Popular, Inc. Announces Second Quarter 2024 Financial Results

Net income of $177.8 million in Q2 2024, compared to net income of $103.3 million in Q1 2024.
Excluding the impact of certain transactions from the results of operations for the first quarter of 2024 (FDIC Special Assessment and prior period tax withholdings), net income in Q2 2024 increased by $42.6 million when compared to adjusted net income of $135.2 million in Q1 2024.
Net interest income amounted to $568.3 million, an increase of $17.6 million compared to Q1 2024.
Net interest margin of 3.22% in Q2 2024, compared to 3.16% in Q1 2024; net interest margin on a taxable equivalent basis of 3.48% in Q2 2024, compared to 3.38% in Q1 2024.
Non-interest income of $166.3 million, compared to $163.8 million in Q1 2024.
Operating expenses amounted to $469.6 million, down by $13.5 million compared to Q1 2024. Excluding the impact of the transactions mentioned above from the first quarter of 2024, operating expenses increased by $7.2 million or 1.5%.
Credit quality remains stable with improved credit metrics:
- Non-performing loans held-in-portfolio (“NPLs”) decreased by $12.3 million from Q1 2024; NPLs to loans ratio remained flat at 1.0%;
- Net charge-offs (“NCOs”) decreased by $8.6 million from Q1 2024; annualized NCOs at 0.61% of average loans held-in-portfolio vs. 0.71% in Q1 2024;
- Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.05% vs. 2.11% in Q1 2024; and
- ACL to NPLs at 213.6% vs. 208.8% in Q1 2024.
Loans ending balances, excluding loans held-for-sale, amounted to $35.6 billion, an increase of $472.9 million from Q1 2024.
- Average quarterly loan balances increased by $332.2 million.
Ending deposit balances amounted to $65.5 billion, an increase of $1.7 billion from Q1 2024.
- Average quarterly deposit balances increased by $993.5 million.
Common Equity Tier 1 ratio of 16.48%, Common Equity per share of $73.94 and Tangible Book Value per share of $62.71 at June 30, 2024.

Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $177.8 million for the quarter ended June 30, 2024, compared to net income of $103.3 million for the quarter ended March 31, 2024. Net income in the first quarter of 2024 included a $9.1 million after tax expenses arising from the impact of the FDIC special assessment (the “FDIC Special Assessment”) and a $22.9 million tax expense related to prior period intercompany distributions from the Corporation’s U.S. subsidiaries. Excluding the impact of these items from the results of the first quarter of 2024, net income increased by $42.6 million during the quarter ended June 30, 2024.

Ignacio Alvarez, President and Chief Executive Officer, said: “We are very pleased with our financial performance for the quarter. Our strong earnings were driven by higher net interest income and lower provision for credit losses. We also expanded our net interest margin by six basis points. Credit quality trends remained positive, with lower net charge-offs as well as lower levels and inflows of non-performing loans.

Our solid capital position allows us to continue to serve the needs of our customers, while prudently increasing our dividend and returning capital to our shareholders. Reflecting this strength, we announced a 13% increase in our quarterly common stock dividend and a $500 million common stock repurchase authorization.

We continue to successfully execute on our Transformation to better serve our customers and drive returns over time. This includes investing in talent and technology to deepen our relationships with customers and maximize the opportunities inherent in our franchise. I am proud of the enthusiasm and commitment demonstrated by our colleagues and optimistic about the future.”

Significant Events

Capital actions

On July 24, 2024, the Corporation announced the following capital actions:

common stock repurchases of up to $500 million; and
an increase in the Corporation’s quarterly common stock dividend from $0.62 to $0.70 per share, commencing with the dividend payable in the first quarter of 2025, subject to the approval by the Corporation’s Board of Directors.

The Corporation’s planned common stock repurchases may be executed in open market transactions, privately negotiated transactions, block trades or any other manner determined by the Corporation. The timing, quantity and price of such repurchases will be subject to various factors, including market conditions, the Corporation’s capital position and financial performance, the capital impact of strategic initiatives and regulatory and tax considerations. The common stock repurchase program does not require the Corporation to acquire a specific dollar amount or number of shares and may be modified, suspended or terminated at any time without prior notice.

Earnings Highlights

(Unaudited)

Quarters ended

Six months ended

(Dollars in thousands, except per share information)

30-Jun-24

31-Mar-24

30-Jun-23

30-Jun-24

30-Jun-23

Net interest income

$568,312

$550,744

$531,668

$1,119,056

$1,063,324

Provision for credit losses

46,794

72,598

37,192

119,392

84,829

Net interest income after provision for credit losses

521,518

478,146

494,476

999,664

978,495

Other non-interest income

166,306

163,818

160,471

330,124

322,432

Operating expenses

469,576

483,113

460,284

952,689

900,971

Income before income tax

218,248

158,851

194,663

377,099

399,956

Income tax expense

40,459

55,568

43,503

96,027

89,817

Net income

$177,789

$103,283

$151,160

$281,072

$310,139

Net income applicable to common stock

$177,436

$102,930

$150,807

$280,366

$309,433

Net income per common share-basic

$2.47

$1.43

$2.10

$3.90

$4.32

Net income per common share-diluted

$2.46

$1.43

$2.10

$3.90

$4.32

Non-GAAP Financial Measures

This press release contains financial information prepared under accounting principles generally accepted in the United States (“U.S. GAAP”) and non-GAAP financial measures. Management uses non-GAAP financial measures when it has determined that these measures provide more meaningful information about the underlying performance of the Corporation’s ongoing operations. Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies.

Adjusted net income

In addition to analyzing the Corporation’s results on a reported basis, management monitors the “adjusted net income” of the Corporation and excludes the impact of certain transactions on the results of its operations. Management believes that the “adjusted net income” provides meaningful information about the underlying performance of the Corporation’s ongoing operations. The “adjusted net income” is a non-GAAP financial measure.

Net interest income on a taxable equivalent basis

Net interest income, on a taxable equivalent basis, is presented with its different components in Tables D, E and F. 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.

Tangible Common Equity

The tangible common equity, tangible common equity ratio, tangible assets and tangible book value per common share are non-GAAP financial measures. Tangible common equity ratio and tangible book value per common share in conjunction with more traditional bank capital ratios are commonly used by banks and analysts to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase accounting method for mergers and acquisitions. Neither tangible common equity nor tangible assets or related measures, should be used in isolation or as a substitute for stockholders' equity, total assets or any other measure calculated in accordance with GAAP.

Refer to Table R for a reconciliation of total stockholders’ equity to tangible common equity and total assets to tangible assets.

The following table presents the reconciliation of the net income to the adjusted net income (non-GAAP) for the quarter ended March 31, 2024. There were no adjustments to net income for the quarter ended June 30, 2024.

Adjusted Net Income for the Quarter Ended March 31, 2024 (non-GAAP)

(Unaudited)

(In thousands)

Income before income tax

Income tax expense (benefit)

Total

U.S. GAAP Net income

$158,851

$55,568

$103,283

Non-GAAP Adjustments:

FDIC Special Assessment [1]

14,287

(5,234

)

9,053

Adjustments related to tax withholdings on prior period distributions from U.S. subsidiaries [2]

6,400

16,483

22,883

Adjusted net income (non-GAAP)

$179,538

$44,319

$135,219

[1] Expense related to the November 16, 2023 FDIC Special Assessment to recover the losses to the deposit insurance fund used by the FDIC in connection with the receiverships of several failed banks. The special assessment amount and collection period may change as the estimated loss is periodically adjusted or if the total amount collected varies.

[2] Income tax expense and other related expenses from prior periods related to withholding taxes on certain distributions from U.S. subsidiaries.

Net interest income and net interest income on a taxable equivalent basis non-GAAP

Net interest income for the quarter ended June 30, 2024, was $568.3 million, an increase of $17.6 million when compared to $550.7 million for the previous quarter. Net interest margin for the second quarter of 2024 was 3.22% compared to 3.16% in the prior quarter or an increase of six basis points.

Net interest income on a taxable equivalent basis for the second quarter of 2024 was $614.8 million, compared to $589.6 million in the previous quarter, an increase of $25.2 million. Net interest margin on a taxable equivalent basis for the second quarter of 2024 was 3.48%, compared to 3.38% in the first quarter of 2024, or a 10 basis points increase.

The main variances in net interest income and net interest margin on a taxable equivalent basis were:

interest income from investment securities increased by $25.8 million due to the reinvestment of maturities in higher yielding U.S. Treasury bills, resulting in $28.2 million of additional interest income for the period which was offset in part by lower interest income from mortgage backed securities by $2.1 million due to lower volume and yields in the portfolio; and
higher interest income from loans by $9.7 million due to higher average loan balances and higher yields in all portfolios;

partially offset by:

higher interest expense on deposits by $10.4 million, due to higher average volume and higher cost of interest-bearing deposits by $901 million and three basis points, respectively. In Puerto Rico, the cost of government interest-bearing demand deposits, decreased eight basis point quarter over quarter, while average balances increased by $647 million. This positive variance was in part offset by an increase in the total cost of time deposits of 28 basis points including the cost of time deposits of the P.R. government. Total cost of deposits for the second quarter was 2.10% or a three basis points increase from the previous quarter.

Net Interest Income and Net Interest Margin (Banco Popular de Puerto Rico Segment)

Net interest income for the Banco Popular de Puerto Rico (“BPPR”) segment amounted to $488.7 million for the second quarter of 2024, an increase of $15.9 million when compared to $472.8 million in the previous quarter. Net interest margin in the BPPR segment increased from the first quarter of 2024 by seven basis points to 3.40%. The most significant variances quarter over quarter in net interest income and net interest margin for BPPR were:

higher interest income from investment securities which increased in total by $17.7 million due to a 27 basis points increase in the yield from U.S. Treasury securities offset in part by lower interest income on mortgage back securities of $1.6 million due to lower volume and yields; and
higher interest income on loans by $9.1 million. This uplift in interest income was associated with an increase of $4.2 million in interest income from the commercial loans portfolio, which average balances and yields increased by $165 million and five basis points, respectively. The remaining increase in interest income of $4.9 million is due to the net growth across all other BPPR loan portfolios.

