Popular, Inc. Announces Fourth Quarter 2023 Financial Results

Net income of $94.6 million in Q4 2023, compared to net income of $136.6 million in Q3 2023; excluding the $45.3 million after-tax impact during the fourth quarter of the FDIC Special Assessment (defined below), adjusted net income was $139.9 million.
Net income of $541.3 million for the year 2023, compared to net income of $1.1 billion for the year 2022. Excluding the effects of the FDIC Special Assessment, the adjusted net income for the year 2023 was $586.6 million, compared to an adjusted net income of $807.8 million for the year 2022, excluding the effects of the partial release of $68.2 million of the deferred tax asset valuation allowance and the $226.6 million impact of the completed Evertec Transactions and related accounting adjustments, in which the Corporation acquired certain critical channels from Evertec, Inc. (“Evertec”) and completed the sale of its shares of Evertec.
Net interest income amounted to $534.2 million, flat compared to Q3 2023.
Net interest margin of 3.08% in Q4 2023, compared to 3.07% in Q3 2023; net interest margin on a taxable equivalent basis of 3.26% in Q4 2023, compared to 3.24% in Q3 2023.
Non-interest income of $168.7 million, an increase of $9.2 million compared to Q3 2023.
Operating expenses amounted to $531.1 million, including the before-tax $71.4 million FDIC Special Assessment; an increase of $65.2 million compared to Q3 2023. Excluding the FDIC Special Assessment, operating expenses decreased by $6.2 million.
Credit Quality:
- Non-performing loans held-in-portfolio (“NPLs”) decreased by $3.9 million from Q3 2023; NPLs to loans ratio at 1.0% vs. 1.1% in Q3 2023;
- Net charge-offs (“NCOs”) increased by $24.3 million from Q3 2023; annualized NCOs at 0.66% of average loans held-in-portfolio vs. 0.39% in Q3 2023;
- Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.08% vs. 2.09% in Q3 2023; and
- ACL to NPLs at 204.0% vs. 196.7% in Q3 2023.
Loans ending balances increased by $1.0 billion and by $1.0 billion in average quarterly balances, from Q3 2023.
Ending deposit balances increased by $280.6 million while average quarterly balances increased by $285.9 million, from Q3 2023.
Common Equity Tier 1 ratio of 16.30%, Common Equity per Share of $71.03 and Tangible Book Value per Share of $59.74 at December 31, 2023.

Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $94.6 million for the quarter ended December 31, 2023, compared to net income of $136.6 million for the quarter ended September 30, 2023. Excluding the impact during the fourth quarter of the FDIC Special Assessment, adjusted net income was $139.9 million.

Ignacio Alvarez, President and Chief Executive Officer, said: “We delivered solid fourth quarter and year-end results and entered 2024 with strong momentum. Notwithstanding the interest rate environment and the disruptions in the banking market early in the year, we were able to maintain stable net interest income as we grew loans by approximately $1 billion during the quarter and a total of $3 billion for the full year.

We continued to experience strong client activity during the year, growing our customer base in Puerto Rico by 34,000 reflecting the continued strength of the local economy and our diversified product offerings. Excluding the gain from the Evertec transaction in 2022, we grew non-interest income by $11 million. While we saw some credit normalization in our consumer portfolios, credit quality remained strong. We were also able to manage our operating expenses at the same time we continued to invest in our transformation efforts.

Our CET1 ratio at year-end was 16.3% and our tangible equity increased by 33%, or $14.77 per share. Our strong liquidity and capital ratios position us well to continue to support responsible growth in 2024.

I would like to express my gratitude and appreciation to our employees for all their hard work and dedication during the year. While conscious that we are living in a period of great uncertainty, the outlook for the macroenvironment in Puerto Rico remains positive and we look forward to 2024 with optimism.”

Significant Events

FDIC Special Assessment

On November 16, 2023, the Federal Deposit Insurance Corporation (“FDIC”) approved a final rule that imposes a special assessment (the “FDIC Special Assessment”) to recover the losses to the deposit insurance fund (“DIF”) resulting from the FDIC’s use, in March 2023, of the systemic risk exception to the least-cost resolution test under the Federal Deposit Insurance Act in connection with the receiverships of several failed banks.

Under the final rule, the assessment base for the special assessment is equal to an insured depository institution’s (“IDI”) estimated uninsured deposits, as reported in the IDI’s December 31, 2022 Call Report, excluding the first $5 billion in estimated uninsured deposits. For a holding company that has more than one IDI subsidiary, such as Popular, the $5 billion exclusion is allocated among the company’s IDI subsidiaries in proportion to each IDI’s estimated uninsured deposits. The special assessments would be collected at an annual rate of approximately 13.4 basis points per year (3.35 basis points per quarter) over eight quarters in 2024 and 2025, with the first assessment period beginning January 1, 2024. In their December 31, 2022 Call Reports, Banco Popular de Puerto Rico (“BPPR”) and Popular Bank (“PB”) reported estimated uninsured deposits of approximately $28.1 billion, including $16.2 billion in fully collateralized public sector deposits, and $3.5 billion, respectively. The Corporation recorded an expense of $71.4 million, $45.3 million net of tax, in the fourth quarter of 2023, representing the full amount of the assessment.

Increase in quarterly common stock dividends

During the fourth quarter of 2023, the Corporation declared a quarterly common stock cash dividend of $0.62 per share, an increase of $0.07, or 13%, compared to the $0.55 per share declared by the Corporation in the third quarter of 2023.

Earnings Highlights

(Unaudited)

Quarters ended

Years ended

(Dollars in thousands, except per share information)

31-Dec-23

30-Sep-23

31-Dec-22

31-Dec-23

31-Dec-22

Net interest income

534,180

534,020

559,566

2,131,524

2,167,359

Provision for credit losses

78,663

45,117

49,531

208,609

83,030

Net interest income after provision for credit losses

455,517

488,903

510,035

1,922,915

2,084,329

Other non-interest income

168,743

159,549

158,465

650,724

897,062

Operating expenses

531,145

465,984

461,708

1,898,100

1,746,420

Income before income tax

93,115

182,468

206,792

675,539

1,234,971

Income tax (benefit) expense

(1,479

)

45,859

(50,347

)

134,197

132,330

Net income

94,594

136,609

257,139

541,342

1,102,641

Net income applicable to common stock

94,241

136,256

256,786

539,930

1,101,229

Net income per common share-basic

1.31

1.90

3.56

7.53

14.65

Net income per common share-diluted

1.31

1.90

3.56

7.52

14.63

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

Net interest income, on a taxable equivalent basis, is presented with its different components in Tables D and E for the quarter ended December 31, 2023 and comparable quarters September 30, 2023 and December 31, 2022, respectively, and Table F for the year ended December 31, 2023 and 2022. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.

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

Net interest income for the quarter ended December 31, 2023 was $534.2 million, flat when compared to $534.0 million in the previous quarter. Net interest income on a taxable equivalent basis for the fourth quarter of 2023 was $564.8 million, compared to $563.7 million in the previous quarter, an increase of $1.1 million.

Net interest margin for the fourth quarter of 2023 was 3.08% compared with 3.07% in the prior quarter. On a taxable equivalent basis, net interest margin for the fourth quarter of 2023 was 3.26%, compared to 3.24% for the prior quarter. The main quarter over quarter variances in net interest income on a taxable equivalent basis were:

Higher interest income from loans by $32.4 million resulting from an increase in average loans by $995 million, reflecting increases in BPPR and PB of $729 million and $266 million, respectively. All major loan categories in BPPR increased, while at PB the increase was mainly in the commercial and construction portfolios. Loan originations in a higher interest rate environment and the repricing of adjustable-rate loans resulted in a higher yield on loans by 17 basis points. All loan categories resulted in a higher yield quarter over quarter;

partially offset by:

Lower interest income from investment securities, trading and money market investments by $8.7 million driven mainly by lower volume of U.S. Treasury Securities, partially offset by stable volume of money market investments at a higher yield by seven basis points. The increase in the yield of money market investments is driven by the full quarter effect of the 25 basis points increase in market rates that occurred at the end of July; and

Higher interest expense on deposits by $25.1 million, mainly from the increase in cost of Puerto Rico government deposits by 34 basis points, or $10.3 million, and a higher volume and cost of PB interest bearing deposits by $555 million and 34 basis points, respectively, or $12.6 million.

Net interest income for the BPPR segment amounted to $454.9 million for the fourth quarter of 2023, an increase of $1.0 million when compared to $453.9 million in net interest income during the third quarter of 2023. Net interest margin for the BPPR segment increased five basis points to 3.19% compared to 3.14% in the third quarter of 2023. The increase in net interest margin reflects a higher volume of loans by $729 million across all loan categories, except construction loans, partially offset by a lower volume of investment securities, trading and money market investments by $1.6 billion driven by a decrease in deposits of $1.0 billion and a higher cost of deposits, mainly Puerto Rico government deposits. Earning assets yield improved 14 basis points from 4.74% to 4.88% in Q4 2023. The cost of interest-bearing deposits increased by 16 basis points to 2.41% from 2.25% the previous quarter. The increase in the cost of deposits mainly resulted from the repricing of public funds. Total deposit cost in the fourth quarter of 2023 was 1.79%, compared to 1.68% in the third quarter of 2023, an increase of 11 basis points.

Net interest income for PB was $85.6 million for the quarter ended December 31, 2023, a decrease of $1.8 million when compared to $87.4 million during the previous quarter. Net interest margin decreased by 18 basis points in the quarter to 2.72%, compared to 2.90% in the third quarter of 2023. The decrease in net interest margin was mostly driven by a higher cost of deposits, partially offset by a higher volume of loans and the repricing of adjustable-rate loans in the current interest rate environment. The cost of interest-bearing deposits was 3.66%, compared to 3.31% for the third quarter, or an increase of 34 basis points, while total deposit cost was 3.17%, compared to 2.84% in the previous quarter.

