Popular, Inc. Announces Second Quarter 2021 Financial Results

Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $218.1 million for the quarter ended June 30, 2021, compared to net income of $262.6 million for the quarter ended March 31, 2021.

Ignacio Alvarez, President and Chief Executive Officer, said: “We had another strong quarter with net income of $218 million. These results reflect improving macro-economic conditions and credit quality as well as our diversified sources of revenue. Consumer spending in P.R. has increased and it is reflected in higher revenues from credit and debit card spending. Deposit balances grew by $5.9 billion and excluding forgiveness of PPP loans, we saw a small increase in our period end loans, led by strong auto loan originations in P.R. During the quarter we also continued to return capital to our shareholders, increased our common stock dividend, while maintaining a CET1 ratio of 16.6% at quarter end. While we are extremely pleased with the results for the first half of the year, we remain attentive on how the evolving health situation may impact the economic recovery.

We also continued to support the communities we serve. During the quarter we released our annual Corporate Sustainability Report, which summarizes our program, takes into account widely accepted sustainability reporting standards and highlights our commitment, progress and achievements in our efforts to operate as a responsible, ethical and sustainable company.”

Significant Events

Financial Highlights

For the second quarter of 2021, the Corporation recorded net income of $218.1 million, compared to a net income of $262.6 million for the previous quarter. The second quarter’s results include a release of the allowance for credit losses of $17.0 million driven by improving credit quality and the improved macroeconomic outlook. Net Interest income was $487.8 million, an increase of $8.7 million compared to the previous quarter, mainly due to additional funds invested from the increase in deposits. The net interest margin decreased 16 basis points to 2.91%. Total assets grew by $5.8 billion from the previous quarter, reflecting an increase in deposits across various sectors, principally from the Puerto Rico public sector.

Capital Actions

On May 3, 2021, the Corporation announced that it had entered into an accelerated share repurchase agreement (the “ASR Agreement”) to repurchase an aggregate of $350 million of Popular’s common stock. Under the terms of the ASR Agreement, on May 4, 2021 the Corporation made an initial payment of $350 million and received an initial delivery of 3,785,831 shares of Popular’s Common Stock (the “Initial Shares”). The transaction was accounted for as a treasury stock transaction. Furthermore, as a result of the receipt of the Initial Shares, the Corporation recognized in shareholders’ equity approximately $280 million in treasury stock and $70 million as a reduction in capital surplus. Upon the final settlement of the ASR Agreement, the Corporation expects to further adjust its treasury stock and capital surplus accounts to reflect the final delivery or receipt of cash or shares, which will depend on the volume-weighted average price of the Corporation’s common stock during the term of the ASR Agreement, less a discount. The final settlement of the ASR Agreement is expected to occur no later than the third quarter of 2021.

On May 6, 2021, the Corporation’s Board of Directors approved a quarterly cash dividend of $0.45 per share, an increase from the previous $0.40 per share quarterly dividend, on its outstanding common stock. The dividend was paid on July 1, 2021 to shareholders of record at the close of business on May 26, 2021.

Earnings Highlights
(Unaudited)		Quarters ended								Six months ended
(Dollars in thousands, except per share information)		30-Jun-21		31-Mar-21			30-Jun-20			30-Jun-21		30-Jun-20
Net interest income		$487,802		$479,112			$450,881			$966,914		$923,976
Provision for credit losses (benefit)		(17,015)		(82,226	)		62,449			(99,241)		252,180
Net interest income after provision for credit losses (benefit)		504,817		561,338			388,432			1,066,155		671,796
Other non-interest income		154,540		153,653			112,055			308,193		238,698
Operating expenses		368,185		375,528			348,231			743,713		720,839
Income before income tax		291,172		339,463			152,256			630,635		189,655
Income tax expense		73,093		76,831			24,628			149,924		27,725
Net income		$218,079		$262,632			$127,628			$480,711		$161,930
Net income applicable to common stock		$217,726		$262,279			$127,275			$480,005		$160,877
Net income per common share-basic		$2.67		$3.13			$1.49			$5.80		$1.83
Net income per common share-diluted		$2.66		$3.12			$1.49			$5.79		$1.83

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

Net interest income, on a taxable equivalent basis, is presented with its different components in Table D and E for the quarter and six months ended June 30, 2021 and comparable periods. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.

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

Net interest income for the quarter ended June 30, 2021 was $487.8 million compared to $479.1 million in the previous quarter, an increase of $8.7 million. The total net impact on net interest income of one more day in the quarter when compared to the first quarter of 2021 is estimated at $3.7 million. Net interest income, on a taxable equivalent basis, for the second quarter of 2021 was $541.2 million, an increase of $11.4 million when compared to $529.8 million in the first quarter of 2021. On a taxable equivalent basis, the total net impact on net interest income of one more day in the quarter when compared to the first quarter of 2021 is estimated at $4.0 million.

Net interest margin decreased 16 basis points to 2.91% compared to 3.07% in the previous quarter. The decrease in the net interest margin is due to a higher proportion of money market and investment securities, which carry a low yield, resulting from a higher volume of deposits in the quarter, lower interest and fees related to loans issued under the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”), partially offset by higher discount amortization on purchased credit deteriorated (“PCD”) loans repaid during the quarter and a lower cost of deposits. On a taxable equivalent basis, net interest margin for the second quarter of 2021 was 3.22 % compared to 3.39% in the first quarter of 2021, a decrease of 17 basis points. The main variances in net interest income on a taxable equivalent basis were:

• Higher interest income from money market investments, trading and investment securities by $9.7 million due to higher volume by $4.4 billion driven by deposit increases across all business lines, mainly government deposits. The taxable equivalent yield on these assets was 1.44%, compared to 1.52% the previous quarter; and
• Lower interest expense on deposits by $2.1 million resulting from lower deposit cost by 4 basis points driven by a higher volume of low yielding deposits, reduction of costs in several non-maturity deposit products and renewals of time deposits in a lower interest rate environment. These positive variances in deposit costs were partially offset by higher volume of interest-bearing deposits by $3.3 billion.

Partially offset by:

• Lower interest income from loans by $0.6 million mainly due to the following:
  • Lower interest income from commercial loans by $2.1 million resulting from lower SBA PPP interest income and fees of $9.2 million, partially offset by higher interest income by $7.2 million from PCD loans due to the accelerated discount amortization from several repaid loans and interest for one more day in the quarter of $1.9 million; and
  • Auto and lease financing increasing $124 million in average balances resulting an increase in interest income of $2.5 million.

The Corporation recognized interest income of $13.9 million related to loans issued under the SBA PPP program, compared to $23.1 million in the previous quarter. These loans carried a yield of approximately 4.45% in this quarter, including the amortization of fees received under the program, compared to 7.21% last quarter.

Net interest income for the Banco Popular de Puerto Rico (“BPPR”) segment amounted to $419.2 million for the quarter ended June 30, 2021, compared to $410.3 million in the previous quarter. Net interest margin for the second quarter of 2021 was 2.91%, a decrease of 19 basis points when compared to 3.10% for the previous quarter. As discussed above, the net interest margin was negatively impacted by a higher volume of money market and investment securities, lower fees from the cancellation and amortization of PPP loans of approximately $8.8 million, partially offset by a higher amortization of discount on PCD loans. The cost of interest-bearing deposits was 0.18%, down 3 basis points from the 0.21% reported in the previous quarter. Total cost of deposits for the quarter was 0.14%, compared to 0.16% reported in the first quarter of 2021.

Net interest income for Popular Bank (“PB”) was $78.7 million for the quarter ended June 30, 2021, compared to $79.2 million during the previous quarter. Net interest margin for the quarter was 3.33% lower than the 3.35% the previous quarter. The cost of interest-bearing deposits was 0.60%, compared to 0.66% in the previous quarter, decreasing for the seventh consecutive quarter. Total cost of deposits for the quarter, including demand deposits, was 0.47%, compared to 0.54% reported in the first quarter of 2021.

Non-interest income

Non-interest income increased by $0.9 million to $154.6 million for the quarter ended June 30, 2021, compared to $153.7 million for the quarter ended March 31, 2021. The variance in non-interest income was primarily driven by:

• higher other service fees by $5.8 million, principally at the BPPR segment, due to higher credit card fees by $4.0 million, mainly in interchange income resulting from higher transactional volumes;
• an increase in net gain on equity securities of $1.1 million mainly related to employee deferred compensation plans that have an offsetting expense on personnel related expenses;
• a favorable variance in adjustments to indemnity reserves on previously sold loans of $2.4 million mainly due to a reserve release related to loans previously sold with credit recourse; and
• higher other operating income by $1.1 million mainly due to higher net earnings from the combined portfolio of investments under the equity method by $2.4 million, partially offset by a lower gain on sale of daily auto rental units by $1.4 million;
  
  partially offset by:

• lower income from mortgage banking activities by $9.9 million mainly due to an unfavorable variance in fair value adjustments on mortgage servicing rights (“MSRs”) of $6.8 million due to the negative adjustment in the second quarter mainly related to a reduction in estimated cash flows related to portfolio amortization and higher losses on closed derivative positions by $3.4 million.

