Popular, Inc. Announces First Quarter 2024 Financial Results

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Insights

The reported net income increase from $94.6 million in Q4 2023 to $103.3 million in Q1 2024 indicates a robust performance for Popular, Inc., buoyed by a significant rise in net interest income of $16.6 million. This increase demonstrates an effective yield management and the ability to capitalize on interest rate environments. Investors should note the expanded net interest margin, moving from 3.08% to 3.16%. This widening margin suggests that the bank is earning more from its lending activities relative to its deposit costs, a positive sign in the current economic climate.

The non-performing loans (NPLs) ratio remaining flat and a slight uptick in the annualized net charge-offs (NCOs) reflect a cautiously optimistic credit environment. Despite the increase in NCOs, the ratio remains under 1%, which is generally acceptable in the banking industry. The allowance for credit losses (ACL) ratio to loans shows a marginal increase, preparing for any potential credit deterioration. From a credit risk perspective, having an ACL to NPLs ratio over 200% is robust, indicating the bank is well-covered against potential losses.

Investments in liquidity and capital positions, such as a Common Equity Tier 1 ratio of 16.36%, are reassuring for stakeholders, signifying a buffer against possible financial distress. The increase in both loan and deposit balances suggests customer growth and trust in the bank's services. This balance sheet expansion is indicative of a healthy growth trend.

The additional after-tax impact of the FDIC Special Assessment and the tax expense related to prior period intercompany distributions are noteworthy events. The recognition of a $22.9 million tax-related expense due to the failure to pay U.S. withholding taxes by the U.S. based subsidiary presents an administrative oversight. This adjustment does not reflect on the operational performance of Popular, Inc., but rather an out-of-period compliance issue which has now been resolved. While it does not directly impact the ongoing liquidity or capital actions, transparency in these adjustments is vital for investor confidence.

It is important to recognize that the corporation's management does not anticipate the tax treatment of U.S. sourced dividends to impact liquidity or future capital actions significantly. This indicates a proactive approach to mitigating potential repercussions from tax liabilities. However, investors should be cognizant of the possible implications of tax treatments and subsequent adjustments as they can affect the perceived financial health of an institution.

Popular, Inc.'s deposit base stability and the increased interest income reflect positive trends for the bank in its market context. In the broader banking sector, a stable deposit base is often interpreted as customer loyalty and a reliable funding source for lending activities. The increase in loans ending balances and deposit balances indicates organic growth and potential market share gains.

While the operating expenses decreased overall, investors should be mindful of the $2.7 million increase when excluding the FDIC Special Assessment impact. As the banking industry continues to face challenges with operational efficiency, it’s essential to monitor cost management closely. The statement about the 'strength of liquidity and capital ratios positioning' the bank well for sustainable business growth is reassuring and suggests a forward-looking strategy to continue delivering positive results. Assessing the bank’s performance relative to its peers would provide additional context to these financial results and their implications in the market.

04/23/2024 - 08:00 AM

Net income of $103.3 million in Q1 2024, compared to net income of $94.6 million in Q4 2023.
Q1 2024 results include an after-tax impact of $9.1 million related to the FDIC Special Assessment compared to $45.3 million in Q4 2023, as well as a $22.9 million expense related to taxes due from prior period distributions from the Corporation’s U.S. based subsidiary, as explained further below.
Excluding the after-tax impact of the FDIC Special Assessment and the tax expense related to prior period intercompany distributions, adjusted net income was $135.2 million and $139.9 million for Q1 2024 and Q4 2023, respectively.
Net interest income amounted to $550.7 million, an increase of $16.6 million compared to Q4 2023.
Net interest margin of 3.16% in Q1 2024, compared to 3.08% in Q4 2023; net interest margin on a taxable equivalent basis of 3.38% in Q1 2024, compared to 3.26% in Q4 2023.
Non-interest income of $163.8 million, compared to $168.7 million in Q4 2023.
Operating expenses amounted to $483.1 million, a decrease of $48.0 million compared to Q4 2023. Excluding the impact of the FDIC Special Assessment in Q1 2024 and Q4 2023, and expenses associated with the prior period intercompany distributions, operating expenses increased by $2.7 million.

Credit Quality:
- Non-performing loans held-in-portfolio (“NPLs”) decreased by $3.5 million from Q4 2023; NPLs to loans ratio flat at 1.0%;
- Net charge-offs (“NCOs”) increased by $5.3 million from Q4 2023; annualized NCOs at 0.71% of average loans held-in-portfolio vs. 0.66% in Q4 2023;
- Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.11% vs. 2.08% in Q4 2023; and
- ACL to NPLs at 208.8% vs. 204.0% in Q4 2023.
Loans ending balances, excluding loans held-for-sale, increased by $53.8 million and by $615.5 million in average quarterly balances, from Q4 2023.
Ending deposit balances increased by $190.5 million while average quarterly balances increased by $767.2 million, from Q4 2023.
Common Equity Tier 1 ratio of 16.36%, Common Equity per Share of $71.32 and Tangible Book Value per Share of $60.06 at March 31, 2024.

SAN JUAN, Puerto Rico--(BUSINESS WIRE)-- Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $103.3 million for the quarter ended March 31, 2024, compared to net income of $94.6 million for the quarter ended December 31, 2023. Excluding the after-tax impact during the first quarter of 2024 and the fourth quarter of 2023 of the FDIC Special Assessment and the $22.9 million tax expense due to prior period intercompany distributions during the first quarter of 2024, adjusted net income was $135.2 million and $139.9 million for Q1 2024 and Q4 2023, respectively.

Ignacio Alvarez, President and Chief Executive Officer, said: “We are pleased to report solid earnings for the first quarter after considering the impact of an additional accrual for the FDIC special assessment and a tax related expense associated with prior period intercompany distributions. We continued to benefit from a stable deposit base, increased our net interest income by 3% and expanded our net interest margin by eight basis points. Credit remained stable, with trends similar to recent periods. The strength of our liquidity and capital ratios positions us well to continue pursuing sustainable business growth and delivering positive results. I want to thank our colleagues for their continued dedication and commitment to serve our customers and contribute to Popular's success.”

Significant Events

FDIC Special Assessment Increase in Estimate

On November 16, 2023, the Federal Deposit Insurance Corporation (“FDIC”) approved a final rule that imposes a special assessment (the “FDIC Special Assessment”) to recover the losses to the deposit insurance fund resulting from the FDIC’s use, in March 2023, of the systemic risk exception to the least-cost resolution test under the Federal Deposit Insurance Act in connection with the receiverships of several failed banks. The special assessments would be collected over eight quarters in 2024 and 2025 with the first assessment period beginning in January 1, 2024. In connection with this assessment, the Corporation recorded an expense of $71.4 million, $45.3 million net of tax, in the fourth quarter of 2023, representing the full amount of the estimated assessment at that time.

The special assessment amount and collection period may change as the estimated loss is periodically adjusted or if the total amount collected varies. The most recent loss estimate from the FDIC has increased from the $16.3 billion issued when the FDIC Special Assessment was approved. As a result, the Corporation recorded an additional expense of $14.3 million, $9.1 million net of tax, in the first quarter of 2024, based on the updated loss estimates.

Tax impact on Intercompany Distributions

The net income for the quarter ended March 31, 2024, included $22.9 million of expenses, of which $16.5 million is reflected in income tax expense, related to an out of period adjustment associated with the Corporation’s U.S. subsidiary’s failure to pay U.S. federal withholding taxes on certain distributions to the Bank Holding Company (BHC) in Puerto Rico, a foreign corporation for U.S. tax purposes, that occurred in certain years from 2014 to 2023. In addition to the $16.5 million of income tax expense, the Corporation also recognized $6.4 million, reflected in other operating expense, for interest due up to March 31, 2024 on the related late payment of the withholding tax.

Additionally, the Corporation recognized $6.5 million in income tax expense during the quarter ended March 31, 2024 to reflect the U.S. federal tax withholding liability and estimated related Puerto Rico income tax arising from a $50 million dividend paid during the quarter.

Dividends from the U.S. subsidiaries to the BHC are subject to a Federal 10% withholding tax and ordinary income tax in Puerto Rico, subject to foreign tax credits, use of available net operating losses and certain other limitations. The Corporation does not anticipate the tax treatment of U.S. sourced dividends to the BHC to impact BHC liquidity or future capital actions.

Earnings Highlights

(Unaudited)	Quarters ended
(Dollars in thousands, except per share information)	31-Mar-24		31-Dec-23			31-Mar-23
Net interest income	$	550,744	$	534,180		$	531,656
Provision for credit losses		72,598		78,663			47,637
Net interest income after provision for credit losses		478,146		455,517			484,019
Other non-interest income		163,818		168,743			161,961
Operating expenses		483,113		531,145			440,687
Income before income tax		158,851		93,115			205,293
Income tax expense (benefit)		55,568		(1,479	)		46,314
Net income	$	103,283	$	94,594		$	158,979
Net income applicable to common stock	$	102,930	$	94,241		$	158,626
Net income per common share - basic	$	1.43	$	1.31		$	2.22
Net income per common share - diluted	$	1.43	$	1.31		$	2.22

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. 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 and E for the quarter ended March 31, 2024. 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.

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 [1]		6,400		16,483			22,883
Adjusted net income (Non-GAAP)	$	179,538	$	44,319		$	135,219
[1] Refer to the Significant Events section of this press release for a description of this item.


Adjusted Net Income for the Quarter Ended December 31, 2023 (Non-GAAP)

(Unaudited)
(In thousands)	Income before income tax		Income tax expense (benefit)			Total
U.S. GAAP Net income	$	93,115	$	(1,479	)	$	94,594
Non-GAAP Adjustments:
FDIC Special Assessment [1]		71,435		(26,170	)		45,265
Adjusted net income (Non-GAAP)	$	164,550	$	24,691		$	139,859
[1] Refer to the Significant Events section of this press release for a description of this item.