Non-interest income

Non-interest income amounted to $168.7 million for the fourth quarter of 2023, an increase of $9.2 million when compared to $159.5 million for the quarter ended September 30, 2023. The variance in non-interest income was driven primarily by:

a favorable variance in the fair value adjustment of equity securities by $3.6 million, mainly related to securities held for deferred benefit plans, which have an offsetting effect in personnel costs;

higher other service fees by $3.3 million due to an increase in contingent insurance commissions that are typically received during the fourth quarter and higher debit and credit card fees due to higher transactional volumes; and

a favorable variance in the adjustment for indemnity reserve on loans previously sold of $2.5 million.

Refer to Table B for further details.

Operating expenses

Operating expenses for the fourth quarter of 2023 totaled $531.1 million, including higher FDIC deposit insurance expense by $72.5 million due to the impact of the FDIC Special Assessment, an increase of $65.2 million when compared to the third quarter of 2023. Excluding the effect of the FDIC Special Assessment, total expenses for the fourth quarter of 2023 were $459.7 million, compared to $466.0 million in the previous quarter. During the fourth quarter of 2023, the Corporation incurred approximately $4.8 million in costs related to its technological and business process transformation initiative, compared to $3.8 million in the previous quarter, mainly in professional services and personnel costs. During the year 2023, the Corporation incurred approximately $21.5 million in transformation related costs, compared to $24.6 million incurred during the second half of the year 2022. The other variances in operating expenses for the quarter were driven primarily by:

higher other taxes expense by $6.0 million mainly due to an accrual reversal of $8.2 million during the third quarter of 2023 related to regulatory examination fees in BPPR;

higher business promotion expense by $4.8 million mainly due to $5.4 million of seasonal projects and higher donations granted during the quarter; partially offset by lower customer rewards programs expense in our credit card business by $2.0 million;

higher other operating expenses by $3.9 million mainly due to $1.4 million in higher sundry losses and an unfavorable variance of $1.1 million in net gains/losses recognized on the sale of foreclosed auto units;

higher technology and software expenses by $3.8 million mainly due to higher IT professional fees and network management expenses due to various ongoing technology projects; and

higher net occupancy expense by $2.2 million mainly due to an increase in buildings’ repairs and maintenance costs;

partially offset by:

a non-cash goodwill impairment of $23.0 million recorded during the previous quarter in our U.S. based equipment leasing subsidiary due to lower forecasted cash flows and an increase in the rate used to discount cash flows; and

lower processing and transactional services expense by $8.4 million mainly due to lower credit card processing expenses by $7.1 million as a result of annual volume growth incentives recognized during the quarter;

Full-time equivalent employees were 9,088 as of December 31, 2023, compared to 9,063 as of September 30, 2023.

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

Income taxes

For the quarter ended December 31, 2023, the Corporation recorded an income tax benefit of $1.5 million, compared to an income tax expense of $45.9 million for the previous quarter. The positive variance of $47.4 million is mostly attributed to a lower income before tax of $89.4 million, primarily due to the FDIC Special Assessment; the remaining variance is related to tax credits, higher exempt income, and other adjustments recorded during this quarter. The effective tax rate (“ETR”) for the 2023 fourth quarter was (1.6)%, compared to 25.1% for the third quarter. Excluding the impact of the FDIC Special Assessment, the ETR for the fourth quarter was 15.0%, compared to 25.1% for the third quarter.

The Corporation’s ETR for the year 2023 was 19.9%; excluding the FDIC Special Assessment, the ETR was 21.5%. The ETR of the Corporation is impacted by the composition and source of its taxable income. The Corporation expects its ETR for the year 2024 to be within a range from 19% to 23%.

Credit Quality

During the fourth quarter of 2023, the Corporation continued to reflect credit quality normalization. Non-performing loans (“NPLs”) and net charge offs (“NCOs”) continued below historical pre-pandemic averages. Consumer portfolios, however, reflected certain credit quality deterioration, particularly the personal loans and credit cards portfolios, with delinquencies and NCOs near or exceeding pre-pandemic levels. The auto loans portfolio also showed credit normalization, however, metrics remained below pre-pandemic levels. The commercial and mortgage portfolios continue to operate with historically low levels of NCOs and NPLs. We continue to closely monitor changes in the macroeconomic environment and on borrower performance given higher interest rates and inflationary pressures. However, management believes that the improvements over recent years in risk management practices and the risk profile of the Corporation’s loan portfolios position Popular to continue to operate successfully under the current environment.

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

At December 31, 2023, total NPLs held-in-portfolio decreased by $3.9 million from September 30, 2023. BPPR’s NPLs decreased by $5.1 million, mostly driven by lower mortgage NPLs by $12.3 million, in part offset by higher consumer NPLs by $4.9 million. The commercial NPLs remained flat quarter-over-quarter, the result of an $17.9 million relationship inflow, offset by a $5.3 million collateral dependent loan transferred to OREO, $6.4 million in loans returning to accrual status and $5.1 million in charge-offs. PB’s NPLs remained flat quarter-over-quarter. At December 31, 2023, the ratio of NPLs to total loans held-in-portfolio was 1.0%, compared to 1.1% in the third quarter of 2023.

Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $17.7 million quarter-over-quarter. In BPPR, total inflows increased by $15.0 million due to higher commercial inflows by $19.3 million driven by the abovementioned $17.9 million single relationship, in part offset by lower mortgage inflows by $4.3 million. PB inflows increased by $2.7 million, driven by higher commercial inflows.

NCOs amounted to $56.9 million, increasing by $24.3 million when compared to the third quarter of 2023. BPPR’s NCOs increased by $26.3 million quarter-over-quarter, mainly driven by higher commercial and consumer NCOs by $14.4 million and $11.2 million, respectively. The commercial NCO increase was mainly the result of a $10.8 million recovery from a loan pay-off in the previous quarter, coupled with charge-offs on valuations of collateral dependent loans during the fourth quarter of 2023. The consumer NCO increase was mainly driven by higher auto loans, personal loans and credit cards NCOs by $5.9 million, $3.1 million and $2.2 million, respectively. PB’s NCOs decreased by $2.0 million quarter-over-quarter, mainly driven by lower commercial NCOs. During the fourth quarter of 2023, the Corporation’s ratio of annualized NCOs to average loans held-in-portfolio was 0.66%, compared to 0.39% in the third quarter of 2023. Refer to Table N for further information on NCOs and related ratios.

At December 31, 2023, the allowance for credit losses (“ACL”) increased by $18.3 million from the third quarter of 2023 to $729.3 million. In BPPR the ACL increased by $15.3 million, primarily driven by a $10.0 million specific reserve for the $17.9 million new NPL mentioned above, loan growth and higher reserves for the consumer portfolios attributable to changing credit quality. In PB the ACL increased by $2.9 million from the previous quarter, mainly driven by higher reserves for the commercial portfolio due to changes in ratings.

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, and then the optimistic scenario.

The 2023 annualized GDP growth in the baseline scenario improved to 2.0% and 2.4% for Puerto Rico and the United States, respectively, compared to 1.7% and 2.0% in the previous quarter. The 2023 forecasted average unemployment rate for Puerto Rico remained at 6.1% from previous forecast, while in the United States unemployment levels remained stable at 3.7%, compared to 3.6% in the previous forecast.

GDP growth is expected to slow down during 2024 for both regions, when compared to 2023, as a result of the Fed’s monetary policy. The 2024 GDP growth is expected to be 1.21% for Puerto Rico and 1.65% for the United States. The average 2024 unemployment rate is expected to increase to 6.79% in Puerto Rico and 3.95% in the United States.

The Corporation’s ratio of the ACL to loans held-in-portfolio was 2.08% in the fourth quarter of 2023, compared to 2.09% in the previous quarter. The ratio of the ACL to NPLs held-in-portfolio stood at 204.0%, compared to 196.7% in the previous quarter.

The provision for credit losses for the loan portfolios for the fourth quarter of 2023 was $75.2 million, compared to $43.5 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was $67.2 million, compared to $54.0 million in the previous quarter, while the provision for PB was $8.0 million, compared to a benefit of $10.5 million in the previous quarter. In the third quarter, the Corporation implemented a new model for the U.S. commercial real estate portfolio. The implementation of this new model generated a $15.0 million reduction in reserves, which contributed to PB’s net benefit recorded in the third quarter.

The provision for credit losses on our loan and lease portfolios, provision for unfunded loan commitments of $3.7 million, and release for credit losses on our investment portfolio of $0.2 million for the fourth quarter are aggregated and presented in the provision for credit losses caption in our Consolidated Statement of Operations. For the fourth quarter, these combined concepts resulted in a provision expense of $78.7 million, compared to $45.1 million in the previous quarter.

Non-Performing Assets

(Unaudited)

(In thousands)

31-Dec-23

30-Sep-23

31-Dec-22

Non-performing loans held-in-portfolio

357,611

361,523

439,441

Other real estate owned (“OREO”)

80,416

82,322

89,126

Total non-performing assets

438,027

443,845

528,567

Net charge-offs (recoveries) for the quarter

56,947

32,655

31,200

Ratios:

Loans held-in-portfolio

35,064,971

34,029,313

32,077,769

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

1.02

1.06

1.37

Allowance for credit losses to loans held-in-portfolio

2.08

2.09

2.25

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

203.95

196.69

163.91

Refer to Table L for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios

(Unaudited)

Quarters ended

Years ended

(In thousands)

31-Dec-23

30-Sep-23

31-Dec-22

31-Dec-23

31-Dec-22

Provision for credit losses (benefit) - loan portfolios:

BPPR

67,235

54,017

44,383

194,834

69,544

Popular U.S.

7,983

(10,503

)

3,949

6,705

13,763

Total provision for credit losses (benefit) - loan portfolios

75,218

43,514

48,332

201,539

83,307

Credit Quality by Segment

(Unaudited)

(In thousands)

Quarters ended

BPPR

31-Dec-23

30-Sep-23

31-Dec-22

Provision for credit losses - loan portfolios

67,235

54,017

44,383

Net charge-offs

51,913

25,600

19,846

Total non-performing loans held-in-portfolio

328,718

333,825

402,009

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

0.86

0.44

0.35

Allowance / loans held-in-portfolio

2.61

2.63

2.73

Allowance / non-performing loans held-in-portfolio

194.65

187.08

153.12

Quarters ended

Popular U.S.

