Popular, Inc. Announces Second Quarter 2022 Financial Results

Rhea-AI Summary

Popular, Inc. reported net income of $211.4 million for Q2 2022, slightly down from $211.7 million in Q1 2022. The net interest margin increased to 3.09% from 2.75%, aided by higher interest rates and loan growth across most categories, except mortgages. Non-performing loans decreased by $42 million, with a ratio of 1.6% of total loans. Total assets grew by $2 billion, while deposits increased by $2.5 billion. The bank's Common Equity Tier 1 ratio remained strong at 16.39%.

Positive

• Net interest income rose by $39.6 million to $533.9 million driven by improved margins.
• Non-performing loans decreased by $42.0 million, indicating improved credit quality.
• Total assets increased by $2.0 billion from Q1 2022, showcasing growth in loan portfolios.
• Deposits rose by $2.5 billion, reflecting a strong deposit franchise.

Negative

• Net income slightly declined from $211.7 million in Q1 2022.
• Net charge-offs increased by $2.3 million to $6.1 million from the previous quarter.

• Net income of $211.4 million in Q2 2022, compared to net income of $211.7 million in Q1 2022.
• Net interest margin of 3.09% in Q2 2022, compared to 2.75% in Q1 2022; net interest margin on a taxable equivalent basis of 3.45% in Q2 2022, compared to 3.05% in Q1 2022.
• Credit Quality:
  • Non-performing loans held-in-portfolio (“NPLs”) decreased by $42.0 million from Q1 2022; NPLs to loans ratio at 1.6% vs. 1.8% in Q1 2022;
  • Net charge-offs (“NCOs”) increased by $2.3 million from Q1 2022; annualized NCOs at 0.08% of average loans held-in-portfolio vs. 0.05% in Q1 2022;
  • Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.24% vs. 2.29% in Q1 2022; and
  • ACL to NPLs at 142.7% vs. 130.4% in Q1 2022.
• Common Equity Tier 1 ratio of 16.39%, Common Equity per Share of $55.78 and Tangible Book Value per Share of $46.18 at June 30, 2022.

SAN JUAN, Puerto Rico--(BUSINESS WIRE)-- Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $211.4 million for the quarter ended June 30, 2022, compared to net income of $211.7 million for the quarter ended March 31, 2022.

Ignacio Alvarez, President and Chief Executive Officer, said: “We are very pleased with our results for the second quarter. We earned $211.4 million in net income, with increases in both net interest income and non-interest income as compared to the first quarter. Our net interest income increased by $39.6 million to $533.9 million, driven by improved margin and growth in our loan and investment portfolios. Loan growth was broad based with balances increasing in all categories, except mortgage. The increase in our net interest margin reflects higher interest rates and the strength of our deposit franchise. Consumer spending remained resilient during the quarter and deposit balances continued to grow. Credit quality remained strong with net charge offs at near record lows, and we continued to reduce our non-performing loans. Our liquidity and capital positions remain strong which provide us the flexibility to continue to invest for growth in the future while we continue returning capital to our shareholders.

While we are vigilant regarding the possible negative impacts of record inflation, higher interest rates and the war in Ukraine, we are still seeing growth in the U.S. and P.R. with a historically strong employment market and healthy consumer deposit and spending levels. In Puerto Rico we continue to benefit from the stimulative impact of federal disaster relief spending. We are confident in our ability to continue to deliver results for our shareholders at the same time as we invest in our people, businesses and communities.”

Significant Events

Acquisition of Key Customer Channels and Amendments to Commercial Contracts with Evertec

On July 1, 2022, the Corporation’s wholly owned subsidiary, Banco Popular de Puerto Rico (“BPPR”) completed its previously announced acquisition of certain assets and assumption of certain liabilities used by Evertec Group, LLC (“Evertec Group”), a wholly owned subsidiary of Evertec, Inc. (“Evertec”) (NYSE: EVTC), to service certain BPPR channels.

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

Under the amended service agreements, Popular will have greater optionality to develop and enhance technology platforms and more flexibility to select service vendors, as Evertec Group will no longer have exclusive rights to provide certain of Popular’s technology services. This is expected to improve Popular’s ability to meet its customer needs in a timely manner. In addition, the amended service agreements are projected to reduce service costs as a result of discounted pricing and lowered caps on contractual pricing escalators tied to the Consumer Price Index. As part of the transaction, BPPR also strengthened its relationship with Evertec in the payments business, including through the incorporation of a revenue sharing structure for BPPR in connection with its merchant acquiring relationship with Evertec.

As consideration for the transaction, BPPR delivered to Evertec Group 4,589,169 shares of Evertec common stock valued at closing at $169 million (based on Evertec’s stock price on June 30, 2022 of $36.88), resulting in an after-tax gain of approximately $112 million.

In terms of capital, the transaction results in a negative impact of approximately $55 million in Popular’s tangible book value as a result of the net effect of the after-tax gain of the Evertec shares used as consideration for the transaction (approximately $112 million), minus approximately $167 million in goodwill and other intangible assets recognized by the Corporation in connection with the transaction and the effect of purchase accounting-related adjustments.

As a result of the transfer of the shares used as consideration for the transaction, Popular’s ownership stake in Evertec was reduced from approximately 16.3% to approximately 10.6% at the closing of the transaction. In connection with the transaction, Popular has agreed to further reduce its voting interest in Evertec to no more than 4.5%, whether through selling shares of Evertec common stock or a conversion of such shares into non-voting preferred stock within 90 days of the closing of the transaction. Popular expects to sell down its stake in Evertec to no more than 4.5%, subject to market conditions, and intends to return to shareholders, via common stock repurchases, any after-tax gains resulting from such sale, subject to the receipt of regulatory approvals.

Completion of Accelerated Share Repurchase

On July 12, 2022, the Corporation completed its previously announced accelerated share repurchase program for the repurchase of an aggregate $400 million of Popular’s common stock. Under the terms of the accelerated share repurchase agreement (the “ASR Agreement”), on March 2, 2022 the Corporation made an initial payment of $400 million and received an initial delivery of 3,483,942 shares of Popular’s Common Stock (the “Initial Shares”). 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 $320 million in treasury stock and $80 million as a reduction in capital surplus. Upon the final settlement of the ASR Agreement, the Corporation received an additional 1,582,922 shares of common stock and recognized approximately $120 million as treasury stock with a corresponding increase in its capital surplus account. The Corporation repurchased a total of 5,066,864 shares at an average purchase price of $78.9443 under the ASR Agreement.

Earnings Highlights
(Unaudited)	Quarters ended									Six months ended
(Dollars in thousands, except per share information)	30-Jun-22			31-Mar-22			30-Jun-21			30-Jun-22		30-Jun-21
Net interest income	$533,862			$494,312			$487,802			$1,028,174		$966,914
Provision for credit losses (benefit)	9,362			(15,500		)	(17,015	)		(6,138	)	(99,241	)
Net interest income after provision for credit losses (benefit)	524,500			509,812			504,817			1,034,312		1,066,155
Other non-interest income	157,411			154,692			154,540			312,103		308,193
Operating expenses	406,278			402,339			368,185			808,617		743,713
Income before income tax	275,633			262,165			291,172			537,798		630,635
Income tax expense	64,212			50,479			73,093			114,691		149,924
Net income	$211,421			$211,686			$218,079			$423,107		$480,711
Net income applicable to common stock	$211,068			$211,333			$217,726			$422,401		$480,005
Net income per common share-basic	$2.77			$2.69			$2.67			$5.46		$5.80
Net income per common share-diluted	$2.77			$2.69			$2.66			$5.46		$5.79

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

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

Net interest income for the quarter ended June 30, 2022 was $533.9 million, compared to $494.3 million in the previous quarter, an increase of $39.6 million. Net interest income, on a taxable equivalent basis, for the second quarter of 2022 was $595.5 million compared to $548.1 million in the first quarter of 2022, or an increase of $47.4 million.

Net interest margin for the quarter increased 34 basis points to 3.09% from 2.75% in the first quarter of 2022. On a taxable equivalent basis, net interest margin for the second quarter of 2022 was 3.45%, compared to 3.05% in the prior quarter. The improved net interest margin is driven by a higher interest rate environment that resulted in higher yields on variable rate assets, as well as new originations and investments, partially offset by an increase in funding costs. The composition of earning assets in the second quarter of the year also impacted the net interest margin positively as a higher proportion of earning assets was concentrated in loan portfolios. The main variances in net interest income on a taxable equivalent basis were:

• higher interest income from money market, trading and investment securities by $30.9 million, resulting from higher yield of the portfolio by 44 basis points driven by the increase in the interest on excess funds at the Federal Reserve and higher yield of the investment portfolio. The latter increase is mainly due to the maturity of U.S. Treasury Bills held in the available-for-sale securities portfolio and further re-investment on longer-term tax-exempt U.S. Treasury notes;

• higher interest income from commercial loans by $10.9 million due to higher average volume of loans by $486 million in a higher rate environment, partially offset by lower average volume and income of loans under the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) by $116 million and $5.5 million, respectively. Both BPPR and Popular Bank (“PB” or “Popular U.S.”) experienced growth in commercial loans despite the anticipated cancellation of PPP loans. Quarter-over-quarter, the Corporation’s loan portfolio increased by $654 million, in average, reflecting increases across all major loan segments except mortgages, including loan growth of $351 million in BPPR. Furthermore, one more day in the quarter resulted in approximately $1.9 million increase in interest income; and

• higher interest income from consumer loans, mainly driven by higher average volume by $116 million and increase in the yield of the portfolio by 14 basis points; both banks contributed to the increase in consumer loans;

partially offset by:

• higher interest expense on deposits by $3.0 million due to the increase in rates, partially offset by the decrease in average deposit balances driven by Puerto Rico government deposits due to the closing of the Commonwealth of Puerto Rico’s Plan of Adjustment at the end of the first quarter.