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

Net interest income for the quarter ended March 31, 2024, was $550.7 million, an increase of $16.5 million when compared to $534.2 million in the last quarter of 2023. Net interest income on a taxable equivalent basis for the first quarter of 2024 was $589.5 million, compared to $564.8 million in the previous quarter, an increase of $24.7 million.

Net interest margin for the first quarter of 2024 was 3.16% compared with 3.08% the prior quarter or an increase of eight basis points. On a taxable equivalent basis, net interest margin for the first quarter of 2024 was 3.38%, compared to 3.26% in the last quarter of 2023, or a 12 basis points increase. Quarter over quarter, the main variances in net interest income on a taxable equivalent basis were:

Higher interest income from investment securities, trading, and money market investments by $23.7 million driven mainly due to reinvestment of maturities in higher yielding U.S. Treasury bills, and higher volume from the increase in deposits; and
higher interest income from loans by $11.1 million due to higher average volume by $612 million and higher yield by seven basis points. The increase in average loans was led by commercial loans but was reflected in all loan categories. The increase in loan yield results from new loan origination activity and the continued repricing of adjustable-rate loans in a higher interest rate environment;

partially offset by:

higher interest expense on deposits by $10.3 million, mainly due to higher cost of interest-bearing deposits by nine basis points, mainly at Popular Bank. In Puerto Rico, the cost of government deposits decreased one basis point quarter over quarter, while average balances increased by $498 million.

Net interest income for the Banco Popular de Puerto Rico (“BPPR”) segment amounted to $472.8 million for the first quarter of 2024, an increase of $17.9 million when compared to $454.9 million in net interest income during the last quarter of 2023. Net interest margin for the BPPR segment increased 14 basis points to 3.33% compared to 3.19% in the fourth quarter of 2023. The increase in net interest margin reflects a higher volume of loans by $423.6 million largely driven by commercial loans by $227.9 million coupled with higher volume across most loan categories. Earning assets yield improved 15 basis points from 4.88% in Q4 2023 to 5.03% in Q1 2024 mostly due to the repricing of investment securities. The cost of interest-bearing deposits increased by three basis points to 2.44% from 2.41% in the fourth quarter of 2023. Notwithstanding that, the cost of P.R. public funds decreased one basis point during Q1 2024, the increase in the cost of interest-bearing deposits in the first quarter of 2024 is driven by a higher proportion of P.R. public deposits for the quarter, which carry a higher rate. Total deposit cost in the first quarter of 2024 was 1.81%, compared to 1.79% in the fourth quarter of 2023, an increase of two basis points.

Net interest income for Popular Bank (“PB”) was $84.9 million for the quarter ended March 31, 2024, a decrease of $0.7 million when compared to $85.6 million in the fourth quarter of 2023. Net interest margin decreased by 13 basis points in the quarter to 2.59%, compared to 2.72% in the fourth quarter of 2023. The decrease in net interest margin was mostly driven by a higher cost and volume of deposits, partially offset by a higher volume of money market investments and investment securities. The cost of interest-bearing deposits was 3.86%, compared to 3.66% for the fourth quarter, or an increase of 20 basis points, while total deposit cost was 3.40% compared to 3.17% in the previous quarter.

Non-interest income

Non-interest income amounted to $163.8 million for the first quarter of 2024, a decrease of $4.9 million when compared to $168.7 million for the quarter ended December 31, 2023. The variance in non-interest income was driven primarily by:

an unfavorable variance in the adjustment for indemnity reserve on loans previously sold of $2.6 million;
lower other service fees by $2.4 million due mainly to contingent payments on insurance commissions that are typically received during the fourth quarter; and
lower income from mortgage banking activities by $2.0 million mainly due to fair value adjustments of mortgage servicing rights (“MSRs”);

partially offset by:

an increase of $3.9 million in other operating income mainly due to a higher income recognized for investments accounted under the “equity investment method” of $1.7 million and a gain on mortgage servicing claims of $1.3 million.

Refer to Table B for further details.

Operating expenses

Operating expenses for the first quarter of 2024 totaled $483.1 million, a decrease of $48.0 million when compared to the fourth quarter of 2023. Excluding the prior period adjustment of $6.4 million for interest accrued on tax withholdings adjustment and the effect of the FDIC Special Assessment discussed in the significant events section of this earnings release, total expenses for the first quarter of 2024 were $462.4 million, compared to $459.7 million in the previous quarter. The other factors that contributed to the variance in operating expenses were:

higher personnel cost by $20.7 million mainly due to higher annual incentive awards of performance shares and restricted stock expenses by $9.7 million; higher incentive compensation by $1.7 million; higher payroll taxes by $4.4 million and higher other compensation expenses by $3.5 million that traditionally are higher during the first quarter of the year;
higher credit card processing expenses by $5.5 million mainly due to lower credits in the first quarter of the year for volume incentives from our issuing partners; and
higher technology and software expenses by $2.7 million mainly from network management services.

partially offset by:

lower professional fees by $10.1 million mainly due to lower regulatory related consulting fees and lower advisory expenses related to corporate initiatives;
lower business promotion expense by $6.9 million mainly due to lower seasonal donations, advertising, strategic communications, and sponsorship expenses, which are typically higher in the fourth quarter;
lower operational losses by $3.4 million mainly related to legal settlements reserves and mortgage servicing operational losses; and
lower net occupancy expenses by $2.2 million mainly due to a decrease in buildings’ repair and maintenance costs;

Full-time equivalent employees were 9,132 as of March 31, 2024, compared to 9,088 as of December 31, 2023.

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

Income taxes

For the quarter ended March 31, 2024, the Corporation recorded an income tax expense of $55.6 million, compared to an income tax benefit of $1.5 million for the previous quarter. As mentioned in the significant events section of this earnings release, the income tax expense for the current quarter includes a net impact of $22.9 million related to withholding tax liabilities for distributions from the U.S. subsidiaries to the Corporation in Puerto Rico, out of which $16.5 million were related to distributions between the years 2014-2023 and $6.4 million were related to an intercompany distribution completed in the first quarter of 2024. The tax benefit for the fourth quarter of 2023 reflects the impact of lower income before tax, primarily due to the FDIC Special Assessment accrual of $71.4 million, and other adjustments recorded in that quarter.

The effective tax rate (“ETR”) for the first quarter of 2024 was 35.0%, compared to (1.6%) for the previous quarter. Excluding the impact of the withholding tax liabilities and the additional expense related to the FDIC Special Assessment during this quarter, the ETR would have been 24.7%. Excluding the FDIC Special Assessment, the ETR for the fourth quarter of 2023 would have been 15.0%.

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

During the first quarter of 2024, the Corporation reflected stable credit quality when compared to the previous quarter. Non-performing loans (“NPLs”) and net charge offs (“NCOs”) remained below historical averages and delinquencies improved in most loan categories from the prior 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 challenging environment.

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

At March 31, 2024, total NPLs held-in-portfolio decreased by $3.5 million from December 31, 2023. BPPR’s NPLs decreased by $30.1 million, broadly reflected across most loan categories. The commercial NPLs decrease includes a $5.1 million charge-off related to a previously reserved $17.9 million relationship. PB’s NPLs increased by $26.6 million, related to higher mortgage NPLs by $16.9 million, impacted by a single $17.2 million loan, and higher commercial NPLs by $10.2 million. At March 31, 2024, the ratio of NPLs to total loans held-in-portfolio was 1.0%, flat when compared to the fourth quarter of 2023.
Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $7.9 million quarter-over-quarter. In BPPR, total inflows decreased by $18.9 million driven by the abovementioned $17.9 million inflow in the fourth quarter of 2023. PB inflows increased by $26.8 million, driven by a $16.1 million mortgage inflow and higher commercial inflows by $10.7 million, as explained above,
NCOs amounted to $62.2 million, increasing by $5.3 million when compared to the fourth quarter of 2023. The increase in NCOs was driven by the abovementioned $5.1 million charge-off related to a previously reserved loan. Excluding this, NCOs were flat quarter-over-quarter. BPPR’s NCOs increased by $4.6 million quarter-over-quarter, mainly driven by higher commercial and consumer NCOs by $3.2 million each. Consumer NCOs increase was mostly related to higher credit cards and personal loans charge-offs by $3.1 million and $1.5 million, respectively, offset in part by lower auto NCOs by $1.7 million. PB’s NCOs remained flat quarter-over-quarter. The Corporation’s ratio of annualized NCOs to average loans held-in-portfolio was 0.71%, compared to 0.66% in the fourth quarter of 2023. Refer to Table N for further information on NCOs and related ratios.
At March 31, 2024, the allowance for credit losses (“ACL”) increased by $10.2 million from the fourth quarter of 2023 to $739.5 million. In BPPR, the ACL increased by $4.5 million, primarily driven by higher reserves for the consumer portfolios attributable to changes in credit quality. In PB, the ACL increased by $5.7 million from the previous quarter, mainly driven by higher reserves for the commercial portfolio due to changes in credit risk ratings.
The ACL incorporated updated macroeconomic scenarios for Puerto Rico and the United States. Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The baseline scenario continues to be assigned the highest probability, followed by the pessimistic scenario, and then the optimistic scenario. The weight assigned to the pessimistic scenario decreased this quarter in response to the positive momentum in the economy as expectations for the Federal Reserve achieving a soft landing have improved.
The 2024 annualized GDP growth in the baseline scenario improved to 2.0% and 2.3% for Puerto Rico and the United States, respectively, compared to 1.2% and 1.7% in the previous quarter. The 2024 forecasted average unemployment rate for Puerto Rico and the United States remained stable at 6.5% and 3.9%, respectively, compared to 6.8% and 4.0% in previous forecast.
The Corporation’s ratio of the ACL to loans held-in-portfolio was 2.11% in the first quarter of 2024, compared to 2.08% in the previous quarter. The ratio of the ACL to NPLs held-in-portfolio stood at 208.8%, compared to 204.0% in the previous quarter.
The provision for credit losses for the loan portfolios for the first quarter of 2024 was $72.4 million, compared to $75.2 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was $61.0 million, compared to $67.2 million in the previous quarter, while the provision for PB was $11.4 million, compared to $8.0 million in the previous quarter.
The provision for credit losses on our loan and lease portfolios, as well as the provision (release) for credit losses related to unfunded loan commitments of $(0.2) million and our investment portfolio of $0.4 million for the first quarter of 2024 are aggregated and presented in the provision for credit losses caption in our Consolidated Statement of Operations. For the first quarter, these combined concepts resulted in a provision expense of $72.6 million, compared to $78.7 million in the previous quarter.


