Popular, Inc. Announces Fourth Quarter 2022 Financial Results

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Popular, Inc. (NASDAQ:BPOP) reported a net income of $257.1 million for Q4 2022, down from $422.4 million in Q3 2022, impacted by a $68.2 million tax benefit. For 2022, net income reached $1.1 billion, a rise from $934.9 million in 2021. The net interest margin was 3.28% for Q4 2022, down from 3.32% in Q3 2022. Non-performing loans decreased by $14.0 million and the allowance for credit losses to loans was 2.25%. The company launched a multi-year transformation initiative with expected expenses of $50 million in 2023. It also returned $631 million to shareholders through repurchases and increased its dividend to $0.55 per share.

Positive

Record annual earnings of $1.1 billion in 2022, up from $934.9 million in 2021.
Successful completion of significant strategic initiatives, including the Evertec acquisition.
Strong credit quality metrics with a decrease in non-performing loans by $14 million.
Increased common stock dividend to $0.55 per share and returned $631 million to shareholders.

Negative

Q4 2022 net income decreased to $257.1 million from $422.4 million in Q3 2022.
Net interest margin decreased to 3.28% from 3.32% in the previous quarter.
Net charge-offs increased to $31.2 million in Q4 2022 compared to $18.2 million in Q3 2022.

01/25/2023 - 07:30 AM

Net income of $257.1 million in Q4 2022, compared to net income of $422.4 million in Q3 2022; the results of Q4 2022 included a tax benefit of $68.2 million related to the partial release of the deferred tax valuation allowance in the U.S., while the Q3 2022 results included the benefit of the Evertec Transactions (as defined below) and related accounting adjustments of $226.6 million.
Net income of $1.1 billion for the year 2022, compared to net income of $934.9 million for the year 2021.
Net interest margin of 3.28% in Q4 2022, compared to 3.32% in Q3 2022; net interest margin on a taxable equivalent basis of 3.64% in Q4 2022, compared to 3.71% in Q3 2022.
Credit Quality:
- Non-performing loans held-in-portfolio (“NPLs”) decreased by $14.0 million from Q3 2022; NPLs to loans ratio remained flat at 1.4%;
- Net charge-offs (“NCOs”) increased by $13 million from Q3 2022; annualized NCOs at 0.39% of average loans held-in-portfolio vs. 0.24% in Q3 2022;
- Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.25% vs. 2.23% in Q3 2022; and
- ACL to NPLs at 163.9% vs. 155.1% in Q3 2022.
Common Equity Tier 1 ratio of 16.39%, Common Equity per Share of $56.66 and Tangible Book Value per Share of $44.97 at December 31, 2022.

SAN JUAN, Puerto Rico--(BUSINESS WIRE)-- Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $257.1 million for the quarter ended December 31, 2022, compared to net income of $422.4 million for the quarter ended September 30, 2022. Excluding the effects of the partial release of $68.2 million of the deferred tax asset valuation allowance, the net income for the fourth quarter was $188.9 million. The net income for the third quarter was $195.8 million after excluding the impact of the completed Evertec Transactions (as defined below) and related accounting adjustments.

Ignacio Alvarez, President and Chief Executive Officer, said: “We ended 2022 with a solid performance in the fourth quarter helping us achieve record earnings of $1.1 billion for the year. During the quarter, we continued to see broad-based loan growth and strong credit quality metrics, although our net interest income was impacted by higher deposit costs, primarily related to our portfolio of P.R. public deposits.

Our record annual earnings are the product of focusing on long-term customer relationships and sustainable growth strategies. In addition to outstanding earnings, during 2022, we also completed important strategic initiatives such as the acquisition of key customer-facing channels from Evertec and launched a broad-based multi-year, technological and business process transformation across the entire Company. We also returned $631 million to our shareholders through common stock share repurchases and increased our quarterly common stock dividend to $0.55 per share.

During 2023, we will continue to leverage the benefits of the Evertec transaction and will focus on growing and deepening our strong commercial and retail franchise in P.R. as we continue to look for appropriate opportunities in the U.S. market.

While we are aware of the macroeconomic headwinds related to inflation and geopolitical risks, we are confident that given the amount of stimulative support from federal funds, P.R. will continue its growth path, albeit perhaps at a slower pace.

2023 marks our 130th anniversary. During this time, we adapted and transformed ourselves on multiple occasions to address many political, economic and competitive changes that have occurred. We are committed to continuing that transformation by investing in the future of our organization, our people and the communities we serve to meet future challenges and continue to provide value to our shareholders.”

Significant Events

Transformation Initiative:

Popular has launched a significant, multi-year corporate transformation initiative designed to expand its digital capabilities, modernize its technology platform, and implement agile and efficient business processes across the Corporation.

Since completing the Evertec Transactions on July 1, 2022, through December 31, 2022, excluding compensation costs of our employees involved in the initiative, we expensed $24 million toward this effort, primarily in professional fees and technology related expenses. In 2023, we plan an expense of approximately $50 million toward this effort, excluding employee compensation and capitalized costs. We expect the expenses tied to this transformation initiative, which will continue through 2025 to result in an enhanced digital experience for our clients, as well as better technology and more efficient processes for our employees. We expect this effort to contribute to better efficiency and higher earnings, resulting in a targeted sustainable return on tangible common equity of 14% by the end of 2025.

To facilitate the transparency of our progress with these efforts, we have now separated technology, professional fees and transactional activities as standalone expense categories in the statement of operations.

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

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

The securities were reclassified at fair value at the time of the transfer. At the date of the transfer, these securities had pre-tax unrealized losses of $873.0 million recorded in AOCI. This fair value discount is being accreted to interest income and the unrealized loss remaining in AOCI is being amortized, offsetting each other through the remaining life of the securities. There were no realized gains or losses recorded as a result of this transfer.

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

Capital Actions

On December 7, 2022 the Corporation completed the settlement of its previously announced accelerated share repurchase agreement (“ASR Agreement”) for the repurchase of an aggregate $231 million of Popular’s common stock, for which an initial 2,339,241 shares (the “Initial Shares”) were delivered on August 26, 2022. The transaction was accounted for as a treasury stock transaction. As a result of the receipt of the Initial Shares, the Corporation recognized in shareholders’ equity approximately $185 million in treasury stock and $46 million as a reduction of capital surplus. Upon the final settlement of the ASR Agreement, the Corporation received an additional 840,024 shares of common stock and recognized approximately $60 million as treasury stock with a corresponding increase in its capital surplus account. The Corporation repurchased a total of 3,179,265 shares at an average purchase price of $72.66 under the ASR Agreement.

Partial Release of the Deferred tax Asset Valuation Allowance

During the fourth quarter of 2022, the Corporation recorded a partial reversal of the deferred tax asset valuation allowance of the U.S. operations of $68.2 million. As of December 31, 2022 the deferred tax asset ("DTA") for the U.S. operations, mainly related to net operating losses (“NOLs”), was valued at $278 million, net of the corresponding valuation allowance of $423 million. The additional reversal during the fourth quarter was determined based on management’s expectation of the realization of additional amounts of federal and states NOLs over their remining carryover period. The determination was based on the U.S. operations’ sustained profitability during the years ended December 31, 2021 and 2022, together with evidence of stable credit metrics and the length of the expiration of the net operating losses. As of December 31, 2022, the Corporation had approximately $525 million in DTA related to federal NOLs with expiration dates between 2028 and 2033 and approximately $155 million in DTA related to state NOLs with expiration dates between 2031 and 2036.

Earnings Highlights
(Unaudited)	Quarters ended					Years ended
(Dollars in thousands, except per share information)	31-Dec-22		30-Sep-22	31-Dec-21		31-Dec-22	31-Dec-21
Net interest income	$559,566		$579,619	$501,283		$2,167,359	$1,957,590
Provision for credit losses (benefit)	49,531		39,637	(33,050	)	83,030	(193,464	)
Net interest income after provision for credit losses (benefit)	510,035		539,982	534,333		2,084,329	2,151,054
Other non-interest income	158,465		426,494	164,677		897,062	642,128
Operating expenses	461,708		476,095	417,394		1,746,420	1,549,275
Income before income tax	206,792		490,381	281,616		1,234,971	1,243,907
Income tax (benefit) expense	(50,347	)	67,986	75,552		132,330	309,018
Net income	$257,139		$422,395	$206,064		$1,102,641	$934,889
Net income applicable to common stock	$256,786		$422,042	$205,711		$1,101,229	$933,477
Net income per common share-basic	$3.56		$5.71	$2.59		$14.65	$11.49
Net income per common share-diluted	$3.56		$5.70	$2.58		$14.63	$11.46

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

Net interest income, on a taxable equivalent basis, is presented with its different components in Table D and E for the quarter and year ended December 31, 2022 and comparable periods. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.

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

Net interest income for the quarter ended December 31, 2022 was $559.6 million, compared to $579.6 million in the previous quarter, a decrease of $20.0 million. Net interest income on a taxable equivalent basis for the fourth quarter of 2022 was $621.5 million compared to $646.6 million in the previous quarter, a decrease of $25.1 million.