Refer to Table B for further details.

Operating expenses

Operating expenses for the second quarter of 2021 totaled $368.2 million, a decrease of $7.3 million from the first quarter of 2021. The variance in operating expenses was driven primarily by:

• lower personnel cost by $5.3 million due to $6.8 million of lower commission, incentives, and other bonuses, including lower performance shares and restricted stock expenses by $5.5 million, partially offset by higher pension, postretirement and medical insurance by $2.4 million due to higher premiums accruals;
• lower net occupancy expense by $1.5 million due lower rent and electricity expenses;
• lower credit and debit card processing, volume, interchange and other expenses by $1.5 million mainly due to transaction volume rebates and incentives; and
• lower other operating expenses by $4.1 million due to a release of $4.5 million of mortgage servicing reserves related to claims and foreclosed loans, higher gain on sale of assets by $1.8 million and lower subsequent write-down of foreclosed auto units by $1.2 million; partially offset by higher sundry losses by $3.0 million due to higher legal reserves.
  
  Partially offset by:

• higher business promotion expenses by $4.0 million due higher customer reward program expense in our credit card business by $2.5 million and higher advertising expense by $0.8 million.

Full-time equivalent employees were 8,439 as of June 30, 2021, compared to 8,469 as of March 31, 2021.

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

Income taxes

For the quarter ended June 30, 2021, the Corporation recorded an income tax expense of $73.1 million, compared to $76.8 million for the previous quarter. The decrease in income tax expense was mainly attributable to lower income before tax during the second quarter of 2021, partially offset by higher effective income tax rate in the P.R. operations and an increase in the blended state income tax rate for the U.S. operations during the second quarter of 2021. The effective tax rate (“ETR”) for the second quarter of 2021 was 25%, compared to 23% for the previous quarter. The ETR of the Corporation is impacted by the composition and source of its taxable income. The increase in the ETR rate for the second quarter of 2021 was primarily attributed to higher income at the Puerto Rico marginal tax rate.

Credit Quality

During the second quarter of 2021, the Corporation continued to exhibit favorable credit quality and low credit costs, outperforming pre-pandemic trends. These improvements have been aided by the significant government stimulus and the rebound in the economy. We will continue to closely monitor COVID-19 related risks and the effects of the receding stimulus on macroeconomic conditions and on borrower performance. However, management believes that the improvement over the last few years in the risk profile of the Corporation’s loan portfolios positions Popular to operate successfully under the current environment.

The following presents credit quality results for the second quarter of 2021:

• At June 30, 2021, total non-performing loans held-in-portfolio decreased by $13.0 million from March 31, 2021. BPPR’s NPLs decreased by $9.2 million, driven by lower mortgage NPLs by $20.1 million, due to lower inflows for the quarter and lower consumer NPLs by $5.1 million, mostly driven by auto loans. This decrease was in part offset by higher commercial NPLs by $16.8 million mostly due to a single $32.4 million inflow, partially offset by the resolution of an $8.8 million relationship. PB’s NPLs decreased by $3.8 million, mostly related to a construction loan transferred to loans-held-for-sale. At June 30, 2021, the ratio of NPLs to total loans held-in-portfolio remained flat at 2.4% when compared to the first quarter of 2021.
• Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $11.2 million quarter-over-quarter. In BPPR, total inflows increased by $17.0 million, mostly driven by higher commercial inflows of $31.9 million related to the abovementioned $32.4 million relationship. This increase was partly offset by lower mortgage inflows of $15.0 million, mostly due to improvements in early delinquencies. The NPL inflows at PB decreased by $5.8 million during the quarter.
• NCOs decreased by $22.3 million from the first quarter of 2021 to net recoveries of $1.3 million. BPPR ‘s NCOs decreased by $21.0 million, primarily driven by lower commercial, mortgage and construction NCOs by $8.4 million, $7.4 million and $6.4 million, respectively. The decrease reflected in the commercial NCOs was mostly due to recoveries of $7.9 million related to the resolution of the abovementioned non-performing relationship. During the second quarter of 2021, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was (0.02)%, compared to 0.29% in the first quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios.
• At June 30, 2021, the allowance for credit losses (“ACL”) decreased by $15.0 million from the first quarter of 2021 to $785.8 million. The ACL incorporated updated economic scenarios for the United States and Puerto Rico, which continued to show a positive outlook of the economy. In BPPR, the ACL decreased by $19.8 million, led by improvements in commercial and mortgage loans. The decrease in the allowance for commercial loans was mainly prompted by the release of a qualitative reserve for the hotel and hospitality portfolio due to the favorable economic environment and improvements in borrower performance. The reduction in the allowance for mortgage loans was led by a combination of improvements in economic scenarios and other assumptions used to estimate the reserve, as well as lower volumes. The allowance for the PB segment increased by $4.8 million. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.70% in the second quarter of 2021, compared to 2.75% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 114.7%, flat from the previous quarter.
• Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The ACL is estimated by weighting the outputs of optimistic, baseline and pessimistic scenarios. Among the three scenarios used to estimate the ACL, the baseline is assigned the highest probability, followed by the pessimistic scenario given the uncertainties in the economic outlook and downside risk. The current baseline forecast continues to show a favorable economic scenario. The 2021 forecasted GDP growth is now at 6.8% for U.S. and 3.8% for P.R., compared to 4.9% and 3.4%, respectively, in the previous 2021 forecast. The forecasted U.S. unemployment rate average for 2021 is now 5.43%. This is an improvement over the previous estimate of 6.09%. In the case of P.R., the forecasted unemployment rate average for 2021 of 8.43% was slightly higher than the previous forecast of 7.98%. However, unemployment rate levels in P.R. are expected to continue declining through 2022. The P.R. forecasted average unemployment rate for 2022 of 7.25%, is lower than the previous forecast of 7.52%.
• The provision for credit losses for the loans portfolios for the second quarter of 2021 reflected a benefit of $17.5 million, compared to a benefit of $75.8 million in the previous quarter. The provision for the BPPR segment was a benefit of $22.5 million, an unfavorable variance of $17.5 million compared to the previous quarter, while the provision expense for the PB segment was $5.0 million, an unfavorable variance of $40.8 million from the previous quarter. In the prior quarter, improvements in the economic forecasts prompted substantial reductions in reserves.
• The provision for unfunded commitments for the second quarter of 2021 reflected an expense of $0.4 million, compared to a benefit of $6.2 million during the previous quarter. The provision for credit losses in our investment portfolio was an expense of $0.1 million, compared to a benefit of $0.2 million in the first quarter of 2021. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations.

Non-Performing Assets
(Unaudited)
(In thousands)		30-Jun-21		31-Mar-21		30-Jun-20
Non-performing loans held-in-portfolio		$685,183		$698,142		$760,204
Non-performing loans held-for-sale		8,700		3,549		6,778
Other real estate owned (“OREO”)		73,272		72,060		113,940
Total non-performing assets		$767,155		$773,751		$880,922
Net (recoveries) charge-offs for the quarter		$(1,291)		$21,030		$64,953
Ratios:
Loans held-in-portfolio		$29,062,617		$29,131,628		$29,070,553
Non-performing loans held-in-portfolio to loans held-in-portfolio		2.36%		2.40%		2.62%
Allowance for credit losses to loans held-in-portfolio		2.70		2.75		3.16
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		114.68		114.70		120.81
Refer to Table K for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios
(Unaudited)		Quarters ended						Six months ended
(In thousands)		30-Jun-21		31-Mar-21		30-Jun-20		30-Jun-21		30-Jun-20
Provision for credit losses (benefit) - loan portfolios:
BPPR		$(22,488)		$(39,976)		$60,423		$(62,464)		$173,427
Popular U.S.		4,988		(35,803)		2,681		(30,815)		78,672
Total provision for credit losses (benefit) - loan portfolios		$(17,500)		$(75,779)		$63,104		$(93,279)		$252,099

Credit Quality by Segment
(Unaudited)
(In thousands)		Quarters ended
BPPR		30-Jun-21		31-Mar-21		30-Jun-20
Provision for credit losses (benefit) - loan portfolios		$(22,488)		$(39,976)		$60,423
Net charge-offs		(1,483)		19,474		62,143
Total non-performing loans held-in-portfolio		656,789		665,978		726,603
Allowance / loans held-in-portfolio		3.13%		3.20%		3.53%
		Quarters ended
Popular U.S.		30-Jun-21		31-Mar-21		30-Jun-20
Provision for credit losses (benefit) - loan portfolios		$4,988		$(35,803)		$2,681
Net charge-offs		192		1,556		2,810
Total non-performing loans held-in-portfolio		28,394		32,164		33,601
Allowance / loans held-in-portfolio		1.57%		1.53%		2.13%

Financial Condition Highlights
(Unaudited)
(In thousands)		30-Jun-21		31-Mar-21		30-Jun-20
Cash and money market investments		$18,333,650		$12,064,592		$10,060,358
Investment securities		22,647,401		23,076,488		21,058,918
Loans		29,062,617		29,131,628		29,070,553
Total assets		72,657,293		66,870,268		62,845,352
Deposits		64,641,776		58,742,801		53,844,300
Borrowings		1,267,545		1,311,064		1,339,339
Total liabilities		66,842,679		60,972,709		57,065,187
Stockholders’ equity		5,814,614		5,897,559		5,780,165

Total assets increased by $5.8 billion from the first quarter of 2021, driven by:

• an increase of $6.3 billion in cash and money market investments mainly due to an increase in deposits;
  
  partially offset by:

• a decrease of $0.4 billion in debt securities available-for-sale, mainly due to paydowns of agency mortgage-backed securities, partially offset by an increase of $0.1 billion in net unrealized gains in the portfolio and purchases of U.S. treasury securities.