Partially offset by:

higher interest expense from deposits by $7.4 million. The cost of time deposits increased by $4.8 million resulting from higher cost by 32 basis points driven by the repricing and higher average balances of certain time deposit accounts of the P.R. government for which BPPR’s fiduciary division acts as escrow agent. Interest expense on interest-bearing demand deposits accounts increased by $2.8 million, mainly driven by an increase in average balances, partially offset by a decrease in cost of five basis points. Total deposit cost for the BPPR segment in the second quarter of 2024 was 1.83%, compared to 1.81% in the previous quarter, an increase of two basis points; and
lower interest income in money market investments by $3.5 million due to lower volume that corresponds to the deployment of liquidity for loan origination activity and investment in treasury bills as described above.

Net Interest Income and Net Interest Margin (Popular Bank Segment)

Net interest income and net interest margin for the Popular Bank (“PB”, or “Popular U.S.”) segment increased to $85.9 million and 2.60%, respectively, for the quarter ended June 30, 2024, compared to $84.9 million and 2.59%, respectively, during the quarter ended March 31, 2024. Interest income from money market investments increased by $2.6 million during the quarter mainly due to higher volume resulting from an increase in deposits. Total cost of funds in PB increased by $2.7 million due to higher average balance in time deposits of $443.8 million which drove the cost up by $4.7 million but that were partially offset by lower interest expense on interest-bearing demand deposits by $1.6 million. Total cost of deposits for the quarter was 3.43%, a three basis points increase from the previous quarter.

Non-interest income

Non-interest income amounted to $166.3 million for the quarter ended June 30, 2024, an increase of $2.5 million when compared to $163.8 million for the quarter ended March 31, 2024. The variance in non-interest income was driven primarily by higher other service fees by $2.6 million due mainly to higher credit and debit card fees as a result of higher volume of customer transactions.

Refer to Table B for further details.

Operating expenses

Operating expenses for the second quarter of 2024 totaled $469.6 million, a decrease of $13.5 million when compared to the first quarter of 2024. Excluding the $6.4 million of interest accrued related to prior period tax withholdings and the $14.3 million impact of the FDIC Special Assessment, total expenses for the first quarter of 2024 were $462.4 million. The second quarter’s expenses increased by $7.2 million when compared to this adjusted expense. The main drivers of the $7.2 million variance were:

higher professional fees by $8.8 million mainly due to higher consulting and assurance professional services expenses by $6.8 million related to corporate initiatives focused on regulatory, cyber security and other advisory efforts;
higher operational losses by $8.3 million due to build up on reserves for operational losses;
higher processing and transactional services expenses by $4.9 million mainly due to higher retail customers’ debit card issuance costs by $1.8 million, higher merchant processing expenses by $1.3 million and higher credit card processing fees by $1.6 million; and
higher business promotion expenses by $4.5 million mainly due to higher customer reward program expenses in our credit card business by $2.4 million and higher advertising and strategic communications expense and donations granted during the quarter by $1.7 million.

partially offset by:

lower personnel cost by $18.0 million mainly due to a decrease in performance shares and restricted stock expenses by $8.2 million, lower other compensation expenses by $8.5 million due to lower payroll taxes and vacations accrual that are typically higher in the first quarter of the year;

Full-time equivalent employees were 9,241 as of June 30, 2024, compared to 9,132 as of March 31, 2024.

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

Income taxes

For the quarter ended June 30, 2024, the Corporation recorded an income tax expense of $40.5 million, compared to an income tax expense of $55.6 million for the previous quarter. Excluding the $11.2 million net impact related to a tax withholding on intercompany distributions from prior periods and the tax effect of the FDIC Special Assessment that was recognized during the first quarter of 2024, income tax expense for the quarter ended March 31, 2024, would have been $44.3 million.

The effective tax rate (“ETR”) for the second quarter of 2024 was 18.5%, compared to 35.0% for the previous quarter. Excluding the impact of the tax withholding and the additional expense related to the FDIC Special Assessment during the first quarter of 2024, the ETR would have been 24.7%.

The ETR of the Corporation is impacted by the composition and source of its taxable income. The Corporation expects its ETR for the year 2024 to be within a range from 21% to 23%.

Credit Quality

Credit quality metrics in the second quarter of 2024 improved when compared to the previous quarter. We continue to closely monitor changes in the macroeconomic environment and on borrower performance given higher interest rates and inflationary pressures. However, management believes that the improvements over recent years in risk management practices and the risk profile of the Corporation’s loan portfolios position Popular to continue to operate successfully under the current environment.

The following presents credit quality results for the second quarter of 2024:

Non-Performing Loans (“NPLs”) and Net Charge Offs (“NCOs”)

Total NPLs as of June 30, 2024, decreased by $12.3 million from March 31, 2024. Inflows of NPLs, excluding consumer loans, decreased by $1.7 million quarter-over-quarter. At June 30, 2024, the ratio of NPLs to total loans held-in-portfolio was 1.0%, flat when compared to the first quarter of 2024. The drivers of these changes are mainly related to the following:

In the BPPR segment, NPLs decreased by $11.7 million across most loan categories, but mainly in the commercial loans portfolio with a $7.2 million decrease. Inflows to NPLs, excluding consumer loans, increased by $7.5 million driven by higher inflows in the mortgage loans portfolio.
In PB, NPLs remained flat driven by the return to accrual of a $17.2 million mortgage loan, offset by a $17.3 million commercial NPL inflow. PB inflows to NPLs, excluding consumer loans, decreased by $9.2 million, driven by the inflow in the prior quarter of the previously mentioned $17.2 million mortgage relationship, offset in part by higher commercial inflows this quarter by $7.2 million.

NCOs amounted to $53.6 million, decreasing by $8.6 million when compared to the first quarter of 2024. The Corporation’s ratio of annualized NCOs to average loans held-in-portfolio was 0.61%, compared to 0.71% in the first quarter of 2024. The drivers of these changes are mainly related to the following:

In the BPPR segment, NCOs decreased by $7.3 million quarter-over-quarter, mainly driven by lower consumer and commercial NCOs by $4.8 million and $2.2 million, respectively. Lower NCOs in the consumer portfolio were mostly related to lower auto and personal loans by $3.6 million and $1.0 million, respectively.
PB’s NCOs decreased by $1.3 million quarter-over-quarter, mostly related to lower consumer NCOs.

Refer to Table N for further information on NCOs and related ratios.

Other Real Estate Owned Properties (“OREO”)

As of June 30, 2024, the Corporation’s OREO portfolio amounted to $70.2 million, a decrease of $10.3 million, compared to the first quarter of 2024. The decrease in OREO was driven by the sale of a commercial property in BPPR.

Refer to Table L for additional information and related ratios.

Allowance for Credit Losses (“ACL”) and Provision for Credit Losses (“PCL”)

The ACL as of June 30, 2024 amounted to $730.1 million, a decrease of $9.5 million, compared to the first quarter of 2024. In BPPR, the ACL remained flat as changes in macroeconomic scenarios and lower NCOs were offset by higher commercial loan volume, higher qualitative reserves and changes in credit quality. In PB, the ACL decreased by $8.7 million from the previous quarter, mainly driven by lower reserves for the commercial portfolio. The Corporation’s ratio of the ACL to loans held-in-portfolio was 2.05% in the second quarter of 2024, compared to 2.11% in the previous quarter. The ratio of the ACL to NPLs held-in-portfolio stood at 213.6%, compared to 208.8% in the previous quarter.

The ACL incorporates management’s estimate of current 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. Based on the information available and the scenarios analyzed by management, the “baseline” scenario continues as the highest probability weight scenario, followed by the “pessimistic” scenario, and then the “optimistic” scenario consistent with the weights assigned in the previous quarter.

The provision for credit losses for the loan and lease portfolios for the second quarter of 2024 was $44.2 million, compared to $72.4 million in the previous quarter. The provision for the BPPR segment was $48.6 million, compared to $61.0 million in the previous quarter, while the PB segment had a release of $4.4 million, compared to a provision of $11.4 million in the previous quarter driven by improvements in credit quality and the pay-off of a significant relationship.

The provision for credit losses on our loan and lease portfolios, as well as the provision for credit losses related to unfunded loan commitments of $2.1 million and our investment portfolio of $0.5 million for the second quarter of 2024 are aggregated and presented in the provision for credit losses caption in our Consolidated Statement of Operations. For the second quarter, the provision for credit losses was $46.8 million, compared to $72.6 million in the previous quarter.

Non-Performing Assets

(Unaudited)

(In thousands)

30-Jun-24

31-Mar-24

30-Jun-23

Non-performing loans held-in-portfolio

$341,835

$354,127

$385,504

Other real estate owned

70,225

80,542

86,216

Total non-performing assets

$412,060

$434,669

$471,720

Net charge-offs for the quarter

$53,630

$62,200

$23,990

Ratios:

Loans held-in-portfolio

$35,591,620

$35,118,738

$33,030,922

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

0.96

1.01

1.17

Allowance for credit losses to loans held-in-portfolio

2.05

2.11

2.12

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

213.58

208.84

181.63

Refer to Table L for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios

(Unaudited)

Quarters ended

Six months ended

(In thousands)

30-Jun-24

31-Mar-24

30-Jun-23

30-Jun-24

30-Jun-23

Provision for credit losses (benefit) - loan portfolios:

BPPR

$48,585

$61,008

$28,379

$109,593

$73,582

Popular U.S.

