Popular, Inc. Announces Second Quarter 2023 Financial Results

Rhea-AI Summary

Popular, Inc. (BPOP) reported net income of $151.2 million in Q2 2023, down from $159.0 million in Q1 2023. The company's net interest margin decreased to 3.14% in Q2 2023 from 3.22% in Q1 2023. Credit quality improved with decreases in non-performing loans and net charge-offs. Loans and deposit balances also increased, while total borrowings remained flat. Common Equity Tier 1 ratio stood at 16.87%, with Common Equity per Share at $63.00 and Tangible Book Value per Share at $51.37 at June 30, 2023.

Positive

• Improvement in credit quality with decreases in non-performing loans and net charge-offs
• Growth in loan and deposit balances
• Stable total borrowings
• Strong Common Equity Tier 1 ratio and per share values

Negative

• None.

• Net income of $151.2 million in Q2 2023, compared to net income of $159.0 million in Q1 2023.
• Net interest margin of 3.14% in Q2 2023, compared to 3.22% in Q1 2023; net interest margin on a taxable equivalent basis of 3.29% in Q2 2023, compared to 3.46% in Q1 2023.
• Credit Quality:
  • Non-performing loans held-in-portfolio (“NPLs”) decreased by $26.9 million from Q1 2023; NPLs to loans ratio at 1.2% vs. 1.3% in Q1 2023;
  • Net charge-offs (“NCOs”) decreased by $8.8 million from Q1 2023; annualized NCOs at 0.29% of average loans held-in-portfolio vs. 0.41% in Q1 2023;
  • Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.12% vs. 2.13% in Q1 2023; and
  • ACL to NPLs at 181.6% vs. 167.1% in Q1 2023.
• Loans increased by $692.5 million and by $630.4 million in average quarterly balances, from Q1 2023.
• Ending deposit balances increased by $3.1 billion and average quarterly balances increased by $1.0 billion, from Q1 2023.
• Total borrowings at Q2 2023 were $1.4 billion, flat compared to Q1 2023.
• Common Equity Tier 1 ratio of 16.87%, Common Equity per Share of $63.00 and Tangible Book Value per Share of $51.37 at June 30, 2023.

SAN JUAN, Puerto Rico--(BUSINESS WIRE)-- Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $151.2 million for the quarter ended June 30, 2023, compared to net income of $159.0 million for the quarter ended March 31, 2023.

Ignacio Alvarez, President and Chief Executive Officer, said: “Popular achieved another strong quarter, with net income of $151 million. We are particularly pleased by the growth in our loan portfolios, both in Puerto Rico and the United States, which allowed us to maintain our net interest income stable despite higher deposit costs. Our deposit base remained strong and well-diversified. Our results were further bolstered by positive credit quality trends and healthy non-interest income. We continued investing in areas such as people, regulatory compliance and technology, confident that they will contribute to our long-term success. We are encouraged by the resiliency of the U.S. economy and sustained economic activity in Puerto Rico. Our strong levels of capital and liquidity position us well to support such activity and serve the evolving needs of our growing customer base.”

Significant Events

Redemption of Senior Notes

On March 13, 2023, the Corporation issued $400 million aggregate principal amount of 7.25% Senior Notes due 2028 (the “2028 Notes”) in an underwritten public offering. On July 14, 2023, the Corporation announced that it will use a portion of the net proceeds of the 2028 Notes offering to redeem, on August 14, 2023, the outstanding $300 million aggregate principal amount of its 6.125% Senior Notes due September 2023. The redemption price will be equal to 100% of the principal amount plus accrued and unpaid interest through the redemption date.

Refer to Table I for further details of liquidity sources.

Earnings Highlights
(Unaudited)	Quarters ended							Six months ended
(Dollars in thousands, except per share information)	30-Jun-23		31-Mar-23		30-Jun-22			30-Jun-23		30-Jun-22
Net interest income	$531,668		$531,656		$533,862			$1,063,324		$1,028,174
Provision for credit losses (benefit)	37,192		47,637		9,362			84,829		(6,138	)
Net interest income after provision for credit losses	494,476		484,019		524,500			978,495		1,034,312
Other non-interest income	160,471		161,961		157,411			322,432		312,103
Operating expenses	460,284		440,687		406,278			900,971		808,617
Income before income tax	194,663		205,293		275,633			399,956		537,798
Income tax expense	43,503		46,314		64,212			89,817		114,691
Net income	$151,160		$158,979		$211,421			$310,139		$423,107
Net income applicable to common stock	$150,807		$158,626		$211,068			$309,433		$422,401
Net income per common share-basic	$2.10		$2.22		$2.77			$4.32		$5.46
Net income per common share-diluted	$2.10		$2.22		$2.77			$4.32		$5.46

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 Tables D and E for the quarter ended June 30, 2023 and Table F for the six-month periods ended June 30, 2023 and 2022. 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, 2023 was $531.7 million, flat over the previous quarter. Net interest income on a taxable equivalent basis for the second quarter of 2023 was $558.4 million compared to $570.4 million in the previous quarter, a decrease of $12.0 million. The decrease in the taxable equivalent net interest income is related to a lower volume of exempt investments and higher disallowed interest expense in the Puerto Rico tax computation. The latter results from the increase in the Corporation’s cost of deposits that is attributable to the tax-exempt income. Refer to the income taxes discussion for further information.

Net interest margin for the quarter was 3.14%, compared to 3.22% in the first quarter of 2023, a decrease of eight basis points. On a taxable equivalent basis, net interest margin for the second quarter of 2023 was 3.29%, compared to 3.46% for the prior quarter. The main variances in net interest income on a taxable equivalent basis were:

• higher interest expense on deposits by $50.3 million due to the increase in rates, mainly from the increase in volume and cost of Puerto Rico government deposits, and a higher cost in most deposit categories in both Banco Popular de Puerto Rico (“BPPR”) and Popular Bank (“PB” or “Popular U.S. Operations”);

partially offset by:

• higher interest income from loans by $30.4 million resulting from an increase in average loans by $635 million, reflecting increases in both BPPR and PB and across all major lending segments. Loan origination in a higher interest rate environment and the repricing of adjustable-rate loans resulted in a higher yield on loans by 18 basis points. The categories with the highest impact were commercial loans, which increased by $18.5 million in interest income, or 20 basis points, and consumer loans which increased by $5.6 million, or 36 basis points; and
• higher interest income from investment securities, trading and money market investments by $12.6 million driven mainly by a higher volume of money market investments, which reflects a 50 basis points increase in yield related to the increase in the Federal funds rate, partially offset by a lower volume of investment securities.

Net interest income for the BPPR segment amounted to $453.1 million for the second quarter of 2023, $3.3 million higher than the first quarter of 2023. Net interest margin decreased three basis points to 3.21% compared to 3.24% in the first quarter of 2023. The decrease in net interest margin was due to a higher volume of deposits and to a shift in the mix of BPPR deposits towards higher yielding Puerto Rico government deposits. The increase in net interest income at the BPPR segment can be attributed to a higher volume of loans and overnight Fed funds reserves. Earning assets yield at the BPPR segment improved to 4.57%, an increase of 22 basis points from the prior quarter. The average volume of earning assets at the BPPR segment increased $521 million while the average volume of total deposits increased by $539 million, mainly P.R. public sector deposits. Public sector deposits were $1.2 billion higher on average than during Q1 2023 and were partially offset by decreases in commercial interest-bearing deposits. The cost of interest-bearing deposits at BPPR increased 34 basis points to 1.95% from 1.61% the previous quarter. The increase in the cost of deposits at BPPR was mainly impacted by the repricing of public funds. Total deposit costs in the second quarter of 2023 were 1.44%, compared to 1.18% in the quarter ended March 31, 2023, an increase of 26 basis points. Excluding the increase in public deposit costs, total commercial and retail deposits at BPPR increased by 14 basis points during the quarter.

Net interest income for PB was $87.5 million for the quarter ended June 30, 2023, compared to $90.1 million during the previous quarter, a decrease of $2.6 million. Net interest margin decreased by 33 basis points in the quarter to 3.01%, compared to 3.34% in the first quarter of 2023. The decrease in net interest margin was mostly driven by a higher cost of deposits, partially offset by a higher volume of loans and the repricing of adjustable-rate loans. The cost of interest-bearing deposits was 3.02%, compared to 2.47% during the first quarter of 2023, or an increase of 55 basis points, while total deposit cost was 2.55% compared to 2.01% in the previous quarter.

Non-interest income

Non-interest income amounted to $160.5 million for the quarter ended June 30, 2023, a decrease of $1.5 million when compared to $162.0 million for the quarter ended March 31, 2023. The main factors that contributed to the variance in non-interest income were:

• lower income from mortgage banking activities by $5.1 million, mainly related to an unfavorable variance of $4.8 million related to the fair value adjustments of mortgage servicing rights (“MSRs”), including the impact of portfolio runoff; and

• lower other operating income by $2.6 million mainly due to $7.0 million recognized in income during the first quarter of 2023 from successful insurance claim reimbursements related to prior period legal matters, partially offset by higher earnings from the portfolio of equity method investments;

partially offset by:

• higher service charges on deposit accounts by $3.1 million, mainly due to $2.9 million in non-balance compensation fees related to cash management services on commercial customer accounts; and

• higher other service fees by $4.2 million, mainly due to higher credit card and debit card fees due to higher volume of transactions and higher merchant acquiring fees from the revenue sharing agreement with Evertec Inc.

Refer to Table B for further details.

Operating expenses

Operating expenses for the second quarter of 2023 totaled $460.3 million, an increase of $19.6 million when compared to the first quarter of 2023. The variance in operating expenses was driven primarily by:

• higher professional fees by $16.7 million mainly due to higher advisory services by $12.9 million related to corporate initiatives focused on regulatory, compliance and cyber security efforts, the impact of the grant in May 2023 of $1.9 million in directors’ share based payment, and an increase in audit fees by $1.1 million;

• higher technology and software expenses by $3.8 million mainly due to an increase in information technology professional and consulting fees by $2.1 million and higher software amortization expense by $1.1 million;

• higher processing and transactional services expenses by $3.9 million mainly due to broad based retail customers' debit card replacement costs incurred during the second quarter of 2023 of $3.4 million; and

• higher business promotion expenses by $6.2 million mainly due to higher customer reward program expenses in our credit card business by $4.3 million and higher advertising and sponsorship expense by $1.8 million;

partially offset by:

• lower personnel costs by $7.3 million, mainly due to a decrease in performance shares and restricted stock expenses by $4.8 million, and lower other compensation expenses by $5.0 million due to the impact of the minimum salary increase on vacations accruals and incentive payments adjustments, both recorded in the first quarter, and payroll taxes that are traditionally higher in the first quarter of the year; partially offset by an increase in health insurance costs by $2.3 million; and

• lower FDIC deposit insurance expense by $2.1 million due to a decrease in the assessment rate driven by the adoption of the Financial Accounting Standards Board (‘’FASB’’) issued Accounting Standards Update (‘’ASU’’) 2022-02 during the first quarter of 2023, which eliminated the accounting guidance for trouble debt restructures (‘’TDRs’’).