31-Dec-23

30-Sep-23

31-Dec-22

Provision for credit losses - loan portfolios

7,983

(10,503

)

3,949

Net charge-offs

5,034

7,055

11,354

Total non-performing loans held-in-portfolio

28,893

27,698

37,432

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

0.19

0.28

0.49

Allowance / loans held-in-portfolio

0.85

0.84

1.10

Allowance / non-performing loans held-in-portfolio

309.70

312.42

279.86

Financial Condition Highlights

(Unaudited)

(In thousands)

31-Dec-23

30-Sep-23

31-Dec-22

Cash and money market investments

7,419,333

6,924,772

6,084,096

Investment securities

25,148,673

25,653,616

26,553,317

Loans

35,064,971

34,029,313

32,077,769

Total assets

70,758,155

69,736,936

67,637,917

Deposits

63,618,243

63,337,600

61,227,227

Borrowings

1,078,332

1,097,720

1,400,319

Total liabilities

65,611,202

65,279,328

63,544,492

Stockholders’ equity

5,146,953

4,457,608

4,093,425

Total assets amounted to $70.8 billion at December 31, 2023, an increase of $1.0 billion from the third quarter of 2023, driven by:

an increase in loans held-in-portfolio of $1.0 billion driven by an increase of $748.4 million at BPPR, mainly in the commercial portfolio as well as in mortgage and consumer loans, and an increase of $287.3 million at PB mainly from commercial and construction loans; and
a net increase in cash and money market investments of $494.6 million due to higher deposits and repayments from the investment portfolio;

partially offset by:

a decrease in securities available-for-sale (“AFS”) of $400.8 million, mainly due to repayments and maturities, offset in part by favorable changes in the fair value of debt securities; and

a decrease in securities held-to-maturity (“HTM”) of $107.5 million driven by maturities of U.S. Treasury securities, partially offset by the amortization of $44.2 million of the discount related to U.S. Treasury securities previously reclassified from the AFS to HTM, which has an offsetting unrealized loss included within other comprehensive income that is also being accreted, resulting in a neutral effect to earnings.

Total liabilities increased by $331.9 million from the third quarter of 2023, driven by:

an increase of $280.6 million in deposits, mainly in time deposits and savings accounts at PB and demand deposits and P.R. public sector accounts at BPPR, partially offset by a decrease in savings accounts at BPPR; and
an increase of $70.6 million in other liabilities mainly due to the $71.4 million FDIC Special Assessment recognized during the fourth quarter.

Stockholders' equity increased by $689.3 million from the third quarter of 2023, mainly due to the after-tax impact of the decrease in net unrealized losses in the portfolio of AFS securities of $593.2 million, the net income for the quarter of $94.6 million and the amortization of unrealized losses from securities previously reclassified to HTM of $35.3 million, net of taxes, partially offset by common and preferred dividends declared during the quarter.

Common Equity Tier 1 ratio (“CET1”), common equity per share and tangible book value per share were 16.30%, $71.03 and $59.74, respectively, at December 31, 2023, compared to 16.81%, $61.49 and $50.20, respectively, at September 30, 2023. Refer to Table A for capital ratios.

Refer to Table C for the Statements of Financial Condition.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those regarding Popular’s business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes (including on our cost of deposits), our ability to attract deposits and grow our loan portfolio, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings, new regulatory requirements or accounting standards on the Corporation’s financial condition and results of operations, the occurrence of unforeseen or catastrophic events, including extreme weather events, pandemics, man-made disasters or acts of violence or war, as well as actions taken by governmental authorities in response thereto, and the direct and indirect impact of such events on Popular, our customers, service providers and third parties. Other potential factors include Popular’s ability to successfully execute its transformation initiative, including, but not limited to, achieving projected earnings, efficiencies and return on tangible common equity and accurately anticipating costs and expenses associated therewith, imposition of additional or special FDIC assessments, changes to regulatory capital, liquidity and resolution-related requirements applicable to financial institutions in response to recent developments affecting the banking sector and the impact of bank failures or adverse developments at other banks and related negative media coverage of the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions, and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, are generally intended to identify forward-looking statements.

More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Form 10-K for the year ended December 31, 2022, in our Form 10-Q for the quarters ended March 31, 2023, June 30, 2023, and September 30, 2023 and in our Form 10-K for the year ended December 31, 2023 to be filed with the Securities and Exchange Commission. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.

About Popular, Inc.

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

Conference Call

Popular will hold a conference call to discuss its financial results today, Thursday, January 25, 2024 at 10:00 a.m. Eastern Time. The call will be broadcast live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 1-833-470-1428 (Toll Free) or 1-404-975-4839 (Local). The dial-in access code is 803461.

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 Friday, February 23, 2024. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 212082.

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

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table A - Selected Ratios and Other Information

Table B - Consolidated Statement of Operations

Table C - Consolidated Statement of Financial Condition

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

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

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

Table G - Mortgage Banking Activities and Other Service Fees

Table H - Loans and Deposits

Table I - Loan Delinquency - BPPR Operations

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

Table K - Loan Delinquency - Consolidated

Table L - Non-Performing Assets

Table M - Activity in Non-Performing Loans

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

Table O - Allowance for Credit Losses ''ACL'' - Loan Portfolios - Consolidated

Table P - Allowance for Credit Losses ''ACL'' - Loan Portfolios - BPPR Operations

Table Q - Allowance for Credit Losses ''ACL'' - Loan Portfolios - Popular U.S. Operations

Table R - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

Quarters ended

Years ended

31-Dec-23

30-Sep-23

31-Dec-22

31-Dec-23

31-Dec-22

Basic EPS

1.31

1.90

3.56

7.53

14.65

Diluted EPS

1.31

1.90

3.56

7.52

14.63

Average common shares outstanding

71,810,073

71,794,934

72,101,177

71,710,265

75,147,263

Average common shares outstanding - assuming dilution

71,881,020

71,818,102

72,192,680

71,791,692

75,274,003

Common shares outstanding at end of period

72,153,621

72,127,595

71,853,720

72,153,621

71,853,720

Market value per common share

82.07

63.01

66.32

82.07

66.32

Market capitalization - (In millions)

5,922

4,545

4,765

5,922

4,765

Return on average assets

0.52

0.75

1.44

0.76

1.51

Return on average common equity

5.55

8.17

16.59

8.21

18.39

Net interest margin (non-taxable equivalent basis)

3.08

3.07

3.28

3.13

3.11

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

3.26

3.24

3.64

3.31

3.46

Common equity per share

71.03

61.49

56.66

71.03

56.66

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

59.74

50.20

44.97

59.74

44.97

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

6.16

5.25

4.84

6.16

4.84

Return on average tangible common equity [1]

6.32

9.36

19.23

9.40

21.13

Tier 1 capital

16.36

16.88

16.45

16.36

16.45

Total capital

18.13

18.67

18.26

18.13

18.26

Tier 1 leverage

8.51

8.41

8.06

8.51

8.06

Common Equity Tier 1 capital

16.30

16.81

16.39

16.30

16.39

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

POPULAR, INC.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

Quarters ended

Variance

Quarter ended

Variance

Years ended

Q4 2023

(In thousands, except per share information)

31-Dec-23

30-Sep-23

vs. Q3 2023

31-Dec-22

vs. Q4 2022

31-Dec-23

31-Dec-22

Interest income:

Loans

623,438

596,886

26,552

522,042

101,396

2,331,654

1,876,166

Money market investments

100,840

99,286

1,554

50,908

49,932

366,625

118,080

Investment securities

143,214

148,614

(5,400

)

140,244

2,970

547,028

471,665

Total interest income

867,492

844,786

22,706

713,194

154,298

3,245,307

2,465,911

Interest expense:

Deposits

319,200

294,121

25,079

139,338

179,862

1,050,024

252,845

Short-term borrowings

1,342

1,478

(136

)

4,488

(3,146

)

7,329

5,737

Long-term debt

12,770

15,167

(2,397

)

9,802

2,968

56,430

39,970

Total interest expense

333,312

310,766

22,546

153,628

179,684

1,113,783

298,552

Net interest income

534,180

534,020

160

559,566

(25,386

)

2,131,524

2,167,359

Provision for credit losses

78,663

45,117

33,546

49,531

29,132

208,609

83,030

Net interest income after provision for credit losses

455,517

488,903

(33,386

)

510,035

(54,518

)

1,922,915

2,084,329

Service charges on deposit accounts

37,699

37,318

381

34,682

3,017

147,476

157,210

Other service fees

96,692

93,407

3,285

89,022

7,670

374,440

334,009

Mortgage banking activities

6,388

5,393

995

6,562

(174

)

21,497

42,450

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

2,317

(1,319

)

3,636

317

2,000

3,482

(7,334

)

Net gain (loss) on trading account debt securities

750

219

531

162

588

1,382

(784

)

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

(71

)

(44

)

(27

)

(71

)

(115

)

Adjustments to indemnity reserves on loans sold

2,350

(187

)

2,537

(221

)

2,571

2,319

919

Other operating income

22,618

24,762

(2,144

)

27,941

(5,323

)

100,243

370,592

Total non-interest income

168,743

159,549

9,194

158,465

10,278

650,724

897,062

Operating expenses:

Personnel costs

Salaries

127,809

127,832

(23

)

116,503

11,306

505,935

432,910

Commissions, incentives and other bonuses

26,632

27,670

(1,038

)

39,570

(12,938

)

112,657

155,889

Pension, postretirement and medical insurance

17,598

16,985

613

12,452

5,146

67,469

56,085

Other personnel costs, including payroll taxes

22,626

20,665

1,961

21,612

1,014

91,984

74,880

Total personnel costs

194,665

193,152

1,513

190,137

4,528

778,045

719,764

Net occupancy expenses

30,282

28,100

2,182

27,812

2,470

111,586

106,169

Equipment expenses

10,179

8,905

1,274

9,828

351

37,057

35,626

Other taxes

14,636

8,590

6,046

16,142

(1,506

)