(4,428

)

11,378

7,282

6,950

9,225

Total provision for credit losses (benefit) - loan portfolios

$44,157

$72,386

$35,661

$116,543

$82,807

Credit Quality by Segment

(Unaudited)

(In thousands)

Quarters ended

BPPR

30-Jun-24

31-Mar-24

30-Jun-23

Provision for credit losses - loan portfolios

$48,585

$61,008

$28,379

Net charge-offs

49,308

56,561

18,687

Total non-performing loans held-in-portfolio

286,887

298,594

352,339

Annualized net charge-offs to average loans held-in-portfolio

0.79

0.92

0.33

Allowance / loans held-in-portfolio

2.56

2.62

2.58

Allowance / non-performing loans held-in-portfolio

224.34

215.79

169.19

Quarters ended

Popular U.S.

30-Jun-24

31-Mar-24

30-Jun-23

Provision for credit losses (benefit) - loan portfolios

$(4,428

)

$11,378

$7,282

Net charge-offs

4,322

5,639

5,303

Total non-performing loans held-in-portfolio

54,948

55,533

33,165

Annualized net charge-offs to average loans held-in-portfolio

0.16

0.21

0.22

Allowance / loans held-in-portfolio

0.83

0.91

1.05

Allowance / non-performing loans held-in-portfolio

157.37

171.47

313.86

Financial Condition Highlights

(Unaudited)

(In thousands)

30-Jun-24

31-Mar-24

30-Jun-23

Cash and money market investments

$7,211,367

$6,249,064

$9,070,118

Investment securities

26,742,639

26,324,139

25,874,316

Loans

35,591,620

35,118,738

33,030,922

Total assets

72,845,072

70,936,939

70,838,266

Deposits

65,530,862

63,808,784

64,004,818

Borrowings

1,047,264

1,032,393

1,427,254

Total liabilities

67,472,394

65,759,625

66,273,257

Stockholders’ equity

5,372,678

5,177,314

4,565,009

Total assets amounted to $72.8 billion at June 30, 2024, an increase of $1.9 billion from the first quarter of 2024, driven by:

an increase in cash and money market investments of $962.3 million, mainly due to higher deposits, driven by Puerto Rico public funds, partially offset by higher loan originations and investments in securities available-for-sale (“AFS”);
an increase in securities AFS of $525.4 million, mainly due to purchases of U.S. Treasury bills partially offset by repayments and maturities; and
an increase in loans held-in-portfolio of $472.9 million, driven by an increase of $508.6 million at BPPR, reflected across nearly all portfolios, partially offset by a decrease of $35.7 million at PB;

partially offset by:

a decrease in securities held-to-maturity (“HTM”) of $107.6 million driven by maturities, partially offset by the accretion of $44.4 million of the discount related to U.S. Treasury securities previously reclassified from the AFS to HTM.

Total liabilities increased by $1.7 billion from the first quarter of 2024, driven by:

an increase of $1.7 billion in deposits, mainly in the P.R. public sector, as increases in time deposit balances at Popular Bank were offset by outflows of demand deposits at BPPR.

Stockholders' equity increased by $195.4 million from the first quarter of 2024 mainly due to the change in retained earnings resulting from the quarter’s net income of $177.8 million, coupled with the change in the accumulated other comprehensive loss driven by the amortization of unrealized losses from securities previously reclassified to HTM of $35.5 million, net of taxes, and the decrease in net unrealized losses in the portfolio of AFS securities of $16.9 million, partially offset by common and preferred dividends declared during the quarter of $45.3 million.

Common Equity Tier 1 ratio (“CET1”), common equity per share and tangible book value per share were 16.48%, $73.94 and $62.71, respectively, at June 30, 2024, compared to 16.36%, $71.32 and $60.06, respectively, at March 31, 2024. 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 business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes (including on our cost of deposits), our ability to attract deposits and grow our loan portfolio, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings, new regulatory requirements or accounting standards on the Corporation’s financial condition and results of operations, the occurrence of unforeseen or catastrophic events, including extreme weather events, pandemics, man-made disasters or acts of violence or war, as well as actions taken by governmental authorities in response thereto, and the direct and indirect impact of such events on Popular, our customers, service providers and third parties. Other potential factors include Popular’s ability to successfully execute its transformation initiative, including, but not limited to, achieving projected earnings, efficiencies and return on tangible common equity and accurately anticipating costs and expenses associated therewith, imposition of additional or special FDIC assessments, changes to regulatory capital, liquidity and resolution-related requirements applicable to financial institutions in response to recent developments affecting the banking sector and the impact of bank failures or adverse developments at other banks and related negative media coverage of the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions, and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, are generally intended to identify forward-looking statements.

More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Form 10-K for the year ended December 31, 2023, our Form 10-Q for the quarter ended March 31, 2024, and the Form 10-Q for the quarter ended June 30, 2024, 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, July 24, 2024 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 1-833-470-1428 (Toll Free) or 1-404-975-4839 (Local). The dial-in access code is 838904.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Friday, August 23, 2024. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 748297.

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 2024 Earnings Release

Table A - Selected Ratios and Other Information

Table B - Consolidated Statement of Operations

Table C - Consolidated Statement of Financial Condition

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

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

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

Table G - Mortgage Banking Activities and Other Service Fees

Table H - Loans and Deposits

Table I - Loan Delinquency - BPPR Operations

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

Table K - Loan Delinquency - Consolidated

Table L - Non-Performing Assets

Table M - Activity in Non-Performing Loans

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

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

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

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

Table R - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to Second Quarter 2024 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

Quarters ended

Six months ended

30-Jun-24

31-Mar-24

30-Jun-23

30-Jun-24

30-Jun-23

Basic EPS

$2.47

$1.43

$2.10

$3.90

$4.32

Diluted EPS

$2.46

$1.43

$2.10

$3.90

$4.32

Average common shares outstanding

71,970,773

71,869,735

71,690,396

71,920,254

71,616,498

Average common shares outstanding - assuming dilution

71,991,911

71,966,803

71,709,203

71,937,434

71,664,303

Common shares outstanding at end of period

72,365,926

72,284,875

72,103,969

72,365,926

72,103,969

Market value per common share

$88.43

$88.09

$60.52

$88.43

$60.52

Market capitalization - (In millions)

$6,399

$6,368

$4,364

$6,399

$4,364

Return on average assets

0.97

0.57

0.85

0.77

0.89

Return on average common equity

10.38

6.07

9.26

8.24

9.63

Net interest margin (non-taxable equivalent basis)

3.22

3.16

3.14

3.20

3.18

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

3.48

3.38

3.29

3.44

3.37

Common equity per share

$73.94

$71.32

$63.00

$73.94

$63.00

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

$62.71

$60.06

$51.37

$62.71

$51.37

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

6.30

6.19

5.29

6.30

5.29

Return on average tangible common equity [1]

11.77

6.90

10.63

9.35

11.06

Tier 1 capital

16.54

16.42

16.93

16.54

16.93

Total capital

18.30

18.19

18.74

18.30

18.74

Tier 1 leverage

8.53

8.45

8.40

8.53

8.40

Common Equity Tier 1 capital

16.48

16.36

16.87

16.48

16.87

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

POPULAR, INC.

Financial Supplement to Second Quarter 2024 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

Quarters ended

Variance

Quarter ended

Variance

Six months ended

Q2 2024

(In thousands, except per share information)

30-Jun-24

31-Mar-24

vs. Q1 2024

30-Jun-23

vs. Q2 2023

30-Jun-24

30-Jun-23

Interest income:

Loans

$648,739

$638,730

$10,009

$570,120

$78,619

$1,287,469

$1,111,330

Money market investments

88,316

88,516

(200

)

100,775

(12,459

)

176,832

166,499

Investment securities

184,852

166,895

17,957

123,112

61,740

351,747

255,200

Total interest income

921,907

894,141

27,766

794,007

127,900

1,816,048

1,533,029

Interest expense:

Deposits

339,939

329,496

10,443

243,488

96,451

669,435

436,703

Short-term borrowings

1,126

1,192

(66

)

1,624

(498

)

2,318

4,509

Long-term debt

12,530

12,709

(179

)

17,227

(4,697

)

25,239

28,493

Total interest expense

353,595

343,397

10,198

262,339

91,256

696,992

469,705

Net interest income

568,312

550,744

17,568

531,668

36,644

1,119,056

1,063,324

Provision for credit losses

46,794

72,598

(25,804

)

37,192

9,602

119,392

84,829

Net interest income after provision for credit losses

521,518

478,146

43,372

494,476

27,042

999,664

978,495

Service charges on deposit accounts

37,526

37,442

37,781

(255

)

74,968

72,459

Other service fees

96,863

94,272

2,591

94,265

2,598

191,135

184,341

Mortgage banking activities

5,723

4,360

1,363

2,316

3,407

10,083

9,716

Net gain, including impairment, on equity securities

319

1,103

(784

)

1,384

(1,065

)

1,422

2,484

Net gain on trading account debt securities

277

361

(84

)

242

638

413

Adjustments to indemnity reserves on loans sold

212

(237

)

449

(456

)

668

(25

)

156

Other operating income

25,386

26,517

(1,131

)

25,146

240

51,903

52,863

Total non-interest income

166,306

163,818

2,488

160,471

5,835

330,124

322,432

Operating expenses:

Personnel costs

Salaries

128,634

129,384

(750

)

124,901

3,733

258,018

250,294

Commissions, incentives and other bonuses

30,626

38,611

(7,985

)

27,193

3,433

69,237

58,355

Pension, postretirement and medical insurance

16,619

17,385

(766

)

17,508

(889

)

34,004

32,886

Other personnel costs, including payroll taxes

21,545

29,997

(8,452

)

21,866

(321

)

51,542

48,693

Total personnel costs

197,424

215,377

(17,953

)

191,468

5,956

412,801

390,228

Net occupancy expenses

27,692

28,041

(349

)

27,165

527

55,733

53,204

Equipment expenses

9,662

9,567

9,561

101

19,229

17,973

Other taxes

15,333

14,375

958

16,409

(1,076

)

29,708

32,700

Professional fees

37,744

28,918

8,826

50,132

(12,388

)

