Popular, Inc. Announces Third Quarter 2022 Financial Results

Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $422.4 million for the quarter ended September 30, 2022, compared to net income of $211.4 million for the quarter ended June 30, 2022. Excluding the effects of the previously announced Evertec Transactions completed during the third quarter, net income was $195.8 million

Ignacio Alvarez, President and Chief Executive Officer, said: “We are pleased with Popular’s performance in the third quarter, which reflected strong loan growth in both the mainland and Puerto Rico, an expansion of our net interest margin, and positive credit quality metrics. We are mindful of the global economic uncertainty and market volatility, but remain optimistic about the future of Puerto Rico, our main market. Consumer activity remains healthy and recovery funds from previous events are expected to provide additional stimulus. With strong fundamentals, prudent management and diversified sources of revenue, we are well-positioned to address the challenges that may lie ahead.

In addition to our financial results, I am extremely proud of our team’s response in the wake of Hurricane Fiona, which impacted Puerto Rico in September. Thanks to their agility and resolve, we mobilized quickly to assist communities in need, serve our customers despite operational challenges and support impacted colleagues. Our colleagues’ performance in events such as this one evidences our unwavering commitment to all the important stakeholders we serve.”

Significant Events

Acquisition of Key Customer Channels and Amendments to Commercial Contracts with Evertec and Subsequent Sale of Remaining Ownership Stake in Evertec

On July 1, 2022, the Corporation’s wholly owned subsidiary, Banco Popular de Puerto Rico (“BPPR”), completed its previously announced acquisition of certain assets from Evertec Group, LLC (“Evertec Group”), a wholly owned subsidiary of Evertec, Inc. (“Evertec”), to service certain BPPR channels (“Business Acquisition Transaction”).

As a result of the closing of the Business Acquisition Transaction, BPPR acquired from Evertec Group certain critical channels, including BPPR’s retail and business digital banking and commercial cash management applications. In connection with the Business Acquisition Transaction, BPPR also entered into amended and restated service agreements with Evertec Group pursuant to which Evertec Group will continue to provide various information technology and transaction processing services to Popular, BPPR and their respective subsidiaries.

Under the amended service agreements, Evertec Group no longer has exclusive rights to provide certain of Popular’s technology services. The amended service agreements include discounted pricing and lowered caps on contractual pricing escalators tied to the Consumer Price Index. As part of the transaction, BPPR and Evertec also entered into a revenue sharing structure for BPPR in connection with its merchant acquiring relationship with Evertec.

As consideration for the Business Acquisitions Transaction, BPPR delivered to Evertec Group 4,589,169 shares of Evertec common stock valued at closing at $169.2 million (based on Evertec’s stock price on June 30, 2022 of $36.88). A total of $144.8 million of the consideration for the transaction was attributed to the acquisition of the critical channels of which $28.7 million were attributed to Software Intangible Assets and $116.1 million were attributed to goodwill. The transaction was accounted for as a business combination. The remaining $24.2 million was attributed to the renegotiation of the Master Services Agreement (“MSA”) with Evertec and was recorded as an expense. The Corporation also recorded a credit of $6.9 million in Evertec billings under the MSA during the third quarter of 2022 as a result of the Business Acquisition Transaction, resulting in a net expense charge for the quarter of $17.3 million.

On August 15, 2022, the Corporation completed the sale of its remaining 7,065,634 shares of common stock of Evertec, Inc. (the “Evertec Stock Sale”, and collectively with the Business Acquisition Transaction, the “Evertec Transactions”). Following the Evertec Stock Sale, Popular no longer owns any Evertec common stock. The impact of the gain on the sale of Evertec shares used as consideration for the Business Acquisition Transaction in exchange for the acquired applications on July 1, 2022 and the net expense associated with the renegotiation of the MSA, together with the Evertec Stock Sale and the related accounting adjustments of the Evertec Transactions, resulted in an aggregate after-tax gain of $226.6 million, recorded during the third quarter of 2022.

Capital Actions

On July 12, 2022, the Corporation completed its previously announced accelerated share repurchase (“ASR”) program for the repurchase of an aggregate $400 million of Popular’s common stock, for which an initial 3,483,942 shares were delivered in March 2022 (the “March ASR Agreement”). Upon the final settlement of the March ASR Agreement, the Corporation received an additional 1,582,922 shares of common stock and recognized approximately $120 million as treasury stock with a corresponding increase in its capital surplus account. The Corporation repurchased a total of 5,066,864 shares at an average purchase price of $78.9443 under the March ASR Agreement.

On August 25, 2022, the Corporation announced that, on August 24, 2022, it entered into another ASR agreement to repurchase an aggregate of $231 million of Popular’s common stock (the “August ASR Agreement”). The $231 million in Popular’s common stock being repurchased pursuant to the August ASR Agreement is equal to the sum of the remaining $100 million in common stock repurchases contemplated as part of the Corporation’s 2022 capital actions, announced on January 12, 2022, and the after-tax gain recognized by the Corporation as a result of the sale of its remaining shares common stock of Evertec, announced on August 15, 2022. Under the terms of the August ASR agreement, on August 26, 2022, the Corporation made an initial payment of $231 million and received an initial delivery of 2,339,241 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 $185 million in treasury stock and $46 million as a reduction of capital surplus. Upon the final settlement of the August 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 August ASR agreement is expected to occur no later than the fourth quarter of 2022.

Hurricanes Fiona and Ian

On September 18, 2022, Hurricane Fiona made landfall in the southwest area of Puerto Rico as a Category 1 hurricane, bringing record rainfall and flooding throughout the island and affecting communities where BPPR does business. Hurricane Fiona’s rain and winds caused a complete blackout on the island and caused considerable damage to certain sectors in the southwest region. President Biden issued a disaster declaration for the island. While the impact to BPPR’s operation was not material, certain customers, highly concentrated in certain municipalities, were impacted by the disaster.

As part of hurricane relief efforts on the island, the Corporation has waived late-payment fees on individual lending products from September 16 through October 31, 2022. Popular also waived, through September 30, withdrawal fees payable by our customers at ATMs outside of the Popular network and fees payable by customers of other banking institutions at Popular’s ATMs. In addition, the Corporation has offered to clients impacted by the hurricane a moratorium of up to three monthly payments, up to December 31, 2022, on personal and commercial credit cards, auto loans, leases and personal loans, subject to certain eligibility requirements. Mortgage clients may also benefit from different payment relief alternatives available, depending on their type of loan. Loan relief options for commercial clients are reviewed on a case-by-case basis.

Separately, on September 28, 2022, Hurricane Ian made a landfall on the west coast of central Florida as a Category 4 hurricane, causing extensive floods and destruction in the impacted areas in Florida. President Biden made a major disaster declaration for certain counties in central Florida. PB and BPPR do not have significant operations in the area but have some limited retail and commercial clients who reside or have business activities in the impacted areas.

For clients impacted by the hurricane that reside in counties in Florida declared as disaster zones by President Biden, Popular has offered a moratorium for up to three payments, up to January 31, 2023, subject to certain eligibility requirements. As in the case of Puerto Rico, relief options for commercial clients are reviewed on a case-by-case basis.

The Corporation is still evaluating the impact of Hurricanes Fiona and Ian. However, given the hurricanes’ limited impact in the markets in which Popular does business and low level of assistance requests received by the Corporation to date, the effect on credit risk should not be significant.

Transfer of Securities from Available-for Sale to Held-To-Maturity

In October 2022, the Corporation transferred U.S. Treasury securities with a fair value of $6.5 billion (par value of $7.4 billion) from its available-for-sale portfolio to its held-to-maturity portfolio. This transaction was accounted for during the fourth quarter of 2022, when management changed its intent to hold these securities to maturity, given the Corporation’s liquidity position and its intention to reduce the impact on accumulated other comprehensive income (“AOCI”) and tangible capital of further increases in interest rates.

The securities were reclassified at fair value at the time of the transfer. At the date of the transfer, these securities had pre-tax unrealized losses of $873.1 million recorded in AOCI. This fair value discount will be accreted to interest income and the unrealized loss remaining in AOCI will be amortized, offsetting each other through the remaining life of the securities. There were no realized gains or losses recorded as a result of this transfer.

While changes in the amount of unrealized gains and losses in AOCI have an impact on the Corporation’s and its wholly-owned banking subsidiaries’ tangible capital ratios, they do not impact regulatory capital ratios, in accordance with the regulatory framework.

Earnings Highlights
(Unaudited)	Quarters ended							Nine months ended
(Dollars in thousands, except per share information)	30-Sep-22		30-Jun-22		30-Sep-21			30-Sep-22	30-Sep-21
Net interest income	$579,619		$533,862		$489,393			$1,607,793	$1,456,307
Provision for credit losses (benefit)	39,637		9,362		(61,173	)		33,499	(160,414	)
Net interest income after provision for credit losses (benefit)	539,982		524,500		550,566			1,574,294	1,616,721
Other non-interest income	426,494		157,411		169,258			738,597	477,451
Operating expenses	476,095		406,278		388,168			1,284,712	1,131,881
Income before income tax	490,381		275,633		331,656			1,028,179	962,291
Income tax expense	67,986		64,212		83,542			182,677	233,466
Net income	$422,395		$211,421		$248,114			$845,502	$728,825
Net income applicable to common stock	$422,042		$211,068		$247,761			$844,443	$727,766
Net income per common share-basic	$5.71		$2.77		$3.09			$11.09	$8.89
Net income per common share-diluted	$5.70		$2.77		$3.09			$11.07	$8.87

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 year ended September 30, 2022 and comparable periods. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.

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

Net interest income for the quarter ended September 30, 2022 was $579.6 million, compared to $533.9 million in the previous quarter, an increase of $45.7 million. Net interest income on a taxable equivalent basis for the third quarter of 2022 was $646.6 million, compared to $595.5 million in the second quarter of 2022, or an increase of $51.1 million.

