Popular, Inc. Announces Third Quarter 2023 Financial Results

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Popular, Inc. reports net income of $136.6 million for Q3 2023, compared to $151.2 million in Q2 2023. Net interest income increased by $2.4 million. Non-interest income decreased by $1.0 million. Operating expenses increased by $5.7 million. NPLs decreased by $24.0 million. NCOs increased by $8.7 million. Loans increased by $998.4 million. Ending deposit balances decreased by $667.2 million. Common Equity Tier 1 ratio is 16.81%.

Positive

Net income of $136.6 million for Q3 2023, a decrease from Q2 2023. Net interest income increased by $2.4 million. Loans increased by $998.4 million. NPLs decreased by $24.0 million. Common Equity Tier 1 ratio is 16.81%.

Negative

Non-interest income decreased by $1.0 million. Operating expenses increased by $5.7 million. Ending deposit balances decreased by $667.2 million.

10/26/2023 - 08:00 AM

Net income of $136.6 million in Q3 2023, including an after-tax goodwill impairment charge in our U.S. based equipment leasing subsidiary of $16.4 million, compared to net income of $151.2 million in Q2 2023.
Net interest income amounted to $534.0 million, an increase of $2.4 million compared to Q2 2023.
Net interest margin of 3.07% in Q3 2023, compared to 3.14% in Q2 2023; net interest margin on a taxable equivalent basis of 3.24% in Q3 2023, compared to 3.29% in Q2 2023.
Non-interest income of $159.5 million, or $1.0 million lower than in Q2 2023.
Operating expenses amounted to $466.0 million, an increase of $5.7 million compared to Q2 2023, including a non-cash goodwill impairment of $23.0 million.
Credit Quality:
- Non-performing loans held-in-portfolio (“NPLs”) decreased by $24.0 million from Q2 2023; NPLs to loans ratio at 1.1% vs. 1.2% in Q2 2023;
- Net charge-offs (“NCOs”) increased by $8.7 million from Q2 2023; annualized NCOs at 0.39% of average loans held-in-portfolio vs. 0.29% in Q2 2023;
- Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.09% vs. 2.12% in Q2 2023; and
- ACL to NPLs at 196.7% vs. 181.6% in Q2 2023.
Loans increased by $998.4 million and by $764.4 million in average quarterly balances, from Q2 2023.
Ending deposit balances decreased by $667.2 million while average quarterly balances increased by $1.4 billion, from Q2 2023.
Common Equity Tier 1 ratio of 16.81%, Common Equity per Share of $61.49 and Tangible Book Value per Share of $50.20 at September 30, 2023.

SAN JUAN, Puerto Rico--(BUSINESS WIRE)-- Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $136.6 million for the quarter ended September 30, 2023, including an after-tax goodwill impairment charge in our U.S. based equipment leasing subsidiary of $16.4 million, compared to net income of $151.2 million for the quarter ended June 30, 2023.

Ignacio Alvarez, President and Chief Executive Officer, said: “We are pleased to report another strong quarter. Net income totaled $137 million, which includes a $16 million after-tax goodwill impairment in our U.S. based equipment leasing subsidiary. Excluding this impact, net income would have been $153 million, $2 million higher than the previous quarter.

Our positive results were driven by higher revenues and lower operating expenses, excluding the non-cash goodwill impairment, partially offset by a higher provision for loan losses. We grew our loan portfolio by $1 billion, which contributed to an increase in net interest income despite higher deposit costs. Approximately $600 million of the increase took place in Puerto Rico, reflecting strong economic activity. During the quarter, we crossed a significant milestone, reaching more than 2 million unique customers in Puerto Rico.

Our achievements are made possible by a dedicated team of more than 9,000 colleagues and further strengthen our commitment to our customers, communities and shareholders. Earlier this month we celebrated our 130th anniversary and our team’s energy was palpable. We are proud of our history, which has made us a strong organization with deep-rooted values, and are excited about the opportunities that lie ahead.”