Total liabilities increased by $5.9 billion from the first quarter of 2021, mainly due to an increase of $5.9 billion in deposits due to higher Puerto Rico public sector deposits by $4.3 billion and higher retail and commercial demand deposits by $1.5 billion at BPPR.

Stockholders’ equity decreased by approximately $82.9 million from the first quarter of 2021, principally due to the impact of the $350.0 million accelerated share repurchase transaction, offset by higher accumulated unrealized gains on debt securities available-for-sale by $73.0 million and net income for the quarter of $218.1 million, less declared dividends of $36.3 million on common stock and $0.4 million in dividends on preferred stock.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.55%, $71.82 and $63.24, respectively, at June 30, 2021, compared to 17.08%, $69.63 and $61.42 at March 31, 2021. Refer to Table A for capital ratios.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about Popular’s business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings (including as a result of any participation in and execution of government programs related to the COVID-19 pandemic), new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic (including the appearance of new strains of the virus), actions taken by governmental authorities in response thereto, and the direct and indirect impact of the pandemic on Popular, our customers, service providers and third parties. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions, and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, are generally intended to identify forward-looking statements.

More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Annual Report on Form 10-K for the year ended December 31, 2020, in our Form 10-Q for the quarter ended March 31, 2021 and in our Form 10-Q for the quarter ended June 30, 2021 to be filed with the Securities and Exchange Commission. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.

About Popular, Inc.

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

Conference Call

Popular will hold a conference call to discuss its financial results today Thursday, July 22, 2021 at 11:00 a.m. Eastern Time. The call will be open to the public and broadcasted live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through the dial-in telephone number 1-866-235-1201 or 1-412-902-4127. There is no charge to access the call.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Sunday, August 22, 2021. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10158030.

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

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table A - Selected Ratios and Other Information

Table B - Consolidated Statement of Operations

Table C - Consolidated Statement of Financial Condition

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

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

Table F - Mortgage Banking Activities and Other Service Fees

Table G - Loans and Deposits

Table H - Loan Delinquency - PUERTO RICO OPERATIONS

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

Table J - Loan Delinquency - CONSOLIDATED

Table K - Non-Performing Assets

Table L - Activity in Non-Performing Loans

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

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

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

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

Table Q - Reconciliation to GAAP Financial Measures

POPULAR, INC.
Financial Supplement to Second Quarter 2021 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
		Quarters ended						Six months ended
		30-Jun-21		31-Mar-21		30-Jun-20		30-Jun-21		30-Jun-20
Basic EPS		$2.67		$3.13		$1.49		$5.80		$1.83
Diluted EPS		$2.66		$3.12		$1.49		$5.79		$1.83
Average common shares outstanding		81,609,435		83,899,769		85,135,522		82,748,275		87,962,040
Average common shares outstanding - assuming dilution		81,772,789		84,051,935		85,161,661		82,888,378		88,039,712
Common shares outstanding at end of period		80,656,480		84,379,180		84,184,927		80,656,480		84,184,927
Market value per common share		$75.05		$70.32		$37.17		$75.05		$37.17
Market capitalization - (In millions)		$6,053		$5,934		$3,129		$6,053		$3,129
Return on average assets		1.24%		1.61%		0.87%		1.42%		0.59%
Return on average common equity		15.43%		18.76%		9.74%		17.08%		6.06%
Net interest margin (non-taxable equivalent basis)		2.91%		3.07%		3.25%		2.99%		3.58%
Net interest margin (taxable equivalent basis) -non-GAAP		3.22%		3.39%		3.56%		3.31%		3.93%
Common equity per share		$71.82		$69.63		$68.40		$71.82		$68.40
Tangible common book value per common share (non-GAAP) [1]		$63.24		$61.42		$60.13		$63.24		$60.13
Tangible common equity to tangible assets (non-GAAP) [1]		7.09%		7.83%		8.15%		7.09%		8.15%
Return on average tangible common equity [1]		17.58%		21.37%		11.23%		19.46%		6.97%
Tier 1 capital		16.62%		17.15%		15.78%		16.62%		15.78%
Total capital		19.09%		19.62%		18.29%		19.09%		18.29%
Tier 1 leverage		7.34%		8.06%		8.13%		7.34%		8.13%
Common Equity Tier 1 capital		16.55%		17.08%		15.71%		16.55%		15.71%
[1] Refer to Table Q for reconciliation to GAAP financial measures.

POPULAR, INC.
Financial Supplement to Second Quarter 2021 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
		Quarters ended				Variance		Quarter ended		Variance		Six months ended
						Q2 2021				Q2 2021
(In thousands, except per share information)		30-Jun-21		31-Mar-21		vs. Q1 2021		30-Jun-20		vs. Q2 2020		30-Jun-21		30-Jun-20
Interest income:
Loans		$433,781		$434,649		$(868)		$429,670		$4,111		$868,430		$880,116
Money market investments		4,274		3,112		1,162		2,015		2,259		7,386		14,015
Investment securities		91,706		85,690		6,016		76,884		14,822		177,396		164,796
Total interest income		529,761		523,451		6,310		508,569		21,192		1,053,212		1,058,927
Interest expense:
Deposits		28,060		30,201		(2,141)		42,780		(14,720)		58,261		104,881
Short-term borrowings		62		143		(81)		645		(583)		205		1,693
Long-term debt		13,837		13,995		(158)		14,263		(426)		27,832		28,377
Total interest expense		41,959		44,339		(2,380)		57,688		(15,729)		86,298		134,951
Net interest income		487,802		479,112		8,690		450,881		36,921		966,914		923,976
Provision for credit losses (benefit)		(17,015)		(82,226)		65,211		62,449		(79,464)		(99,241)		252,180
Net interest income after provision for credit losses (benefit)		504,817		561,338		(56,521)		388,432		116,385		1,066,155		671,796
Service charges on deposit accounts		40,153		39,620		533		30,163		9,990		79,773		71,822
Other service fees		76,382		70,628		5,754		52,084		24,298		147,010		116,857
Mortgage banking activities		7,448		17,343		(9,895)		3,777		3,671		24,791		10,197
Net gain (loss), including impairment, on equity securities		1,565		421		1,144		2,447		(882)		1,986		(281)
Net (loss) profit on trading account debt securities		(47)		(45)		(2)		82		(129)		(92)		573
Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale		(73)		-		(73)		2,222		(2,295)		(73)		3,179
Adjustments (expense) to indemnity reserves on loans sold		1,668		(698)		2,366		(1,160)		2,828		970		(5,953)
Other operating income		27,444		26,384		1,060		22,440		5,004		53,828		42,304
Total non-interest income		154,540		153,653		887		112,055		42,485		308,193		238,698
Operating expenses:
Personnel costs
Salaries		90,294		89,335		959		93,969		(3,675)		179,629		186,225
Commissions, incentives and other bonuses		26,374		33,218		(6,844)		16,076		10,298		59,592		41,334
Pension, postretirement and medical insurance		13,289		10,924		2,365		11,392		1,897		24,213		21,030
Other personnel costs, including payroll taxes		24,247		26,002		(1,755)		17,729		6,518		50,249		37,408
Total personnel costs		154,204		159,479		(5,275)		139,166		15,038		313,683		285,997
Net occupancy expenses		24,562		26,013		(1,451)		25,487		(925)		50,575		50,645
Equipment expenses		22,805		21,575		1,230		20,844		1,961		44,380		42,449
Other taxes		13,205		13,959		(754)		13,323		(118)		27,164		27,004
Professional fees
Collections, appraisals and other credit related fees		3,486		3,320		166		2,897		589		6,806		6,778
Programming, processing and other technology services		67,152		66,366		786		59,387		7,765		133,518		122,206
Legal fees, excluding collections		2,367		2,365		2		2,184		183		4,732		5,170
Other professional fees		28,148		27,897		251		28,079		69		56,045		59,464
Total professional fees		101,153		99,948		1,205		92,547		8,606		201,101		193,618
Communications		6,005		6,833		(828)		5,574		431		12,838		11,528
Business promotion		16,511		12,521		3,990		12,281		4,230		29,032		26,478
FDIC deposit insurance		5,742		5,968		(226)		5,340		402		11,710		10,420
Other real estate owned (OREO) (income) expenses		(4,299)		(4,533)		234		(344)		(3,955)		(8,832)		2,135
Credit and debit card processing, volume, interchange and other expenses		10,917		12,454		(1,537)		9,873		1,044		23,371		20,155
Other operating expenses
Operational losses		6,528		7,896		(1,368)		4,128		2,400		14,424		12,502
All other		9,597		12,364		(2,767)		18,217		(8,620)		21,961		33,640
Total other operating expenses		16,125		20,260		(4,135)		22,345		(6,220)		36,385		46,142
Amortization of intangibles		1,255		1,051		204		1,795		(540)		2,306		4,268
Total operating expenses		368,185		375,528		(7,343)		348,231		19,954		743,713		720,839
Income before income tax		291,172		339,463		(48,291)		152,256		138,916		630,635		189,655
Income tax expense		73,093		76,831		(3,738)		24,628		48,465		149,924		27,725
Net income		$218,079		$262,632		$(44,553)		$127,628		$90,451		$480,711		$161,930
Net income applicable to common stock		$217,726		$262,279		$(44,553)		$127,275		$90,451		$480,005		$160,877
Net income per common share - basic		$2.67		$3.13		$(0.46)		$1.49		$1.18		$5.80		$1.83
Net income per common share - diluted		$2.66		$3.12		$(0.46)		$1.49		$1.17		$5.79		$1.83
Dividends Declared per Common Share		$0.45		$0.40		$0.05		$0.40		$0.05		$0.85		$0.80

