Popular, Inc. Announces Third Quarter 2024 Financial Results

Net income of $155.3 million in Q3 2024, compared to net income of $177.8 million in Q2 2024.
Net interest income of $572.5 million, an increase of $4.2 million compared to Q2 2024.
Net interest margin of 3.24% in Q3 2024, compared to 3.22% in Q2 2024; net interest margin on a taxable equivalent basis of 3.47% in Q3 2024, compared to 3.48% in Q2 2024.
Non-interest income of $164.1 million, compared to $166.3 million in Q2 2024.
Operating expenses amounted to $467.3 million, down by $2.3 million when compared to Q2 2024.
Credit quality metrics remained stable:
- Non-performing loans held-in-portfolio (“NPLs”) increased by $19.6 million from Q2 2024; NPLs to loans ratio remained flat at 1.0%;
- Net charge-offs (“NCOs”) increased by $4.9 million from Q2 2024; annualized NCOs to average loans held-in-portfolio at 0.65% vs. 0.61% in Q2 2024;
- Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.06% vs. 2.05% in Q2 2024; and
- ACL to NPLs at 206.0% vs. 213.6% in Q2 2024.
Money market and investment securities ending balances decreased by $1.8 billion from Q2 2024
- Average quarterly balances decreased by $808.2 million.
Loans ending balances, excluding loans held-for-sale, amounted to $36.2 billion, an increase of $603.3 million from Q2 2024.
- Average quarterly loan balances increased by $384.8 million.
Ending deposit balances amounted to $63.7 billion, a decrease of $1.9 billion from Q2 2024.
- Average quarterly deposit balances decreased by $519.9 million.
Completed the repurchase of 599,096 shares of common stock for $58.8 million at an average price of $98.11 per share, under the previously announced share repurchase authorization.
Common Equity Tier 1 ratio of 16.42%, Common Equity per share of $80.35 and Tangible Book Value per share of $69.04 at September 30, 2024, an increase of $6.33 per share from Q2 2024.

Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $155.3 million for the quarter ended September 30, 2024, compared to net income of $177.8 million for the quarter ended June 30, 2024.

Ignacio Alvarez, Chief Executive Officer, said: “Our results for the third quarter reflected an increase in net interest income, which was offset by a higher provision for credit losses. The increase in the provision was related in part to loan growth of nearly 2% during the quarter. Credit quality trends remained stable. While consumer portfolios reflected increased delinquencies, they remain slightly below pre-pandemic levels.

Capital continues to be a source of strength, evidenced by the increase in our dividend and stock repurchases. We also experienced healthy increases in our tangible book value per share and TCE ratio.

We continued to advance our business transformation, making meaningful progress in modernizing our customer channels and improving the customer experience. We are optimistic about the future, as we continue to leverage the opportunities stemming from our robust balance sheet, our dedicated team and extensive customer base.”

Earnings Highlights

(Unaudited)

Quarters ended

Nine months ended

(Dollars in thousands, except per share information)

30-Sep-24

30-Jun-24

30-Sep-23

30-Sep-24

30-Sep-23

Net interest income

$572,473

$568,312

$534,020

$1,691,529

$1,597,344

Provision for credit losses

71,448

46,794

45,117

190,840

129,946

Net interest income after provision for credit losses

501,025

521,518

488,903

1,500,689

1,467,398

Other non-interest income

164,082

166,306

159,549

494,206

481,981

Operating expenses

467,321

469,576

465,984

1,420,010

1,366,955

Income before income tax

197,786

218,248

182,468

574,885

582,424

Income tax expense

42,463

40,459

45,859

138,490

135,676

Net income

$155,323

$177,789

$136,609

$436,395

$446,748

Net income applicable to common stock

$154,970

$177,436

$136,256

$435,336

$445,689

Net income per common share-basic

$2.16

$2.47

$1.90

$6.06

$6.22

Net income per common share-diluted

$2.16

$2.46

$1.90

$6.05

$6.21

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.

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.

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

Net interest income for the quarter ended September 30, 2024, was $572.5 million, an increase of $4.2 million when compared to $568.3 million for the previous quarter. Net interest margin for the third quarter of 2024 was 3.24% compared to 3.22% in the prior quarter.

Net Interest Income and Net Interest Margin Taxable Equivalent

Net interest income on a taxable equivalent basis for the third quarter of 2024 was $612.9 million, compared to $614.8 million in the previous quarter, a decrease of $1.8 million. Net interest margin on a taxable equivalent basis for the third quarter of 2024 was 3.47%, compared to 3.48% in the second quarter of 2024 driven by lower exempt income from U.S. Treasury Securities.

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

lower interest income from investment securities by $14.6 million due to lower volume of U.S. Treasury Bills by $1.2 billion due to the slow down in the reinvestment activity of matured investments, in part due to a reduction in average deposit balances during the quarter of $519.9 million, mainly P.R. low cost deposits, and funding loan growth; and
higher interest expense from deposits by $11.0 million, due to higher cost of interest-bearing deposits by eight basis points. In Puerto Rico, government interest-bearing deposits increased by two basis points, and their average balances increased by $176.1 million quarter-over-quarter. This cost of deposits during the quarter was further impacted by a 21 basis points increase in the overall cost of time deposits, including the full quarter effect of the repricing of certain P.R. government deposits managed by the Corporation’s fiduciary services division, which were repriced late in the second quarter;

partially offset by:

higher income from money market investments by $7.7 million due to higher volumes by $562.7 million compared to the previous quarter; and
higher interest income from loans by $16.3 million due to a higher average loan balance and higher yields, mainly in the commercial, mortgage and auto loans portfolio.

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 $488.0 million for the third quarter of 2024, a decrease of $0.7 million when compared to $488.7 million in the previous quarter. Net interest margin in the BPPR segment increased from the second quarter of 2024 by one basis points to 3.41%. The most significant variances quarter-over-quarter were:

interest income from investment securities decreased by $9.9 million, primarily due to a $1.3 billion reduction in the volume of U.S. Treasury bills. This decline was mainly caused by maturities and a slowdown in reinvestment, partly due to support loan growth and a lower deposit balance; and
interest expense on deposits increased by $6.9 million, mainly driven by P.R. government deposits that increased two basis points or $4.7 million quarter-over-quarter. Time deposit costs went up by $2.1 million or a 24-basis point increase, driven by the full quarter effect of the repricing of certain P.R. government deposits managed by the Corporation’s fiduciary services division. The total deposit cost for the quarter was 1.89%, a six-basis point increase from the prior quarter;

partially offset by:

an increase of $12.8 million in interest income from loans, primarily driven by a higher average loan balance across all portfolios. The most significant contributions to the quarter-over-quarter variance came from commercial loans, auto loans, and mortgage loans, which increased by $4.1 million, $2.9 million, and $2.2 million, respectively; and
higher income from money market investments by $3.6 million due to higher volumes by $239.9 million.

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 compared to the previous quarter by $7.3 million and 13 basis points and totaled $93.1 million and 2.73%, respectively. The most significant variances quarter-over-quarter contributing to net interest income and net interest margin for PB were:

interest income from money markets and investment securities increased by $5.3 million, mainly due to higher volume of money market investments by $284.0 million resulting from higher average deposit balances; and
interest income from loans increased by $3.2 million mainly due to a higher yield in the commercial loan portfolio by 12 basis points;

partially offset by:

total interest expense on deposits in PB increased by $1.4 million primarily due to an increase in the average balance of time deposits of $307.0 million partially offset by a decrease in time deposit costs of 23 basis points, driven by changes in the cost of intercompany deposits. When compared to the previous period, the overall cost of deposits fell by eight basis points.

Non-interest income

Non-interest income amounted to $164.1 million for the quarter ended September 30, 2024, a decrease of $2.2 million when compared to $166.3 million for the quarter ended June 30, 2024. The variance in non-interest income was primarily due to lower income from mortgage banking activities by $3.1 million, mainly due to a decrease in the fair value of Mortgage Servicing Rights (“MSRs”) driven by portfolio runoff, a slight increase in prepayment speeds and lower estimated escrow float earnings.

Refer to Table B for further details.

Operating expenses

Operating expenses for the third quarter of 2024 totaled $467.3 million, a decrease of $2.3 million when compared to the second quarter of 2024. The variance in operating expenses was driven primarily by:

lower professional fees by $11.0 million mainly due to a decrease of $6.1 million in consulting fees related to corporate initiatives. The remaining decrease in professional fees is mainly attributed to lower legal service fees and equity compensation granted to directors during the second quarter of 2024;
lower operational losses by $6.1 million due to a buildup of reserves for operational losses during the second quarter of 2024; and
lower processing and transactional services expenses by $4.8 million mainly due to lower debit card issuance costs and point of service (POS) processing fees;

partially offset by:

higher technology and software expenses by $8.7 million mainly driven by an increase of $3.0 million in IT project consulting fees, higher consulting fees for cybersecurity and fraud prevention initiatives, and higher software amortization expenses;
higher personnel costs by $4.4 million mainly due to higher salary expense and contributions to employee savings plans resulting from annual salary revisions and merit increases effective in July 2024; partially offset by a decrease in restricted shares and incentive compensation expenses;
higher other taxes expense by $2.4 million mainly due to an increase in municipal license tax and expenses related to regulatory examination fees in BPPR; and
lower other real estate owned (OREO) benefit by $3.1 million mainly due to lower gains on sale of mortgage and commercial properties.