66,662

83,563

Technology and software expenses

79,752

79,462

290

72,354

7,398

159,214

140,913

Processing and transactional services

Credit and debit cards

13,739

12,144

1,595

11,584

2,155

25,883

24,134

Other processing and transactional services

25,357

22,050

3,307

25,217

140

47,407

46,576

Total processing and transactional services

39,096

34,194

4,902

36,801

2,295

73,290

70,710

Communications

4,357

4,557

(200

)

4,175

182

8,914

8,263

Business promotion

Rewards and customer loyalty programs

16,406

14,056

2,350

16,626

(220

)

30,462

28,974

Other business promotion

9,043

6,933

2,110

8,457

586

15,976

14,980

Total business promotion

25,449

20,989

4,460

25,083

366

46,438

43,954

Deposit insurance

10,581

23,887

(13,306

)

6,803

3,778

34,468

15,668

Other real estate owned (OREO) income

(5,750

)

(5,321

)

(429

)

(3,314

)

(2,436

)

(11,071

)

(5,008

)

Other operating expenses

Operational losses

11,823

3,561

8,262

4,280

7,543

15,384

11,080

All other

15,679

24,711

(9,032

)

18,572

(2,893

)

40,390

36,133

Total other operating expenses

27,502

28,272

(770

)

22,852

4,650

55,774

47,213

Amortization of intangibles

734

795

(61

)

795

(61

)

1,529

1,590

Total operating expenses

469,576

483,113

(13,537

)

460,284

9,292

952,689

900,971

Income before income tax

218,248

158,851

59,397

194,663

23,585

377,099

399,956

Income tax expense

40,459

55,568

(15,109

)

43,503

(3,044

)

96,027

89,817

Net income

$177,789

$103,283

$74,506

$151,160

$26,629

$281,072

$310,139

Net income applicable to common stock

$177,436

$102,930

$74,506

$150,807

$26,629

$280,366

$309,433

Net income per common share - basic

$2.47

$1.43

$1.04

$2.10

$0.37

$3.90

$4.32

Net income per common share - diluted

$2.46

$1.43

$1.03

$2.10

$0.36

$3.90

$4.32

Dividends Declared per Common Share

$0.62

$0.55

$0.07

$1.24

$1.10

Popular, Inc.

Financial Supplement to Second Quarter 2024 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

Variance

Q2 2024 vs.

(In thousands)

30-Jun-24

31-Mar-24

30-Jun-23

Q1 2024

Assets:

Cash and due from banks

$359,973

$320,486

$476,642

$39,487

Money market investments

6,851,394

5,928,578

8,593,476

922,816

Trading account debt securities, at fair value

28,045

27,308

29,160

737

Debt securities available-for-sale, at fair value

18,543,279

18,017,924

17,242,217

525,355

Less: Allowance for credit losses

500

Debt securities available-for-sale, net

18,542,779

18,017,424

17,242,217

525,355

Debt securities held-to-maturity, at amortized cost

7,975,524

8,083,160

8,410,566

(107,636

)

Less: Allowance for credit losses

6,251

5,731

6,145

520

Debt securities held-to-maturity, net

7,969,273

8,077,429

8,404,421

(108,156

)

Equity securities

195,791

195,747

192,373

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

8,225

5,352

55,421

2,873

Loans held-in-portfolio

35,978,602

35,486,161

33,354,999

492,441

Less: Unearned income

386,982

367,423

324,077

19,559

Allowance for credit losses

730,077

739,544

700,200

(9,467

)

Total loans held-in-portfolio, net

34,861,543

34,379,194

32,330,722

482,349

Premises and equipment, net

599,058

588,708

523,927

10,350

Other real estate

70,225

80,542

86,216

(10,317

)

Accrued income receivable

260,162

266,908

239,998

(6,746

)

Mortgage servicing rights, at fair value

113,386

114,964

121,249

(1,578

)

Other assets

2,172,555

2,120,902

1,703,662

51,653

Goodwill

804,428

827,428

Other intangible assets

8,235

8,969

11,354

(734

)

Total assets

$72,845,072

$70,936,939

$70,838,266

$1,908,133

Liabilities and Stockholders’ Equity:

Liabilities:

Deposits:

Non-interest bearing

$15,470,082

$15,492,050

$15,316,552

$(21,968

)

Interest bearing

50,060,780

48,316,734

48,688,266

1,744,046

Total deposits

65,530,862

63,808,784

64,004,818

1,722,078

Assets sold under agreements to repurchase

105,684

66,090

123,205

39,594

Notes payable

941,580

966,303

1,304,049

(24,723

)

Other liabilities

894,268

918,448

841,185

(24,180

)

Total liabilities

67,472,394

65,759,625

66,273,257

1,712,769

Stockholders’ equity:

Preferred stock

22,143

Common stock

1,048

1,047

Surplus

4,852,747

4,847,466

4,795,581

5,281

Retained earnings

4,385,522

4,253,030

4,093,284

132,492

Treasury stock

(2,010,500

)

(2,013,187

)

(2,018,611

)

2,687

Accumulated other comprehensive loss, net of tax

(1,878,282

)

(1,933,186

)

(2,328,435

)

54,904

Total stockholders’ equity

5,372,678

5,177,314

4,565,009

195,364

Total liabilities and stockholders’ equity

$72,845,072

$70,936,939

$70,838,266

$1,908,133

Popular, Inc.

Financial Supplement to Second Quarter 2024 Earnings Release

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

For the quarters ended June 30, 2024 and March 31, 2024

(Unaudited)

Variance

Average Volume

Average Yields / Costs

Interest

Attributable to

30-Jun-24

31-Mar-24

Variance

30-Jun-24

31-Mar-24

Variance

30-Jun-24

31-Mar-24

Variance

Rate

Volume

(In millions)

(In thousands)

6,471

6,484

(13

)

5.49

Money market investments

88,316

88,516

(200

)

(24

)

(176

)

28,943

28,308

635

3.01

2.71

0.30

Investment securities [1]

216,922

191,103

25,819

20,755

5,064

)

5.69

3.75

1.94

Trading securities

367

311

137

(81

)

Total money market,

investment and trading

35,440

34,825

615

3.47

3.23

0.24

securities

305,605

279,930

25,675

20,868

4,807

Loans:

17,707

17,613

6.86

6.84

0.02

Commercial

302,003

299,504

2,499

899

1,600

1,070

992

9.11

8.96

0.15

Construction

24,224

22,100

2,124

375

1,749

1,789

1,742

6.86

6.74

0.12

Leasing

30,697

29,353

1,344

554

790

7,817

7,723

5.66

5.62

0.04

Mortgage

110,673

108,543

2,130

803

1,327

3,192

3,227

(35

)

13.97

13.90

0.07

Consumer

110,906

111,490

(584

)

453

(1,037

)

3,819

3,763

8.88

8.77

0.11

Auto

84,268

82,054

2,214

985

1,229

35,394

35,060

334

7.52

7.48

0.04

Total loans

662,771

653,044

9,727

4,069

5,658

70,834

69,885

949

5.49

5.36

0.13

Total earning assets

968,376

932,974

35,402

24,937

10,465

Interest bearing deposits:

26,105

25,703

402

3.60

3.63

(0.03

)

NOW and money market [2]

233,345

232,129

1,216

(3,124

)

4,340

14,732

14,700

0.92

0.93

(0.01

)

Savings

33,795

34,171

(376

)

(424

)

9,014

8,547

467

3.25

2.97

0.28

Time deposits

72,799

63,196

9,603

5,497

4,106

49,851

48,950

901

2.74

2.71

0.03

Total interest bearing deposits

339,939

329,496

10,443

1,949

8,494

15,176

15,083

Non-interest bearing demand deposits

65,027

64,033

994

2.10

2.07

0.03

Total deposits

339,939

329,496

10,443

1,949

8,494

)

5.64

5.70

(0.06

)

Short-term borrowings

1,126

1,192

(66

)

(11

)

(55

)

Other medium and

978

998

(20

)

5.16

5.13

0.03

long-term debt

12,530

12,709

(179

)

(108

)

(71

)

Total interest bearing

50,909

50,032

877

2.79

2.76

0.03

liabilities (excluding demand deposits)

353,595

343,397

10,198

1,830

8,368

4,749

4,770

(21

)

Other sources of funds

70,834

69,885

949

2.01

1.98

0.03

Total source of funds

353,595

343,397

10,198

1,830

8,368

Net interest margin/

3.48

3.38

0.10

income on a taxable equivalent basis (Non-GAAP)

614,781

589,577

25,204

23,107

2,097

2.70

2.60

0.10

Net interest spread

Taxable equivalent adjustment

46,469

38,833

7,636

Net interest margin/ income

3.22

3.16

0.06

non-taxable equivalent basis (GAAP)

568,312

550,744

17,568

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

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

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

Popular, Inc.