Non-Performing Assets
(Unaudited)
(In thousands)	31-Mar-24			31-Dec-23			31-Mar-23
Non-performing loans held-in-portfolio	$	354,127		$	357,611		$	412,383
Other real estate owned (“OREO”)		80,542			80,416			91,721
Total non-performing assets	$	434,669		$	438,027		$	504,104
Net charge-offs (recoveries) for the quarter	$	62,200		$	56,947		$	32,813


Ratios:
Loans held-in-portfolio	$	35,118,738		$	35,064,971		$	32,338,373
Non-performing loans held-in-portfolio to loans held-in-portfolio		1.01	%		1.02	%		1.28	%
Allowance for credit losses to loans held-in-portfolio		2.11			2.08			2.13
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		208.84			203.95			167.11
Refer to Table L for additional information.


Provision for Credit Losses (Benefit) - Loan Portfolios

(Unaudited)	Quarters ended
(In thousands)	31-Mar-24		31-Dec-23		31-Mar-23
Provision for credit losses (benefit) - loan portfolios:
BPPR	$	61,008	$	67,235	$	45,203
Popular U.S.		11,378		7,983		1,943
Total provision for credit losses (benefit) - loan portfolios	$	72,386	$	75,218	$	47,146


Credit Quality by Segment
(Unaudited)
(In thousands)	Quarters ended
BPPR	31-Mar-24			31-Dec-23			31-Mar-23
Provision for credit losses - loan portfolios	$	61,008		$	67,235		$	45,203
Net charge-offs		56,561			51,913			31,464
Total non-performing loans held-in-portfolio		298,594			328,718			378,979
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.92	%		0.86	%		0.56	%
Allowance / loans held-in-portfolio		2.62	%		2.61	%		2.57	%
Allowance / non-performing loans held-in-portfolio		215.79	%		194.65	%		154.89	%

	Quarters ended
Popular U.S.	31-Mar-24			31-Dec-23			31-Mar-23
Provision for credit losses - loan portfolios	$	11,378		$	7,983		$	1,943
Net charge-offs		5,639			5,034			1,349
Total non-performing loans held-in-portfolio		55,533			28,893			33,404
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.21	%		0.19	%		0.06	%
Allowance / loans held-in-portfolio		0.91	%		0.85	%		1.07	%
Allowance / non-performing loans held-in-portfolio		171.47	%		309.70	%		305.69	%


Financial Condition Highlights

(Unaudited)
(In thousands)	31-Mar-24		31-Dec-23		31-Mar-23
Cash and money market investments	$	6,249,064	$	7,419,333	$	6,560,301
Investment securities		26,324,139		25,148,673		25,951,936
Loans		35,118,738		35,064,971		32,338,373
Total assets		70,936,939		70,758,155		67,675,759
Deposits		63,808,784		63,618,243		60,953,888
Borrowings		1,032,393		1,078,332		1,402,626
Total liabilities		65,759,625		65,611,202		63,205,034
Stockholders’ equity		5,177,314		5,146,953		4,470,725

Total assets amounted to $70.9 billion at March 31, 2024, an increase of $178.8 million from the fourth quarter of 2023, driven by:

an increase in securities available-for-sale (“AFS”) of $1.3 billion, mainly due to purchases of U.S. Treasury Securities, partially offset by repayments and maturities and higher unrealized losses on mortgage-backed securities;
an increase in other assets of $106.3 million mainly due to unsettled trade receivable from the maturity of U.S. Treasury Notes during the first quarter for which the proceeds were received during the second quarter; and
an increase in loans held-in-portfolio of $53.8 million driven by an increase of $123.8 million at BPPR, mainly in the mortgage portfolio as well as in auto loans, partially offset by a decrease of $70.1 million at PB mainly from commercial loans;

partially offset by:

a net decrease in cash and money market investments of $1.2 billion due to the investments in the debt securities portfolio and loan originations; and
a decrease in securities held-to-maturity (“HTM”) of $111.1 million driven by maturities of U.S. Treasury securities, partially offset by the amortization of $44.0 million of the discount related to U.S. Treasury securities previously reclassified from the AFS to HTM.

Total liabilities increased by $148.4 million from the fourth quarter of 2023, driven by:

an increase of $190.5 million in deposits, mainly in retail deposits, time deposits and deposits in trust, partially offset by a decrease in P.R. public sector accounts at BPPR;

partially offset by:

a decrease of $25.3 million in assets sold under agreements to repurchase mainly due to maturities at PB; and
a decrease of $20.6 million in notes payable due to $20.0 million in repayment of Federal Home Loan Bank Advances mainly in PB.

Stockholders' equity increased by $30.4 million from the fourth quarter of 2023, mainly due to net income for the quarter of $103.3 million and the amortization of unrealized losses from securities previously reclassified to HTM of $35.2 million, net of taxes, partially offset by the after-tax impact of the increase in net unrealized losses in the portfolio of AFS securities of $71.1 million and common and preferred dividends declared during the quarter.

Common Equity Tier 1 ratio (“CET1”), common equity per share and tangible book value per share were 16.36%, $71.32 and $60.06, respectively, at March 31, 2024, compared to 16.30%, $71.03 and $59.74, respectively, at December 31, 2023. 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 and in our Form 10-Q for the quarter ended March 31, 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, Tuesday, April 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 734300.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Thursday, May 23, 2024. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 769181.

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

Popular, Inc.

Financial Supplement to First 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) - For the quarter ended March 31, 2024 and December 31,2023

Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - For the quarter ended March 31, 2024 and March 31,2023

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

Table G - Mortgage Banking Activities & Other Service Fees

Table H - Loans and Deposits

Table I - Loan Delinquency - PUERTO RICO 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 - Loan Portfolios - CONSOLIDATED

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

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

Table R - Reconciliation to GAAP Financial Measures




POPULAR, INC.
Financial Supplement to First Quarter 2024 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)

	Quarters ended
	31-Mar-24			31-Dec-23			31-Mar-23
Basic EPS	$	1.43		$	1.31		$	2.22
Diluted EPS	$	1.43		$	1.31		$	2.22
Average common shares outstanding		71,869,735			71,810,073			71,541,778
Average common shares outstanding - assuming dilution		71,966,803			71,881,020			71,606,196
Common shares outstanding at end of period		72,284,875			72,153,621			71,965,984
Market value per common share	$	88.09		$	82.07		$	57.41
Market capitalization - (In millions)	$	6,368		$	5,922		$	4,132
Return on average assets		0.57	%		0.52	%		0.93	%
Return on average common equity		6.07	%		5.55	%		10.00	%
Net interest margin (non-taxable equivalent basis)		3.16	%		3.08	%		3.22	%
Net interest margin (taxable equivalent basis) -non-GAAP		3.38	%		3.26	%		3.46	%
Common equity per share	$	71.32		$	71.03		$	61.82
Tangible common book value per common share (non-GAAP) [1]	$	60.06		$	59.74		$	50.15
Tangible common equity to tangible assets (non-GAAP) [1]		6.19	%		6.16	%		5.40	%
Return on average tangible common equity [1]		6.90	%		6.32	%		11.51	%
Tier 1 capital		16.42	%		16.36	%		16.79	%
Total capital		18.19	%		18.13	%		18.61	%
Tier 1 leverage		8.45	%		8.51	%		8.37	%
Common Equity Tier 1 capital		16.36	%		16.30	%		16.73	%
[1] Refer to Table R for reconciliation to GAAP financial measures.