Net interest margin for the quarter increased 23 basis points to 3.32% from 3.09% in the second quarter of 2022. On a taxable equivalent basis, net interest margin for the third quarter of 2022 was 3.71%, compared to 3.45% in the prior quarter. The increase in net interest margin is mainly related to higher earning assets yields due to a higher interest rate environment, partially offset by an increase in funding costs. The change in earning asset mix also impacted net interest margin positively, with increases in loan balances and reductions to lower yielding money markets, investments and trading securities. The main variances in net interest income on a taxable equivalent basis were:

• higher interest income from money market, trading and investment securities by $48.7 million, resulting from higher yield of the portfolio by 52 basis points driven mainly by the increase in the interest on excess funds at the Federal Reserve of 135 basis points and investment of U.S. Treasury securities in a higher interest rate environment. Interest income on these securities is exempt for income tax purposes under the Puerto Rico’s Internal Revenue Code;
• quarter-over-quarter, the Corporation’s loan portfolio increased by $832 million, in average, reflecting increases across all major loan segments except mortgages. Furthermore, one more day in the quarter resulted in approximately $3.7 million increase in interest income from loans;
• higher interest income from commercial loans by $22.2 million due to higher average volume of loans by $523 million and higher yield by 36 basis points due to the higher rate environment. Both BPPR and PB experienced growth in commercial loans; and
• higher interest income from consumer loans, mainly driven by higher average volume by $227 million mainly at BPPR, and increase in the yield of the portfolio by 16 basis points;

partially offset by:

• higher interest expense on deposits by $33.1 million due to the increase in rates, mainly from Puerto Rico government deposits and commercial deposits

Net interest income for the BPPR segment amounted to $488.1 million for the third quarter of 2022, compared to $447.8 million in the second quarter of 2022. Net interest margin for the third and second quarters of 2022 was 3.27% and 3.02%, respectively, an improvement of 25 basis points quarter-over-quarter. As discussed above, the net interest margin was impacted by higher volume and yield on investments and loans, partially offset by higher cost of deposits. The cost of interest-bearing deposits was 0.45%, compared to 0.19% in the second quarter of year, led mainly by repricing of public funds and corporate clients. Total deposit cost for the quarter also increased by 20 basis points from 0.14% to 0.34%.

Net interest income for PB was $98.9 million for the quarter ended September 30, 2022, compared to $93.4 million during the previous quarter. Net interest margin for the quarter was 3.84%, an increase of 8 basis points from the 3.76% reported in the second quarter. The increase in net interest income results mostly from a higher volume and yield on commercial loans, partially offset by higher costs on deposit driven by the change in interest rate environment. The cost of interest-bearing deposits was 0.85%, increasing 31 basis points from the 0.54% reported in the second quarter of 2022, while the total cost of deposits, including demand deposits, was 0.67%, an increase of 25 basis points when compared to 0.42% in the previous quarter.

Non-interest income

Non-interest income amounted to $426.5 million for the third quarter of 2022, an increase of $269.1 million compared to $157.4 million in the previous quarter. The results for the third quarter of 2022 included the gain from the Evertec Transactions and the related final equity investment accounting of Popular’s equity investment in Evertec of $257.7 million. Other factors that contributed to the variance in non-interest income were:

• higher other service fees by $5.0 million due to higher merchant acquiring fees by $3.3 million related to the revenue sharing agreement entered into in connection with the Evertec Transactions and higher insurance commission fees, including contingent payments of approximately $500 thousand received during the quarter;
• lower unrealized losses by $2.7 million on the portfolio of equity securities related to benefit plans, which have an offsetting effect as higher personnel costs;
• a favorable adjustment of $9.2 million in the fair value of the contingent consideration related to purchase price adjustments for the acquisition of the K2 Capital Group LLC business in 2021 (‘’K2 Acquisition’’), as the Corporation updated its estimates related to the realizability of the earnings targets for the contingent payment; and
• higher earnings from the portfolio of equity method investments by $2.5 million, excluding Evertec;

partially offset by:

• lower service charges on deposit accounts by $1.8 million due to lower returned ACH fees and the Corporation’s initiative of eliminating insufficient funds fees and modifying overdraft fees during the quarter; and
• lower mortgage banking activities by $4.1 million due to a negative variance in the valuation of mortgage servicing rights by $2.8 million and a negative variance of $2.7 million in realized losses in closed derivative positions.

Refer to Table B for further details.

Operating expenses

Operating expenses for the third quarter of 2022 totaled $476.1 million, an increase of $69.8 million, including a $17.3 million charge in connection with the Evertec Transactions and a $9.0 million impairment of goodwill related to the 2021 K2 Acquisition, when compared to the second quarter of 2022. The variance in operating expenses was driven primarily by:

• higher personnel cost by $25.1 million mainly due to higher salaries as a result of market adjustments and annual salary revisions effective in July 2022. The remaining increase in personnel costs is mainly related to an increase in medical insurance premiums, and higher incentives related to the profit-sharing and other incentive plans that are tied to the Corporation’s financial performance;
• higher other professional fees by $11.8 mainly due to higher advisory expense related to corporate initiatives;
• higher business promotion expenses by $3.0 million mainly due to donations, including hurricane related donations, and promotional events during the quarter;
• lower other real estate owned (OREO) income by $5.4 million mainly due to lower gain on sale of mortgage and commercial properties;
• higher credit and debit card processing, volume, interchange and other expenses by $3.4 million mainly due to lower volume incentives;
• higher other operating expenses by $23.4 million, mainly due to higher legal reserves and the $17.3 million expense related to the Evertec Transactions, net of the $6.9 million in credits received in connection with this transaction; and
• a goodwill impairment charge of $9.0 million due to a decrease in Popular Equipment Finance’s (PEF) projected earnings considered as part of the Corporation’s annual goodwill impairment analysis.

partially offset by:

• lower programming, processing, and other technology services by $13.9 million due to lower application hosting, IT consulting and related expenses and lower merchant processing fees reflecting savings as a result of the Evertec Transactions.

The Corporation is in the process of completing its annual goodwill impairment test, using July 31, 2022 as the evaluation date. The Corporation expects to complete its evaluation prior to the filing of its Form 10-Q for the quarter ended September 30, 2022 with the Securities and Exchange Commission. Any further impairment of goodwill would result in a non-cash expense, net of tax impact. A charge to earnings related to a goodwill impairment would not impact regulatory capital calculations.

Full-time equivalent employees were 8,747 as of September 30, 2022, including 77 employees related to the Evertec Business Acquisition Transaction, compared to 8,615 as of June 30, 2022.

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

Income taxes

For the quarter ended September 30, 2022, the Corporation recorded an income tax expense of $68.0 million, compared to $64.2 million for the previous quarter. The increase in income tax expense was mainly attributable to higher income before tax. The effective tax rate (“ETR”) for the third quarter of 2022 was 14%, compared to 23% for the previous quarter. The ETR of the Corporation is impacted by the composition and source of its taxable income. The reduction in the ETR for the third quarter is mainly attributed to the gain from the Evertec Transactions, which is subject to a preferential tax rate. The Corporation expects its ETR for the year 2022 to be within a range from 17% to 20%.

Credit Quality

During the third quarter of 2022, the Corporation showed stable credit quality trends with low levels of NCOs and decreasing NPLs. We continue to closely monitor changes in the macroeconomic environment and on borrower performance, given inflationary pressures and geopolitical uncertainty. However, management continues to believe that the improvement over recent years in the risk profile of the Corporation’s loan portfolios positions Popular to operate successfully under the current environment. The impact of Hurricanes Fiona and Ian is still being evaluated but given Fiona’s limited impact in the markets that Popular does business and low levels of assistance requests received to date, the effect on credit risk should not be significant.

The following presents credit quality results for the third quarter of 2022:

• At September 30, 2022, total non-performing loans held-in-portfolio decreased by $24.5 million from June 30, 2022. BPPR’s NPLs decreased by $34.6 million, mostly driven by lower mortgage and commercial NPLs by $31.9 million and $9.0 million, respectively, in part offset by higher auto loans NPLs by $6.4 million. The mortgage NPLs decrease was mainly due to the combined effects of collection efforts, increased foreclosure activity and sustained low levels of early delinquency compared with pre-pandemic trends. PB’s NPLs increased by $10.1 million quarter-over-quarter, solely due to a $10.6 million commercial borrower within the healthcare industry that was placed in non-accrual status during the quarter due to financial distress. At September 30, 2022, the ratio of NPLs to total loans held-in-portfolio was 1.4%, compared to 1.6% in the second quarter of 2022.
• Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $5.5 million quarter-over-quarter. In BPPR, total inflows decreased by $3.1 million, mostly driven by lower mortgage inflows of $7.3 million, in part offset by higher commercial inflows by $4.2 million. Mortgage inflows continued trending lower than pre-pandemic levels. NPL inflows at PB increased by $8.5 million quarter-over-quarter, mainly driven the abovementioned commercial healthcare NPL.
• NCOs amounted to $18.2 million, an unfavorable variance of $12.2 million when compared to the second quarter of 2022. BPPR’s NCOs reflected an unfavorable variance of $13.1 million, mainly related to higher consumer, commercial and mortgage NCOs by $7.5 million, $2.3 million, and $2.3 million, respectively. The commercial NCOs was mainly driven by a $4.5 million previously reserved relationship charged-off in September partially offset by higher recoveries. PB’s NCOs remained essentially flat quarter-over-quarter. During the third quarter of 2022, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.24%, compared to 0.08% in the second quarter of 2022. Refer to Table M for further information on net charge-offs and related ratios.
• At September 30, 2022, the ACL increased by $21.3 million, or 3.1%, from the second quarter of 2022 to $703.1 million. The ACL incorporated updated macroeconomic scenarios for Puerto Rico and the United States. Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The baseline scenario continues to be assigned the highest probability, followed by the pessimistic scenario. The Corporation evaluates, at least on an annual basis, the assumptions tied to the CECL accounting framework. These include the reasonable and supportable period as well as the reversion window. This quarter, as part of its evaluation procedures, the Corporation decided to extend the reversion window from 1 year to 3 years. This change in assumptions contributed to a reduction of $11 million in the ACL. The reasonable and supportable period assumptions remained unchanged.
• The baseline scenario assumes an annualized 2022 GDP growth of 3.1% and 1.6% for Puerto Rico and United States, respectively, compared to 2.8% for both regions in the previous quarter. The improvement in P.R.’s GDP was mainly due to updated fiscal assumptions, which include the potential impact of the Inflation Reduction Act. As for the U.S., the reduction in GDP growth was driven by updated data for the second quarter of 2022, which reflected two consecutive quarters of GDP decline. 2023 annualized GDP growth for P.R. and U.S. of 2.2% and 1.5%, respectively, compared to 2.7% for both regions in the previous quarter. The reduction in 2023 is in part due to tight monetary policy, weaker job growth and persistent inflation.
• The 2022 average unemployment rate remained largely consistent QoQ forecasted at 6.6% and 3.6% for Puerto Rico and United States, respectively, compared to 6.9% and 3.5%, respectively, in the previous forecast. For 2023 the forecasted average unemployment rate for P.R. and U.S. is 7.8% and 3.9%, slightly higher than previous quarter’s 7.6% and 3.4% for P.R. and U.S., respectively.
• In BPPR, the ACL increased by $10.4 million, mostly driven by higher loan volumes and changes in credit quality. The ACL for the PB segment increased by $11.0 million quarter-over-quarter, mainly driven by an $8.4 million reserve recorded for the abovementioned commercial healthcare NPL. The Corporation’s ratio of the allowance for credit losses to loans held-in-portfolio was 2.23% in the third quarter of 2022, compared to 2.24% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 155.1%, compared to 142.7% in the previous quarter.
• The provision for credit losses for the loan portfolios for the third quarter of 2022 was an expense of $39.5 million, compared to an expense of $9.9 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was an expense of $28.7 million, compared to an expense of $9.1 million in the previous quarter, while the provision for the PB segment was an expense of $10.8 million, compared to an expense of $0.7 million in the previous quarter.
• The provision for unfunded commitments for the third quarter of 2022 was an expense of $0.4 million, compared to a benefit of $0.2 million in the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $0.3 million, flat quarter-over-quarter. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations.

Non-Performing Assets
(Unaudited)
(In thousands)	30-Sep-22		30-Jun-22		30-Sep-21
Non-performing loans held-in-portfolio	$453,419		$477,924		$632,835
Other real estate owned (“OREO”)	93,239		92,137		76,828
Total non-performing assets	$546,658		$570,061		$709,663
Net charge-offs (recoveries) for the quarter	$18,232		$6,073		$8,823
Ratios:
Loans held-in-portfolio	$31,523,188		$30,370,936		$28,855,372
Non-performing loans held-in-portfolio to loans held-in-portfolio	1.44%		1.57%		2.19%
Allowance for credit losses to loans held-in-portfolio	2.23		2.24		2.49
Allowance for credit losses to non-performing loans, excluding loans held-for-sale	155.07		142.65		113.55
Refer to Table K for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios
(Unaudited)		Quarters ended							Nine months ended
(In thousands)		30-Sep-22		30-Jun-22		30-Sep-21			30-Sep-22	30-Sep-21
Provision for credit losses (benefit) - loan portfolios:
BPPR		$28,694		$9,128		$(35,992	)		$25,161	$(98,456	)
Popular U.S.		10,825		733		(22,653	)		9,814	(53,468	)
Total provision for credit losses (benefit) - loan portfolios		$39,519		$9,861		$(58,645	)		$34,975	$(151,924	)

Credit Quality by Segment
(Unaudited)
(In thousands)	Quarters ended
BPPR		30-Sep-22			30-Jun-22			30-Sep-21
Provision for credit losses (benefit) - loan portfolios		$28,694			$9,128			$(35,992	)
Net charge-offs (recoveries)		18,396			5,332			9,336
Total non-performing loans held-in-portfolio		410,215			444,831			608,871
Allowance / loans held-in-portfolio		2.65	%		2.70	%		2.92	%
Allowance / non-performing loans held-in-portfolio		144.05	%		130.52	%		101.30	%
	Quarters ended
Popular U.S.		30-Sep-22			30-Jun-22			30-Sep-21
Provision for credit losses (benefit) - loan portfolios		$10,825			$733			$(22,653	)
Net charge-offs (recoveries)		(164	)		741			(513	)
Total non-performing loans held-in-portfolio		43,204			33,093			23,964
Allowance / loans held-in-portfolio		1.21	%		1.14	%		1.32	%
Allowance / non-performing loans held-in-portfolio		259.61	%		305.72	%		424.79	%

Financial Condition Highlights
(Unaudited)
(In thousands)			30-Sep-22		30-Jun-22		30-Sep-21
Cash and money market investments			$5,992,360		$10,215,946		$18,065,211
Investment securities			30,434,052		28,138,453		24,697,876
Loans			31,523,188		30,370,936		28,855,372
Total assets			70,729,675		71,501,931		74,189,163
Deposits			64,819,327		65,327,664		66,013,561
Borrowings			1,300,984		959,135		1,263,413
Total liabilities			67,054,837		67,208,582		68,206,192
Stockholders’ equity			3,674,838		4,293,349		5,982,971

Total assets amounted to $70.7 billion at September 30, 2022, a decrease of $0.8 billion from the second quarter of 2022, driven by:

• A decrease in aggregated cash and money market investments of $4.2 billion due in part to a decrease in deposit balances and the purchase of investment securities and growth in loan portfolios;

partially offset by:

• an increase in debt securities available-for-sale of $2.0 billion. The increase is driven by purchases of 3-month maturity U.S. Treasury securities that currently provide a higher tax-effected yield than overnight fed funds, offset by maturities and paydowns;
• an increase in debt securities held-to-maturity of $290.0 million due to the purchase of U.S. Treasury securities offset by maturities and paydowns; and
• an increase in loans held-in-portfolio of $1.2 billion across all loan categories. The increase was mainly due to commercial loans growth at both BPPR and PB and an increase in consumer loans, mainly at BPPR, including auto loans, credit cards and other consumer loans. BPPR’s commercial loan growth included U.S. region loans of $53.7 million participated between BPPR and PB;
• an increase of $107.1 million in goodwill due to the $116.1 million recorded in connection with the Evertec Business Acquisition Transaction, offset by the impairment of $9.0 million related to the K2 Acquisition.

Total liabilities decreased by $0.2 billion from the second quarter of 2022, driven by:

• a decrease of $0.5 billion in deposits, mainly in Puerto Rico related to time deposits managed through the Corporation’s Fiduciary Services Division, offset by an increase in public sector accounts;

partially offset by:

• an increase in borrowings of $341.5 million, mainly due to advances from the FHLB at PB.

Stockholders' equity decreased by $618.5 million from the second quarter of 2022, principally due to an increase in accumulated unrealized losses on debt securities available-for-sale by $781.9 million due to a decline in the fair value of fixed-rate debt securities as a result of the rising interest rate environment, the net effect of $231 million related to the accelerated share repurchase agreement entered into during August 2022 and to dividends, partially offset by the net income of $422.4 million for the quarter.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.04%, $50.26 and $38.69, respectively, at September 30, 2022, compared to 16.39%, $55.78 and $46.18 at June 30, 2022. 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 regarding Popular’s acquisition of certain assets and assumption of certain liabilities from Evertec and the transactions described in this press release (the “Transaction”) and Popular’s business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings, new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic (including the appearance of new strains of the virus), actions taken by governmental authorities in response thereto, and the direct and indirect impact of the pandemic on Popular, our customers, service providers and third parties. Other factors include Popular’s ability to successfully transition and integrate the assets acquired as part of the Transaction, related operations, employees and third party contractors; unexpected costs, including, without limitation, costs due to exposure to any unrecorded liabilities or issues not identified during due diligence investigation of the Transaction or that are not subject to indemnification or reimbursement by Evertec; operational risks that may affect Popular and other risks arising from the acquisition of the acquired assets or by adverse effects on relationships with customers, employees and service providers and business and other risks arising from the extension of Popular’s current commercial agreements with Evertec. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions, and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, are generally intended to identify forward-looking statements.

More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Annual Report on Form 10-K for the year ended December 31, 2021, in our Form 10-Q for the quarters ended March 31, 2022 and June 30, 2022 and in our Form 10-Q for the quarter ended September 30, 2022 to be filed with the Securities and Exchange Commission. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.

About Popular, Inc.

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

Conference Call

Popular will hold a conference call to discuss its financial results today Wednesday, October 26, 2022 at 11:00 a.m. Eastern Time. The call will be broadcast live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 1-844-200-6205 (Toll Free) or 1-646-904-5544 (Local). The dial-in access code is 775117.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Thursday, November 24, 2022. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 982947.

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

Popular, Inc.