Financial Supplement to Second Quarter 2024 Earnings Release

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

For the quarters ended June 30, 2024 and June 30, 2023

(Unaudited)

Variance

Average Volume

Average Yields / Costs

Interest

Attributable to

30-Jun-24

30-Jun-23

Variance

30-Jun-24

30-Jun-23

Variance

30-Jun-24

30-Jun-23

Variance

Rate

Volume

(In millions)

(In thousands)

6,471

7,851

(1,380

)

5.49

5.15

0.34

Money market investments

88,316

100,776

(12,460

)

6,081

(18,541

)

28,943

27,362

1,581

3.01

2.00

1.01

Investment securities [1]

216,922

136,408

80,514

72,325

8,189

)

5.69

4.65

1.04

Trading securities

367

370

)

(76

)

Total money market,

investment and trading

35,440

35,245

195

3.47

2.70

0.77

securities

305,605

237,554

68,051

78,479

(10,428

)

Loans:

17,707

16,237

1,470

6.86

6.52

0.34

Commercial

302,003

263,934

38,069

13,404

24,665

1,070

737

333

9.11

8.95

0.16

Construction

24,224

16,442

7,782

242

7,540

1,789

1,632

157

6.86

6.30

0.56

Leasing

30,697

25,711

4,986

2,394

2,592

7,817

7,409

408

5.66

5.47

0.19

Mortgage

110,673

101,304

9,369

3,666

5,703

3,192

3,075

117

13.97

13.21

0.76

Consumer

110,906

101,295

9,611

5,103

4,508

3,819

3,593

226

8.88

8.31

0.57

Auto

84,268

74,467

9,801

4,970

4,831

35,394

32,683

2,711

7.52

7.15

0.37

Total loans

662,771

583,153

79,618

29,779

49,839

70,834

67,928

2,906

5.49

4.84

0.65

Total earning assets

968,376

820,707

147,669

108,258

39,411

Interest bearing deposits:

26,105

24,230

1,875

3.60

2.91

0.69

NOW and money market [2]

233,345

175,640

57,705

43,783

13,922

14,732

14,763

(31

)

0.92

0.66

0.26

Savings

33,795

24,446

9,349

7,966

1,383

9,014

7,715

1,299

3.25

2.26

0.99

Time deposits

72,799

43,402

29,397

18,707

10,690

49,851

46,708

3,143

2.74

2.09

0.65

Total interest bearing deposits

339,939

243,488

96,451

70,456

25,995

15,176

15,480

(304

)

Non-interest bearing demand deposits

65,027

62,188

2,839

2.10

1.57

0.53

Total deposits

339,939

243,488

96,451

70,456

25,995

125

(45

)

5.64

5.19

0.45

Short-term borrowings

1,126

1,624

(498

)

129

(627

)

Other medium and

978

1,299

(321

)

5.16

5.33

(0.17

)

long-term debt

12,530

17,227

(4,697

)

1,007

(5,704

)

Total interest bearing

50,909

48,132

2,777

2.79

2.19

0.60

liabilities (excluding demand deposits)

353,595

262,339

91,256

71,592

19,664

4,749

4,316

433

Other sources of funds

70,834

67,928

2,906

2.01

1.55

0.46

Total source of funds

353,595

262,339

91,256

71,592

19,664

Net interest margin/

3.48

3.29

0.19

income on a taxable equivalent basis (Non-GAAP)

614,781

558,368

56,413

36,666

19,747

2.70

2.65

0.05

Net interest spread

Taxable equivalent adjustment

46,469

26,700

19,769

Net interest margin/ income

3.22

3.14

0.08

non-taxable equivalent basis (GAAP)

568,312

531,668

36,644

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

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

Popular, Inc.

Financial Supplement to Second Quarter 2024 Earnings Release

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

(Unaudited)

Variance

Average Volume

Average Yields / Costs

Interest

Attributable to

30-Jun-24

30-Jun-23

Variance

30-Jun-24

30-Jun-23

Variance

30-Jun-24

30-Jun-23

Variance

Rate

Volume

(In millions)

(In thousands)

6,477

6,800

(323

)

5.49

4.94

0.55

Money market investments

176,832

166,500

10,332

18,468

(8,136

)

28,626

28,108

518

2.86

2.11

0.75

Investment securities [1]

408,024

295,322

112,702

107,442

5,260

)

4.60

4.56

0.04

Trading securities

678

708

(30

)

(37

)

Total money market,

investment and trading

35,133

34,939

194

3.35

2.67

0.68

securities

585,534

462,530

123,004

125,917

(2,913

)

Loans:

17,660

16,000

1,660

6.85

6.42

0.43

Commercial

601,507

509,403

92,104

37,134

54,970

1,031

734

297

9.04

8.68

0.36

Construction

46,324

31,598

14,726

1,454

13,272

1,766

1,610

156

6.80

6.21

0.59

Leasing

60,051

49,993

10,058

4,994

5,064

7,770

7,398

372

5.64

5.46

0.18

Mortgage

219,216

202,076

17,140

6,783

10,357

3,208

3,049

159

13.94

13.03

0.91

Consumer

222,396

197,010

25,386

13,546

11,840

3,791

3,576

215

8.82

8.23

0.59

Auto

166,322

145,874

20,448

11,419

9,029

35,226

32,367

2,859

7.50

7.06

0.44

Total loans

1,315,816

1,135,954

179,862

75,330

104,532

70,359

67,306

3,053

5.43

4.78

0.65

Total earning assets

1,901,350

1,598,484

302,866

201,247

101,619

Interest bearing deposits:

25,904

23,774

2,130

3.61

2.72

0.89

NOW and money market [2]

465,474

320,610

144,864

113,900

30,964

14,716

14,895

(179

)

0.93

0.57

0.36

Savings

67,966

41,889

26,077

24,160

1,917

8,780

7,409

1,371

3.11

2.02

1.09

Time deposits

135,995

74,204

61,791

40,371

21,420

49,400

46,078

3,322

2.73

1.91

0.82

Total interest bearing deposits

669,435

436,703

232,732

178,431

54,301

15,129

15,592

(463

)

Non-interest bearing demand deposits

64,529

61,670

2,859

2.09

1.43

0.66

Total deposits

669,435

436,703

232,732

178,431

54,301

186

(104

)

5.67

4.89

0.78

Short-term borrowings

2,318

4,509

(2,191

)

1,603

(3,794

)

Other medium and

988

1,124

(136

)

5.13

5.10

0.03

long-term debt

25,239

28,493

(3,254

)

(3,268

)

Total interest bearing

50,470

47,388

3,082

2.78

2.00

0.78

liabilities (excluding demand deposits)

696,992

469,705

227,287

180,048

47,239

4,760

4,326

434

Other sources of funds

70,359

67,306

3,053

1.99

1.41

0.58

Total source of funds

696,992

469,705

227,287

180,048

47,239

Net interest margin/

3.44

3.37

0.07

income on a taxable equivalent basis (Non-GAAP)

1,204,358

1,128,779

75,579

21,199

54,380

2.65

2.78

(0.13

)

Net interest spread

Taxable equivalent adjustment

85,302

65,455

19,847

Net interest margin/ income

3.20

3.18

0.02

non-taxable equivalent basis (GAAP)

1,119,056

1,063,324

55,732

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

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

Popular, Inc.

Financial Supplement to Second Quarter 2024 Earnings Release

Table G - Mortgage Banking Activities and Other Service Fees

(Unaudited)

Mortgage Banking Activities

Quarters ended

Variance

Six months ended

Variance

(In thousands)

30-Jun-24

31-Mar-24

30-Jun-23

Q2 2024 vs.Q1 2024

Q2 2024 vs.Q2 2023

30-Jun-24

30-Jun-23

2024 vs. 2023

Mortgage servicing fees, net of fair value adjustments:

Mortgage servicing fees

$7,602

$7,751

$8,369

$(149

)

$(767

)

$15,353

$17,058

$(1,705

)

Mortgage servicing rights fair value adjustments

(1,945

)

(3,439

)

(6,216

)

1,494

4,271

(5,384

)

(7,592

)

2,208

Total mortgage servicing fees, net of fair value adjustments

5,657

4,312

2,153

1,345

3,504

9,969

9,466

503

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

(61

)

(72

)

202

(126

)

Trading account profit:

Unrealized gains on outstanding derivative positions

101

246

(45

)

(190

)

157

115

Realized gains on closed derivative positions

111

(102

)

167

(155

)

Total trading account profit

104

357

(39

)

(292

)

169

282

(113

)

Losses on repurchased loans, including interest advances

)

(130

)

(133

)

129

132

(131

)

(234

)

103

Total mortgage banking activities

$5,723

$4,360

$2,316

$1,363

$3,407

$10,083

$9,716

$367

Other Service Fees

Quarters ended

Variance

Six months ended

Variance

(In thousands)

30-Jun-24

31-Mar-24

30-Jun-23

Q2 2024 vs.Q1 2024

Q2 2024 vs.Q2 2023

30-Jun-24

30-Jun-23

2024 vs. 2023

Other service fees:

Debit card fees

$16,298

$14,248

$13,600

$2,050

$2,698

$30,546

$26,766

$3,780

Insurance fees

13,368

14,689

14,625

(1,321

)

(1,257

)

28,057

28,498

(441

)

Credit card fees

41,626

40,853

42,644

773

(1,018

)

82,479

83,142

(663

)

Sale and administration of investment products

7,850

7,427

6,076

423

1,774

15,277

12,634

2,643

Trust fees

6,622

6,707

6,600

(85

)

13,329

12,375

954

Other fees

11,099

10,348

10,720

751

379

21,447

20,926

521

Total other service fees

$96,863

$94,272

$94,265

$2,591

$2,598

$191,135

$184,341

$6,794

Popular, Inc.

Financial Supplement to Second Quarter 2024 Earnings Release

Table H - Loans and Deposits

(Unaudited)

Loans - Ending Balances

Variance

(In thousands)

30-Jun-24

31-Mar-24

30-Jun-23

Q2 2024 vs.Q1 2024

% of Change

Q2 2024 vs.Q2 2023

% of Change

Loans held-in-portfolio:

Commercial

Commercial multi-family

$2,384,480

$2,384,635

$2,331,499

$(155

)

(0.01

$52,981

2.27

Commercial real estate non-owner occupied

5,004,472

5,057,059

4,744,256

(52,587

)

(1.04

260,216

5.48

Commercial real estate owner occupied

3,143,817

3,117,844

3,041,398

25,973

0.83

102,419

3.37

Commercial and industrial

7,195,357

7,025,483

6,251,147

169,874

2.42

944,210

15.10

Total Commercial

17,728,126

17,585,021

16,368,300

143,105

0.81

1,359,826

8.31

Construction

1,105,759

1,009,303

819,903

96,456

9.56

285,856

34.86

Leasing

1,828,048

1,765,413

1,661,523

62,635

3.55

166,525

10.02

Mortgage

7,883,726

7,783,662

7,449,078

100,064

1.29

434,648

5.83

Consumer

Credit cards

1,162,557

1,142,153

1,057,389

20,404

1.79

105,168

9.95

Home equity lines of credit

68,992

66,717

68,440

2,275

3.41

552

0.81

Personal

1,879,619

1,897,010

1,896,594

(17,391

)

(0.92

(16,975

)

(0.90

Auto

3,773,292

3,706,854

3,565,533

66,438

1.79

207,759

5.83

Other

161,501

162,605

144,162

(1,104

)

(0.68

17,339

12.03

Total Consumer

7,045,961

6,975,339

6,732,118

70,622

1.01

313,843

4.66

Total loans held-in-portfolio

$35,591,620

$35,118,738

$33,030,922

$472,882

1.35

$2,560,698

7.75

Loans held-for-sale:

Mortgage

$8,225

$5,352

$9,509

$2,873

53.68

$(1,284

)

(13.50

Credit cards

45,912

N.M.