Full-time equivalent employees were 9,246 as of September 30, 2024, compared to 9,241 as of June 30, 2024.

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

Income taxes

For the quarter ended September 30, 2024, the Corporation recorded an income tax expense of $42.5 million, compared to an income tax expense of $40.5 million for the previous quarter.

The effective tax rate (“ETR”) for the third quarter of 2024 was 21.5%, compared to 18.5% for the previous quarter.

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

The Corporation continued to reflect favorable credit quality metrics in the third quarter of 2024 when compared to the previous quarter. While non-performing loans (“NPLs”), net charge offs (“NCOs”) and inflows to NPLs remained below historical averages, consumer portfolios reflected increased delinquencies and NCOs for the quarter primarily driven by auto loans. The mortgage and commercial portfolios continue to operate with low level of delinquencies and NCOs. The Corporation continues to closely monitor changes in the macroeconomic environment and borrower performance given higher interest rates and inflationary pressures. Management believes that the improvements over recent years in risk management practices and the overall 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 third quarter of 2024:

Non-Performing Loans and Net Charge Offs

Total NPLs increased by $19.6 million compared to the previous quarter. Excluding consumer loans, inflows of NPLs held-in-the-portfolio saw a decrease of $7.7 million in the third quarter of 2024. The ratio of NPLs to total loans held in the portfolio remained steady at 1.0%, consistent with the prior quarter’s ratio. The drivers of these changes are mainly related to the following:

In the BPPR segment, NPLs increased by $1.9 million, mainly driven by auto loans NPLs with a $8.5 million increase, offset in part by lower mortgage loans NPLs by $5.9 million. Excluding consumer loans, inflows to NPLs in the BPPR segment decreased by $4.5 million compared to the previous quarter.
In the PB segment, NPLs increased by $17.6 million driven by a single $17.1 million mortgage loan. Inflows to NPLs, excluding consumer loans, decreased by $3.2 million, driven by lower inflows in the commercial portfolio by $19.6 million, offset in part by a single mortgage relationship.

Total NCOs of $58.5 million, increased by $4.9 million when compared to the second quarter of 2024. The Corporation’s ratio of annualized NCOs to average loans held-in-portfolio was 0.65%, compared to 0.61% in the second quarter of 2024. The drivers of these changes are mainly related to the following:

In the BPPR segment, NCOs increased by $5.3 million quarter-over-quarter, mainly driven by higher consumer NCOs by $8.6 million. NCOs increase in the consumer portfolio was mostly related to auto loans by $6.6 million.
In the PB segment, NCOs remained flat quarter-over-quarter.

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

Other Real Estate Owned Properties (“OREO”)

As of September 30, 2024, the Corporation’s OREO portfolio amounted to $63.0 million, a decrease of $7.2 million when compared to the second quarter of 2024. The decrease in OREO assets was driven by sales of residential properties in the BPPR segment.

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 September 30, 2024 amounted to $744.3 million, an increase of $14.2 million when compared to the second quarter of 2024.

In the BPPR segment, the ACL increased by $22.6 million driven by an increase of $13.9 million in reserves for commercial loans and an $8.4 million increase in reserves for consumer portfolios. These increases were mainly due to a combination of growth in the commercial portfolio and changes in credit quality trends for the auto and credit cards portfolio. In the PB segment, the ACL decreased by $8.3 million from the previous quarter, mainly driven by lower reserves for the commercial and construction portfolios due to improvements in credit quality and lower balances.

The Corporation’s ratio of the ACL to loans held-in-portfolio was 2.06% in the third quarter of 2024, compared to 2.05% in the previous quarter. The ratio of the ACL to NPLs held-in-portfolio was 206.0%, down from 213.6% in the previous quarter.

The provision for loan losses for the loan and lease portfolios for the third quarter of 2024 was $72.8 million, compared to $44.2 million in the previous quarter. The provision loan losses for the BPPR segment amounted to $77.2 million, compared to $48.6 million in the previous quarter, an increase of $28.6 million largely driven by the commercial loan growth and changes in credit quality trends for the auto loans portfolios. The PB segment had a release of $4.4 million, consistent with the previous quarter and driven by improvements in credit quality.

The provision for loan losses for the loan and lease portfolios, along with the $0.5 million reserve release related to unfunded loan commitments and the $0.9 million reserve release in the Corporation’s investment portfolio for the third quarter of 2024, are consolidated and shown together under the provision for credit losses in our Consolidated Statement of Operations. For the third quarter, the provision for credit losses amounted to $71.4 million, up from $46.8 million in the previous quarter.

Non-Performing Assets

(Unaudited)

(In thousands)

30-Sep-24

30-Jun-24

30-Sep-23

Non-performing loans held-in-portfolio

$361,398

$341,835

$361,523

Other real estate owned

63,028

70,225

82,322

Total non-performing assets

$424,426

$412,060

$443,845

Net charge-offs for the quarter

$58,529

$53,630

$32,655

Ratios:

Loans held-in-portfolio

$36,194,967

$35,591,620

$34,029,313

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

1.00

%

0.96

%

1.06

%

Allowance for credit losses to loans held-in-portfolio

2.06

2.05

2.09

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

205.96

213.58

196.69

Refer to Table L for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios

(Unaudited)

Quarters ended

Nine months ended

(In thousands)

30-Sep-24

30-Jun-24

30-Sep-23

30-Sep-24

30-Sep-23

Provision for credit losses (benefit) - loan portfolios:

BPPR

$77,147

$48,585

$54,017

$186,740

$127,599

Popular U.S.

(4,378

)

(4,428

)

(10,503

)

2,572

(1,278

)

Total provision for credit losses (benefit) - loan portfolios

$72,769

$44,157

$43,514

$189,312

$126,321

Credit Quality by Segment

(Unaudited)

(In thousands)

Quarters ended

BPPR

30-Sep-24

30-Jun-24

30-Sep-23

Provision for credit losses - loan portfolios

$77,147

$48,585

$54,017

Net charge-offs

54,581

49,308

25,600

Total non-performing loans held-in-portfolio

288,815

286,887

333,825

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

0.86

%

0.79

%

0.44

%

Allowance / loans held-in-portfolio

2.59

%

2.56

%

2.63

%

Allowance / non-performing loans held-in-portfolio

230.66

%

224.34

%

187.08

%

Quarters ended

Popular U.S.

30-Sep-24

30-Jun-24

30-Sep-23

Provision for credit losses (benefit) - loan portfolios

$(4,378

)

$(4,428

)

$(10,503

)

Net charge-offs

3,948

4,322

7,055

Total non-performing loans held-in-portfolio

72,583

54,948

27,698

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

0.15

%

0.16

%

0.28

%

Allowance / loans held-in-portfolio

0.75

%

0.83

%

0.84

%

Allowance / non-performing loans held-in-portfolio

107.66

%

157.37

%

312.42

%

Financial Condition Highlights

(Unaudited)

(In thousands)

30-Sep-24

30-Jun-24

30-Sep-23

Cash and money market investments

$6,958,382

$7,211,367

$6,924,772

Investment securities

25,280,451

26,742,639

25,653,616

Loans

36,194,967

35,591,620

34,029,313

Total assets

71,323,074

72,845,072

69,736,936

Deposits

63,668,501

65,530,862

63,337,600

Borrowings

973,736

1,047,264

1,097,720

Total liabilities

65,532,560

67,472,394

65,279,328

Stockholders’ equity

5,790,514

5,372,678

4,457,608

Total assets amounted to $71.3 billion at September 30, 2024, a decrease of $1.5 billion from the second quarter of 2024, driven by:

a decrease in securities available-for-sale (“AFS”) of $1.4 billion, mainly due to repayments and maturities, partially offset by a decrease in the unrealized losses of AFS securities of $378.9 million;
a decrease in other assets of $404.6 million, driven by unsettled trade receivables related to proceeds from maturities of U.S. Treasury Notes and interest payments from the second quarter of 2024 which were received in the third quarter; and
a decrease in money market investments of $320.6 million, mainly driven by lower deposits and deployment of funds to support loan growth;

partially offset by:

an increase in loans held-in-portfolio by $603.3 million, primarily in BPPR with an increase of $582.1 million across most portfolios, particularly commercial loans, while PB’s increased by $21.2 million.

Total liabilities decreased by $1.9 billion from the second quarter of 2024, driven by:

a decrease of $1.9 billion in deposits, mainly driven by interest bearing deposit accounts in BPPR, including the P.R. government demand accounts, offset by an increase in time deposits at PB.