Financial Supplement to Third Quarter 2022 Earnings Release

Table A - Selected Ratios and Other Information

Table B - Consolidated Statement of Operations

Table C - Consolidated Statement of Financial Condition

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

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

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 Third Quarter 2022 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
	Quarters ended			Nine months ended
	30-Sep-22	30-Jun-22	30-Sep-21	30-Sep-22	30-Sep-21
Basic EPS	$5.71	$2.77	$3.09	$11.09	$8.89
Diluted EPS	$5.70	$2.77	$3.09	$11.07	$8.87
Average common shares outstanding	73,955,184	76,171,784	80,126,166	76,173,783	81,864,634
Average common shares outstanding - assuming dilution	74,057,332	76,286,883	80,274,942	76,304,219	82,014,113
Common shares outstanding at end of period	72,673,344	76,576,397	79,841,564	72,673,344	79,841,564
Market value per common share	$72.06	$76.93	$77.67	$72.06	$77.67
Market capitalization - (In millions)	$5,237	$5,891	$6,201	$5,237	$6,201
Return on average assets	2.31%	1.17%	1.34%	1.54%	1.39%
Return on average common equity	27.72%	14.58%	17.10%	19.02%	17.09%
Net interest margin (non-taxable equivalent basis)	3.32%	3.09%	2.77%	3.05%	2.92%
Net interest margin (taxable equivalent basis) -non-GAAP	3.71%	3.45%	3.04%	3.39%	3.23%
Common equity per share	$50.26	$55.78	$74.66	$50.26	$74.66
Tangible common book value per common share (non-GAAP) [1]	$38.69	$46.18	$66.01	$38.69	$66.01
Tangible common equity to tangible assets (non-GAAP) [1]	4.02%	5.00%	7.17%	4.02%	7.17%
Return on average tangible common equity [1]	31.86%	16.70%	19.44%	21.78%	19.46%
Tier 1 capital	16.10%	16.46%	17.43%	16.10%	17.43%
Total capital	17.92%	18.29%	19.90%	17.92%	19.90%
Tier 1 leverage	7.65%	7.56%	7.38%	7.65%	7.38%
Common Equity Tier 1 capital	16.04%	16.39%	17.36%	16.04%	17.36%
[1] Refer to Table Q for reconciliation to GAAP financial measures.

POPULAR, INC.
Financial Supplement to Third Quarter 2022 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
		Quarters ended				Variance		Quarter ended		Variance		Nine months ended
						Q3 2022				Q3 2022
(In thousands, except per share information)		30-Sep-22		30-Jun-22		vs. Q2 2022		30-Sep-21		vs. Q3 2021		30-Sep-22		30-Sep-21
Interest income:
	Loans	$481,088		$446,245		$34,843		$435,296		$45,792		$1,354,124		$1,303,726
	Money market investments	36,966		23,742		13,224		6,914		30,052		67,172		14,300
	Investment securities	133,181		101,774		31,407		87,952		45,229		331,421		265,348
	Total interest income	651,235		571,761		79,474		530,162		121,073		1,752,717		1,583,374
Interest expense:
	Deposits	60,897		27,827		33,070		27,029		33,868		113,507		85,290
	Short-term borrowings	921		248		673		54		867		1,249		259
	Long-term debt	9,798		9,824		(26	)	13,686		(3,888	)	30,168		41,518
	Total interest expense	71,616		37,899		33,717		40,769		30,847		144,924		127,067
Net interest income		579,619		533,862		45,757		489,393		90,226		1,607,793		1,456,307
Provision for credit losses (benefit)		39,637		9,362		30,275		(61,173	)	100,810		33,499		(160,414	)
Net interest income after provision for credit losses (benefit)		539,982		524,500		15,482		550,566		(10,584	)	1,574,294		1,616,721
Service charges on deposit accounts		40,006		41,809		(1,803	)	41,312		(1,306	)	122,528		121,085
Other service fees		86,402		81,451		4,951		80,445		5,957		244,987		227,455
Mortgage banking activities		9,448		13,575		(4,127	)	8,307		1,141		35,888		33,098
Net gain on sale of debt securities		-		-		-		23		(23	)	-		23
Net (loss) gain, including impairment, on equity securities		(1,448	)	(4,109	)	2,661		(401	)	(1,047	)	(7,651	)	1,585
Net (loss) gain on trading account debt securities		(274	)	51		(325	)	58		(332	)	(946	)	(34	)
Net loss on sale of loans, including valuation adjustments on loans held-for-sale		-		-		-		-		-		-		(73	)
Adjustments to indemnity reserves on loans sold		1,715		170		1,545		2,038		(323	)	1,140		3,008
Other operating income		290,645		24,464		266,181		37,476		253,169		342,651		91,304
	Total non-interest income	426,494		157,411		269,083		169,258		257,236		738,597		477,451
Operating expenses:
Personnel costs
	Salaries	115,887		101,847		14,040		95,185		20,702		316,407		274,814
	Commissions, incentives and other bonuses	32,003		29,787		2,216		25,892		6,111		93,129		85,484
	Pension, postretirement and medical insurance	17,120		13,730		3,390		13,893		3,227		43,633		38,106
	Other personnel costs, including payroll taxes	28,833		23,424		5,409		22,677		6,156		76,458		72,926
	Total personnel costs	193,843		168,788		25,055		157,647		36,196		529,627		471,330
Net occupancy expenses		27,420		26,214		1,206		24,896		2,524		78,357		75,471
Equipment expenses		26,626		25,088		1,538		22,537		4,089		75,193		66,917
Other taxes		15,966		15,780		186		14,459		1,507		47,461		41,623
Professional fees
	Collections, appraisals and other credit related fees	2,527		2,802		(275	)	3,166		(639	)	7,555		9,972
	Programming, processing and other technology services	59,431		73,305		(13,874	)	69,221		(9,790	)	202,110		202,739
	Legal fees, excluding collections	2,830		3,091		(261	)	2,535		295		9,875		7,267
	Other professional fees	47,433		35,674		11,759		29,787		17,646		116,050		85,832
	Total professional fees	112,221		114,872		(2,651	)	104,709		7,512		335,590		305,810
Communications		6,224		5,993		231		6,133		91		18,364		18,971
Business promotion		24,348		21,353		2,995		18,116		6,232		60,784		47,148
FDIC deposit insurance		6,610		6,463		147		7,181		(571	)	20,445		18,891
Other real estate owned (OREO) income		(2,444	)	(7,806	)	5,362		(1,722	)	(722	)	(12,963	)	(10,554	)
Credit and debit card processing, volume, interchange and other expenses		14,762		11,375		3,387		12,960		1,802		38,646		36,331
Other operating expenses
	Operational losses	7,145		4,061		3,084		7,147		(2	)	23,031		21,571
	All other	33,579		13,302		20,277		13,322		20,257		58,696		35,283
	Total other operating expenses	40,724		17,363		23,361		20,469		20,255		81,727		56,854
Amortization of intangibles		795		795		-		783		12		2,481		3,089
Goodwill impairment charge		9,000		-		9,000		-		9,000		9,000		-
	Total operating expenses	476,095		406,278		69,817		388,168		87,927		1,284,712		1,131,881
Income before income tax		490,381		275,633		214,748		331,656		158,725		1,028,179		962,291
Income tax expense		67,986		64,212		3,774		83,542		(15,556	)	182,677		233,466
Net income		$422,395		$211,421		$210,974		$248,114		$174,281		$845,502		$728,825
Net income applicable to common stock		$422,042		$211,068		$210,974		$247,761		$174,281		$844,443		$727,766
Net income per common share - basic		$5.71		$2.77		$2.94		$3.09		$2.62		$11.09		$8.89
Net income per common share - diluted		$5.70		$2.77		$2.93		$3.09		$2.61		$11.07		$8.87
Dividends Declared per Common Share		$0.55		$0.55		$-		$0.45		$0.10		$1.65		$1.30

Popular, Inc.
Financial Supplement to Third Quarter 2022 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
									Variance
									Q3 2022 vs.
(In thousands)			30-Sep-22		30-Jun-22		30-Sep-21		Q2 2022
Assets:
Cash and due from banks			$2,017,312		$528,590		$538,973		$1,488,722
Money market investments			3,975,048		9,687,356		17,526,238		(5,712,308	)
Trading account debt securities, at fair value			30,271		32,317		36,064		(2,046	)
Debt securities available-for-sale, at fair value			28,264,148		26,266,251		24,391,226		1,997,897
Debt securities held-to-maturity, at amortized cost			1,953,710		1,664,015		85,655		289,695
		Less: Allowance for credit losses	7,210		7,495		9,222		(285	)
		Total debt securities held-to-maturity, net	1,946,500		1,656,520		76,433		289,980
Equity securities			185,923		175,870		184,931		10,053
Loans held-for-sale, at lower of cost or fair value			8,065		28,546		91,313		(20,481	)
Loans held-in-portfolio			31,805,921		30,643,443		29,089,241		1,162,478
		Less: Unearned income	282,733		272,507		233,869		10,226
		Allowance for credit losses	703,096		681,750		718,575		21,346
		Total loans held-in-portfolio, net	30,820,092		29,689,186		28,136,797		1,130,906
Premises and equipment, net			492,685		490,152		487,526		2,533
Other real estate			93,239		92,137		76,828		1,102
Accrued income receivable			224,307		216,780		200,649		7,527
Mortgage servicing rights, at fair value			130,541		129,877		116,567		664
Other assets			1,700,378		1,773,523		1,634,839		(73,145	)
Goodwill			827,428		720,293		671,122		107,135
Other intangible assets			13,738		14,533		19,657		(795	)
Total assets			$70,729,675		$71,501,931		$74,189,163		$(772,256	)
Liabilities and Stockholders’ Equity:
Liabilities:
	Deposits:
		Non-interest bearing	$17,605,339		$16,663,259		$15,147,567		$942,080
		Interest bearing	47,213,988		48,664,405		50,865,994		(1,450,417	)
		Total deposits	64,819,327		65,327,664		66,013,561		(508,337	)
Assets sold under agreements to repurchase			162,450		70,925		86,470		91,525
Other short-term borrowings			250,000		-		-		250,000
Notes payable			888,534		888,210		1,176,943		324
Other liabilities			934,526		921,783		929,218		12,743
Total liabilities			67,054,837		67,208,582		68,206,192		(153,745	)
Stockholders’ equity:
Preferred stock			22,143		22,143		22,143		-
Common stock			1,046		1,046		1,046		-
Surplus			4,652,508		4,576,478		4,569,641		76,030
Retained earnings			3,694,020		3,311,951		2,882,340		382,069
Treasury stock			(1,970,548	)	(1,665,253	)	(1,352,104	)	(305,295	)
Accumulated other comprehensive loss, net of tax			(2,724,331	)	(1,953,016	)	(140,095	)	(771,315	)
		Total stockholders’ equity	3,674,838		4,293,349		5,982,971		(618,511	)
Total liabilities and stockholders’ equity			$70,729,675		$71,501,931		$74,189,163		$(772,256	)