Net interest margin for the quarter was 3.28% compared to 3.32% in the previous quarter. On a taxable equivalent basis, net interest margin for the fourth quarter of 2022 was 3.64%, compared to 3.71% in the prior quarter. The decrease in net interest margin is mainly related to a higher interest expense on deposits, partially offset by higher volume of loans and change to the earning asset mix, with increases in loan balances and reductions to lower yielding money markets, investments and trading securities. The main variances in net interest income on a taxable equivalent basis were:

higher interest expense on deposits by $78.4 million due to the increase in rates, mainly from Puerto Rico government deposits.

partially offset by:

higher interest income from money market deposits by $13.9 million, resulting from higher yield of the portfolio by 166 basis points driven mainly by the full quarter’s effect of increases in the interest on excess funds at the Federal Reserve at the end of July and September, fully impacting the fourth quarter, and further increases at the beginning of November and mid-December, partially offset by lower volume by $1.5 billion mainly related to a decrease in deposits and a higher loan volume; and
quarter-over-quarter, the Corporation’s loan portfolio’s average balance increased by $980 million reflecting increases in the U.S. and P.R. and across all major loan segments except construction loans. Loan origination in a higher interest rate environment and the repricing of adjustable-rate loans resulted in a higher yield on loans by 31 basis points. The categories with the highest impact were commercial loans with an increase of $29.5 million in interest income or 49 basis points and consumer loans that increased $8.1 million or 52 basis points

Net interest income for the Banco Popular de Puerto Rico (“BPPR”) segment amounted to $472.4 million for the fourth quarter of 2022, compared to $488.1 million in the third quarter of 2022. Net interest margin remained flat at 3.26% compared to 3.27% in the third quarter of 2022. The decrease in net interest income of $15.7 million was mostly driven by a higher cost of deposits, partially offset by the improvement in the yield on earning assets and the change to the asset mix. The yield on earning assets increased 45 basis points driven by the repricing of money market investments and adjustable-rate loans and a higher volume of average loans by $671 million. Earning assets decreased by $1.6 billion mainly driven by the decrease of P.R. public sector and commercial interest-bearing deposits. The cost of interest-bearing deposits increased 67 basis points to 1.13% from 0.46% the previous quarter. The increase in the cost of deposits was mainly impacted by the repricing of public funds and corporate clients. Total deposit cost for the quarter increased by 49 basis points from 0.34% to 0.83%.

Net interest income for Popular Bank (“PB”) was $94.2 million for the quarter ended December 31, 2022, compared to $98.9 million during the previous quarter, a decrease of $4.7 million. Net interest margin decreased 29 basis points in the quarter to 3.55% compared to 3.84% in the third quarter of the year. The decrease in net interest margin was mostly driven by a higher cost of deposits, partially offset by higher volume of loans and the repricing, of adjustable-rate loans driven by the changes in interest rates. The cost of interest-bearing deposits was 1.71% compared to 0.85%, or an increase of 86 basis points while total deposit cost was 1.34% compared to 0.67% in the previous quarter.

Non-interest income

Non-interest income amounted to $158.5 million for the fourth quarter of 2022, a decrease of $268.0 million compared to $426.5 million in the previous quarter. The results for the third quarter of 2022 included $257.7 million from the gain on the sale of the Corporation’s shares from Evertec, Inc. (“Evertec”), including those sold in connection BPPR’s acquisition of certain assets from Evertec Group, LLC, a wholly owned subsidiary of Evertec, to service certain BPPR channels (the “Evertec Business Acquisition”), the subsequent the sale of BPPR’s remaining 7,065,634 shares of common stock of Evertec, Inc. (together with the Evertec Business Acquisition, the “Evertec Transactions”) and related accounting adjustments. Other factors that contributed to the variance in non-interest income were:

Lower service charges on deposit accounts by $5.3 million due to lower overdraft related charges and lower cash management service charges from commercial clients due to higher earnings credits on transactional accounts;
lower mortgage banking activities by $2.9 million due to a negative variance in the valuation of mortgage servicing rights by $2.1 million and a negative variance of $1.0 million in gains from loans securitization activity, net of valuation adjustments on loans held-for-sale;
an unfavorable variance in the adjustments for indemnity reserves on loans previously sold of $1.9 million;
a favorable adjustment recorded in the third quarter of $9.2 million in the fair value of the contingent consideration related to purchase price adjustments for the Popular Equipment Finance (“PEF”) acquisition of the K2 Capital Group LLC business in 2021 (‘’K2 Acquisition’’), after the Corporation updated its estimates related to the realizability of the earnings targets for the contingent payment; and
lower earnings from the portfolio of equity method investments by $2.2 million, excluding Evertec;

partially offset by:

a gain of $8.2 million from the sale of an investment which had been previously written off;
higher other service fees by $2.6 million mainly due to higher credit and debit card fees related to interchange income and seasonal activity, partially offset by lower insurance fees, including contingent payments of approximately $500,000 received during the third quarter; and
a favorable variance of $1.8 million on the fair value adjustments to the portfolio of equity securities related to deferred benefit plans, which have an offsetting effect recorded as higher personnel costs;

Refer to Table B for further details.

Operating expenses

Operating expenses for the fourth quarter of 2022 totaled $461.7 million, a decrease of $14.4 million when compared to the third quarter of 2022. The variance in operating expenses was driven primarily by:

lower personnel costs by $3.7 million mainly due to a decrease in health insurance costs by $4.7 million, lower profit-sharing accrual and lower commissions, incentives and other bonuses by $2.6 million partially offset by higher salaries and other personnel costs by $3.6 million;
lower credit and debit card processing and transactional expenses by $3.3 million mainly due to transaction volume rebates and incentives recognized during the quarter;
higher other real estate owned (OREO) benefit by $6.7 million mainly due to higher gain on sale of mortgage and commercial properties and higher expense claim reimbursement from federal government agency programs;
lower other operating expenses by $12.0 million, mainly due to the effect of a previous quarter expense related to the Evertec Transactions of $17.3 million, partially offset by $2.0 million of higher sundry loss reserves and
a goodwill impairment charge of $9.0 million recorded during the previous quarter due to a decrease in PEF’s projected earnings considered as part of the Corporation’s annual goodwill impairment analysis.

partially offset by:

higher equipment expenses by $1.1 million due to higher maintenance and repair costs of equipment;
higher professional fees by $1.5 million mainly due to higher advisory expense related to corporate initiatives;
higher technology and software expenses by $9.9 million mainly due to various ongoing technology projects;
higher other processing and transactional services by $3.7 million mainly due to higher incentives received during the prior quarter related to the ATH Network Participation Agreement entered into in connection with the Evertec Business Acquisition; and
higher business promotion expenses by $3.8 million mainly due to seasonal projects and sponsorships during the quarter.

Full-time equivalent employees were 8,813 as of December 31, 2022 compared to 8,747 as of September 30, 2022.

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

Income Taxes

For the quarter ended December 31, 2022, the Corporation recorded an income tax benefit of $50.3 million compared to an income tax expense of $68.0 million for the previous quarter. The favorable variance in income tax expense was mainly attributable to a partial reversal of the deferred tax asset valuation allowance of the U.S. operation during the fourth quarter of $68.2 million and lower income before tax, higher benefit from tax-exempt income, including true-up adjustment of $9.5 million in relation to the fiscal year 2021 tax returns for the P.R. subsidiaries filed in the fourth quarter and related year-to-date adjustments for the same concept. The effective tax rate (“ETR”) for the fourth quarter was of (24)%. Excluding the impact of the partial release of the valuation allowance and true up adjustment, the ETR for the fourth quarter was of 12%, compared to 14% 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 2023 to be within a range from 18% to 22%.

Credit Quality

During the fourth quarter of 2022, the Corporation continued to reflect stable credit quality trends with low levels of NCOs and decreasing NPLs. We continue to closely monitor changes in the macroeconomic environment and on borrower performance, given inflationary pressures and geopolitical uncertainty. However, management believes that the improvement over recent years in the risk profile of the Corporation’s loan portfolios positions Popular to operate successfully under the current environment.

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

At December 31, 2022, total non-performing loans held-in-portfolio decreased by $14.0 million from September 30, 2022. BPPR’s NPLs decreased by $8.2 million, mostly driven by lower mortgage and commercial NPLs by $10.4 million and $5.3 million, respectively, in part offset by higher auto loans NPLs by $6.5 million. PB’s NPLs decreased by $5.8 million quarter-over-quarter, mostly due to a $8.7 million charge-off on a previously reserved commercial borrower in the healthcare industry that was placed in non-accrual status the previous quarter. At December 31, 2022, the ratio of NPLs to total loans held-in-portfolio remained flat at 1.4%, compared to the third quarter of 2022.
Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $2.7 million quarter-over-quarter. In BPPR, total inflows increased by $5.0 million, mostly driven by higher mortgage inflows of $5.1 million. Mortgage inflows continued trending lower than pre-pandemic levels. NPL inflows at PB decreased by $7.6 million quarter-over-quarter, mainly driven by the abovementioned commercial healthcare loan placed in non-accrual in the previous quarter.
NCOs amounted to $31.2 million, an increase of $13.0 million when compared to the third quarter of 2022. BPPR’s NCOs remained stable, increasing by $1.5 million quarter-over-quarter, mainly driven by higher consumer NCOs by $5.5 million, mostly due to higher auto NCOs, in part offset by lower mortgage NCOs by $4.0 million. PB’s NCOs increased by $11.5 million quarter-over-quarter, mainly due to the charge-off on the abovementioned healthcare loan. During the fourth quarter of 2022, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.39%, compared to 0.24% in the third quarter of 2022. Refer to Table M for further information on net charge-offs and related ratios.
At December 31, 2022, the ACL increased by $17.2 million, or 2.5%, from the third quarter of 2022 to $720.3 million. The ACL incorporated updated macroeconomic scenarios for Puerto Rico and the United States. Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The baseline scenario continues to be assigned the highest probability, followed by the pessimistic scenario.
The baseline scenario assumes a 2023 annualized GDP growth for Puerto Rico and the United States of 1.3% and 0.7%, respectively, compared to 2.2% and 1.5% in the previous quarter. For 2022, annualized expected growth was 2.6% and 1.8% for Puerto Rico and United States, respectively. The reduction in 2023 is due to the expected slowdown in the economy as a result of tight monetary policy, weaker job growth and persistent inflation.
The 2023 average unemployment rate remained largely consistent quarter-over-quarter forecasted at 7.8% and 4.0% for Puerto Rico and United States, respectively, compared to 7.8% and 3.9% respectively, in the previous forecast. In 2023, weaker job growth due to the expected slowdown in the economy will contribute to the increase in unemployment rate from 2022 average levels of 6.4% for Puerto Rico and 3.7% for the United States.
In BPPR, the ACL increased by $24.6 million, mostly driven by changes in the economic scenario, higher loan volumes and changes in credit quality. The ACL for the PB segment decreased by $7.4 million quarter-over-quarter, mainly driven by an $8.7 million charge-off on the previously mentioned commercial healthcare NPL. The Corporation’s ratio of the allowance for credit losses to loans held-in-portfolio was 2.25% in the fourth quarter of 2022, compared to 2.23% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 163.9%, compared to 155.1% in the previous quarter.
The provision for credit losses for the loan portfolios for the fourth quarter of 2022 was an expense of $48.3 million, compared to an expense of $39.5 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was an expense of $44.4 million, compared to an expense of $28.7 million in the previous quarter, while the provision for the PB segment was an expense of $3.9 million, compared to an expense of $10.8 million in the previous quarter.
The provision for unfunded commitments for the third quarter of 2022 was an expense of $1.5 million, compared to an expense of $0.4 million in the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $0.3 million, flat quarter-over-quarter. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations.