POPULAR, INC.
Financial Supplement to First Quarter 2024 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
	Quarters ended						Variance			Quarter ended			Variance
							Q1 2024						Q1 2024
(In thousands, except per share information)	31-Mar-24			31-Dec-23			vs. Q4 2023			31-Mar-23			vs. Q1 2023
Interest income:
Loans	$	638,730		$	623,438		$	15,292		$	541,210		$	97,520
Money market investments		88,516			100,840			(12,324	)		65,724			22,792
Investment securities		166,895			143,214			23,681			132,088			34,807
Total interest income		894,141			867,492			26,649			739,022			155,119
Interest expense:
Deposits		329,496			319,200			10,296			193,215			136,281
Short-term borrowings		1,192			1,342			(150	)		2,885			(1,693	)
Long-term debt		12,709			12,770			(61	)		11,266			1,443
Total interest expense		343,397			333,312			10,085			207,366			136,031
Net interest income		550,744			534,180			16,564			531,656			19,088
Provision for credit losses		72,598			78,663			(6,065	)		47,637			24,961
Net interest income after provision for credit losses		478,146			455,517			22,629			484,019			(5,873	)
Service charges on deposit accounts		37,442			37,699			(257	)		34,678			2,764
Other service fees		94,272			96,692			(2,420	)		90,076			4,196
Mortgage banking activities		4,360			6,388			(2,028	)		7,400			(3,040	)
Net gain, including impairment, on equity securities		1,103			2,317			(1,214	)		1,100			3
Net gain on trading account debt securities		361			750			(389	)		378			(17	)
Net loss on sale of loans, including valuation adjustments on loans held-for-sale		-			(71	)		71			-			-
Adjustments to indemnity reserves on loans sold		(237	)		2,350			(2,587	)		612			(849	)
Other operating income		26,517			22,618			3,899			27,717			(1,200	)
Total non-interest income		163,818			168,743			(4,925	)		161,961			1,857
Operating expenses:
Personnel costs
Salaries		129,384			127,809			1,575			125,393			3,991
Commissions, incentives and other bonuses		38,611			26,632			11,979			31,162			7,449
Pension, postretirement and medical insurance		17,385			17,598			(213	)		15,378			2,007
Other personnel costs, including payroll taxes		29,997			22,626			7,371			26,827			3,170
Total personnel costs		215,377			194,665			20,712			198,760			16,617
Net occupancy expenses		28,041			30,282			(2,241	)		26,039			2,002
Equipment expenses		9,567			10,179			(612	)		8,412			1,155
Other taxes		14,375			14,636			(261	)		16,291			(1,916	)
Professional fees		28,918			39,065			(10,147	)		33,431			(4,513	)
Technology and software expenses		79,462			76,772			2,690			68,559			10,903
Processing and transactional services
Credit and debit cards		12,144			6,682			5,462			12,550			(406	)
Other processing and transactional services		22,050			22,779			(729	)		21,359			691
Total processing and transactional services		34,194			29,461			4,733			33,909			285
Communications		4,557			4,181			376			4,088			469
Business promotion
Rewards and customer loyalty programs		14,056			14,130			(74	)		12,348			1,708
Other business promotion		6,933			13,767			(6,834	)		6,523			410
Total business promotion		20,989			27,897			(6,908	)		18,871			2,118
Deposit insurance		23,887			81,385			(57,498	)		8,865			15,022
Other real estate owned (OREO) income		(5,321	)		(5,178	)		(143	)		(1,694	)		(3,627	)
Other operating expenses
Operational losses		3,561			6,921			(3,360	)		6,800			(3,239	)
All other		24,711			20,084			4,627			17,561			7,150
Total other operating expenses		28,272			27,005			1,267			24,361			3,911
Amortization of intangibles		795			795			-			795			-
Total operating expenses		483,113			531,145			(48,032	)		440,687			42,426
Income before income tax		158,851			93,115			65,736			205,293			(46,442	)
Income tax expense (benefit)		55,568			(1,479	)		57,047			46,314			9,254
Net income	$	103,283		$	94,594		$	8,689		$	158,979		$	(55,696	)
Net income applicable to common stock	$	102,930		$	94,241		$	8,689		$	158,626		$	(55,696	)
Net income per common share - basic	$	1.43		$	1.31		$	0.12		$	2.22		$	(0.79	)
Net income per common share - diluted	$	1.43		$	1.31		$	0.12		$	2.22		$	(0.79	)
Dividends Declared per Common Share	$	0.62		$	0.62		$	-		$	0.55		$	0.07





Popular, Inc.
Financial Supplement to First Quarter 2024 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
										Variance
										Q1 2024 vs.
(In thousands)	31-Mar-24			31-Dec-23			31-Mar-23			Q4 2023
Assets:
Cash and due from banks	$	320,486		$	420,462		$	462,013		$	(99,976	)
Money market investments		5,928,578			6,998,871			6,098,288			(1,070,293	)
Trading account debt securities, at fair value		27,308			31,568			29,839			(4,260	)
Debt securities available-for-sale, at fair value		18,017,924			16,729,044			17,173,128			1,288,880
Less: Allowance for credit losses		500			-			-			500
Debt securities available-for-sale, net		18,017,424			16,729,044			17,173,128			1,288,380
Debt securities held-to-maturity, at amortized cost		8,083,160			8,194,335			8,563,052			(111,175	)
Less: Allowance for credit losses		5,731			5,780			6,792			(49	)
Debt securities held-to-maturity, net		8,077,429			8,188,555			8,556,260			(111,126	)
Equity securities		195,747			193,726			185,917			2,021
Loans held-for-sale, at lower of cost or fair value		5,352			4,301			11,181			1,051
Loans held-in-portfolio		35,486,161			35,420,879			32,645,023			65,282
Less: Unearned income		367,423			355,908			306,650			11,515
Allowance for credit losses		739,544			729,341			689,120			10,203
Total loans held-in-portfolio, net		34,379,194			34,335,630			31,649,253			43,564
Premises and equipment, net		588,708			565,284			508,007			23,424
Other real estate		80,542			80,416			91,721			126
Accrued income receivable		266,908			263,433			239,815			3,475
Mortgage servicing rights, at fair value		114,964			118,109			127,475			(3,145	)
Other assets		2,120,902			2,014,564			1,703,285			106,338
Goodwill		804,428			804,428			827,428			-
Other intangible assets		8,969			9,764			12,149			(795	)
Total assets	$	70,936,939		$	70,758,155		$	67,675,759		$	178,784
Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing	$	15,492,050		$	15,419,624		$	15,940,850		$	72,426
Interest bearing		48,316,734			48,198,619			45,013,038			118,115
Total deposits		63,808,784			63,618,243			60,953,888			190,541
Assets sold under agreements to repurchase		66,090			91,384			123,499			(25,294	)
Notes payable		966,303			986,948			1,279,127			(20,645	)
Other liabilities		918,448			914,627			848,520			3,821
Total liabilities		65,759,625			65,611,202			63,205,034			148,423
Stockholders’ equity:
Preferred stock		22,143			22,143			22,143			-
Common stock		1,048			1,048			1,047			-
Surplus		4,847,466			4,843,399			4,792,619			4,067
Retained earnings		4,253,030			4,194,851			3,982,140			58,179
Treasury stock		(2,013,187	)		(2,018,957	)		(2,025,399	)		5,770
Accumulated other comprehensive loss, net of tax		(1,933,186	)		(1,895,531	)		(2,301,825	)		(37,655	)
Total stockholders’ equity		5,177,314			5,146,953			4,470,725			30,361
Total liabilities and stockholders’ equity	$	70,936,939		$	70,758,155		$	67,675,759		$	178,784





Popular, Inc.
Financial Supplement to First Quarter 2024 Earnings Release
Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP)
For the quarters ended March 31, 2024 and December 31, 2023
(Unaudited)

																					Variance
Average Volume							Average Yields / Costs							Interest							Attributable to
31-Mar-24		31-Dec-23		Variance			31-Mar-24		31-Dec-23		Variance			31-Mar-24		31-Dec-23		Variance			Rate			Volume
(In millions)														(In thousands)
$	6,484	$	7,307	$	(823	)	5.49	%	5.47	%	0.02	%	Money market investments	$	88,516	$	100,840	$	(12,324	)	$	(1,068	)	$	(11,256	)
	28,308		27,099		1,209		2.71		2.28		0.43		Investment securities [1]		191,103		155,118		35,985			28,398			7,587
	33		31		2		3.75		3.72		0.03		Trading securities		311		293		18			(2	)		20
													Total money market,
													investment and trading
	34,825		34,437		388		3.23		2.96		0.27		securities		279,930		256,251		23,679			27,328			(3,649	)
													Loans:
	17,613		17,251		362		6.84		6.71		0.13		Commercial		299,504		291,791		7,713			1,549			6,164
	992		927		65		8.96		9.04		(0.08	)	Construction		22,100		21,131		969			(486	)		1,455
	1,742		1,707		35		6.74		6.60		0.14		Leasing		29,353		28,174		1,179			593			586
	7,723		7,626		97		5.62		5.83		(0.21	)	Mortgage		108,543		111,215		(2,672	)		(4,081	)		1,409
	3,227		3,215		12		13.90		13.43		0.47		Consumer		111,490		108,859		2,631			1,870			761
	3,763		3,722		41		8.77		8.61		0.16		Auto		82,054		80,731		1,323			433			890
	35,060		34,448		612		7.48		7.41		0.07		Total loans		653,044		641,901		11,143			(122	)		11,265
$	69,885	$	68,885	$	1,000		5.36	%	5.18	%	0.18	%	Total earning assets	$	932,974	$	898,152	$	34,822		$	27,206		$	7,616
													Interest bearing deposits:
$	25,703	$	25,027	$	676		3.63	%	3.60	%	0.03	%	NOW and money market [2]	$	232,129	$	227,079	$	5,050		$	3,500		$	1,550
	14,700		14,934		(234	)	0.93		0.85		0.08		Savings		34,171		32,073		2,098			1,819			279
	8,547		8,288		259		2.97		2.87		0.10		Time deposits		63,196		60,048		3,148			1,148			2,000
	48,950		48,249		701		2.71		2.62		0.09		Total interest bearing deposits		329,496		319,200		10,296			6,467			3,829
	15,083		15,017		66								Non-interest bearing demand deposits
	64,033		63,266		767		2.07		2.00		0.07		Total deposits		329,496		319,200		10,296			6,467			3,829
	84		94		(10	)	5.70		5.64		0.06		Short-term borrowings		1,192		1,342		(150	)		(2	)		(148	)
													Other medium and
	998		1,018		(20	)	5.13		5.04		0.09		long-term debt		12,709		12,770		(61	)		21			(82	)
													Total interest bearing
	50,032		49,361		671		2.76		2.68		0.08		liabilities (excluding demand deposits)		343,397		333,312		10,085			6,486			3,599