(45,912

)

(100.00

Total loans held-for-sale

$8,225

$5,352

$55,421

$2,873

53.68

$(47,196

)

(85.16

Total loans

$35,599,845

$35,124,090

$33,086,343

$475,755

1.35

$2,513,502

7.60

N.M. - Not meaningful.

Deposits - Ending Balances

Variance

(In thousands)

30-Jun-24

31-Mar-24

30-Jun-23

Q2 2024 vs. Q1 2024

% of Change

Q2 2024 vs.Q2 2023

% of Change

Demand deposits [1]

$25,879,406

$26,473,367

$27,690,840

$(593,961

)

(2.24

$(1,811,434

)

(6.54

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

29,724,473

27,852,551

27,539,343

1,871,922

6.72

2,185,130

7.93

Savings, NOW and money market deposits (brokered)

729,326

727,794

772,783

1,532

0.21

(43,457

)

(5.62

Time deposits (non-brokered)

8,225,750

7,850,459

7,231,840

375,291

4.78

993,910

13.74

Time deposits (brokered CDs)

971,907

904,613

770,012

67,294

7.44

201,895

26.22

Total deposits

$65,530,862

$63,808,784

$64,004,818

$1,722,078

2.70

$1,526,044

2.38

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

Popular, Inc.

Financial Supplement to Second Quarter 2024 Earnings Release

Table I - Loan Delinquency - BPPR Operations

(Unaudited)

30-Jun-24

BPPR

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

233

443

676

304,235

304,911

443

Commercial real estate:

Non-owner occupied

1,713

7,484

9,197

2,970,430

2,979,627

7,484

Owner occupied

1,770

232

25,285

27,287

1,389,825

1,417,112

25,285

Commercial and industrial

5,387

2,097

26,560

34,044

4,968,740

5,002,784

22,958

3,602

Construction

5,479

178,460

183,939

Mortgage

287,468

105,266

373,306

766,040

5,824,480

6,590,520

163,790

209,516

Leasing

20,631

5,071

7,059

32,761

1,795,287

1,828,048

7,059

Consumer:

Credit cards

15,032

9,436

23,931

48,399

1,114,140

1,162,539

23,931

Home equity lines of credit

2,216

Personal

21,535

12,755

19,650

53,940

1,690,933

1,744,873

19,650

Auto

103,873

24,943

39,333

168,149

3,605,143

3,773,292

39,333

Other

976

258

1,207

2,441

151,092

153,533

885

322

Total

464,097

160,058

524,258

1,148,413

23,994,981

25,143,394

286,887

237,371

31-Mar-24

BPPR

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

19,384

2,027

106

21,517

282,134

303,651

106

Commercial real estate:

Non-owner occupied

2,378

3,278

7,922

13,578

2,982,907

2,996,485

7,922

Owner occupied

6,628

432

26,124

33,184

1,392,908

1,426,092

26,124

Commercial and industrial

3,020

8,552

33,741

45,313

4,699,810

4,745,123

29,171

4,570

Construction

162,724

Mortgage

254,008

107,224

385,062

746,294

5,737,257

6,483,551

166,473

218,589

Leasing

19,936

4,752

7,267

31,955

1,733,458

1,765,413

7,267

Consumer:

Credit cards

13,034

9,528

23,858

46,420

1,095,716

1,142,136

23,858

Home equity lines of credit

226

233

2,336

2,569

Personal

19,822

12,169

19,092

51,083

1,695,410

1,746,493

19,092

Auto

82,957

18,420

41,807

143,184

3,563,670

3,706,854

41,807

Other

1,022

150

939

2,111

151,567

153,678

632

307

Total

422,189

166,758

545,925

1,134,872

23,499,897

24,634,769

298,594

247,331

Variance

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

(19,151

)

(2,027

)

337

(20,841

)

22,101

1,260

337

Commercial real estate:

Non-owner occupied

(665

)

(3,278

)

(438

)

(4,381

)

(12,477

)

(16,858

)

(438

)

Owner occupied

(4,858

)

(200

)

(839

)

(5,897

)

(3,083

)

(8,980

)

(839

)

Commercial and industrial

2,367

(6,455

)

(7,181

)

(11,269

)

268,930

257,661

(6,213

)

(968

)

Construction

5,479

15,736

21,215

Mortgage

33,460

(1,958

)

(11,756

)

19,746

87,223

106,969

(2,683

)

(9,073

)

Leasing

695

319

(208

)

806

61,829

62,635

(208

)

Consumer:

Credit cards

1,998

(92

)

1,979

18,424

20,403

Home equity lines of credit

(226

)

(233

)

(120

)

(353

)

Personal

1,713

586

558

2,857

(4,477

)

(1,620

)

558

Auto

20,916

6,523

(2,474

)

24,965

41,473

66,438

(2,474

)

Other

(46

)

108

268

330

(475

)

(145

)

253

Total

41,908

(6,700

)

(21,667

)

13,541

495,084

508,625

(11,707

)

(9,960

)

Popular, Inc.

Financial Supplement to Second Quarter 2024 Earnings Release

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

(Unaudited)

30-Jun-24

Popular U.S.

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

2,962

8,700

11,662

2,067,907

2,079,569

8,700

Commercial real estate:

Non-owner occupied

2,494

2,783

1,025

6,302

2,018,543

2,024,845

1,025

Owner occupied

17,095

22,256

39,351

1,687,354

1,726,705

22,256

Commercial and industrial

5,181

304

5,992

11,477

2,181,096

2,192,573

5,782

210

Construction

921,820

Mortgage

1,309

23,479

11,554

36,342

1,256,864

1,293,206

11,554

Consumer:

Credit cards

Home equity lines of credit

890

462

3,780

5,132

61,644

66,776

3,780

Personal

1,770

1,689

1,851

5,310

129,436

134,746

1,851

Other

1,204

6,764

7,968

Total

15,810

45,812

55,158

116,780

10,331,446

10,448,226

54,948

210

31-Mar-24

Popular U.S.

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

3,434

8,700

12,134

2,068,850

2,080,984

8,700

Commercial real estate:

Non-owner occupied

740

1,364

2,407

4,511

2,056,063

2,060,574

2,407

Owner occupied

6,107

19,009

3,877

28,993

1,662,759

1,691,752

3,877

Commercial and industrial

9,961

628

6,634

17,223

2,263,137

2,280,360

6,423

211

Construction

8,825

837,754

846,579

Mortgage

25,558

533

28,071

54,162

1,245,949

1,300,111

28,071

Consumer:

Credit cards

Home equity lines of credit

846

390

3,986

5,222

58,926

64,148

3,986

Personal

2,142

1,695

2,068

5,905

144,612

150,517

2,068

Other

8,926

8,927

Total

57,613

23,619

55,744

136,976

10,346,993

10,483,969

55,533

211

Variance

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

(472

)

(472

)

(943

)

(1,415

)

Commercial real estate:

Non-owner occupied

1,754

1,419

(1,382

)

1,791

(37,520

)

(35,729

)

(1,382

)

Owner occupied

(6,107

)

(1,914

)

18,379

10,358

24,595

34,953

18,379

Commercial and industrial

(4,780

)

(324

)

(642

)

(5,746

)

(82,041

)

(87,787

)

(641

)

Construction

(8,825

)

(8,825

)

84,066

75,241

Mortgage

(24,249

)

22,946

(16,517

)

(17,820

)

10,915

(6,905

)

(16,517

)

Consumer:

Credit cards

Home equity lines of credit

(206

)

(90

)

2,718

2,628

(206

)

Personal

(372

)

(217

)

(595

)

(15,176

)

(15,771

)

(217

)

Other

1,204

)

1,203

(2,162

)

(959

)

Total

(41,803

)

22,193

(586

)

(20,196

)

(15,547

)

(35,743

)

(585

)

Popular, Inc.

Financial Supplement to Second Quarter 2024 Earnings Release

Table K - Loan Delinquency - Consolidated

(Unaudited)

30-Jun-24

Popular, Inc.

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

3,195

9,143

12,338

2,372,142

2,384,480

9,143

Commercial real estate:

Non-owner occupied

4,207

2,783

8,509

15,499

4,988,973

5,004,472

8,509

Owner occupied

1,770

17,327

47,541

66,638

3,077,179

3,143,817

47,541

Commercial and industrial

10,568

2,401

32,552

45,521

7,149,836

7,195,357

28,740

3,812

Construction

5,479

1,100,280

1,105,759

Mortgage

288,777

128,745

384,860

802,382

7,081,344

7,883,726

175,344

209,516

Leasing

20,631

5,071

7,059

32,761

1,795,287

1,828,048

7,059

Consumer:

Credit cards

15,032

9,436

23,931

48,399

1,114,158

1,162,557

23,931

Home equity lines of credit

890

462

3,780

5,132

63,860

68,992

3,780

Personal

23,305

14,444

21,501

59,250

1,820,369

1,879,619

21,501

Auto

103,873

24,943

39,333

168,149

3,605,143

3,773,292

39,333

Other

2,180

258

1,207

3,645

157,856

161,501

885

322

Total

479,907

205,870

579,416

1,265,193

34,326,427

35,591,620

341,835

237,581

31-Mar-24

Popular, Inc.