Non-Performing Assets
(Unaudited)
(In thousands)	31-Dec-22		30-Sep-22		31-Dec-21
Non-performing loans held-in-portfolio	$439,441		$453,419		$547,877
Other real estate owned (“OREO”)	89,126		93,239		85,077
Total non-performing assets	$528,567		$546,658		$632,954
Net charge-offs (recoveries) for the quarter	$31,200		$18,232		$(7,881	)


Ratios:
Loans held-in-portfolio	$32,077,769		$31,523,188		$29,240,557
Non-performing loans held-in-portfolio to loans held-in-portfolio	1.37	%	1.44	%	1.87	%
Allowance for credit losses to loans held-in-portfolio	2.25		2.23		2.38
Allowance for credit losses to non-performing loans, excluding loans held-for-sale	163.91		155.07		126.92
Refer to Table K for additional information.



Provision for Credit Losses (Benefit) - Loan Portfolios

(Unaudited)	Quarters ended				Years ended
(In thousands)	31-Dec-22	30-Sep-22	31-Dec-21		31-Dec-22	31-Dec-21
Provision for credit losses (benefit) - loan portfolios:
BPPR	$44,383	$28,694	$(30,562	)	$69,544	$(129,018	)
Popular U.S.	3,949	10,825	(859	)	13,763	(54,327	)
Total provision for credit losses (benefit) - loan portfolios	$48,332	$39,519	$(31,421	)	$83,307	$(183,345	)

Credit Quality by Segment
(Unaudited)
(In thousands)	Quarters ended
BPPR	31-Dec-22		30-Sep-22		31-Dec-21
Provision for credit losses (benefit) - loan portfolios	$44,383		$28,694		$(30,562	)
Net charge-offs (recoveries)	19,846		18,396		(7,615	)
Total non-performing loans held-in-portfolio	402,009		410,215		514,289
Allowance / loans held-in-portfolio	2.73	%	2.65	%	2.85	%
Allowance / non-performing loans held-in-portfolio	153.12	%	144.05	%	115.53	%

	Quarters ended
Popular U.S.	31-Dec-22		30-Sep-22		31-Dec-21
Provision for credit losses (benefit) - loan portfolios	$3,949		$10,825		$(859	)
Net charge-offs (recoveries)	11,354		(164	)	(266	)
Total non-performing loans held-in-portfolio	37,432		43,204		33,588
Allowance / loans held-in-portfolio	1.10	%	1.21	%	1.21	%
Allowance / non-performing loans held-in-portfolio	279.86	%	259.61	%	301.31	%

Financial Condition Highlights

(Unaudited)
(In thousands)	31-Dec-22	30-Sep-22	31-Dec-21
Cash and money market investments	$6,084,096	$5,992,360	$17,965,152
Investment securities	26,553,317	30,434,052	25,267,418
Loans	32,077,769	31,523,188	29,240,557
Total assets	67,637,917	70,729,675	75,097,899
Deposits	61,227,227	64,819,327	67,005,088
Borrowings	1,400,319	1,300,984	1,155,166
Total liabilities	63,544,492	67,054,837	69,128,502
Stockholders’ equity	4,093,425	3,674,838	5,969,397

Total assets amounted to $67.6 billion at December 31, 2022, a decrease of $3.1 billion from the third quarter of 2022, driven by:

A decrease in debt securities of $3.9 billion due to maturities and paydowns, partially offset by purchases and a favorable variance of $193.4 million in net unrealized losses in the portfolio of available-for-sale securities.

partially offset by:

an increase in loans held-in-portfolio of $0.6 billion across all loan categories, except construction loans. The increase was mainly due to commercial loan growth at both BPPR and PB and an increase in mortgage and consumer loans at BPPR, mainly in personal loans and credit cards.

Total liabilities decreased by $3.5 billion from the third quarter of 2022, driven by:

a decrease of $3.6 billion in deposits, mainly in Puerto Rico public sector deposits by $2.2 billion, and non-public deposits by $1.4 billion mainly from commercial interest-bearing accounts in Puerto Rico;

partially offset by:

an increase in borrowings of $115.0 million, mainly due to advances from the FHLB at PB.

Stockholders' equity increased by $418.6 million from the third quarter of 2022, principally due to net income for the quarter of $257.1 million and a favorable variance of $193.4 million in net unrealized losses in the portfolio of available-for-sale securities, partially offset by dividends declared for the quarter.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.39%, $56.66 and $44.97, respectively, at December 31, 2022, compared to 16.04%, $50.26 and $38.69 at September 30, 2022. Refer to Table A for capital ratios.

Refer to Table C for the Statements of Financial Condition.

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, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings, new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic (including the appearance of new strains of the virus), actions taken by governmental authorities in response thereto, and the direct and indirect impact of the pandemic on Popular, our customers, service providers and third parties. Other factors include Popular’s ability to successfully 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. The Corporation’s ability to successfully transition and integrate the assets acquired as part of the Evertec Business Acquisition, related operations, employees and third party contractors; unexpected costs, including, without limitation, costs due to exposure to any unrecorded liabilities or issues not identified during due diligence investigation of the Evertec Business Acquisition or that are not subject to indemnification or reimbursement by Evertec; operational risks that may affect Popular and other risks arising from the acquisition of the acquired assets or by adverse effects on relationships with customers, employees and service providers and business and other risks arising from the extension of Popular’s current commercial agreements with Evertec may also cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. 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, 2021, in our Form 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022, and in our Form 10-K for the year ended December 31, 2022 to be filed with the Securities and Exchange Commission. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.

About Popular, Inc.

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

Conference Call

Popular will hold a conference call to discuss its financial results today Wednesday, January 25, 2023 at 10:00 a.m. Eastern Time. The call will be broadcast live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 1-844-200-6205 (Toll Free) or 1-646-904-5544 (Local). The dial-in access code is 922986.

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, February 24, 2023. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 431712.

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

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

Table A - Selected Ratios and Other Information

Table B - Consolidated Statement of Operations

Table C - Consolidated Statement of Financial Condition

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

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

Table F - Mortgage Banking Activities and Other Service Fees

Table G - Loans and Deposits

Table H - Loan Delinquency - BPPR OPERATIONS

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

Table J - Loan Delinquency - CONSOLIDATED

Table K - Non-Performing Assets

Table L - Activity in Non-Performing Loans

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

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

Table O - Allowance for Credit Losses - Loan Portfolios - BPPR OPERATIONS

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

Table Q - Reconciliation to GAAP Financial Measures

POPULAR, INC.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)

	Quarters ended						Years ended
	31-Dec-22		30-Sep-22		31-Dec-21		31-Dec-22		31-Dec-21
Basic EPS	$3.56		$5.71		$2.59		$14.65		$11.49
Diluted EPS	$3.56		$5.70		$2.58		$14.63		$11.46
Average common shares outstanding	72,101,177		73,955,184		79,477,823		75,147,263		81,263,027
Average common shares outstanding - assuming dilution	72,192,680		74,057,332		79,652,836		75,274,003		81,420,154
Common shares outstanding at end of period	71,853,720		72,673,344		79,851,169		71,853,720		79,851,169
Market value per common share	$66.32		$72.06		$82.04		$66.32		$82.04
Market capitalization - (In millions)	$4,765		$5,237		$6,551		$4,765		$6,551
Return on average assets	1.46	%	2.31	%	1.09	%	1.52	%	1.31	%
Return on average common equity	16.59	%	27.72	%	13.74	%	18.39	%	16.22	%
Net interest margin (non-taxable equivalent basis)	3.28	%	3.32	%	2.78	%	3.11	%	2.88	%
Net interest margin (taxable equivalent basis) -non-GAAP	3.64	%	3.71	%	3.02	%	3.46	%	3.19	%
Common equity per share	$56.66		$50.26		$74.48		$56.66		$74.48
Tangible common book value per common share (non-GAAP) [1]	$44.97		$38.69		$65.26		$44.97		$65.26
Tangible common equity to tangible assets (non-GAAP) [1]	4.84	%	4.02	%	7.01	%	4.84	%	7.01	%
Return on average tangible common equity [1]	19.23	%	31.86	%	15.66	%	21.13	%	18.47	%
Tier 1 capital	16.45	%	16.10	%	17.49	%	16.45	%	17.49	%
Total capital	18.26	%	17.92	%	19.35	%	18.26	%	19.35	%
Tier 1 leverage	8.15	%	7.65	%	7.41	%	8.15	%	7.41	%
Common Equity Tier 1 capital	16.39	%	16.04	%	17.42	%	16.39	%	17.42	%
[1] Refer to Table Q for reconciliation to GAAP financial measures.