	4,770		4,507		263								Other sources of funds
$	69,885	$	68,885	$	1,000		1.98	%	1.92	%	0.06	%	Total source of funds		343,397		333,312		10,085			6,486			3,599
													Net interest margin/
							3.38	%	3.26	%	0.12	%	income on a taxable equivalent basis (Non-GAAP)		589,577		564,840		24,737		$	20,720		$	4,017
							2.60	%	2.50	%	0.10	%	Net interest spread
													Taxable equivalent adjustment		38,833		30,660		8,173
													Net interest margin/ income
							3.16	%	3.08	%	0.08	%	non-taxable equivalent basis (GAAP)	$	550,744	$	534,180	$	16,564
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 First Quarter 2024 Earnings Release
Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP)
For the quarters ended March 31, 2024 and March 31, 2023
(Unaudited)

																					Variance
Average Volume							Average Yields / Costs							Interest							Attributable to
31-Mar-24		31-Mar-23		Variance			31-Mar-24		31-Mar-23		Variance			31-Mar-24		31-Mar-23		Variance			Rate			Volume
(In millions)														(In thousands)
$	6,484	$	5,736	$	748		5.49	%	4.65	%	0.84	%	Money market investments	$	88,516	$	65,724	$	22,792		$	13,566		$	9,226
	28,308		28,862		(554	)	2.71		2.22		0.49		Investment securities [1]		191,103		158,914		32,189			35,317			(3,128	)
	33		31		2		3.75		4.47		(0.72	)	Trading securities		311		338		(27	)		(55	)		28
													Total money market,
													investment and trading
	34,825		34,629		196		3.23		2.63		0.60		securities		279,930		224,976		54,954			48,828			6,126
													Loans:
	17,613		15,761		1,852		6.84		6.32		0.52		Commercial		299,504		245,469		54,035			23,691			30,344
	992		732		260		8.96		8.40		0.56		Construction		22,100		15,155		6,945			1,215			5,730
	1,742		1,588		154		6.74		6.12		0.62		Leasing		29,353		24,282		5,071			2,595			2,476
	7,723		7,388		335		5.62		5.46		0.16		Mortgage		108,543		100,773		7,770			3,113			4,657
	3,227		3,020		207		13.90		12.85		1.05		Consumer		111,490		95,715		15,775			8,441			7,334
	3,763		3,559		204		8.77		8.14		0.63		Auto		82,054		71,407		10,647			6,421			4,226
	35,060		32,048		3,012		7.48		6.97		0.51		Total loans		653,044		552,801		100,243			45,476			54,767
$	69,885	$	66,677	$	3,208		5.36	%	4.72	%	0.64	%	Total earning assets	$	932,974	$	777,777	$	155,197		$	94,304		$	60,893
													Interest bearing deposits:
$	25,703	$	23,313	$	2,390		3.63	%	2.52	%	1.11	%	NOW and money market [2]	$	232,129	$	144,970	$	87,159		$	70,094		$	17,065
	14,700		15,029		(329	)	0.93		0.47		0.46		Savings		34,171		17,443		16,728			16,240			488
	8,547		7,099		1,448		2.97		1.76		1.21		Time deposits		63,196		30,802		32,394			21,831			10,563
	48,950		45,441		3,509		2.71		1.72		0.99		Total interest bearing deposits		329,496		193,215		136,281			108,165			28,116
	15,083		15,704		(621	)							Non-interest bearing demand deposits
	64,033		61,145		2,888		2.07		1.28		0.78		Total deposits		329,496		193,215		136,281			108,165			28,116
	84		247		(163	)	5.70		4.74		0.96		Short-term borrowings		1,192		2,885		(1,693	)		309			(2,002	)
													Other medium and
	998		947		51		5.13		4.78		0.35		long-term debt		12,709		11,266		1,443			399			1,044
													Total interest bearing
	50,032		46,635		3,397		2.76		1.80		0.96		liabilities (excluding demand deposits)		343,397		207,366		136,031			108,873			27,158

	4,770		4,338		432								Other sources of funds
$	69,885	$	66,677	$	3,208		1.98	%	1.26	%	0.72	%	Total source of funds		343,397		207,366		136,031			108,873			27,158
													Net interest margin/
							3.38	%	3.46	%	(0.08	)%	income on a taxable equivalent basis (Non-GAAP)		589,577		570,411		19,166		$	(14,569	)	$	33,735
							2.60	%	2.92	%	(0.32	)%	Net interest spread
													Taxable equivalent adjustment		38,833		38,755		78
													Net interest margin/ income
							3.16	%	3.22	%	(0.06	)%	non-taxable equivalent basis (GAAP)	$	550,744	$	531,656	$	19,088
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 First Quarter 2024 Earnings Release

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

[THIS PAGE INTENTIONALLY LEFT BLANK]





Popular, Inc.
Financial Supplement to First Quarter 2024 Earnings Release
Table G - Mortgage Banking Activities and Other Service Fees
(Unaudited)

Mortgage Banking Activities
	Quarters ended									Variance
(In thousands)	31-Mar-24			31-Dec-23			31-Mar-23			Q1 2024 vs.Q4 2023			Q1 2024 vs.Q1 2023
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees	$	7,751		$	7,898		$	8,689		$	(147	)	$	(938	)
Mortgage servicing rights fair value adjustments		(3,439	)		(1,204	)		(1,376	)		(2,235	)		(2,063	)
Total mortgage servicing fees, net of fair value adjustments		4,312			6,694			7,313			(2,382	)		(3,001	)
Net gain on sale of loans, including valuation on loans held-for-sale		74			45			263			29			(189	)
Trading account profit (loss):
Unrealized gains (loss) on outstanding derivative positions		101			(298	)		(131	)		399			232
Realized gains (losses) on closed derivative positions		3			(47	)		56			50			(53	)
Total trading account profit (loss)		104			(345	)		(75	)		449			179
Losses on repurchased loans, including interest advances		(130	)		(6	)		(101	)		(124	)		(29	)
Total mortgage banking activities	$	4,360		$	6,388		$	7,400		$	(2,028	)	$	(3,040	)


Other Service Fees
	Quarters ended						Variance
(In thousands)	31-Mar-24		31-Dec-23		31-Mar-23		Q1 2024 vs.Q4 2023			Q1 2024 vs.Q1 2023
Other service fees:
Debit card fees	$	14,248	$	13,944	$	13,166	$	304		$	1,082
Insurance fees		14,689		16,739		13,873		(2,050	)		816
Credit card fees		40,853		41,439		40,498		(586	)		355
Sale and administration of investment products		7,427		6,862		6,558		565			869
Trust fees		6,707		6,716		5,775		(9	)		932
Other fees		10,348		10,992		10,206		(644	)		142
Total other service fees	$	94,272	$	96,692	$	90,076	$	(2,420	)	$	4,196





Popular, Inc.
Financial Supplement to First Quarter 2024 Earnings Release
Table H - Loans and Deposits
(Unaudited)

Loans - Ending Balances
							Variance
(In thousands)	31-Mar-24		31-Dec-23		31-Mar-23		Q1 2024 vs.Q4 2023			% of Change		Q1 2024 vs.Q1 2023			% of Change
Loans held-in-portfolio:
Commercial
Commercial multi-family	$	2,384,635	$	2,415,620	$	2,336,357		(30,985	)	(1.28	%)		48,278		2.07	%
Commercial real estate non-owner occupied		5,057,059		5,087,421		4,650,675		(30,362	)	(0.60	%)		406,384		8.74	%
Commercial real estate owner occupied		3,117,844		3,080,635		3,018,587		37,209		1.21	%		99,257		3.29	%
Commercial and industrial		7,025,483		7,126,121		5,999,642		(100,638	)	(1.41	%)		1,025,841		17.10	%
Total Commercial		17,585,021		17,709,797		16,005,261		(124,776	)	(0.70	%)		1,579,760		9.87	%
Construction		1,009,303		959,280		698,996		50,023		5.21	%		310,307		44.39	%
Leasing		1,765,413		1,731,809		1,614,344		33,604		1.94	%		151,069		9.36	%
Mortgage		7,783,662		7,695,917		7,405,907		87,745		1.14	%		377,755		5.10	%
Consumer
Credit cards		1,142,153		1,135,747		1,046,196		6,406		0.56	%		95,957		9.17	%
Home equity lines of credit		66,717		65,953		69,887		764		1.16	%		(3,170	)	(4.54	%)
Personal		1,897,010		1,945,247		1,841,069		(48,237	)	(2.48	%)		55,941		3.04	%
Auto		3,706,854		3,660,780		3,517,940		46,074		1.26	%		188,914		5.37	%
Other		162,605		160,441		138,773		2,164		1.35	%		23,832		17.17	%
Total Consumer		6,975,339		6,968,168		6,613,865		7,171		0.10	%		361,474		5.47	%
Total loans held-in-portfolio	$	35,118,738	$	35,064,971	$	32,338,373	$	53,767		0.15	%	$	2,780,365		8.60	%
Loans held-for-sale:
Mortgage	$	5,352	$	4,301	$	11,181	$	1,051		24.44	%	$	(5,829	)	(52.13	%)
Total loans held-for-sale	$	5,352	$	4,301	$	11,181	$	1,051		24.44	%	$	(5,829	)	(52.13	%)
Total loans	$	35,124,090	$	35,069,272	$	32,349,554	$	54,818		0.16	%	$	2,774,536		8.58	%


Deposits - Ending Balances
							Variance
(In thousands)	31-Mar-24		31-Dec-23		31-Mar-23		Q1 2024 vs. Q4 2023			% of Change		Q1 2024 vs.Q1 2023			% of Change
Demand deposits [1]	$	26,473,367	$	27,579,054	$	26,191,672	$	(1,105,687	)	(4.01	%)	$	281,695		1.08	%
Savings, NOW and money market deposits (non-brokered)		27,852,551		26,817,844		26,622,020		1,034,707		3.86	%		1,230,531		4.62	%
Savings, NOW and money market deposits (brokered)		727,794		719,453		734,069		8,341		1.16	%		(6,275	)	(0.85	%)
Time deposits (non-brokered)		7,850,459		7,546,138		6,891,051		304,321		4.03	%		959,408		13.92	%
Time deposits (brokered CDs)		904,613		955,754		515,076		(51,141	)	(5.35	%)		389,537		75.63	%
Total deposits	$	63,808,784	$	63,618,243	$	60,953,888	$	190,541		0.30	%	$	2,854,896		4.68	%
[1] Includes interest and non-interest bearing demand deposits.