Full-time equivalent employees were 9,124 as of June 30, 2023, compared to 8,975 as of March 31, 2023.

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

Income taxes

For the quarter ended June 30, 2023, the Corporation recorded an income tax expense of $43.5 million compared to an income tax expense of $46.3 million for the previous quarter. The favorable variance in income tax expense was mainly attributable to lower income before tax. The effective tax rate (“ETR”) for the second quarter of 2023 was 22.4% while the ETR for the first quarter was 22.6%.

The ETR of the Corporation is impacted by the composition and source of its taxable income. The Corporation expects the ETR for the year 2023 to be within a range from 22% to 25%.

Credit Quality

During the second quarter of 2023, the Corporation continued to reflect strong credit quality metrics with low levels of net charge offs (“NCOs”) and decreasing non-performing loans (“NPLs”). We continue to closely monitor changes in the macroeconomic environment and on borrower performance, given inflationary pressures and geopolitical risks. However, management believes that the improvement over recent years in the risk profile of the Corporation’s loan portfolios positions Popular to continue to operate successfully under the current environment.

The following presents credit quality results for the second quarter of 2023:

• At June 30, 2023, total non-performing loans held-in-portfolio decreased by $26.9 million from March 31, 2023. BPPR’s NPLs decreased by $26.6 million, mostly driven by lower mortgage NPLs by $29.9 million, in part offset by higher construction NPLs due to a single $9.3 million relationship. PB’s NPLs remained flat quarter-over-quarter. At June 30, 2023, the ratio of NPLs to total loans held-in-portfolio was 1.2%, compared to 1.3% in the first quarter of 2023.

• Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $10.0 million quarter-over-quarter. In BPPR, total inflows decreased by $10.6 million, mainly driven by lower commercial and mortgage NPLs by $13.4 million and $6.5 million, respectively, in part offset by the abovementioned construction relationship inflow. PB inflows remained flat quarter-over-quarter.

• NCOs amounted to $24.0 million, decreasing by $8.8 million when compared to the first quarter of 2023. BPPR’s NCOs decreased by $12.8 million quarter-over-quarter, mainly driven by lower consumer NCOs by $14.5 million, due to a $10.5 million line of credit charge-off in the prior quarter, coupled with lower auto loan NCOs by $4.7 million during the quarter. PB’s NCOs increased by $4.0 million due to a fully reserved commercial loan charged-off during the quarter. During the second quarter of 2023, the Corporation’s ratio of annualized NCOs to average loans held-in-portfolio was 0.29%, compared to 0.41% in the first quarter of 2023. Refer to Table O for further information on NCOs and related ratios.

• At June 30, 2023, the allowance for credit losses (“ACL”) increased by $11.1 million from the first quarter of 2023 to $700.2 million. In BPPR and PB, the ACL increased by $9.1 million and $2.0 million, respectively. These increases were mostly driven by specific reserves for collateral dependent U.S. commercial and P.R. construction loans, changes in macroeconomic scenarios, higher loan volumes and migration of P.R. consumer credit scores, partially offset by changes in the assignments of probability weights to macroeconomic scenarios, as discussed below, and reductions in qualitative reserves.

• 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. During the second quarter 2023, due to positive trends the Corporation lowered the probability weights assigned to the pessimistic scenario and increased the probability weight assigned to the baseline scenario, prompting a reserve release of $5.8 million. The baseline scenario continues to be assigned the highest probability, followed by the pessimistic scenario, and then the optimistic scenario.

• The 2023 annualized GDP growth in the baseline scenario stands at 1.5% and 1.6% for Puerto Rico and the United States, respectively, compared to 2.1% and 1.3% in the previous quarter. The 2023 forecasted average unemployment rate for Puerto Rico improved to 6.3% from 6.9% in the previous forecast, while in the United States unemployment levels remained stable at 3.6%, compared to 3.5% in the previous forecast.

• The Corporation’s ratio of the ACL to loans held-in-portfolio was 2.12% in the second quarter of 2023, compared to 2.13% in the previous quarter. The ratio of the ACL to NPLs held-in-portfolio stood at 181.6%, compared to 167.1% in the previous quarter.

• The provision for credit losses for the loan portfolios for the second quarter of 2023 was an expense of $35.7 million, compared to an expense of $47.1 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 $28.4 million, compared to an expense of $45.2 million in the previous quarter, while the provision for PB was an expense of $7.3 million, compared to an expense of $1.9 million in the previous 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)	30-Jun-23		31-Mar-23		30-Jun-22
Non-performing loans held-in-portfolio	$385,504		$412,383		$477,924
Other real estate owned (“OREO”)	86,216		91,721		92,137
Total non-performing assets	$471,720		$504,104		$570,061
Net charge-offs (recoveries) for the quarter	$23,990		$32,813		$6,073
Ratios:
Loans held-in-portfolio	$33,030,922		$32,338,373		$30,370,936
Non-performing loans held-in-portfolio to loans held-in-portfolio	1.17%		1.28%		1.57%
Allowance for credit losses to loans held-in-portfolio	2.12		2.13		2.24
Allowance for credit losses to non-performing loans, excluding loans held-for-sale	181.63		167.11		142.65
Refer to Table M for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios
(Unaudited)		Quarters ended						Six months ended
(In thousands)		30-Jun-23		31-Mar-23		30-Jun-22		30-Jun-23		30-Jun-22
Provision for credit losses (benefit) - loan portfolios:
BPPR		$28,379		$45,203		$9,128		$73,582		$(3,533)
Popular U.S.		7,282		1,943		733		9,225		(1,011)
Total provision for credit losses (benefit) - loan portfolios		$35,661		$47,146		$9,861		$82,807		$(4,544)

Credit Quality by Segment
(Unaudited)
(In thousands)		Quarters ended
BPPR		30-Jun-23		31-Mar-23		30-Jun-22
Provision for credit losses - loan portfolios		$28,379		$45,203		$9,128
Net charge-offs		18,687		31,464		5,332
Total non-performing loans held-in-portfolio		352,339		378,979		444,831
Allowance / loans held-in-portfolio		2.58%		2.57%		2.70%
Allowance / non-performing loans held-in-portfolio		169.19%		154.89%		130.52%
		Quarters ended
Popular U.S.		30-Jun-23		31-Mar-23		30-Jun-22
Provision for credit losses - loan portfolios		$7,282		$1,943		$733
Net charge-offs		5,303		1,349		741
Total non-performing loans held-in-portfolio		33,165		33,404		33,093
Allowance / loans held-in-portfolio		1.05%		1.07%		1.14%
Allowance / non-performing loans held-in-portfolio		313.86%		305.69%		305.72%

Financial Condition Highlights
(Unaudited)
(In thousands)			30-Jun-23		31-Mar-23		30-Jun-22
Cash and money market investments			$9,070,118		$6,560,301		$10,215,946
Investment securities			25,874,316		25,951,936		28,138,453
Loans			33,030,922		32,338,373		30,370,936
Total assets			70,838,266		67,675,759		71,501,931
Deposits			64,004,818		60,953,888		65,327,664
Borrowings			1,427,254		1,402,626		959,135
Total liabilities			66,273,257		63,205,034		67,208,582
Stockholders’ equity			4,565,009		4,470,725		4,293,349

Total assets amounted to $70.8 billion at June 30, 2023, an increase of $3.2 billion from the first quarter of 2023, driven by:

• an increase in overnight FED fund balances of $2.5 billion, mainly due to higher deposits as discussed below;

• an increase in securities available-for-sale (“AFS”) of $69.1 million, mainly due to a net increase of $333.2 million in U.S. Treasury Securities balances, offset by repayment and maturities of mortgage-backed securities and collateralized mortgage obligations and higher unrealized losses in the portfolio; and

• an increase in loans held-in-portfolio of $692.5 million reflected across all portfolios in BPPR, net of a transfer to held for sale of a $45.9 million private label credit card portfolio, and an increase in commercial and construction loans at PB, offset in part by a decrease in its mortgage and consumer loans portfolio;

partially offset by:

• a decrease in securities held-to-maturity (“HTM”) of $151.8 million driven by a decrease of $200.0 million in U.S. Treasury securities as a result of maturities, partially offset by the amortization of $42.9 million of the discount related to U.S. Treasury securities previously reclassified from the available-for-sale to HTM, which has an offsetting unrealized loss included within other comprehensive income that is also being accreted, resulting in a neutral effect to earnings.

Total liabilities increased by $3.1 billion from the first quarter of 2023, driven by:

• an increase of $3.1 billion in deposits, mainly in Puerto Rico public sector accounts and time deposits and savings accounts at PB, partially offset by a decrease in non-interest bearing deposits.

Stockholders' equity increased by $94.3 million from the first quarter of 2023, principally due to net income for the quarter of $151.2 million and the amortization of the unrealized losses from the securities reclassified to HTM of $34.3 million, partially offset by the after-tax impact of the increase in net unrealized losses in the portfolio of AFS securities of $69.9 million and dividends to common stockholders during the quarter.

Common Equity Tier - 1 ratio (“CET1”), common equity per share and tangible book value per share were 16.87%, $63.00 and $51.37, respectively, at June 30, 2023, compared to 16.73%, $61.82 and $50.15 at March 31, 2023. Refer to Table A for capital ratios.

During the second quarter of 2023, the Corporation’s available liquidity increased to $20.1 billion from $18.3 billion on March 31, 2023. Refer to Table I for additional information on the Corporation’s liquidity sources.

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 potential factors include Popular’s ability to successfully execute its transformation initiative, including, but not limited to, achieving projected earnings, efficiencies and return on tangible common equity and accurately anticipating costs and expenses associated therewith, imposition of FDIC special assessments, changes to regulatory capital, liquidity and resolution-related requirements applicable to financial institutions in response to recent developments affecting the banking sector and the impact of bank failures or adverse developments at other banks and related negative media coverage of the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions, and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, are generally intended to identify forward-looking statements.

More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Form 10-K for the year ended December 31, 2022, in our Form 10-Q for the quarter ended March 31, 2023 and in our Form 10-Q for the quarter ended June 30, 2023 to be filed with the Securities and Exchange Commission. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.

About Popular, Inc.

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

Conference Call

Popular will hold a conference call to discuss its financial results today, Wednesday, July 26, 2023 at 11:00 a.m. Eastern Time. The call will be broadcast live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 1-833-470-1428 (Toll Free) or 1-404-975-4839 (Local). The dial-in access code is 974981.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Friday, August 25, 2023. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 254603.