Popular, Inc.
Financial Supplement to Second Quarter 2021 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
								Variance
								Q2 2021 vs.
(In thousands)		30-Jun-21		31-Mar-21		30-Jun-20		Q1 2021
Assets:
Cash and due from banks		$530,849		$495,915		$435,080		$34,934
Money market investments		17,802,801		11,568,677		9,625,278		6,234,124
Trading account debt securities, at fair value		35,931		36,504		33,560		(573)
Debt securities available-for-sale, at fair value		22,335,167		22,771,609		20,763,453		(436,442)
Debt securities held-to-maturity, at amortized cost		88,801		89,725		95,429		(924)
Less: Allowance for credit losses		10,214		10,096		12,735		118
Total debt securities held-to-maturity, net		78,587		79,629		82,694		(1,042)
Equity securities		187,502		178,650		166,476		8,852
Loans held-for-sale, at lower of cost or fair value		85,315		84,214		68,725		1,101
Loans held-in-portfolio		29,286,225		29,344,620		29,250,076		(58,395)
Less: Unearned income		223,608		212,992		179,523		10,616
Allowance for credit losses		785,790		800,797		918,434		(15,007)
Total loans held-in-portfolio, net		28,276,827		28,330,831		28,152,119		(54,004)
Premises and equipment, net		486,443		508,023		513,680		(21,580)
Other real estate		73,272		72,060		113,940		1,212
Accrued income receivable		203,419		215,993		220,126		(12,574)
Mortgage servicing rights, at fair value		119,467		122,543		141,144		(3,076)
Other assets		1,750,151		1,713,083		1,833,444		37,068
Goodwill		671,122		671,122		671,122		-
Other intangible assets		20,440		21,415		24,511		(975)
Total assets		$72,657,293		$66,870,268		$62,845,352		$5,787,025
Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing		$14,920,887		$14,263,548		$12,520,510		$657,339
Interest bearing		49,720,889		44,479,253		41,323,790		5,241,636
Total deposits		64,641,776		58,742,801		53,844,300		5,898,975
Assets sold under agreements to repurchase		90,925		86,834		153,065		4,091
Notes payable		1,176,620		1,224,230		1,186,274		(47,610)
Other liabilities		933,358		918,844		1,881,548		14,514
Total liabilities		66,842,679		60,972,709		57,065,187		5,869,970
Stockholders’ equity:
Preferred stock		22,143		22,143		22,143		-
Common stock		1,045		1,045		1,044		-
Surplus		4,506,659		4,571,919		4,520,333		(65,260)
Retained earnings		2,670,885		2,489,453		2,033,782		181,432
Treasury stock		(1,290,427)		(1,012,263)		(1,016,486)		(278,164)
Accumulated other comprehensive (loss) income, net of tax		(95,691)		(174,738)		219,349		79,047
Total stockholders’ equity		5,814,614		5,897,559		5,780,165		(82,945)
Total liabilities and stockholders’ equity		$72,657,293		$66,870,268		$62,845,352		$5,787,025

Popular, Inc.
Financial Supplement to Second Quarter 2021 Earnings Release
Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER
(Unaudited)
		Quarters ended																					Variance
		30-Jun-21							31-Mar-21							30-Jun-20							Q2 2021 vs. Q1 2021							Q2 2021 vs. Q2 2020
($ amounts in millions)		Average balance		Income / Expense		Yield / Rate			Average balance		Income / Expense		Yield / Rate			Average balance		Income / Expense		Yield / Rate			Average balance		Income / Expense		Yield / Rate			Average balance		Income / Expense		Yield / Rate
Assets:
Interest earning assets:
Money market, trading and investment securities		$38,136		$137.5		1.44	%		$33,756		$127.8		1.52	%		$27,356		$111.5		1.64	%		$4,380		$9.7		(0.08)	%		$10,780		$26.0		(0.20)	%
Loans:
Commercial		13,539		176.9		5.24			13,624		179.0		5.33			13,350		168.8		5.09			(85)		(2.1)		(0.09)			189		8.1		0.15
Construction		858		11.6		5.43			911		11.9		5.30			935		13.2		5.69			(53)		(0.3)		0.13			(77)		(1.6)		(0.26)
Mortgage		7,765		99.4		5.12			7,869		98.4		5.00			7,038		92.2		5.24			(104)		1.0		0.12			727		7.2		(0.12)
Consumer		2,431		68.7		11.34			2,513		70.4		11.36			2,918		82.9		11.43			(82)		(1.7)		(0.02)			(487)		(14.2)		(0.09)
Auto		3,280		70.1		8.58			3,203		68.2		8.63			2,957		66.0		8.98			77		1.9		(0.05)			323		4.1		(0.40)
Lease financing		1,262		19.0		6.01			1,215		18.4		6.04			1,082		16.1		5.97			47		0.6		(0.03)			180		2.9		0.04
Total loans		29,135		445.7		6.13			29,335		446.3		6.15			28,280		439.2		6.24			(200)		(0.6)		(0.02)			855		6.5		(0.11)
Total interest earning assets		$67,271		$583.2		3.47	%		$63,091		$574.1		3.67	%		$55,636		$550.7		3.98	%		$4,180		$9.1		(0.20)	%		$11,635		$32.5		(0.51)	%
Allowance for credit losses - loan portfolio		(801)							(890)							(926)							89							125
Allowance for credit losses - investment securities		(10)							(10)							(13)							-							3
Other non-interest earning assets		3,906							3,895							4,100							11							(194)
Total average assets		$70,366							$66,086							$58,797							$4,280							$11,569
Liabilities and Stockholders' Equity:
Interest bearing deposits:
NOW and money market		$25,102		$8.0		0.13	%		$22,674		$8.3		0.15	%		$19,392		$11.6		0.24	%		$2,428		$(0.3)		(0.02)	%		$5,710		$(3.6)		(0.11)	%
Savings		15,384		6.9		0.18			14,364		7.0		0.20			11,856		10.2		0.35			1,020		(0.1)		(0.02)			3,528		(3.3)		(0.17)
Time deposits		7,104		13.2		0.74			7,265		14.9		0.83			8,730		21.0		0.97			(161)		(1.7)		(0.09)			(1,626)		(7.8)		(0.23)
Total interest-bearing deposits		47,590		28.1		0.24			44,303		30.2		0.28			39,978		42.8		0.43			3,287		(2.1)		(0.04)			7,612		(14.7)		(0.19)
Borrowings		1,316		13.9		4.24			1,344		14.1		4.23			1,336		14.9		4.48			(28)		(0.2)		0.01			(20)		(1.0)		(0.24)
Total interest-bearing liabilities		48,906		42.0		0.34			45,647		44.3		0.39			41,314		57.7		0.56			3,259		(2.3)		(0.05)			7,592		(15.7)		(0.22)
Net interest spread						3.13	%						3.28	%						3.42	%						(0.15)	%						(0.29)	%
Non-interest bearing deposits		14,920							13,394							11,006							1,526							3,914
Other liabilities		857							1,351							1,203							(494)							(346)
Stockholders' equity		5,683							5,694							5,274							(11)							409
Total average liabilities and stockholders' equity		$70,366							$66,086							$58,797							$4,280							$11,569
Net interest income / margin on a taxable equivalent basis (Non-GAAP)				$541.2		3.22	%				$529.8		3.39	%				$493.0		3.56	%				$11.4		(0.17)	%				$48.2		(0.34)	%
Taxable equivalent adjustment				53.4							50.7							42.1							2.7							11.3
Net interest income / margin non-taxable equivalent basis (GAAP)				$487.8		2.91	%				$479.1		3.07	%				$450.9		3.25	%				$8.7		(0.16)	%				$36.9		(0.34)	%