Popular, Inc.
Financial Supplement to Third Quarter 2022 Earnings Release
Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER
(Unaudited)
			Quarters ended															Variance
			30-Sep-22					30-Jun-22					30-Sep-21					Q3 2022 vs. Q2 2022							Q3 2022 vs. Q3 2021
($ amounts in millions)			Average balance		Income / Expense	Yield / Rate		Average balance		Income / Expense	Yield / Rate		Average balance		Income / Expense	Yield / Rate		Average balance		Income / Expense		Yield / Rate			Average balance		Income / Expense		Yield / Rate
Assets:
Interest earning assets:
		Money market investments	6,721		37.0	2.18	%	11,513		23.7	0.83	%	18,041		6.9	0.15	%	(4,792	)	13.3		1.35		%	(11,320	)	30.1		2.03		%
		Investment securities	31,859		186.8	2.33	%	27,748		150.9	2.18	%	23,154		121.9	2.10	%	4,111		35.9		0.15		%	8,705		64.9		0.23		%
		Trading securities	40		0.6	6.09	%	65		1.1	6.66	%	84		1.0	4.97	%	(25	)	(0.5	)	(0.57	)	%	(44	)	(0.4	)	1.12		%
	Total money market, investment and trading securities		$38,620		$224.4	2.31	%	$39,326		$175.7	1.79	%	$41,279		$129.8	1.25	%	($706	)	$48.7		0.52		%	($2,659	)	$94.6		1.06		%
	Loans:
		Commercial	14,750		205.2	5.52		14,227		183.0	5.16		13,265		179.2	5.36		523		22.2		0.36			1,485		26.0		0.16
		Construction	835		13.4	6.38		781		11.1	5.71		854		11.6	5.40		54		2.3		0.67			(19	)	1.8		0.98
		Mortgage	7,264		98.4	5.42		7,294		97.1	5.33		7,652		97.8	5.11		(30	)	1.3		0.09			(388	)	0.6		0.31
		Consumer	2,818		83.4	11.74		2,654		75.0	11.33		2,435		67.7	11.03		164		8.4		0.41			383		15.7		0.71
		Auto	3,562		71.2	7.93		3,499		70.1	8.04		3,372		71.2	8.37		63		1.1		(0.11	)		190		-		(0.44	)
		Lease financing	1,503		22.2	5.90		1,445		21.4	5.91		1,317		19.7	5.99		58		0.8		(0.01	)		186		2.5		(0.09	)
	Total loans		30,732		493.8	6.39		29,900		457.7	6.14		28,895		447.2	6.15		832		36.1		0.25			1,837		46.6		0.24
	Total interest earning assets		$69,352		$718.2	4.12	%	$69,226		$633.4	3.67	%	$70,174		$577.0	3.27	%	$126		$84.8		0.45		%	$(822	)	$141.2		0.85		%
		Allowance for credit losses - loan portfolio	(691	)				(682	)				(778	)				(9	)						87
		Allowance for credit losses - investment securities	(7	)				(8	)				(10	)				1							3
		Other non-interest earning assets	3,822					3,787					3,901					35							(79	)
	Total average assets		$72,476					$72,323					$73,287					$153							$(811	)
Liabilities and Stockholders' Equity:
	Interest bearing deposits:
		NOW and money market	$25,993		$36.4	0.56	%	$24,897		$8.3	0.13	%	$27,773		$7.9	0.11	%	$1,096		$28.1		0.43		%	$(1,780	)	$28.5		0.45		%
		Savings	15,514		8.0	0.20		16,363		6.9	0.17		15,621		6.4	0.16		(849	)	1.1		0.03			(107	)	1.6		0.04
		Time deposits	6,957		16.5	0.94		7,044		12.6	0.72		6,957		12.7	0.73		(87	)	3.9		0.22			-		3.8		0.21
		Total interest-bearing deposits	48,464		60.9	0.50		48,304		27.8	0.23		50,351		27.0	0.21		160		33.1		0.27			(1,887	)	33.9		0.29
	Borrowings		1,068		10.7	4.01		1,043		10.1	3.87		1,284		13.7	4.28		25		0.6		0.14			(216	)	(3.0	)	(0.27	)
		Total interest-bearing liabilities	49,532		71.6	0.57		49,347		37.9	0.31		51,635		40.7	0.31		185		33.7		0.26			(2,103	)	30.9		0.26
		Net interest spread				3.55	%				3.36	%				2.96	%					0.19		%					0.59		%
	Non-interest bearing deposits		15,872					16,254					14,955					(382	)						917
	Other liabilities		1,010					894					927					116							83
	Stockholders' equity		6,062					5,828					5,770					234							292
		Total average liabilities and stockholders' equity	$72,476					$72,323					$73,287					$153							$(811	)
Net interest income / margin on a taxable equivalent basis (Non-GAAP)					$646.6	3.71	%			$595.5	3.45	%			$536.3	3.04	%			$51.1		0.26		%			$110.3		0.67		%
Taxable equivalent adjustment					67.0					61.6					46.9					5.4							20.1
Net interest income / margin non-taxable equivalent basis (GAAP)					$579.6	3.32	%			$533.9	3.09	%			$489.4	2.77	%			$45.7		0.23		%			$90.2		0.55		%

Popular, Inc.
Financial Supplement to Third Quarter 2022 Earnings Release
Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE
(Unaudited)
			Nine months ended
			30-Sep-22					30-Sep-21					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 investments	10,969		67.2	0.82	%	15,364		14.3	0.12	%	(4,395	)	52.9		0.70		%
		Investment securities	29,371		475.1	2.16	%	22,302		382.3	2.29	%	7,069		92.8		(0.13	)	%
		Trading securities	59		2.7	6.23	%	85		3.2	5.06	%	(26	)	(0.5	)	1.17		%
	Total money market, investment and trading securities		$40,399		$545.0	1.80	%	$37,751		$399.8	1.42	%	$2,648		$145.2		0.38		%
	Loans:
		Commercial	14,245		560.4	5.26		13,475		535.1	5.32		770		25.3		(0.06	)
		Construction	782		34.3	5.87		874		35.1	5.39		(92	)	(0.8	)	0.48
		Mortgage	7,315		292.3	5.33		7,761		295.6	5.08		(446	)	(3.3	)	0.25
		Consumer	2,670		228.4	11.44		2,460		206.9	11.24		210		21.5		0.20
		Auto	3,507		210.6	8.03		3,285		209.5	8.55		222		1.1		(0.52	)
		Lease financing	1,447		64.2	5.92		1,265		57.1	6.01		182		7.1		(0.09	)
	Total loans		29,966		1,390.2	6.20		29,120		1,339.3	6.16		846		50.9		0.04
	Total interest earning assets		$70,365		$1,935.2	3.67	%	$66,871		$1,739.1	3.48	%	$3,494		$196.1		0.19		%
		Allowance for credit losses - loan portfolio	(689	)				(822	)				133
		Allowance for credit losses - investment securities	(8	)				(10	)				2
		Other non-interest earning assets	3,789					3,900					(111	)
	Total average assets		$73,457					$69,939					$3,518
Liabilities and Stockholders' Equity:
	Interest bearing deposits:
		NOW and money market	$26,385		$52.1	0.26	%	$25,201		$24.2	0.13	%	$1,184		$27.9		0.13		%
		Savings	16,101		21.4	0.18		15,127		20.3	0.18		974		1.1		-
		Time deposits	6,913		40.0	0.77		7,108		40.8	0.77		(195	)	(0.8	)	-
		Total interest-bearing deposits	49,399		113.5	0.31		47,436		85.3	0.24		1,963		28.2		0.07
	Borrowings		1,072		31.4	3.92		1,315		41.8	4.25		(243	)	(10.4	)	(0.33	)
		Total interest-bearing liabilities	50,471		144.9	0.38		48,751		127.1	0.35		1,720		17.8		0.03
		Net interest spread				3.29	%				3.13	%					0.16		%
	Non-interest bearing deposits		16,088					14,428					1,660
	Other liabilities		940					1,044					(104	)
	Stockholders' equity		5,958					5,716					242
		Total average liabilities and stockholders' equity	$73,457					$69,939					$3,518
Net interest income / margin on a taxable equivalent basis (Non-GAAP)					$1,790.3	3.39	%			$1,612.0	3.23	%			$178.3		0.16		%
Taxable equivalent adjustment					182.5					155.7					26.8
Net interest income / margin non-taxable equivalent basis (GAAP)					$1,607.8	3.05	%			$1,456.3	2.92	%			$151.5		0.13		%

Popular, Inc.
Financial Supplement to Third Quarter 2022 Earnings Release
Table F - Mortgage Banking Activities and Other Service Fees
(Unaudited)
Mortgage Banking Activities
		Quarters ended						Variance				Nine months ended				Variance
(In thousands)		30-Sep-22		30-Jun-22		30-Sep-21		Q3 2022 vs.Q2 2022		Q3 2022 vs.Q3 2021		30-Sep-22		30-Sep-21		2022 vs. 2021
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$9,126		$9,186		$9,376		$(60	)	$(250	)	$27,635		$28,613		$(978	)
	Mortgage servicing rights fair value adjustments	(499	)	2,257		(5,979	)	(2,756	)	5,480		2,846		(11,706	)	14,552
Total mortgage servicing fees, net of fair value adjustments		8,627		11,443		3,397		(2,816	)	5,230		30,481		16,907		13,574
Net gain (loss) on sale of loans, including valuation on loans held-for-sale		1,124		36		6,084		1,088		(4,960	)	(374	)	16,256		(16,630	)
Trading account (loss) profit:
	Unrealized losses on outstanding derivative positions	-		(2	)	-		2		-		-		-		-
	Realized (losses) gains on closed derivative positions	(240	)	2,430		(1,004	)	(2,670	)	764		6,325		632		5,693
Total trading account (loss) profit		(240	)	2,428		(1,004	)	(2,668	)	764		6,325		632		5,693
Losses on repurchased loans, including interest advances		(63	)	(332	)	(170	)	269		107		(544	)	(697	)	153
Total mortgage banking activities		$9,448		$13,575		$8,307		$(4,127	)	$1,141		$35,888		$33,098		$2,790