The Corporation recognized income of $5.1 million related to loans issued under the SBA PPP, compared to $10.6 million in the previous quarter. These loans carried a yield of approximately 15.04% in the quarter, including the amortization of fees received under the program, compared to 17.01% in the first quarter of 2022. This portfolio of loans issued under the SBA PPP declined by $68 million in BPPR to a balance of $46 million and declined by $16 million in PB to a balance of $43 million. On June 30, 2022, the SBA PPP portfolio at BPPR and PB had a remaining aggregate balance of unamortized fees of $3.3 million.

Net interest income for the BPPR segment amounted to $447.8 million for the second quarter of 2022, compared to $415.2 million for the first quarter of 2022. Net interest margin for the second and first quarters of 2022 was 3.02% and 2.67%, respectively, an improvement of 35 basis points quarter-over-quarter. As discussed above, the net interest margin was impacted by higher volume and yield on investments and loans, partially offset by lower SBA PPP income. The cost of interest-bearing deposits was 0.19%, increasing 3 basis points from the first quarter of 2022. Total deposit cost for the quarter also increased by 2 basis points to 0.14%.

Net interest income for PB was $93.4 million for the quarter ended June 30, 2022, compared to $86.5 million during the previous quarter. Net interest margin for the quarter was 3.76%, an increase of 20 basis points from the 3.56% reported in the first quarter. The increase in net interest income results mostly from a higher volume of commercial and consumer loans, partially offset by higher costs on deposit driven by the change in market rates. The cost of interest-bearing deposits was 0.54%, increasing 8 basis points from the 0.46% reported in the first quarter of 2022, while the total cost of deposits, including demand deposits, was 0.42%, an increase of 6 basis points when compared to 0.36% in the previous quarter.

Non-interest income

Non-interest income increased by $2.7 million to $157.4 million for the quarter ended June 30, 2022, compared to $154.7 million for the quarter ended March 31, 2022. The variance in non-interest income was primarily driven by:

• higher other service fees by $4.3 million due to higher credit card fees by $4.5 million mainly in interchange income and higher debit card fees, partially offset by lower insurance fees;

partially offset by:

• higher losses on equity securities by $2.0 million mainly related to securities held for deferred benefit plans, which have an offsetting positive variance in personnel costs; and

• lower other operating income by $3.1 million mainly due to lower earnings from the portfolio of equity method investments and lower income from the sale of auto rental units.

Refer to Table B for further details.

Operating expenses

Operating expenses for the second quarter of 2022 totaled $406.3 million, an increase of $3.9 million when compared to the first quarter of 2022. The variance in operating expenses was driven primarily by:

• higher personnel cost by $1.8 million mainly due to higher incentives related to the profit-sharing plan which is tied to the Corporation’s financial performance, and higher salaries; partially offset by lower performance shares and restricted stock expenses;
  
  
• higher professional fees by $6.4 million mainly due to higher programming, processing and other technology services due to higher processing and service charges; and
  
  
• higher business promotion expenses by $6.3 million mainly due to higher credit cards rewards expense by $3.9 million as a result of transactional volumes.

partially offset by:

• lower other real estate owned (OREO) expenses by $5.1 million mainly due to higher gain on sale on mortgage and commercial properties; and
  
  
• lower other operating expenses by $6.3 million mainly as result of lower legal reserves.

Full-time equivalent employees were 8,615 as of June 30, 2022, compared to 8,492 as of March 31, 2022.

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

Income taxes

For the quarter ended June 30, 2022, the Corporation recorded an income tax expense of $64.2 million, compared to $50.5 million for the previous quarter. The increase in income tax expense was mainly attributable to higher income before tax and lower exempt income during the second quarter of 2022. The effective tax rate (“ETR”) for the second quarter of 2022 was 23%, compared to 19% 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 2022 to be within a range from 17% to 20%. This range includes the impact of the recently closed Evertec transaction and the effect of the expected reduction in Popular’s voting interest in Evertec through the sale of its holdings of common stock or a conversion of such shares to non-voting preferred stock, either of which would trigger mark-to-market accounting on any remaining stake in Evertec.

Credit Quality

During the second quarter of 2022, the Corporation continued to show strong credit quality trends and low credit costs with low levels of NCOs and decreasing NPLs. We continue to closely monitor changes in the macroeconomic environment and on borrower performance, given potential economic headwinds, rising interest rates and geopolitical uncertainty. However, management believes that the improvement over the last few 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 second quarter of 2022:

• At June 30, 2022, total non-performing loans held-in-portfolio decreased by $42.0 million from March 31, 2022. BPPR’s NPLs decreased by $42.0 million, mostly driven by lower commercial and mortgage NPLs by $21.3 million and $21.9 million, respectively. The mortgage NPLs decrease was mainly due to the combined effects of collection efforts, increased foreclosure activity and sustained low levels of early delinquency compared with pre-pandemic trends. PB’s NPLs remained flat quarter-over-quarter. At June 30, 2022, the ratio of NPLs to total loans held-in-portfolio was 1.6%, compared to 1.8% in the first quarter of 2022.

• Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $5.2 million quarter-over-quarter. In BPPR, total inflows decreased by $6.0 million, mostly driven by lower commercial and mortgage inflows of $4.5 million and $1.5 million, respectively. Mortgage inflows continued trending lower than pre-pandemic levels. NPL inflows at PB remained essentially flat quarter-over-quarter.

• NCOs amounted to $6.1 million, an unfavorable variance of $2.3 million when compared to the first quarter of 2022. PB’s NCOs reflected an unfavorable variance of $2.5 million, as the prior quarter was a net recovery of $1.7 million. BPPR‘s NCOs were $5.3 million, flat quarter-over-quarter. During the second quarter of 2022, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.08%, compared to 0.05% in the first quarter of 2022. Refer to Table M for further information on net charge-offs and related ratios.

• At June 30, 2022, the ACL increased by $4.0 million, or 0.6%, from the first quarter of 2022 to $681.8 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 current baseline forecast continues to show a favorable economic scenario. Annualized 2022 GDP growth of 2.8% is expected for both Puerto Rico and United States, compared to 3.5% and 3.7%, respectively, in the previous quarter. Changes in assumptions related to fiscal stimulus, higher energy prices and tighter financial market conditions contributed to the reduction. The 2022 average unemployment rate is forecasted at 6.9% and 3.5% for Puerto Rico and United States, respectively, improving from 7.3% and 3.6%, respectively, in the previous forecast. Puerto Rico’s unemployment rate forecast benefits from the Bureau of Labor Statistics (“BLS”) revisions that showed a stronger than expected labor market.

• In BPPR, the ACL increased by $4.0 million, mainly driven by higher loan volumes and changes in the macroeconomic scenarios. The ACL for the PB segment remained flat quarter-over-quarter as higher loan volumes in the commercial real estate and consumer portfolios offset reductions in qualitative reserves and favorable credit quality. The Corporation’s ratio of the allowance for credit losses to loans held-in-portfolio was 2.24% in the second quarter of 2022, compared to 2.29% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 142.7%, compared to 130.4% in the previous quarter.

• The provision for credit losses for the loan portfolios for the second quarter of 2022 was an expense of $9.9 million, compared to a benefit of $14.4 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 $9.1 million, compared to a benefit of $12.7 million in the previous quarter, while the provision for the PB segment was an expense of $0.7 million, compared to a benefit of $1.7 million in the previous quarter.