Stockholders' equity increased by $417.8 million from the second quarter of 2024 mainly due to the change in the accumulated other comprehensive loss driven by the decrease in net unrealized losses in the portfolio of AFS securities of $326.1 million and the amortization of unrealized losses from securities previously reclassified to HTM of $36.3 million, net of tax effect, coupled with retained earnings resulting from the quarter’s net income of $155.3 million, partially offset by common and preferred dividends declared during the quarter of $45.0 million and by an increase in Treasury Stock due to the repurchases of 599,096 shares of common stock for $58.8 million during the quarter as part of the previously announced authorization.

The Corporation is in the process of completing its annual goodwill impairment test, using July 31, 2024 as the evaluation date. The Corporation expects to finalize its evaluation prior to the filing of its Form 10-Q for the quarter ended September 30, 2024 with the Securities and Exchange Commission. Any impairment of goodwill would result in a non-cash expense, net of tax impact. A charge to earnings related to goodwill impairment would not materially impact regulatory capital and tangible capital calculations.

Common Equity Tier 1 ratio (“CET1”), common equity per share and tangible book value per share were 16.42%, $80.35 and $69.04, respectively, at September 30, 2024, compared to 16.48%, $73.94 and $62.71, respectively, at June 30, 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 quarters ended March 31, 2024 and June 30, 2024 and the Form 10-Q for the quarter ended September 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, October 23, 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 177500.

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, November 22, 2024. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 473434.

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 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 - BPPR Operations

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

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

Table R - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to Third Quarter 2024 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

Quarters ended

Nine months ended

30-Sep-24

30-Jun-24

30-Sep-23

30-Sep-24

30-Sep-23

Basic EPS

$2.16

$2.47

$1.90

$6.06

$6.22

Diluted EPS

$2.16

$2.46

$1.90

$6.05

$6.21

Average common shares outstanding

71,807,136

71,970,773

71,794,934

71,882,273

71,676,630

Average common shares outstanding - assuming dilution

71,828,402

71,991,911

71,818,102

71,912,153

71,736,514

Common shares outstanding at end of period

71,787,349

72,365,926

72,127,595

71,787,349

72,127,595

Market value per common share

$100.27

$88.43

$63.01

$100.27

$63.01

Market capitalization - (In millions)

$7,198

$6,399

$4,545

$7,198

$4,545

Return on average assets

0.84

%

0.97

%

0.75

%

0.79

%

0.84

%

Return on average common equity

8.82

%

10.38

%

8.17

%

8.43

%

9.13

%

Net interest margin (non-taxable equivalent basis)

3.24

%

3.22

%

3.07

%

3.20

%

3.14

%

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

3.47

%

3.48

%

3.24

%

3.44

%

3.32

%

Common equity per share

$80.35

$73.94

$61.49

$80.35

$61.49

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

$69.04

$62.71

$50.20

$69.04

$50.20

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

7.03

%

6.30

%

5.25

%

7.03

%

5.25

%

Return on average tangible common equity [1]

9.98

%

11.77

%

9.36

%

9.56

%

10.48

%

Tier 1 capital

16.48

%

16.54

%

16.87

%

16.48

%

16.87

%

Total capital

18.24

%

18.30

%

18.67

%

18.24

%

18.67

%

Tier 1 leverage

8.67

%

8.53

%

8.41

%

8.67

%

8.41

%

Common Equity Tier 1 capital

16.42

%

16.48

%

16.81

%

16.42

%

16.81

%

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

POPULAR, INC.

Financial Supplement to Third Quarter 2024 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

Quarters ended

Variance

Quarter ended

Variance

Nine months ended

Q3 2024

(In thousands, except per share information)

30-Sep-24

30-Jun-24

vs. Q2 2024

30-Sep-23

vs. Q3 2023

30-Sep-24

30-Sep-23

Interest income:

Loans

$664,731

$648,739

$15,992

$596,886

$67,845

$1,952,200

$1,708,216

Money market investments

96,061

88,316

7,745

99,286

(3,225

)

272,893

265,785

Investment securities

176,656

184,852

(8,196

)

148,614

28,042

528,403

403,814

Total interest income

937,448

921,907

15,541

844,786

92,662

2,753,496

2,377,815

Interest expense:

Deposits

350,985

339,939

11,046

294,121

56,864

1,020,420

730,824

Short-term borrowings

1,430

1,126

304

1,478

(48

)

3,748

5,987

Long-term debt

12,560

12,530

30

15,167

(2,607

)

37,799

43,660

Total interest expense

364,975

353,595

11,380

310,766

54,209

1,061,967

780,471

Net interest income

572,473

568,312

4,161

534,020

38,453

1,691,529

1,597,344

Provision for credit losses

71,448

46,794

24,654

45,117

26,331

190,840

129,946

Net interest income after provision for credit losses

501,025

521,518

(20,493

)

488,903

12,122

1,500,689

1,467,398

Service charges on deposit accounts

38,315

37,526

789

37,318

997

113,283

109,777

Other service fees

98,748

96,863

1,885

93,407

5,341

289,883

277,748

Mortgage banking activities

2,670

5,723

(3,053

)

5,393

(2,723

)

12,753

15,109

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

(546

)

319

(865

)

(1,319

)

773

876

1,165

Net gain on trading account debt securities

817

277

540

219

598

1,455

632

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

-

(44

)

44

-

(44

)

Adjustments to indemnity reserves on loans sold

808

212

596

(187

)

995

783

(31

)

Other operating income

23,270

25,386

(2,116

)

24,762

(1,492

)

75,173

77,625

Total non-interest income

164,082

166,306

(2,224

)

159,549

4,533

494,206

481,981

Operating expenses:

Personnel costs

Salaries

135,983

128,634

7,349

127,832

8,151

394,001

378,126

Commissions, incentives and other bonuses

26,350

30,626

(4,276

)

27,670

(1,320

)

95,587

86,025

Pension, postretirement and medical insurance

16,387

16,619

(232

)

16,985

(598

)

50,391

49,871

Other personnel costs, including payroll taxes

23,136

21,545

1,591

20,665

2,471

74,678

69,358

Total personnel costs

201,856

197,424

4,432

193,152

8,704

614,657

583,380

Net occupancy expenses

28,031

27,692

339

28,100

(69

)

83,764

81,304

Equipment expenses

9,349

9,662

(313

)

8,905

444

28,578

26,878

Other taxes

17,757

15,333

2,424

8,590

9,167

47,465

41,290

Professional fees

26,708

37,744

(11,036

)

38,514

(11,806

)

93,370

122,077

Technology and software expenses

88,452

79,752

8,700

72,930

15,522

247,666

213,843

Processing and transactional services

Credit and debit cards

11,761

13,739

(1,978

)

13,762

(2,001

)

37,644

37,896

Other processing and transactional services

22,559

25,357

(2,798

)

24,137

(1,578

)

69,966

70,713

Total processing and transactional services

34,320

39,096

(4,776

)

37,899

(3,579

)

107,610

108,609

Communications

5,229

4,357

872

4,220

1,009

14,143

12,483

Business promotion

Rewards and customer loyalty programs

16,533

16,406

127

15,988

545

46,995

44,962

Other business promotion

9,104

9,043

61

7,087

2,017

25,080

22,067

Total business promotion

25,637

25,449

188

23,075

2,562

72,075

67,029

Deposit insurance

10,433

10,581

(148

)

8,932

1,501

44,901

24,600

Other real estate owned (OREO) income

(2,674

)

(5,750

)

3,076

(5,189

)

2,515

(13,745

)

(10,197

)

Other operating expenses

Operational losses

5,769

11,823

(6,054

)

5,504

265

21,153

16,584

All other

15,750

15,679

71

17,557

(1,807

)

56,140

53,690

Total other operating expenses

21,519

27,502

(5,983

)

23,061

(1,542

)

77,293

70,274

Amortization of intangibles

704

734

(30

)

795

(91

)

2,233

2,385

Goodwill impairment charge

-

23,000

(23,000

)

-

23,000

Total operating expenses

467,321

469,576

(2,255

)

465,984

1,337

1,420,010

1,366,955

Income before income tax

197,786

218,248

(20,462

)

182,468

15,318

574,885

582,424

Income tax expense

42,463

40,459

2,004

45,859

(3,396

)

138,490

135,676

Net income

$155,323

$177,789

$(22,466

)

$136,609

$18,714

$436,395

$446,748

Net income applicable to common stock

$154,970

$177,436

$(22,466

)

$136,256

$18,714

$435,336

$445,689

Net income per common share - basic

$2.16

$2.47

$(0.31

)

$1.90

$0.26

$6.06

$6.22

Net income per common share - diluted

$2.16

$2.46

$(0.30

)

$1.90

$0.26

$6.05

$6.21

Dividends Declared per Common Share

$0.62

$-

$0.55

$0.07

$1.86

$1.65

Popular, Inc.

Financial Supplement to Third Quarter 2024 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

Variance

Q3 2024 vs.