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 2023 Earnings Release

Table A - Selected Ratios and Other Information

Table B - Consolidated Statement of Operations

Table C - Consolidated Statement of Financial Condition

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

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

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

Table G - Mortgage Banking Activities and Other Service Fees

Table H - Loans and Deposits

Table I - Liquidity Sources, Deposits and Borrowings

Table J - Loan Delinquency - BPPR Operations

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

Table L - Loan Delinquency - Consolidated

Table M - Non-Performing Assets

Table N - Activity in Non-Performing Loans

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

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

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

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

Table S - Reconciliation to GAAP Financial Measures

POPULAR, INC.
Financial Supplement to Second Quarter 2023 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
	Quarters ended			Six months ended
	30-Jun-23	31-Mar-23	30-Jun-22	30-Jun-23	30-Jun-22
Basic EPS	$2.10	$2.22	$2.77	$4.32	$5.46
Diluted EPS	$2.10	$2.22	$2.77	$4.32	$5.46
Average common shares outstanding	71,690,396	71,541,778	76,171,784	71,616,498	77,301,469
Average common shares outstanding - assuming dilution	71,709,203	71,606,196	76,286,883	71,664,303	77,426,274
Common shares outstanding at end of period	72,103,969	71,965,984	76,576,397	72,103,969	76,576,397
Market value per common share	$60.52	$57.41	$76.93	$60.52	$76.93
Market capitalization - (In millions)	$4,364	$4,132	$5,891	$4,364	$5,891
Return on average assets	0.85%	0.93%	1.17%	0.89%	1.15%
Return on average common equity	9.26%	10.00%	14.58%	9.63%	14.48%
Net interest margin (non-taxable equivalent basis)	3.14%	3.22%	3.09%	3.18%	2.92%
Net interest margin (taxable equivalent basis) -non-GAAP	3.29%	3.46%	3.45%	3.37%	3.24%
Common equity per share	$63.00	$61.82	$55.78	$63.00	$55.78
Tangible common book value per common share (non-GAAP) [1]	$51.37	$50.15	$46.18	$51.37	$46.18
Tangible common equity to tangible assets (non-GAAP) [1]	5.29%	5.40%	5.00%	5.29%	5.00%
Return on average tangible common equity [1]	10.63%	11.51%	16.70%	11.06%	16.55%
Tier 1 capital	16.93%	16.79%	16.46%	16.93%	16.46%
Total capital	18.74%	18.61%	18.29%	18.74%	18.29%
Tier 1 leverage	8.40%	8.37%	7.56%	8.40%	7.56%
Common Equity Tier 1 capital	16.87%	16.73%	16.39%	16.87%	16.39%
[1] Refer to Table S for reconciliation to GAAP financial measures.

POPULAR, INC.
Financial Supplement to Second Quarter 2023 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
	Quarters ended		Variance	Quarter ended	Variance	Six months ended
			Q2 2023		Q2 2023
(In thousands, except per share information)	30-Jun-23	31-Mar-23	vs. Q1 2023	30-Jun-22	vs. Q2 2022	30-Jun-23	30-Jun-22
Interest income:
Loans	$570,120	$541,210	$28,910	$446,245	$123,875	$1,111,330	$873,036
Money market investments	100,775	65,724	35,051	23,742	77,033	166,499	30,206
Investment securities	123,112	132,088	(8,976)	101,774	21,338	255,200	198,240
Total interest income	794,007	739,022	54,985	571,761	222,246	1,533,029	1,101,482
Interest expense:
Deposits	243,488	193,215	50,273	27,827	215,661	436,703	52,610
Short-term borrowings	1,624	2,885	(1,261)	248	1,376	4,509	328
Long-term debt	17,227	11,266	5,961	9,824	7,403	28,493	20,370
Total interest expense	262,339	207,366	54,973	37,899	224,440	469,705	73,308
Net interest income	531,668	531,656	12	533,862	(2,194)	1,063,324	1,028,174
Provision for credit losses (benefit)	37,192	47,637	(10,445)	9,362	27,830	84,829	(6,138)
Net interest income after provision for credit losses (benefit)	494,476	484,019	10,457	524,500	(30,024)	978,495	1,034,312
Service charges on deposit accounts	37,781	34,678	3,103	41,809	(4,028)	72,459	82,522
Other service fees	94,265	90,076	4,189	81,451	12,814	184,341	158,585
Mortgage banking activities	2,316	7,400	(5,084)	13,575	(11,259)	9,716	26,440
Net gain (loss), including impairment, on equity securities	1,384	1,100	284	(4,109)	5,493	2,484	(6,203)
Net gain (loss) on trading account debt securities	35	378	(343)	51	(16)	413	(672)
Adjustments to indemnity reserves on loans sold	(456)	612	(1,068)	170	(626)	156	(575)
Other operating income	25,146	27,717	(2,571)	24,464	682	52,863	52,006
Total non-interest income	160,471	161,961	(1,490)	157,411	3,060	322,432	312,103
Operating expenses:
Personnel costs
Salaries	124,901	125,393	(492)	101,847	23,054	250,294	200,520
Commissions, incentives and other bonuses	27,193	31,162	(3,969)	38,589	(11,396)	58,355	74,110
Pension, postretirement and medical insurance	17,508	15,378	2,130	13,730	3,778	32,886	26,513
Other personnel costs, including payroll taxes	21,866	26,827	(4,961)	14,622	7,244	48,693	34,641
Total personnel costs	191,468	198,760	(7,292)	168,788	22,680	390,228	335,784
Net occupancy expenses	27,165	26,039	1,126	26,214	951	53,204	50,937
Equipment expenses	9,561	8,412	1,149	8,674	887	17,973	17,063
Other taxes	16,409	16,291	118	15,780	629	32,700	31,495
Professional fees	50,132	33,431	16,701	38,430	11,702	83,563	75,222
Technology and software expenses	72,354	68,559	3,795	74,761	(2,407)	140,913	145,296
Processing and transactional services
Credit and debit cards	11,584	12,550	(966)	10,173	1,411	24,134	21,645
Other processing and transactional services	25,217	21,359	3,858	20,864	4,353	46,576	40,345
Total processing and transactional services	36,801	33,909	2,892	31,037	5,764	70,710	61,990
Communications	4,175	4,088	87	3,497	678	8,263	7,170
Business promotion
Rewards and customer loyalty programs	16,626	12,348	4,278	13,929	2,697	28,974	23,950
Other business promotion	8,457	6,523	1,934	7,424	1,033	14,980	12,486
Total business promotion	25,083	18,871	6,212	21,353	3,730	43,954	36,436
FDIC deposit insurance	6,803	8,865	(2,062)	6,463	340	15,668	13,835
Other real estate owned (OREO) income	(3,314)	(1,694)	(1,620)	(7,806)	4,492	(5,008)	(10,519)
Other operating expenses
Operational losses	4,280	6,800	(2,520)	4,061	219	11,080	15,886
All other	18,572	17,561	1,011	14,231	4,341	36,133	26,336
Total other operating expenses	22,852	24,361	(1,509)	18,292	4,560	47,213	42,222
Amortization of intangibles	795	795	-	795	-	1,590	1,686
Total operating expenses	460,284	440,687	19,597	406,278	54,006	900,971	808,617
Income before income tax	194,663	205,293	(10,630)	275,633	(80,970)	399,956	537,798
Income tax expense	43,503	46,314	(2,811)	64,212	(20,709)	89,817	114,691
Net income	$151,160	$158,979	$(7,819)	$211,421	$(60,261)	$310,139	$423,107
Net income applicable to common stock	$150,807	$158,626	$(7,819)	$211,068	$(60,261)	$309,433	$422,401
Net income per common share - basic	$2.10	$2.22	$(0.12)	$2.77	$(0.67)	$4.32	$5.46
Net income per common share - diluted	$2.10	$2.22	$(0.12)	$2.77	$(0.67)	$4.32	$5.46
Dividends Declared per Common Share	$0.55	$0.55	$-	$0.55	$-	$1.10	$1.10

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
							Variance
							Q2 2023 vs.
(In thousands)	30-Jun-23		31-Mar-23		30-Jun-22		Q1 2023
Assets:
Cash and due from banks	$476,642		$462,013		$528,590		$14,629
Money market investments	8,593,476		6,098,288		9,687,356		2,495,188
Trading account debt securities, at fair value	29,160		29,839		32,317		(679	)
Debt securities available-for-sale, at fair value	17,242,217		17,173,128		26,266,251		69,089
Debt securities held-to-maturity, at amortized cost	8,410,566		8,563,052		1,664,015		(152,486	)
Less: Allowance for credit losses	6,145		6,792		7,495		(647	)
Total debt securities held-to-maturity, net	8,404,421		8,556,260		1,656,520		(151,839	)
Equity securities	192,373		185,917		175,870		6,456
Loans held-for-sale, at lower of cost or fair value	55,421		11,181		28,546		44,240
Loans held-in-portfolio	33,354,999		32,645,023		30,643,443		709,976
Less: Unearned income	324,077		306,650		272,507		17,427
Allowance for credit losses	700,200		689,120		681,750		11,080
Total loans held-in-portfolio, net	32,330,722		31,649,253		29,689,186		681,469
Premises and equipment, net	523,927		508,007		490,152		15,920
Other real estate	86,216		91,721		92,137		(5,505	)
Accrued income receivable	239,998		239,815		216,780		183
Mortgage servicing rights, at fair value	121,249		127,475		129,877		(6,226	)
Other assets	1,703,662		1,703,285		1,773,523		377
Goodwill	827,428		827,428		720,293		-
Other intangible assets	11,354		12,149		14,533		(795	)
Total assets	$70,838,266		$67,675,759		$71,501,931		$3,162,507
Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing	$15,316,552		$15,940,850		$16,663,259		$(624,298	)
Interest bearing	48,688,266		45,013,038		48,664,405		3,675,228
Total deposits	64,004,818		60,953,888		65,327,664		3,050,930
Assets sold under agreements to repurchase	123,205		123,499		70,925		(294	)
Notes payable	1,304,049		1,279,127		888,210		24,922
Other liabilities	841,185		848,520		921,783		(7,335	)
Total liabilities	66,273,257		63,205,034		67,208,582		3,068,223
Stockholders’ equity:
Preferred stock	22,143		22,143		22,143		-
Common stock	1,047		1,047		1,046		-
Surplus	4,795,581		4,792,619		4,576,478		2,962
Retained earnings	4,093,284		3,982,140		3,311,951		111,144
Treasury stock	(2,018,611	)	(2,025,399	)	(1,665,253	)	6,788
Accumulated other comprehensive loss, net of tax	(2,328,435	)	(2,301,825	)	(1,953,016	)	(26,610	)
Total stockholders’ equity	4,565,009		4,470,725		4,293,349		94,284
Total liabilities and stockholders’ equity	$70,838,266		$67,675,759		$71,501,931		$3,162,507