• The provision for unfunded commitments for the second quarter of 2022 was a benefit of $0.2 million, compared to a benefit of $0.8 million in the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $0.3 million flat from the first quarter of 2022. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations

Non-Performing Assets
(Unaudited)
(In thousands)	30-Jun-22			31-Mar-22			30-Jun-21
Non-performing loans held-in-portfolio	$477,924			$519,921			$685,183
Non-performing loans held-for-sale	-			-			8,700
Other real estate owned (“OREO”)	92,137			90,567			73,272
Total non-performing assets	$570,061			$610,488			$767,155
Net charge-offs (recoveries) for the quarter	$6,073			$3,781			$(1,291	)
Ratios:
Loans held-in-portfolio	$30,370,936			$29,588,190			$29,062,617
Non-performing loans held-in-portfolio to loans held-in-portfolio	1.57	%		1.76	%		2.36	%
Allowance for credit losses to loans held-in-portfolio	2.24			2.29			2.70
Allowance for credit losses to non-performing loans, excluding loans held-for-sale	142.65			130.36			114.68
Refer to Table K for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios
(Unaudited)		Quarters ended									Six months ended
(In thousands)		30-Jun-22			31-Mar-22			30-Jun-21			30-Jun-22			30-Jun-21
Provision for credit losses (benefit) - loan portfolios:
BPPR		$9,128			$(12,661	)		$(22,488	)		$(3,533	)		$(62,464	)
Popular U.S.		733			(1,744	)		4,988			(1,011	)		(30,815	)
Total provision for credit losses (benefit) - loan portfolios		$9,861			$(14,405	)		$(17,500	)		$(4,544	)		$(93,279	)

Credit Quality by Segment
(Unaudited)
(In thousands)	Quarters ended
BPPR		30-Jun-22			31-Mar-22			30-Jun-21
Provision for credit losses (benefit) - loan portfolios		$9,128			$(12,661	)		$(22,488	)
Net charge-offs (recoveries)		5,332			5,502			(1,483	)
Total non-performing loans held-in-portfolio		444,831			486,816			656,789
Allowance / loans held-in-portfolio		2.70	%		2.74	%		3.13	%
Allowance / non-performing loans held-in-portfolio		130.52	%		118.45	%		100.77	%
	Quarters ended
Popular U.S.		30-Jun-22			31-Mar-22			30-Jun-21
Provision for credit losses (benefit) - loan portfolios		$733			$(1,744	)		$4,988
Net charge-offs (recoveries)		741			(1,721	)		192
Total non-performing loans held-in-portfolio		33,093			33,105			28,394
Allowance / loans held-in-portfolio		1.14	%		1.18	%		1.57	%
Allowance / non-performing loans held-in-portfolio		305.72	%		305.64	%		436.49	%

Financial Condition Highlights
(Unaudited)
(In thousands)			30-Jun-22		31-Mar-22		30-Jun-21
Cash and money market investments			$10,215,946		$10,508,840		$18,333,650
Investment securities			28,138,453		26,658,289		22,647,401
Loans			30,370,936		29,588,190		29,062,617
Total assets			71,501,931		69,525,082		72,657,293
Deposits			65,327,664		62,862,295		64,641,776
Borrowings			959,135		1,060,706		1,267,545
Total liabilities			67,208,582		64,853,836		66,842,679
Stockholders’ equity			4,293,349		4,671,246		5,814,614

Total assets increased by $2.0 billion from the first quarter of 2022, driven by:

• an increase in debt securities held-to-maturity of $1.6 billion due to the purchase of U.S. Treasuries; and

• an increase in loans held-in-portfolio of $0.8 billion mainly due to commercial loans growth at both BPPR and PB and an increase in consumer loans, mainly at BPPR, including auto loans, credit cards and other consumer loans;

partially offset by:

• a decrease of $0.4 billion in money market investments, in part due to the purchase of U.S. Treasury securities;

Total liabilities increased by $2.4 billion from the first quarter of 2022, driven by:

• an increase of $2.5 billion in deposits, mainly in Puerto Rico public sector as well as private demand deposit and savings accounts;

partially offset by:

• a decrease in borrowings of $99.7 million, mainly due to the maturity during this quarter of $100 million in borrowings at PB.

Stockholders' equity decreased by $377.9 million from the first quarter of 2022, principally due to an increase in accumulated unrealized losses on debt securities available-for-sale by $563.4 million due to a decline in the fair value of fixed-rate debt securities as a result of the rising interest rate environment, and to dividends, partially offset by the net income of $211.4 million for the quarter.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.39%, $55.78 and $46.18, respectively, at June 30, 2022, compared to 16.26%, $60.78 and $51.16 at March 31, 2022. Refer to Table A for capital ratios.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those regarding Popular’s acquisition of certain assets and assumption of certain liabilities from EVERTEC and the transactions described in this press release (the “Transaction”) and Popular’s business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings, new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic (including the appearance of new strains of the virus), actions taken by governmental authorities in response thereto, and the direct and indirect impact of the pandemic on Popular, our customers, service providers and third parties. Other factors include Popular’s ability to successfully transition and integrate the assets acquired as part of the Transaction, related operations, employees and third party contractors; unexpected costs, including, without limitation, costs due to exposure to any unrecorded liabilities or issues not identified during due diligence investigation of the Transaction or that are not subject to indemnification or reimbursement by EVERTEC; operational risks that may affect Popular and other risks arising from the acquisition of the acquired assets or by adverse effects on relationships with customers, employees and service providers and business and other risks arising from the extension of Popular’s current commercial agreements with EVERTEC. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions, and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, are generally intended to identify forward-looking statements.

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

About Popular, Inc.

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

Conference Call

Popular will hold a conference call to discuss its financial results today Thursday, July 28, 2022 at 11:00 a.m. Eastern Time. The call will be open to the public and broadcasted 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 491702.

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, August 25, 2022. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 436694.

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

Popular, Inc.

Financial Supplement to Second Quarter 2022 Earnings Release

Table A - Selected Ratios and Other Information

Table B - Consolidated Statement of Operations

Table C - Consolidated Statement of Financial Condition

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

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

Table F - Mortgage Banking Activities and Other Service Fees

Table G - Loans and Deposits

Table H - Loan Delinquency - PUERTO RICO OPERATIONS

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

Table J - Loan Delinquency - CONSOLIDATED

Table K - Non-Performing Assets

Table L - Activity in Non-Performing Loans

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

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

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

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

Table Q - Reconciliation to GAAP Financial Measures

POPULAR, INC.
Financial Supplement to Second Quarter 2022 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
	Quarters ended						Six months ended
	30-Jun-22		31-Mar-22		30-Jun-21		30-Jun-22		30-Jun-21
Basic EPS	$2.77		$2.69		$2.67		$5.46		$5.80
Diluted EPS	$2.77		$2.69		$2.66		$5.46		$5.79
Average common shares outstanding	76,171,784		78,443,706		81,609,435		77,301,469		82,748,275
Average common shares outstanding - assuming dilution	76,286,883		78,595,463		81,772,789		77,426,274		82,888,378
Common shares outstanding at end of period	76,576,397		76,487,523		80,656,480		76,576,397		80,656,480
Market value per common share	$76.93		$81.74		$75.05		$76.93		$75.05
Market capitalization - (In millions)	$5,891		$6,252		$6,053		$5,891		$6,053
Return on average assets	1.17	%	1.14	%	1.24	%	1.15	%	1.42	%
Return on average common equity	14.58	%	14.38	%	15.43	%	14.48	%	17.08	%
Net interest margin (non-taxable equivalent basis)	3.09	%	2.75	%	2.91	%	2.92	%	2.99	%
Net interest margin (taxable equivalent basis) -non-GAAP	3.45	%	3.05	%	3.22	%	3.24	%	3.31	%
Common equity per share	$55.78		$60.78		$71.82		$55.78		$71.82
Tangible common book value per common share (non-GAAP) [1]	$46.18		$51.16		$63.24		$46.18		$63.24
Tangible common equity to tangible assets (non-GAAP) [1]	5.00	%	5.69	%	7.09	%	5.00	%	7.09	%
Return on average tangible common equity [1]	16.70	%	16.40	%	17.58	%	16.55	%	19.46	%
Tier 1 capital	16.46	%	16.33	%	16.62	%	16.46	%	16.62	%
Total capital	18.29	%	18.19	%	19.09	%	18.29	%	19.09	%
Tier 1 leverage	7.56	%	6.98	%	7.34	%	7.56	%	7.34	%
Common Equity Tier 1 capital	16.39	%	16.26	%	16.55	%	16.39	%	16.55	%
[1] Refer to Table Q for reconciliation to GAAP financial measures.