POPULAR, INC.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
		Quarters ended				Variance		Quarter ended		Variance		Years ended
						Q4 2022				Q4 2022
(In thousands, except per share information)		31-Dec-22		30-Sep-22		vs. Q3 2022		31-Dec-21		vs. Q4 2021		31-Dec-22		31-Dec-21
Interest income:
	Loans	$522,042		$481,088		$40,954		$444,101		$77,941		$1,876,166		$1,747,827
	Money market investments	50,908		36,966		13,942		6,847		44,061		118,080		21,147
	Investment securities	140,244		133,181		7,063		88,315		51,929		471,665		353,663
	Total interest income	713,194		651,235		61,959		539,263		173,931		2,465,911		2,122,637
Interest expense:
	Deposits	139,338		60,897		78,441		26,331		113,007		252,845		111,621
	Short-term borrowings	4,488		921		3,567		60		4,428		5,737		319
	Long-term debt	9,802		9,798		4		11,589		(1,787	)	39,970		53,107
	Total interest expense	153,628		71,616		82,012		37,980		115,648		298,552		165,047
Net interest income		559,566		579,619		(20,053	)	501,283		58,283		2,167,359		1,957,590
Provision for credit losses (benefit)		49,531		39,637		9,894		(33,050	)	82,581		83,030		(193,464	)
Net interest income after provision for credit losses (benefit)		510,035		539,982		(29,947	)	534,333		(24,298	)	2,084,329		2,151,054
Service charges on deposit accounts		34,682		40,006		(5,324	)	41,613		(6,931	)	157,210		162,698
Other service fees		89,022		86,402		2,620		83,793		5,229		334,009		311,248
Mortgage banking activities		6,562		9,448		(2,886	)	17,035		(10,473	)	42,450		50,133
Net gain on sale of debt securities		-		-		-		-		-		-		23
Net gain (loss), including impairment, on equity securities		317		(1,448	)	1,765		(1,454	)	1,771		(7,334	)	131
Net gain (loss) on trading account debt securities		162		(274	)	436		(355	)	517		(784	)	(389	)
Net loss on sale of loans, including valuation adjustments on loans held-for-sale		-		-		-		-		-		-		(73	)
Adjustments to indemnity reserves on loans sold		(221	)	1,715		(1,936	)	1,398		(1,619	)	919		4,406
Other operating income		27,941		290,645		(262,704	)	22,647		5,294		370,592		113,951
	Total non-interest income	158,465		426,494		(268,029	)	164,677		(6,212	)	897,062		642,128
Operating expenses:
Personnel costs
	Salaries	116,503		115,887		616		96,830		19,673		432,910		371,644
	Commissions, incentives and other bonuses	39,570		42,209		(2,639	)	34,853		4,717		155,889		142,212
	Pension, postretirement and medical insurance	12,452		17,120		(4,668	)	13,971		(1,519	)	56,085		52,077
	Other personnel costs, including payroll taxes	21,612		18,627		2,985		14,818		6,794		74,880		65,869
	Total personnel costs	190,137		193,843		(3,706	)	160,472		29,665		719,764		631,802
Net occupancy expenses		27,812		27,420		392		26,755		1,057		106,169		102,226
Equipment expenses		9,828		8,735		1,093		9,656		172		35,626		32,919
Other taxes		16,142		15,966		176		15,160		982		63,603		56,783
Professional fees		49,159		47,662		1,497		32,607		16,552		172,043		126,721
Technology and software expenses		78,264		68,341		9,923		70,916		7,348		291,902		277,979
Processing and transactional services
	Credit and debit cards	10,278		13,531		(3,253	)	7,578		2,700		45,455		40,383
	Other processing and transactional services	22,509		18,837		3,672		21,370		1,139		81,690		80,984
	Total processing and transactional services	32,787		32,368		419		28,948		3,839		127,145		121,367
Communications		3,857		3,858		(1	)	3,559		298		14,885		14,029
Business promotion
	Rewards and customer loyal programs	13,538		14,344		(806	)	11,752		1,786		51,832		38,919
	Other business promotion	14,596		10,004		4,592		14,081		515		37,086		34,062
	Total business promotion	28,134		24,348		3,786		25,833		2,301		88,918		72,981
FDIC deposit insurance		6,342		6,610		(268	)	6,688		(346	)	26,787		25,579
Other real estate owned (OREO) income		(9,180	)	(2,444	)	(6,736	)	(3,860	)	(5,320	)	(22,143	)	(14,414	)
Other operating expenses
	Operational losses	9,018		7,145		1,873		16,820		(7,802	)	32,049		38,391
	All other	18,614		32,448		(13,834	)	17,795		819		77,397		53,778
	Total other operating expenses	27,632		39,593		(11,961	)	34,615		(6,983	)	109,446		92,169
Amortization of intangibles		794		795		(1	)	6,045		(5,251	)	3,275		9,134
Goodwill impairment charge		-		9,000		(9,000	)	-		-		9,000		-
	Total operating expenses	461,708		476,095		(14,387	)	417,394		44,314		1,746,420		1,549,275
Income before income tax		206,792		490,381		(283,589	)	281,616		(74,824	)	1,234,971		1,243,907
Income tax (benefit) expense		(50,347	)	67,986		(118,333	)	75,552		(125,899	)	132,330		309,018
Net income		$257,139		$422,395		$(165,256	)	$206,064		$51,075		$1,102,641		$934,889
Net income applicable to common stock		$256,786		$422,042		$(165,256	)	$205,711		$51,075		$1,101,229		$933,477
Net income per common share - basic		$3.56		$5.71		$(2.15	)	$2.59		$0.97		$14.65		$11.49
Net income per common share - diluted		$3.56		$5.70		$(2.14	)	$2.58		$0.98		$14.63		$11.46
Dividends Declared per Common Share		$0.55		$0.55		$-		$0.45		$0.10		$2.20		$1.75

Popular, Inc.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
									Variance
									Q4 2022 vs.
(In thousands)			31-Dec-22		30-Sep-22		31-Dec-21		Q3 2022
Assets:
Cash and due from banks			$469,501		$2,017,312		$428,433		$(1,547,811	)
Money market investments			5,614,595		3,975,048		17,536,719		1,639,547
Trading account debt securities, at fair value			27,723		30,271		29,711		(2,548	)
Debt securities available-for-sale, at fair value			17,804,374		28,264,148		24,968,269		(10,459,774	)
Debt securities held-to-maturity, at amortized cost			8,525,366		1,953,710		79,461		6,571,656
		Less: Allowance for credit losses	6,911		7,210		8,096		(299	)
		Total debt securities held-to-maturity, net	8,518,455		1,946,500		71,365		6,571,955
Equity securities			195,854		185,923		189,977		9,931
Loans held-for-sale, at lower of cost or fair value			5,381		8,065		59,168		(2,684	)
Loans held-in-portfolio			32,372,925		31,805,921		29,506,225		567,004
		Less: Unearned income	295,156		282,733		265,668		12,423
		Allowance for credit losses	720,302		703,096		695,366		17,206
		Total loans held-in-portfolio, net	31,357,467		30,820,092		28,545,191		537,375
Premises and equipment, net			498,711		492,685		494,240		6,026
Other real estate			89,126		93,239		85,077		(4,113	)
Accrued income receivable			240,195		224,307		203,096		15,888
Mortgage servicing rights, at fair value			128,350		130,541		121,570		(2,191	)
Other assets			1,847,813		1,700,378		1,628,571		147,435
Goodwill			827,428		827,428		720,293		-
Other intangible assets			12,944		13,738		16,219		(794	)
Total assets			$67,637,917		$70,729,675		$75,097,899		$(3,091,758	)
Liabilities and Stockholders’ Equity:
Liabilities:
	Deposits:
		Non-interest bearing	$15,960,557		$17,605,339		$15,684,482		$(1,644,782	)
		Interest bearing	45,266,670		47,213,988		51,320,606		(1,947,318	)
		Total deposits	61,227,227		64,819,327		67,005,088		(3,592,100	)
Assets sold under agreements to repurchase			148,609		162,450		91,603		(13,841	)
Other short-term borrowings			365,000		250,000		75,000		115,000
Notes payable			886,710		888,534		988,563		(1,824	)
Other liabilities			916,946		934,526		968,248		(17,580	)
Total liabilities			63,544,492		67,054,837		69,128,502		(3,510,345	)
Stockholders’ equity:
Preferred stock			22,143		22,143		22,143		-
Common stock			1,047		1,046		1,046		1
Surplus			4,790,993		4,652,508		4,650,182		138,485
Retained earnings			3,834,348		3,694,020		2,973,745		140,328
Treasury stock			(2,030,178	)	(1,970,548	)	(1,352,650	)	(59,630	)
Accumulated other comprehensive loss, net of tax			(2,524,928	)	(2,724,331	)	(325,069	)	199,403
		Total stockholders’ equity	4,093,425		3,674,838		5,969,397		418,587
Total liabilities and stockholders’ equity			$67,637,917		$70,729,675		$75,097,899		$(3,091,758	)

Popular, Inc.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER
(Unaudited)