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP)
For the quarters ended June 30, 2023 and March 31, 2023
(Unaudited)
																									Variance
	Average Volume							Average Yields / Costs									Interest								Attributable to
	30-Jun-23		31-Mar-23	Variance				30-Jun-23		31-Mar-23		Variance						30-Jun-23		31-Mar-23		Variance			Rate			Volume
	(In millions)																	(In thousands)
$	7,851	$	5,736	$	2,115			5.15	%	4.65	%	0.50		%		Money market investments	$	100,776	$	65,724	$	35,052		$	8,626		$	26,426
	27,362		28,862		(1,500	)		2.00		2.22		(0.22	)			Investment securities [1]		136,408		158,914		(22,506	)		(14,842	)		(7,664	)
	32		31		1			4.65		4.47		0.18				Trading securities		370		338		32			18			14
	35,245		34,629		616			2.70		2.63		0.07				Total money market, investment and trading securities		237,554		224,976		12,578			(6,198	)		18,776
																Loans:
	16,237		15,761		476			6.52		6.32		0.20				Commercial		263,934		245,469		18,465			10,915			7,550
	737		732		5			8.95		8.40		0.55				Construction		16,442		15,155		1,287			1,187			100
	1,632		1,588		44			6.30		6.12		0.18				Leasing		25,711		24,282		1,429			756			673
	7,409		7,388		21			5.47		5.46		0.01				Mortgage		101,304		100,773		531			243			288
	3,075		3,020		55			13.21		12.85		0.36				Consumer		101,295		95,715		5,580			3,684			1,896
	3,593		3,559		34			8.31		8.14		0.17				Auto		74,467		71,407		3,060			2,378			682
	32,683		32,048		635			7.15		6.97		0.18				Total loans		583,153		552,801		30,352			19,163			11,189
$	67,928	$	66,677	$	1,251			4.84	%	4.72	%	0.12		%		Total earning assets	$	820,707	$	777,777	$	42,930		$	12,965		$	29,965
																Interest bearing deposits:
$	24,230	$	23,313	$	917			2.91	%	2.52	%	0.39		%		NOW and money market [2]	$	175,640	$	144,970	$	30,670		$	22,412		$	8,258
	14,763		15,029		(266	)		0.66		0.47		0.19				Savings		24,446		17,443		7,003			7,461			(458	)
	7,715		7,099		616			2.26		1.76		0.50				Time deposits		43,402		30,802		12,600			8,255			4,345
	46,708		45,441		1,267			2.09		1.72		0.37				Total interest bearing deposits		243,488		193,215		50,273			38,128			12,145
	15,480		15,704		(224	)										Non-interest bearing demand deposits
	62,188		61,145		1,043			1.57		1.28		0.29				Total deposits		243,488		193,215		50,273			38,128			12,145
	125		247		(122	)		5.19		4.74		0.45				Short-term borrowings		1,624		2,885		(1,261	)		341			(1,602	)
	1,299		947		352			5.33		4.78		0.55				Other medium and long-term debt		17,227		11,266		5,961			(372	)		6,333
	48,132		46,635		1,497			2.19		1.80		0.39				Total interest bearing liabilities (excluding demand deposits)		262,339		207,366		54,973			38,097			16,876
	4,316		4,338		(22	)										Other sources of funds
$	67,928	$	66,677	$	1,251			1.55	%	1.26	%	0.29		%		Total source of funds		262,339		207,366		54,973			38,097			16,876
								3.29	%	3.46	%	(0.17	)	%		Net interest margin/ income on a taxable equivalent basis (Non-GAAP)		558,368		570,411		(12,043	)	$	(25,132	)	$	13,089
								2.65	%	2.92	%	(0.27	)	%		Net interest spread
																Taxable equivalent adjustment		26,700		38,755		(12,055	)
																Net interest margin/ income
								3.14	%	3.22	%	(0.08	)	%		non-taxable equivalent basis (GAAP)	$	531,668	$	531,656	$	12
Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the change in each category.
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity.
[2] Includes interest bearing demand deposits corresponding to certain government entities in Puerto Rico.

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP)
For the quarters ended June 30, 2023 and June 30, 2022
(Unaudited)
																									Variance
	Average Volume							Average Yields / Costs									Interest								Attributable to
	30-Jun-23		30-Jun-22	Variance				30-Jun-23		30-Jun-22		Variance						30-Jun-23		30-Jun-22		Variance			Rate			Volume
	(In millions)																	(In thousands)
$	7,851	$	11,513	$	(3,662	)		5.15	%	0.83	%	4.32		%		Money market investments	$	100,776	$	23,742	$	77,034		$	86,849		$	(9,815	)
	27,362		27,748		(386	)		2.00		2.18		(0.18	)			Investment securities [1]		136,408		150,890		(14,482	)		(12,105	)		(2,377	)
	32		65		(33	)		4.65		6.66		(2.01	)			Trading securities		370		1,089		(719	)		(266	)		(453	)
	35,245		39,326		(4,081	)		2.70		1.79		0.91				Total money market, investment and trading securities		237,554		175,721		61,833			74,478			(12,645	)
																Loans:
	16,237		14,227		2,010			6.52		5.16		1.36				Commercial		263,934		183,042		80,892			52,659			28,233
	737		781		(44	)		8.95		5.71		3.24				Construction		16,442		11,116		5,326			5,997			(671	)
	1,632		1,445		187			6.30		5.91		0.39				Leasing		25,711		21,352		4,359			1,473			2,886
	7,409		7,294		115			5.47		5.33		0.14				Mortgage		101,304		97,137		4,167			2,621			1,546
	3,075		2,654		421			13.21		11.33		1.88				Consumer		101,295		74,932		26,363			13,174			13,189
	3,593		3,499		94			8.31		8.04		0.27				Auto		74,467		70,145		4,322			2,414			1,908
	32,683		29,900		2,783			7.15		6.14		1.01				Total loans		583,153		457,724		125,429			78,338			47,091
$	67,928	$	69,226	$	(1,298	)		4.84	%	3.67	%	1.17		%		Total earning assets	$	820,707	$	633,445	$	187,262		$	152,816		$	34,446
																Interest bearing deposits:
$	24,230	$	24,897	$	(667	)		2.91	%	0.13	%	2.78		%		NOW and money market [2]	$	175,640	$	8,301	$	167,339		$	168,466		$	(1,127	)
	14,763		16,363		(1,600	)		0.66		0.17		0.49				Savings		24,446		6,901		17,545			19,301			(1,756	)
	7,715		7,044		671			2.26		0.72		1.54				Time deposits		43,402		12,625		30,777			25,715			5,062
	46,708		48,304		(1,596	)		2.09		0.23		1.86				Total interest bearing deposits		243,488		27,827		215,661			213,482			2,179
	15,480		16,254		(774	)										Non-interest bearing demand deposits
	62,188		64,558		(2,370	)		1.57		0.17		1.40				Total deposits		243,488		27,827		215,661			213,482			2,179
	125		126		(1	)		5.19		0.79		4.40				Short-term borrowings		1,624		248		1,376			1,420			(44	)
	1,299		917		382			5.33		4.30		1.03				Other medium and long-term debt		17,227		9,824		7,403			513			6,890
	48,132		49,347		(1,215	)		2.19		0.31		1.88				Total interest bearing liabilities (excluding demand deposits)		262,339		37,899		224,440			215,415			9,025
	4,316		3,625		691											Other sources of funds
$	67,928	$	69,226	$	(1,298	)		1.55	%	0.22	%	1.33		%		Total source of funds		262,339		37,899		224,440			215,415			9,025
								3.29	%	3.45	%	(0.16	)	%		Net interest margin/ income on a taxable equivalent basis (Non-GAAP)		558,368		595,546		(37,178	)	$	(62,599	)	$	25,421
								2.65	%	3.36	%	(0.71	)	%		Net interest spread
																Taxable equivalent adjustment		26,700		61,684		(34,984	)
								3.14	%	3.09	%	0.05		%		Net interest margin/ income non-taxable equivalent basis (GAAP)	$	531,668	$	533,862	$	(2,194	)
Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the change in each category.
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity.
[2] Includes interest bearing demand deposits corresponding to certain government entities in Puerto Rico.

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table F - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE
(Unaudited)
																									Variance
	Average Volume							Average Yields / Costs									Interest								Attributable to
	30-Jun-23		30-Jun-22	Variance				30-Jun-23		30-Jun-22		Variance						30-Jun-23		30-Jun-22		Variance			Rate			Volume
	(In millions)																	(In thousands)
$	6,800	$	13,129	$	(6,329	)		4.94	%	0.46	%	4.48		%		Money market investments	$	166,500	$	30,206	$	136,294		$	157,542		$	(21,248	)
	28,108		28,107		1			2.11		2.06		0.05				Investment securities [1]		295,322		288,241		7,081			8,948			(1,867	)
	31		68		(37	)		4.56		6.27		(1.71	)			Trading securities		708		2,107		(1,399	)		(470	)		(929	)
	34,939		41,304		(6,365	)		2.67		1.56		1.11				Total money market, investment and trading securities		462,530		320,554		141,976			166,020			(24,044	)
																Loans:
	16,000		13,986		2,014			6.42		5.12		1.30				Commercial		509,403		355,171		154,232			98,409			55,823
	734		754		(20	)		8.68		5.58		3.10				Construction		31,598		20,874		10,724			11,283			(559	)
	1,610		1,419		191			6.21		5.93		0.28				Leasing		49,993		42,071		7,922			2,051			5,871
	7,398		7,341		57			5.46		5.28		0.18				Mortgage		202,076		193,905		8,171			6,637			1,534
	3,049		2,595		454			13.03		11.27		1.76				Consumer		197,010		144,994		52,016			24,268			27,748
	3,576		3,480		96			8.23		8.08		0.15				Auto		145,874		139,397		6,477			2,574			3,903
	32,367		29,575		2,792			7.06		6.10		0.96				Total loans		1,135,954		896,412		239,542			145,222			94,320
$	67,306	$	70,879	$	(3,573	)		4.78	%	3.45	%	1.33		%		Total earning assets	$	1,598,484	$	1,216,966	$	381,518		$	311,242		$	70,276
																Interest bearing deposits:
$	23,774	$	26,584	$	(2,810	)		2.72	%	0.12	%	2.60		%		NOW and money market [2]	$	320,610	$	15,624	$	304,986		$	307,891		$	(2,905	)
	14,895		16,398		(1,503	)		0.57		0.17		0.40				Savings		41,889		13,464		28,425			31,595			(3,170	)
	7,409		6,891		518			2.02		0.69		1.33				Time deposits		74,204		23,522		50,682			42,149			8,533
	46,078		49,873		(3,795	)		1.91		0.21		1.70				Total interest bearing deposits		436,703		52,610		384,093			381,635			2,458
	15,592		16,198		(606	)										Non-interest bearing demand deposits
	61,670		66,071		(4,401	)		1.43		0.16		1.27				Total deposits		436,703		52,610		384,093			381,635			2,458
	186		109		77			4.89		0.61		4.28				Short-term borrowings		4,509		328		4,181			3,797			384
	1,124		965		159			5.10		4.25		0.85				Other medium and long-term debt		28,493		20,370		8,123			4,895			3,228
	47,388		50,947		(3,559	)		2.00		0.29		1.71				Total interest bearing liabilities (excluding demand deposits)		469,705		73,308		396,397			390,327			6,070
	4,326		3,734		592											Other sources of funds
$	67,306	$	70,879	$	(3,573	)		1.41	%	0.21	%	1.20		%		Total source of funds		469,705		73,308		396,397			390,327			6,070
								3.37	%	3.24	%	0.13		%		Net interest margin/ income on a taxable equivalent basis (Non-GAAP)		1,128,779		1,143,658		(14,879	)	$	(79,085	)	$	64,206
								2.78	%	3.16	%	(0.38	)	%		Net interest spread
																Taxable equivalent adjustment		65,455		115,484		(50,029	)
								3.18	%	2.92	%	0.26		%		Net interest margin/ income non-taxable equivalent basis (GAAP)	$	1,063,324	$	1,028,174	$	35,150
Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the change in each category.
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity.
[2] Includes interest bearing demand deposits corresponding to certain government entities in Puerto Rico.