Other Service Fees
			Quarters ended			Variance				Nine months ended		Variance
(In thousands)			30-Sep-22	30-Jun-22	30-Sep-21	Q3 2022 vs.Q2 2022		Q3 2022 vs.Q3 2021		30-Sep-22	30-Sep-21	2022 vs. 2021
Other service fees:
	Debit card fees		$12,133	$12,882	$12,210	$(749	)	$(77	)	$36,794	$36,245	$549
	Insurance fees		15,697	12,017	14,385	3,680		1,312		41,870	39,986	1,884
	Credit card fees		37,829	38,155	33,409	(326	)	4,420		109,626	94,826	14,800
	Sale and administration of investment products		5,952	6,017	6,216	(65	)	(264	)	17,760	17,726	34
	Trust fees		5,506	6,143	6,453	(637	)	(947	)	17,576	18,460	(884	)
	Other fees		9,285	6,237	7,772	3,048		1,513		21,361	20,212	1,149
Total other service fees			$86,402	$81,451	$80,445	$4,951		$5,957		$244,987	$227,455	$17,532

Popular, Inc.
Financial Supplement to Third Quarter 2022 Earnings Release
Table G - Loans and Deposits
(Unaudited)
Loans - Ending Balances
				Variance
(In thousands)	30-Sep-22	30-Jun-22	30-Sep-21	Q3 2022 vs.Q2 2022		Q3 2022 vs.Q3 2021
Loans held-in-portfolio:
Commercial	$15,366,859	$14,545,301	$13,303,671	$821,558		$2,063,188
Construction	816,290	790,920	801,040	25,370		15,250
Leasing	1,538,504	1,480,222	1,348,679	58,282		189,825
Mortgage	7,311,713	7,261,955	7,539,152	49,758		(227,439	)
Auto	3,528,904	3,489,976	3,376,694	38,928		152,210
Consumer	2,960,918	2,802,562	2,486,136	158,356		474,782
Total loans held-in-portfolio	$31,523,188	$30,370,936	$28,855,372	$1,152,252		$2,667,816
Loans held-for-sale:
Mortgage	8,065	28,546	91,313	(20,481	)	(83,248	)
Total loans held-for-sale	$8,065	$28,546	$91,313	$(20,481	)	$(83,248	)
Total loans	$31,531,253	$30,399,482	$28,946,685	$1,131,771		$2,584,568

Deposits - Ending Balances
				Variance
(In thousands)	30-Sep-22	30-Jun-22	30-Sep-21	Q3 2022 vs. Q2 2022		Q3 2022 vs.Q3 2021
Demand deposits [1]	$28,773,328	$27,798,243	$25,495,481	$975,085		$3,277,847
Savings, NOW and money market deposits (non-brokered)	28,388,057	29,672,655	32,867,805	(1,284,598	)	(4,479,748	)
Savings, NOW and money market deposits (brokered)	728,651	761,244	718,155	(32,593	)	10,496
Time deposits (non-brokered)	6,731,588	6,896,786	6,906,509	(165,198	)	(174,921	)
Time deposits (brokered CDs)	197,703	198,736	25,611	(1,033	)	172,092
Total deposits	$64,819,327	$65,327,664	$66,013,561	$(508,337	)	$(1,194,234	)
[1] Includes interest and non-interest bearing demand deposits.

Popular, Inc.
Financial Supplement to Third Quarter 2022 Earnings Release
Table H - Loan Delinquency - Puerto Rico Operations
(Unaudited)
30-Sep-22
Puerto Rico
				Past due																		Past due 90 days or more
			30-59			60-89			90 days			Total										Non-accrual				Accruing
(In thousands)			days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family			$	546		$	-		$	251		$	797		$	276,521		$	277,318			$	251		$	-
Commercial real estate:
	Non-owner occupied			3,005			789			21,443			25,237			2,820,803			2,846,040				21,443			-
	Owner occupied			10,992			7,834			28,379			47,205			1,540,932			1,588,137				28,379			-
Commercial and industrial				7,105			1,139			38,003			46,247			3,547,841			3,594,088				37,375			628
Construction				-			1,087			-			1,087			210,480			211,567				-			-
Mortgage				237,316			89,802			581,378			908,496			5,147,347			6,055,843				252,773			328,605
Leasing				14,487			2,740			5,697			22,924			1,515,580			1,538,504				5,697			-
Consumer:
	Credit cards			7,268			4,481			10,361			22,110			966,406			988,516				-			10,361
	Home equity lines of credit			-			-			-			-			2,957			2,957				-			-
	Personal			13,725			7,348			18,137			39,210			1,478,746			1,517,956				18,117			20
	Auto			71,230			21,852			34,432			127,514			3,401,390			3,528,904				34,432			-
	Other			708			768			12,025			13,501			124,950			138,451				11,748			277
Total			$	366,382		$	137,840		$	750,106		$	1,254,328		$	21,033,953		$	22,288,281			$	410,215		$	339,891
30-Jun-22
Puerto Rico
				Past due																		Past due 90 days or more
			30-59			60-89			90 days			Total										Non-accrual				Accruing
(In thousands)			days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family			$	1,992		$	-		$	254		$	2,246		$	234,308		$	236,554			$	254		$	-
Commercial real estate:
	Non-owner occupied			1,379			110			20,435			21,924			2,630,194			2,652,118				20,435			-
	Owner occupied			4,894			2,860			32,155			39,909			1,366,840			1,406,749				32,155			-
Commercial and industrial				2,534			1,526			44,176			48,236			3,472,447			3,520,683				43,649			527
Construction				498			-			-			498			161,864			162,362				-			-
Mortgage				211,483			82,898			681,757			976,138			5,065,785			6,041,923				284,670			397,087
Leasing				9,970			2,164			4,665			16,799			1,463,423			1,480,222				4,665			-
Consumer:
	Credit cards			5,785			4,142			8,896			18,823			947,876			966,699				-			8,896
	Home equity lines of credit			-			-			-			-			3,122			3,122				-			-
	Personal			11,216			6,043			19,045			36,304			1,351,796			1,388,100				19,045			-
	Auto			56,577			13,815			28,045			98,437			3,391,539			3,489,976				28,045			-
	Other			242			131			12,125			12,498			120,651			133,149				11,913			212
Total			$	306,570		$	113,689		$	851,553		$	1,271,812		$	20,209,845		$	21,481,657			$	444,831		$	406,722

Variance
				Past due																								Past due 90 days or more
			30-59				60-89				90 days				Total													Non-accrual					Accruing
(In thousands)			days				days				or more				past due				Current				Loans HIP					loans				loans
Commercial multi-family			$	(1,446	)		$	-			$	(3	)		$	(1,449	)		$	42,213			$	40,764				$	(3	)		$	-
Commercial real estate:
	Non-owner occupied			1,626				679				1,008				3,313				190,609				193,922					1,008				-
	Owner occupied			6,098				4,974				(3,776	)			7,296				174,092				181,388					(3,776	)			-
Commercial and industrial				4,571				(387	)			(6,173	)			(1,989	)			75,394				73,405					(6,274	)			101
Construction				(498	)			1,087				-				589				48,616				49,205					-				-
Mortgage				25,833				6,904				(100,379	)			(67,642	)			81,562				13,920					(31,897	)			(68,482	)
Leasing				4,517				576				1,032				6,125				52,157				58,282					1,032				-
Consumer:
	Credit cards			1,483				339				1,465				3,287				18,530				21,817					-				1,465
	Home equity lines of credit			-				-				-				-				(165	)			(165	)				-				-
	Personal			2,509				1,305				(908	)			2,906				126,950				129,856					(928	)			20
	Auto			14,653				8,037				6,387				29,077				9,851				38,928					6,387				-
	Other			466				637				(100	)			1,003				4,299				5,302					(165	)			65
Total			$	59,812			$	24,151			$	(101,447	)		$	(17,484	)		$	824,108			$	806,624				$	(34,616	)		$	(66,831	)

Popular, Inc.
Financial Supplement to Third Quarter 2022 Earnings Release
Table I - Loan Delinquency - Popular U.S. Operations
(Unaudited)
30-Sep-22
Popular U.S.
				Past due																		Past due 90 days or more
			30-59			60-89			90 days			Total										Non-accrual				Accruing
(In thousands)			days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family			$	-		$	-		$	-		$	-		$	1,926,791		$	1,926,791			$	-		$	-
Commercial real estate:
	Non-owner occupied			-			136			10,631			10,767			1,660,668			1,671,435				10,631			-
	Owner occupied			-			5,106			606			5,712			1,472,699			1,478,411				606			-
Commercial and industrial				924			2,144			5,803			8,871			1,975,768			1,984,639				5,191			612
Construction				-			-			-			-			604,723			604,723				-			-
Mortgage				1,501			4,558			21,533			27,592			1,228,278			1,255,870				21,533			-
Consumer:
	Credit cards			-			-			-			-			34			34				-			-
	Home equity lines of credit			256			577			3,970			4,803			65,036			69,839				3,970			-
	Personal			1,495			1,529			1,261			4,285			233,780			238,065				1,261			-
	Other			704			-			12			716			4,384			5,100				12			-
Total			$	4,880		$	14,050		$	43,816		$	62,746		$	9,172,161		$	9,234,907			$	43,204		$	612
30-Jun-22
Popular U.S.
				Past due																		Past due 90 days or more
			30-59			60-89			90 days			Total										Non-accrual				Accruing
(In thousands)			days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family			$	-		$	187		$	280		$	467		$	1,895,352		$	1,895,819			$	280		$	-
Commercial real estate:
	Non-owner occupied			288			-			-			288			1,467,935			1,468,223				-			-
	Owner occupied			144			-			1,416			1,560			1,465,252			1,466,812				1,416			-
Commercial and industrial				9,278			2,037			6,326			17,641			1,880,702			1,898,343				5,750			576
Construction				-			7,000			-			7,000			621,558			628,558				-			-
Mortgage				1,561			3,587			20,192			25,340			1,194,692			1,220,032				20,192			-
Consumer:
	Credit cards			-			-			-			-			47			47				-			-
	Home equity lines of credit			303			16			4,705			5,024			66,431			71,455				4,705			-
	Personal			755			470			749			1,974			232,339			234,313				749			-
	Other			-			13			1			14			5,663			5,677				1			-
Total			$	12,329		$	13,310		$	33,669		$	59,308		$	8,829,971		$	8,889,279			$	33,093		$	576