Earnings Highlights
(Unaudited)	Quarters ended			Nine months ended

(Dollars in thousands, except per share information)	30-Sep-23	30-Jun-23	30-Sep-22	30-Sep-23	30-Sep-22
Net interest income	$534,020	$531,668	$579,619	$1,597,344	$1,607,793
Provision for credit losses	45,117	37,192	39,637	129,946	33,499
Net interest income after provision for credit losses	488,903	494,476	539,982	1,467,398	1,574,294
Other non-interest income	159,549	160,471	426,494	481,981	738,597
Operating expenses	465,984	460,284	476,095	1,366,955	1,284,712
Income before income tax	182,468	194,663	490,381	582,424	1,028,179
Income tax expense	45,859	43,503	67,986	135,676	182,677
Net income	$136,609	$151,160	$422,395	$446,748	$845,502
Net income applicable to common stock	$136,256	$150,807	$422,042	$445,689	$844,443
Net income per common share-basic	$1.90	$2.10	$5.71	$6.22	$11.09
Net income per common share-diluted	$1.90	$2.10	$5.70	$6.21	$11.07

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 September 30, 2023 and Table F for the nine-month periods ended September 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 September 30, 2023 was $534.0 million, an increase of $2.4 million when compared to the previous quarter. Net interest income on a taxable equivalent basis for the third quarter of 2023 was $563.7 million, compared to $558.4 million in the previous quarter, an increase of $5.3 million. The increase in taxable equivalent net interest income results from a higher volume of exempt investments, partially offset by a higher disallowed interest expense in the Puerto Rico tax computation driven by the increase in deposit volume and cost. Refer to the income taxes discussion for further information.

Net interest margin decreased seven basis points to 3.07%. On a taxable equivalent basis, net interest margin for the third quarter of 2023 was 3.24%, compared to 3.29% for the prior quarter, or a five basis points decrease. The lower reduction in the taxable equivalent rate results from a higher benefit of a higher volume of exempt investment securities in Puerto Rico. The main variances in net interest income on a taxable equivalent basis were:

Higher interest income from investment securities, trading and money market investments by $27.4 million driven mainly by higher volume of U.S. Treasury bills, partially offset by a lower volume of money market investments. Both asset classes reflect the effect of the two 25 basis points increases in market rates that occurred at the end of July and at the beginning of May;
Higher interest income from loans by $26.3 million resulting from an increase in average loans by $770 million, reflecting increases in Banco Popular de Puerto Rico (“BPPR”) by $427 million and an increase in Popular Bank (“PB”) by $343 million. All major loan segments increased in BPPR while at PB the increase was mainly in the commercial and construction portfolios. Loan originations in a higher interest rate environment and the repricing of adjustable-rate loans resulted in a higher yield on loans by nine basis points; most of the categories resulted in a higher yield quarter over quarter; and
Lower interest expense on other debt upon the previously announced redemption, during the quarter of the $300 million Senior Notes due September 2023;

partially offset by:

Higher interest expense on deposits by $34.4 million, mainly from the increase in volume and cost of Puerto Rico government deposits and a higher cost in most deposit categories in both BPPR and PB, reflective of the increase in rates.

Net interest income for the BPPR segment amounted to $453.9 million for the third quarter of 2023, flat when compared to $453.1 million in net interest income during the second quarter of 2023. Net interest margin for the BPPR segment decreased by seven basis points to 3.14%. The decrease in net interest margin is related to a higher average volume of deposits, mainly higher cost Puerto Rico government deposits. Earning assets yield improved 17 basis points from the prior quarter to 4.74%. The average volume of earning assets increased by $861 million, while average total deposits increased by $904 million, mainly in P.R. government deposits, which were $1.4 billion higher on average than during Q2 2023, partially offset by a decrease in non-interest-bearing deposits. The cost of interest-bearing deposits increased by 30 basis points to 2.25% from 1.95% the previous quarter. The increase in the cost of deposits mainly resulted from the repricing of public funds and management actions to increase deposit interest rates for certain corporate clients. Total deposit cost in the third quarter of 2023 was 1.68%, compared to 1.44% in the quarter ended June 30, 2023.

