolidated Statement of Financial Condition (Unaudited) Variance Q1 2022 vs. (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Q4 2021 Assets: Cash and due from banks $439,148 $428,433 $495,915 $10,715 Money market investments 10,069,692 17,536,719 11,568,677 (7,467,027 ) Trading account debt securities, at fair value 36,042 29,711 36,504 6,331 Debt securities available-for-sale, at fair value 26,359,915 24,968,269 22,771,609 1,391,646 Debt securities held-to-maturity, at amortized cost 75,984 79,461 89,725 (3,477 ) Less: Allowance for credit losses 7,844 8,096 10,096 (252 ) Total debt securities held-to-maturity, net 68,140 71,365 79,629 (3,225 ) Equity securities 186,348 189,977 178,650 (3,629 ) Loans held-for-sale, at lower of cost or fair value 55,150 59,168 84,214 (4,018 ) Loans held-in-portfolio 29,856,356 29,506,225 29,344,620 350,131 Less: Unearned income 268,166 265,668 212,992 2,498 Allowance for credit losses 677,792 695,366 800,797 (17,574 ) Total loans held-in-portfolio, net 28,910,398 28,545,191 28,330,831 365,207 Premises and equipment, net 488,390 494,240 508,023 (5,850 ) Other real estate 90,567 85,077 72,060 5,490 Accrued income receivable 204,466 203,096 215,993 1,370 Mortgage servicing rights, at fair value 125,358 121,570 122,543 3,788 Other assets 1,755,847 1,628,571 1,713,083 127,276 Goodwill 720,293 720,293 671,122 - Other intangible assets 15,328 16,219 21,415 (891 ) Total assets $69,525,082 $75,097,899 $66,870,268 $(5,572,817 ) Liabilities and Stockholders’ Equity: Liabilities: Deposits: Non-interest bearing $16,096,666 $15,684,482 $14,263,548 $412,184 Interest bearing 46,765,629 51,320,606 44,479,253 (4,554,977 ) Total deposits 62,862,295 67,005,088 58,742,801 (4,142,793 ) Assets sold under agreements to repurchase 72,819 91,603 86,834 (18,784 ) Other short-term borrowings - 75,000 - (75,000 ) Notes payable 987,887 988,563 1,224,230 (676 ) Other liabilities 930,835 968,248 918,844 (37,413 ) Total liabilities 64,853,836 69,128,502 60,972,709 (4,274,666 ) Stockholders’ equity: Preferred stock 22,143 22,143 22,143 - Common stock 1,046 1,046 1,045 - Surplus 4,571,111 4,650,182 4,571,919 (79,071 ) Retained earnings 3,143,004 2,973,745 2,489,453 169,259 Treasury stock (1,668,820 ) (1,352,650 ) (1,012,263 ) (316,170 ) Accumulated other comprehensive loss, net of tax (1,397,238 ) (325,069 ) (174,738 ) (1,072,169 ) Total stockholders’ equity 4,671,246 5,969,397 5,897,559 (1,298,151 ) Total liabilities and stockholders’ equity $69,525,082 $75,097,899 $66,870,268 $(5,572,817 ) Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER (Unaudited) Quarters ended Variance 31-Mar-22 31-Dec-21 31-Mar-21 Q1 2022 vs. Q4 2021 Q1 2022 vs. Q1 2021 ($ 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 $43,304 $144.8 1.35 % $42,764 $126.4 1.18 % $33,756 $127.8 1.52 % $540 $18.4 0.17 % $9,548 $17.0 (0.17 ) % Loans: Commercial 13,741 172.1 5.08 13,395 188.6 5.59 13,624 179.0 5.33 346 (16.5 ) (0.51 ) 117 (6.9 ) (0.25 ) Construction 726 9.8 5.45 777 10.7 5.46 911 11.9 5.30 (51 ) (0.9 ) (0.01 ) (185 ) (2.1 ) 0.15 Mortgage 7,388 96.8 5.24 7,504 96.4 5.14 7,869 98.4 5.00 (116 ) 0.4 0.10 (481 ) (1.6 ) 0.24 Consumer 2,538 70.0 11.19 2,471 68.1 10.93 2,513 70.4 11.36 67 1.9 0.26 25 (0.4 ) (0.17 ) Auto 3,460 69.3 8.12 3,432 71.3 8.24 3,203 68.2 8.63 28 (2.0 ) (0.12 ) 257 1.1 (0.51 ) Lease financing 1,393 20.7 5.95 1,359 20.3 5.97 1,215 18.4 6.04 34 0.4 (0.02 ) 178 2.3 (0.09 ) Total loans 29,246 