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table G - Mortgage Banking Activities and Other Service Fees
(Unaudited)
Mortgage Banking Activities
	Quarters ended						Variance				Six months ended				Variance
(In thousands)	30-Jun-23		31-Mar-23		30-Jun-22		Q2 2023 vs.Q1 2023		Q2 2023 vs.Q2 2022		30-Jun-23		30-Jun-22		2023 vs. 2022
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees	$8,369		$8,689		$9,186		$(320	)	$(817	)	$17,058		$18,509		$(1,451	)
Mortgage servicing rights fair value adjustments	(6,216	)	(1,376	)	2,257		(4,840	)	(8,473	)	(7,592	)	3,345		(10,937	)
Total mortgage servicing fees, net of fair value adjustments	2,153		7,313		11,443		(5,160	)	(9,290	)	9,466		21,854		(12,388	)
Net (loss) gain on sale of loans, including valuation on loans held-for-sale	(61	)	263		36		(324	)	(97	)	202		(1,498	)	1,700
Trading account profit (loss):
Unrealized gains (loss) on outstanding derivative positions	246		(131	)	(2	)	377		248		115		-		115
Realized gains on closed derivative positions	111		56		2,430		55		(2,319	)	167		6,565		(6,398	)
Total trading account profit (loss)	357		(75	)	2,428		432		(2,071	)	282		6,565		(6,283	)
Losses on repurchased loans, including interest advances	(133	)	(101	)	(332	)	(32	)	199		(234	)	(481	)	247
Total mortgage banking activities	$2,316		$7,400		$13,575		$(5,084	)	$(11,259	)	$9,716		$26,440		$(16,724	)
Other Service Fees
	Quarters ended						Variance				Six months ended				Variance
(In thousands)	30-Jun-23		31-Mar-23		30-Jun-22		Q2 2023 vs.Q1 2023		Q2 2023 vs.Q2 2022		30-Jun-23		30-Jun-22		2023 vs. 2022
Other service fees:
Debit card fees	$13,600		$13,166		$12,882		$434		$718		$26,766		$24,661		$2,105
Insurance fees	14,625		13,873		12,017		752		2,608		28,498		26,173		2,325
Credit card fees	42,644		40,498		38,155		2,146		4,489		83,142		71,797		11,345
Sale and administration of investment products	6,076		6,558		6,017		(482	)	59		12,634		11,808		826
Trust fees	6,600		5,775		6,143		825		457		12,375		12,070		305
Other fees	10,720		10,206		6,237		514		4,483		20,926		12,076		8,850
Total other service fees	$94,265		$90,076		$81,451		$4,189		$12,814		$184,341		$158,585		$25,756

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table H - Loans and Deposits
(Unaudited)
Loans - Ending Balances
							Variance
(In thousands)	30-Jun-23		31-Mar-23		30-Jun-22		Q2 2023 vs.Q1 2023			Q2 2023 vs.Q2 2022
Loans held-in-portfolio:
Commercial	$	16,368,300	$	16,005,261	$	14,545,301	$	363,039		$	1,822,999
Construction		819,903		698,996		790,920		120,907			28,983
Leasing		1,661,523		1,614,344		1,480,222		47,179			181,301
Mortgage		7,449,078		7,405,907		7,261,955		43,171			187,123
Auto		3,565,533		3,517,940		3,489,976		47,593			75,557
Consumer		3,166,585		3,095,925		2,802,562		70,660			364,023
Total loans held-in-portfolio	$	33,030,922	$	32,338,373	$	30,370,936	$	692,549		$	2,659,986
Loans held-for-sale:
Mortgage	$	9,509	$	11,181	$	28,546	$	(1,672	)	$	(19,037	)
Consumer		45,912		-		-		45,912			45,912
Total loans held-for-sale	$	55,421	$	11,181	$	28,546	$	44,240		$	26,875
Total loans	$	33,086,343	$	32,349,554	$	30,399,482	$	736,789		$	2,686,861
Deposits - Ending Balances
							Variance
(In thousands)	30-Jun-23		31-Mar-23		30-Jun-22		Q2 2023 vs. Q1 2023			Q2 2023 vs.Q2 2022
Demand deposits [1]	$	27,690,840	$	26,191,672	$	27,798,243	$	1,499,168		$	(107,403	)
Savings, NOW and money market deposits (non-brokered)		27,539,343		26,622,020		29,672,655		917,323			(2,133,312	)
Savings, NOW and money market deposits (brokered)		772,783		734,069		761,244		38,714			11,539
Time deposits (non-brokered)		7,231,840		6,891,051		6,896,786		340,789			335,054
Time deposits (brokered CDs)		770,012		515,076		198,736		254,936			571,276
Total deposits	$	64,004,818	$	60,953,888	$	65,327,664	$	3,050,930		$	(1,322,846	)
[1] Includes interest and non-interest bearing demand deposits.

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table I - Liquidity Sources, Deposits and Borrowings
(Unaudited)
Liquidity Sources	30-Jun-23										31-Mar-23
(In thousands)	BPPR			Popular U.S.				Total			BPPR				Popular U.S.			Total
Unpledged securities and unused funding sources:
Money market (excess funds at the Federal Reserve Bank)	$	7,664,753		$	922,564			$	8,587,317		$	5,181,531			$	909,613		$	6,091,144
Unpledged securities		4,743,373			259,038				5,002,411			7,690,887				273,980			7,964,867
FHLB borrowing capacity		2,044,073			1,376,597				3,420,670			1,623,246				1,127,316			2,750,562
Discount window of the Federal Reserve Bank borrowing capacity		1,438,473			1,688,795				3,127,268			1,132,411				331,753			1,464,164
Total available liquidity	$	15,890,672		$	4,246,994			$	20,137,666		$	15,628,075			$	2,642,662		$	18,270,737
Deposits
	30-Jun-23
															Popular, Inc.
(In thousands)	BPPR			% of Total				Popular U.S.			% of Total				(Consolidated)			% of Total
Deposits:
Deposits balances under $250,000 [1]	$	24,393,322			44	%		$	6,454,716			64	%		$	30,848,038			48	%
Transactional deposits balances over $250,000		9,263,514			17	%			2,068,584			21	%			11,332,098			18	%
Time deposits balances over $250,000		2,089,714			4	%			276,822			3	%			2,366,536			4	%
Foreign deposits		457,218			1	%			-			-	%			457,218			1
Collateralized public funds		18,716,276			34	%			284,652			3	%			19,000,928			30	%
Intercompany deposits		157,213			-	%			932,834			9	%			-			-	%
Total deposits	$	55,077,257			100	%		$	10,017,608			100	%		$	64,004,818			100	%
[1] Includes the first $250,000 in balances of transactional and time deposit accounts with balances in excess of $250,000.
	31-Mar-23
															Popular, Inc.
(In thousands)	BPPR			% of Total				Popular U.S.			% of Total				(Consolidated)			% of Total
Deposits
Deposits balances under $250,000 [1]	$	24,823,608			47	%		$	5,979,010			62	%		$	30,802,618			51	%
Transactional deposits balances over $250,000		9,503,832			18	%			2,151,732			22	%			11,655,564			19	%
Time deposits balances over $250,000		1,869,810			4	%			255,322			3	%			2,125,132			3	%
Foreign deposits		412,444			1	%						-	%			412,444			1	%
Collateralized public funds		15,712,622			30	%			245,508			3	%			15,958,130			26	%
Intercompany deposits		134,110			-	%			986,943			10	%			-			-	%
Total deposits	$	52,456,426			100	%		$	9,618,515			100	%		$	60,953,888			100	%
[1] Includes the first $250,000 in balances of transactional and time deposit accounts with balances in excess of $250,000.