55,926

63,603

Professional fees

39,065

38,514

551

49,159

(10,094

)

161,142

172,043

Technology and software expenses

76,772

72,930

3,842

78,264

(1,492

)

290,615

291,902

Processing and transactional services

Credit and debit cards

6,682

13,762

(7,080

)

10,278

(3,596

)

44,578

45,455

Other processing and transactional services

22,779

24,137

(1,358

)

22,509

270

93,492

81,690

Total processing and transactional services

29,461

37,899

(8,438

)

32,787

(3,326

)

138,070

127,145

Communications

4,181

4,220

(39

)

3,857

324

16,664

14,885

Business promotion

Rewards and customer loyalty programs

14,130

15,988

(1,858

)

13,538

592

59,092

51,832

Other business promotion

13,767

7,087

6,680

14,596

(829

)

35,834

37,086

Total business promotion

27,897

23,075

4,822

28,134

(237

)

94,926

88,918

FDIC deposit insurance

81,385

8,932

72,453

6,342

75,043

105,985

26,787

Other real estate owned (OREO) income

(5,178

)

(5,189

)

(9,180

)

4,002

(15,375

)

(22,143

)

Other operating expenses

Operational losses

6,921

5,504

1,417

9,018

(2,097

)

23,505

32,049

All other

20,084

17,557

2,527

18,614

1,470

73,774

77,397

Total other operating expenses

27,005

23,061

3,944

27,632

(627

)

97,279

109,446

Amortization of intangibles

795

794

3,180

3,275

Goodwill impairment charge

23,000

(23,000

)

23,000

9,000

Total operating expenses

531,145

465,984

65,161

461,708

69,437

1,898,100

1,746,420

Income before income tax

93,115

182,468

(89,353

)

206,792

(113,677

)

675,539

1,234,971

Income tax (benefit) expense

(1,479

)

45,859

(47,338

)

(50,347

)

48,868

134,197

132,330

Net income

94,594

136,609

(42,015

)

257,139

(162,545

)

541,342

1,102,641

Net income applicable to common stock

94,241

136,256

(42,015

)

256,786

(162,545

)

539,930

1,101,229

Net income per common share - basic

1.31

1.90

(0.59

)

3.56

(2.25

)

7.53

14.65

Net income per common share - diluted

1.31

1.90

(0.59

)

3.56

(2.25

)

7.52

14.63

Dividends Declared per Common Share

0.62

0.55

0.07

0.55

0.07

2.27

2.20

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

Variance

Q4 2023 vs.

(In thousands)

31-Dec-23

30-Sep-23

31-Dec-22

Q3 2023

Assets:

Cash and due from banks

420,462

535,335

469,501

(114,873

)

Money market investments

6,998,871

6,389,437

5,614,595

609,434

Trading account debt securities, at fair value

31,568

30,988

27,723

580

Debt securities available-for-sale, at fair value

16,729,044

17,129,858

17,804,374

(400,814

)

Debt securities held-to-maturity, at amortized cost

8,194,335

8,302,082

8,525,366

(107,747

)

Less: Allowance for credit losses

5,780

6,057

6,911

(277

)

Total debt securities held-to-maturity, net

8,188,555

8,296,025

8,518,455

(107,470

)

Equity securities

193,726

190,688

195,854

3,038

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

4,301

5,239

5,381

(938

)

Loans held-in-portfolio

35,420,879

34,369,775

32,372,925

1,051,104

Less: Unearned income

355,908

340,462

295,156

15,446

Allowance for credit losses

729,341

711,068

720,302

18,273

Total loans held-in-portfolio, net

34,335,630

33,318,245

31,357,467

1,017,385

Premises and equipment, net

565,284

534,384

498,711

30,900

Other real estate

80,416

82,322

89,126

(1,906

)

Accrued income receivable

263,433

257,833

240,195

5,600

Mortgage servicing rights, at fair value

118,109

119,030

128,350

(921

)

Other assets

2,014,564

2,032,565

1,847,813

(18,001

)

Goodwill

804,428

827,428

Other intangible assets

9,764

10,559

12,944

(795

)

Total assets

70,758,155

69,736,936

67,637,917

1,021,219

Liabilities and Stockholders’ Equity:

Liabilities:

Deposits:

Non-interest bearing

15,419,624

15,201,374

15,960,557

218,250

Interest bearing

48,198,619

48,136,226

45,266,670

62,393

Total deposits

63,618,243

63,337,600

61,227,227

280,643

Assets sold under agreements to repurchase

91,384

93,071

148,609

(1,687

)

Other short-term borrowings

365,000

Notes payable

986,948

1,004,649

886,710

(17,701

)

Other liabilities

914,627

844,008

916,946

70,619

Total liabilities

65,611,202

65,279,328

63,544,492

331,874

Stockholders’ equity:

Preferred stock

22,143

Common stock

1,048

1,047

Surplus

4,843,399

4,797,364

4,790,993

46,035

Retained earnings

4,194,851

4,189,865

3,834,348

4,986

Treasury stock

(2,018,957

)

(2,018,870

)

(2,030,178

)

(87

)

Accumulated other comprehensive loss, net of tax

(1,895,531

)

(2,533,942

)

(2,524,928

)

638,411

Total stockholders’ equity

5,146,953

4,457,608

4,093,425

689,345

Total liabilities and stockholders’ equity

70,758,155

69,736,936

67,637,917

1,021,219

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

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

For the quarters ended December 31, 2023 and September 30, 2023

(Unaudited)

Variance

Average Volume

Average Yields / Costs

Interest

Attributable to

31-Dec-23

30-Sep-23

Variance

31-Dec-23

30-Sep-23

Variance

31-Dec-23

30-Sep-23

Variance

Rate

Volume

(In millions)

(In thousands)

7,307

7,292

5.47

5.40

0.07

Money market investments

100,840

99,285

1,555

1,352

203

27,099

28,396

(1,297

)

2.28

2.31

(0.03

)

Investment securities [1]

155,118

165,319

(10,201

)

(2,704

)

(7,497

)

3.72

4.43

(0.71

)

Trading securities

293

375

(82

)

(58

)

(24

)

Total money market,

investment and trading

34,437

35,722

(1,285

)

2.96

2.95

0.01

securities

256,251

264,979

(8,728

)

(1,410

)

(7,318

)

Loans:

17,251

16,611

640

6.71

6.64

0.07

Commercial

291,791

277,977

13,814

2,952

10,862

927

865

9.04

8.99

0.05

Construction

21,131

19,580

1,551

121

1,430

1,707

1,669

6.60

6.50

0.10

Leasing

28,174

27,142

1,032

408

624

7,626

7,504

122

5.83

5.42

0.41

Mortgage

111,215

101,700

9,515

7,844

1,671

3,215

3,147

13.43

13.39

0.04

Consumer

108,859

105,042

3,817

1,368

2,449

3,722

3,657

8.61

8.47

0.14

Auto

80,731

78,055

2,676

1,272

1,404

34,448

33,453

995

7.41

7.24

0.17

Total loans

641,901

609,496

32,405

13,965

18,440

68,885

69,175

(290

)

5.18

5.02

0.16

Total earning assets

898,152

874,475

23,677

12,555

11,122

Interest bearing deposits:

25,027

25,652

(625

)

3.60

3.31

0.29

NOW and money market [2]

227,079

213,957

13,122

18,199

(5,077

)

14,934

14,875

0.85

0.73

0.12

Savings

32,073

27,373

4,700

3,852

848

8,288

7,986

302

2.87

2.62

0.25

Time deposits

60,048

52,791

7,257

4,676

2,581

48,249

48,513

(264

)

2.62

2.41

0.21

Total interest bearing deposits

319,200

294,121

25,079

26,727

(1,648

)

15,017

15,038

(21

)

Non-interest bearing demand deposits

63,266

63,551

(285

)

2.00

1.84

0.16

Total deposits

319,200

294,121

25,079

26,727

(1,648

)

108

(14

)

5.64

5.45

0.19

Short-term borrowings

1,342

1,478

(136

)

(187

)

Other medium and

1,018

1,172

(154

)

5.04

5.20

(0.16

)

long-term debt

12,770

15,167

(2,397

)

346

(2,743

)

Total interest bearing

49,361

49,793

(432

)

2.68

2.48

0.20

liabilities (excluding demand deposits)

333,312

310,766

22,546

27,124

(4,578

)

4,507

4,344

163

Other sources of funds

68,885

69,175

(290

)

1.92

1.78

0.14

Total source of funds

333,312

310,766

22,546

27,124

(4,578

)

Net interest margin/

3.26

3.24

0.02

income on a taxable equivalent basis (Non-GAAP)

564,840

563,709

1,131

(14,569

)

15,700

2.50

2.54

(0.04

Net interest spread

Taxable equivalent adjustment

30,660

29,689

971

Net interest margin/ income

3.08

3.07

0.01

non-taxable equivalent basis (GAAP)

534,180

534,020

160

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

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

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

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

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

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

(Unaudited)

Variance

Average Volume

Average Yields / Costs

Interest

Attributable to

31-Dec-23

31-Dec-22

Variance

31-Dec-23

31-Dec-22

Variance

31-Dec-23

31-Dec-22

Variance

Rate

Volume

(In millions)

(In thousands)

7,307

5,262

2,045

5.47

3.84

1.63

Money market investments

100,840

50,907

49,933

26,116

23,817

27,099

30,843

(3,744

)

2.28

2.44

(0.16

)

Investment securities [1]

155,118

189,190

(34,072

)

(11,762

)

(22,310

)

3.72

4.28

(0.56

)

Trading securities

293

325

(32

)

(44

)

Total money market,

investment and trading

34,437

36,135

(1,698

)

2.96

2.65

0.31

securities

256,251

240,422

15,829

14,310

1,519

Loans:

17,251

15,503

1,748

6.71

6.01

0.70

Commercial

291,791

234,707

57,084

29,111

27,973

927

769

158

9.04

7.54

1.50

Construction

21,131

14,615

6,516

3,195

3,321

1,707

1,557

150

6.60

5.92

0.68

Leasing

28,174

23,049

5,125

2,777

2,348

7,626

7,346

280

5.83

5.38

0.45

Mortgage

111,215

98,880

12,335

8,475

3,860

3,215

2,961

254

13.43

12.26

1.17

Consumer

108,859

91,518

17,341

8,666

8,675

3,722

3,576

146

8.61

7.98

0.63

Auto

80,731

71,910

8,821

5,800

3,021

34,448

31,712

2,736

7.41

6.70

0.71

Total loans

641,901

534,679

107,222

58,024

49,198

68,885

67,847

1,038

5.18

4.54

0.64

Total earning assets

898,152

775,101

123,051

72,334

50,717

Interest bearing deposits:

25,027

24,399

628

3.60

1.73

1.87

NOW and money market [2]

227,079

106,591

120,488

112,821

7,667

14,934

15,248

(314

)

0.85

0.29

0.56

Savings

32,073

10,971

21,102

20,942

160

8,288

6,675

1,613

2.87

1.29

1.58

Time deposits

60,048

21,776

38,272

28,320

9,952

48,249

46,322

1,927

2.62

1.19

1.43

Total interest bearing deposits

319,200

139,338

179,862

162,083

17,779

15,017

16,110

(1,093

)

Non-interest bearing demand deposits

63,266

62,432

834

2.00

0.89

1.11

Total deposits

319,200

139,338

179,862

162,083

17,779

450

(356

)

5.64

3.96

1.68

Short-term borrowings

1,342

4,488

(3,146

)

1,404

(4,550

)

Other medium and

1,018

913

105

5.04

4.30

0.74

long-term debt

12,770

9,802

2,968

1,293

1,675

Total interest bearing

49,361

47,685

1,676

2.68

1.28

1.40

liabilities (excluding demand deposits)

333,312

153,628

179,684

164,780

14,904

4,507

4,052

455

Other sources of funds

68,885

67,847

1,038

1.92

0.90

1.02

Total source of funds

333,312

153,628

179,684

164,780

14,904

Net interest margin/

3.26

3.64

(0.38

income on a taxable equivalent basis (Non-GAAP)

564,840

621,473

(56,633

)

(92,446

)

35,813

2.50

3.26

(0.76

Net interest spread

Taxable equivalent adjustment

30,660

61,907

(31,247

)

Net interest margin/ income

3.08

3.28

(0.20

non-taxable equivalent basis (GAAP)

534,180

559,566

(25,386

)

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

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

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

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

(Unaudited)

Variance

Average Volume

Average Yields / Costs

Interest

Attributable to

31-Dec-23

31-Dec-22

Variance

31-Dec-23

31-Dec-22

Variance

31-Dec-23

31-Dec-22

Variance

Rate

Volume

(In millions)

(In thousands)

7,052

9,531

(2,479)

5.20

1.24

3.96

Money market investments

366,625

118,079

248,546

286,646

(38,100)

27,926

29,743

(1,817)

2.20

2.23

(0.03)

Investment securities [1]

615,758

664,278

(48,520)

(8,273)

(40,247)

(19)

4.32

5.94

(1.62)

Trading securities

1,376

3,049

(1,673)

(700)

(973)

Total money market,

investment and trading

35,010

39,325

(4,315)

2.81

2.00

0.81

securities

983,759

785,406

198,353

277,673

(79,320)

Loans:

16,469

14,562

1,907

6.55

5.46

1.09

Commercial

1,079,171

795,115

284,056

171,681

112,375

816

778

8.86

6.29

2.57

Construction

72,309

48,920

23,389

20,927

2,462

1,650

1,475

175

6.38

5.92

0.46

Leasing

105,309

87,274

18,035

7,203

10,832

7,482

7,322

160

5.55

5.34

0.21

Mortgage

414,992

391,133

23,859

15,212

8,647

3,115

2,743

372

13.19

11.66

1.53

Consumer

410,910

319,920

90,990

43,806

47,184

3,633

3,525

108

8.39

8.02

0.37

Auto

304,660

282,533

22,127

13,257

8,870

33,165

30,405

2,760

7.20

6.33

0.87

Total loans

2,387,351

1,924,895

462,456

272,086

190,370

68,175

69,730

(1,555)

4.94

3.89

1.05

Total earning assets

3,371,110

2,710,301

660,809

549,759

111,050

Interest bearing deposits:

24,563

25,884

(1,321)

3.10

0.61

2.49

NOW and money market [2]

761,647

158,664

602,983

612,470

(9,487)

14,900

15,886

(986)

0.68

0.20

0.48

Savings

101,334

32,400

68,934

74,110

(5,176)

7,776

6,853

923

2.41

0.90

1.51

Time deposits

187,043

61,781

125,262

100,043

25,219

47,239

48,623

(1,384)

2.22

0.52

1.70

Total interest bearing deposits

1,050,024

252,845

797,179

786,623

10,556

15,307

16,094

(787)

Non-interest bearing demand deposits

62,546

64,717

(2,171)

1.68

0.39

1.29

Total deposits

1,050,024

252,845

797,179

786,623

10,556

143

206

(63)

5.12

2.78

2.34

Short-term borrowings

7,329

5,737

1,592

4,506

(2,914)

Other medium and

1,109

939

170

5.09

4.26

0.83

long-term debt

56,430

39,970

16,460

9,458

7,002

Total interest bearing

48,491

49,768

(1,277)

2.30

0.60

1.70

liabilities (excluding demand deposits)

1,113,783

298,552

815,231

800,587

14,644

4,377

3,868

509

Other sources of funds

68,175

69,730

(1,555)

1.63

0.43

1.20

Total source of funds

1,113,783

298,552

815,231

800,587

14,644

Net interest margin/

3.31

3.46

(0.15)

income on a taxable equivalent basis (Non-GAAP)

2,257,327

2,411,749

(154,422)

(250,828)

96,406

2.64

3.29

(0.65)

Net interest spread

Taxable equivalent adjustment

125,803

244,390

(118,587)

Net interest margin/ income

3.13

3.11

0.02

non-taxable equivalent basis (GAAP)

2,131,524

2,167,359

(35,835)

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

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

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table G - Mortgage Banking Activities and Other Service Fees

(Unaudited)

Mortgage Banking Activities

Quarters ended

Variance

Years ended

Variance

(In thousands)

31-Dec-23

30-Sep-23

31-Dec-22

Q4 2023 vs.Q3 2023

Q4 2023 vs.Q4 2022

31-Dec-23

31-Dec-22

2023 vs. 2022

Mortgage servicing fees, net of fair value adjustments:

Mortgage servicing fees

7,898

8,025

8,852

(127

)

(954

)

32,981

36,487

(3,506

)

Mortgage servicing rights fair value adjustments

(1,204

)

(2,793

)

(2,610

)

1,589

1,406

(11,589

)

236

(11,825

)

Total mortgage servicing fees, net of fair value adjustments

6,694

5,232

6,242

1,462

452

21,392

36,723

(15,331

)

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

(335

)

123

380

(78

)

(88

)

(251

)

163

Trading account (loss) profit:

Unrealized (loss) gains on outstanding derivative positions

(298

)

(343

)

(298

)

(138

)

(138

)

Realized (losses) gains on closed derivative positions

(47

)

494

310

(541

)

(357

)

614

6,635

(6,021

)

Total trading account (loss) profit

(345

)

539

310

(884

)

(655

)

476

6,635

(6,159

)

Losses on repurchased loans, including interest advances

)

(43

)

(113

)

107

(283

)

(657

)

374

Total mortgage banking activities

6,388

5,393

6,562

995

(174

)

21,497

42,450

(20,953

)

Other Service Fees

Quarters ended

Variance

Years ended

Variance

(In thousands)

31-Dec-23

30-Sep-23

31-Dec-22

Q4 2023 vs.Q3 2023

Q4 2023 vs.Q4 2022

31-Dec-23

31-Dec-22

2023 vs. 2022

Other service fees:

Debit card fees

13,944

13,577

13,379

367

565

54,287

50,173

4,114

Insurance fees

16,739

14,983

14,587

1,756

2,152

60,220

56,457

3,763

Credit card fees

41,439

40,804

39,777

635

1,662

165,385

149,403

15,982

Sale and administration of investment products

6,862

6,820

5,793

1,069

26,316

23,553

2,763

Trust fees

6,716

6,381

5,223

335

1,493

25,472

22,799

2,673

Other fees

10,992

10,842

10,263

150

729

42,760

31,624

11,136

Total other service fees

96,692

93,407

89,022

3,285

7,670

374,440

334,009

40,431

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table H - Loans and Deposits

(Unaudited)

Loans - Ending Balances

Variance

(In thousands)

31-Dec-23

30-Sep-23

31-Dec-22

Q4 2023 vs.Q3 2023

Q4 2023 vs.Q4 2022

Loans held-in-portfolio:

Commercial

Commercial multi-family

2,415,620

2,328,433

2,321,713

87,187

93,907

Commercial real estate non-owner occupied

5,087,421

5,035,130

4,499,670

52,291

587,751

Commercial real estate owner occupied

3,080,635

3,044,905

3,078,549

35,730

2,086

Commercial and industrial

7,126,121

6,527,082

5,839,200

599,039

1,286,921

Total Commercial

17,709,797

16,935,550

15,739,132

774,247

1,970,665

Construction

959,280

922,112

757,984

37,168

201,296

Leasing

1,731,809

1,698,114

1,585,739

33,695

146,070

Mortgage

7,695,917

7,585,111

7,397,471

110,806

298,446

Consumer

Credit cards

1,135,747

1,077,428

1,041,870

58,319

93,877

Home equity lines of credit

65,953

67,499

71,916

(1,546

)

(5,963

)

Personal

1,945,247

1,952,168

1,823,579

(6,921

)

121,668

Auto

3,660,780

3,633,196

3,512,530

27,584

148,250

Other

160,441

158,135

147,548

2,306

12,893

Total Consumer

6,968,168

6,888,426

6,597,443

79,742

370,725

Total loans held-in-portfolio

35,064,971

34,029,313

32,077,769

1,035,658

2,987,202

Loans held-for-sale:

Mortgage

4,301

5,239

5,381

(938

)

(1,080

)

Total loans held-for-sale

4,301

5,239

5,381

(938

)

(1,080

)

Total loans

35,069,272

34,034,552

32,083,150

1,034,720

2,986,122

Deposits - Ending Balances

Variance

(In thousands)

31-Dec-23

30-Sep-23

31-Dec-22

Q4 2023 vs. Q3 2023

Q4 2023 vs.Q4 2022

Demand deposits [1]

27,579,054

27,942,782

26,382,605

(363,728

)

1,196,449

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

26,817,844

26,452,382

27,265,156

365,462

(447,312

)

Savings, NOW and money market deposits (brokered)

719,453

734,479

798,064

(15,026

)

(78,611

)

Time deposits (non-brokered)

7,546,138

7,264,156

6,442,886

281,982

1,103,252

Time deposits (brokered CDs)

955,754

943,801

338,516

11,953

617,238

Total deposits

63,618,243

63,337,600

61,227,227

280,643

2,391,016

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

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table I - Loan Delinquency -BPPR Operations

(Unaudited)

31-Dec-23

BPPR

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

524

1,991

2,515

289,427

291,942

1,991

Commercial real estate:

Non-owner occupied

5,510

8,745

14,332

2,990,922

3,005,254

8,745

Owner occupied

2,726

249

29,430

32,405

1,365,978

1,398,383

29,430

Commercial and industrial

6,998

3,352

36,210

46,560

4,749,666

4,796,226

32,826

3,384

Construction

6,378

163,479

169,857

6,378

Mortgage

260,897

114,282

416,528

791,707

5,600,117

6,391,824

175,106

241,422

Leasing

20,140

6,719

8,632

35,491

1,696,318

1,731,809

8,632

Consumer:

Credit cards

13,243

9,912

23,281

46,436

1,089,292

1,135,728

23,281

Home equity lines of credit

230

256

2,392

2,648

Personal

19,065

14,611

19,031

52,707

1,723,603

1,776,310

19,031

Auto

100,061

27,443

45,615

173,119

3,487,661

3,660,780

45,615

Other

1,641

204

1,213

3,058

147,104

150,162

964

249

Total

431,035

176,849

597,080

1,204,964

23,305,959

24,510,923

328,718

268,362

30-Sep-23

BPPR

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

4,407

176

184

4,767

290,047

294,814

184

Commercial real estate:

Non-owner occupied

1,274

15,330

16,604

2,932,277

2,948,881

15,330

Owner occupied

817

827

35,089

36,733

1,370,820

1,407,553

35,089

Commercial and industrial

4,022

1,728

24,733

30,483

4,299,335

4,329,818

21,624

3,109

Construction

6,578

163,929

170,507

6,578

Mortgage

241,962

100,679

430,430

773,071

5,516,197

6,289,268

187,443

242,987

Leasing

17,915

4,574

6,842

29,331

1,668,783

1,698,114

6,842

Consumer:

Credit cards

11,218

8,133

17,719

37,070

1,040,341

1,077,411

17,719

Home equity lines of credit

2,448

2,474

Personal

19,586

12,476

18,582

50,644

1,712,358

1,763,002

18,582

Auto

89,453

23,019

40,268

152,740

3,480,456

3,633,196

40,268

Other

567

388

2,152

3,107

144,425

147,532

1,885

267

Total

391,247

152,000

597,907

1,141,154

22,621,416

23,762,570

333,825

264,082

Variance

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

(3,883

)

(176

)

1,807

(2,252

)

(620

)

(2,872

)

1,807

Commercial real estate:

Non-owner occupied

4,236

(6,585

)

(2,272

)

58,645

56,373

(6,585

)

Owner occupied

1,909

(578

)

(5,659

)

(4,328

)

(4,842

)

(9,170

)

(5,659

)

Commercial and industrial

2,976

1,624

11,477

16,077

450,331

466,408

11,202

275

Construction

(200

)

(200

)

(450

)

(650

)

(200

)

Mortgage

18,935

13,603

(13,902

)

18,636

83,920

102,556

(12,337

)

(1,565

)

Leasing

2,225

2,145

1,790

6,160

27,535

33,695

1,790

Consumer:

Credit cards

2,025

1,779

5,562

9,366

48,951

58,317

5,562

Home equity lines of credit

204

230

(56

)

174

Personal

(521

)

2,135

449

2,063

11,245

13,308

449

Auto

10,608

4,424

5,347

20,379

7,205

27,584

5,347

Other

1,074

(184

)

(939

)

(49

)

2,679

2,630

(921

)

(18

)

Total

39,788

24,849

(827

)

63,810

684,543

748,353

(5,107

)

4,280

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

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

(Unaudited)

31-Dec-23

Popular U.S.

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

9,141

2,001

11,142

2,112,536

2,123,678

Commercial real estate:

Non-owner occupied

566

1,036

1,117

2,719

2,079,448

2,082,167

1,117

Owner occupied

30,560

6,274

36,834

1,645,418

1,682,252

6,274

Commercial and industrial

7,815

697

3,881

12,393

2,317,502

2,329,895

3,772

109

Construction

789,423

Mortgage

48,818

7,821

11,191

67,830

1,236,263

1,304,093

11,191

Consumer:

Credit cards

Home equity lines of credit

1,472

3,733

5,209

58,096

63,305

3,733

Personal

2,222

1,948

2,805

6,975

161,962

168,937

2,805

Other

10,274

10,279

Total

100,598

13,507

29,002

143,107

10,410,941

10,554,048

28,893

109

30-Sep-23

Popular U.S.

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

1,332

404

1,736

2,031,883

2,033,619

404

Commercial real estate:

Non-owner occupied

2,628

734

3,362

2,082,887

2,086,249

734

Owner occupied

1,110

923

3,877

5,910

1,631,442

1,637,352

3,877

Commercial and industrial

3,000

464

3,709

7,173

2,190,091

2,197,264

3,579

130

Construction

751,605

Mortgage

946

22,313

11,980

35,239

1,260,604

1,295,843

11,980

Consumer:

Credit cards

Home equity lines of credit

1,045

335

4,085

5,465

59,560

65,025

4,085

Personal

2,581

1,716

2,637

6,934

182,232

189,166

2,637

Other

113

402

515

10,088

10,603

402

Total

12,755

25,751

27,828

66,334

10,200,409

10,266,743

27,698

130

Variance

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

7,809

2,001

(404

)

9,406

80,653

90,059

(404

)

Commercial real estate:

Non-owner occupied

(2,062

)

1,036

383

(643

)

(3,439

)

(4,082

)

383

Owner occupied

29,450

(923

)

2,397

30,924

13,976

44,900

2,397

Commercial and industrial

4,815

233

172

5,220

127,411

132,631

193

(21

)

Construction

37,818

Mortgage

47,872

(14,492

)

(789

)

32,591

(24,341

)

8,250

(789

)

Consumer:

Credit cards

Home equity lines of credit

427

(331

)

(352

)

(256

)

(1,464

)

(1,720

)

(352

)

Personal

(359

)

232

168

(20,270

)

(20,229

)

168

Other

(109

)

(401

)

(510

)

186

(324

)

(401

)

Total

87,843

(12,244

)

1,174

76,773

210,532

287,305

1,195

(21

)

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table K - Loan Delinquency - Consolidated

(Unaudited)

31-Dec-23

Popular, Inc.

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

9,665

2,001

1,991

13,657

2,401,963

2,415,620

1,991

Commercial real estate:

Non-owner occupied

6,076

1,113

9,862

17,051

5,070,370

5,087,421

9,862

Owner occupied

33,286

249

35,704

69,239

3,011,396

3,080,635

35,704

Commercial and industrial

14,813

4,049

40,091

58,953

7,067,168

7,126,121

36,598

3,493

Construction

6,378

952,902

959,280

6,378

Mortgage

309,715

122,103

427,719

859,537

6,836,380

7,695,917

186,297

241,422

Leasing

20,140

6,719

8,632

35,491

1,696,318

1,731,809

8,632

Consumer:

Credit cards

13,243

9,912

23,281

46,436

1,089,311

1,135,747

23,281

Home equity lines of credit

1,702

3,759

5,465

60,488

65,953

3,733

Personal

21,287

16,559

21,836

59,682

1,885,565

1,945,247

21,836

Auto

100,061

27,443

45,615

173,119

3,487,661

3,660,780

45,615

Other

1,645

204

1,214

3,063

157,378

160,441

965

249

Total

531,633

190,356

626,082

1,348,071

33,716,900

35,064,971

357,611

268,471

30-Sep-23

Popular, Inc.