			Quarters ended															Variance
			31-Dec-22					30-Sep-22					31-Dec-21					Q4 2022 vs. Q3 2022							Q4 2022 vs. Q4 2021
($ amounts in millions)			Average balance		Income / Expense	Yield / Rate		Average balance		Income / Expense	Yield / Rate		Average balance		Income / Expense	Yield / Rate		Average balance		Income / Expense		Yield / Rate			Average balance		Income / Expense		Yield / Rate
Assets:
Interest earning assets:
		Money market investments	5,262		50.9	3.84	%	6,721		37.0	2.18	%	17,885		6.9	0.15	%	(1,459	)	13.9		1.66		%	(12,623	)	44.0		3.69		%
		Investment securities	30,843		189.2	2.44	%	31,859		186.8	2.33	%	24,797		118.4	1.90	%	(1,016	)	2.4		0.11		%	6,046		70.8		0.54		%
		Trading securities	30		0.3	4.28	%	40		0.6	6.09	%	82		1.1	5.43	%	(10	)	(0.3	)	(1.81	)	%	(52	)	(0.8	)	(1.15	)	%
	Total money market, investment and trading securities		$36,135		$240.4	2.65	%	$38,620		$224.4	2.31	%	$42,764		$126.4	1.18	%	($2,485	)	$16.0		0.34		%	($6,629	)	$114.0		1.47		%
	Loans:
		Commercial	15,503		234.7	6.01		14,750		205.2	5.52		13,395		188.6	5.59		753		29.5		0.49			2,108		46.1		0.42
		Construction	769		14.6	7.54		835		13.4	6.38		777		10.7	5.46		(66	)	1.2		1.16			(8	)	3.9		2.08
		Mortgage	7,346		98.9	5.38		7,264		98.4	5.42		7,504		96.4	5.14		82		0.5		(0.04	)		(158	)	2.5		0.24
		Consumer	2,961		91.5	12.26		2,818		83.4	11.74		2,471		68.1	10.93		143		8.1		0.52			490		23.4		1.33
		Auto	3,576		71.9	7.98		3,562		71.2	7.93		3,432		71.3	8.24		14		0.7		0.05			144		0.6		(0.26	)
		Lease financing	1,557		23.1	5.92		1,503		22.2	5.90		1,359		20.3	5.97		54		0.9		0.02			198		2.8		(0.05	)
	Total loans		31,712		534.7	6.70		30,732		493.8	6.39		28,938		455.4	6.26		980		40.9		0.31			2,774		79.3		0.44
	Total interest earning assets		$67,847		$775.1	4.54	%	$69,352		$718.2	4.12	%	$71,702		$581.8	3.23	%	$(1,505	)	$56.9		0.42		%	$(3,855	)	$193.3		1.31		%
		Allowance for credit losses - loan portfolio	(711	)				(691	)				(719	)				(20	)						8
		Allowance for credit losses - investment securities	(7	)				(7	)				(9	)				-							2
		Other non-interest earning assets	2,921					3,822					3,844					(901	)						(923	)
	Total average assets		$70,050					$72,476					$74,818					$(2,426	)						$(4,768	)
Liabilities and Stockholders' Equity:
	Interest bearing deposits:
		NOW and money market	$24,399		$106.5	1.73	%	$25,993		$36.4	0.56	%	$28,205		$7.7	0.11	%	$(1,594	)	$70.1		1.17		%	$(3,806	)	$98.8		1.62		%
		Savings	15,248		11.0	0.29		15,514		8.0	0.20		16,324		6.8	0.17		(266	)	3.0		0.09			(1,076	)	4.2		0.12
		Time deposits	6,675		21.8	1.29		6,957		16.5	0.94		6,793		11.8	0.69		(282	)	5.3		0.35			(118	)	10.0		0.60
		Total interest-bearing deposits	46,322		139.3	1.19		48,464		60.9	0.50		51,322		26.3	0.20		(2,142	)	78.4		0.69			(5,000	)	113.0		0.99
	Borrowings		1,363		14.3	4.18		1,068		10.7	4.01		1,163		11.6	4.01		295		3.6		0.17			200		2.7		0.17
		Total interest-bearing liabilities	47,685		153.6	1.28		49,532		71.6	0.57		52,485		37.9	0.29		(1,847	)	82.0		0.71			(4,800	)	115.7		0.99
		Net interest spread				3.26	%				3.55	%				2.94	%					(0.29	)	%					0.32		%
	Non-interest bearing deposits		16,110					15,872					15,455					238							655
	Other liabilities		930					1,010					917					(80	)						13
	Stockholders' equity		5,325					6,062					5,961					(737	)						(636	)
		Total average liabilities and stockholders' equity	$70,050					$72,476					$74,818					$(2,426	)						$(4,768	)
Net interest income / margin on a taxable equivalent basis (Non-GAAP)					$621.5	3.64	%			$646.6	3.71	%			$543.9	3.02	%			($25.1	)	(0.07	)	%			$77.6		0.62		%
Taxable equivalent adjustment					61.9					67.0					42.6					(5.1	)						19.3

Net interest income / margin non-taxable equivalent basis (GAAP)					$559.6	3.28	%			$579.6	3.32	%			$501.3	2.78	%			($20.0	)	(0.04	)	%			$58.3		0.50		%

Popular, Inc.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE
(Unaudited)
			Years ended
			31-Dec-22					31-Dec-21					Variance
			Average		Income /	Yield /		Average		Income /	Yield /		Average		Income /		Yield /
($ amounts in millions)			balance		Expense	Rate		balance		Expense	Rate		balance		Expense		Rate
Assets:
Interest earning assets:
		Money market investments	9,531		118.1	1.24	%	16,000		21.2	0.13	%	(6,469	)	96.9		1.11		%
		Investment securities	29,743		664.3	2.23	%	22,931		508.1	2.22	%	6,812		156.2		0.01		%
		Trading securities	51		3.0	5.94	%	84		4.3	5.16	%	(33	)	(1.3	)	0.78		%
	Total money market, investment and trading securities		$39,325		$785.4	2.00	%	$39,015		$533.6	1.37	%	$310		$251.8		0.63		%
	Loans:
		Commercial	14,562		795.1	5.46		13,455		723.8	5.39		1,107		71.3		0.07
		Construction	778		48.9	6.29		849		45.8	5.41		(71	)	3.1		0.88
		Mortgage	7,323		391.1	5.34		7,696		392.0	5.09		(373	)	(0.9	)	0.25
		Consumer	2,743		320.0	11.67		2,463		275.1	11.17		280		44.9		0.50
		Auto	3,525		282.5	8.02		3,322		280.7	8.47		203		1.8		(0.45	)
		Lease financing	1,475		87.3	5.92		1,289		77.4	6.00		186		9.9		(0.08	)
	Total loans		30,406		1,924.9	6.33		29,074		1,794.8	6.19		1,332		130.1		0.14
	Total interest earning assets		$69,731		$2,710.3	3.89	%	$68,089		$2,328.4	3.43	%	$1,642		$381.9		0.46		%
		Allowance for credit losses - loan portfolio	(695	)				(796	)				101
		Allowance for credit losses - investment securities	(8	)				(10	)				2
		Other non-interest earning assets	3,570					3,886					(316	)
	Total average assets		$72,598					$71,169					$1,429
Liabilities and Stockholders' Equity:
	Interest bearing deposits:
		NOW and money market	$25,884		$158.6	0.61	%	$25,959		$31.9	0.12	%	(75	)	$126.7		0.49		%
		Savings	15,886		32.4	0.20		15,429		27.1	0.18		457		5.3		0.02
		Time deposits	6,853		61.8	0.90		7,028		52.6	0.75		(175	)	9.2		0.15
		Total interest-bearing deposits	48,623		252.8	0.52		48,416		111.6	0.23		207		141.2		0.29
	Borrowings		1,145		45.7	3.99		1,276		53.4	4.19		(131	)	(7.7	)	(0.20	)
		Total interest-bearing liabilities	49,768		298.5	0.60		49,692		165.0	0.33		76		133.5		0.27
		Net interest spread				3.29	%				3.10	%					0.19		%
	Non-interest bearing deposits		16,094					14,687					1,407
	Other liabilities		938					1,012					(74	)
	Stockholders' equity		5,798					5,778					20
		Total average liabilities and stockholders' equity	$72,598					$71,169					$1,429
Net interest income / margin on a taxable equivalent basis (Non-GAAP)					$2,411.8	3.46	%			$2,163.4	3.19	%			$248.4		0.27		%
Taxable equivalent adjustment					244.4					205.8					38.6

Net interest income / margin non-taxable equivalent basis (GAAP)					$2,167.4	3.11	%			$1,957.6	2.88	%			$209.8		0.23		%

Popular, Inc.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table F - Mortgage Banking Activities and Other Service Fees
(Unaudited)

Mortgage Banking Activities
		Quarters ended						Variance				Years ended				Variance
(In thousands)		31-Dec-22		30-Sep-22		31-Dec-21		Q4 2022 vs Q3 2022		Q4 2022 vs Q4 2021		31-Dec-22		31-Dec-21		2022 vs. 2021
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$8,852		$9,126		$9,492		$(274	)	$(640	)	$36,487		$38,105		$(1,618	)
	Mortgage servicing rights fair value adjustments	(2,610	)	(499	)	1,500		(2,111	)	(4,110	)	236		(10,206	)	10,442
Total mortgage servicing fees, net of fair value adjustments		6,242		8,627		10,992		(2,385	)	(4,750	)	36,723		27,899		8,824
Net gain (loss) on sale of loans, including valuation on loans held-for-sale		123		1,124		5,428		(1,001	)	(5,305	)	(251	)	21,684		(21,935	)
Trading account profit (loss):
	Realized gains (losses) on closed derivative positions	310		(240	)	691		550		(381	)	6,635		1,323		5,312
Total trading account profit (loss)		310		(240	)	691		550		(381	)	6,635		1,323		5,312
Losses on repurchased loans, including interest advances		(113	)	(63	)	(76	)	(50	)	(37	)	(657	)	(773	)	116
Total mortgage banking activities		$6,562		$9,448		$17,035		$(2,886	)	$(10,473	)	$42,450		$50,133		$(7,683	)


Other Service Fees
		Quarters ended			Variance				Years ended		Variance
(In thousands)		31-Dec-22	30-Sep-22	31-Dec-21	Q4 2022 vs Q3 2022		Q4 2022 vs.Q4 2021		31-Dec-22	31-Dec-21	2022 vs. 2021
Other service fees:
	Debit card fees	$13,379	$12,133	$12,392	$1,246		$987		$50,173	$48,637	$1,536
	Insurance fees	14,587	15,697	17,848	(1,110	)	(3,261	)	56,457	57,834	(1,377	)
	Credit card fees	39,777	37,829	35,649	1,948		4,128		149,403	130,475	18,928
	Sale and administration of investment products	5,793	5,952	5,908	(159	)	(115	)	23,553	23,634	(81	)
	Trust fees	5,223	5,506	5,858	(283	)	(635	)	22,799	24,318	(1,519	)
	Other fees	10,263	9,285	6,138	978		4,125		31,624	26,350	5,274
Total other service fees		$89,022	$86,402	$83,793	$2,620		$5,229		$334,009	$311,248	$22,761

Popular, Inc.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table G - Loans and Deposits
(Unaudited)