438.7 6.06 28,938 455.4 6.26 29,335 446.3 6.15 308 (16.7 ) (0.20 ) (89 ) (7.6 ) (0.09 ) Total interest earning assets $72,550 $583.5 3.25 % $71,702 $581.8 3.23 % $63,091 $574.1 3.67 % $848 $1.7 0.02 % $9,459 $9.4 (0.42 ) % Allowance for credit losses - loan portfolio (695 ) (719 ) (890 ) 24 195 Allowance for credit losses - investment securities (8 ) (9 ) (10 ) 1 2 Other non-interest earning assets 3,782 3,844 3,895 (62 ) (113 ) Total average assets $75,629 $74,818 $66,086 $811 $9,543 Liabilities and Stockholders' Equity: Interest bearing deposits: NOW and money market $28,289 $7.3 0.10 % $28,205 $7.7 0.11 % $22,674 $8.3 0.15 % $84 $(0.4 ) (0.01 ) % $5,615 $(1.0 ) (0.05 ) % Savings 16,434 6.6 0.16 16,324 6.8 0.17 14,364 7.0 0.20 110 (0.2 ) (0.01 ) 2,070 (0.4 ) (0.04 ) Time deposits 6,737 10.9 0.66 6,793 11.8 0.69 7,265 14.9 0.83 (56 ) (0.9 ) (0.03 ) (528 ) (4.0 ) (0.17 ) Total interest-bearing deposits 51,460 24.8 0.20 51,322 26.3 0.20 44,303 30.2 0.31 138 (1.5 ) - 7,157 (5.4 ) (0.11 ) Borrowings 1,105 10.6 3.87 1,163 11.6 4.01 1,344 14.1 4.23 (58 ) (1.0 ) (0.14 ) (239 ) (3.5 ) (0.36 ) Total interest-bearing liabilities 52,565 35.4 0.27 52,485 37.9 0.29 45,647 44.3 0.39 80 (2.5 ) (0.02 ) 6,918 (8.9 ) (0.12 ) Net interest spread 2.98 % 2.94 % 3.28 % 0.04 % (0.30 ) % Non-interest bearing deposits 16,142 15,455 13,394 687 2,748 Other liabilities 939 917 1,351 22 (412 ) Stockholders' equity 5,983 5,961 5,694 22 289 Total average liabilities and stockholders' equity $75,629 $74,818 $66,086 $811 $9,543 Net interest income / margin on a taxable equivalent basis (Non-GAAP) $548.1 3.05 % $543.9 3.02 % $529.8 3.39 % $4.2 0.03 % $18.3 (0.34 ) % Taxable equivalent adjustment 53.8 42.6 50.7 11.2 3.1 Net interest income / margin non-taxable equivalent basis (GAAP) $494.3 2.75 % $501.3 2.78 % $479.1 3.07 % ($7.0 ) (0.03 ) % $15.2 (0.32 ) % Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table E – Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE [THIS PAGE INTENTIONALLY LEFT BLANK] Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table F - Mortgage Banking Activities and Other Service Fees (Unaudited) Mortgage Banking Activities Quarters ended Variance (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Q1 2022 vs.Q4 2021 Q1 2022 vs.Q1 2021 Mortgage servicing fees, net of fair value adjustments: Mortgage servicing fees $9,323 $9,492 $9,715 $(169 ) $(392 ) Mortgage servicing rights fair value adjustments 1,088 1,500 512 (412 ) 576 Total mortgage servicing fees, net of fair value adjustments 10,411 10,992 10,227 (581 ) 184 Net (loss) gain on sale of loans, including valuation on loans held-for-sale (1,534 ) 5,428 4,975 (6,962 ) (6,509 ) Trading account profit: Unrealized gains on outstanding derivative positions 2 - - 2 2 Realized gains on closed derivative positions 4,135 691 2,502 3,444 1,633 Total trading account profit 4,137 691 2,502 3,446 1,635 Losses on repurchased loans, including interest advances (149 ) (76 ) (361 ) (73 ) 212 Total mortgage banking activities $12,865 $17,035 $17,343 $(4,170 ) $(4,478 ) Other Service Fees Quarters ended Variance (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Q1 2022 vs.Q4 2021 Q1 2022 vs.Q1 2021 Other service fees: Debit card fees $11,779 $12,392 $11,577 $(613 ) $202 Insurance fees 14,156 17,848 12,828 (3,692 ) 1,328 Credit card fees 33,642 35,649 28,691 (2,007 ) 4,951 Sale and administration of investment products 5,791 5,908 5,540 (117 ) 251 Trust fees 5,927 5,858 5,842 69 85 Other fees 5,839 6,138 6,150 (299 ) (311 ) Total other service fees $77,134 $83,793 $70,628 $(6,659 ) $6,506 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table G - Loans and Deposits (Unaudited) Loans - Ending Balances Variance (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Q1 2022 vs.Q4 2021 Q1 2022 vs.Q1 2021 Loans held-in-portfolio: Commercial $14,028,246 $13,732,701 $13,442,486 $295,545 $585,760 Construction 744,783 716,220 907,736 28,563 (162,953 ) Leasing 1,426,122 1,381,319 1,244,956 44,803 181,166 Mortgage 7,326,346 7,427,196 7,808,852 (100,850 ) (482,506 ) Auto 3,430,162 3,412,187 3,203,137 17,975 227,025 Consumer 2,632,531 2,570,934 2,524,461 61,597 108,070 Total loans held-in-portfolio $29,588,190 $29,240,557 $29,131,628 $347,633 $456,562 Loans held-for-sale: Commercial $- $- $3,549 $- $(3,549 ) Mortgage 55,150 59,168 80,665 (4,018 ) (25,515 ) Total loans held-for-sale $55,150 $59,168 $84,214 $(4,018 ) $(29,064 ) Total loans $29,643,340 $29,299,725 $29,215,842 $343,615 $427,498 Deposits - Ending Balances Variance (In thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Q1 2022 vs. Q4 2021 Q1 2022 vs. Q1 2021 Demand deposits [1] $25,684,715 $25,889,732 $23,450,312 $(205,017 ) $2,234,403 Savings, NOW and money market deposits (non-brokered) 29,318,333 33,674,134 27,356,136 (4,355,801 ) 1,962,197 Savings, NOW and money market deposits (brokered) 768,558 729,073 679,832 39,485 88,726 Time deposits (non-brokered) 6,964,848 6,685,938 7,143,221 278,910 (178,373 ) Time deposits (brokered CDs) 125,841 26,211 113,300 99,630 12,541 Total deposits $62,862,295 $67,005,088 $58,742,801 $(4,142,793 ) $4,119,494 [1] Includes interest and non-interest bearing demand deposits. Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table H - Loan Delinquency - Puerto Rico Operations (Unaudited) 31-Mar-22 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 $ 2,130 $ 189 $ 274 $ 2,593 $ 160,648 $ 163,241 $ 274 $ - Commercial real estate: Non-owner occupied 3,646 93 20,627 24,366 2,536,174 2,560,540 20,627 - Owner occupied 4,024 50 49,732 53,806 1,396,696 1,450,502 49,732 - Commercial and industrial 1,218 169 48,167 49,554 3,333,918 3,383,472 47,149 1,018 Construction 715 - - 715 126,610 127,325 - - Mortgage 182,397 79,374 736,338 998,109 5,125,554 6,123,663 306,560 429,778 Leasing 9,819 2,446 3,766 16,031 1,410,091 1,426,122 3,766 - Consumer: Credit cards 5,817 3,728 9,049 18,594 896,966 915,560 - 9,049 Home equity lines of credit - - 23 23 3,093 3,116 - 23 Personal 10,215 6,184 19,157 35,556 1,267,920 1,303,476 19,157 - Auto 51,497 11,353 27,514 90,364 3,339,798 3,430,162 27,514 - Other 537 37 12,184 12,758 112,322 125,080 12,037 147 Total $ 272,015 $ 103,623 $ 926,831 $ 1,302,469 $ 19,709,790 $ 21,012,259 $ 486,816 $ 440,015 31-Dec-21 Puerto Rico Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 314 $ - $ 272 $ 586 $ 154,183 $ 154,769 $ 272 $ - Commercial real estate: Non-owner occupied 2,399 136 20,716 23,251 2,266,672 2,289,923 20,716 - Owner occupied 3,329 278 54,335 57,942 1,365,787 1,423,729 54,335 - Commercial and industrial 3,438 1,727 45,242 50,407 3,478,041 3,528,448 44,724 518 Construction - - 485 485 86,626 87,111 485 - Mortgage 217,830 81,754 805,245 1,104,829 5,147,037 6,251,866 333,887 471,358 Leasing 9,240 2,037 3,102 14,379 1,366,940 1,381,319 3,102 - Consumer: Credit cards 5,768 3,520 8,577 17,865 901,986 919,851 - 8,577 