Popular, Inc.
Financial Supplement to First Quarter 2024 Earnings Release
Table I - Loan Delinquency -BPPR Operations
(Unaudited)
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			days			or more			past due			Current			Loans HIP			loans			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			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			7			233			2,336			2,569			-			7
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

31-Dec-23
BPPR
	Past due																		Past due 90 days or more
	30-59			60-89			90 days			Total									Non-accrual			Accruing
(In thousands)	days			days			or more			past due			Current			Loans HIP			loans			loans
Commercial multi-family	$	524		$	-		$	1,991		$	2,515		$	289,427		$	291,942		$	1,991		$	-
Commercial real estate:
Non-owner occupied		5,510			77			8,745			14,332			2,990,922			3,005,254			8,745			-
Owner occupied		2,726			249			29,430			32,405			1,365,978			1,398,383			29,430			-
Commercial and industrial		6,998			3,352			36,210			46,560			4,749,666			4,796,226			32,826			3,384
Construction		-			-			6,378			6,378			163,479			169,857			6,378			-
Mortgage		260,897			114,282			416,528			791,707			5,600,117			6,391,824			175,106			241,422
Leasing		20,140			6,719			8,632			35,491			1,696,318			1,731,809			8,632			-
Consumer:
Credit cards		13,243			9,912			23,281			46,436			1,089,292			1,135,728			-			23,281
Home equity lines of credit		230			-			26			256			2,392			2,648			-			26
Personal		19,065			14,611			19,031			52,707			1,723,603			1,776,310			19,031			-
Auto		100,061			27,443			45,615			173,119			3,487,661			3,660,780			45,615			-
Other		1,641			204			1,213			3,058			147,104			150,162			964			249
Total	$	431,035		$	176,849		$	597,080		$	1,204,964		$	23,305,959		$	24,510,923		$	328,718		$	268,362


Variance
	Past due																		Past due 90 days or more
	30-59			60-89			90 days			Total									Non-accrual			Accruing
(In thousands)	days			days			or more			past due			Current			Loans HIP			loans			loans
Commercial multi-family	$	18,860		$	2,027		$	(1,885	)	$	19,002		$	(7,293	)	$	11,709		$	(1,885	)	$	-
Commercial real estate:
Non-owner occupied		(3,132	)		3,201			(823	)		(754	)		(8,015	)		(8,769	)		(823	)		-
Owner occupied		3,902			183			(3,306	)		779			26,930			27,709			(3,306	)		-
Commercial and industrial		(3,978	)		5,200			(2,469	)		(1,247	)		(49,856	)		(51,103	)		(3,655	)		1,186
Construction		-			-			(6,378	)		(6,378	)		(755	)		(7,133	)		(6,378	)		-
Mortgage		(6,889	)		(7,058	)		(31,466	)		(45,413	)		137,140			91,727			(8,633	)		(22,833	)
Leasing		(204	)		(1,967	)		(1,365	)		(3,536	)		37,140			33,604			(1,365	)		-
Consumer:
Credit cards		(209	)		(384	)		577			(16	)		6,424			6,408			-			577
Home equity lines of credit		(230	)		226			(19	)		(23	)		(56	)		(79	)		-			(19	)
Personal		757			(2,442	)		61			(1,624	)		(28,193	)		(29,817	)		61			-
Auto		(17,104	)		(9,023	)		(3,808	)		(29,935	)		76,009			46,074			(3,808	)		-
Other		(619	)		(54	)		(274	)		(947	)		4,463			3,516			(332	)		58
Total	$	(8,846	)	$	(10,091	)	$	(51,155	)	$	(70,092	)	$	193,938		$	123,846		$	(30,124	)	$	(21,031	)





Popular, Inc.
Financial Supplement to First Quarter 2024 Earnings Release
Table J - Loan Delinquency - Popular U.S. Operations
(Unaudited)
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			days			or more			past due			Current			Loans HIP			loans			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			-			-			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		-			-			-			-			17			17			-			-
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		-			-			1			1			8,926			8,927			1			-
Total	$	57,613		$	23,619		$	55,744		$	136,976		$	10,346,993		$	10,483,969		$	55,533		$	211

31-Dec-23
Popular U.S.
	Past due																		Past due 90 days or more
	30-59			60-89			90 days			Total									Non-accrual			Accruing
(In thousands)	days			days			or more			past due			Current			Loans HIP			loans			loans
Commercial multi-family	$	9,141		$	2,001		$	-		$	11,142		$	2,112,536		$	2,123,678		$	-		$	-
Commercial real estate:
Non-owner occupied		566			1,036			1,117			2,719			2,079,448			2,082,167			1,117			-
Owner occupied		30,560			-			6,274			36,834			1,645,418			1,682,252			6,274			-
Commercial and industrial		7,815			697			3,881			12,393			2,317,502			2,329,895			3,772			109
Construction		-			-			-			-			789,423			789,423			-			-
Mortgage		48,818			7,821			11,191			67,830			1,236,263			1,304,093			11,191			-
Consumer:
Credit cards		-			-			-			-			19			19			-			-
Home equity lines of credit		1,472			4			3,733			5,209			58,096			63,305			3,733			-
Personal		2,222			1,948			2,805			6,975			161,962			168,937			2,805			-
Other		4			-			1			5			10,274			10,279			1			-
Total	$	100,598		$	13,507		$	29,002		$	143,107		$	10,410,941		$	10,554,048		$	28,893		$	109



Variance
	Past due																		Past due 90 days or more
	30-59			60-89			90 days			Total									Non-accrual			Accruing
(In thousands)	days			days			or more			past due			Current			Loans HIP			loans			loans
Commercial multi-family	$	(5,707	)	$	(2,001	)	$	8,700		$	992		$	(43,686	)	$	(42,694	)	$	8,700		$	-
Commercial real estate:
Non-owner occupied		174			328			1,290			1,792			(23,385	)		(21,593	)		1,290			-
Owner occupied		(24,453	)		19,009			(2,397	)		(7,841	)		17,341			9,500			(2,397	)		-
Commercial and industrial		2,146			(69	)		2,753			4,830			(54,365	)		(49,535	)		2,651			102
Construction		8,825			-			-			8,825			48,331			57,156			-			-
Mortgage		(23,260	)		(7,288	)		16,880			(13,668	)		9,686			(3,982	)		16,880			-
Consumer:
Credit cards		-			-			-			-			(2	)		(2	)		-			-
Home equity lines of credit		(626	)		386			253			13			830			843			253			-
Personal		(80	)		(253	)		(737	)		(1,070	)		(17,350	)		(18,420	)		(737	)		-
Other		(4	)		-			-			(4	)		(1,348	)		(1,352	)		-			-
Total	$	(42,985	)	$	10,112		$	26,742		$	(6,131	)	$	(63,948	)	$	(70,079	)	$	26,640		$	102





Popular, Inc.
Financial Supplement to First Quarter 2024 Earnings Release
Table K - Loan Delinquency - Consolidated
(Unaudited)

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			days			or more			past due			Current			Loans HIP			loans			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			-			-			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			7
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

31-Dec-23
Popular, Inc.
		Past due																	Past due 90 days or more
	30-59			60-89			90 days			Total									Non-accrual			Accruing
(In thousands)	days			days			or more			past due			Current			Loans HIP			loans			loans
Commercial multi-family	$	9,665		$	2,001		$	1,991		$	13,657		$	2,401,963		$	2,415,620		$	1,991		$	-
Commercial real estate:
Non-owner occupied		6,076			1,113			9,862			17,051			5,070,370			5,087,421			9,862			-
Owner occupied		33,286			249			35,704			69,239			3,011,396			3,080,635			35,704			-
Commercial and industrial		14,813			4,049			40,091			58,953			7,067,168			7,126,121			36,598			3,493
Construction		-			-			6,378			6,378			952,902			959,280			6,378			-
Mortgage		309,715			122,103			427,719			859,537			6,836,380			7,695,917			186,297			241,422
Leasing		20,140			6,719			8,632			35,491			1,696,318			1,731,809			8,632			-
Consumer:
Credit cards		13,243			9,912			23,281			46,436			1,089,311			1,135,747			-			23,281
Home equity lines of credit		1,702			4			3,759			5,465			60,488			65,953			3,733			26
Personal		21,287			16,559			21,836			59,682			1,885,565			1,945,247			21,836			-
Auto		100,061			27,443			45,615			173,119			3,487,661			3,660,780			45,615			-
Other		1,645			204			1,214			3,063			157,378			160,441			965			249
Total	$	531,633		$	190,356		$	626,082		$	1,348,071		$	33,716,900		$	35,064,971		$	357,611		$	268,471