Borrowings	30-Jun-23												31-Mar-23
							All other												All other
(In thousands)	BPPR			Popular U.S.			entities			Total			BPPR			Popular U.S.			entities			Total
Assets sold under agreements to repurchase	$	25,538		$	97,667		$	-		$	123,205		$	25,158		$	98,341		$	-		$	123,499
FHLB borrowings		82,292			330,340			-			412,632			82,292			305,990			-			388,282
Federal discount window / bank term funding program (BTFP)		-			-			-			-			-			-			-			-
Notes payable
Unsecured senior debt securities maturing on September 2023		-			-			299,743			299,743			-			-			299,426			299,426
Unsecured senior debt securities maturing on March 2028		-			-			393,342			393,342			-			-			393,093			393,093
Junior subordinated deferrable interest debentures		-			-			198,332			198,332			-			-			198,326			198,326
Total borrowings	$	107,830		$	428,007		$	891,417		$	1,427,254		$	107,450		$	404,331		$	890,845		$	1,402,626

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table J - Loan Delinquency -BPPR Operations
(Unaudited)
30-Jun-23
BPPR
			Past due																								Past due 90 days or more
		30-59				60-89				90 days				Total													Non-accrual					Accruing
(In thousands)		days				days				or more				past due				Current				Loans HIP					loans				loans
Commercial multi-family		$	3,778			$	179			$	184			$	4,141			$	292,736			$	296,877				$	184			$	-
Commercial real estate:
Non-owner occupied			177				512				22,942				23,631				2,882,616				2,906,247					22,942				-
Owner occupied			1,241				700				35,832				37,773				1,390,285				1,428,058					35,832				-
Commercial and industrial			2,597				728				32,846				36,171				4,002,652				4,038,823					29,758				3,088
Construction			-				970				9,284				10,254				163,481				173,735					9,284				-
Mortgage			221,187				88,955				449,930				760,072				5,408,216				6,168,288					194,219				255,711
Leasing			13,160				3,811				4,743				21,714				1,639,809				1,661,523					4,743				-
Consumer:
Credit cards			9,506				6,311				14,185				30,002				1,027,370				1,057,372					-				14,185
Home equity lines of credit			-				-				-				-				2,570				2,570					-				-
Personal			14,865				11,660				17,438				43,963				1,642,003				1,685,966					17,438				-
Auto			75,879				18,422				36,204				130,505				3,435,028				3,565,533					36,204				-
Other			512				274				1,901				2,687				132,605				135,292					1,735				166
Total		$	342,902			$	132,522			$	625,489			$	1,100,913			$	22,019,371			$	23,120,284				$	352,339			$	273,150
31-Mar-23
BPPR
			Past due																								Past due 90 days or more
		30-59				60-89				90 days				Total													Non-accrual					Accruing
(In thousands)		days				days				or more				past due				Current				Loans HIP					loans				loans
Commercial multi-family		$	650			$	-			$	185			$	835			$	291,971			$	292,806				$	185			$	-
Commercial real estate:
Non-owner occupied			2,739				1,584				22,856				27,179				2,858,304				2,885,483					22,856				-
Owner occupied			21,496				-				37,779				59,275				1,438,228				1,497,503					37,779				-
Commercial and industrial			17,934				793				31,847				50,574				3,883,859				3,934,433					30,132				1,715
Construction			8,081				-				-				8,081				147,268				155,349					-				-
Mortgage			183,187				81,729				515,752				780,668				5,336,016				6,116,684					224,075				291,677
Leasing			12,301				2,605				6,103				21,009				1,593,335				1,614,344					6,103				-
Consumer:
Credit cards			7,162				5,823				12,061				25,046				1,021,129				1,046,175					-				12,061
Home equity lines of credit			-				-				-				-				2,865				2,865					-				-
Personal			14,131				8,990				17,427				40,548				1,572,370				1,612,918					17,412				15
Auto			60,324				12,684				39,516				112,524				3,405,416				3,517,940					39,516				-
Other			1,264				49				1,091				2,404				127,608				130,012					921				170
Total		$	329,269			$	114,257			$	684,617			$	1,128,143			$	21,678,369			$	22,806,512				$	378,979			$	305,638
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		$	3,128			$	179			$	(1	)		$	3,306			$	765			$	4,071				$	(1	)		$	-
Commercial real estate:
Non-owner occupied			(2,562	)			(1,072	)			86				(3,548	)			24,312				20,764					86				-
Owner occupied			(20,255	)			700				(1,947	)			(21,502	)			(47,943	)			(69,445	)				(1,947	)			-
Commercial and industrial			(15,337	)			(65	)			999				(14,403	)			118,793				104,390					(374	)			1,373
Construction			(8,081	)			970				9,284				2,173				16,213				18,386					9,284				-
Mortgage			38,000				7,226				(65,822	)			(20,596	)			72,200				51,604					(29,856	)			(35,966	)
Leasing			859				1,206				(1,360	)			705				46,474				47,179					(1,360	)			-
Consumer:
Credit cards			2,344				488				2,124				4,956				6,241				11,197					-				2,124
Home equity lines of credit			-				-				-				-				(295	)			(295	)				-				-
Personal			734				2,670				11				3,415				69,633				73,048					26				(15	)
Auto			15,555				5,738				(3,312	)			17,981				29,612				47,593					(3,312	)			-
Other			(752	)			225				810				283				4,997				5,280					814				(4	)
Total		$	13,633			$	18,265			$	(59,128	)		$	(27,230	)		$	341,002			$	313,772				$	(26,640	)		$	(32,488	)

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table K - Loan Delinquency - Popular U.S. Operations
(Unaudited)
30-Jun-23
Popular U.S.
			Past due																								Past due 90 days or more
		30-59				60-89				90 days				Total													Non-accrual					Accruing
(In thousands)		days				days				or more				past due				Current				Loans HIP					loans				loans
Commercial multi-family		$	3,137			$	-			$	418			$	3,555			$	2,031,067			$	2,034,622				$	418			$	-
Commercial real estate:
Non-owner occupied			632				-				119				751				1,837,258				1,838,009					119				-
Owner occupied			1,806				-				5,095				6,901				1,606,439				1,613,340					5,095				-
Commercial and industrial			2,464				1,738				6,155				10,357				2,201,967				2,212,324					5,978				177
Construction			-				-				-				-				646,168				646,168					-				-
Mortgage			1,101				5,435				14,577				21,113				1,259,677				1,280,790					14,577				-
Consumer:
Credit cards			-				-				-				-				17				17					-				-
Home equity lines of credit			464				49				4,252				4,765				61,105				65,870					4,252				-
Personal			2,766				1,725				2,726				7,217				203,411				210,628					2,726				-
Other			-				154				-				154				8,716				8,870					-				-
Total		$	12,370			$	9,101			$	33,342			$	54,813			$	9,855,825			$	9,910,638				$	33,165			$	177
31-Mar-23
Popular U.S.
			Past due																								Past due 90 days or more
		30-59				60-89				90 days				Total													Non-accrual					Accruing
(In thousands)		days				days				or more				past due				Current				Loans HIP					loans				loans
Commercial multi-family		$	-			$	-			$	421			$	421			$	2,043,130			$	2,043,551				$	421			$	-
Commercial real estate:
Non-owner occupied			16,033				-				207				16,240				1,748,952				1,765,192					207				-
Owner occupied			18,042				-				5,095				23,137				1,497,947				1,521,084					5,095				-
Commercial and industrial			13,779				3				5,570				19,352				2,045,857				2,065,209					5,325				245
Construction			7,165				-				-				7,165				536,482				543,647					-				-
Mortgage			22,041				1,499				14,719				38,259				1,250,964				1,289,223					14,719				-
Consumer:
Credit cards			-				-				-				-				21				21					-				-
Home equity lines of credit			496				70				4,618				5,184				61,838				67,022					4,618				-
Personal			1,900				1,259				2,505				5,664				222,487				228,151					2,505				-
Other			2				-				514				516				8,245				8,761					514				-
Total		$	79,458			$	2,831			$	33,649			$	115,938			$	9,415,923			$	9,531,861				$	33,404			$	245
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		$	3,137			$	-			$	(3	)		$	3,134			$	(12,063	)		$	(8,929	)			$	(3	)		$	-
Commercial real estate:
Non-owner occupied			(15,401	)			-				(88	)			(15,489	)			88,306				72,817					(88	)			-
Owner occupied			(16,236	)			-				-				(16,236	)			108,492				92,256					-				-
Commercial and industrial			(11,315	)			1,735				585				(8,995	)			156,110				147,115					653				(68	)
Construction			(7,165	)			-				-				(7,165	)			109,686				102,521					-				-
Mortgage			(20,940	)			3,936				(142	)			(17,146	)			8,713				(8,433	)				(142	)			-
Consumer:
Credit cards			-				-				-				-				(4	)			(4	)				-				-
Home equity lines of credit			(32	)			(21	)			(366	)			(419	)			(733	)			(1,152	)				(366	)			-
Personal			866				466				221				1,553				(19,076	)			(17,523	)				221				-
Other			(2	)			154				(514	)			(362	)			471				109					(514	)			-
Total		$	(67,088	)		$	6,270			$	(307	)		$	(61,125	)		$	439,902			$	378,777				$	(239	)		$	(68	)

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table L - Loan Delinquency - Consolidated
(Unaudited)
30-Jun-23
Popular, Inc.
		Past due																								Past due 90 days or more
	30-59				60-89				90 days				Total													Non-accrual					Accruing
(In thousands)	days				days				or more				past due				Current				Loans HIP					loans				loans
Commercial multi-family	$	6,915			$	179			$	602			$	7,696			$	2,323,803			$	2,331,499				$	602			$	-
Commercial real estate:
Non-owner occupied		809				512				23,061				24,382				4,719,874				4,744,256					23,061				-
Owner occupied		3,047				700				40,927				44,674				2,996,724				3,041,398					40,927				-
Commercial and industrial		5,061				2,466				39,001				46,528				6,204,619				6,251,147					35,736				3,265
Construction		-				970				9,284				10,254				809,649				819,903					9,284				-
Mortgage		222,288				94,390				464,507				781,185				6,667,893				7,449,078					208,796				255,711
Leasing		13,160				3,811				4,743				21,714				1,639,809				1,661,523					4,743				-
Consumer:
Credit cards		9,506				6,311				14,185				30,002				1,027,387				1,057,389					-				14,185
Home equity lines of credit		464				49				4,252				4,765				63,675				68,440					4,252				-
Personal		17,631				13,385				20,164				51,180				1,845,414				1,896,594					20,164				-
Auto		75,879				18,422				36,204				130,505				3,435,028				3,565,533					36,204				-
Other		512				428				1,901				2,841				141,321				144,162					1,735				166
Total	$	355,272			$	141,623			$	658,831			$	1,155,726			$	31,875,196			$	33,030,922				$	385,504			$	273,327
31-Mar-23
Popular, Inc.
		Past due																								Past due 90 days or more
	30-59				60-89				90 days				Total													Non-accrual					Accruing
(In thousands)	days				days				or more				past due				Current				Loans HIP					loans				loans
Commercial multi-family	$	650			$	-			$	606			$	1,256			$	2,335,101			$	2,336,357				$	606			$	-
Commercial real estate:
Non-owner occupied		18,772				1,584				23,063				43,419				4,607,256				4,650,675					23,063				-
Owner occupied		39,538				-				42,874				82,412				2,936,175				3,018,587					42,874				-
Commercial and industrial		31,713				796				37,417				69,926				5,929,716				5,999,642					35,457				1,960
Construction		15,246				-				-				15,246				683,750				698,996					-				-
Mortgage		205,228				83,228				530,471				818,927				6,586,980				7,405,907					238,794				291,677
Leasing		12,301				2,605				6,103				21,009				1,593,335				1,614,344					6,103				-
Consumer:
Credit cards		7,162				5,823				12,061				25,046				1,021,150				1,046,196					-				12,061
Home equity lines of credit		496				70				4,618				5,184				64,703				69,887					4,618				-
Personal		16,031				10,249				19,932				46,212				1,794,857				1,841,069					19,917				15
Auto		60,324				12,684				39,516				112,524				3,405,416				3,517,940					39,516				-
Other		1,266				49				1,605				2,920				135,853				138,773					1,435				170
Total	$	408,727			$	117,088			$	718,266			$	1,244,081			$	31,094,292			$	32,338,373				$	412,383			$	305,883
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	$	6,265			$	179			$	(4	)		$	6,440			$	(11,298	)		$	(4,858	)			$	(4	)		$	-
Commercial real estate:
Non-owner occupied		(17,963	)			(1,072	)			(2	)			(19,037	)			112,618				93,581					(2	)			-
Owner occupied		(36,491	)			700				(1,947	)			(37,738	)			60,549				22,811					(1,947	)			-
Commercial and industrial		(26,652	)			1,670				1,584				(23,398	)			274,903				251,505					279				1,305
Construction		(15,246	)			970				9,284				(4,992	)			125,899				120,907					9,284				-
Mortgage		17,060				11,162				(65,964	)			(37,742	)			80,913				43,171					(29,998	)			(35,966	)
Leasing		859				1,206				(1,360	)			705				46,474				47,179					(1,360	)			-
Consumer:
Credit cards		2,344				488				2,124				4,956				6,237				11,193					-				2,124
Home equity lines of credit		(32	)			(21	)			(366	)			(419	)			(1,028	)			(1,447	)				(366	)			-
Personal		1,600				3,136				232				4,968				50,557				55,525					247				(15	)
Auto		15,555				5,738				(3,312	)			17,981				29,612				47,593					(3,312	)			-
Other		(754	)			379				296				(79	)			5,468				5,389					300				(4	)
Total	$	(53,455	)		$	24,535			$	(59,435	)		$	(88,355	)		$	780,904			$	692,549				$	(26,879	)		$	(32,556	)