Loans - Ending Balances
				Variance
(In thousands)	31-Dec-22	30-Sep-22	31-Dec-21	Q4 2022 vs.Q3 2022		Q4 2022 vs.Q4 2021
Loans held-in-portfolio:
Commercial	$15,739,132	$15,366,859	$13,732,701	$372,273		$2,006,431
Construction	757,984	816,290	716,220	(58,306	)	41,764
Leasing	1,585,739	1,538,504	1,381,319	47,235		204,420
Mortgage	7,397,471	7,311,713	7,427,196	85,758		(29,725	)
Auto	3,512,530	3,528,904	3,412,187	(16,374	)	100,343
Consumer	3,084,913	2,960,918	2,570,934	123,995		513,979
Total loans held-in-portfolio	$32,077,769	$31,523,188	$29,240,557	$554,581		$2,837,212
Loans held-for-sale:
Mortgage	$5,381	$8,065	$59,168	$(2,684	)	$(53,787	)
Total loans held-for-sale	$5,381	$8,065	$59,168	$(2,684	)	$(53,787	)
Total loans	$32,083,150	$31,531,253	$29,299,725	$551,897		$2,783,425


Deposits - Ending Balances
				Variance
(In thousands)	31-Dec-22	30-Sep-22	31-Dec-21	Q4 2022 vs. Q3 2022		Q4 2022 vs.Q4 2021
Demand deposits [1]	$26,382,605	$28,773,328	$25,889,732	$(2,390,723	)	$492,873
Savings, NOW and money market deposits (non-brokered)	27,265,156	28,388,057	33,674,134	(1,122,901	)	(6,408,978	)
Savings, NOW and money market deposits (brokered)	798,064	728,651	729,073	69,413		68,991
Time deposits (non-brokered)	6,442,886	6,731,588	6,685,938	(288,702	)	(243,052	)
Time deposits (brokered CDs)	338,516	197,703	26,211	140,813		312,305
Total deposits	$61,227,227	$64,819,327	$67,005,088	$(3,592,100	)	$(5,777,861	)
[1] Includes interest and non-interest bearing demand deposits.

Popular, Inc.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table H - Loan Delinquency - BPPR Operations
(Unaudited)
31-Dec-22
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		$	425	$	-	$	242	$	667	$	280,706	$	281,373	$	242	$	-
Commercial real estate:
	Non-owner occupied		941		428		23,662		25,031		2,732,296		2,757,327		23,662		-
	Owner occupied		729		245		23,990		24,964		1,563,092		1,588,056		23,990		-
Commercial and industrial			3,036		941		35,777		39,754		3,756,754		3,796,508		34,277		1,500
Construction			-		-		-		-		147,041		147,041		-		-
Mortgage			222,926		91,881		579,993		894,800		5,215,479		6,110,279		242,391		337,602
Leasing			11,983		3,563		5,941		21,487		1,564,252		1,585,739		5,941		-
Consumer:
	Credit cards		7,106		5,049		11,910		24,065		1,017,766		1,041,831		-		11,910
	Home equity lines of credit		-		-		-		-		2,954		2,954		-		-
	Personal		13,232		8,752		18,082		40,066		1,545,621		1,585,687		18,082		-
	Auto		68,868		19,243		40,978		129,089		3,383,441		3,512,530		40,978		-
	Other		487		87		12,682		13,256		124,324		137,580		12,446		236
Total		$	329,733	$	130,189	$	753,257	$	1,213,179	$	21,333,726	$	22,546,905	$	402,009	$	351,248

30-Sep-22
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		$	546	$	-	$	251	$	797	$	276,521	$	277,318	$	251	$	-
Commercial real estate:
	Non-owner occupied		3,005		789		21,443		25,237		2,820,803		2,846,040		21,443		-
	Owner occupied		10,992		7,834		28,379		47,205		1,540,932		1,588,137		28,379		-
Commercial and industrial			7,105		1,139		38,003		46,247		3,547,841		3,594,088		37,375		628
Construction			-		1,087		-		1,087		210,480		211,567		-		-
Mortgage			237,316		89,802		581,378		908,496		5,147,347		6,055,843		252,773		328,605
Leasing			14,487		2,740		5,697		22,924		1,515,580		1,538,504		5,697		-
Consumer:
	Credit cards		7,268		4,481		10,361		22,110		966,406		988,516		-		10,361
	Home equity lines of credit		-		-		-		-		2,957		2,957		-		-
	Personal		13,725		7,348		18,137		39,210		1,478,746		1,517,956		18,117		20
	Auto		71,230		21,852		34,432		127,514		3,401,390		3,528,904		34,432		-
	Other		708		768		12,025		13,501		124,950		138,451		11,748		277
Total		$	366,382	$	137,840	$	750,106	$	1,254,328	$	21,033,953	$	22,288,281	$	410,215	$	339,891


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		$	(121	)	$	-		$	(9	)	$	(130	)	$	4,185		$	4,055		$	(9	)	$	-
Commercial real estate:
	Non-owner occupied		(2,064	)		(361	)		2,219			(206	)		(88,507	)		(88,713	)		2,219			-
	Owner occupied		(10,263	)		(7,589	)		(4,389	)		(22,241	)		22,160			(81	)		(4,389	)		-
Commercial and industrial			(4,069	)		(198	)		(2,226	)		(6,493	)		208,913			202,420			(3,098	)		872
Construction			-			(1,087	)		-			(1,087	)		(63,439	)		(64,526	)		-			-
Mortgage			(14,390	)		2,079			(1,385	)		(13,696	)		68,132			54,436			(10,382	)		8,997
Leasing			(2,504	)		823			244			(1,437	)		48,672			47,235			244			-
Consumer:
	Credit cards		(162	)		568			1,549			1,955			51,360			53,315			-			1,549
	Home equity lines of credit		-			-			-			-			(3	)		(3	)		-			-
	Personal		(493	)		1,404			(55	)		856			66,875			67,731			(35	)		(20	)
	Auto		(2,362	)		(2,609	)		6,546			1,575			(17,949	)		(16,374	)		6,546			-
	Other		(221	)		(681	)		657			(245	)		(626	)		(871	)		698			(41	)
Total		$	(36,649	)	$	(7,651	)	$	3,151		$	(41,149	)	$	299,773		$	258,624		$	(8,206	)	$	11,357

Popular, Inc.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table I - Loan Delinquency - Popular U.S. Operations
(Unaudited)
31-Dec-22
Popular U.S.
			Past due																	Past due 90 days or more
		30-59			60-89			90 days			Total									Non-accrual				Accruing
(In thousands)		days			days			or more			past due			Current			Loans HIP			loans			loans
Commercial multi-family		$	2,177		$	-		$	-		$	2,177		$	2,038,163		$	2,040,340		$	-		$	-
Commercial real estate:
	Non-owner occupied		484			-			1,454			1,938			1,740,405			1,742,343			1,454			-
	Owner occupied		-			-			5,095			5,095			1,485,398			1,490,493			5,095			-
Commercial and industrial			12,960			2,205			4,685			19,850			2,022,842			2,042,692			4,319			366
Construction			-			-			-			-			610,943			610,943			-			-
Mortgage			16,131			5,834			20,488			42,453			1,244,739			1,287,192			20,488			-
Consumer:
	Credit cards		-			-			-			-			39			39			-			-
	Home equity lines of credit		413			161			4,110			4,684			64,278			68,962			4,110			-
	Personal		1,808			1,467			1,958			5,233			232,659			237,892			1,958			-
	Other		-			-			8			8			9,960			9,968			8			-
Total		$	33,973		$	9,667		$	37,798		$	81,438		$	9,449,426		$	9,530,864		$	37,432		$	366

30-Sep-22
Popular U.S.
			Past due																	Past due 90 days or more
		30-59			60-89			90 days			Total									Non-accrual				Accruing
(In thousands)		days			days			or more			past due			Current			Loans HIP			loans			loans
Commercial multi-family		$	-		$	-		$	-		$	-		$	1,926,791		$	1,926,791		$	-		$	-
Commercial real estate:
	Non-owner occupied		-			136			10,631			10,767			1,660,668			1,671,435			10,631			-
	Owner occupied		-			5,106			606			5,712			1,472,699			1,478,411			606			-
Commercial and industrial			924			2,144			5,803			8,871			1,975,768			1,984,639			5,191			612
Construction			-			-			-			-			604,723			604,723			-			-
Mortgage			1,501			4,558			21,533			27,592			1,228,278			1,255,870			21,533			-
Consumer:
	Credit cards		-			-			-			-			34			34			-			-
	Home equity lines of credit		256			577			3,970			4,803			65,036			69,839			3,970			-
	Personal		1,495			1,529			1,261			4,285			233,780			238,065			1,261			-
	Other		704			-			12			716			4,384			5,100			12			-
Total		$	4,880		$	14,050		$	43,816		$	62,746		$	9,172,161		$	9,234,907		$	43,204		$	612



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		$	2,177		$	-		$	-		$	2,177		$	111,372		$	113,549		$	-		$	-
Commercial real estate:
	Non-owner occupied		484			(136	)		(9,177	)		(8,829	)		79,737			70,908			(9,177	)		-
	Owner occupied		-			(5,106	)		4,489			(617	)		12,699			12,082			4,489			-
Commercial and industrial			12,036			61			(1,118	)		10,979			47,074			58,053			(872	)		(246	)
Construction			-			-			-			-			6,220			6,220			-			-
Mortgage			14,630			1,276			(1,045	)		14,861			16,461			31,322			(1,045	)		-
Consumer:
	Credit cards		-			-			-			-			5			5			-			-
	Home equity lines of credit		157			(416	)		140			(119	)		(758	)		(877	)		140			-
	Personal		313			(62	)		697			948			(1,121	)		(173	)		697			-
	Other		(704	)		-			(4	)		(708	)		5,576			4,868			(4	)		-
Total		$	29,093		$	(4,383	)	$	(6,018	)	$	18,692		$	277,265		$	295,957		$	(5,772	)	$	(246	)

Popular, Inc.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table J - Loan Delinquency - Consolidated
(Unaudited)