(In thousands)

30-Sep-24

30-Jun-24

30-Sep-23

Q2 2024

Assets:

Cash and due from banks

$427,594

$359,973

$535,335

$67,621

Money market investments

6,530,788

6,851,394

6,389,437

(320,606

)

Trading account debt securities, at fair value

30,843

28,045

30,988

2,798

Debt securities available-for-sale, at fair value

17,186,123

18,543,279

17,129,858

(1,357,156

)

Less: Allowance for credit losses

-

500

-

(500

)

Debt securities available-for-sale, net

17,186,123

18,542,779

17,129,858

(1,356,656

)

Debt securities held-to-maturity, at amortized cost

7,865,294

7,975,524

8,302,082

(110,230

)

Less: Allowance for credit losses

5,430

6,251

6,057

(821

)

Debt securities held-to-maturity, net

7,859,864

7,969,273

8,296,025

(109,409

)

Equity securities

198,191

195,791

190,688

2,400

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

5,509

8,225

5,239

(2,716

)

Loans held-in-portfolio

36,599,612

35,978,602

34,369,775

621,010

Less: Unearned income

404,645

386,982

340,462

17,663

Allowance for credit losses

744,320

730,077

711,068

14,243

Total loans held-in-portfolio, net

35,450,647

34,861,543

33,318,245

589,104

Premises and equipment, net

624,376

599,058

534,384

25,318

Other real estate

63,028

70,225

82,322

(7,197

)

Accrued income receivable

257,406

260,162

257,833

(2,756

)

Mortgage servicing rights, at fair value

108,827

113,386

119,030

(4,559

)

Other assets

1,767,919

2,172,555

2,032,565

(404,636

)

Goodwill

804,428

-

Other intangible assets

7,531

8,235

10,559

(704

)

Total assets

$71,323,074

$72,845,072

$69,736,936

$(1,521,998

)

Liabilities and Stockholders’ Equity:

Liabilities:

Deposits:

Non-interest bearing

$15,276,071

$15,470,082

$15,201,374

$(194,011

)

Interest bearing

48,392,430

50,060,780

48,136,226

(1,668,350

)

Total deposits

63,668,501

65,530,862

63,337,600

(1,862,361

)

Assets sold under agreements to repurchase

55,360

105,684

93,071

(50,324

)

Notes payable

918,376

941,580

1,004,649

(23,204

)

Other liabilities

890,323

894,268

844,008

(3,945

)

Total liabilities

65,532,560

67,472,394

65,279,328

(1,939,834

)

Stockholders’ equity:

Preferred stock

22,143

-

Common stock

1,048

-

Surplus

4,853,869

4,852,747

4,797,364

1,122

Retained earnings

4,495,878

4,385,522

4,189,865

110,356

Treasury stock

(2,069,430

)

(2,010,500

)

(2,018,870

)

(58,930

)

Accumulated other comprehensive loss, net of tax

(1,512,994

)

(1,878,282

)

(2,533,942

)

365,288

Total stockholders’ equity

5,790,514

5,372,678

4,457,608

417,836

Total liabilities and stockholders’ equity

$71,323,074

$72,845,072

$69,736,936

$(1,521,998

)

Popular, Inc.

Financial Supplement to Third Quarter 2024 Earnings Release

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

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

(Unaudited)

Variance

Average Volume

Average Yields / Costs

Interest

Attributable to

30-Sep-24

30-Jun-24

Variance

30-Sep-24

30-Jun-24

Variance

30-Sep-24

30-Jun-24

Variance

Rate

Volume

(In millions)

(In thousands)

$

7,033

$

6,471

$

562

5.43

%

5.49

%

(0.06

)

%

Money market investments

$

96,061

$

88,316

$

7,745

$

59

$

7,686

27,569

28,943

(1,374

)

2.92

3.01

(0.09

)

Investment securities [1]

202,317

216,922

(14,605

)

(4,017

)

(10,588

)

30

26

4

5.87

5.69

0.18

Trading securities

436

367

69

16

53

Total money market,

investment and trading

34,632

35,440

(808

)

3.43

3.47

(0.04

)

securities

298,814

305,605

(6,791

)

(3,942

)

(2,849

)

Loans:

17,798

17,707

91

6.90

6.86

0.04

Commercial

308,734

302,003

6,731

5,175

1,556

1,129

1,070

59

8.85

9.11

(0.26

)

Construction

25,102

24,224

878

(446

)

1,324

1,851

1,789

62

6.97

6.86

0.11

Leasing

32,241

30,697

1,544

472

1,072

7,911

7,817

94

5.73

5.66

0.07

Mortgage

113,409

110,673

2,736

1,399

1,337

3,211

3,192

19

14.08

13.97

0.11

Consumer

112,423

110,906

1,517

675

842

3,879

3,819

60

8.94

8.88

0.06

Auto

87,189

84,268

2,921

1,575

1,346

35,779

35,394

385

7.56

7.52

0.04

Total loans

679,098

662,771

16,327

8,850

7,477

$

70,411

$

70,834

$

(423

)

5.53

%

5.49

%

0.04

%

Total earning assets

$

977,912

$

968,376

$

9,536

$

4,908

$

4,628

Interest bearing deposits:

$

26,148

$

26,105

$

43

3.64

%

3.60

%

0.04

%

NOW and money market [2]

$

238,923

$

233,345

$

5,578

$

7,861

$

(2,283

)

14,322

14,732

(410

)

0.92

-

Savings

33,169

33,795

(626

)

858

(1,484

)

9,069

9,014

55

3.46

3.25

0.21

Time deposits

78,893

72,799

6,094

5,459

635

49,539

49,851

(312

)

2.82

2.74

0.08

Total interest bearing deposits

350,985

339,939

11,046

14,178

(3,132

)

14,968

15,176

(208

)

Non-interest bearing demand deposits

64,507

65,027

(520

)

2.16

2.10

0.06

Total deposits

350,985

339,939

11,046

14,178

(3,132

)

101

80

21

5.62

5.64

(0.02

)

Short-term borrowings

1,431

1,126

305

8

297

Other medium and

950

978

(28

)

5.32

5.16

0.16

long-term debt

12,560

12,530

30

131

(101

)

Total interest bearing

50,590

50,909

(319

)

2.87

2.79

0.08

liabilities (excluding demand deposits)

364,976

353,595

11,381

14,317

(2,936

)

4,853

4,749

104

Other sources of funds

$

70,411

$

70,834

$

(423

)

2.06

%

2.01

%

0.05

%

Total source of funds

364,976

353,595

11,381

14,317

(2,936

)

Net interest margin/

3.47

%

3.48

%

(0.01

)

%

income on a taxable equivalent basis (Non-GAAP)

612,936

614,781

(1,845

)

$

(9,409

)

$

7,564

2.66

%

2.70

%

(0.04

)

%

Net interest spread

Taxable equivalent adjustment

40,464

46,469

(6,005

)

Net interest margin/ income

3.24

%

3.22

%

0.02

%

non-taxable equivalent basis (GAAP)

$

572,472

$

568,312

$

4,160

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

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

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

Popular, Inc.

Financial Supplement to Third Quarter 2024 Earnings Release

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

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

(Unaudited)

Variance

Average Volume

Average Yields / Costs

Interest

Attributable to

30-Sep-24

30-Sep-23

Variance

30-Sep-24

30-Sep-23

Variance

30-Sep-24

30-Sep-23

Variance

Rate

Volume

(In millions)

(In thousands)

$

7,033

$

7,292

$

(259

)

5.43

%

5.40

%

0.03

%

Money market investments

$

96,061

$

99,285

$

(3,224

)

$

312

$

(3,536

)

27,569

28,396

(827

)

2.92

2.31

0.61

Investment securities [1]

202,317

165,319

36,998

41,381

(4,383

)

30

34

(4

)

5.87

4.43

1.44

Trading securities

436

375

61

110

(49

)

Total money market,

investment and trading

34,632

35,722

(1,090

)

3.43

2.95

0.48

securities

298,814

264,979

33,835

41,803

(7,968

)

Loans:

17,798

16,611

1,187

6.90

6.64

0.26

Commercial

308,734

277,977

30,757

10,336

20,421

1,129

865

264

8.85

8.99

(0.14

)

Construction

25,102

19,580

5,522

(364

)

5,886

1,851

1,669

182

6.97

6.50

0.47

Leasing

32,241

27,142

5,099

2,022

3,077

7,911

7,504

407

5.73

5.42

0.31

Mortgage

113,409

101,700

11,709

6,038

5,671

3,211

3,147

64

14.08

13.39

0.69

Consumer

112,423

105,042

7,381

4,260

3,121

3,879

3,657

222

8.94

8.47

0.47

Auto

87,189

78,055

9,134

4,248

4,886

35,779

33,453

2,326

7.56

7.24

0.32

Total loans

679,098

609,496

69,602

26,540

43,062

$

70,411

$

69,175

$

1,236

5.53

%

5.02

%

0.51

%

Total earning assets

$

977,912

$

874,475

$

103,437

$

68,343

$

35,094

Interest bearing deposits:

$

26,148

$

25,652

$

496

3.64

%

3.31

%

0.33

%

NOW and money market [2]

$

238,923

$

213,957

$

24,966

$

26,317

$

(1,351

)

14,322

14,875

(553

)

0.92

0.73

0.19

Savings

33,169

27,373

5,796

6,429

(633

)