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table M - Non-Performing Assets
(Unaudited)
													Variance
(In thousands)	30-Jun-23		As a % of loans HIP by category		31-Mar-23		As a % of loans HIP by category		30-Jun-22		As a % of loans HIP by category		Q2 2023 vs. Q1 2023			Q2 2023 vs. Q2 2022
Non-accrual loans:
Commercial	$	100,326	0.6	%	$	102,000	0.6	%	$	103,939	0.7	%	$	(1,674	)	$	(3,613	)
Construction		9,284	1.1			-	-			-	-			9,284			9,284
Leasing		4,743	0.3			6,103	0.4			4,665	0.3			(1,360	)		78
Mortgage		208,796	2.8			238,794	3.2			304,862	4.2			(29,998	)		(96,066	)
Auto		36,204	1.0			39,516	1.1			28,045	0.8			(3,312	)		8,159
Consumer		26,151	0.8			25,970	0.8			36,413	1.3			181			(10,262	)
Total non-performing loans held-in-portfolio		385,504	1.2	%		412,383	1.3	%		477,924	1.6	%		(26,879	)		(92,420	)
Other real estate owned (“OREO”)		86,216				91,721				92,137				(5,505	)		(5,921	)
Total non-performing assets [1]	$	471,720			$	504,104			$	570,061			$	(32,384	)	$	(98,341	)
Accruing loans past due 90 days or more [2]	$	273,327			$	305,883			$	407,298			$	(32,556	)	$	(133,971	)
Ratios:
Non-performing assets to total assets		0.67	%			0.74	%			0.80	%
Non-performing loans held-in-portfolio to loans held-in-portfolio		1.17				1.28				1.57
Allowance for credit losses to loans held-in-portfolio		2.12				2.13				2.24
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		181.63				167.11				142.65
[1] There were no non-performing loans held-for-sale as of June 30, 2023, March 31, 2023 and June 30, 2022.
[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 $7 million at June 30, 2023, 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, 2023 - $7 million; June 30, 2022 - $11 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 $133 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2023 (March 31, 2023 - $167 million; June 30, 2022 - $237 million). Furthermore, the Corporation has approximately $39 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, 2023- $40 million; June 30, 2022 - $43 million).

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table N - Activity in Non-Performing Loans
(Unaudited)
Commercial loans held-in-portfolio:
	Quarter ended									Quarter ended
	30-Jun-23									31-Mar-23
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	90,952		$	11,048		$	102,000		$	82,171		$	10,868		$	93,039
Plus:
New non-performing loans		3,203			4,631			7,834			16,594			5,719			22,313
Advances on existing non-performing loans		-			2			2			-			26			26
Less:
Non-performing loans transferred to OREO		(21	)		-			(21	)		(287	)		-			(287	)
Non-performing loans charged-off		(595	)		(2,175	)		(2,770	)		(673	)		(216	)		(889	)
Loans returned to accrual status / loan collections		(4,823	)		(1,896	)		(6,719	)		(6,853	)		(5,349	)		(12,202	)
Ending balance NPLs	$	88,716		$	11,610		$	100,326		$	90,952		$	11,048		$	102,000
Construction loans held-in-portfolio:
	Quarter ended									Quarter ended
	30-Jun-23									31-Mar-23
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	-		$	-		$	-		$	-		$	-		$	-
Plus:
New non-performing loans		9,284			-			9,284			-			-			-
Ending balance NPLs	$	9,284		$	-		$	9,284		$	-		$	-		$	-
Mortgage loans held-in-portfolio:
	Quarter ended									Quarter ended
	30-Jun-23									31-Mar-23
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	224,075		$	14,719		$	238,794		$	242,391		$	20,488		$	262,879
Plus:
New non-performing loans		27,518			4,457			31,975			34,019			2,812			36,831
Advances on existing non-performing loans		-			76			76			-			39			39
Less:
Non-performing loans transferred to OREO		(9,226	)		-			(9,226	)		(10,586	)		(58	)		(10,644	)
Non-performing loans charged-off		271			-			271			(503	)		-			(503	)
Loans returned to accrual status / loan collections		(48,419	)		(4,675	)		(53,094	)		(41,246	)		(8,562	)		(49,808	)
Ending balance NPLs	$	194,219		$	14,577		$	208,796		$	224,075		$	14,719		$	238,794
Total non-performing loans held-in-portfolio (excluding consumer):
	Quarter ended									Quarter ended
	30-Jun-23									31-Mar-23
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	315,027		$	25,767		$	340,794		$	324,562		$	31,356		$	355,918
Plus:
New non-performing loans		40,005			9,088			49,093			50,613			8,531			59,144
Advances on existing non-performing loans		-			78			78			-			65			65
Less:
Non-performing loans transferred to OREO		(9,247	)		-			(9,247	)		(10,873	)		(58	)		(10,931	)
Non-performing loans charged-off		(324	)		(2,175	)		(2,499	)		(1,176	)		(216	)		(1,392	)
Loans returned to accrual status / loan collections		(53,242	)		(6,571	)		(59,813	)		(48,099	)		(13,911	)		(62,010	)
Ending balance NPLs	$	292,219		$	26,187		$	318,406		$	315,027		$	25,767		$	340,794

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table O - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)
	Quarters ended
(In thousands)	30-Jun-23				31-Mar-23				30-Jun-22
Balance at beginning of period - loans held-in-portfolio	$	689,120			$	720,302			$	677,792
Impact of adopting ASU-2022-02		-				(45,583	)			-
Provision for credit losses (benefit)		35,661				47,146				9,861
Initial allowance for credit losses - PCD Loans		10				68				170
		724,791				721,933				687,823
Net loans charge-off (recovered)- BPPR
Commercial:
Commercial multi-family		(1	)			-				-
Commercial real estate non-owner occupied		430				(135	)			(663	)
Commercial real estate owner occupied		(329	)			(1,507	)			(823	)
Commercial and industrial		(1,431	)			442				(1,926	)
Total Commercial		(1,331	)			(1,200	)			(3,412	)
Construction		-				-				(395	)
Leasing		1,593				327				667
Mortgage		(3,384	)			(3,954	)			(4,451	)
Consumer:
Credit Cards		6,502				6,287				4,077
HELOCs		(25	)			(36	)			(73	)
Personal		12,641				12,045				6,356
Auto		2,491				7,204				2,392
Other Consumer		200				10,791				171
Total Consumer		21,809				36,291				12,923
Total net charged-off (recovered) BPPR	$	18,687			$	31,464			$	5,332
Net loans charge-off (recovered) - Popular U.S.
Commercial:
Commercial multi-family		(1	)			(2	)			(5	)
Commercial real estate non-owner occupied		(66	)			(1,852	)			(14	)
Commercial real estate owner occupied		156				(24	)			(110	)
Commercial and industrial		1,734				(469	)			266
Total Commercial		1,823				(2,347	)			137
Construction		-				-				(4	)
Mortgage		(109	)			(14	)			63
Consumer:
Credit Cards		-				1				(1	)
HELOCs		(166	)			(126	)			(472	)
Personal		3,708				3,787				978
Other Consumer		47				48				40
Total Consumer		3,589				3,710				545
Total net charged-off (recovered) Popular U.S.	$	5,303			$	1,349			$	741
Total loans charged-off (recovered) - Popular, Inc.	$	23,990			$	32,813			$	6,073
Net write- downs [1]	$	601			$	-			$	-
Balance at end of period - loans held-in-portfolio	$	700,200			$	689,120			$	681,750
Balance at beginning of period - unfunded commitments	$	9,415			$	8,805			$	7,054
Provision for credit losses (benefit)		2,178				610				(150	)
Balance at end of period - unfunded commitments [2]	$	11,593			$	9,415			$	6,904
POPULAR, INC.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.29		%		0.41		%		0.08		%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		148.65		%		143.68		%		162.37		%
BPPR
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.33		%		0.56		%		0.10		%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		151.86		%		143.67		%		171.19		%
Popular U.S.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.22		%		0.06		%		0.03		%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		137.32		%		144.03		%		98.92		%
[1] Net write-downs for the quarter ended June 30, 2023 are related to credit cards loans reclassified to held-for-sale.
[2] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table P - Allowance for Credit Losses "ACL"- Loan Portfolios - Consolidated
(Unaudited)
30-Jun-23
(In thousands)		Total ACL				Total loans held-in-portfolio				ACL to loans held-in-portfolio
Commercial:
Commercial multi-family		$	26,179			$	2,331,499			1.12		%
Commercial real estate - non-owner occupied			71,716				4,744,256			1.51		%
Commercial real estate - owner occupied			51,407				3,041,398			1.69		%
Commercial and industrial			99,651				6,251,147			1.59		%
Total commercial		$	248,953			$	16,368,300			1.52		%
Construction			11,332				819,903			1.38		%
Mortgage			96,093				7,449,078			1.29		%
Leasing			13,927				1,661,523			0.84		%
Consumer:
Credit cards			71,408				1,057,389			6.75		%
Home equity lines of credit			2,170				68,440			3.17		%
Personal			115,828				1,896,594			6.11		%
Auto			134,247				3,565,533			3.77		%
Other consumer			6,242				144,162			4.33		%
Total consumer		$	329,895			$	6,732,118			4.90		%
Total		$	700,200			$	33,030,922			2.12		%
31-Mar-23
(In thousands)		Total ACL				Total loans held-in-portfolio				ACL to loans held-in-portfolio
Commercial:
Commercial multi-family		$	25,366			$	2,336,357			1.09		%
Commercial real estate - non-owner occupied			71,850				4,650,675			1.54		%
Commercial real estate - owner occupied			54,497				3,018,587			1.81		%
Commercial and industrial			92,266				5,999,642			1.54		%
Total commercial		$	243,979			$	16,005,261			1.52		%
Construction			4,330				698,996			0.62		%
Mortgage			104,477				7,405,907			1.41		%
Leasing			20,990				1,614,344			1.30		%
Consumer:
Credit cards			67,953				1,046,196			6.50		%
Home equity lines of credit			1,953				69,887			2.79		%
Personal			109,729				1,841,069			5.96		%
Auto			130,829				3,517,940			3.72		%
Other consumer			4,880				138,773			3.52		%
Total consumer		$	315,344			$	6,613,865			4.77		%
Total		$	689,120			$	32,338,373			2.13		%
Variance
(In thousands)		Total ACL				Total loans held-in-portfolio				ACL to loans held-in-portfolio
Commercial:
Commercial multi-family		$	813			$	(4,858	)		0.03		%
Commercial real estate - non-owner occupied			(134	)			93,581			(0.03	)	%
Commercial real estate - owner occupied			(3,090	)			22,811			(0.12	)	%
Commercial and industrial			7,385				251,505			0.05		%
Total commercial		$	4,974			$	363,039			-		%
Construction			7,002				120,907			0.76		%
Mortgage			(8,384	)			43,171			(0.12	)	%
Leasing			(7,063	)			47,179			(0.46	)	%
Consumer:
Credit cards			3,455				11,193			0.25		%
Home equity lines of credit			217				(1,447	)		0.38		%
Personal			6,099				55,525			0.15		%
Auto			3,418				47,593			0.05		%
Other consumer			1,362				5,389			0.81		%
Total consumer		$	14,551			$	118,253			0.13		%
Total		$	11,080			$	692,549			(0.01	)	%