31-Dec-22
Popular, Inc.
			Past due											Past due 90 days or more
		30-59		60-89		90 days		Total						Non-accrual			Accruing
(In thousands)		days		days		or more		past due		Current		Loans HIP		loans		loans
Commercial multi-family		$	2,602	$	-	$	242	$	2,844	$	2,318,869	$	2,321,713	$	242	$	-
Commercial real estate:
	Non-owner occupied		1,425		428		25,116		26,969		4,472,701		4,499,670		25,116		-
	Owner occupied		729		245		29,085		30,059		3,048,490		3,078,549		29,085		-
Commercial and industrial			15,996		3,146		40,462		59,604		5,779,596		5,839,200		38,596		1,866
Construction			-		-		-		-		757,984		757,984		-		-
Mortgage			239,057		97,715		600,481		937,253		6,460,218		7,397,471		262,879		337,602
Leasing			11,983		3,563		5,941		21,487		1,564,252		1,585,739		5,941		-
Consumer:
	Credit cards		7,106		5,049		11,910		24,065		1,017,805		1,041,870		-		11,910
	Home equity lines of credit		413		161		4,110		4,684		67,232		71,916		4,110		-
	Personal		15,040		10,219		20,040		45,299		1,778,280		1,823,579		20,040		-
	Auto		68,868		19,243		40,978		129,089		3,383,441		3,512,530		40,978		-
	Other		487		87		12,690		13,264		134,284		147,548		12,454		236
Total		$	363,706	$	139,856	$	791,055	$	1,294,617	$	30,783,152	$	32,077,769	$	439,441	$	351,614

30-Sep-22
Popular, Inc.
			Past due											Past due 90 days or more
		30-59		60-89		90 days		Total						Non-accrual			Accruing
(In thousands)		days		days		or more		past due		Current		Loans HIP		loans		loans
Commercial multi-family		$	546	$	-	$	251	$	797	$	2,203,312	$	2,204,109	$	251	$	-
Commercial real estate:
	Non-owner occupied		3,005		925		32,074		36,004		4,481,471		4,517,475		32,074		-
	Owner occupied		10,992		12,940		28,985		52,917		3,013,631		3,066,548		28,985		-
Commercial and industrial			8,029		3,283		43,806		55,118		5,523,609		5,578,727		42,566		1,240
Construction			-		1,087		-		1,087		815,203		816,290		-		-
Mortgage			238,817		94,360		602,911		936,088		6,375,625		7,311,713		274,306		328,605
Leasing			14,487		2,740		5,697		22,924		1,515,580		1,538,504		5,697		-
Consumer:
	Credit cards		7,268		4,481		10,361		22,110		966,440		988,550		-		10,361
	Home equity lines of credit		256		577		3,970		4,803		67,993		72,796		3,970		-
	Personal		15,220		8,877		19,398		43,495		1,712,526		1,756,021		19,378		20
	Auto		71,230		21,852		34,432		127,514		3,401,390		3,528,904		34,432		-
	Other		1,412		768		12,037		14,217		129,334		143,551		11,760		277
Total		$	371,262	$	151,890	$	793,922	$	1,317,074	$	30,206,114	$	31,523,188	$	453,419	$	340,503

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		$	2,056		$	-		$	(9	)	$	2,047		$	115,557		$	117,604		$	(9	)	$	-
Commercial real estate:
	Non-owner occupied		(1,580	)		(497	)		(6,958	)		(9,035	)		(8,770	)		(17,805	)		(6,958	)		-
	Owner occupied		(10,263	)		(12,695	)		100			(22,858	)		34,859			12,001			100			-
Commercial and industrial			7,967			(137	)		(3,344	)		4,486			255,987			260,473			(3,970	)		626
Construction			-			(1,087	)		-			(1,087	)		(57,219	)		(58,306	)		-			-
Mortgage			240			3,355			(2,430	)		1,165			84,593			85,758			(11,427	)		8,997
Leasing			(2,504	)		823			244			(1,437	)		48,672			47,235			244			-
Consumer:
	Credit cards		(162	)		568			1,549			1,955			51,365			53,320			-			1,549
	Home equity lines of credit		157			(416	)		140			(119	)		(761	)		(880	)		140			-
	Personal		(180	)		1,342			642			1,804			65,754			67,558			662			(20	)
	Auto		(2,362	)		(2,609	)		6,546			1,575			(17,949	)		(16,374	)		6,546			-
	Other		(925	)		(681	)		653			(953	)		4,950			3,997			694			(41	)
Total		$	(7,556	)	$	(12,034	)	$	(2,867	)	$	(22,457	)	$	577,038		$	554,581		$	(13,978	)	$	11,111

Popular, Inc.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table K - Non-Performing Assets
(Unaudited)
										Variance
(Dollars in thousands)	31-Dec-22	As a % of loans HIP by category		30-Sep-22	As a % of loans HIP by category		31-Dec-21	As a % of loans HIP by category		Q4 2022 vs. Q3 2022		Q4 2022 vs. Q4 2021
Non-accrual loans:
Commercial	$93,039	0.6	%	$103,876	0.7	%	$125,579	0.9	%	$(10,837	)	$(32,540	)
Construction	-	-		-	-		485	0.1		-		(485	)
Leasing	5,941	0.4		5,697	0.4		3,102	0.2		244		2,839
Mortgage	262,879	3.6		274,306	3.8		355,856	4.8		(11,427	)	(92,977	)
Auto	40,978	1.2		34,432	1.0		23,085	0.7		6,546		17,893
Consumer	36,604	1.2		35,108	1.2		39,770	1.5		1,496		(3,166	)
Total non-performing loans held-in-portfolio	439,441	1.4	%	453,419	1.4	%	547,877	1.9	%	(13,978	)	(108,436	)
Other real estate owned (“OREO”)	89,126			93,239			85,077			(4,113	)	4,049
Total non-performing assets [1]	$528,567			$546,658			$632,954			$(18,091	)	$(104,387	)
Accruing loans past due 90 days or more [2]	$351,614			$340,503			$480,767			$11,111		$(129,153	)
Ratios:
Non-performing assets to total assets	0.78	%		0.77	%		0.84	%
Non-performing loans held-in-portfolio to loans held-in-portfolio	1.37			1.44			1.87
Allowance for credit losses to loans held-in-portfolio	2.25			2.23			2.38
Allowance for credit losses to non-performing loans, excluding loans held-for-sale	163.91			155.07			126.92
[1] There were no non-performing loans held-for-sale as of December 31, 2022, September 30, 2022 and December 31, 2021.
[2] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. The balance of these loans includes $14 million at December 31, 2022, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (September 30, 2022 - $9 million; December 31, 2021 - $13 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 $190 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2022 (September 30, 2022 - $198 million; December 31, 2021 - $304 million). Furthermore, the Corporation has approximately $42 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (September 30, 2022 - $42 million; December 31, 2021 - $50 million).

Popular, Inc.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table L - Activity in Non-Performing Loans
(Unaudited)

Commercial loans held-in-portfolio:
		Quarter ended						Quarter ended
		31-Dec-22						30-Sep-22
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$87,448		$16,428		$103,876		$96,493		$7,446		$103,939
Plus:
	New non-performing loans	5,770		8,572		14,342		5,913		14,965		20,878
	Advances on existing non-performing loans	-		7		7		-		12		12
Less:
	Non-performing loans transferred to OREO	(445	)	-		(445	)	(352	)	-		(352	)
	Non-performing loans charged-off	(131	)	(8,725	)	(8,856	)	(4,534	)	(48	)	(4,582	)
	Loans returned to accrual status / loan collections	(10,471	)	(5,414	)	(15,885	)	(10,072	)	(5,947	)	(16,019	)
Ending balance NPLs		$82,171		$10,868		$93,039		$87,448		$16,428		$103,876


Mortgage loans held-in-portfolio:
		Quarter ended						Quarter ended
		31-Dec-22						30-Sep-22
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$252,773		$21,533		$274,306		$284,670		$20,192		$304,862
Plus:
	New non-performing loans	34,449		3,561		38,010		29,345		4,739		34,084
	Advances on existing non-performing loans	-		1		1		-		55		55
Less:
	Non-performing loans transferred to OREO	(7,242	)	-		(7,242	)	(5,604	)	-		(5,604	)
	Non-performing loans charged-off	(90	)	-		(90	)	(689	)	-		(689	)
	Loans returned to accrual status / loan collections	(37,499	)	(4,607	)	(42,106	)	(54,949	)	(3,453	)	(58,402	)
Ending balance NPLs		$242,391		$20,488		$262,879		$252,773		$21,533		$274,306


Total non-performing loans held-in-portfolio (excluding consumer):
		Quarter ended						Quarter ended
		31-Dec-22						30-Sep-22
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$340,221		$37,961		$378,182		$381,163		$27,638		$408,801
Plus:
	New non-performing loans	40,219		12,133		52,352		35,258		19,704		54,962
	Advances on existing non-performing loans	-		8		8		-		67		67
Less:
	Non-performing loans transferred to OREO	(7,687	)	-		(7,687	)	(5,956	)	-		(5,956	)
	Non-performing loans charged-off	(221	)	(8,725	)	(8,946	)	(5,223	)	(48	)	(5,271	)
	Loans returned to accrual status / loan collections	(47,970	)	(10,021	)	(57,991	)	(65,021	)	(9,400	)	(74,421	)
Ending balance NPLs		$324,562		$31,356		$355,918		$340,221		$37,961		$378,182

Popular, Inc.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)


	Quarters ended
(Dollars in thousands)	31-Dec-22			30-Sep-22			31-Dec-21
Balance at beginning of period - loans held-in-portfolio	$703,096			$681,750			$718,575
Provision for credit losses (benefit)	48,332			39,519			(31,421	)
Initial allowance for credit losses - PCD Loans	74			59			331
	751,502			721,328			687,485
Net loans charged-off (recovered):
BPPR
Commercial	(2,100	)		(1,150	)		(11,346	)
Construction	-			-			(1,518	)
Lease financing	2,221			1,338			564
Mortgage	(6,135	)		(2,165	)		(4,398	)
Consumer	25,860			20,373			9,083
Total BPPR	19,846			18,396			(7,615	)
Popular U.S.
Commercial	8,394			(511	)		(387	)
Construction	-						(213	)
Mortgage	(32	)		(23	)		569
Consumer	2,992			370			(235	)
Total Popular U.S.	11,354			(164	)		(266	)
Total loans charged-off (recovered) - Popular, Inc.	31,200			18,232			(7,881	)
Balance at end of period - loans held-in-portfolio	$720,302			$703,096			$695,366

Balance at beginning of period - unfunded commitments	$7,307			$6,904			$8,400
Provision for credit losses (benefit)	1,498			403			(503	)
Balance at end of period - unfunded commitments [1]	$8,805			$7,307			$7,897

POPULAR, INC.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	0.39		%	0.24		%	(0.11	)	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	154.91		%	216.76		%	N.M.
BPPR
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	0.35		%	0.34		%	(0.15	)	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	223.64		%	155.98		%	N.M.
Popular U.S.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	0.49		%	(0.01	)	%	(0.01	)	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	34.78		%	N.M.			N.M.
N.M. - Not meaningful.
[1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.