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

5,739

176

588

6,503

2,321,930

2,328,433

588

Commercial real estate:

Non-owner occupied

3,902

16,064

19,966

5,015,164

5,035,130

16,064

Owner occupied

1,927

1,750

38,966

42,643

3,002,262

3,044,905

38,966

Commercial and industrial

7,022

2,192

28,442

37,656

6,489,426

6,527,082

25,203

3,239

Construction

6,578

915,534

922,112

6,578

Mortgage

242,908

122,992

442,410

808,310

6,776,801

7,585,111

199,423

242,987

Leasing

17,915

4,574

6,842

29,331

1,668,783

1,698,114

6,842

Consumer:

Credit cards

11,218

8,133

17,719

37,070

1,040,358

1,077,428

17,719

Home equity lines of credit

1,071

335

4,085

5,491

62,008

67,499

4,085

Personal

22,167

14,192

21,219

57,578

1,894,590

1,952,168

21,219

Auto

89,453

23,019

40,268

152,740

3,480,456

3,633,196

40,268

Other

680

388

2,554

3,622

154,513

158,135

2,287

267

Total

404,002

177,751

625,735

1,207,488

32,821,825

34,029,313

361,523

264,212

Variance

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

3,926

1,825

1,403

7,154

80,033

87,187

1,403

Commercial real estate:

Non-owner occupied

2,174

1,113

(6,202

)

(2,915

)

55,206

52,291

(6,202

)

Owner occupied

31,359

(1,501

)

(3,262

)

26,596

9,134

35,730

(3,262

)

Commercial and industrial

7,791

1,857

11,649

21,297

577,742

599,039

11,395

254

Construction

(200

)

(200

)

37,368

37,168

(200

)

Mortgage

66,807

(889

)

(14,691

)

51,227

59,579

110,806

(13,126

)

(1,565

)

Leasing

2,225

2,145

1,790

6,160

27,535

33,695

1,790

Consumer:

Credit cards

2,025

1,779

5,562

9,366

48,953

58,319

5,562

Home equity lines of credit

631

(331

)

(326

)

(26

)

(1,520

)

(1,546

)

(352

)

Personal

(880

)

2,367

617

2,104

(9,025

)

(6,921

)

617

Auto

10,608

4,424

5,347

20,379

7,205

27,584

5,347

Other

965

(184

)

(1,340

)

(559

)

2,865

2,306

(1,322

)

(18

)

Total

127,631

12,605

347

140,583

895,075

1,035,658

(3,912

)

4,259

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table L - Non-Performing Assets

(Unaudited)

Variance

(In thousands)

31-Dec-23

As a % of loans HIP by category

30-Sep-23

As a % of loans HIP by category

31-Dec-22

As a % of loans HIP by category

Q4 2023 vs. Q3 2023

Q4 2023 vs. Q4 2022

Non-accrual loans:

Commercial

Commercial multi-family

1,991

0.1

588

242

1,403

1,749

Commercial real estate non-owner occupied

9,862

0.2

16,064

0.3

25,116

0.6

(6,202

)

(15,254

)

Commercial real estate owner occupied

35,704

1.2

38,966

1.3

29,085

0.9

(3,262

)

6,619

Commercial and industrial

36,598

0.5

25,203

0.4

38,596

0.7

11,395

(1,998

)

Total Commercial

84,155

0.5

80,821

0.5

93,039

0.6

3,334

(8,884

)

Construction

6,378

0.7

6,578

0.7

(200

)

6,378

Leasing

8,632

0.5

6,842

0.4

5,941

0.4

1,790

2,691

Mortgage

186,297

2.4

199,423

2.6

262,879

3.6

(13,126

)

(76,582

)

Consumer

Home equity lines of credit

3,733

5.7

4,085

6.1

4,110

5.7

(352

)

(377

)

Personal

21,836

1.1

21,219

1.1

20,040

1.1

617

1,796

Auto

45,615

1.2

40,268

1.1

40,978

1.2

5,347

4,637

Other Consumer

965

0.6

2,287

1.4

12,454

8.4

(1,322

)

(11,489

)

Total Consumer

72,149

1.0

67,859

1.0

77,582

1.2

4,290

(5,433

)

Total non-performing loans held-in-portfolio

357,611

1.0

361,523

1.1

439,441

1.4

(3,912

)

(81,830

)

Other real estate owned (“OREO”)

80,416

82,322

89,126

(1,906

)

(8,710

)

Total non-performing assets [1]

438,027

443,845

528,567

(5,818

)

(90,540

)

Accruing loans past due 90 days or more [2]

268,471

264,212

351,614

4,259

(83,143

)

Ratios:

Non-performing assets to total assets

0.62

0.64

0.78

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

1.02

1.06

1.37

Allowance for credit losses to loans held-in-portfolio

2.08

2.09

2.25

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

203.95

196.69

163.91

[1] There were no non-performing loans held-for-sale as of December 31, 2023, September 30, 2023 and December 31, 2022.

[2] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. The balance of these loans includes $11 million at December 31, 2023, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below ( September 30, 2023 - $8 million; December 31, 2022 - $14 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 $106 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2023 (September 30, 2023 - $115 million; December 31, 2022 - $190 million). Furthermore, the Corporation has approximately $38 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (September 30, 2023- $39 million; December 31, 2022 - $42 million).

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table M - Activity in Non-Performing Loans

(Unaudited)

Commercial loans held-in-portfolio:

Quarter ended

31-Dec-23

30-Sep-23

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

72,227

8,594

80,821

88,716

11,610

100,326

Plus:

New non-performing loans

22,009

3,859

25,868

2,736

1,324

4,060

Advances on existing non-performing loans

515

Less:

Non-performing loans transferred to OREO

(5,484

)

(5,484

)

(138

)

(138

)

Non-performing loans charged-off

(5,427

)

(5,427

)

(969

)

(2,446

)

(3,415

)

Loans returned to accrual status / loan collections

(10,333

)

(1,805

)

(12,138

)

(18,118

)

(1,901

)

(20,019

)

Ending balance NPLs

72,992

11,163

84,155

72,227

8,594

80,821

Construction loans held-in-portfolio:

Quarter ended

31-Dec-23

30-Sep-23

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

6,578

9,284

Less:

Non-performing loans charged-off

(2,537

)

(2,537

)

Loans returned to accrual status / loan collections

(200

)

(200

)

(169

)

(169

)

Ending balance NPLs

6,378

6,578

Mortgage loans held-in-portfolio:

Quarter ended

31-Dec-23

30-Sep-23

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

187,443

11,980

199,423

194,219

14,577

208,796

Plus:

New non-performing loans

30,406

4,179

34,585

34,657

4,503

39,160

Advances on existing non-performing loans

Less:

Non-performing loans transferred to OREO

(5,423

)

(5,423

)

(5,519

)

(5,519

)

Non-performing loans charged-off

153

152

Loans returned to accrual status / loan collections

(37,473

)

(4,979

)

(42,452

)

(36,066

)

(7,105

)

(43,171

)

Ending balance NPLs

175,106

11,191

186,297

187,443

11,980

199,423

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

Quarter ended

31-Dec-23

30-Sep-23

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

266,248

20,574

286,822

292,219

26,187

318,406

Plus:

New non-performing loans

52,415

8,038

60,453

37,393

5,827

43,220

Advances on existing non-performing loans

526

Less:

Non-performing loans transferred to OREO

(10,907

)

(10,907

)

(5,657

)

(5,657

)

Non-performing loans charged-off

(5,274

)

(5,274

)

(3,354

)

(2,446

)

(5,800

)

Loans returned to accrual status / loan collections

(48,006

)

(6,784

)

(54,790

)

(54,353

)

(9,006

)

(63,359

)

Ending balance NPLs

254,476

22,354

276,830

266,248

20,574

286,822

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

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

(Unaudited)

Quarters ended

(In thousands)

31-Dec-23

30-Sep-23

31-Dec-22

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

711,068

700,200

703,096

Provision for credit losses (benefit)

75,218

43,514

48,332

Initial allowance for credit losses - PCD Loans

786,288

743,723

751,502

Net loans charge-off (recovered)- BPPR

Commercial:

Commercial multi-family

Commercial real estate non-owner occupied

(426

)

(168

)

(305

)

Commercial real estate owner occupied

2,770

166

(462

)

Commercial and industrial

1,535

(10,547

)

(1,333

)

Total Commercial

3,879

(10,549

)

(2,100

)

Construction

)

2,611

Leasing

3,677

1,442

2,221

Mortgage

(2,720

)

(3,800

)

(6,135

)

Consumer:

Credit cards

10,811

8,631

5,433

Home equity lines of credit

(64

)

(30

)

(72

)

Personal

20,405

17,303

9,268

Auto

15,582

9,691

10,978

Other Consumer

344

301

253

Total Consumer

47,078

35,896

25,860

Total net charged-off (recovered) BPPR

51,913

25,600

19,846

Net loans charge-off (recovered) - Popular U.S.

Commercial:

Commercial multi-family

)

Commercial real estate non-owner occupied

128

(66

)

8,668

Commercial real estate owner occupied

(22

)

1,202

(111

)

Commercial and industrial

(159

)

899

(162

)

Total Commercial

(54

)

2,034

8,394

Mortgage

(25

)

(62

)

(32

)

Consumer:

Credit cards

)

Home equity lines of credit

(214

)

(156

)

Personal

5,302

5,032

3,142

Other Consumer

Total Consumer

5,113

5,083

2,992

Total net charged-off (recovered) Popular U.S.

5,034

7,055

11,354

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

56,947

32,655

31,200

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

729,341

711,068

720,302

Balance at beginning of period - unfunded commitments

13,284

11,593

7,307

Provision for credit losses (benefit)

3,722

1,691

1,498

Balance at end of period - unfunded commitments [1]

17,006

13,284

8,805

POPULAR, INC.

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

0.66

0.39

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

132.08

133.25

154.91

BPPR

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

0.86

0.44

0.35

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

129.51

211.00

223.64

Popular U.S.

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

0.19

0.28

0.49

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

158.58

(148.87

34.78

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

Year ended

(In thousands)

31-Dec-23

31-Dec-22

Total

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

720,302

695,366

Impact of adopting ASU-2022-02

(45,583

)

Provision for credit losses (benefit)

201,539

83,307

Initial allowance for credit losses - PCD Loans

915

876,347

779,588

Net loans charge-off (recovered)- BPPR

Commercial:

Commercial multi-family

)

Commercial real estate non-owner occupied

(299

)

(1,520

)

Commercial real estate owner occupied

1,100

(6,622

)

Commercial and industrial

(10,001

)

(2,750

)

Total Commercial

(9,201

)

(10,892

)

Construction

2,610

(811

)

Leasing

7,039

3,792

Mortgage

(13,858

)

(15,743

)

Consumer

Credit Cards

32,231

17,411

Home equity lines of credit

(155

)

(278

)

Personal

62,394

28,932

Auto

34,968

25,606

Other Consumer

11,636

1,059

Total Consumer

141,074

72,730

Total net charged-off (recovered) BPPR

127,664

49,076

Net loans charge-off (recovered) - Popular U.S.