Home equity lines of credit 46 - 23 69 3,502 3,571 - 23 Personal 10,027 6,072 21,235 37,334 1,250,726 1,288,060 21,235 - Auto 59,128 15,019 23,085 97,232 3,314,955 3,412,187 23,085 - Other 432 714 12,621 13,767 110,781 124,548 12,448 173 Total $ 311,951 $ 111,257 $ 994,938 $ 1,418,146 $ 19,447,236 $ 20,865,382 $ 514,289 $ 480,649 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 1,816 $ 189 $ 2 $ 2,007 $ 6,465 $ 8,472 $ 2 $ - Commercial real estate: Non-owner occupied 1,247 (43 ) (89 ) 1,115 269,502 270,617 (89 ) - Owner occupied 695 (228 ) (4,603 ) (4,136 ) 30,909 26,773 (4,603 ) - Commercial and industrial (2,220 ) (1,558 ) 2,925 (853 ) (144,123 ) (144,976 ) 2,425 500 Construction 715 - (485 ) 230 39,984 40,214 (485 ) - Mortgage (35,433 ) (2,380 ) (68,907 ) (106,720 ) (21,483 ) (128,203 ) (27,327 ) (41,580 ) Leasing 579 409 664 1,652 43,151 44,803 664 - Consumer: Credit cards 49 208 472 729 (5,020 ) (4,291 ) - 472 Home equity lines of credit (46 ) - - (46 ) (409 ) (455 ) - - Personal 188 112 (2,078 ) (1,778 ) 17,194 15,416 (2,078 ) - Auto (7,631 ) (3,666 ) 4,429 (6,868 ) 24,843 17,975 4,429 - Other 105 (677 ) (437 ) (1,009 ) 1,541 532 (411 ) (26 ) Total $ (39,936 ) $ (7,634 ) $ (68,107 ) $ (115,677 ) $ 262,554 $ 146,877 $ (27,473 ) $ (40,634 ) Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table I - Loan Delinquency - Popular U.S. Operations (Unaudited) 31-Mar-22 Popular U.S. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ - $ - $ - $ - $ 1,865,623 $ 1,865,623 $ - $ - Commercial real estate: Non-owner occupied 902 740 374 2,016 1,391,874 1,393,890 374 - Owner occupied 6,385 - 677 7,062 1,398,580 1,405,642 677 - Commercial and industrial 10,925 602 4,891 16,418 1,788,918 1,805,336 4,352 539 Construction - - - - 617,458 617,458 - - Mortgage 13,006 1,069 21,826 35,901 1,166,782 1,202,683 21,826 - Consumer: Credit cards - - - - 26 26 - - Home equity lines of credit 259 15 5,248 5,522 68,437 73,959 5,248 - Personal 739 558 627 1,924 203,381 205,305 627 - Other - 1 1 2 6,007 6,009 1 - Total $ 32,216 $ 2,985 $ 33,644 $ 68,845 $ 8,507,086 $ 8,575,931 $ 33,105 $ 539 31-Dec-21 Popular U.S. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 3,826 $ - $ - $ 3,826 $ 1,804,035 $ 1,807,861 $ - $ - Commercial real estate: Non-owner occupied 5,721 683 622 7,026 2,316,441 2,323,467 622 - Owner occupied 1,095 - 1,013 2,108 392,265 394,373 1,013 - Commercial and industrial 9,410 2,680 4,015 16,105 1,794,026 1,810,131 3,897 118 Construction - - - - 629,109 629,109 - - Mortgage 11,711 2,573 21,969 36,253 1,139,077 1,175,330 21,969 - Consumer: Credit cards - - - - 10 10 - - Home equity lines of credit 71 34 5,406 5,511 69,780 75,291 5,406 - Personal 863 574 681 2,118 152,827 154,945 681 - Other - - - - 4,658 4,658 - - Total $ 32,697 $ 6,544 $ 33,706 $ 72,947 $ 8,302,228 $ 8,375,175 $ 33,588 $ 118 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ (3,826 ) $ - $ - $ (3,826 ) $ 61,588 $ 57,762 $ - $ - Commercial real estate: Non-owner occupied (4,819 ) 57 (248 ) (5,010 ) (924,567 ) (929,577 ) (248 ) - Owner occupied 5,290 - (336 ) 4,954 1,006,315 1,011,269 (336 ) - Commercial and industrial 1,515 (2,078 ) 876 313 (5,108 ) (4,795 ) 455 421 Construction - - - - (11,651 ) (11,651 ) - - Mortgage 1,295 (1,504 ) (143 ) (352 ) 27,705 27,353 (143 ) - Consumer: Credit cards - - - - 16 16 - - Home equity lines of credit 188 (19 ) (158 ) 11 (1,343 ) (1,332 ) (158 ) - Personal (124 ) (16 ) (54 ) (194 ) 50,554 50,360 (54 ) - Other - 1 1 2 1,349 1,351 1 - Total $ (481 ) $ (3,559 ) $ (62 ) $ (4,102 ) $ 204,858 $ 200,756 $ (483 ) $ 421 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table J - Loan Delinquency - Consolidated (Unaudited) 31-Mar-22 Popular, Inc. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 2,130 $ 189 $ 274 $ 2,593 $ 2,026,271 $ 2,028,864 $ 274 $ - Commercial real estate: Non-owner occupied 4,548 833 21,001 26,382 3,928,048 3,954,430 21,001 - Owner occupied 10,409 50 50,409 60,868 2,795,276 2,856,144 50,409 - Commercial and industrial 12,143 771 53,058 65,972 5,122,836 5,188,808 51,501 1,557 Construction 715 - - 715 744,068 744,783 - - Mortgage 195,403 80,443 758,164 1,034,010 6,292,336 7,326,346 328,386 429,778 Leasing 9,819 2,446 3,766 16,031 1,410,091 1,426,122 3,766 - Consumer: Credit cards 5,817 3,728 9,049 18,594 896,992 915,586 - 9,049 Home equity lines of credit 259 15 5,271 5,545 71,530 77,075 5,248 23 Personal 10,954 6,742 19,784 37,480 1,471,301 1,508,781 19,784 - Auto 51,497 11,353 27,514 90,364 3,339,798 3,430,162 27,514 - Other 537 38 12,185 12,760 118,329 131,089 12,038 147 Total $ 304,231 $ 106,608 $ 960,475 $ 1,371,314 $ 28,216,876 $ 29,588,190 $ 519,921 $ 440,554 31-Dec-21 Popular, Inc. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 4,140 $ - $ 272 $ 4,412 $ 1,958,218 $ 1,962,630 $ 272 $ - Commercial real estate: Non-owner occupied 8,120 819 21,338 30,277 4,583,113 4,613,390 21,338 - Owner occupied 4,424 278 55,348 60,050 1,758,052 1,818,102 55,348 - Commercial and industrial 12,848 4,407 49,257 66,512 5,272,067 5,338,579 48,621 636 Construction - - 485 485 715,735 716,220 485 - Mortgage 229,541 84,327 827,214 1,141,082 6,286,114 7,427,196 355,856 471,358 Leasing 9,240 2,037 3,102 14,379 1,366,940 1,381,319 3,102 - Consumer: Credit cards 5,768 3,520 8,577 17,865 901,996 919,861 - 8,577 Home equity lines of credit 117 34 5,429 5,580 73,282 78,862 5,406 23 Personal 10,890 6,646 21,916 39,452 1,403,553 1,443,005 21,916 - Auto 59,128 15,019 23,085 97,232 3,314,955 3,412,187 23,085 - Other 432 714 12,621 13,767 115,439 129,206 12,448 173 Total $ 344,648 $ 117,801 $ 1,028,644 $ 1,491,093 $ 27,749,464 $ 29,240,557 $ 547,877 $ 480,767 Variance Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ (2,010 ) $ 189 $ 2 $ (1,819 ) $ 68,053 $ 66,234 $ 2 $ - Commercial real estate: Non-owner occupied (3,572 ) 14 (337 ) (3,895 ) (655,065 ) (658,960 ) (337 ) - Owner occupied 5,985 (228 ) (4,939 ) 818 1,037,224 1,038,042 (4,939 ) - Commercial and industrial (705 ) (3,636 ) 3,801 (540 ) (149,231 ) (149,771 ) 2,880 921 Construction 715 - (485 ) 230 28,333 28,563 (485 ) - Mortgage (34,138 ) (3,884 ) (69,050 ) (107,072 ) 6,222 (100,850 ) (27,470 ) (41,580 ) Leasing 579 409 664 1,652 43,151 44,803 664 - Consumer: Credit cards 49 208 472 729 (5,004 ) (4,275 ) - 472 Home equity lines of credit 142 (19 ) (158 ) (35 ) (1,752 ) (1,787 ) (158 ) - Personal 64 96 (2,132 ) (1,972 ) 67,748 65,776 (2,132 ) - Auto (7,631 ) (3,666 ) 4,429 (6,868 ) 24,843 17,975 4,429 - Other 105 (676 ) (436 ) (1,007 ) 2,890 1,883 (410 ) (26 ) Total $ (40,417 ) $ (11,193 ) $ (68,169 ) $ (119,779 ) $ 467,412 $ 347,633 $ (27,956 ) $ (40,213 ) Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table K - Non-Performing Assets (Unaudited) Variance (Dollars in thousands) 31-Mar-22 As a % of loans HIP by category 31-Dec-21 As a % of loans HIP by category 31-Mar-21 As a % of loans HIP by category