				Year ended			Year ended
(Dollars in thousands)				31-Dec-22			31-Dec-21
				Total			Total
Balance at beginning of period - loans held-in-portfolio				$695,366			$896,250
Provision for credit losses (benefit)				83,307			(183,345	)
Initial allowance for credit losses - PCD Loans				915			3,142
				779,588			716,047
Net loans charged-off (recovered):
BPPR
Commercial				(10,892	)		(18,300	)
Construction				(811	)		1,697
Lease financing				3,792			1,379
Mortgage				(15,743	)		2,729
Consumer				72,730			32,207
Total BPPR				49,076			19,712

Popular U.S.
Commercial				7,393			(1,247	)
Construction				(1,132	)		(120	)
Mortgage				(12	)		18
Consumer				3,961			2,318
Total Popular U.S.				10,210			969
Total loans charged-off - Popular, Inc.				59,286			20,681
Balance at end of period - loans held-in-portfolio				$720,302			$695,366

Balance at beginning of period - unfunded commitments				$7,897			$15,851
Provision for credit losses (benefit)				908			(7,954	)
Balance at end of period - unfunded commitments [1]				$8,805			$7,897

POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio				0.20		%	0.07		%
Provision for credit losses (benefit) - loan portfolios to net charge-offs				140.52		%	N.M.

BPPR
Annualized net charge-offs to average loans held-in-portfolio				0.23		%	0.09		%
Provision for credit losses (benefit) - loan portfolios to net charge-offs				141.71		%	N.M.

Popular U.S.
Annualized net charge-offs to average loans held-in-portfolio				0.12		%	0.01		%
Provision for credit losses (benefit) - loan portfolios to net charge-offs				134.80		%	N.M.
N.M. - Not meaningful.
[1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

Popular, Inc.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table N - Allowance for Credit Losses "ACL"- Loan Portfolios - CONSOLIDATED
(Unaudited)


31-Dec-22
(Dollars in thousands)	Commercial		Construction			Mortgage			Lease financing		Consumer		Total
Total ACL	$235,376		$4,246			$135,254			$20,618		$324,808		$720,302
Total loans held-in-portfolio	$15,739,132		$757,984			$7,397,471			$1,585,739		$6,597,443		$32,077,769
ACL to loans held-in-portfolio	1.50	%	0.56		%	1.83		%	1.30	%	4.92	%	2.25	%


30-Sep-22
(Dollars in thousands)	Commercial		Construction			Mortgage			Lease financing		Consumer		Total
Total ACL	$229,857		$6,199			$138,534			$19,814		$308,692		$703,096
Total loans held-in-portfolio	$15,366,859		$816,290			$7,311,713			$1,538,504		$6,489,822		$31,523,188
ACL to loans held-in-portfolio	1.50	%	0.76		%	1.89		%	1.29	%	4.76	%	2.23	%

Variance
(Dollars in thousands)	Commercial		Construction			Mortgage			Lease financing		Consumer		Total
Total ACL	$5,519		$(1,953	)		$(3,280	)		$804		$16,116		$17,206
Total loans held-in-portfolio	$372,273		$(58,306	)		$85,758			$47,235		$107,621		$554,581

Popular, Inc.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table O - Allowance for Credit Losses "ACL"- Loan Portfolios - BPPR OPERATIONS
(Unaudited)

31-Dec-22
BPPR
(In thousands)	Commercial		Construction			Mortgage			Lease financing		Consumer		Total
ACL	$174,295		$2,978			$117,344			$20,618		$300,310		$615,545
Loans held-in-portfolio	$8,423,264		$147,041			$6,110,279			$1,585,739		$6,280,582		$22,546,905
ACL to loans held-in-portfolio	2.07	%	2.03		%	1.92		%	1.30	%	4.78	%	2.73	%


30-Sep-22
BPPR
(In thousands)	Commercial		Construction			Mortgage			Lease financing		Consumer		Total
ACL	$161,775		$4,255			$120,606			$19,814		$284,484		$590,934
Loans held-in-portfolio	$8,305,583		$211,567			$6,055,843			$1,538,504		$6,176,784		$22,288,281
ACL to loans held-in-portfolio	1.95	%	2.01		%	1.99		%	1.29	%	4.61	%	2.65	%


Variance
(In thousands)	Commercial		Construction			Mortgage			Lease financing		Consumer		Total
ACL	$12,520		$(1,277	)		$(3,262	)		$804		$15,826		$24,611
Loans held-in-portfolio	$117,681		$(64,526	)		$54,436			$47,235		$103,798		$258,624

Popular, Inc.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table P - Allowance for Credit Losses "ACL"- Loan Portfolios - POPULAR U.S. OPERATIONS
(Unaudited)

31-Dec-22
Popular U.S.
(In thousands)	Commercial			Construction			Mortgage			Consumer		Total
ACL	$61,081			$1,268			$17,910			$24,498		$104,757
Loans held-in-portfolio	$7,315,868			$610,943			$1,287,192			$316,861		$9,530,864
ACL to loans held-in-portfolio	0.83		%	0.21		%	1.39		%	7.73	%	1.10		%


30-Sep-22
Popular U.S.
(In thousands)	Commercial			Construction			Mortgage			Consumer		Total
ACL	$68,082			$1,944			$17,928			$24,208		$112,162
Loans held-in-portfolio	$7,061,276			$604,723			$1,255,870			$313,038		$9,234,907
ACL to loans held-in-portfolio	0.96		%	0.32		%	1.43		%	7.73	%	1.21		%


Variance
(In thousands)	Commercial			Construction			Mortgage			Consumer		Total
ACL	$(7,001	)		$(676	)		$(18	)		$290		$(7,405	)
Loans held-in-portfolio	$254,592			$6,220			$31,322			$3,823		$295,957

Popular, Inc.
Financial Supplement to Fourth Quarter 2022 Earnings Release
Table Q - Reconciliation to GAAP Financial Measures
(Unaudited)


(In thousands, except share or per share information)	31-Dec-22			30-Sep-22			31-Dec-21
Total stockholders’ equity	$4,093,425			$3,674,838			$5,969,397
Less: Preferred stock	(22,143	)		(22,143	)		(22,143	)
Less: Goodwill	(827,428	)		(827,428	)		(720,293	)
Less: Other intangibles	(12,944	)		(13,738	)		(16,219	)
Total tangible common equity	$3,230,910			$2,811,529			$5,210,742
Total assets	$67,637,917			$70,729,675			$75,097,899
Less: Goodwill	(827,428	)		(827,428	)		(720,293	)
Less: Other intangibles	(12,944	)		(13,738	)		(16,219	)
Total tangible assets	$66,797,545			$69,888,509			$74,361,387
Tangible common equity to tangible assets	4.84		%	4.02		%	7.01		%
Common shares outstanding at end of period	71,853,720			72,673,344			79,851,169
Tangible book value per common share	$44.97			$38.69			$65.26

	Quarterly average
Total stockholders’ equity [1]	$6,161,634			$6,061,748			$5,961,214
Less: Preferred Stock	(22,143	)		(22,143	)		(22,143	)
Less: Goodwill	(827,427	)		(759,318	)		(706,184	)
Less: Other intangibles	(13,440	)		(24,038	)		(19,889	)
Total tangible equity	$5,298,624			$5,256,249			$5,212,998
Return on average tangible common equity	19.23		%	31.86		%	15.66		%
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale.

	Year-to-date average
Total stockholders’ equity [1]	$6,009,225						$5,777,652
Less: Preferred Stock	(22,143	)					(22,143	)
Less: Goodwill	(757,133	)					(679,959	)
Less: Other intangibles	(17,113	)					(20,861	)
Total tangible equity	$5,212,836						$5,054,689
Return on average tangible common equity	21.13		%				18.47		%
[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/20230125005010/en/

Popular, Inc.

Investor Relations:

Paul J. Cardillo, 212-417-6721

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 Q4 2022?

Popular, Inc. reported a net income of $257.1 million for Q4 2022.

How did Popular, Inc.'s net interest margin change in Q4 2022?

The net interest margin for Q4 2022 decreased to 3.28%, down from 3.32% in Q3 2022.

What strategic initiatives did Popular, Inc. complete in 2022?

In 2022, Popular, Inc. completed the acquisition of key customer-facing channels from Evertec and launched a multi-year transformation initiative.

What is the common stock dividend for Popular, Inc. in 2023?

Popular, Inc. increased its quarterly common stock dividend to $0.55 per share.

How much did Popular, Inc. return to shareholders in 2022?

In 2022, Popular, Inc. returned $631 million to its shareholders through common stock share repurchases.

Popular, Inc. Announces Fourth Quarter 2022 Financial Results

FAQ

What was Popular, Inc.'s net income for Q4 2022?

How did Popular, Inc.'s net interest margin change in Q4 2022?

What strategic initiatives did Popular, Inc. complete in 2022?

What is the common stock dividend for Popular, Inc. in 2023?

How much did Popular, Inc. return to shareholders in 2022?

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Popular, Inc. Announces Fourth Quarter 2022 Financial Results

FAQ

What was Popular, Inc.'s net income for Q4 2022?

How did Popular, Inc.'s net interest margin change in Q4 2022?

What strategic initiatives did Popular, Inc. complete in 2022?

What is the common stock dividend for Popular, Inc. in 2023?

How much did Popular, Inc. return to shareholders in 2022?

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