POPULAR, INC.
Financial Supplement to Second Quarter 2022 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
		Quarters ended				Variance		Quarter ended		Variance		Six months ended
						Q2 2022				Q2 2022
(In thousands, except per share information)		30-Jun-22		31-Mar-22		vs. Q1 2022		30-Jun-21		vs. Q2 2021		30-Jun-22		30-Jun-21
Interest income:
	Loans	$446,245		$426,791		$19,454		$433,781		$12,464		$873,036		$868,430
	Money market investments	23,742		6,464		17,278		4,274		19,468		30,206		7,386
	Investment securities	101,774		96,466		5,308		91,706		10,068		198,240		177,396
	Total interest income	571,761		529,721		42,040		529,761		42,000		1,101,482		1,053,212
Interest expense:
	Deposits	27,827		24,783		3,044		28,060		(233	)	52,610		58,261
	Short-term borrowings	248		80		168		62		186		328		205
	Long-term debt	9,824		10,546		(722	)	13,837		(4,013	)	20,370		27,832
	Total interest expense	37,899		35,409		2,490		41,959		(4,060	)	73,308		86,298
Net interest income		533,862		494,312		39,550		487,802		46,060		1,028,174		966,914
Provision for credit losses (benefit)		9,362		(15,500	)	24,862		(17,015	)	26,377		(6,138	)	(99,241	)
Net interest income after provision for credit losses (benefit)		524,500		509,812		14,688		504,817		19,683		1,034,312		1,066,155
Service charges on deposit accounts		41,809		40,713		1,096		40,153		1,656		82,522		79,773
Other service fees		81,451		77,134		4,317		76,382		5,069		158,585		147,010
Mortgage banking activities		13,575		12,865		710		7,448		6,127		26,440		24,791
Net (loss) gain, including impairment, on equity securities		(4,109	)	(2,094	)	(2,015	)	1,565		(5,674	)	(6,203	)	1,986
Net loss on trading account debt securities		51		(723	)	774		(47	)	98		(672	)	(92	)
Net loss on sale of loans, including valuation adjustments on loans held-for-sale		-		-		-		(73	)	73		-		(73	)
Adjustments (expense) to indemnity reserves on loans sold		170		(745	)	915		1,668		(1,498	)	(575	)	970
Other operating income		24,464		27,542		(3,078	)	27,444		(2,980	)	52,006		53,828
	Total non-interest income	157,411		154,692		2,719		154,540		2,871		312,103		308,193
Operating expenses:
Personnel costs
	Salaries	101,847		98,673		3,174		90,294		11,553		200,520		179,629
	Commissions, incentives and other bonuses	29,787		31,339		(1,552	)	26,374		3,413		61,126		59,592
	Pension, postretirement and medical insurance	13,730		12,783		947		13,289		441		26,513		24,213
	Other personnel costs, including payroll taxes	23,424		24,201		(777	)	24,247		(823	)	47,625		50,249
	Total personnel costs	168,788		166,996		1,792		154,204		14,584		335,784		313,683
Net occupancy expenses		26,214		24,723		1,491		24,562		1,652		50,937		50,575
Equipment expenses		25,088		23,479		1,609		22,805		2,283		48,567		44,380
Other taxes		15,780		15,715		65		13,205		2,575		31,495		27,164
Professional fees
	Collections, appraisals and other credit related fees	2,802		2,226		576		3,486		(684	)	5,028		6,806
	Programming, processing and other technology services	73,305		69,374		3,931		67,152		6,153		142,679		133,518
	Legal fees, excluding collections	3,091		3,954		(863	)	2,367		724		7,045		4,732
	Other professional fees	35,674		32,943		2,731		28,148		7,526		68,617		56,045
	Total professional fees	114,872		108,497		6,375		101,153		13,719		223,369		201,101
Communications		5,993		6,147		(154	)	6,005		(12	)	12,140		12,838
Business promotion		21,353		15,083		6,270		16,511		4,842		36,436		29,032
FDIC deposit insurance		6,463		7,372		(909	)	5,742		721		13,835		11,710
Other real estate owned (OREO) income		(7,806	)	(2,713	)	(5,093	)	(4,299	)	(3,507	)	(10,519	)	(8,832	)
Credit and debit card processing, volume, interchange and other expenses		11,375		12,509		(1,134	)	10,917		458		23,884		23,371
Other operating expenses
	Operational losses	4,061		11,825		(7,764	)	6,528		(2,467	)	15,886		14,424
	All other	13,302		11,815		1,487		9,597		3,705		25,117		21,961
	Total other operating expenses	17,363		23,640		(6,277	)	16,125		1,238		41,003		36,385
Amortization of intangibles		795		891		(96	)	1,255		(460	)	1,686		2,306
	Total operating expenses	406,278		402,339		3,939		368,185		38,093		808,617		743,713
Income before income tax		275,633		262,165		13,468		291,172		(15,539	)	537,798		630,635
Income tax expense		64,212		50,479		13,733		73,093		(8,881	)	114,691		149,924
Net income		$211,421		$211,686		$(265	)	$218,079		$(6,658	)	$423,107		$480,711
Net income applicable to common stock		$211,068		$211,333		$(265	)	$217,726		$(6,658	)	$422,401		$480,005
Net income per common share - basic		$2.77		$2.69		$0.08		$2.67		$0.10		$5.46		$5.80
Net income per common share - diluted		$2.77		$2.69		$0.08		$2.66		$0.11		$5.46		$5.79
Dividends Declared per Common Share		$0.55		$0.55		$-		$0.45		$0.10		$1.10		$0.85

Popular, Inc.
Financial Supplement to Second Quarter 2022 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
									Variance
									Q2 2022 vs.
(In thousands)			30-Jun-22		31-Mar-22		30-Jun-21		Q1 2022
Assets:
Cash and due from banks			$528,590		$439,148		$530,849		$89,442
Money market investments			9,687,356		10,069,692		17,802,801		(382,336	)
Trading account debt securities, at fair value			32,317		36,042		35,931		(3,725	)
Debt securities available-for-sale, at fair value			26,266,251		26,359,915		22,335,167		(93,664	)
Debt securities held-to-maturity, at amortized cost			1,664,015		75,984		88,801		1,588,031
		Less: Allowance for credit losses	7,495		7,844		10,214		(349	)
		Total debt securities held-to-maturity, net	1,656,520		68,140		78,587		1,588,380
Equity securities			175,870		186,348		187,502		(10,478	)
Loans held-for-sale, at lower of cost or fair value			28,546		55,150		85,315		(26,604	)
Loans held-in-portfolio			30,643,443		29,856,356		29,286,225		787,087
		Less: Unearned income	272,507		268,166		223,608		4,341
		Allowance for credit losses	681,750		677,792		785,790		3,958
		Total loans held-in-portfolio, net	29,689,186		28,910,398		28,276,827		778,788
Premises and equipment, net			490,152		488,390		486,443		1,762
Other real estate			92,137		90,567		73,272		1,570
Accrued income receivable			216,780		204,466		203,419		12,314
Mortgage servicing rights, at fair value			129,877		125,358		119,467		4,519
Other assets			1,773,523		1,755,847		1,750,151		17,676
Goodwill			720,293		720,293		671,122		-
Other intangible assets			14,533		15,328		20,440		(795	)
Total assets			$71,501,931		$69,525,082		$72,657,293		$1,976,849
Liabilities and Stockholders’ Equity:
Liabilities:
	Deposits:
		Non-interest bearing	$16,663,259		$16,096,666		$14,920,887		$566,593
		Interest bearing	48,664,405		46,765,629		49,720,889		1,898,776
		Total deposits	65,327,664		62,862,295		64,641,776		2,465,369
Assets sold under agreements to repurchase			70,925		72,819		90,925		(1,894	)
Notes payable			888,210		987,887		1,176,620		(99,677	)
Other liabilities			921,783		930,835		933,358		(9,052	)
Total liabilities			67,208,582		64,853,836		66,842,679		2,354,746
Stockholders’ equity:
Preferred stock			22,143		22,143		22,143		-
Common stock			1,046		1,046		1,045		-
Surplus			4,576,478		4,571,111		4,506,659		5,367
Retained earnings			3,311,951		3,143,004		2,670,885		168,947
Treasury stock			(1,665,253	)	(1,668,820	)	(1,290,427	)	3,567
Accumulated other comprehensive loss, net of tax			(1,953,016	)	(1,397,238	)	(95,691	)	(555,778	)
		Total stockholders’ equity	4,293,349		4,671,246		5,814,614		(377,897	)
Total liabilities and stockholders’ equity			$71,501,931		$69,525,082		$72,657,293		$1,976,849

Popular, Inc.
Financial Supplement to Second Quarter 2022 Earnings Release
Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER
(Unaudited)
			Quarters ended															Variance
			30-Jun-22					31-Mar-22					30-Jun-21					Q2 2022 vs. Q1 2022							Q2 2022 vs. Q2 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, trading and investment securities		$39,326		$175.7	1.79	%	$43,304		$144.8	1.35	%	$38,136		$137.5	1.44	%	($3,978	)	$30.9		0.44		%	$1,190		$38.2		0.35		%
	Loans:
		Commercial	14,227		183.0	5.16		13,741		172.1	5.08		13,539		176.9	5.24		486		10.9		0.08			688		6.1		(0.08	)
		Construction	781		11.1	5.71		726		9.8	5.45		858		11.6	5.43		55		1.3		0.26			(77	)	(0.5	)	0.28
		Mortgage	7,294		97.1	5.33		7,388		96.8	5.24		7,765		99.4	5.12		(94	)	0.3		0.09			(471	)	(2.3	)	0.21
		Consumer	2,654		75.0	11.33		2,538		70.0	11.19		2,431		68.7	11.34		116		5.0		0.14			223		6.3		(0.01	)
		Auto	3,499		70.1	8.04		3,460		69.3	8.12		3,280		70.1	8.58		39		0.8		(0.08	)		219		-		(0.54	)
		Lease financing	1,445		21.4	5.91		1,393		20.7	5.95		1,262		19.0	6.01		52		0.7		(0.04	)		183		2.4		(0.10	)
	Total loans		29,900		457.7	6.14		29,246		438.7	6.06		29,135		445.7	6.13		654		19.0		0.08			765		12.0		0.01
	Total interest earning assets		$69,226		$633.4	3.67	%	$72,550		$583.5	3.25	%	$67,271		$583.2	3.47	%	$(3,324	)	$49.9		0.42		%	$1,955		$50.2		0.20		%
		Allowance for credit losses - loan portfolio	(682	)				(695	)				(801	)				13							119
		Allowance for credit losses - investment securities	(8	)				(8	)				(10	)				-							2
		Other non-interest earning assets	3,787					3,782					3,906					5							(119	)
	Total average assets		$72,323					$75,629					$70,366					$(3,306	)						$1,957
Liabilities and Stockholders' Equity:
	Interest bearing deposits:
		NOW and money market	$24,897		$8.3	0.13	%	$28,289		$7.3	0.10	%	$25,102		$8.0	0.13	%	$(3,392	)	$1.0		0.03		%	$(205	)	$0.3		-		%
		Savings	16,363		6.9	0.17		16,434		6.6	0.16		15,384		6.9	0.18		(71	)	0.3		0.01			979		-		(0.01	)
		Time deposits	7,044		12.6	0.72		6,737		10.9	0.66		7,104		13.2	0.74		307		1.7		0.06			(60	)	(0.6	)	(0.02	)
		Total interest-bearing deposits	48,304		27.8	0.23		51,460		24.8	0.20		47,590		28.1	0.24		(3,156	)	3.0		0.03			714		(0.3	)	(0.01	)
	Borrowings		1,043		10.1	3.87		1,105		10.6	3.87		1,316		13.9	4.24		(62	)	(0.5	)	-			(273	)	(3.8	)	(0.37	)
		Total interest-bearing liabilities	49,347		37.9	0.31		52,565		35.4	0.27		48,906		42.0	0.34		(3,218	)	2.5		0.04			441		(4.1	)	(0.03	)
		Net interest spread				3.36	%				2.98	%				3.13	%					0.38		%					0.23		%
	Non-interest bearing deposits		16,254					16,142					14,920					112							1,334
	Other liabilities		894					939					857					(45	)						37
	Stockholders' equity		5,828					5,983					5,683					(155	)						145
		Total average liabilities and stockholders' equity	$72,323					$75,629					$70,366					$(3,306	)						$1,957
Net interest income / margin on a taxable equivalent basis (Non-GAAP)					$595.5	3.45	%			$548.1	3.05	%			$541.2	3.22	%			$47.4		0.40		%			$54.3		0.23		%
Taxable equivalent adjustment					61.6					53.8					53.4					7.8							8.2
Net interest income / margin non-taxable equivalent basis (GAAP)					$533.9	3.09	%			$494.3	2.75	%			$487.8	2.91	%			$39.6		0.34		%			$46.1		0.18		%