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

22,818

2,027

8,806

33,651

2,350,984

2,384,635

8,806

Commercial real estate:

Non-owner occupied

3,118

4,642

10,329

18,089

5,038,970

5,057,059

10,329

Owner occupied

12,735

19,441

30,001

62,177

3,055,667

3,117,844

30,001

Commercial and industrial

12,981

9,180

40,375

62,536

6,962,947

7,025,483

35,594

4,781

Construction

8,825

1,000,478

1,009,303

Mortgage

279,566

107,757

413,133

800,456

6,983,206

7,783,662

194,544

218,589

Leasing

19,936

4,752

7,267

31,955

1,733,458

1,765,413

7,267

Consumer:

Credit cards

13,034

9,528

23,858

46,420

1,095,733

1,142,153

23,858

Home equity lines of credit

846

616

3,993

5,455

61,262

66,717

3,986

Personal

21,964

13,864

21,160

56,988

1,840,022

1,897,010

21,160

Auto

82,957

18,420

41,807

143,184

3,563,670

3,706,854

41,807

Other

1,022

150

940

2,112

160,493

162,605

633

307

Total

479,802

190,377

601,669

1,271,848

33,846,890

35,118,738

354,127

247,542

Variance

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

or more

past due

Current

Loans HIP

loans

Commercial multi-family

(19,623

)

(2,027

)

337

(21,313

)

21,158

(155

)

337

Commercial real estate:

Non-owner occupied

1,089

(1,859

)

(1,820

)

(2,590

)

(49,997

)

(52,587

)

(1,820

)

Owner occupied

(10,965

)

(2,114

)

17,540

4,461

21,512

25,973

17,540

Commercial and industrial

(2,413

)

(6,779

)

(7,823

)

(17,015

)

186,889

169,874

(6,854

)

(969

)

Construction

(3,346

)

(3,346

)

99,802

96,456

Mortgage

9,211

20,988

(28,273

)

1,926

98,138

100,064

(19,200

)

(9,073

)

Leasing

695

319

(208

)

806

61,829

62,635

(208

)

Consumer:

Credit cards

1,998

(92

)

1,979

18,425

20,404

Home equity lines of credit

(154

)

(213

)

(323

)

2,598

2,275

(206

)

Personal

1,341

580

341

2,262

(19,653

)

(17,391

)

341

Auto

20,916

6,523

(2,474

)

24,965

41,473

66,438

(2,474

)

Other

1,158

108

267

1,533

(2,637

)

(1,104

)

252

Total

105

15,493

(22,253

)

(6,655

)

479,537

472,882

(12,292

)

(9,961

)

Popular, Inc.

Financial Supplement to Second Quarter 2024 Earnings Release

Table L - Non-Performing Assets

(Unaudited)

Variance

(In thousands)

30-Jun-24

As a % of loans HIP by category

31-Mar-24

As a % of loans HIP by category

30-Jun-23

As a % of loans HIP by category

Q2 2024 vs. Q1 2024

Q2 2024 vs. Q2 2023

Non-accrual loans:

Commercial

Commercial multi-family

$9,143

0.4

$8,806

0.4

$602

$337

$8,541

Commercial real estate non-owner occupied

8,509

0.2

10,329

0.2

23,061

0.5

(1,820

)

(14,552

)

Commercial real estate owner occupied

47,541

1.5

30,001

1.0

40,927

1.3

17,540

6,614

Commercial and industrial

28,740

0.4

35,594

0.5

35,736

0.6

(6,854

)

(6,996

)

Total Commercial

93,933

0.5

84,730

0.5

100,326

0.6

9,203

(6,393

)

Construction

9,284

1.1

(9,284

)

Leasing

7,059

0.4

7,267

0.4

4,743

0.3

(208

)

2,316

Mortgage

175,344

2.2

194,544

2.5

208,796

2.8

(19,200

)

(33,452

)

Consumer

Home equity lines of credit

3,780

5.5

3,986

6.0

4,252

6.2

(206

)

(472

)

Personal

21,501

1.1

21,160

1.1

20,164

1.1

341

1,337

Auto

39,333

1.0

41,807

1.1

36,204

1.0

(2,474

)

3,129

Other Consumer

885

0.5

633

0.4

1,735

1.2

252

(850

)

Total Consumer

65,499

0.9

67,586

1.0

62,355

0.9

(2,087

)

3,144

Total non-performing loans held-in-portfolio

341,835

1.0

354,127

1.0

385,504

1.2

(12,292

)

(43,669

)

Other real estate owned (“OREO”)

70,225

80,542

86,216

(10,317

)

(15,991

)

Total non-performing assets [1]

$412,060

$434,669

$471,720

$(22,609

)

$(59,660

)

Accruing loans past due 90 days or more [2]

$237,581

$247,542

$273,327

$(9,961

)

$(35,746

)

Ratios:

Non-performing assets to total assets

0.57

0.61

0.67

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

0.96

1.01

1.17

Allowance for credit losses to loans held-in-portfolio

2.05

2.11

2.12

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

213.58

208.84

181.63

[1] There were no non-performing loans held-for-sale as of June 30, 2024, March 31, 2024 and June 30, 2023.

[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 $10 million at June 30, 2024, 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, 2024 - $10 million; June 30, 2023 - $7 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 $81 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2024 (March 31, 2024 - $93 million; June 30, 2023 - $133 million). Furthermore, the Corporation has approximately $34 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, 2024- $37 million; June 30, 2023 - $39 million).

Popular, Inc.

Financial Supplement to Second Quarter 2024 Earnings Release

Table M - Activity in Non-Performing Loans

(Unaudited)

Commercial loans held-in-portfolio:

Quarter ended

30-Jun-24

31-Mar-24

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$63,323

$21,407

$84,730

$72,992

$11,163

$84,155

Plus:

New non-performing loans

4,031

21,940

25,971

4,343

15,039

19,382

Advances on existing non-performing loans

282

Less:

Non-performing loans transferred to OREO

(280

)

(280

)

Non-performing loans charged-off

(5,700

)

(5,700

)

(7,999

)

(950

)

(8,949

)

Loans returned to accrual status / loan collections

(5,204

)

(5,866

)

(11,070

)

(6,013

)

(3,865

)

(9,878

)

Ending balance NPLs

$56,170

$37,763

$93,933

$63,323

$21,407

$84,730

Construction loans held-in-portfolio:

Quarter ended

30-Jun-24

31-Mar-24

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$6,378

Less:

Loans returned to accrual status / loan collections

(6,378

)

(6,378

)

Ending balance NPLs

Mortgage loans held-in-portfolio:

Quarter ended

30-Jun-24

31-Mar-24

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$166,473

$28,071

$194,544

$175,106

$11,191

$186,297

Plus:

New non-performing loans

37,009

3,967

40,976

29,160

20,334

49,494

Advances on existing non-performing loans

Less:

Non-performing loans transferred to OREO

(4,260

)

(24

)

(4,284

)

(4,109

)

(4,109

)

Non-performing loans charged-off

110

(18

)

(310

)

(310

)

Loans returned to accrual status / loan collections

(35,542

)

(20,458

)

(56,000

)

(33,374

)

(3,456

)

(36,830

)

Ending balance NPLs

$163,790

$11,554

$175,344

$166,473

$28,071

$194,544

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

Quarter ended

30-Jun-24

31-Mar-24

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$229,796

$49,478

$279,274

$254,476

$22,354

$276,830

Plus:

New non-performing loans

41,040

25,907

66,947

33,503

35,373

68,876

Advances on existing non-performing loans

298

Less:

Non-performing loans transferred to OREO

(4,540

)

(24

)

(4,564

)

(4,109

)

(4,109

)

Non-performing loans charged-off

(5,590

)

(18

)

(5,608

)

(8,309

)

(950

)

(9,259

)

Loans returned to accrual status / loan collections

(40,746

)

(26,324

)

(67,070

)

(45,765

)

(7,321

)

(53,086

)

Ending balance NPLs

$219,960

$49,317

$269,277

$229,796

$49,478

$279,274

Popular, Inc.

Financial Supplement to Second Quarter 2024 Earnings Release

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

(Unaudited)

Quarters ended

(In thousands)

30-Jun-24

31-Mar-24

30-Jun-23

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

$739,544

$729,341

$689,120

Provision for credit losses

44,157

72,386

35,661

Initial allowance for credit losses - PCD Loans

783,707

801,744

724,791

Net loans charge-off (recovered)- BPPR

Commercial:

Commercial multi-family

)

Commercial real estate non-owner occupied

(44

)

(325

)

430

Commercial real estate owner occupied

(1,134

)

2,247

(329

)

Commercial and industrial

6,021

5,109

(1,431

)

Total Commercial

4,843

7,030

(1,331

)

Leasing

2,700

3,685

1,593

Mortgage

(3,749

)

(4,426

)

(3,384

)

Consumer:

Credit cards

13,712

13,958

6,502

Home equity lines of credit

104

(25

)

Personal

20,975

21,940

12,641

Auto

10,257

13,846

2,491

Other Consumer

529

424

200

Total Consumer

45,514

50,272

21,809

Total net charged-off BPPR

$49,308

$56,561

$18,687

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

Commercial:

Commercial multi-family

)

440

)

Commercial real estate non-owner occupied

(42

)

(64

)

(66

)

Commercial real estate owner occupied

(59

)

(24

)

156

Commercial and industrial

988

408

1,734

Total Commercial

883

760

1,823

Construction

(100

)

Mortgage

(17

)

(25

)

(109

)

Consumer:

Home equity lines of credit

(383

)

(148

)

(166

)

Personal

3,941

5,027

3,708

Other Consumer

)

Total Consumer

3,556

4,904

3,589

Total net charged-off Popular U.S.

$4,322

$5,639

$5,303

Total loans charged-off - Popular, Inc.