9,069

7,986

1,083

3.46

2.62

0.84

Time deposits

78,893

52,791

26,102

16,893

9,209

49,539

48,513

1,026

2.82

2.41

0.41

Total interest bearing deposits

350,985

294,121

56,864

49,639

7,225

14,968

15,038

(70

)

Non-interest bearing demand deposits

64,507

63,551

956

2.16

1.84

0.32

Total deposits

350,985

294,121

56,864

49,639

7,225

101

108

(7

)

5.62

5.45

0.17

Short-term borrowings

1,431

1,478

(47

)

44

(91

)

Other medium and

950

1,172

(222

)

5.32

5.20

0.12

long-term debt

12,560

15,167

(2,607

)

415

(3,022

)

Total interest bearing

50,590

49,793

797

2.87

2.48

0.39

liabilities (excluding demand deposits)

364,976

310,766

54,210

50,098

4,112

4,853

4,344

509

Other sources of funds

$

70,411

$

69,175

$

1,236

2.06

%

1.78

%

0.28

%

Total source of funds

364,976

310,766

54,210

50,098

4,112

Net interest margin/

3.47

%

3.24

%

0.23

%

income on a taxable equivalent basis (Non-GAAP)

612,936

563,709

49,227

$

18,245

$

30,982

2.66

%

2.54

%

0.12

%

Net interest spread

Taxable equivalent adjustment

40,464

29,689

10,775

Net interest margin/ income

3.24

%

3.07

%

0.17

%

non-taxable equivalent basis (GAAP)

$

572,472

$

534,020

$

38,452

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 Third 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-Sep-24

30-Sep-23

Variance

30-Sep-24

30-Sep-23

Variance

30-Sep-24

30-Sep-23

Variance

Rate

Volume

(In millions)

(In thousands)

$

6,664

$

6,966

$

(302

)

5.47

%

5.10

%

0.37

%

Money market investments

$

272,893

$

265,785

$

7,108

$

18,902

$

(11,794

)

28,271

28,205

66

2.88

2.18

0.70

Investment securities [1]

610,342

460,641

149,701

148,137

1,564

30

32

(2

)

5.02

4.52

0.50

Trading securities

1,114

1,084

30

117

(87

)

Total money market,

investment and trading

34,965

35,203

(238

)

3.38

2.76

0.62

securities

884,349

727,510

156,839

167,156

(10,317

)

Loans:

17,707

16,206

1,501

6.87

6.50

0.37

Commercial

910,241

787,381

122,860

47,469

75,391

1,064

778

286

8.97

8.79

0.18

Construction

71,426

51,178

20,248

1,090

19,158

1,794

1,630

164

6.86

6.31

0.55

Leasing

92,292

77,135

15,157

7,024

8,133

7,818

7,434

384

5.67

5.45

0.22

Mortgage

332,626

303,777

28,849

12,819

16,030

3,209

3,082

127

13.94

13.10

0.83

Consumer

334,818

302,050

32,768

17,783

14,985

3,820

3,603

217

8.86

8.31

0.55

Auto

253,511

223,929

29,582

15,682

13,900

35,412

32,733

2,679

7.52

7.13

0.39

Total loans

1,994,914

1,745,450

249,464

101,867

147,597

$

70,377

$

67,936

$

2,441

5.46

%

4.86

%

0.60

%

Total earning assets

$

2,879,263

$

2,472,960

$

406,303

$

269,023

$

137,280

Interest bearing deposits:

$

25,986

$

24,407

$

1,579

3.62

%

2.93

%

0.69

%

NOW and money market [2]

$

704,396

$

534,567

$

169,829

$

137,718

$

32,111

14,584

14,889

(305

)

0.93

0.62

0.31

Savings

101,136

69,262

31,874

30,343

1,531

8,877

7,603

1,274

3.23

2.23

1.00

Time deposits

214,888

126,995

87,893

56,973

30,920

49,447

46,899

2,548

2.76

2.08

0.68

Total interest bearing deposits

1,020,420

730,824

289,596

225,034

64,562

15,075

15,405

(330

)

Non-interest bearing demand deposits

64,522

62,304

2,218

2.11

1.57

0.54

Total deposits

1,020,420

730,824

289,596

225,034

64,562

89

160

(71

)

5.65

5.02

0.63

Short-term borrowings

3,749

5,987

(2,238

)

681

(2,919

)

Other medium and

975

1,140

(165

)

5.18

5.12

0.06

long-term debt

37,799

43,660

(5,861

)

152

(6,013

)

Total interest bearing

50,511

48,199

2,312

2.81

2.16

0.65

liabilities (excluding demand deposits)

1,061,968

780,471

281,497

225,867

55,630

4,791

4,332

459

Other sources of funds

$

70,377

$

67,936

$

2,441

2.02

%

1.54

%

0.48

%

Total source of funds

1,061,968

780,471

281,497

225,867

55,630

Net interest margin/

3.44

%

3.32

%

0.12

%

income on a taxable equivalent basis (Non-GAAP)

1,817,295

1,692,489

124,806

$

43,156

$

81,650

2.65

%

2.70

%

(0.05

)

%

Net interest spread

Taxable equivalent adjustment

125,766

95,145

30,621

Net interest margin/ income

3.20

%

3.14

%

0.06

%

non-taxable equivalent basis (GAAP)

$

1,691,529

$

1,597,344

$

94,185

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 Third Quarter 2024 Earnings Release

Table G - Mortgage Banking Activities and Other Service Fees

(Unaudited)

Mortgage Banking Activities

Quarters ended

Variance

Nine months ended

Variance

(In thousands)

30-Sep-24

30-Jun-24

30-Sep-23

Q3 2024 vs.Q2 2024

Q3 2024 vs.Q3 2023

30-Sep-24

30-Sep-23

2024 vs. 2023

Mortgage servicing fees, net of fair value adjustments:

Mortgage servicing fees

$7,559

$7,602

$8,025

$(43

)

$(466

)

$22,912

$25,083

$(2,171

)

Mortgage servicing rights fair value adjustments

(4,896

)

(1,945

)

(2,793

)

(2,951

)

(2,103

)

(10,280

)

(10,385

)

105

Total mortgage servicing fees, net of fair value adjustments

2,663

5,657

5,232

(2,994

)

(2,569

)

12,632

14,698

(2,066

)

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

320

2

(335

)

318

655

396

(133

)

529

Trading account (loss) profit:

Unrealized (loss) gains on outstanding derivative positions

(44

)

56

45

(100

)

(89

)

113

160

(47

)

Realized (loss) gains on closed derivative positions

(261

)

9

494

(270

)

(755

)

(249

)

661

(910

)

Total trading account (loss) profit

(305

)

65

539

(370

)

(844

)

(136

)

821

(957

)

Losses on repurchased loans, including interest advances

(8

)

(1

)

(43

)

(7

)

35

(139

)

(277

)

138

Total mortgage banking activities

$2,670

$5,723

$5,393

$(3,053

)

$(2,723

)

$12,753

$15,109

$(2,356

)

Other Service Fees

Quarters ended

Variance

Nine months ended

Variance

(In thousands)

30-Sep-24

30-Jun-24

30-Sep-23

Q3 2024 vs.Q2 2024

Q3 2024 vs.Q3 2023

30-Sep-24

30-Sep-23

2024 vs. 2023

Other service fees:

Debit card fees [1]

$26,197

$27,176

$24,603

$(979

)

$1,594

$78,907

$74,143

$4,764

Insurance fees

15,422

13,368

14,983

2,054

439

43,479

43,481

(2

)

Credit card fees [1]

31,262

30,748

29,778

514

1,484

91,577

90,146

1,431

Sale and administration of investment products

8,387

7,850

6,820

537

1,567

23,664

19,454

4,210

Trust fees

6,715

6,622

6,381

93

334

20,044

18,756

1,288

Other fees

10,765

11,099

10,842

(334

)

(77

)

32,212

31,768

444

Total other service fees

$98,748

$96,863

$93,407

$1,885

$5,341

$289,883

$277,748

$12,135

[1] Effective in the third quarter of 2024, the Corporation is reclassifying certain interchange fees, which were previously included jointly with credit card fees from common network activity, as debit card fees. Interchange fees amounting to $11.3 million and $10.9 million, were reclassified for the first and second quarters of 2024, respectively. For the quarter and nine-month period ended September 30, 2023, interchange fees of approximately $11.0 million and $33.8 million were reclassified.

Popular, Inc.