Popular, Inc.
Financial Supplement to Second Quarter 2022 Earnings Release
Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE
(Unaudited)
			Six months ended
			30-Jun-22					30-Jun-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, trading and investment securities		$41,304		$320.6	1.56	%	$35,958		$267.0	1.49	%	$5,346		$53.6		0.07		%
	Loans:
		Commercial	13,987		355.2	5.12		13,582		355.9	5.30		405		(0.7	)	(0.18	)
		Construction	754		20.9	5.58		884		23.5	5.38		(130	)	(2.6	)	0.20
		Mortgage	7,341		193.9	5.28		7,816		197.8	5.06		(475	)	(3.9	)	0.22
		Consumer	2,595		145.0	11.27		2,472		139.1	11.35		123		5.9		(0.08	)
		Auto	3,480		139.4	8.08		3,241		138.3	8.63		239		1.1		(0.55	)
		Lease financing	1,419		42.0	5.93		1,239		37.3	6.02		180		4.7		(0.09	)
	Total loans		29,576		896.4	6.10		29,234		891.9	6.15		342		4.5		(0.05	)
	Total interest earning assets		$70,880		$1,217.0	3.45	%	$65,192		$1,158.9	3.58	%	$5,688		$58.1		(0.13	)	%
		Allowance for credit losses - loan portfolio	(689	)				(845	)				156
		Allowance for credit losses - investment securities	(8	)				(10	)				2
		Other non-interest earning assets	3,779					3,900					(121	)
	Total average assets		$73,962					$68,237					$5,725
Liabilities and Stockholders' Equity:
	Interest bearing deposits:
		NOW and money market	$26,584		$15.6	0.12	%	$23,895		$16.2	0.14	%	$2,689		($0.6	)	(0.02	)	%
		Savings	16,399		13.5	0.17		14,876		14.0	0.19		1,523		(0.5	)	(0.02	)
		Time deposits	6,891		23.5	0.69		7,184		28.1	0.79		(293	)	(4.6	)	(0.10	)
		Total interest-bearing deposits	49,874		52.6	0.21		45,955		58.3	0.26		3,919		(5.7	)	(0.05	)
	Borrowings		1,074		20.7	3.88		1,330		28.0	4.24		(256	)	(7.3	)	(0.36	)
		Total interest-bearing liabilities	50,948		73.3	0.29		47,285		86.3	0.37		3,663		(13.0	)	(0.08	)
		Net interest spread				3.16	%				3.21	%					(0.05	)	%
	Non-interest bearing deposits		16,198					14,161					2,037
	Other liabilities		911					1,103					(192	)
	Stockholders' equity		5,905					5,688					217
		Total average liabilities and stockholders' equity	$73,962					$68,237					$5,725
Net interest income / margin on a taxable equivalent basis (Non-GAAP)					$1,143.7	3.24	%			$1,072.6	3.31	%			$71.1		(0.07	)	%
Taxable equivalent adjustment					115.5					105.7					9.8
Net interest income / margin non-taxable equivalent basis (GAAP)					$1,028.2	2.92	%			$966.9	2.99	%			$61.3		(0.07	)	%

Popular, Inc.
Financial Supplement to Second Quarter 2022 Earnings Release
Table F - Mortgage Banking Activities and Other Service Fees
(Unaudited)
Mortgage Banking Activities
		Quarters ended						Variance				Six months ended				Variance
(In thousands)		30-Jun-22		31-Mar-22		30-Jun-21		Q2 2022 vs Q1 2022		Q2 2022 vs Q2 2021		30-Jun-22		30-Jun-21		2022 vs. 2021
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$9,186		$9,323		$9,522		$(137	)	$(336	)	$18,509		$19,237		$(728	)
	Mortgage servicing rights fair value adjustments	2,257		1,088		(6,239	)	1,169		8,496		3,345		(5,727	)	9,072
Total mortgage servicing fees, net of fair value adjustments		11,443		10,411		3,283		1,032		8,160		21,854		13,510		8,344
Net gain (loss) on sale of loans, including valuation on loans held-for-sale		36		(1,534	)	5,197		1,570		(5,161	)	(1,498	)	10,172		(11,670	)
Trading account profit (loss):
	Unrealized (losses) gains on outstanding derivative positions	(2	)	2		-		(4	)	(2	)	-		-		-
	Realized gains (losses) on closed derivative positions	2,430		4,135		(866	)	(1,705	)	3,296		6,565		1,636		4,929
Total trading account profit (loss)		2,428		4,137		(866	)	(1,709	)	3,294		6,565		1,636		4,929
Losses on repurchased loans, including interest advances		(332	)	(149	)	(166	)	(183	)	(166	)	(481	)	(527	)	46
Total mortgage banking activities		$13,575		$12,865		$7,448		$710		$6,127		$26,440		$24,791		$1,649

Other Service Fees
			Quarters ended						Variance				Six months ended				Variance
(In thousands)			30-Jun-22		31-Mar-22		30-Jun-21		Q2 2022 vs Q1 2022		Q2 2022 vs Q2 2021		30-Jun-22		30-Jun-21		2022 vs. 2021
Other service fees:
	Debit card fees		$12,882		$11,779		$12,458		$1,103		$424		$24,661		$24,035		$626
	Insurance fees		12,017		14,156		12,773		(2,139	)	(756	)	26,173		25,601		572
	Credit card fees		38,155		33,642		32,726		4,513		5,429		71,797		61,417		10,380
	Sale and administration of investment products		6,017		5,791		5,970		226		47		11,808		11,510		298
	Trust fees		6,143		5,927		6,165		216		(22	)	12,070		12,007		63
	Other fees		6,237		5,839		6,290		398		(53	)	12,076		12,440		(364	)
Total other service fees			$81,451		$77,134		$76,382		$4,317		$5,069		$158,585		$147,010		$11,575

Popular, Inc.
Financial Supplement to Second Quarter 2022 Earnings Release
Table G - Loans and Deposits
(Unaudited)
Loans - Ending Balances
				Variance
(In thousands)	30-Jun-22	31-Mar-22	30-Jun-21	Q2 2022 vs. Q1 2022		Q2 2022 vs. Q2 2021
Loans held-in-portfolio:
Commercial	$14,545,301	$14,028,246	$13,437,932	$517,055		$1,107,369
Construction	790,920	744,783	865,113	46,137		(74,193	)
Leasing	1,480,222	1,426,122	1,297,928	54,100		182,294
Mortgage	7,261,955	7,326,346	7,678,478	(64,391	)	(416,523	)
Auto	3,489,976	3,430,162	3,289,027	59,814		200,949
Consumer	2,802,562	2,632,531	2,494,139	170,031		308,423
Total loans held-in-portfolio	$30,370,936	$29,588,190	$29,062,617	$782,746		$1,308,319
Loans held-for-sale:
Commercial	$-	$-	$1,700	$-		$(1,700	)
Construction	-	-	7,000	-		(7,000	)
Mortgage	28,546	55,150	76,615	(26,604	)	(48,069	)
Total loans held-for-sale	$28,546	$55,150	$85,315	$(26,604	)	$(56,769	)
Total loans	$30,399,482	$29,643,340	$29,147,932	$756,142		$1,251,550

Deposits - Ending Balances
				Variance
(In thousands)	30-Jun-22	31-Mar-22	30-Jun-21	Q2 2022 vs. Q1 2022		Q2 2022 vs. Q2 2021
Demand deposits [1]	$27,798,243	$25,684,715	$24,497,918	$2,113,528		$3,300,325
Savings, NOW and money market deposits (non-brokered)	29,672,655	29,318,333	32,452,829	354,322		(2,780,174	)
Savings, NOW and money market deposits (brokered)	761,244	768,558	683,021	(7,314	)	78,223
Time deposits (non-brokered)	6,896,786	6,964,848	6,979,349	(68,062	)	(82,563	)
Time deposits (brokered CDs)	198,736	125,841	28,659	72,895		170,077
Total deposits	$65,327,664	$62,862,295	$64,641,776	$2,465,369		$685,888
[1] Includes interest and non-interest bearing demand deposits.