Popular, Inc.
Financial Supplement to Second Quarter 2021 Earnings Release
Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE
(Unaudited)
		Six months ended
		30-Jun-21							30-Jun-20								Variance
		Average		Income /		Yield /			Average		Income /		Yield /				Average		Income /		Yield /
($ amounts in millions)		balance		Expense		Rate			balance		Expense		Rate				balance		Expense		Rate
Assets:
Interest earning assets:
Money market, trading and investment securities		$35,958		$267.0		1.49	%		$24,050		$247.2		2.06		%		$11,908		$19.8		(0.57)	%
Loans:
Commercial		13,582		355.9		5.30			12,846		352.0		5.51				736		3.9		(0.21)
Construction		884		23.5		5.38			898		26.4		5.91				(14)		(2.9)		(0.53)
Mortgage		7,816		197.8		5.06			7,033		185.4		5.27				783		12.4		(0.21)
Consumer		2,472		139.1		11.35			3,014		172.2		11.49				(542)		(33.1)		(0.14)
Auto		3,241		138.3		8.63			2,975		133.8		9.04				266		4.5		(0.41)
Lease financing		1,239		37.3		6.02			1,077		32.4		6.02				162		4.9		-
Total loans		29,234		891.9		6.15			27,843		902.2		6.51				1,391		(10.3)		(0.36)
Total interest earning assets		$65,192		$1,158.9		3.58	%		$51,893		$1,149.4		4.45		%		$13,299		$9.5		(0.87)	%
Allowance for credit losses - loan portfolio		(845)							(867)								22
Allowance for credit losses - investment securities		(10)							(13)								3
Other non-interest earning assets		3,900							4,064								(164)
Total average assets		$68,237							$55,077								$13,160
Liabilities and Stockholders' Equity:
Interest bearing deposits:
NOW and money market		$23,895		$16.2		0.14	%		$17,811		$36.8		0.42		%		$6,084		($20.6)		(0.28)	%
Savings		14,876		14.0		0.19			11,290		21.9		0.39				3,586		(7.9)		(0.20)
Time deposits		7,184		28.1		0.79			8,211		46.1		1.13				(1,027)		(18.0)		(0.34)
Total interest-bearing deposits		45,955		58.3		0.26			37,312		104.8		0.57				8,643		(46.5)		(0.31)
Borrowings		1,330		28.0		4.24			1,331		30.1		4.53				(1)		(2.1)		(0.29)
Total interest-bearing liabilities		47,285		86.3		0.37			38,643		134.9		0.70				8,642		(48.6)		(0.33)
Net interest spread						3.21	%						3.75		%						(0.54)	%
Non-interest bearing deposits		14,161							10,004								4,157
Other liabilities		1,103							1,052								51
Stockholders' equity		5,688							5,378								310
Total average liabilities and stockholders' equity		$68,237							$55,077								$13,160
Net interest income / margin on a taxable equivalent basis (Non-GAAP)				$1,072.6		3.31	%				$1,014.5		3.93		%				$58.1		(0.62)	%
Taxable equivalent adjustment				105.7							90.5								15.2
Net interest income / margin non-taxable equivalent basis (GAAP)				$966.9		2.99	%				$924.0		3.58		%				$42.9		(0.59)	%

Popular, Inc.
Financial Supplement to Second Quarter 2021 Earnings Release
Table F - Mortgage Banking Activities and Other Service Fees
(Unaudited)
Mortgage Banking Activities
		Quarters ended						Variance				Six months ended				Variance
(In thousands)		30-Jun-21		31-Mar-21		30-Jun-20		Q2 2021 vs. Q1 2021		Q2 2021 vs. Q2 2020		30-Jun-21		30-Jun-20		2021 vs. 2020
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees		$9,522		$9,715		$9,058		$(193)		$464		$19,237		$20,026		$(789)
Mortgage servicing rights fair value adjustments		(6,239)		512		(7,640)		(6,751)		1,401		(5,727)		(12,869)		7,142
Total mortgage servicing fees, net of fair value adjustments		3,283		10,227		1,418		(6,944)		1,865		13,510		7,157		6,353
Net gain on sale of loans, including valuation on loans held-for-sale		5,197		4,975		5,487		222		(290)		10,172		9,473		699
Trading account (loss) profit:
Unrealized gains (losses) on outstanding derivative positions		-		-		1,695		-		(1,695)		-		-		-
Realized (losses) gains on closed derivative positions		(866)		2,502		(4,823)		(3,368)		3,957		1,636		(6,433)		8,069
Total trading account (loss) profit		(866)		2,502		(3,128)		(3,368)		2,262		1,636		(6,433)		8,069
Losses on repurchased loans, including interest advances[1]		(166)		(361)		-		195		(166)		(527)		-		(527)
Total mortgage banking activities		$7,448		$17,343		$3,777		$(9,895)		$3,671		$24,791		$10,197		$14,594
[1]The Corporation, from time to time, repurchases delinquent loans from its GNMA servicing portfolio, in compliance with Guarantor guidelines, and may incur in losses related to previously advanced interest on delinquent loans. Effective for the quarter ended September 30, 2020, the Corporation has determined to present these losses as part of its Mortgage Banking Activities, which were previously presented with the indemnity reserves on loans sold component of non-interest income. The amount of these losses for prior years were considered immaterial for reclassification.

Other Service Fees
		Quarters ended						Variance				Six months ended				Variance
(In thousands)		30-Jun-21		31-Mar-21		30-Jun-20		Q2 2021 vs. Q1 2021		Q2 2021 vs. Q2 2020		30-Jun-21		30-Jun-20		2021 vs. 2020
Other service fees:
Debit card fees		$12,458		$11,577		$7,082		$881		$5,376		$24,035		$17,319		$6,716
Insurance fees		12,773		12,828		11,301		(55)		1,472		25,601		24,270		1,331
Credit card fees		32,726		28,691		17,762		4,035		14,964		61,417		40,948		20,469
Sale and administration of investment products		5,970		5,540		4,910		430		1,060		11,510		11,173		337
Trust fees		6,165		5,842		5,546		323		619		12,007		10,806		1,201
Other fees		6,290		6,150		5,483		140		807		12,440		12,341		99
Total other service fees		$76,382		$70,628		$52,084		$5,754		$24,298		$147,010		$116,857		$30,153

Popular, Inc.
Financial Supplement to Second Quarter 2021 Earnings Release
Table G - Loans and Deposits
(Unaudited)
Loans - Ending Balances
								Variance
(In thousands)		30-Jun-21		31-Mar-21		30-Jun-20		Q2 2021 vs. Q1 2021		Q2 2021 vs. Q2 2020
Loans held-in-portfolio:
Commercial		$13,437,932		$13,442,486		$13,744,579		$(4,554)		$(306,647)
Construction		865,113		907,736		936,010		(42,623)		(70,897)
Lease financing		1,297,928		1,244,956		1,098,188		52,972		199,740
Mortgage		7,678,478		7,808,852		7,521,795		(130,374)		156,683
Auto		3,289,027		3,203,137		2,904,324		85,890		384,703
Consumer		2,494,139		2,524,461		2,865,657		(30,322)		(371,518)
Total loans held-in-portfolio		$29,062,617		$29,131,628		$29,070,553		$(69,011)		$(7,936)
Loans held-for-sale:
Commercial		$1,700		$3,549		$6,778		$(1,849)		$(5,078)
Construction		7,000		-		-		7,000		7,000
Mortgage		76,615		80,665		61,947		(4,050)		14,668
Total loans held-for-sale		$85,315		$84,214		$68,725		$1,101		$16,590
Total loans		$29,147,932		$29,215,842		$29,139,278		$(67,910)		$8,654

Deposits - Ending Balances
								Variance
(In thousands)		30-Jun-21		31-Mar-21		30-Jun-20		Q2 2021 vs. Q1 2021		Q2 2021 vs. Q2 2020
Demand deposits [1]		$24,497,918		$23,450,312		$22,731,726		$1,047,606		$1,766,192
Savings, NOW and money market deposits (non-brokered)		32,452,829		27,356,136		22,457,951		5,096,693		9,994,878
Savings, NOW and money market deposits (brokered)		683,021		679,832		522,929		3,189		160,092
Time deposits (non-brokered)		6,979,349		7,143,221		7,919,265		(163,872)		(939,916)
Time deposits (brokered CDs)		28,659		113,300		212,429		(84,641)		(183,770)
Total deposits		$64,641,776		$58,742,801		$53,844,300		$5,898,975		$10,797,476
[1] Includes interest and non-interest bearing demand deposits.