Variance
		Past due																	Past due 90 days or more
	30-59			60-89			90 days			Total									Non-accrual			Accruing
(In thousands)	days			days			or more			past due			Current			Loans HIP			loans			loans
Commercial multi-family	$	13,153		$	26		$	6,815		$	19,994		$	(50,979	)	$	(30,985	)	$	6,815		$	-
Commercial real estate:
Non-owner occupied		(2,958	)		3,529			467			1,038			(31,400	)		(30,362	)		467			-
Owner occupied		(20,551	)		19,192			(5,703	)		(7,062	)		44,271			37,209			(5,703	)		-
Commercial and industrial		(1,832	)		5,131			284			3,583			(104,221	)		(100,638	)		(1,004	)		1,288
Construction		8,825			-			(6,378	)		2,447			47,576			50,023			(6,378	)		-
Mortgage		(30,149	)		(14,346	)		(14,586	)		(59,081	)		146,826			87,745			8,247			(22,833	)
Leasing		(204	)		(1,967	)		(1,365	)		(3,536	)		37,140			33,604			(1,365	)		-
Consumer:
Credit cards		(209	)		(384	)		577			(16	)		6,422			6,406			-			577
Home equity lines of credit		(856	)		612			234			(10	)		774			764			253			(19	)
Personal		677			(2,695	)		(676	)		(2,694	)		(45,543	)		(48,237	)		(676	)		-
Auto		(17,104	)		(9,023	)		(3,808	)		(29,935	)		76,009			46,074			(3,808	)		-
Other		(623	)		(54	)		(274	)		(951	)		3,115			2,164			(332	)		58
Total	$	(51,831	)	$	21		$	(24,413	)	$	(76,223	)	$	129,990		$	53,767		$	(3,484	)	$	(20,929	)





Popular, Inc.
Financial Supplement to First Quarter 2024 Earnings Release
Table L - Non-Performing Assets
(Unaudited)
																Variance
(In thousands)	31-Mar-24			As a % of loans HIP by category		31-Dec-23			As a % of loans HIP by category		31-Mar-23			As a % of loans HIP by category		Q1 2024 vs. Q4 2023			Q1 2024 vs. Q1 2023
Non-accrual loans:
Commercial
Commercial multi-family	$	8,806		0.4	%	$	1,991		0.1	%	$	606		-	%	$	6,815		$	8,200
Commercial real estate non-owner occupied		10,329		0.2			9,862		0.2			23,063		0.5			467			(12,734	)
Commercial real estate owner occupied		30,001		1.0			35,704		1.2			42,874		1.4			(5,703	)		(12,873	)
Commercial and industrial		35,594		0.5			36,598		0.5			35,457		0.6			(1,004	)		137
Total Commercial		84,730		0.5			84,155		0.5			102,000		0.6			575			(17,270	)
Construction		-		-			6,378		0.7			-		-			(6,378	)		-
Leasing		7,267		0.4			8,632		0.5			6,103		0.4			(1,365	)		1,164
Mortgage		194,544		2.5			186,297		2.4			238,794		3.2			8,247			(44,250	)
Consumer
Home equity lines of credit		3,986		6.0			3,733		5.7			4,618		6.6			253			(632	)
Personal		21,160		1.1			21,836		1.1			19,917		1.1			(676	)		1,243
Auto		41,807		1.1			45,615		1.2			39,516		1.1			(3,808	)		2,291
Other Consumer		633		0.4			965		0.6			1,435		1.0			(332	)		(802	)
Total Consumer		67,586		1.0			72,149		1.0			65,486		1.0			(4,563	)		2,100
Total non-performing loans held-in-portfolio		354,127		1.0	%		357,611		1.0	%		412,383		1.3	%		(3,484	)		(58,256	)
Other real estate owned (“OREO”)		80,542					80,416					91,721					126			(11,179	)
Total non-performing assets [1]	$	434,669				$	438,027				$	504,104				$	(3,358	)	$	(69,435	)
Accruing loans past due 90 days or more [2]	$	247,542				$	268,471				$	305,883				$	(20,929	)	$	(58,341	)
Ratios:
Non-performing assets to total assets		0.61	%				0.62	%				0.74	%
Non-performing loans held-in-portfolio to loans held-in-portfolio		1.01					1.02					1.28
Allowance for credit losses to loans held-in-portfolio		2.11					2.08					2.13
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		208.84					203.95					167.11
[1] There were no non-performing loans held-for-sale as of March 31, 2024, December 31, 2023 and March 31, 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 March 31, 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 ( December 31, 2023 - $11 million; March 31, 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 $93 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2024 (December 31, 2023 - $106 million; March 31, 2023 - $167 million). Furthermore, the Corporation has approximately $37 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 (December 31, 2023- $38 million; March 31, 2023 - $40 million).





Popular, Inc.
Financial Supplement to First Quarter 2024 Earnings Release
Table M - Activity in Non-Performing Loans
(Unaudited)

Commercial loans held-in-portfolio:
	Quarter ended									Quarter ended
	31-Mar-24									31-Dec-23
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	72,992		$	11,163		$	84,155		$	72,227		$	8,594		$	80,821
Plus:
New non-performing loans		4,343			15,039			19,382			22,009			3,859			25,868
Advances on existing non-performing loans		-			20			20			-			515			515
Less:
Non-performing loans transferred to OREO		-			-			-			(5,484	)		-			(5,484	)
Non-performing loans charged-off		(7,999	)		(950	)		(8,949	)		(5,427	)		-			(5,427	)
Loans returned to accrual status / loan collections		(6,013	)		(3,865	)		(9,878	)		(10,333	)		(1,805	)		(12,138	)
Ending balance NPLs	$	63,323		$	21,407		$	84,730		$	72,992		$	11,163		$	84,155

Construction loans held-in-portfolio:
	Quarter ended									Quarter ended
	31-Mar-24									31-Dec-23
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	6,378		$	-		$	6,378		$	6,578		$	-		$	6,578
Less:
Loans returned to accrual status / loan collections		(6,378	)		-			(6,378	)		(200	)		-			(200	)
Ending balance NPLs	$	-		$	-		$	-		$	6,378		$	-		$	6,378

Mortgage loans held-in-portfolio:
	Quarter ended									Quarter ended
	31-Mar-24									31-Dec-23
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	175,106		$	11,191		$	186,297		$	187,443		$	11,980		$	199,423
Plus:
New non-performing loans		29,160			20,334			49,494			30,406			4,179			34,585
Advances on existing non-performing loans		-			2			2			-			11			11
Less:
Non-performing loans transferred to OREO		(4,109	)		-			(4,109	)		(5,423	)		-			(5,423	)
Non-performing loans charged-off		(310	)		-			(310	)		153			-			153
Loans returned to accrual status / loan collections		(33,374	)		(3,456	)		(36,830	)		(37,473	)		(4,979	)		(42,452	)
Ending balance NPLs	$	166,473		$	28,071		$	194,544		$	175,106		$	11,191		$	186,297



Total non-performing loans held-in-portfolio (excluding consumer):
	Quarter ended									Quarter ended
	31-Mar-24									31-Dec-23
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	254,476		$	22,354		$	276,830		$	266,248		$	20,574		$	286,822
Plus:
New non-performing loans		33,503			35,373			68,876			52,415			8,038			60,453
Advances on existing non-performing loans		-			22			22			-			526			526
Less:
Non-performing loans transferred to OREO		(4,109	)		-			(4,109	)		(10,907	)		-			(10,907	)
Non-performing loans charged-off		(8,309	)		(950	)		(9,259	)		(5,274	)		-			(5,274	)
Loans returned to accrual status / loan collections		(45,765	)		(7,321	)		(53,086	)		(48,006	)		(6,784	)		(54,790	)
Ending balance NPLs	$	229,796		$	49,478		$	279,274		$	254,476		$	22,354		$	276,830





Popular, Inc.
Financial Supplement to First Quarter 2024 Earnings Release
Table N - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)

	Quarters ended
(In thousands)	31-Mar-24			31-Dec-23			31-Mar-23
Balance at beginning of period - loans held-in-portfolio	$	729,341		$	711,068		$	720,302
Impact of adopting ASU-2022-02		-			-			(45,583	)
Provision for credit losses		72,386			75,218			47,146
Initial allowance for credit losses - PCD Loans		17			2			68
		801,744			786,288			721,933
Net loans charge-off (recovered)- BPPR
Commercial:
Commercial multi-family		(1	)		-			-
Commercial real estate non-owner occupied		(325	)		(426	)		(135	)
Commercial real estate owner occupied		2,247			2,770			(1,507	)
Commercial and industrial		5,109			1,535			442
Total Commercial		7,030			3,879			(1,200	)
Construction		-			(1	)		-
Leasing		3,685			3,677			327
Mortgage		(4,426	)		(2,720	)		(3,954	)
Consumer:
Credit cards		13,958			10,811			6,287
Home equity lines of credit		104			(64	)		(36	)
Personal		21,940			20,405			12,045
Auto		13,846			15,582			7,204
Other Consumer		424			344			10,791
Total Consumer		50,272			47,078			36,291
Total net charged-off BPPR	$	56,561		$	51,913		$	31,464

Net loans charge-off (recovered) - Popular U.S.
Commercial:
Commercial multi-family		440			(1	)		(2	)
Commercial real estate non-owner occupied		(64	)		128			(1,852	)
Commercial real estate owner occupied		(24	)		(22	)		(24	)
Commercial and industrial		408			(159	)		(469	)
Total Commercial		760			(54	)		(2,347	)
Mortgage		(25	)		(25	)		(14	)
Consumer:
Credit cards		-			-			1
Home equity lines of credit		(148	)		(214	)		(126	)
Personal		5,027			5,302			3,787
Other Consumer		25			25			48
Total Consumer		4,904			5,113			3,710
Total net charged-off Popular U.S.	$	5,639		$	5,034		$	1,349
Total loans charged-off - Popular, Inc.	$	62,200		$	56,947		$	32,813
Balance at end of period - loans held-in-portfolio	$	739,544		$	729,341		$	689,120

Balance at beginning of period - unfunded commitments	$	17,006		$	13,284		$	8,805
Provision for credit losses (benefit)		(239	)		3,722			610
Balance at end of period - unfunded commitments [1]	$	16,767		$	17,006		$	9,415