Popular, Inc.
Financial Supplement to Second Quarter 2022 Earnings Release
Table H - Loan Delinquency - Puerto Rico Operations
(Unaudited)
30-Jun-22
Puerto Rico
				Past due																		Past due 90 days or more
			30-59			60-89			90 days			Total										Non-accrual				Accruing
(In thousands)			days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family			$	1,992		$	-		$	254		$	2,246		$	234,308		$	236,554			$	254		$	-
Commercial real estate:
	Non-owner occupied			1,379			110			20,435			21,924			2,630,194			2,652,118				20,435			-
	Owner occupied			4,894			2,860			32,155			39,909			1,366,840			1,406,749				32,155			-
Commercial and industrial				2,534			1,526			44,176			48,236			3,472,447			3,520,683				43,649			527
Construction				498			-			-			498			161,864			162,362				-			-
Mortgage				211,483			82,898			681,757			976,138			5,065,785			6,041,923				284,670			397,087
Leasing				9,970			2,164			4,665			16,799			1,463,423			1,480,222				4,665			-
Consumer:
	Credit cards			5,785			4,142			8,896			18,823			947,876			966,699				-			8,896
	Home equity lines of credit			-			-			-			-			3,122			3,122				-			-
	Personal			11,216			6,043			19,045			36,304			1,351,796			1,388,100				19,045			-
	Auto			56,577			13,815			28,045			98,437			3,391,539			3,489,976				28,045			-
	Other			242			131			12,125			12,498			120,651			133,149				11,913			212
Total			$	306,570		$	113,689		$	851,553		$	1,271,812		$	20,209,845		$	21,481,657			$	444,831		$	406,722
31-Mar-22
Puerto Rico
				Past due																		Past due 90 days or more
			30-59			60-89			90 days			Total										Non-accrual				Accruing
(In thousands)			days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family			$	2,130		$	189		$	274		$	2,593		$	160,648		$	163,241			$	274		$	-
Commercial real estate:
	Non-owner occupied			3,646			93			20,627			24,366			2,536,174			2,560,540				20,627			-
	Owner occupied			4,024			50			49,732			53,806			1,396,696			1,450,502				49,732			-
Commercial and industrial				1,218			169			48,167			49,554			3,333,918			3,383,472				47,149			1,018
Construction				715			-			-			715			126,610			127,325				-			-
Mortgage				182,397			79,374			736,338			998,109			5,125,554			6,123,663				306,560			429,778
Leasing				9,819			2,446			3,766			16,031			1,410,091			1,426,122				3,766			-
Consumer:
	Credit cards			5,817			3,728			9,049			18,594			896,966			915,560				-			9,049
	Home equity lines of credit			-			-			23			23			3,093			3,116				-			23
	Personal			10,215			6,184			19,157			35,556			1,267,920			1,303,476				19,157			-
	Auto			51,497			11,353			27,514			90,364			3,339,798			3,430,162				27,514			-
	Other			537			37			12,184			12,758			112,322			125,080				12,037			147
Total			$	272,015		$	103,623		$	926,831		$	1,302,469		$	19,709,790		$	21,012,259			$	486,816		$	440,015

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			$	(138	)		$	(189	)		$	(20	)		$	(347	)		$	73,660			$	73,313				$	(20	)		$	-
Commercial real estate:
	Non-owner occupied			(2,267	)			17				(192	)			(2,442	)			94,020				91,578					(192	)			-
	Owner occupied			870				2,810				(17,577	)			(13,897	)			(29,856	)			(43,753	)				(17,577	)			-
Commercial and industrial				1,316				1,357				(3,991	)			(1,318	)			138,529				137,211					(3,500	)			(491	)
Construction				(217	)			-				-				(217	)			35,254				35,037					-				-
Mortgage				29,086				3,524				(54,581	)			(21,971	)			(59,769	)			(81,740	)				(21,890	)			(32,691	)
Leasing				151				(282	)			899				768				53,332				54,100					899				-
Consumer:
	Credit cards			(32	)			414				(153	)			229				50,910				51,139					-				(153	)
	Home equity lines of credit			-				-				(23	)			(23	)			29				6					-				(23	)
	Personal			1,001				(141	)			(112	)			748				83,876				84,624					(112	)			-
	Auto			5,080				2,462				531				8,073				51,741				59,814					531				-
	Other			(295	)			94				(59	)			(260	)			8,329				8,069					(124	)			65
Total			$	34,555			$	10,066			$	(75,278	)		$	(30,657	)		$	500,055			$	469,398				$	(41,985	)		$	(33,293	)

Popular, Inc.
Financial Supplement to Second Quarter 2022 Earnings Release
Table I - Loan Delinquency - Popular U.S. Operations
(Unaudited)
30-Jun-22
Popular U.S.
				Past due																		Past due 90 days or more
			30-59			60-89			90 days			Total										Non-accrual				Accruing
(In thousands)			days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family			$	-		$	187		$	280		$	467		$	1,895,352		$	1,895,819			$	280		$	-
Commercial real estate:
	Non-owner occupied			288			-			-			288			1,467,935			1,468,223				-			-
	Owner occupied			144			-			1,416			1,560			1,465,252			1,466,812				1,416			-
Commercial and industrial				9,278			2,037			6,326			17,641			1,880,702			1,898,343				5,750			576
Construction				-			7,000			-			7,000			621,558			628,558				-			-
Mortgage				1,561			3,587			20,192			25,340			1,194,692			1,220,032				20,192			-
Consumer:
	Credit cards			-			-			-			-			47			47				-			-
	Home equity lines of credit			303			16			4,705			5,024			66,431			71,455				4,705			-
	Personal			755			470			749			1,974			232,339			234,313				749			-
	Other			-			13			1			14			5,663			5,677				1			-
Total			$	12,329		$	13,310		$	33,669		$	59,308		$	8,829,971		$	8,889,279			$	33,093		$	576
31-Mar-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			$	-		$	-		$	-		$	-		$	1,865,623		$	1,865,623			$	-		$	-
Commercial real estate:
	Non-owner occupied			902			740			374			2,016			1,391,874			1,393,890				374			-
	Owner occupied			6,385			-			677			7,062			1,398,580			1,405,642				677			-
Commercial and industrial				10,925			602			4,891			16,418			1,788,918			1,805,336				4,352			539
Construction				-			-			-			-			617,458			617,458				-			-
Mortgage				13,006			1,069			21,826			35,901			1,166,782			1,202,683				21,826			-
Consumer:
	Credit cards			-			-			-			-			26			26				-			-
	Home equity lines of credit			259			15			5,248			5,522			68,437			73,959				5,248			-
	Personal			739			558			627			1,924			203,381			205,305				627			-
	Other			-			1			1			2			6,007			6,009				1			-
Total			$	32,216		$	2,985		$	33,644		$	68,845		$	8,507,086		$	8,575,931			$	33,105		$	539

Variance
				Past due																								Past due 90 days or more
			30-59				60-89				90 days				Total													Non-accrual					Accruing
(In thousands)			days				days				or more				past due				Current				Loans HIP					loans				loans
Commercial multi-family			$	-			$	187			$	280			$	467			$	29,729			$	30,196				$	280			$	-
Commercial real estate:
	Non-owner occupied			(614	)			(740	)			(374	)			(1,728	)			76,061				74,333					(374	)			-
	Owner occupied			(6,241	)			-				739				(5,502	)			66,672				61,170					739				-
Commercial and industrial				(1,647	)			1,435				1,435				1,223				91,784				93,007					1,398				37
Construction				-				7,000				-				7,000				4,100				11,100					-				-
Mortgage				(11,445	)			2,518				(1,634	)			(10,561	)			27,910				17,349					(1,634	)			-
Consumer:
	Credit cards			-				-				-				-				21				21					-				-
	Home equity lines of credit			44				1				(543	)			(498	)			(2,006	)			(2,504	)				(543	)			-
	Personal			16				(88	)			122				50				28,958				29,008					122				-
	Other			-				12				-				12				(344	)			(332	)				-				-
Total			$	(19,887	)		$	10,325			$	25			$	(9,537	)		$	322,885			$	313,348				$	(12	)		$	37