Popular, Inc.
Financial Supplement to Second Quarter 2021 Earnings Release
Table H - Loan Delinquency - Puerto Rico Operations
(Unaudited)
30-Jun-21
Puerto Rico
			Past due																		Past due 90 days or more
		30-59			60-89			90 days			Total										Non-accrual				Accruing
(In thousands)		days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family		$	128		$	-		$	397		$	525		$	151,258		$	151,783			$	397		$	-
Commercial real estate:
Non-owner occupied			32,749			-			72,378			105,127			1,888,302			1,993,429				72,378			-
Owner occupied			3,995			604			79,808			84,407			1,380,022			1,464,429				79,808			-
Commercial and industrial			2,314			682			65,727			68,723			3,952,675			4,021,398				65,120			607
Construction			-			3,080			14,877			17,957			124,990			142,947				14,877			-
Mortgage			164,779			73,492			995,175			1,233,446			5,281,711			6,515,157				370,653			624,522
Leasing			6,054			2,103			2,286			10,443			1,287,485			1,297,928				2,286			-
Consumer:
Credit cards			4,371			2,826			8,021			15,218			864,912			880,130				-			8,021
Home equity lines of credit			-			-			-			-			3,489			3,489				-			-
Personal			9,405			4,444			23,861			37,710			1,227,582			1,265,292				23,861			-
Auto			39,032			7,405			13,286			59,723			3,229,304			3,289,027				13,286			-
Other			214			97			14,288			14,599			108,427			123,026				14,123			165
Total		$	263,041		$	94,733		$	1,290,104		$	1,647,878		$	19,500,157		$	21,148,035			$	656,789		$	633,315
31-Mar-21
Puerto Rico
			Past due																		Past due 90 days or more
		30-59			60-89			90 days			Total										Non-accrual				Accruing
(In thousands)		days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family		$	196		$	-		$	814		$	1,010		$	137,097		$	138,107			$	814		$	-
Commercial real estate:
Non-owner occupied			939			25,406			76,524			102,869			1,958,129			2,060,998				76,524			-
Owner occupied			6,749			2,114			89,752			98,615			1,413,356			1,511,971				89,752			-
Commercial and industrial			3,870			650			34,333			38,853			4,032,359			4,071,212				33,773			560
Construction			639			-			14,877			15,516			145,081			160,597				14,877			-
Mortgage			175,930			83,770			1,211,935			1,471,635			5,204,344			6,675,979				390,781			821,154
Leasing			7,564			1,408			3,040			12,012			1,232,944			1,244,956				3,040			-
Consumer:
Credit cards			4,824			3,883			10,779			19,486			858,255			877,741				-			10,779
Home equity lines of credit			-			-			46			46			3,498			3,544				-			46
Personal			10,216			6,250			25,731			42,197			1,219,094			1,261,291				25,731			-
Auto			47,396			8,783			15,405			71,584			3,131,553			3,203,137				15,405			-
Other			360			375			15,489			16,224			108,508			124,732				15,281			208
Total		$	258,683		$	132,639		$	1,498,725		$	1,890,047		$	19,444,218		$	21,334,265			$	665,978		$	832,747

Variance
		Past due																			Past due 90 days or more
		30-59			60-89			90 days			Total										Non-accrual			Accruing
(In thousands)		days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family		$	(68)		$	-		$	(417)		$	(485)		$	14,161		$	13,676			$	(417)		$	-
Commercial real estate:
Non-owner occupied			31,810			(25,406)			(4,146)			2,258			(69,827)			(67,569)				(4,146)			-
Owner occupied			(2,754)			(1,510)			(9,944)			(14,208)			(33,334)			(47,542)				(9,944)			-
Commercial and industrial			(1,556)			32			31,394			29,870			(79,684)			(49,814)				31,347			47
Construction			(639)			3,080			-			2,441			(20,091)			(17,650)				-			-
Mortgage			(11,151)			(10,278)			(216,760)			(238,189)			77,367			(160,822)				(20,128)			(196,632)
Leasing			(1,510)			695			(754)			(1,569)			54,541			52,972				(754)			-
Consumer:
Credit cards			(453)			(1,057)			(2,758)			(4,268)			6,657			2,389				-			(2,758)
Home equity lines of credit			-			-			(46)			(46)			(9)			(55)				-			(46)
Personal			(811)			(1,806)			(1,870)			(4,487)			8,488			4,001				(1,870)			-
Auto			(8,364)			(1,378)			(2,119)			(11,861)			97,751			85,890				(2,119)			-
Other			(146)			(278)			(1,201)			(1,625)			(81)			(1,706)				(1,158)			(43)
Total		$	4,358		$	(37,906)		$	(208,621)		$	(242,169)		$	55,939		$	(186,230)			$	(9,189)		$	(199,432)

Popular, Inc.
Financial Supplement to Second Quarter 2021 Earnings Release
Table I - Loan Delinquency - Popular U.S. Operations
(Unaudited)
June 30, 2021
Popular U.S.
		Past due																			Past due 90 days or more
		30-59			60-89			90 days			Total										Non-accrual			Accruing
(In thousands)		days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family		$	-		$	-		$	5,949		$	5,949		$	1,733,104		$	1,739,053			$	5,949		$	-
Commercial real estate:
Non-owner occupied			-			-			374			374			2,131,860			2,132,234				374			-
Owner occupied			907			639			193			1,739			338,445			340,184				193			-
Commercial and industrial			3,070			509			1,346			4,925			1,590,497			1,595,422				1,346			-
Construction			-			-			-			-			722,166			722,166				-			-
Mortgage			2,498			5,005			13,323			20,826			1,142,495			1,163,321				13,323			-
Consumer:
Credit cards			-			-			-			-			31			31				-			-
Home equity lines of credit			501			210			6,377			7,088			74,850			81,938				6,377			-
Personal			572			579			832			1,983			135,014			136,997				832			-
Other			-			-			-			-			3,236			3,236				-			-
Total		$	7,548		$	6,942		$	28,394		$	42,884		$	7,871,698		$	7,914,582			$	28,394		$	-
March 31, 2021
Popular U.S.
		Past due																			Past due 90 days or more
		30-59			60-89			90 days			Total										Non-accrual			Accruing
(In thousands)		days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family		$	30,185		$	-		$	-		$	30,185		$	1,724,802		$	1,754,987			$	-		$	-
Commercial real estate:
Non-owner occupied			8,280			-			392			8,672			2,034,383			2,043,055				392			-
Owner occupied			5,437			644			323			6,404			323,541			329,945				323			-
Commercial and industrial			7,226			1,321			1,201			9,748			1,522,463			1,532,211				1,192			9
Construction			11,110			-			7,523			18,633			728,506			747,139				7,523			-
Mortgage			13,032			1,762			14,793			29,587			1,103,286			1,132,873				14,793			-
Consumer:
Credit cards			-			-			-			-			22			22				-			-
Home equity lines of credit			121			10			6,855			6,986			82,631			89,617				6,855			-
Personal			1,156			666			1,086			2,908			162,540			165,448				1,086			-
Other			-			-			-			-			2,066			2,066				-			-
Total		$	76,547		$	4,403		$	32,173		$	113,123		$	7,684,240		$	7,797,363			$	32,164		$	9

Variance
		Past due																			Past due 90 days or more
		30-59			60-89			90 days			Total										Non-accrual			Accruing
(In thousands)		days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family		$	(30,185)		$	-		$	5,949		$	(24,236)		$	8,302		$	(15,934)			$	5,949		$	-
Commercial real estate:
Non-owner occupied			(8,280)			-			(18)			(8,298)			97,477			89,179				(18)			-
Owner occupied			(4,530)			(5)			(130)			(4,665)			14,904			10,239				(130)			-
Commercial and industrial			(4,156)			(812)			145			(4,823)			68,034			63,211				154			(9)
Construction			(11,110)			-			(7,523)			(18,633)			(6,340)			(24,973)				(7,523)			-
Mortgage			(10,534)			3,243			(1,470)			(8,761)			39,209			30,448				(1,470)			-
Consumer:
Credit cards			-			-			-			-			9			9				-			-
Home equity lines of credit			380			200			(478)			102			(7,781)			(7,679)				(478)			-
Personal			(584)			(87)			(254)			(925)			(27,526)			(28,451)				(254)			-
Other			-			-			-			-			1,170			1,170				-			-
Total		$	(68,999)		$	2,539		$	(3,779)		$	(70,239)		$	187,458		$	117,219			$	(3,770)		$	(9)