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			$	-			$	(187	)		$	(280	)		$	(467	)		$	31,439			$	30,972				$	(280	)		$	-
Commercial real estate:
	Non-owner occupied			(288	)			136				10,631				10,479				192,733				203,212					10,631				-
	Owner occupied			(144	)			5,106				(810	)			4,152				7,447				11,599					(810	)			-
Commercial and industrial				(8,354	)			107				(523	)			(8,770	)			95,066				86,296					(559	)			36
Construction				-				(7,000	)			-				(7,000	)			(16,835	)			(23,835	)				-				-
Mortgage				(60	)			971				1,341				2,252				33,586				35,838					1,341				-
Consumer:
	Credit cards			-				-				-				-				(13	)			(13	)				-				-
	Home equity lines of credit			(47	)			561				(735	)			(221	)			(1,395	)			(1,616	)				(735	)			-
	Personal			740				1,059				512				2,311				1,441				3,752					512				-
	Other			704				(13	)			11				702				(1,279	)			(577	)				11				-
Total			$	(7,449	)		$	740			$	10,147			$	3,438			$	342,190			$	345,628				$	10,111			$	36

Popular, Inc.
Financial Supplement to Third Quarter 2022 Earnings Release
Table J - Loan Delinquency - Consolidated
(Unaudited)
30-Sep-22
Popular, Inc.
			Past due																		Past due 90 days or more
		30-59			60-89			90 days			Total										Non-accrual				Accruing
(In thousands)		days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family		$	546		$	-		$	251		$	797		$	2,203,312		$	2,204,109			$	251		$	-
Commercial real estate:
	Non-owner occupied		3,005			925			32,074			36,004			4,481,471			4,517,475				32,074			-
	Owner occupied		10,992			12,940			28,985			52,917			3,013,631			3,066,548				28,985			-
Commercial and industrial			8,029			3,283			43,806			55,118			5,523,609			5,578,727				42,566			1,240
Construction			-			1,087			-			1,087			815,203			816,290				-			-
Mortgage			238,817			94,360			602,911			936,088			6,375,625			7,311,713				274,306			328,605
Leasing			14,487			2,740			5,697			22,924			1,515,580			1,538,504				5,697			-
Consumer:
	Credit cards		7,268			4,481			10,361			22,110			966,440			988,550				-			10,361
	Home equity lines of credit		256			577			3,970			4,803			67,993			72,796				3,970			-
	Personal		15,220			8,877			19,398			43,495			1,712,526			1,756,021				19,378			20
	Auto		71,230			21,852			34,432			127,514			3,401,390			3,528,904				34,432			-
	Other		1,412			768			12,037			14,217			129,334			143,551				11,760			277
Total		$	371,262		$	151,890		$	793,922		$	1,317,074		$	30,206,114		$	31,523,188			$	453,419		$	340,503
30-Jun-22
Popular, Inc.
			Past due																		Past due 90 days or more
		30-59			60-89			90 days			Total										Non-accrual				Accruing
(In thousands)		days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family		$	1,992		$	187		$	534		$	2,713		$	2,129,660		$	2,132,373			$	534		$	-
Commercial real estate:
	Non-owner occupied		1,667			110			20,435			22,212			4,098,129			4,120,341				20,435			-
	Owner occupied		5,038			2,860			33,571			41,469			2,832,092			2,873,561				33,571			-
Commercial and industrial			11,812			3,563			50,502			65,877			5,353,149			5,419,026				49,399			1,103
Construction			498			7,000			-			7,498			783,422			790,920				-			-
Mortgage			213,044			86,485			701,949			1,001,478			6,260,477			7,261,955				304,862			397,087
Leasing			9,970			2,164			4,665			16,799			1,463,423			1,480,222				4,665			-
Consumer:
	Credit cards		5,785			4,142			8,896			18,823			947,923			966,746				-			8,896
	Home equity lines of credit		303			16			4,705			5,024			69,553			74,577				4,705			-
	Personal		11,971			6,513			19,794			38,278			1,584,135			1,622,413				19,794			-
	Auto		56,577			13,815			28,045			98,437			3,391,539			3,489,976				28,045			-
	Other		242			144			12,126			12,512			126,314			138,826				11,914			212
Total		$	318,899		$	126,999		$	885,222		$	1,331,120		$	29,039,816		$	30,370,936			$	477,924		$	407,298

Variance
			Past due																								Past due 90 days or more
		30-59				60-89				90 days				Total													Non-accrual					Accruing
(In thousands)		days				days				or more				past due				Current				Loans HIP					loans				loans
Commercial multi-family		$	(1,446	)		$	(187	)		$	(283	)		$	(1,916	)		$	73,652			$	71,736				$	(283	)		$	-
Commercial real estate:
	Non-owner occupied		1,338				815				11,639				13,792				383,342				397,134					11,639				-
	Owner occupied		5,954				10,080				(4,586	)			11,448				181,539				192,987					(4,586	)			-
Commercial and industrial			(3,783	)			(280	)			(6,696	)			(10,759	)			170,460				159,701					(6,833	)			137
Construction			(498	)			(5,913	)			-				(6,411	)			31,781				25,370					-				-
Mortgage			25,773				7,875				(99,038	)			(65,390	)			115,148				49,758					(30,556	)			(68,482	)
Leasing			4,517				576				1,032				6,125				52,157				58,282					1,032				-
Consumer:
	Credit cards		1,483				339				1,465				3,287				18,517				21,804					-				1,465
	Home equity lines of credit		(47	)			561				(735	)			(221	)			(1,560	)			(1,781	)				(735	)			-
	Personal		3,249				2,364				(396	)			5,217				128,391				133,608					(416	)			20
	Auto		14,653				8,037				6,387				29,077				9,851				38,928					6,387				-
	Other		1,170				624				(89	)			1,705				3,020				4,725					(154	)			65
Total		$	52,363			$	24,891			$	(91,300	)		$	(14,046	)		$	1,166,298			$	1,152,252				$	(24,505	)		$	(66,795	)

Popular, Inc.
Financial Supplement to Third Quarter 2022 Earnings Release
Table K - Non-Performing Assets
(Unaudited)
										Variance
(Dollars in thousands)	30-Sep-22	As a % of loans HIP by category		30-Jun-22	As a % of loans HIP by category		30-Sep-21	As a % of loans HIP by category		Q3 2022 vs. Q2 2022		Q3 2022 vs. Q3 2021
Non-accrual loans:
Commercial	$103,876	0.7	%	$103,939	0.7	%	$186,181	1.4	%	$(63	)	$(82,305	)
Construction	-	-		-	-		14,877	1.9		-		(14,877	)
Leasing	5,697	0.4		4,665	0.3		2,542	0.2		1,032		3,155
Mortgage	274,306	3.8		304,862	4.2		369,043	4.9		(30,556	)	(94,737	)
Auto	34,432	1.0		28,045	0.8		17,345	0.5		6,387		17,087
Consumer	35,108	1.2		36,413	1.3		42,847	1.7		(1,305	)	(7,739	)
Total non-performing loans held-in-portfolio	453,419	1.4	%	477,924	1.6	%	632,835	2.2	%	(24,505	)	(179,416	)
Other real estate owned (“OREO”)	93,239			92,137			76,828			1,102		16,411
Total non-performing assets [1]	$546,658			$570,061			$709,663			$(23,403	)	$(163,005	)
Accruing loans past due 90 days or more [2]	$340,503			$407,298			$549,785			$(66,795	)	$(209,282	)
Ratios:
Non-performing assets to total assets	0.77	%		0.80	%		0.96	%
Non-performing loans held-in-portfolio to loans held-in-portfolio	1.44			1.57			2.19
Allowance for credit losses to loans held-in-portfolio	2.23			2.24			2.49
Allowance for credit losses to non-performing loans, excluding loans held-for-sale	155.07			142.65			113.55
[1] There were no non-performing loans held-for-sale as of September 30, 2022, June 30, 2022 and September 30, 2021.
[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 $9 million at September 30, 2022, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (June 30, 2022 - $11 million; September 30, 2021 - $12 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 $198 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of September 30, 2022 (June 30, 2022 - $237 million; September 30, 2021 - $350 million). Furthermore, the Corporation has approximately $42 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 (June 30, 2022 - $43 million; September 30, 2021 - $53 million).