Financial Supplement to Third Quarter 2024 Earnings Release

Table H - Loans and Deposits

(Unaudited)

Loans - Ending Balances

Variance

(In thousands)

30-Sep-24

30-Jun-24

30-Sep-23

Q3 2024 vs.Q2 2024

% of Change

Q3 2024 vs.Q3 2023

% of Change

Loans held-in-portfolio:

Commercial

Commercial multi-family

$2,405,302

$2,384,480

$2,328,433

$20,822

0.87

%

$76,869

3.30

%

Commercial real estate non-owner occupied

5,185,381

5,004,472

5,035,130

180,909

3.61

%

150,251

2.98

%

Commercial real estate owner occupied

3,092,393

3,143,817

3,044,905

(51,424

)

(1.64

%)

47,488

1.56

%

Commercial and industrial

7,400,553

7,195,357

6,527,082

205,196

2.85

%

873,471

13.38

%

Total Commercial

18,083,629

17,728,126

16,935,550

355,503

2.01

%

1,148,079

6.78

%

Construction

1,113,307

1,105,759

922,112

7,548

0.68

%

191,195

20.73

%

Leasing

1,887,052

1,828,048

1,698,114

59,004

3.23

%

188,938

11.13

%

Mortgage

7,993,348

7,883,726

7,585,111

109,622

1.39

%

408,237

5.38

%

Consumer

Credit cards

1,186,893

1,162,557

1,077,428

24,336

2.09

%

109,465

10.16

%

Home equity lines of credit

69,691

68,992

67,499

699

1.01

%

2,192

3.25

%

Personal

1,873,175

1,879,619

1,952,168

(6,444

)

(0.34

%)

(78,993

)

(4.05

%)

Auto

3,818,607

3,773,292

3,633,196

45,315

1.20

%

185,411

5.10

%

Other

169,265

161,501

158,135

7,764

4.81

%

11,130

7.04

%

Total Consumer

7,117,631

7,045,961

6,888,426

71,670

1.02

%

229,205

3.33

%

Total loans held-in-portfolio

$36,194,967

$35,591,620

$34,029,313

$603,347

1.70

%

$2,165,654

6.36

%

Loans held-for-sale:

Mortgage

$5,509

$8,225

$5,239

$(2,716

)

(33.02

%)

$270

5.15

%

Total loans held-for-sale

$5,509

$8,225

$5,239

$(2,716

)

(33.02

%)

$270

5.15

%

Total loans

$36,200,476

$35,599,845

$34,034,552

$600,631

1.69

%

$2,165,924

6.36

%

Deposits - Ending Balances

Variance

(In thousands)

30-Sep-24

30-Jun-24

30-Sep-23

Q3 2024 vs. Q2 2024

% of Change

Q3 2024 vs.Q3 2023

% of Change

Non-P.R. government deposits:

Demand deposits [1]

$15,276,071

$15,470,083

$15,201,374

$(194,012

)

(1.25

%)

$74,697

0.49

%

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

20,584,328

21,210,000

22,172,344

(625,672

)

(2.95

%)

(1,588,016

)

(7.16

%)

Savings, NOW and money market deposits (brokered)

735,231

729,326

734,479

5,905

0.81

%

752

0.10

%

Time deposits (non-brokered)

7,363,477

7,427,612

6,535,481

(64,135

)

(0.86

%)

827,996

12.67

%

Time deposits (brokered CDs)

993,522

971,907

943,801

21,615

2.22

%

49,721

5.27

%

Sub-total non-P.R. government deposits

44,952,629

45,808,928

45,587,479

(856,299

)

(1.87

%)

(634,850

)

(1.39

%)

P.R. government deposits:

Demand deposits

11,088,511

10,409,323

12,741,408

679,188

6.52

%

(1,652,897

)

(12.97

%)

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

6,903,370

8,514,473

4,280,038

(1,611,103

)

(18.92

%)

2,623,332

61.29

%

Time deposits (non-brokered)

723,991

798,138

728,675

(74,147

)

(9.29

%)

(4,684

)

(0.64

%)

Sub-total P.R. government deposits

18,715,872

19,721,934

17,750,121

(1,006,062

)

(5.10

%)

965,751

5.44

%

Total deposits

$63,668,501

$65,530,862

$63,337,600

$(1,862,361

)

(2.84

%)

$330,901

0.52

%

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

Popular, Inc.

Financial Supplement to Third Quarter 2024 Earnings Release

Table I - Loan Delinquency -BPPR Operations

(Unaudited)

30-Sep-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

$

1,866

$

-

$

87

$

1,953

$

303,581

$

305,534

$

87

$

-

Commercial real estate:

Non-owner occupied

170

174

7,493

7,837

3,140,418

3,148,255

7,493

-

Owner occupied

1,544

1,681

26,600

29,825

1,374,025

1,403,850

26,600

-

Commercial and industrial

19,074

6,694

23,819

49,587

5,126,538

5,176,125

19,639

4,180

Construction

-

190,343

-

Mortgage

246,220

122,592

359,986

728,798

5,966,619

6,695,417

157,920

202,066

Leasing

19,840

4,661

7,367

31,868

1,855,184

1,887,052

7,367

-

Consumer:

Credit cards

16,210

11,415

27,214

54,839

1,132,050

1,186,889

-

27,214

Home equity lines of credit

-

2,131

-

Personal

21,726

13,153

21,007

55,886

1,698,195

1,754,081

20,992

15

Auto

104,363

26,090

47,828

178,281

3,640,326

3,818,607

47,828

-

Other

727

500

1,188

2,415

154,775

157,190

889

299

Total

$

431,740

$

186,960

$

522,589

$

1,141,289

$

24,584,185

$

25,725,474

$

288,815

$

233,774

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

-

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

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

$

1,633

$

-

$

(356

)

$

1,277

$

(654

)

$

623

$

(356

)

$

-

Commercial real estate:

Non-owner occupied

(1,543

)

174

9

(1,360

)

169,988

168,628

9

-

Owner occupied

(226

)

1,449

1,315

2,538

(15,800

)

(13,262

)

1,315

-

Commercial and industrial

13,687

4,597

(2,741

)

15,543

157,798

173,341

(3,319

)

578

Construction

(5,479

)

-

(5,479

)

11,883

6,404

-

Mortgage

(41,248

)

17,326

(13,320

)

(37,242

)

142,139

104,897

(5,870

)

(7,450

)

Leasing

(791

)

(410

)

308

(893

)

59,897

59,004

308

-

Consumer:

Credit cards

1,178

1,979

3,283

6,440

17,910

24,350

-

3,283

Home equity lines of credit

-

(85

)

(85

)

-

Personal

191

398

1,357

1,946

7,262

9,208

1,342

15

Auto

490

1,147

8,495

10,132

35,183

45,315

8,495

-

Other

(249

)

242

(19

)

(26

)

3,683

3,657

4

(23

)

Total

$

(32,357

)

$

26,902

$

(1,669

)

$

(7,124

)

$

589,204

$

582,080

$

1,928

$

(3,597

)

Popular, Inc.

Financial Supplement to Third Quarter 2024 Earnings Release

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

(Unaudited)

30-Sep-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

$

1,060

$

-

$

8,700

$

9,760

$

2,090,008

$

2,099,768

$

8,700

$

-

Commercial real estate:

Non-owner occupied

10,330

3,013

2,282

15,625

2,021,501

2,037,126

2,282

-

Owner occupied

250

1,825

22,248

24,323

1,664,220

1,688,543

22,248

-

Commercial and industrial

11,478

2,312

5,443

19,233

2,205,195

2,224,428

5,246

197

Construction

-

34,349

-

34,349

888,615

922,964

-

Mortgage

899

3,640

28,434

32,973

1,264,958

1,297,931

28,434

-

Consumer:

Credit cards

-

4

-

Home equity lines of credit

74

984

3,834

4,892

62,668

67,560

3,834

-

Personal

1,696

2,015

1,837

5,548

113,546

119,094

1,837

-

Other

10

508

2

520

11,555

12,075

2

-

Total

$

25,797

$

48,646

$

72,780

$

147,223

$

10,322,270

$

10,469,493

$

72,583

$

197

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

-

18

-

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

-

1,204

6,764

7,968

-

Total

$

15,810

$

45,812

$

55,158

$

116,780

$

10,331,446

$

10,448,226

$

54,948

$

210

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

$

(1,902

)

$

-

$

-

$

(1,902

)

$

22,101

$

20,199

$

-

$

-

Commercial real estate:

Non-owner occupied

7,836

230

1,257

9,323

2,958

12,281

1,257

-

Owner occupied

250

(15,270

)

(8

)

(15,028

)

(23,134

)

(38,162

)

(8

)

-

Commercial and industrial

6,297

2,008

(549

)

7,756

24,099

31,855

(536

)

(13

)

Construction

-

34,349

-

34,349

(33,205

)

1,144

-

Mortgage

(410

)

(19,839

)

16,880

(3,369

)

8,094

4,725

16,880

-

Consumer:

Credit cards

-

(14

)

(14

)

-

Home equity lines of credit

(816

)

522

54

(240

)

1,024

784

54

-

Personal

(74

)

326

(14

)

238

(15,890

)

(15,652

)

(14

)

-

Other

(1,194

)

508

2

(684

)

4,791

4,107

2

-

Total

$

9,987

$

2,834

$

17,622

$

30,443

$

(9,176

)

$

21,267

$

17,635

$

(13

)

Popular, Inc.