Q1 2022 vs. Q4 2021 Q1 2022 vs. Q1 2021 Non-accrual loans: Commercial $123,185 0.9 % $125,579 0.9 % $202,770 1.5 % $(2,394 ) $(79,585 ) Construction - - 485 0.1 22,400 2.5 (485 ) (22,400 ) Leasing 3,766 0.3 3,102 0.2 3,040 0.2 664 726 Mortgage 328,386 4.5 355,856 4.8 405,574 5.2 (27,470 ) (77,188 ) Auto 27,514 0.8 23,085 0.7 15,405 0.5 4,429 12,109 Consumer 37,070 1.4 39,770 1.5 48,953 1.9 (2,700 ) (11,883 ) Total non-performing loans held-in-portfolio 519,921 1.8 % 547,877 1.9 % 698,142 2.4 % (27,956 ) (178,221 ) Non-performing loans held-for-sale [1] - - 3,549 - (3,549 ) Other real estate owned (“OREO”) 90,567 85,077 72,060 5,490 18,507 Total non-performing assets $610,488 $632,954 $773,751 $(22,466 ) $(163,263 ) Accruing loans past due 90 days or more [2] $440,554 $480,767 $832,756 $(40,213 ) $(392,202 ) Ratios: Non-performing assets to total assets 0.88 % 0.84 % 1.16 % Non-performing loans held-in-portfolio to loans held-in-portfolio 1.76 1.87 2.40 Allowance for credit losses to loans held-in-portfolio 2.29 2.38 2.75 Allowance for credit losses to non-performing loans, excluding loans held-for-sale 130.36 126.92 114.70 [1] There were no non-performing loans held-for-sale as of March 31, 2022 and December 31, 2021 (March 31, 2021 - $4 million in commercial loans). [2] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. The balance of these loans includes $13 million at March 31, 2022, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (December 31, 2021 - $13 million; March 31, 2021 - $29 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on the financial statements of BPPR with an offsetting liability. These balances include $266 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2022 (December 31, 2021 - $304 million; March 31, 2021 - $341 million). Furthermore, the Corporation has approximately $45 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (December 31, 2021 - $50 million; March 31, 2021 - $58 million). Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table L - Activity in Non-Performing Loans (Unaudited) Commercial loans held-in-portfolio: Quarter ended Quarter ended 31-Mar-22 31-Dec-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $120,047 $5,532 $125,579 $183,394 $2,787 $186,181 Plus: New non-performing loans 6,127 2,999 9,126 2,297 3,208 5,505 Advances on existing non-performing loans - 2,505 2,505 - 35 35 Less: Non-performing loans transferred to OREO (3,052 ) - (3,052 ) (996 ) - (996 ) Non-performing loans charged-off (256 ) (73 ) (329 ) (2,412 ) (66 ) (2,478 ) Loans returned to accrual status / loan collections (5,084 ) (5,560 ) (10,644 ) (62,236 ) (432 ) (62,668 ) Ending balance NPLs $117,782 $5,403 $123,185 $120,047 $5,532 $125,579 Construction loans held-in-portfolio: Quarter ended Quarter ended 31-Mar-22 31-Dec-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $485 $- $485 $14,877 $- $14,877 Plus: New non-performing loans - - - 481 - 481 Less: Loans returned to accrual status / loan collections (485 ) - (485 ) (14,873 ) - (14,873 ) Ending balance NPLs $- $- $- $485 $- $485 Mortgage loans held-in-portfolio: Quarter ended Quarter ended 31-Mar-22 31-Dec-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $333,887 $21,969 $355,856 $354,555 $14,488 $369,043 Plus: New non-performing loans 38,193 4,800 42,993 36,210 12,084 48,294 Advances on existing non-performing loans - 134 134 - 14 14 Less: Non-performing loans transferred to OREO (10,344 ) (85 ) (10,429 ) (7,116 ) - (7,116 ) Non-performing loans charged-off (467 ) - (467 ) (366 ) (26 ) (392 ) Loans returned to accrual status / loan collections (54,709 ) (4,992 ) (59,701 ) (49,396 ) (4,591 ) (53,987 ) Ending balance NPLs $306,560 $21,826 $328,386 $333,887 $21,969 $355,856 Total non-performing loans held-in-portfolio (excluding consumer): Quarter ended Quarter ended 31-Mar-22 31-Dec-21 (In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc. Beginning balance NPLs $454,419 $27,501 $481,920 $552,826 $17,275 $570,101 Plus: New non-performing loans 44,320 7,799 52,119 38,988 15,292 54,280 Advances on existing non-performing loans - 2,639 2,639 - 49 49 Less: Non-performing loans transferred to OREO (13,396 ) (85 ) (13,481 ) (8,112 ) - (8,112 ) Non-performing loans charged-off (723 ) (73 ) (796 ) (2,778 ) (92 ) (2,870 ) Loans returned to accrual status / loan collections (60,278 ) (10,552 ) (70,830 ) (126,505 ) (5,023 ) (131,528 ) Ending balance NPLs $424,342 $27,229 $451,571 $454,419 $27,501 $481,920 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios (Unaudited) Quarters ended (Dollars in thousands) 31-Mar-22 31-Dec-21 31-Mar-21 Balance at beginning of period - loans held-in-portfolio $695,366 $718,575 $896,250 Provision for credit losses (benefit) (14,405 ) (31,421 ) (75,779 ) Initial allowance for credit losses - PCD Loans 612 331 1,356 681,573 687,485 821,827 Net loans charged-off (recovered): BPPR Commercial (4,230 ) (11,346 ) (1,434 ) Construction (416 ) (1,518 ) 5,917 Lease financing (434 ) 564 118 Mortgage (2,992 ) (4,398 ) 8,303 Consumer 13,574 9,083 6,570 Total BPPR 5,502 (7,615 ) 19,474 Popular U.S. Commercial (627 ) (387 ) 16 Construction (1,128 ) (213 ) - Mortgage (20 ) 569 (80 ) Consumer 54 (235 ) 1,620 Total Popular U.S. (1,721 ) (266 ) 1,556 Total loans charged-off (recovered) - Popular, Inc. 3,781 (7,881 ) 21,030 Balance at end of period - loans held-in-portfolio $677,792 $695,366 $800,797 Balance at beginning of period - unfunded commitments $7,897 $8,400 $15,851 Provision for credit losses (benefit) (843 ) (503 ) (6,282 ) Balance at end of period - unfunded commitments [1] $7,054 $7,897 $9,569 POPULAR, INC. Annualized net charge-offs (recoveries) to average loans held-in-portfolio 0.05 % (0.11 ) % 0.29 % Provision for credit losses (benefit) - loan portfolios to net charge-offs (380.98 ) % N.M. (360.34 ) % BPPR Annualized net charge-offs (recoveries) to average loans held-in-portfolio 0.11 % (0.15 ) % 0.36 % Provision for credit losses (benefit) - loan portfolios to net charge-offs (230.12 ) % N.M. (205.28 ) % Popular U.S. Annualized net charge-offs to average loans held-in-portfolio (0.08 ) % (0.01 ) % 0.08 % Provision for credit losses (benefit) - loan portfolios to net charge-offs 101.34 % N.M. N.M. N.M. - Not meaningful. [1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table N - Allowance for Credit Losses "ACL"- Loan Portfolios - CONSOLIDATED (Unaudited) 31-Mar-22 (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $204,643 $6,539 $149,206 $18,398 $299,006 $677,792 Total loans held-in-portfolio $14,028,246 $744,783 $7,326,346 $1,426,122 $6,062,693 $29,588,190 ACL to loans held-in-portfolio 1.46 % 0.88 % 2.04 % 1.29 % 4.93 % 2.29 % 31-Dec-21 (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $215,805 $6,363 $154,478 $17,578 $301,142 $695,366 Total loans held-in-portfolio $13,732,701 $716,220 $7,427,196 $1,381,319 $5,983,121 $29,240,557 ACL to