POPULAR, INC.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.71	%		0.66	%		0.41	%
Provision for credit losses - loan portfolios to net charge-offs		116.38	%		132.08	%		143.68	%
BPPR
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.92	%		0.86	%		0.56	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		107.86	%		129.51	%		143.67	%
Popular U.S.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.21	%		0.19	%		0.06	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		201.77	%		158.58	%		144.03	%
[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 First Quarter 2024 Earnings Release
Table O - Allowance for Credit Losses "ACL"- Loan Portfolios - Consolidated
(Unaudited)


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	%



31-Dec-23
(In thousands)	Total ACL			Total loans held-in-portfolio			ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$	13,740		$	2,415,620		0.57	%
Commercial real estate - non-owner occupied		65,453			5,087,421		1.29	%
Commercial real estate - owner occupied		56,864			3,080,635		1.85	%
Commercial and industrial		122,356			7,126,121		1.72	%
Total commercial	$	258,413		$	17,709,797		1.46	%
Construction		12,686			959,280		1.32	%
Mortgage		83,214			7,695,917		1.08	%
Leasing		9,708			1,731,809		0.56	%
Consumer:
Credit cards		80,487			1,135,747		7.09	%
Home equity lines of credit		1,978			65,953		3.00	%
Personal		117,790			1,945,247		6.06	%
Auto		157,931			3,660,780		4.31	%
Other consumer		7,134			160,441		4.45	%
Total consumer	$	365,320		$	6,968,168		5.24	%
Total	$	729,341		$	35,064,971		2.08	%



Variance
(In thousands)	Total ACL			Total loans held-in-portfolio			ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$	(997	)	$	(30,985	)	(0.04	)%
Commercial real estate - non-owner occupied		171			(30,362	)	0.01	%
Commercial real estate - owner occupied		6,943			37,209		0.20	%
Commercial and industrial		(1,938	)		(100,638	)	(0.01	)%
Total commercial	$	4,179		$	(124,776	)	0.03	%
Construction		(1,547	)		50,023		(0.22	)%
Mortgage		3,224			87,745		0.03	%
Leasing		(717	)		33,604		(0.05	)%
Consumer:
Credit cards		7,682			6,406		0.63	%
Home equity lines of credit		(106	)		764		(0.19	)%
Personal		(1,713	)		(48,237	)	0.06	%
Auto		(475	)		46,074		(0.06	)%
Other consumer		(324	)		2,164		(0.26	)%
Total consumer	$	5,064		$	7,171		0.07	%
Total	$	10,203		$	53,767		0.03	%





Popular, Inc.
Financial Supplement to First Quarter 2024 Earnings Release
Table P - Allowance for Credit Losses "ACL"- Loan Portfolios - BPPR Operations
(Unaudited)

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	%


31-Dec-23
BPPR
(In thousands)	Total ACL			Total loans held-in-portfolio			ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$	3,614		$	291,942		1.24	%
Commercial real estate - non-owner occupied		53,754			3,005,254		1.79	%
Commercial real estate - owner occupied		40,637			1,398,383		2.91	%
Commercial and industrial		107,577			4,796,226		2.24	%
Total commercial	$	205,582		$	9,491,805		2.17	%
Construction		5,294			169,857		3.12	%
Mortgage		72,440			6,391,824		1.13	%
Leasing		9,708			1,731,809		0.56	%
Consumer:
Credit cards		80,487			1,135,728		7.09	%
Home equity lines of credit		103			2,648		3.89	%
Personal		101,181			1,776,310		5.70	%
Auto		157,931			3,660,780		4.31	%
Other consumer		7,132			150,162		4.75	%
Total consumer	$	346,834		$	6,725,628		5.16	%
Total	$	639,858		$	24,510,923		2.61	%


Variance
(In thousands)	Total ACL			Total loans held-in-portfolio			ACL to loans held-in-portfolio
Commercial:
Commercial multi-family		(47	)		11,709		(0.07	)%
Commercial real estate - non-owner occupied		(88	)		(8,769	)	-	%
Commercial real estate - owner occupied		2,900			27,709		0.14	%
Commercial and industrial		(4,733	)		(51,103	)	(0.07	)%
Total commercial	$	(1,968	)	$	(20,454	)	(0.02	)%
Construction		(2,180	)		(7,133	)	(1.21	)%
Mortgage		4,124			91,727		0.05	%
Leasing		(717	)		33,604		(0.05	)%
Consumer:
Credit cards		7,682			6,408		0.63	%
Home equity lines of credit		(1	)		(79	)	0.08	%
Personal		(1,677	)		(29,817	)	-	%
Auto		(475	)		46,074		(0.06	)%
Other consumer		(324	)		3,516		(0.32	)%
Total consumer	$	5,205		$	26,102		0.05	%
Total	$	4,464		$	123,846		0.01	%





Popular, Inc.
Financial Supplement to First Quarter 2024 Earnings Release
Table Q - Allowance for Credit Losses "ACL"- Loan Portfolios - POPULAR U.S. Operations
(Unaudited)

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		-			17		-	%
Home equity lines of credit		1,770			64,148		2.76	%
Personal		16,573			150,517		11.01	%
Other consumer		2			8,927		0.02	%
Total consumer	$	18,345		$	223,609		8.20	%
Total	$	95,222		$	10,483,969		0.91	%

31-Dec-23
Popular U.S.
(In thousands)	Total ACL			Total loans held-in-portfolio			ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$	10,126		$	2,123,678		0.48	%
Commercial real estate - non-owner occupied		11,699			2,082,167		0.56	%
Commercial real estate - owner occupied		16,227			1,682,252		0.96	%
Commercial and industrial		14,779			2,329,895		0.63	%
Total commercial	$	52,831		$	8,217,992		0.64	%
Construction		7,392			789,423		0.94	%
Mortgage		10,774			1,304,093		0.83	%
Consumer:
Credit cards		-			19		-	%
Home equity lines of credit		1,875			63,305		2.96	%
Personal		16,609			168,937		9.83	%
Other consumer		2			10,279		0.02	%
Total consumer	$	18,486		$	242,540		7.62	%
Total	$	89,483		$	10,554,048		0.85	%


Variance
(In thousands)	Total ACL			Total loans held-in-portfolio			ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$	(950	)	$	(42,694	)	(0.04	)%
Commercial real estate - non-owner occupied		259			(21,593	)	0.02	%
Commercial real estate - owner occupied		4,043			9,500		0.24	%
Commercial and industrial		2,795			(49,535	)	0.14	%
Total commercial	$	6,147		$	(104,322	)	0.09	%
Construction		633			57,156		0.01	%
Mortgage		(900	)		(3,982	)	(0.07	)%
Consumer:
Credit cards		-			(2	)	-	%
Home equity lines of credit		(105	)		843		(0.20	)%
Personal		(36	)		(18,420	)	1.18	%
Other consumer		-			(1,352	)	-	%
Total consumer	$	(141	)	$	(18,931	)	0.58	%
Total	$	5,739		$	(70,079	)	0.06	%





Popular, Inc.
Financial Supplement to First Quarter 2024 Earnings Release
Table R - Reconciliation to GAAP Financial Measures
(Unaudited)

(In thousands, except share or per share information)	31-Mar-24			31-Dec-23			31-Mar-23
Total stockholders’ equity	$	5,177,314		$	5,146,953		$	4,470,725
Less: Preferred stock		(22,143	)		(22,143	)		(22,143	)
Less: Goodwill		(804,428	)		(804,428	)		(827,428	)
Less: Other intangibles		(8,969	)		(9,764	)		(12,149	)
Total tangible common equity	$	4,341,774		$	4,310,618		$	3,609,005
Total assets	$	70,936,939		$	70,758,155		$	67,675,759
Less: Goodwill		(804,428	)		(804,428	)		(827,428	)
Less: Other intangibles		(8,969	)		(9,764	)		(12,149	)
Total tangible assets	$	70,123,542		$	69,943,963		$	66,836,182
Tangible common equity to tangible assets		6.19	%		6.16	%		5.40	%
Common shares outstanding at end of period		72,284,875			72,153,621			71,965,984
Tangible book value per common share	$	60.06		$	59.74		$	50.15

	Quarterly average
Total stockholders’ equity [1]	$	6,198,740		$	6,072,871		$	5,641,308
Average unrealized (gains) losses on AFS securities transferred to HTM		639,226			683,077			811,581
Adjusted total stockholder's equity		6,837,966			6,755,948			6,452,889
Less: Preferred Stock		(22,143	)		(22,143	)		(22,143	)
Less: Goodwill		(804,427	)		(804,427	)		(827,427	)
Less: Other intangibles		(9,490	)		(10,286	)		(12,678	)
Total tangible equity	$	6,001,906		$	5,919,092		$	5,590,641
Return on average tangible common equity		6.90	%		6.32	%		11.51	%
[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/20240423005285/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

Source: Popular, Inc.

FAQ

What was Popular, Inc.'s net income for Q1 2024?

Popular, Inc. reported a net income of $103.3 million for the quarter ended March 31, 2024.

What was the adjusted net income for Q1 2024?

Adjusted net income was $135.2 million for Q1 2024.

How much did net interest income amount to in Q1 2024?

Net interest income amounted to $550.7 million in Q1 2024.

What was the Common Equity Tier 1 ratio at the end of March 2024?

The Common Equity Tier 1 ratio was 16.36% at March 31, 2024.

What expenses impacted Popular, Inc.'s financial results in Q1 2024?

Expenses related to the FDIC Special Assessment and tax impact on intercompany distributions impacted Popular, Inc.'s financial results.

Popular, Inc. Announces First Quarter 2024 Financial Results

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