Popular, Inc.
Financial Supplement to Second Quarter 2021 Earnings Release
Table J - Loan Delinquency - Consolidated
(Unaudited)
30-Jun-21
Popular, Inc.
		Past due																			Past due 90 days or more
		30-59			60-89			90 days			Total										Non-accrual			Accruing
(In thousands)		days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family		$	128		$	-		$	6,346		$	6,474		$	1,884,362		$	1,890,836			$	6,346		$	-
Commercial real estate:
Non-owner occupied			32,749			-			72,752			105,501			4,020,162			4,125,663				72,752			-
Owner occupied			4,902			1,243			80,001			86,146			1,718,467			1,804,613				80,001			-
Commercial and industrial			5,384			1,191			67,073			73,648			5,543,172			5,616,820				66,466			607
Construction			-			3,080			14,877			17,957			847,156			865,113				14,877			-
Mortgage			167,277			78,497			1,008,498			1,254,272			6,424,206			7,678,478				383,976			624,522
Leasing			6,054			2,103			2,286			10,443			1,287,485			1,297,928				2,286			-
Consumer:
Credit cards			4,371			2,826			8,021			15,218			864,943			880,161				-			8,021
Home equity lines of credit			501			210			6,377			7,088			78,339			85,427				6,377			-
Personal			9,977			5,023			24,693			39,693			1,362,596			1,402,289				24,693			-
Auto			39,032			7,405			13,286			59,723			3,229,304			3,289,027				13,286			-
Other			214			97			14,288			14,599			111,663			126,262				14,123			165
Total		$	270,589		$	101,675		$	1,318,498		$	1,690,762		$	27,371,855		$	29,062,617			$	685,183		$	633,315
31-Mar-21
Popular, Inc.
		Past due																			Past due 90 days or more
		30-59			60-89			90 days			Total										Non-accrual			Accruing
(In thousands)		days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family		$	30,381		$	-		$	814		$	31,195		$	1,861,899		$	1,893,094			$	814		$	-
Commercial real estate:
Non-owner occupied			9,219			25,406			76,916			111,541			3,992,512			4,104,053				76,916			-
Owner occupied			12,186			2,758			90,075			105,019			1,736,897			1,841,916				90,075			-
Commercial and industrial			11,096			1,971			35,534			48,601			5,554,822			5,603,423				34,965			569
Construction			11,749			-			22,400			34,149			873,587			907,736				22,400			-
Mortgage			188,962			85,532			1,226,728			1,501,222			6,307,630			7,808,852				405,574			821,154
Leasing			7,564			1,408			3,040			12,012			1,232,944			1,244,956				3,040			-
Consumer:
Credit cards			4,824			3,883			10,779			19,486			858,277			877,763				-			10,779
Home equity lines of credit			121			10			6,901			7,032			86,129			93,161				6,855			46
Personal			11,372			6,916			26,817			45,105			1,381,634			1,426,739				26,817			-
Auto			47,396			8,783			15,405			71,584			3,131,553			3,203,137				15,405			-
Other			360			375			15,489			16,224			110,574			126,798				15,281			208
Total		$	335,230		$	137,042		$	1,530,898		$	2,003,170		$	27,128,458		$	29,131,628			$	698,142		$	832,756
Variance
		Past due																			Past due 90 days or more
		30-59			60-89			90 days			Total										Non-accrual			Accruing
(In thousands)		days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family		$	(30,253)		$	-		$	5,532		$	(24,721)		$	22,463		$	(2,258)			$	5,532		$	-
Commercial real estate:
Non-owner occupied			23,530			(25,406)			(4,164)			(6,040)			27,650			21,610				(4,164)			-
Owner occupied			(7,284)			(1,515)			(10,074)			(18,873)			(18,430)			(37,303)				(10,074)			-
Commercial and industrial			(5,712)			(780)			31,539			25,047			(11,650)			13,397				31,501			38
Construction			(11,749)			3,080			(7,523)			(16,192)			(26,431)			(42,623)				(7,523)			-
Mortgage			(21,685)			(7,035)			(218,230)			(246,950)			116,576			(130,374)				(21,598)			(196,632)
Leasing			(1,510)			695			(754)			(1,569)			54,541			52,972				(754)			-
Consumer:
Credit cards			(453)			(1,057)			(2,758)			(4,268)			6,666			2,398				-			(2,758)
Home equity lines of credit			380			200			(524)			56			(7,790)			(7,734)				(478)			(46)
Personal			(1,395)			(1,893)			(2,124)			(5,412)			(19,038)			(24,450)				(2,124)			-
Auto			(8,364)			(1,378)			(2,119)			(11,861)			97,751			85,890				(2,119)			-
Other			(146)			(278)			(1,201)			(1,625)			1,089			(536)				(1,158)			(43)
Total		$	(64,641)		$	(35,367)		$	(212,400)		$	(312,408)		$	243,397		$	(69,011)			$	(12,959)		$	(199,441)

Popular, Inc.
Financial Supplement to Second Quarter 2021 Earnings Release
Table K - Non-Performing Assets
(Unaudited)
																				Variance
(Dollars in thousands)		30-Jun-21			As a % of loans HIP by category			31-Mar-21			As a % of loans HIP by category			30-Jun-20			As a % of loans HIP by category			Q2 2021 vs. Q1 2021		Q2 2021 vs. Q2 2020
Non-accrual loans:
Commercial		$225,565			1.7	%		$202,770			1.5	%		$263,129			1.9	%		$22,795		$(37,564)
Construction		14,877			1.7			22,400			2.5			-			-			(7,523)		14,877
Lease financing		2,286			0.2			3,040			0.2			4,751			0.4			(754)		(2,465)
Mortgage		383,976			5.0			405,574			5.2			411,406			5.5			(21,598)		(27,430)
Auto		13,286			0.4			15,405			0.5			22,111			0.8			(2,119)		(8,825)
Consumer		45,193			1.8			48,953			1.9			58,807			2.1			(3,760)		(13,614)
Total non-performing loans held-in-portfolio		685,183			2.4	%		698,142			2.4	%		760,204			2.6	%		(12,959)		(75,021)
Non-performing loans held-for-sale [1]		8,700						3,549						6,778						5,151		1,922
Other real estate owned (“OREO”)		73,272						72,060						113,940						1,212		(40,668)
Total non-performing assets		$767,155						$773,751						$880,922						$(6,596)		$(113,767)
Accruing loans past due 90 days or more [2]		$633,315						$832,756						$878,776						$(199,441)		$(245,461)
Ratios:
Non-performing assets to total assets		1.06	%					1.16	%					1.40	%
Non-performing loans held-in-portfolio to loans held-in-portfolio		2.36						2.40						2.62
Allowance for credit losses to loans held-in-portfolio		2.70						2.75						3.16
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		114.68						114.70						120.81
[1] Non-performing loans held-for-sale as of June 30, 2021, were $7 million in construction loans and $2 million commercial loans (March 31, 2021 - $4 million in commercial loans; June 30, 2020 - $7 million in commercial loans).
[2] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. The balance of these loans includes $15 million at June 30, 2021, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (March 31, 2021 - $29 million; June 30, 2020 - $522 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on the financial statements of BPPR with an offsetting liability. While the borrowers for our serviced GNMA portfolio benefited from the moratorium, the delinquency status of these loans continued to be reported to GNMA without considering the moratorium. These balances include $363 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2021 (March 31, 2021 - $341 million; June 30, 2020 - $234 million). Furthermore, the Corporation has approximately $56 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (March 31, 2021 - $58 million; June 30, 2020 - $62 million).