loans held-in-portfolio 1.57 % 0.89 % 2.08 % 1.27 % 5.03 % 2.38 % Variance (Dollars in thousands) Commercial Construction Mortgage Lease financing Consumer Total Total ACL $(11,162 ) $176 $(5,272 ) $820 $(2,136 ) $(17,574 ) Total loans held-in-portfolio $295,545 $28,563 $(100,850 ) $44,803 $79,572 $347,633 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table O - Allowance for Credit Losses "ACL"- Loan Portfolios - PUERTO RICO OPERATIONS (Unaudited) 31-Mar-22 Puerto Rico (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $145,471 $2,414 $131,362 $18,398 $278,966 $576,611 Loans held-in-portfolio $7,557,755 $127,325 $6,123,663 $1,426,122 $5,777,394 $21,012,259 ACL to loans held-in-portfolio 1.92 % 1.90 % 2.15 % 1.29 % 4.83 % 2.74 % 31-Dec-21 Puerto Rico (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $151,928 $1,641 $138,286 $17,578 $284,729 $594,162 Loans held-in-portfolio $7,396,869 $87,111 $6,251,866 $1,381,319 $5,748,217 $20,865,382 ACL to loans held-in-portfolio 2.05 % 1.88 % 2.21 % 1.27 % 4.95 % 2.85 % Variance (In thousands) Commercial Construction Mortgage Lease financing Consumer Total ACL $(6,457 ) $773 $(6,924 ) $820 $(5,763 ) $(17,551 ) Loans held-in-portfolio $160,886 $40,214 $(128,203 ) $44,803 $29,177 $146,877 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table P - Allowance for Credit Losses "ACL"- Loan Portfolios - POPULAR U.S. OPERATIONS (Unaudited) 31-Mar-22 Popular U.S. (In thousands) Commercial Construction Mortgage Consumer Total ACL $59,172 $4,125 $17,844 $20,040 $101,181 Loans held-in-portfolio $6,470,491 $617,458 $1,202,683 $285,299 $8,575,931 ACL to loans held-in-portfolio 0.91 % 0.67 % 1.48 % 7.02 % 1.18 % 31-Dec-21 Popular U.S. (In thousands) Commercial Construction Mortgage Consumer Total ACL $63,877 $4,722 $16,192 $16,413 $101,204 Loans held-in-portfolio $6,335,832 $629,109 $1,175,330 $234,904 $8,375,175 ACL to loans held-in-portfolio 1.01 % 0.75 % 1.38 % 6.99 % 1.21 % Variance (In thousands) Commercial Construction Mortgage Consumer Total ACL $(4,705 ) $(597 ) $1,652 $3,627 $(23 ) Loans held-in-portfolio $134,659 $(11,651 ) $27,353 $50,395 $200,756 Popular, Inc. Financial Supplement to First Quarter 2022 Earnings Release Table Q - Reconciliation to GAAP Financial Measures (Unaudited) (In thousands, except share or per share information) 31-Mar-22 31-Dec-21 31-Mar-21 Total stockholders’ equity $4,671,246 $5,969,397 $5,897,559 Less: Preferred stock (22,143 ) (22,143 ) (22,143 ) Less: Goodwill (720,293 ) (720,293 ) (671,122 ) Less: Other intangibles (15,328 ) (16,219 ) (21,415 ) Total tangible common equity $3,913,482 $5,210,742 $5,182,879 Total assets $69,525,082 $75,097,899 $66,870,268 Less: Goodwill (720,293 ) (720,293 ) (671,122 ) Less: Other intangibles (15,328 ) (16,219 ) (21,415 ) Total tangible assets $68,789,461 $74,361,387 $66,177,731 Tangible common equity to tangible assets 5.69 % 7.01 % 7.83 % Common shares outstanding at end of period 76,487,523 79,851,169 84,379,180 Tangible book value per common share $51.16 $65.26 $61.42 Quarterly average Total stockholders’ equity [1] $5,983,309 $5,961,214 $5,693,672 Less: Preferred Stock (22,143 ) (22,143 ) (22,143 ) Less: Goodwill (720,292 ) (706,184 ) (671,121 ) Less: Other intangibles (15,881 ) (19,889 ) (22,104 ) Total tangible equity $5,224,993 $5,212,998 $4,978,304 Return on average tangible common equity 16.40 % 15.66 % 21.37 % [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