Popular, Inc.
Financial Supplement to Second Quarter 2022 Earnings Release
Table J - Loan Delinquency - Consolidated
(Unaudited)
30-Jun-22
Popular, Inc.
			Past due																		Past due 90 days or more
		30-59			60-89			90 days			Total										Non-accrual				Accruing
(In thousands)		days			days			or more			past due			Current			Loans HIP				loans			loans
Commercial multi-family		$	1,992		$	187		$	534		$	2,713		$	2,129,660		$	2,132,373			$	534		$	-
Commercial real estate:
	Non-owner occupied		1,667			110			20,435			22,212			4,098,129			4,120,341				20,435			-
	Owner occupied		5,038			2,860			33,571			41,469			2,832,092			2,873,561				33,571			-
Commercial and industrial			11,812			3,563			50,502			65,877			5,353,149			5,419,026				49,399			1,103
Construction			498			7,000			-			7,498			783,422			790,920				-			-
Mortgage			213,044			86,485			701,949			1,001,478			6,260,477			7,261,955				304,862			397,087
Leasing			9,970			2,164			4,665			16,799			1,463,423			1,480,222				4,665			-
Consumer:
	Credit cards		5,785			4,142			8,896			18,823			947,923			966,746				-			8,896
	Home equity lines of credit		303			16			4,705			5,024			69,553			74,577				4,705			-
	Personal		11,971			6,513			19,794			38,278			1,584,135			1,622,413				19,794			-
	Auto		56,577			13,815			28,045			98,437			3,391,539			3,489,976				28,045			-
	Other		242			144			12,126			12,512			126,314			138,826				11,914			212
Total		$	318,899		$	126,999		$	885,222		$	1,331,120		$	29,039,816		$	30,370,936			$	477,924		$	407,298
31-Mar-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		$	2,130		$	189		$	274		$	2,593		$	2,026,271		$	2,028,864			$	274		$	-
Commercial real estate:
	Non-owner occupied		4,548			833			21,001			26,382			3,928,048			3,954,430				21,001			-
	Owner occupied		10,409			50			50,409			60,868			2,795,276			2,856,144				50,409			-
Commercial and industrial			12,143			771			53,058			65,972			5,122,836			5,188,808				51,501			1,557
Construction			715			-			-			715			744,068			744,783				-			-
Mortgage			195,403			80,443			758,164			1,034,010			6,292,336			7,326,346				328,386			429,778
Leasing			9,819			2,446			3,766			16,031			1,410,091			1,426,122				3,766			-
Consumer:
	Credit cards		5,817			3,728			9,049			18,594			896,992			915,586				-			9,049
	Home equity lines of credit		259			15			5,271			5,545			71,530			77,075				5,248			23
	Personal		10,954			6,742			19,784			37,480			1,471,301			1,508,781				19,784			-
	Auto		51,497			11,353			27,514			90,364			3,339,798			3,430,162				27,514			-
	Other		537			38			12,185			12,760			118,329			131,089				12,038			147
Total		$	304,231		$	106,608		$	960,475		$	1,371,314		$	28,216,876		$	29,588,190			$	519,921		$	440,554

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		$	(138	)		$	(2	)		$	260			$	120			$	103,389			$	103,509				$	260			$	-
Commercial real estate:
	Non-owner occupied		(2,881	)			(723	)			(566	)			(4,170	)			170,081				165,911					(566	)			-
	Owner occupied		(5,371	)			2,810				(16,838	)			(19,399	)			36,816				17,417					(16,838	)			-
Commercial and industrial			(331	)			2,792				(2,556	)			(95	)			230,313				230,218					(2,102	)			(454	)
Construction			(217	)			7,000				-				6,783				39,354				46,137					-				-
Mortgage			17,641				6,042				(56,215	)			(32,532	)			(31,859	)			(64,391	)				(23,524	)			(32,691	)
Leasing			151				(282	)			899				768				53,332				54,100					899				-
Consumer:
	Credit cards		(32	)			414				(153	)			229				50,931				51,160					-				(153	)
	Home equity lines of credit		44				1				(566	)			(521	)			(1,977	)			(2,498	)				(543	)			(23	)
	Personal		1,017				(229	)			10				798				112,834				113,632					10				-
	Auto		5,080				2,462				531				8,073				51,741				59,814					531				-
	Other		(295	)			106				(59	)			(248	)			7,985				7,737					(124	)			65
Total		$	14,668			$	20,391			$	(75,253	)		$	(40,194	)		$	822,940			$	782,746				$	(41,997	)		$	(33,256	)

Popular, Inc.
Financial Supplement to Second Quarter 2022 Earnings Release
Table K - Non-Performing Assets
(Unaudited)
										Variance
(Dollars in thousands)	30-Jun-22	As a % of loans HIP by category		31-Mar-22	As a % of loans HIP by category		30-Jun-21	As a % of loans HIP by category		Q2 2022 vs. Q1 2022		Q2 2022 vs. Q2 2021
Non-accrual loans:
Commercial	$103,939	0.7	%	$123,185	0.9	%	$225,565	1.7	%	$(19,246	)	$(121,626	)
Construction	-	-		-	-		14,877	1.7		-		(14,877	)
Leasing	4,665	0.3		3,766	0.3		2,286	0.2		899		2,379
Mortgage	304,862	4.2		328,386	4.5		383,976	5.0		(23,524	)	(79,114	)
Auto	28,045	0.8		27,514	0.8		13,286	0.4		531		14,759
Consumer	36,413	1.3		37,070	1.4		45,193	1.8		(657	)	(8,780	)
Total non-performing loans held-in-portfolio	477,924	1.6	%	519,921	1.8	%	685,183	2.4	%	(41,997	)	(207,259	)
Non-performing loans held-for-sale [1]	-			-			8,700			-		(8,700	)
Other real estate owned (“OREO”)	92,137			90,567			73,272			1,570		18,865
Total non-performing assets	$570,061			$610,488			$767,155			$(40,427	)	$(197,094	)
Accruing loans past due 90 days or more [2]	$407,298			$440,554			$633,315			$(33,256	)	$(226,017	)
Ratios:
Non-performing assets to total assets	0.80	%		0.88	%		1.06	%
Non-performing loans held-in-portfolio to loans held-in-portfolio	1.57			1.76			2.36
Allowance for credit losses to loans held-in-portfolio	2.24			2.29			2.70
Allowance for credit losses to non-performing loans, excluding loans held-for-sale	142.65			130.36			114.68
[1] There were no non-performing loans held-for-sale as of June 30, 2022 and March 31, 2022 (June 30, 2021 - $7 million in construction loans and $2 million in commercial loans).
[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 $11 million at June 30, 2022, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (March 31, 2022 - $13 million; June 30, 2021 - $15 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 $237 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2022 (March 31, 2022 - $266 million; June 30, 2021 - $363 million). Furthermore, the Corporation has approximately $43 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (March 31, 2022 - $45 million; June 30, 2021 - $56 million).

Popular, Inc.
Financial Supplement to Second Quarter 2022 Earnings Release
Table L - Activity in Non-Performing Loans
(Unaudited)
Commercial loans held-in-portfolio:
		Quarter ended						Quarter ended
		30-Jun-22						31-Mar-22
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$117,782		$5,403		$123,185		$120,047		$5,532		$125,579
Plus:
	New non-performing loans	1,666		7,325		8,991		6,127		2,999		9,126
	Advances on existing non-performing loans	-		1		1		-		2,505		2,505
Less:
	Non-performing loans transferred to OREO	(914	)	-		(914	)	(3,052	)	-		(3,052	)
	Non-performing loans charged-off	(951	)	(89	)	(1,040	)	(256	)	(73	)	(329	)
	Loans returned to accrual status / loan collections	(21,090	)	(5,194	)	(26,284	)	(5,084	)	(5,560	)	(10,644	)
Ending balance NPLs		$96,493		$7,446		$103,939		$117,782		$5,403		$123,185
Construction loans held-in-portfolio:
		Quarter ended						Quarter ended
		30-Jun-22						31-Mar-22
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$-		$-		$-		$485		$-		$485
Less:
	Loans returned to accrual status / loan collections	-		-		-		(485	)	-		(485	)
Ending balance NPLs		$-		$-		$-		$-		$-		$-
Mortgage loans held-in-portfolio:
		Quarter ended						Quarter ended
		30-Jun-22						31-Mar-22
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$306,560		$21,826		$328,386		$333,887		$21,969		$355,856
Plus:
	New non-performing loans	36,665		3,793		40,458		38,193		4,800		42,993
	Advances on existing non-performing loans	-		110		110		-		134		134
Less:
	Non-performing loans transferred to OREO	(10,627	)	-		(10,627	)	(10,344	)	(85	)	(10,429	)
	Non-performing loans charged-off	(295	)	(127	)	(422	)	(467	)	-		(467	)
	Loans returned to accrual status / loan collections	(47,633	)	(5,410	)	(53,043	)	(54,709	)	(4,992	)	(59,701	)
Ending balance NPLs		$284,670		$20,192		$304,862		$306,560		$21,826		$328,386
Total non-performing loans held-in-portfolio (excluding consumer):
		Quarter ended						Quarter ended
		30-Jun-22						31-Mar-22
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$424,342		$27,229		$451,571		$454,419		$27,501		$481,920
Plus:
	New non-performing loans	38,331		11,118		49,449		44,320		7,799		52,119
	Advances on existing non-performing loans	-		111		111		-		2,639		2,639
Less:
	Non-performing loans transferred to OREO	(11,541	)	-		(11,541	)	(13,396	)	(85	)	(13,481	)
	Non-performing loans charged-off	(1,246	)	(216	)	(1,462	)	(723	)	(73	)	(796	)
	Loans returned to accrual status / loan collections	(68,723	)	(10,604	)	(79,327	)	(60,278	)	(10,552	)	(70,830	)
Ending balance NPLs		$381,163		$27,638		$408,801		$424,342		$27,229		$451,571