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table Q - Allowance for Credit Losses "ACL"- Loan Portfolios - BPPR Operations
(Unaudited)
30-Jun-23
BPPR
(In thousands)		Total ACL			Total loans held-in-portfolio			ACL to loans held-in-portfolio
Commercial:
Commercial multi-family		$4,787			$296,877			1.61		%
Commercial real estate - non-owner occupied		53,366			2,906,247			1.84		%
Commercial real estate - owner occupied		41,901			1,428,058			2.93		%
Commercial and industrial		81,637			4,038,823			2.02		%
Total commercial		$181,691			$8,670,005			2.10		%
Construction		9,554			173,735			5.50		%
Mortgage		82,899			6,168,288			1.34		%
Leasing		13,927			1,661,523			0.84		%
Consumer:
Credit cards		71,408			1,057,372			6.75		%
Home equity lines of credit		96			2,570			3.74		%
Personal		96,046			1,685,966			5.70		%
Auto		134,247			3,565,533			3.77		%
Other consumer		6,240			135,292			4.61		%
Total consumer		$308,037			$6,446,733			4.78		%
Total		$596,108			$23,120,284			2.58		%

31-Mar-23
BPPR
(In thousands)		Total ACL			Total loans held-in-portfolio			ACL to loans held-in-portfolio
Commercial:
Commercial multi-family		$4,756			$292,806			1.62		%
Commercial real estate - non-owner occupied		53,894			2,885,483			1.87		%
Commercial real estate - owner occupied		46,009			1,497,503			3.07		%
Commercial and industrial		77,042			3,934,433			1.96		%
Total commercial		$181,701			$8,610,225			2.11		%
Construction		3,072			155,349			1.98		%
Mortgage		89,077			6,116,684			1.46		%
Leasing		20,990			1,614,344			1.30		%
Consumer:
Credit cards		67,953			1,046,175			6.50		%
Home equity lines of credit		100			2,865			3.49		%
Personal		88,408			1,612,918			5.48		%
Auto		130,829			3,517,940			3.72		%
Other consumer		4,877			130,012			3.75		%
Total consumer		$292,167			$6,309,910			4.63		%
Total		$587,007			$22,806,512			2.57		%
Variance
(In thousands)		Total ACL			Total loans held-in-portfolio			ACL to loans held-in-portfolio
Commercial:
Commercial multi-family		31			4,071			(0.01	)	%
Commercial real estate - non-owner occupied		(528	)		20,764			(0.03	)	%
Commercial real estate - owner occupied		(4,108	)		(69,445	)		(0.14	)	%
Commercial and industrial		4,595			104,390			0.06		%
Total commercial		$(10	)		$59,780			(0.01	)	%
Construction		6,482			18,386			3.52		%
Mortgage		(6,178	)		51,604			(0.12	)	%
Leasing		(7,063	)		47,179			(0.46	)	%
Consumer:
Credit cards		3,455			11,197			0.25		%
Home equity lines of credit		(4	)		(295	)		0.25		%
Personal		7,638			73,048			0.22		%
Auto		3,418			47,593			0.05		%
Other consumer		1,363			5,280			0.86		%
Total consumer		$15,870			$136,823			0.15		%
Total		$9,101			$313,772			0.01		%

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table R - Allowance for Credit Losses "ACL"- Loan Portfolios - POPULAR U.S. Operations
(Unaudited)
30-Jun-23
Popular U.S.
(In thousands)	Total ACL		Total loans held-in-portfolio		ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$21,392		$2,034,622		1.05	%
Commercial real estate - non-owner occupied	18,350		1,838,009		1.00	%
Commercial real estate - owner occupied	9,506		1,613,340		0.59	%
Commercial and industrial	18,014		2,212,324		0.81	%
Total commercial	$67,262		$7,698,295		0.87	%
Construction	1,778		646,168		0.28	%
Mortgage	13,194		1,280,790		1.03	%
Consumer:
Credit cards	-		17		-	%
Home equity lines of credit	2,074		65,870		3.15	%
Personal	19,782		210,628		9.39	%
Other consumer	2		8,870		0.02	%
Total consumer	$21,858		$285,385		7.66	%
Total	$104,092		$9,910,638		1.05	%
31-Mar-23
Popular U.S.
(In thousands)	Total ACL		Total loans held-in-portfolio		ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$20,610		$2,043,551		1.01	%
Commercial real estate - non-owner occupied	17,956		1,765,192		1.02	%
Commercial real estate - owner occupied	8,488		1,521,084		0.56	%
Commercial and industrial	15,224		2,065,209		0.74	%
Total commercial	$62,278		$7,395,036		0.84	%
Construction	1,258		543,647		0.23	%
Mortgage	15,400		1,289,223		1.19	%
Consumer:
Credit cards	-		21		-	%
Home equity lines of credit	1,853		67,022		2.76	%
Personal	21,321		228,151		9.35	%
Other consumer	3		8,761		0.03	%
Total consumer	$23,177		$303,955		7.63	%
Total	$102,113		$9,531,861		1.07	%

Variance
(In thousands)	Total ACL			Total loans held-in-portfolio			ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$782			$(8,929	)		0.04		%
Commercial real estate - non-owner occupied	394			72,817			(0.02	)	%
Commercial real estate - owner occupied	1,018			92,256			0.03		%
Commercial and industrial	2,790			147,115			0.07		%
Total commercial	$4,984			$303,259			0.03		%
Construction	520			102,521			0.05		%
Mortgage	(2,206	)		(8,433	)		(0.16	)	%
Consumer:
Credit cards	-			(4	)		-		%
Home equity lines of credit	221			(1,152	)		0.39		%
Personal	(1,539	)		(17,523	)		0.04		%
Other consumer	(1	)		109			(0.01	)	%
Total consumer	$(1,319	)		$(18,570	)		0.03		%
Total	$1,979			$378,777			(0.02	)	%

Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table S - Reconciliation to GAAP Financial Measures
(Unaudited)
(In thousands, except share or per share information)	30-Jun-23				31-Mar-23				30-Jun-22
Total stockholders’ equity	$	4,565,009			$	4,470,725			$	4,293,349
Less: Preferred stock		(22,143	)			(22,143	)			(22,143	)
Less: Goodwill		(827,428	)			(827,428	)			(720,293	)
Less: Other intangibles		(11,354	)			(12,149	)			(14,533	)
Total tangible common equity	$	3,704,084			$	3,609,005			$	3,536,380
Total assets	$	70,838,266			$	67,675,759			$	71,501,931
Less: Goodwill		(827,428	)			(827,428	)			(720,293	)
Less: Other intangibles		(11,354	)			(12,149	)			(14,533	)
Total tangible assets	$	69,999,484			$	66,836,182			$	70,767,105
Tangible common equity to tangible assets		5.29		%		5.40		%		5.00		%
Common shares outstanding at end of period		72,103,969				71,965,984				76,576,397
Tangible book value per common share	$	51.37			$	50.15			$	46.18
	Quarterly average
Total stockholders’ equity [1]	$	6,553,488			$	6,452,889			$	5,827,666
Less: Preferred Stock		(22,143	)			(22,143	)			(22,143	)
Less: Goodwill		(827,427	)			(827,427	)			(720,292	)
Less: Other intangibles		(11,875	)			(12,678	)			(15,043	)
Total tangible equity	$	5,692,043			$	5,590,641			$	5,070,188
Return on average tangible common equity		10.63		%		11.51		%		16.70		%
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230726574068/en/

Popular, Inc.

Investor Relations:

Paul J. Cardillo, 212-417-6721

Senior Vice President and Investor Relations Officer

pcardillo@popular.com

or

Media Relations:

MC González Noguera, 917-804-5253

Executive Vice President and Chief Communications & Public Affairs Officer

mc.gonzalez@popular.com

Source: Popular, Inc.

FAQ

What was Popular, Inc.'s net income in Q2 2023?

Popular, Inc. reported a net income of $151.2 million in Q2 2023.

How did Popular, Inc.'s net interest margin change in Q2 2023 compared to Q1 2023?

Popular, Inc.'s net interest margin decreased to 3.14% in Q2 2023 from 3.22% in Q1 2023.

What is Popular, Inc.'s Common Equity Tier 1 ratio at June 30, 2023?

Popular, Inc.'s Common Equity Tier 1 ratio stood at 16.87% at June 30, 2023.

Did Popular, Inc.'s total borrowings change from Q1 2023 to Q2 2023?

Total borrowings at Q2 2023 were $1.4 billion, flat compared to Q1 2023.