Financial Supplement to Third Quarter 2024 Earnings Release

Table K - Loan Delinquency - Consolidated

(Unaudited)

30-Sep-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

$

2,926

$

-

$

8,787

$

11,713

$

2,393,589

$

2,405,302

$

8,787

$

-

Commercial real estate:

Non-owner occupied

10,500

3,187

9,775

23,462

5,161,919

5,185,381

9,775

-

Owner occupied

1,794

3,506

48,848

54,148

3,038,245

3,092,393

48,848

-

Commercial and industrial

30,552

9,006

29,262

68,820

7,331,733

7,400,553

24,885

4,377

Construction

-

34,349

-

34,349

1,078,958

1,113,307

-

Mortgage

247,119

126,232

388,420

761,771

7,231,577

7,993,348

186,354

202,066

Leasing

19,840

4,661

7,367

31,868

1,855,184

1,887,052

7,367

-

Consumer:

Credit cards

16,210

11,415

27,214

54,839

1,132,054

1,186,893

-

27,214

Home equity lines of credit

74

984

3,834

4,892

64,799

69,691

3,834

-

Personal

23,422

15,168

22,844

61,434

1,811,741

1,873,175

22,829

15

Auto

104,363

26,090

47,828

178,281

3,640,326

3,818,607

47,828

-

Other

737

1,008

1,190

2,935

166,330

169,265

891

299

Total

$

457,537

$

235,606

$

595,369

$

1,288,512

$

34,906,455

$

36,194,967

$

361,398

$

233,971

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

-

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

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

$

(269

)

$

-

$

(356

)

$

(625

)

$

21,447

$

20,822

$

(356

)

$

-

Commercial real estate:

Non-owner occupied

6,293

404

1,266

7,963

172,946

180,909

1,266

-

Owner occupied

24

(13,821

)

1,307

(12,490

)

(38,934

)

(51,424

)

1,307

-

Commercial and industrial

19,984

6,605

(3,290

)

23,299

181,897

205,196

(3,855

)

565

Construction

(5,479

)

34,349

-

28,870

(21,322

)

7,548

-

Mortgage

(41,658

)

(2,513

)

3,560

(40,611

)

150,233

109,622

11,010

(7,450

)

Leasing

(791

)

(410

)

308

(893

)

59,897

59,004

308

-

Consumer:

Credit cards

1,178

1,979

3,283

6,440

17,896

24,336

-

3,283

Home equity lines of credit

(816

)

522

54

(240

)

939

699

54

-

Personal

117

724

1,343

2,184

(8,628

)

(6,444

)

1,328

15

Auto

490

1,147

8,495

10,132

35,183

45,315

8,495

-

Other

(1,443

)

750

(17

)

(710

)

8,474

7,764

6

(23

)

Total

$

(22,370

)

$

29,736

$

15,953

$

23,319

$

580,028

$

603,347

$

19,563

$

(3,610

)

Popular, Inc.

Financial Supplement to Third Quarter 2024 Earnings Release

Table L - Non-Performing Assets

(Unaudited)

Variance

(In thousands)

30-Sep-24

As a % of loans HIP by category

30-Jun-24

As a % of loans HIP by category

30-Sep-23

As a % of loans HIP by category

Q3 2024 vs. Q2 2024

Q3 2024 vs. Q3 2023

Non-accrual loans:

Commercial

Commercial multi-family

$8,787

0.4

%

$9,143

0.4

%

$588

-

%

$(356

)

$8,199

Commercial real estate non-owner occupied

9,775

0.2

8,509

0.2

16,064

0.3

1,266

(6,289

)

Commercial real estate owner occupied

48,848

1.6

47,541

1.5

38,966

1.3

1,307

9,882

Commercial and industrial

24,885

0.3

28,740

0.4

25,203

0.4

(3,855

)

(318

)

Total Commercial

92,295

0.5

93,933

0.5

80,821

0.5

(1,638

)

11,474

Construction

-

6,578

0.7

-

(6,578

)

Leasing

7,367

0.4

7,059

0.4

6,842

0.4

308

525

Mortgage

186,354

2.3

175,344

2.2

199,423

2.6

11,010

(13,069

)

Consumer

Home equity lines of credit

3,834

5.5

3,780

5.5

4,085

6.1

54

(251

)

Personal

22,829

1.2

21,501

1.1

21,219

1.1

1,328

1,610

Auto

47,828

1.3

39,333

1.0

40,268

1.1

8,495

7,560

Other Consumer

891

0.5

885

0.5

2,287

1.4

6

(1,396

)

Total Consumer

75,382

1.1

65,499

0.9

67,859

1.0

9,883

7,523

Total non-performing loans held-in-portfolio

361,398

1.0

%

341,835

1.0

%

361,523

1.1

%

19,563

(125

)

Other real estate owned (“OREO”)

63,028

70,225

82,322

(7,197

)

(19,294

)

Total non-performing assets [1]

$424,426

$412,060

$443,845

$12,366

$(19,419

)

Accruing loans past due 90 days or more [2]

$233,971

$237,581

$264,212

$(3,610

)

$(30,241

)

Ratios:

Non-performing assets to total assets

0.60

%

0.57

%

0.64

%

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

1.00

0.96

1.06

Allowance for credit losses to loans held-in-portfolio

2.06

2.05

2.09

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

205.96

213.58

196.69

[1] There were no non-performing loans held-for-sale as of September 30, 2024, June 30, 2024 and September 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 $9 million at September 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 (June 30, 2024 - $10 million; September 30, 2023 - $8 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 $70 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of September 30, 2024 (June 30, 2024 - $81 million; September 30, 2023 - $115 million). Furthermore, the Corporation has approximately $32 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, 2024- $34 million; September 30, 2023 - $39 million).

Popular, Inc.

Financial Supplement to Third Quarter 2024 Earnings Release

Table M - Activity in Non-Performing Loans

(Unaudited)

Commercial loans held-in-portfolio:

Quarter ended

30-Sep-24

30-Jun-24

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$56,170

$37,763

$93,933

$63,323

$21,407

$84,730

Plus:

New non-performing loans

4,460

2,582

7,042

4,031

21,940

25,971

Advances on existing non-performing loans

-

3

-

282

Less:

Non-performing loans transferred to OREO

-

(280

)

-

(280

)

Non-performing loans charged-off

(4,085

)

(82

)

(4,167

)

(5,700

)

-

(5,700

)

Loans returned to accrual status / loan collections

(2,726

)

(1,790

)

(4,516

)

(5,204

)

(5,866

)

(11,070

)

Ending balance NPLs

$53,819

$38,476

$92,295

$56,170

$37,763

$93,933

Mortgage loans held-in-portfolio:

Quarter ended

30-Sep-24

30-Jun-24

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$163,790

$11,554

$175,344

$166,473

$28,071

$194,544

Plus:

New non-performing loans

32,125

20,386

52,511

37,009

3,967

40,976

Advances on existing non-performing loans

-

29

-

16

Less:

Non-performing loans transferred to OREO

(4,016

)

-

(4,016

)

(4,260

)

(24

)

(4,284

)

Non-performing loans charged-off

54

-

54

110

(18

)

92

Loans returned to accrual status / loan collections

(34,033

)

(3,535

)

(37,568

)

(35,542

)

(20,458

)

(56,000

)

Ending balance NPLs

$157,920

$28,434

$186,354

$163,790

$11,554

$175,344

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

Quarter ended

30-Sep-24

30-Jun-24

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$219,960

$49,317

$269,277

$229,796

$49,478

$279,274

Plus:

New non-performing loans

36,585

22,968

59,553

41,040

25,907

66,947

Advances on existing non-performing loans

-

32

-

298

Less:

Non-performing loans transferred to OREO

(4,016

)

-

(4,016

)

(4,540

)

(24

)

(4,564

)

Non-performing loans charged-off

(4,031

)

(82

)

(4,113

)

(5,590

)

(18

)

(5,608

)

Loans returned to accrual status / loan collections

(36,759

)

(5,325

)

(42,084

)

(40,746

)

(26,324

)

(67,070

)

Ending balance NPLs

$211,739

$66,910

$278,649

$219,960

$49,317

$269,277

Popular, Inc.

Financial Supplement to Third Quarter 2024 Earnings Release

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

(Unaudited)

Quarters ended

(In thousands)

30-Sep-24

30-Jun-24

30-Sep-23

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

$730,077

$739,544

$700,200

Provision for credit losses

72,769

44,157

43,514

Initial allowance for credit losses - PCD Loans

3

6

9

802,849

783,707

743,723

Net loans charge-off (recovered)- BPPR

Commercial:

Commercial real estate non-owner occupied

10

(44

)

(168

)

Commercial real estate owner occupied

(1,554

)

(1,134

)

166

Commercial and industrial

4,729

6,021

(10,547

)

Total Commercial

3,185

4,843

(10,549

)

Construction

(1,036

)

-

2,611

Leasing

2,256

2,700

1,442

Mortgage

(3,894

)

(3,749

)

(3,800

)

Consumer:

Credit cards

14,857

13,712

8,631

Home equity lines of credit

(76

)

41

(30

)

Personal

22,186

20,975

17,303

Auto

16,901

10,257

9,691

Other Consumer

202

529

301

Total Consumer

54,070

45,514

35,896

Total net charged-off BPPR

$54,581

$49,308

$25,600

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

Commercial:

Commercial multi-family

(5

)

(4

)

(1

)

Commercial real estate non-owner occupied

(8

)

(42

)

(66

)

Commercial real estate owner occupied

(19

)

(59

)

1,202

Commercial and industrial

372

988

899

Total Commercial

340

883

2,034

Construction

-

(100

)

-

Mortgage

(46

)

(17

)

(62

)

Consumer:

Home equity lines of credit

(120

)

(383

)

12

Personal

3,751

3,941

5,032

Other Consumer

23

(2

)

39

Total Consumer

3,654

3,556

5,083

Total net charged-off Popular U.S.