Popular, Inc.
Financial Supplement to Third Quarter 2022 Earnings Release
Table L - Activity in Non-Performing Loans
(Unaudited)
Commercial loans held-in-portfolio:
		Quarter ended						Quarter ended
		30-Sep-22						30-Jun-22
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$96,493		$7,446		$103,939		$117,782		$5,403		$123,185
Plus:
	New non-performing loans	5,913		14,965		20,878		1,666		7,325		8,991
	Advances on existing non-performing loans	-		12		12		-		1		1
Less:
	Non-performing loans transferred to OREO	(352	)	-		(352	)	(914	)	-		(914	)
	Non-performing loans charged-off	(4,534	)	(48	)	(4,582	)	(951	)	(89	)	(1,040	)
	Loans returned to accrual status / loan collections	(10,072	)	(5,947	)	(16,019	)	(21,090	)	(5,194	)	(26,284	)
Ending balance NPLs		$87,448		$16,428		$103,876		$96,493		$7,446		$103,939
Mortgage loans held-in-portfolio:
		Quarter ended						Quarter ended
		30-Sep-22						30-Jun-22
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$284,670		$20,192		$304,862		$306,560		$21,826		$328,386
Plus:
	New non-performing loans	29,345		4,739		34,084		36,665		3,793		40,458
	Advances on existing non-performing loans	-		55		55		-		110		110
Less:
	Non-performing loans transferred to OREO	(5,604	)	-		(5,604	)	(10,627	)	-		(10,627	)
	Non-performing loans charged-off	(689	)	-		(689	)	(295	)	(127	)	(422	)
	Loans returned to accrual status / loan collections	(54,949	)	(3,453	)	(58,402	)	(47,633	)	(5,410	)	(53,043	)
Ending balance NPLs		$252,773		$21,533		$274,306		$284,670		$20,192		$304,862
Total non-performing loans held-in-portfolio (excluding consumer):
		Quarter ended						Quarter ended
		30-Sep-22						30-Jun-22
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$381,163		$27,638		$408,801		$424,342		$27,229		$451,571
Plus:
	New non-performing loans	35,258		19,704		54,962		38,331		11,118		49,449
	Advances on existing non-performing loans	-		67		67		-		111		111
Less:
	Non-performing loans transferred to OREO	(5,956	)	-		(5,956	)	(11,541	)	-		(11,541	)
	Non-performing loans charged-off	(5,223	)	(48	)	(5,271	)	(1,246	)	(216	)	(1,462	)
	Loans returned to accrual status / loan collections	(65,021	)	(9,400	)	(74,421	)	(68,723	)	(10,604	)	(79,327	)
Ending balance NPLs		$340,221		$37,961		$378,182		$381,163		$27,638		$408,801

Popular, Inc.
Financial Supplement to Third Quarter 2022 Earnings Release
Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)
	Quarters ended
(Dollars in thousands)	30-Sep-22			30-Jun-22			30-Sep-21
Balance at beginning of period - loans held-in-portfolio	$681,750			$677,792			$785,790
Provision for credit losses (benefit)	39,519			9,861			(58,645	)
Initial allowance for credit losses - PCD Loans	59			170			253
	721,328			687,823			727,398
Net loans charged-off (recovered):
BPPR
Commercial	(1,150	)		(3,412	)		4,357
Construction	-			(395	)		(2,223	)
Lease financing	1,338			667			304
Mortgage	(2,165	)		(4,451	)		(2,111	)
Consumer	20,373			12,923			9,009
Total BPPR	18,396			5,332			9,336
Popular U.S.
Commercial	(511	)		137			(463	)
Construction	-			(4	)		-
Mortgage	(23	)		63			(48	)
Consumer	370			545			(2	)
Total Popular U.S.	(164	)		741			(513	)
Total loans charged-off (recovered) - Popular, Inc.	18,232			6,073			8,823
Balance at end of period - loans held-in-portfolio	$703,096			$681,750			$718,575
Balance at beginning of period - unfunded commitments	$6,904			$7,054			$9,936
Provision for credit losses (benefit)	403			(150	)		(1,536	)
Balance at end of period - unfunded commitments [1]	$7,307			$6,904			$8,400
POPULAR, INC.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	0.24		%	0.08		%	0.12		%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	216.76		%	162.37		%	N.M.
BPPR
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	0.34		%	0.10		%	0.18		%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	155.98		%	171.19		%	N.M.
Popular U.S.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	(0.01	)	%	0.03		%	(0.03	)	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	N.M.			98.92		%	N.M.
N.M. - Not meaningful.
[1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

Popular, Inc.
Financial Supplement to Third Quarter 2022 Earnings Release
Table N - Allowance for Credit Losses "ACL"- Loan Portfolios - CONSOLIDATED
(Unaudited)
30-Sep-22
(Dollars in thousands)		Commercial		Construction			Mortgage			Lease financing		Consumer		Total
Total ACL		$229,857		$6,199			$138,534			$19,814		$308,692		$703,096
Total loans held-in-portfolio		$15,366,859		$816,290			$7,311,713			$1,538,504		$6,489,822		$31,523,188
ACL to loans held-in-portfolio		1.50	%	0.76		%	1.89		%	1.29	%	4.76	%	2.23	%
30-Jun-22
(Dollars in thousands)		Commercial		Construction			Mortgage			Lease financing		Consumer		Total
Total ACL		$209,630		$6,913			$148,305			$19,037		$297,865		$681,750
Total loans held-in-portfolio		$14,545,301		$790,920			$7,261,955			$1,480,222		$6,292,538		$30,370,936
ACL to loans held-in-portfolio		1.44	%	0.87		%	2.04		%	1.29	%	4.73	%	2.24	%
Variance
(Dollars in thousands)		Commercial		Construction			Mortgage			Lease financing		Consumer		Total
Total ACL		$20,227		$(714	)		$(9,771	)		$777		$10,827		$21,346
Total loans held-in-portfolio		$821,558		$25,370			$49,758			$58,282		$197,284		$1,152,252

Popular, Inc.
Financial Supplement to Third Quarter 2022 Earnings Release
Table O - Allowance for Credit Losses "ACL"- Loan Portfolios - PUERTO RICO OPERATIONS
(Unaudited)
30-Sep-22
Puerto Rico
(In thousands)		Commercial		Construction		Mortgage			Lease financing		Consumer		Total
ACL		$161,775		$4,255		$120,606			$19,814		$284,484		$590,934
Loans held-in-portfolio		$8,305,583		$211,567		$6,055,843			$1,538,504		$6,176,784		$22,288,281
ACL to loans held-in-portfolio		1.95	%	2.01	%	1.99		%	1.29	%	4.61	%	2.65	%
30-Jun-22
Puerto Rico
(In thousands)		Commercial		Construction		Mortgage			Lease financing		Consumer		Total
ACL		$153,547		$3,074		$130,030			$19,037		$274,889		$580,577
Loans held-in-portfolio		$7,816,104		$162,362		$6,041,923			$1,480,222		$5,981,046		$21,481,657
ACL to loans held-in-portfolio		1.96	%	1.89	%	2.15		%	1.29	%	4.60	%	2.70	%
Variance
(In thousands)		Commercial		Construction		Mortgage			Lease financing		Consumer		Total
ACL		$8,228		$1,181		$(9,424	)		$777		$9,595		$10,357
Loans held-in-portfolio		$489,479		$49,205		$13,920			$58,282		$195,738		$806,624

Popular, Inc.
Financial Supplement to Third Quarter 2022 Earnings Release
Table P - Allowance for Credit Losses "ACL"- Loan Portfolios - POPULAR U.S. OPERATIONS
(Unaudited)
30-Sep-22
Popular U.S.
(In thousands)		Commercial		Construction			Mortgage			Consumer		Total
ACL		$68,082		$1,944			$17,928			$24,208		$112,162
Loans held-in-portfolio		$7,061,276		$604,723			$1,255,870			$313,038		$9,234,907
ACL to loans held-in-portfolio		0.96	%	0.32		%	1.43		%	7.73	%	1.21	%
30-Jun-22
Popular U.S.
(In thousands)		Commercial		Construction			Mortgage			Consumer		Total
ACL		$56,083		$3,839			$18,275			$22,976		$101,173
Loans held-in-portfolio		$6,729,197		$628,558			$1,220,032			$311,492		$8,889,279
ACL to loans held-in-portfolio		0.83	%	0.61		%	1.50		%	7.38	%	1.14	%
Variance
(In thousands)		Commercial		Construction			Mortgage			Consumer		Total
ACL		$11,999		$(1,895	)		$(347	)		$1,232		$10,989
Loans held-in-portfolio		$332,079		$(23,835	)		$35,838			$1,546		$345,628

Popular, Inc.
Financial Supplement to Third Quarter 2022 Earnings Release
Table Q - Reconciliation to GAAP Financial Measures
(Unaudited)
(In thousands, except share or per share information)	30-Sep-22			30-Jun-22			30-Sep-21
Total stockholders’ equity	$3,674,838			$4,293,349			$5,982,971
Less: Preferred stock	(22,143	)		(22,143	)		(22,143	)
Less: Goodwill	(827,428	)		(720,293	)		(671,122	)
Less: Other intangibles	(13,738	)		(14,533	)		(19,657	)
Total tangible common equity	$2,811,529			$3,536,380			$5,270,049
Total assets	$70,729,675			$71,501,931			$74,189,163
Less: Goodwill	(827,428	)		(720,293	)		(671,122	)
Less: Other intangibles	(13,738	)		(14,533	)		(19,657	)
Total tangible assets	$69,888,509			$70,767,105			$73,498,384
Tangible common equity to tangible assets	4.02		%	5.00		%	7.17		%
Common shares outstanding at end of period	72,673,344			76,576,397			79,841,564
Tangible book value per common share	$38.69			$46.18			$66.01
	Quarterly average
Total stockholders’ equity [1]	$6,061,748			$5,827,666			$5,769,545
Less: Preferred Stock	(22,143	)		(22,143	)		(22,143	)
Less: Goodwill	(759,318	)		(720,292	)		(671,121	)
Less: Other intangibles	(24,038	)		(15,043	)		(20,132	)
Total tangible equity	$5,256,249			$5,070,188			$5,056,149
Return on average tangible common equity	31.86		%	16.70		%	19.44		%
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale.

 

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The Popular Stock at the time of publication of the news with a raise of +1,99 % to 75,24EUR on Nasdaq stock exchange (26. Oktober 2022, 02:00 Uhr).