Popular, Inc.
Financial Supplement to Second Quarter 2022 Earnings Release
Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)
	Quarters ended
(Dollars in thousands)	30-Jun-22			31-Mar-22			30-Jun-21
Balance at beginning of period - loans held-in-portfolio	$677,792			$695,366			$800,797
Provision for credit losses (benefit)	9,861			(14,405	)		(17,500	)
Initial allowance for credit losses - PCD Loans	170			612			1,202
	687,823			681,573			784,499
Net loans charged-off (recovered):
BPPR
Commercial	(3,412	)		(4,230	)		(9,877	)
Construction	(395	)		(416	)		(479	)
Lease financing	667			(434	)		393
Mortgage	(4,451	)		(2,992	)		935
Consumer	12,923			13,574			7,545
Total BPPR	5,332			5,502			(1,483	)
Popular U.S.
Commercial	137			(627	)		(413	)
Construction	(4	)		(1,128	)		93
Mortgage	63			(20	)		(423	)
Consumer	545			54			935
Total Popular U.S.	741			(1,721	)		192
Total loans charged-off (recovered) - Popular, Inc.	6,073			3,781			(1,291	)
Balance at end of period - loans held-in-portfolio	$681,750			$677,792			$785,790
Balance at beginning of period - unfunded commitments	$7,054			$7,897			$9,569
Provision for credit losses (benefit)	(150	)		(843	)		367
Balance at end of period - unfunded commitments [1]	$6,904			$7,054			$9,936
POPULAR, INC.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	0.08		%	0.05		%	(0.02	)	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	162.37		%	(380.98	)	%	N.M.
BPPR
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	0.10		%	0.11		%	(0.03	)	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	171.19		%	(230.12	)	%	N.M.
Popular U.S.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	0.03		%	(0.08	)	%	0.01		%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	98.92		%	101.34		%	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 Second Quarter 2022 Earnings Release
Table N - Allowance for Credit Losses "ACL"- Loan Portfolios - CONSOLIDATED
(Unaudited)
30-Jun-22
(Dollars in thousands)		Commercial		Construction		Mortgage			Lease financing		Consumer			Total
Total ACL		$209,630		$6,913		$148,305			$19,037		$297,865			$681,750
Total loans held-in-portfolio		$14,545,301		$790,920		$7,261,955			$1,480,222		$6,292,538			$30,370,936
ACL to loans held-in-portfolio		1.44	%	0.87	%	2.04		%	1.29	%	4.73		%	2.24	%
31-Mar-22
(Dollars in thousands)		Commercial		Construction		Mortgage			Lease financing		Consumer			Total
Total ACL		$204,643		$6,539		$149,206			$18,398		$299,006			$677,792
Total loans held-in-portfolio		$14,028,246		$744,783		$7,326,346			$1,426,122		$6,062,693			$29,588,190
ACL to loans held-in-portfolio		1.46	%	0.88	%	2.04		%	1.29	%	4.93		%	2.29	%
Variance
(Dollars in thousands)		Commercial		Construction		Mortgage			Lease financing		Consumer			Total
Total ACL		$4,987		$374		$(901	)		$639		$(1,141	)		$3,958
Total loans held-in-portfolio		$517,055		$46,137		$(64,391	)		$54,100		$229,845			$782,746

Popular, Inc.
Financial Supplement to Second Quarter 2022 Earnings Release
Table O - Allowance for Credit Losses "ACL"- Loan Portfolios - PUERTO RICO OPERATIONS
(Unaudited)
30-Jun-22
Puerto Rico
(In thousands)		Commercial			Construction			Mortgage				Lease financing			Consumer				Total
ACL		$	153,547		$	3,074		$	130,030			$	19,037		$	274,889			$	580,577
Loans held-in-portfolio		$	7,816,104		$	162,362		$	6,041,923			$	1,480,222		$	5,981,046			$	21,481,657
ACL to loans held-in-portfolio			1.96	%		1.89	%		2.15		%		1.29	%		4.60		%		2.70	%
31-Mar-22
Puerto Rico
(In thousands)		Commercial			Construction			Mortgage				Lease financing			Consumer				Total
ACL		$	145,471		$	2,414		$	131,362			$	18,398		$	278,966			$	576,611
Loans held-in-portfolio		$	7,557,755		$	127,325		$	6,123,663			$	1,426,122		$	5,777,394			$	21,012,259
ACL to loans held-in-portfolio			1.92	%		1.90	%		2.15		%		1.29	%		4.83		%		2.74	%
Variance
(In thousands)		Commercial			Construction			Mortgage				Lease financing			Consumer				Total
ACL		$	8,076		$	660		$	(1,332	)		$	639		$	(4,077	)		$	3,966
Loans held-in-portfolio		$	258,349		$	35,037		$	(81,740	)		$	54,100		$	203,652			$	469,398

Popular, Inc.
Financial Supplement to Second Quarter 2022 Earnings Release
Table P - Allowance for Credit Losses "ACL"- Loan Portfolios - POPULAR U.S. OPERATIONS
(Unaudited)
30-Jun-22
Popular U.S.
(In thousands)		Commercial			Construction			Mortgage		Consumer		Total
ACL		$56,083			$3,839			$18,275		$22,976		$101,173
Loans held-in-portfolio		$6,729,197			$628,558			$1,220,032		$311,492		$8,889,279
ACL to loans held-in-portfolio		0.83		%	0.61		%	1.50	%	7.38	%	1.14		%
31-Mar-22
Popular U.S.
(In thousands)		Commercial			Construction			Mortgage		Consumer		Total
ACL		$59,172			$4,125			$17,844		$20,040		$101,181
Loans held-in-portfolio		$6,470,491			$617,458			$1,202,683		$285,299		$8,575,931
ACL to loans held-in-portfolio		0.91		%	0.67		%	1.48	%	7.02	%	1.18		%
Variance
(In thousands)		Commercial			Construction			Mortgage		Consumer		Total
ACL		$(3,089	)		$(286	)		$431		$2,936		$(8	)
Loans held-in-portfolio		$258,706			$11,100			$17,349		$26,193		$313,348

Popular, Inc.
Financial Supplement to Second Quarter 2022 Earnings Release
Table Q - Reconciliation to GAAP Financial Measures
(Unaudited)
(In thousands, except share or per share information)	30-Jun-22			31-Mar-22			30-Jun-21
Total stockholders’ equity	$4,293,349			$4,671,246			$5,814,614
Less: Preferred stock	(22,143	)		(22,143	)		(22,143	)
Less: Goodwill	(720,293	)		(720,293	)		(671,122	)
Less: Other intangibles	(14,533	)		(15,328	)		(20,440	)
Total tangible common equity	$3,536,380			$3,913,482			$5,100,909
Total assets	$71,501,931			$69,525,082			$72,657,293
Less: Goodwill	(720,293	)		(720,293	)		(671,122	)
Less: Other intangibles	(14,533	)		(15,328	)		(20,440	)
Total tangible assets	$70,767,105			$68,789,461			$71,965,731
Tangible common equity to tangible assets	5.00		%	5.69		%	7.09		%
Common shares outstanding at end of period	76,576,397			76,487,523			80,656,480
Tangible book value per common share	$46.18			$51.16			$63.24
	Quarterly average
Total stockholders’ equity [1]	$5,827,666			$5,983,309			$5,683,325
Less: Preferred Stock	(22,143	)		(22,143	)		(22,143	)
Less: Goodwill	(720,292	)		(720,292	)		(671,121	)
Less: Other intangibles	(15,043	)		(15,881	)		(21,350	)
Total tangible equity	$5,070,188			$5,224,993			$4,968,711
Return on average tangible common equity	16.70		%	16.40		%	17.58		%
[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/20220728005052/en/

Popular, Inc.

Investor Relations:

Paul J. Cardillo, 212-417-6721

Investor Relations Officer

pcardillo@popular.com

or

Media Relations:

MC González Noguera, 917-804-5253

Executive Vice President and Chief Communications & Public Affairs Officer

mc.gonzalez@popular.com

Source: Popular, Inc.

FAQ

What were Popular, Inc.'s earnings for Q2 2022?

Popular reported net income of $211.4 million for Q2 2022.

How did the net interest margin change in Q2 2022 for Popular, Inc.?

The net interest margin increased to 3.09% in Q2 2022 from 2.75% in Q1 2022.

What is the Common Equity Tier 1 ratio for Popular, Inc. as of June 30, 2022?

The Common Equity Tier 1 ratio is 16.39%.

Did Popular, Inc. improve or decline in credit quality in Q2 2022?

Credit quality improved, with non-performing loans decreasing by $42 million.

What was the impact of the Evertec transaction on Popular, Inc.?

Popular's ownership in Evertec decreased from approximately 16.3% to 10.6% after the transaction.