$3,948

$4,322

$7,055

Total loans charged-off - Popular, Inc.

$58,529

$53,630

$32,655

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

$744,320

$730,077

$711,068

Balance at beginning of period - unfunded commitments

$18,884

$16,767

$11,593

Provision for credit losses (benefit)

(500

)

2,117

1,691

Balance at end of period - unfunded commitments [2]

$18,384

$18,884

$13,284

POPULAR, INC.

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

0.65

%

0.61

%

0.39

%

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

124.33

%

82.34

%

133.25

%

BPPR

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

0.86

%

0.79

%

0.44

%

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

141.34

%

98.53

%

211.00

%

Popular U.S.

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

0.15

%

0.16

%

0.28

%

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

(110.89

)

%

(102.45

)

%

(148.87

)

%

[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 2024 Earnings Release

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

(Unaudited)

30-Sep-24

BPPR

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

$2,886

$305,534

0.94

%

Commercial real estate - non-owner occupied

56,720

3,148,255

1.80

%

Commercial real estate - owner occupied

38,511

1,403,850

2.74

%

Commercial and industrial

123,131

5,176,125

2.38

%

Total commercial

$221,248

$10,033,764

2.21

%

Construction

3,704

190,343

1.95

%

Mortgage

72,576

6,695,417

1.08

%

Leasing

15,854

1,887,052

0.84

%

Consumer:

Credit cards

92,694

1,186,889

7.81

%

Home equity lines of credit

69

2,131

3.24

%

Personal

92,067

1,754,081

5.25

%

Auto

161,313

3,818,607

4.22

%

Other consumer

6,649

157,190

4.23

%

Total consumer

$352,792

$6,918,898

5.10

%

Total

$666,174

$25,725,474

2.59

%

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

83

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

%

Variance

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

$(417

)

$623

(0.14

)

%

Commercial real estate - non-owner occupied

3,334

168,628

0.01

%

Commercial real estate - owner occupied

(864

)

(13,262

)

(0.04

)

%

Commercial and industrial

11,868

173,341

0.16

%

Total commercial

$13,921

$329,330

0.07

%

Construction

66

6,404

(0.03

)

%

Mortgage

(1,324

)

104,897

(0.04

)

%

Leasing

1,469

59,004

0.05

%

Consumer:

Credit cards

6,381

24,350

0.39

%

Home equity lines of credit

(14

)

(85

)

(0.51

)

%

Personal

(1,954

)

9,208

(0.14

)

%

Auto

3,864

45,315

0.05

%

Other consumer

160

3,657

-

%

Total consumer

$8,437

$82,445

0.06

%

Total

$22,569

$582,080

0.03

%

Popular, Inc.

Financial Supplement to Third Quarter 2024 Earnings Release

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

(Unaudited)

30-Sep-24

Popular U.S.

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

$6,756

$2,099,768

0.32

%

Commercial real estate - non-owner occupied

10,910

2,037,126

0.54

%

Commercial real estate - owner occupied

14,404

1,688,543

0.85

%

Commercial and industrial

13,230

2,224,428

0.59

%

Total commercial

$45,300

$8,049,865

0.56

%

Construction

9,510

922,964

1.03

%

Mortgage

9,074

1,297,931

0.70

%

Consumer:

Credit cards

-

4

-

%

Home equity lines of credit

1,785

67,560

2.64

%

Personal

12,475

119,094

10.47

%

Other consumer

2

12,075

0.02

%

Total consumer

$14,262

$198,733

7.18

%

Total

$78,146

$10,469,493

0.75

%

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

-

18

-

%

Home equity lines of credit

1,643

66,776

2.46

%

Personal

13,427

134,746

9.96

%

Other consumer

2

7,968

0.03

%

Total consumer

$15,072

$209,508

7.19

%

Total

$86,472

$10,448,226

0.83

%

Variance

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

$(1,121

)

$20,199

(0.06

)

%

Commercial real estate - non-owner occupied

61

12,281

-

%

Commercial real estate - owner occupied

(4,411

)

(38,162

)

(0.24

)

%

Commercial and industrial

(1,989

)

31,855

(0.10

)

%

Total commercial

$(7,460

)

$26,173

(0.10

)

%

Construction

259

1,144

0.03

%

Mortgage

(315

)

4,725

(0.03

)

%

Consumer:

Credit cards

-

(14

)

-

%

Home equity lines of credit

142

784

0.18

%

Personal

(952

)

(15,652

)

0.51

%

Other consumer

-

4,107

(0.01

)

%

Total consumer

$(810

)

$(10,775

)

(0.01

)

%

Total

$(8,326

)

$21,267

(0.08

)

%

Popular, Inc.

Financial Supplement to Third Quarter 2024 Earnings Release

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

(Unaudited)

30-Sep-24

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

$9,642

$2,405,302

0.40

%

Commercial real estate - non-owner occupied

67,630

5,185,381

1.30

%

Commercial real estate - owner occupied

52,915

3,092,393

1.71

%

Commercial and industrial

136,361

7,400,553

1.84

%

Total commercial

$266,548

$18,083,629

1.47

%

Construction

13,214

1,113,307

1.19

%

Mortgage

81,650

7,993,348

1.02

%

Leasing

15,854

1,887,052

0.84

%

Consumer:

Credit cards

92,694

1,186,893

7.81

%

Home equity lines of credit

1,854

69,691

2.66

%

Personal

104,542

1,873,175

5.58

%

Auto

161,313

3,818,607

4.22

%

Other consumer

6,651

169,265

3.93

%

Total consumer

$367,054

$7,117,631

5.16

%

Total

$744,320

$36,194,967

2.06

%

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

%

Variance

(In thousands)

Total ACL

Total loans held-in-portfolio

ACL to loans held-in-portfolio

Commercial:

Commercial multi-family

$(1,538

)

$20,822

(0.07

)

%

Commercial real estate - non-owner occupied

3,395

180,909

0.02

%

Commercial real estate - owner occupied

(5,275

)

(51,424

)

(0.14

)

%

Commercial and industrial

9,879

205,196

0.08

%

Total commercial

$6,461

$355,503

-

%

Construction

325

7,548

0.02

%

Mortgage

(1,639

)

109,622

(0.04

)

%

Leasing

1,469

59,004

0.05

%

Consumer:

Credit cards

6,381

24,336

0.39

%

Home equity lines of credit

128

699

0.16

%

Personal

(2,906

)

(6,444

)

(0.14

)

%

Auto

3,864

45,315

0.05

%

Other consumer

160

7,764

(0.09

)

%

Total consumer

$7,627

$71,670

0.06

%

Total

$14,243

$603,347

0.01

%

Popular, Inc.

Financial Supplement to Third Quarter 2024 Earnings Release

Table R - Reconciliation to GAAP Financial Measures

(Unaudited)

(In thousands, except share or per share information)

30-Sep-24

30-Jun-24

30-Sep-23

Total stockholders’ equity

$5,790,514

$5,372,678

$4,457,608

Less: Preferred stock

(22,143

)

(22,143

)

(22,143

)

Less: Goodwill

(804,428

)

(804,428

)

(804,428

)

Less: Other intangibles

(7,531

)

(8,235

)

(10,559

)

Total tangible common equity

$4,956,412

$4,537,872

$3,620,478

Total assets

$71,323,074

$72,845,072

$69,736,936

Less: Goodwill

(804,428

)

(804,428

)

(804,428

)

Less: Other intangibles

(7,531

)

(8,235

)

(10,559

)

Total tangible assets

$70,511,115

$72,032,409

$68,921,949

Tangible common equity to tangible assets

7.03

%

6.30

%

5.25

%

Common shares outstanding at end of period

71,787,349

72,365,926

72,127,595

Tangible book value per common share

$69.04

$62.71

$50.20

Quarterly average

Total stockholders’ equity [1]

$6,460,517

$6,303,672

$5,909,649

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

550,971

595,362

726,715

Adjusted total stockholder's equity

7,011,488

6,899,034

6,636,364

Less: Preferred Stock

(22,143

)

(22,143

)

(22,143

)

Less: Goodwill

(804,427

)

(804,427

)

(827,177

)

Less: Other intangibles

(7,995

)

(8,706

)

(11,083

)

Total tangible equity

$6,176,923

$6,063,758

$5,775,961

Return on average tangible common equity

9.98

%

11.77

%

9.36

%

[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/20241023874480/en/

Popular, Inc.

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

or

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

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