$53,630

$62,200

$23,990

Net write- downs [1]

$601

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

$730,077

$739,544

$700,200

Balance at beginning of period - unfunded commitments

$16,767

$17,006

$9,415

Provision for credit losses (benefit)

2,118

(239

)

2,178

Balance at end of period - unfunded commitments [2]

$18,885

$16,767

$11,593

POPULAR, INC.

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

0.61

0.71

0.29

Provision for credit losses - loan portfolios to net charge-offs

82.34

116.38

148.65

BPPR

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

0.79

0.92

0.33

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

98.53

107.86

151.86

Popular U.S.

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

0.16

0.21

0.22

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

(102.45

)

201.77

137.32

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

[2] 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 2024 Earnings Release

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

(Unaudited)

30-Jun-24

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

$11,180

$2,384,480

0.47

Commercial real estate - non-owner occupied

64,235

5,004,472

1.28

Commercial real estate - owner occupied

58,190

3,143,817

1.85

Commercial and industrial

126,482

7,195,357

1.76

Total commercial

$260,087

$17,728,126

1.47

Construction

12,889

1,105,759

1.17

Mortgage

83,289

7,883,726

1.06

Leasing

14,385

1,828,048

0.79

Consumer:

Credit cards

86,313

1,162,557

7.42

Home equity lines of credit

1,726

68,992

2.50

Personal

107,448

1,879,619

5.72

Auto

157,449

3,773,292

4.17

Other consumer

6,491

161,501

4.02

Total consumer

$359,427

$7,045,961

5.10

Total

$730,077

$35,591,620

2.05

31-Mar-24

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

$12,743

$2,384,635

0.53

Commercial real estate - non-owner occupied

65,624

5,057,059

1.30

Commercial real estate - owner occupied

63,807

3,117,844

2.05

Commercial and industrial

120,418

7,025,483

1.71

Total commercial

$262,592

$17,585,021

1.49

Construction

11,139

1,009,303

1.10

Mortgage

86,438

7,783,662

1.11

Leasing

8,991

1,765,413

0.51

Consumer:

Credit cards

88,169

1,142,153

7.72

Home equity lines of credit

1,872

66,717

2.81

Personal

116,077

1,897,010

6.12

Auto

157,456

3,706,854

4.25

Other consumer

6,810

162,605

4.19

Total consumer

$370,384

$6,975,339

5.31

Total

$739,544

$35,118,738

2.11

Variance

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

$(1,563

)

$(155

)

(0.06

)

Commercial real estate - non-owner occupied

(1,389

)

(52,587

)

(0.02

)

Commercial real estate - owner occupied

(5,617

)

25,973

(0.20

)

Commercial and industrial

6,064

169,874

0.05

Total commercial

$(2,505

)

$143,105

(0.02

)

Construction

1,750

96,456

0.07

Mortgage

(3,149

)

100,064

(0.05

)

Leasing

5,394

62,635

0.28

Consumer:

Credit cards

(1,856

)

20,404

(0.30

)

Home equity lines of credit

(146

)

2,275

(0.31

)

Personal

(8,629

)

(17,391

)

(0.40

)

Auto

)

66,438

(0.08

)

Other consumer

(319

)

(1,104

)

(0.17

)

Total consumer

$(10,957

)

$70,622

(0.21

)

Total

$(9,467

)

$472,882

(0.06

)

Popular, Inc.

Financial Supplement to Second Quarter 2024 Earnings Release

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

(Unaudited)

30-Jun-24

BPPR

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

$3,303

$304,911

1.08

Commercial real estate - non-owner occupied

53,386

2,979,627

1.79

Commercial real estate - owner occupied

39,375

1,417,112

2.78

Commercial and industrial

111,263

5,002,784

2.22

Total commercial

$207,327

$9,704,434

2.14

Construction

3,638

183,939

1.98

Mortgage

73,900

6,590,520

1.12

Leasing

14,385

1,828,048

0.79

Consumer:

Credit cards

86,313

1,162,539

7.42

Home equity lines of credit

2,216

3.75

Personal

94,021

1,744,873

5.39

Auto

157,449

3,773,292

4.17

Other consumer

6,489

153,533

4.23

Total consumer

$344,355

$6,836,453

5.04

Total

$643,605

$25,143,394

2.56

31-Mar-24

BPPR

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

$3,567

$303,651

1.17

Commercial real estate - non-owner occupied

53,666

2,996,485

1.79

Commercial real estate - owner occupied

43,537

1,426,092

3.05

Commercial and industrial

102,844

4,745,123

2.17

Total commercial

$203,614

$9,471,351

2.15

Construction

3,114

162,724

1.91

Mortgage

76,564

6,483,551

1.18

Leasing

8,991

1,765,413

0.51

Consumer:

Credit cards

88,169

1,142,136

7.72

Home equity lines of credit

102

2,569

3.97

Personal

99,504

1,746,493

5.70

Auto

157,456

3,706,854

4.25

Other consumer

6,808

153,678

4.43

Total consumer

$352,039

$6,751,730

5.21

Total

$644,322

$24,634,769

2.62

Variance

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

$(264

)

$1,260

(0.09

)

Commercial real estate - non-owner occupied

(280

)

(16,858

)

Commercial real estate - owner occupied

(4,162

)

(8,980

)

(0.27

)

Commercial and industrial

8,419

257,661

0.05

Total commercial

$3,713

$233,083

(0.01

)

Construction

524

21,215

0.07

Mortgage

(2,664

)

106,969

(0.06

)

Leasing

5,394

62,635

0.28

Consumer:

Credit cards

(1,856

)

20,403

(0.30

)

Home equity lines of credit

(19

)

(353

)

(0.22

)

Personal

(5,483

)

(1,620

)

(0.31

)

Auto

)

66,438

(0.08

)

Other consumer

(319

)

(145

)

(0.20

)

Total consumer

$(7,684

)

$84,723

(0.17

)

Total

$(717

)

$508,625

(0.06

)

Popular, Inc.

Financial Supplement to Second Quarter 2024 Earnings Release

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

(Unaudited)

30-Jun-24

Popular U.S.

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

$7,877

$2,079,569

0.38

Commercial real estate - non-owner occupied

10,849

2,024,845

0.54

Commercial real estate - owner occupied

18,815

1,726,705

1.09

Commercial and industrial

15,219

2,192,573

0.69

Total commercial

$52,760

$8,023,692

0.66

Construction

9,251

921,820

1.00

Mortgage

9,389

1,293,206

0.73

Consumer:

Credit cards

Home equity lines of credit

1,643

66,776

2.46

Personal

13,427

134,746

9.96

Other consumer

7,968

0.03

Total consumer

$15,072

$209,508

7.19

Total

$86,472

$10,448,226

0.83

31-Mar-24

Popular U.S.

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

$9,176

$2,080,984

0.44

Commercial real estate - non-owner occupied

11,958

2,060,574

0.58

Commercial real estate - owner occupied

20,270

1,691,752

1.20

Commercial and industrial

17,574

2,280,360

0.77

Total commercial

$58,978

$8,113,670

0.73

Construction

8,025

846,579

0.95

Mortgage

9,874

1,300,111

0.76

Consumer:

Credit cards

Home equity lines of credit

1,770

64,148

2.76

Personal

16,573

150,517

11.01

Other consumer

8,927

0.02

Total consumer

$18,345

$223,609

8.20

Total

$95,222

$10,483,969

0.91

Variance

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

$(1,299

)

$(1,415

)

(0.06

)

Commercial real estate - non-owner occupied

(1,109

)

(35,729

)

(0.04

)

Commercial real estate - owner occupied

(1,455

)

34,953

(0.11

)

Commercial and industrial

(2,355

)

(87,787

)

(0.08

)

Total commercial

$(6,218

)

$(89,978

)

(0.07

)

Construction

1,226

75,241

0.05

Mortgage

(485

)

(6,905

)

(0.03

)

Consumer:

Credit cards

Home equity lines of credit

(127

)

2,628

(0.30

)

Personal

(3,146

)

(15,771

)

(1.05

)

Other consumer

(959

)

0.01

Total consumer

$(3,273

)

$(14,101

)

(1.01

)

Total

$(8,750

)

$(35,743

)

(0.08

)

Popular, Inc.

Financial Supplement to Second Quarter 2024 Earnings Release

Table R - Reconciliation to GAAP Financial Measures

(Unaudited)

(In thousands, except share or per share information)

30-Jun-24

31-Mar-24

30-Jun-23

Total stockholders’ equity

$5,372,678

$5,177,314

$4,565,009

Less: Preferred stock

(22,143

)

(22,143

)

(22,143

)

Less: Goodwill

(804,428

)

(804,428

)

(827,428

)

Less: Other intangibles

(8,235

)

(8,969

)

(11,354

)

Total tangible common equity

$4,537,872

$4,341,774

$3,704,084

Total assets

$72,845,072

$70,936,939

$70,838,266

Less: Goodwill

(804,428

)

(804,428

)

(827,428

)

Less: Other intangibles

(8,235

)

(8,969

)

(11,354

)

Total tangible assets

$72,032,409

$70,123,542

$69,999,484

Tangible common equity to tangible assets

6.30

6.19

5.29

Common shares outstanding at end of period

72,365,926

72,284,875

72,103,969

Tangible book value per common share

$62.71

$60.06

$51.37

Quarterly average

Total stockholders’ equity [1]

$6,303,672

$6,198,740

$5,783,912

Average unrealized (gains) losses on AFS securities transferred to HTM

595,362

639,226

769,576

Adjusted total stockholder's equity

6,899,034

6,837,966

6,553,488

Less: Preferred Stock

(22,143

)

(22,143

)

(22,143

)

Less: Goodwill

(804,427

)

(804,427

)

(827,427

)

Less: Other intangibles

(8,706

)

(9,490

)

(11,875

)

Total tangible equity

$6,063,758

$6,001,906

$5,692,043

Return on average tangible common equity

11.77

6.90

10.63

[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240724246918/en/

Popular, Inc.

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

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

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