Popular, Inc.
Financial Supplement to Second Quarter 2021 Earnings Release
Table L - Activity in Non-Performing Loans
(Unaudited)
Commercial loans held-in-portfolio:
		Quarter ended						Quarter ended
		30-Jun-21						31-Mar-21
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$200,863		$1,907		$202,770		$204,092		$5,988		$210,080
Plus:
New non-performing loans		39,657		7,570		47,227		7,724		1,693		9,417
Advances on existing non-performing loans		-		1		1		-		6		6
Less:
Non-performing loans transferred to OREO		(2,346)		-		(2,346)		(3,850)		-		(3,850)
Non-performing loans charged-off		(1,515)		(624)		(2,139)		(2,391)		(352)		(2,743)
Loans returned to accrual status / loan collections		(18,956)		(992)		(19,948)		(4,712)		(3,655)		(8,367)
Loans transferred to held-for-sale		-		-		-		-		(1,773)		(1,773)
Ending balance NPLs		$217,703		$7,862		$225,565		$200,863		$1,907		$202,770
Construction loans held-in-portfolio:
		Quarter ended						Quarter ended
		30-Jun-21						31-Mar-21
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$14,877		$7,523		$22,400		$21,497		$7,560		$29,057
Plus:
New non-performing loans		-		-		-		-		12,141		12,141
Less:
Non-performing loans charged-off		-		(523)		(523)		(6,620)		-		(6,620)
Loans returned to accrual status / loan collections		-		-		-		-		(12,178)		(12,178)
Loans transferred to held-for-sale		-		(7,000)		(7,000)		-		-		-
Ending balance NPLs		$14,877		$-		$14,877		$14,877		$7,523		$22,400
Mortgage loans held-in-portfolio:
		Quarter ended						Quarter ended
		30-Jun-21						31-Mar-21
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$390,781		$14,793		$405,574		$414,343		$14,864		$429,207
Plus:
New non-performing loans		43,432		4,774		48,206		58,397		4,323		62,720
Advances on existing non-performing loans		-		11		11		-		5		5
Less:
Non-performing loans transferred to OREO		(8,257)		-		(8,257)		(801)		-		(801)
Non-performing loans charged-off		(4,297)		-		(4,297)		(8,722)		(1)		(8,723)
Loans returned to accrual status / loan collections		(51,006)		(6,255)		(57,261)		(72,436)		(4,398)		(76,834)
Ending balance NPLs		$370,653		$13,323		$383,976		$390,781		$14,793		$405,574
Total non-performing loans held-in-portfolio (excluding consumer):
		Quarter ended						Quarter ended
		30-Jun-21						31-Mar-21
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$606,521		$24,223		$630,744		$639,932		$28,412		$668,344
Plus:
New non-performing loans		83,089		12,344		95,433		66,121		18,157		84,278
Advances on existing non-performing loans		-		12		12		-		11		11
Less:
Non-performing loans transferred to OREO		(10,603)		-		(10,603)		(4,651)		-		(4,651)
Non-performing loans charged-off		(5,812)		(1,147)		(6,959)		(17,733)		(353)		(18,086)
Loans returned to accrual status / loan collections		(69,962)		(7,247)		(77,209)		(77,148)		(20,231)		(97,379)
Loans transferred to held-for-sale		-		(7,000)		(7,000)		-		(1,773)		(1,773)
Ending balance NPLs		$603,233		$21,185		$624,418		$606,521		$24,223		$630,744

Popular, Inc.
Financial Supplement to Second Quarter 2021 Earnings Release
Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)
		Quarters ended
(Dollars in thousands)		30-Jun-21			31-Mar-21			30-Jun-20
Balance at beginning of period - loans held-in-portfolio		$800,797			$896,250			$919,716
Provision for credit losses (benefit)		(17,500)			(75,779)			63,104
Initial allowance for credit losses - PCD Loans		1,202			1,356			567
		784,499			821,827			983,387
Net loans charged-off (recovered):
BPPR
Commercial		(9,877)			(1,434)			1,097
Construction		(479)			5,917			(195)
Lease financing		393			118			3,390
Mortgage		935			8,303			7,554
Consumer		7,545			6,570			50,297
Total BPPR		(1,483)			19,474			62,143
Popular U.S.
Commercial		(413)			16			(784)
Construction		93			-			-
Mortgage		(423)			(80)			(19)
Consumer		935			1,620			3,613
Total Popular U.S.		192			1,556			2,810
Total loans charged-off (recovered) - Popular, Inc.		(1,291)			21,030			64,953
Balance at end of period - loans held-in-portfolio		$785,790			$800,797			$918,434
Balance at beginning of period - unfunded commitments		$9,569			$15,851			$4,466
Provision for credit losses (benefit)		367			(6,282)			2,251
Balance at end of period - unfunded commitments [1]		$9,936			$9,569			$6,717
POPULAR, INC.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		(0.02)	%		0.29	%		0.92	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		N.M.			-360.34	%		97.15	%
BPPR
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		(0.03)	%		0.36	%		1.20	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		N.M			-205.28	%		97.23	%
Popular U.S.
Annualized net charge-offs to average loans held-in-portfolio		0.01	%		0.08	%		0.15	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		N.M.			N.M.			95.41	%
N.M. - Not meaningful.
[1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

Popular, Inc.
Financial Supplement to Second Quarter 2021 Earnings Release
Table N - Allowance for Credit Losses "ACL"- Loan Portfolios - CONSOLIDATED
(Unaudited)
30-Jun-21
(Dollars in thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Total ACL		$271,144			$11,256			$182,619			$17,551			$303,220			$785,790
Total loans held-in-portfolio		$13,437,932			$865,113			$7,678,478			$1,297,928			$5,783,166			$29,062,617
ACL to loans held-in-portfolio		2.02	%		1.30	%		2.38	%		1.35	%		5.24	%		2.70	%
31-Mar-21
(Dollars in thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Total ACL		$276,219			$9,195			$202,126			$12,687			$300,570			$800,797
Total loans held-in-portfolio		$13,442,486			$907,736			$7,808,852			$1,244,956			$5,727,598			$29,131,628
ACL to loans held-in-portfolio		2.05	%		1.01	%		2.59	%		1.02	%		5.25	%		2.75	%
Variance
(Dollars in thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Total ACL		$(5,075)			$2,061			$(19,507)			$4,864			$2,650			$(15,007)
Total loans held-in-portfolio		$(4,554)			$(42,623)			$(130,374)			$52,972			$55,568			$(69,011)

Popular, Inc.
Financial Supplement to Second Quarter 2021 Earnings Release
Table O - Allowance for Credit Losses "ACL"- Loan Portfolios - PUERTO RICO OPERATIONS
(Unaudited)
30-Jun-21
Puerto Rico
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL		$186,784			$1,220			$166,808			$17,551			$289,490			$661,853
Loans held-in-portfolio		$7,631,039			$142,947			$6,515,157			$1,297,928			$5,560,964			$21,148,035
ACL to loans held-in-portfolio		2.45	%		0.85	%		2.56	%		1.35	%		5.21	%		3.13	%
31-Mar-21
Puerto Rico
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL		$197,111			$260			$185,805			$12,687			$285,793			$681,656
Loans held-in-portfolio		$7,782,288			$160,597			$6,675,979			$1,244,956			$5,470,445			$21,334,265
ACL to loans held-in-portfolio		2.53	%		0.16	%		2.78	%		1.02	%		5.22	%		3.20	%
Variance
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL		$(10,327)			$960			$(18,997)			$4,864			$3,697			$(19,803)
Loans held-in-portfolio		$(151,249)			$(17,650)			$(160,822)			$52,972			$90,519			$(186,230)

Popular, Inc.
Financial Supplement to Second Quarter 2021 Earnings Release
Table P - Allowance for Credit Losses "ACL"- Loan Portfolios - POPULAR U.S. OPERATIONS
(Unaudited)
30-Jun-21
Popular U.S.
(In thousands)		Commercial			Construction			Mortgage			Consumer			Total
ACL		$84,360			$10,036			$15,811			$13,730			$123,937
Loans held-in-portfolio		$5,806,893			$722,166			$1,163,321			$222,202			$7,914,582
ACL to loans held-in-portfolio		1.45	%		1.39	%		1.36	%		6.18	%		1.57	%
31-Mar-21
Popular U.S.
(In thousands)		Commercial			Construction			Mortgage			Consumer			Total
ACL		$79,108			$8,935			$16,321			$14,777			$119,141
Loans held-in-portfolio		$5,660,198			$747,139			$1,132,873			$257,153			$7,797,363
ACL to loans held-in-portfolio		1.40	%		1.20	%		1.44	%		5.75	%		1.53	%
Variance
(In thousands)		Commercial			Construction			Mortgage			Consumer			Total
ACL		$5,252			$1,101			$(510)			$(1,047)			$4,796
Loans held-in-portfolio		$146,695			$(24,973)			$30,448			$(34,951)			$117,219

Popular, Inc.
Financial Supplement to Second Quarter 2021 Earnings Release
Table Q - Reconciliation to GAAP Financial Measures
(Unaudited)
(In thousands, except share or per share information)		30-Jun-21			31-Mar-21			30-Jun-20
Total stockholders’ equity		$5,814,614			$5,897,559			$5,780,165
Less: Preferred stock		(22,143)			(22,143)			(22,143)
Less: Goodwill		(671,122)			(671,122)			(671,122)
Less: Other intangibles		(20,440)			(21,415)			(24,511)
Total tangible common equity		$5,100,909			$5,182,879			$5,062,389
Total assets		$72,657,293			$66,870,268			$62,845,352
Less: Goodwill		(671,122)			(671,122)			(671,122)
Less: Other intangibles		(20,440)			(21,415)			(24,511)
Total tangible assets		$71,965,731			$66,177,731			$62,149,719
Tangible common equity to tangible assets		7.09	%		7.83	%		8.15	%
Common shares outstanding at end of period		80,656,480			84,379,180			84,184,927
Tangible book value per common share		$63.24			$61.42			$60.13
		Quarterly average
Total stockholders’ equity [1]		$5,683,325			$5,693,672			$5,274,071
Less: Preferred Stock		(22,143)			(22,143)			(22,143)
Less: Goodwill		(671,121)			(671,121)			(671,121)
Less: Other intangibles		(21,350)			(22,104)			(25,497)
Total tangible equity		$4,968,711			$4,978,304			$4,555,310
Return on average tangible common equity		17.58	%		21.37	%		11.23	%
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale.

 

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