Commercial

Commercial multi-family

)

(21

)

Commercial real estate non-owner occupied

(1,856

)

8,649

Commercial real estate owner occupied

1,312

(359

)

Commercial and industrial

2,005

(876

)

Total Commercial

1,456

7,393

Construction

(1,132

)

Mortgage

(210

)

(12

)

Consumer

Credit Cards

(13

)

Home equity lines of credit

(494

)

(2,444

)

Personal

17,829

6,262

Other Consumer

159

156

Total Consumer

17,495

3,961

Total net charged-off (recovered) Popular U.S.

18,741

10,210

Total loans charged-off - Popular, Inc.

146,405

59,286

Net write- downs [2]

601

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

729,341

720,302

Balance at beginning of period - unfunded commitments

8,805

7,897

Provision for credit losses (benefit)

8,201

908

Balance at end of period - unfunded commitments [1]

17,006

8,805

POPULAR, INC.

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

0.44

0.20

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

137.66

140.52

BPPR

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

0.55

0.23

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

152.61

141.71

Popular U.S.

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

0.19

0.12

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

35.78

134.80

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

[2] Net write-downs are related to credit cards loans reclassified to held-for-sale during the quarter ended June 30, 2023.

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table O - Allowance for Credit Losses "ACL"- Loan Portfolios - Consolidated

(Unaudited)

31-Dec-23

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

13,740

2,415,620

0.57

Commercial real estate - non-owner occupied

65,453

5,087,421

1.29

Commercial real estate - owner occupied

56,864

3,080,635

1.85

Commercial and industrial

122,356

7,126,121

1.72

Total commercial

258,413

17,709,797

1.46

Construction

12,686

959,280

1.32

Mortgage

83,214

7,695,917

1.08

Leasing

9,708

1,731,809

0.56

Consumer:

Credit cards

80,487

1,135,747

7.09

Home equity lines of credit

1,978

65,953

3.00

Personal

117,790

1,945,247

6.06

Auto

157,931

3,660,780

4.31

Other consumer

7,134

160,441

4.45

Total consumer

365,320

6,968,168

5.24

Total

729,341

35,064,971

2.08

30-Sep-23

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

15,223

2,328,433

0.65

Commercial real estate - non-owner occupied

67,149

5,035,130

1.33

Commercial real estate - owner occupied

48,109

3,044,905

1.58

Commercial and industrial

103,585

6,527,082

1.59

Total commercial

234,066

16,935,550

1.38

Construction

10,971

922,112

1.19

Mortgage

91,904

7,585,111

1.21

Leasing

10,198

1,698,114

0.60

Consumer:

Credit cards

72,550

1,077,428

6.73

Home equity lines of credit

2,387

67,499

3.54

Personal

126,116

1,952,168

6.46

Auto

155,436

3,633,196

4.28

Other consumer

7,440

158,135

4.70

Total consumer

363,929

6,888,426

5.28

Total

711,068

34,029,313

2.09

Variance

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

(1,483

)

87,187

(0.08

Commercial real estate - non-owner occupied

(1,696

)

52,291

(0.04

Commercial real estate - owner occupied

8,755

35,730

0.27

Commercial and industrial

18,771

599,039

0.13

Total commercial

24,347

774,247

0.08

Construction

1,715

37,168

0.13

Mortgage

(8,690

)

110,806

(0.13

Leasing

(490

)

33,695

(0.04

Consumer:

Credit cards

7,937

58,319

0.36

Home equity lines of credit

(409

)

(1,546

)

(0.54

Personal

(8,326

)

(6,921

)

(0.40

Auto

2,495

27,584

0.03

Other consumer

(306

)

2,306

(0.25

Total consumer

1,391

79,742

(0.04

Total

18,273

1,035,658

(0.01

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table P - Allowance for Credit Losses "ACL"- Loan Portfolios - BPPR Operations

(Unaudited)

31-Dec-23

BPPR

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

3,614

291,942

1.24

Commercial real estate - non-owner occupied

53,754

3,005,254

1.79

Commercial real estate - owner occupied

40,637

1,398,383

2.91

Commercial and industrial

107,577

4,796,226

2.24

Total commercial

205,582

9,491,805

2.17

Construction

5,294

169,857

3.12

Mortgage

72,440

6,391,824

1.13

Leasing

9,708

1,731,809

0.56

Consumer:

Credit cards

80,487

1,135,728

7.09

Home equity lines of credit

103

2,648

3.89

Personal

101,181

1,776,310

5.70

Auto

157,931

3,660,780

4.31

Other consumer

7,132

150,162

4.75

Total consumer

346,834

6,725,628

5.16

Total

639,858

24,510,923

2.61

30-Sep-23

BPPR

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

3,481

294,814

1.18

Commercial real estate - non-owner occupied

53,208

2,948,881

1.80

Commercial real estate - owner occupied

41,493

1,407,553

2.95

Commercial and industrial

87,579

4,329,818

2.02

Total commercial

185,761

8,981,066

2.07

Construction

5,457

170,507

3.20

Mortgage

79,900

6,289,268

1.27

Leasing

10,198

1,698,114

0.60

Consumer:

Credit cards

72,550

1,077,411

6.73

Home equity lines of credit

2,474

3.52

Personal

107,707

1,763,002

6.11

Auto

155,436

3,633,196

4.28

Other consumer

7,438

147,532

5.04

Total consumer

343,218

6,623,615

5.18

Total

624,534

23,762,570

2.63

Variance

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

133

(2,872

)

0.06

Commercial real estate - non-owner occupied

546

56,373

(0.01

Commercial real estate - owner occupied

(856

)

(9,170

)

(0.04

Commercial and industrial

19,998

466,408

0.22

Total commercial

19,821

510,739

0.10

Construction

(163

)

(650

)

(0.08

Mortgage

(7,460

)

102,556

(0.14

Leasing

(490

)

33,695

(0.04

Consumer:

Credit cards

7,937

58,317

0.36

Home equity lines of credit

174

0.37

Personal

(6,526

)

13,308

(0.41

Auto

2,495

27,584

0.03

Other consumer

(306

)

2,630

(0.29

Total consumer

3,616

102,013

(0.02

Total

15,324

748,353

(0.02

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table Q - Allowance for Credit Losses "ACL"- Loan Portfolios - POPULAR U.S. Operations

(Unaudited)

31-Dec-23

Popular U.S.

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

10,126

2,123,678

0.48

Commercial real estate - non-owner occupied

11,699

2,082,167

0.56

Commercial real estate - owner occupied

16,227

1,682,252

0.96

Commercial and industrial

14,779

2,329,895

0.63

Total commercial

52,831

8,217,992

0.64

Construction

7,392

789,423

0.94

Mortgage

10,774

1,304,093

0.83

Consumer:

Credit cards

Home equity lines of credit

1,875

63,305

2.96

Personal

16,609

168,937

9.83

Other consumer

10,279

0.02

Total consumer

18,486

242,540

7.62

Total

89,483

10,554,048

0.85

30-Sep-23

Popular U.S.

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

11,742

2,033,619

0.58

Commercial real estate - non-owner occupied

13,941

2,086,249

0.67

Commercial real estate - owner occupied

6,616

1,637,352

0.40

Commercial and industrial

16,006

2,197,264

0.73

Total commercial

48,305

7,954,484

0.61

Construction

5,514

751,605

0.73

Mortgage

12,004

1,295,843

0.93

Consumer:

Credit cards

Home equity lines of credit

2,300

65,025

3.54

Personal

18,409

189,166

9.73

Other consumer

10,603

0.02

Total consumer

20,711

264,811

7.82

Total

86,534

10,266,743

0.84

Variance

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

(1,616

)

90,059

(0.10

Commercial real estate - non-owner occupied

(2,242

)

(4,082

)

(0.11

Commercial real estate - owner occupied

9,611

44,900

0.56

Commercial and industrial

(1,227

)

132,631

(0.10

Total commercial

4,526

263,508

0.03

Construction

1,878

37,818

0.21

Mortgage

(1,230

)

8,250

(0.10

Consumer:

Credit cards

Home equity lines of credit

(425

)

(1,720

)

(0.58

Personal

(1,800

)

(20,229

)

0.10

Other consumer

(324

)

Total consumer

(2,225

)

(22,271

)

(0.20

Total

2,949

287,305

0.01

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table R - Reconciliation to GAAP Financial Measures

(Unaudited)

(In thousands, except share or per share information)

31-Dec-23

30-Sep-23

31-Dec-22

Total stockholders’ equity

5,146,953

4,457,608

4,093,425

Less: Preferred stock

(22,143

)

(22,143

)

(22,143

)

Less: Goodwill

(804,428

)

(804,428

)

(827,428

)

Less: Other intangibles

(9,764

)

(10,559

)

(12,944

)

Total tangible common equity

4,310,618

3,620,478

3,230,910

Total assets

70,758,155

69,736,936

67,637,917

Less: Goodwill

(804,428

)

(804,428

)

(827,428

)

Less: Other intangibles

(9,764

)

(10,559

)

(12,944

)

Total tangible assets

69,943,963

68,921,949

66,797,545

Tangible common equity to tangible assets

6.16

5.25

4.84

Common shares outstanding at end of period

72,153,621

72,127,595

71,853,720

Tangible book value per common share

59.74

50.20

44.97

Quarterly average

Total stockholders’ equity [1]

6,755,948

6,636,364

6,161,634

Less: Preferred Stock

(22,143

)

(22,143

)

(22,143

)

Less: Goodwill

(804,427

)

(827,177

)

(827,427

)

Less: Other intangibles

(10,286

)

(11,083

)

(13,440

)

Total tangible equity

5,919,092

5,775,961

5,298,624

Return on average tangible common equity

6.32

9.36

19.23

Year-to-date average

Total stockholders’ equity [1]

6,600,603

6,009,225

Less: Preferred Stock

(22,143

)

(22,143

)

Less: Goodwill

(821,567

)

(757,133

)

Less: Other intangibles

(11,473

)

(17,113

)

Total tangible equity

5,745,420

5,212,836

Return on average tangible common equity

9.40

21.13

View source version on businesswire.com: https://www.businesswire.com/news/home/20240125297208/en/

Popular, Inc.

Investor Relations: Paul J. Cardillo, 212-417-6721 Senior Vice President and Investor Relations Officer pcardillo@popular.com

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

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