Net interest income for PB was $87.4 million for the quarter ended September 30, 2023, unchanged when compared to $87.5 million in net interest income during the previous quarter. Net interest margin decreased by 11 basis points in the quarter to 2.90%, compared to 3.01% in the second 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 in the current interest rates environment. The cost of interest-bearing deposits was 3.31%, compared to 3.02% for the second quarter, or an increase of 29 basis points, while total deposit cost was 2.84% compared to 2.55% in the previous quarter.

Non-interest income

Non-interest income amounted to $159.5 million for the quarter ended September 30, 2023, a decrease of $1.0 million when compared to $160.5 million for the quarter ended June 30, 2023. Fee and transactional-based revenues were slightly lower quarter-over-quarter with the overall results impacted by an unfavorable variance in profit (losses) from equity securities by $2.7 million, mainly related to the fair value of securities held for deferred benefit plans, which have an offsetting effect in personnel costs. The lower fee and transactional-based revenues were partially offset by higher income from mortgage banking activities by $3.1 million, mainly due to a favorable variance of $3.4 million related to the fair value adjustments of mortgage servicing rights (“MSRs”).

Refer to Table B for further details.

Operating expenses

Operating expenses for the third quarter of 2023 totaled $466.0 million, an increase of $5.7 million when compared to the second quarter of 2023. The variance in operating expenses was driven primarily by:

higher personnel cost by $1.7 million mainly due to higher salaries by $2.9 million as a result of the annual merit increase effective during the third quarter of 2023; partially offset by a decrease in other personnel costs by $1.2 million;
higher credit card processing expenses by $2.2 million mainly due to a volume growth incentive received during the second quarter of 2023 which was recorded as a reduction of expenses;
higher FDIC deposit insurance expense by $2.1 million mainly due to an accrual adjustment recorded during the second quarter of 2023 related to a decrease in the assessment rate; and
a non-cash goodwill impairment of $23.0 million in our U.S. based equipment leasing subsidiary due to lower forecasted cash flows and an increase in the rate used to discount cash flows.

partially offset by:

lower other taxes expense by $7.8 million mainly due to the reversal of an accrual related to regulatory examination fees in BPPR by $8.2 million;
lower professional fees by $11.6 million mainly due to lower advisory expenses by $7.1 million arising from corporate initiatives related to regulatory and compliance efforts, as well as those related to the Corporation's transformation initiative, incurred during the second quarter of 2023;
lower business promotion expense by $2.0 million mainly due to lower advertising and credit cards rewards expenses; and
higher other real estate owned (“OREO”) benefit by $1.9 million mainly due to an increase in the fair value of mortgage properties transferred to OREO.

Full-time equivalent employees were 9,063 as of September 30, 2023, compared to 9,124 as of June 30, 2023.

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

Income taxes

For the quarter ended September 30, 2023, the Corporation recorded an income tax expense of $45.9 million compared to $43.5 million for the previous quarter. The increase in income tax expense was mainly attributable to certain tax benefits recorded in the second quarter, partially offset by lower income before tax. The effective tax rate (“ETR”) for the third quarter of 2023 was 25.1% while the ETR for the second quarter was 22.4%.

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 third quarter of 2023, the Corporation continued to reflect stable credit quality metrics. Non-performing loans (“NPLs”) and net charge offs (“NCOs”) continued below historical pre-pandemic averages. Consumer portfolios, however, reflected increased delinquencies and NCOs for the quarter primarily due to the expected continued credit normalization. We continue to closely monitor changes in the macroeconomic environment and on borrower performance, especially our unsecured consumer loans, given higher interest rates and inflationary pressures. However, management believes that the improvements over recent years in risk management practices and the risk profile of the Corporation’s loan portfolios positions Popular to continue to operate successfully under the current environment.

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

At September 30, 2023, total NPLs held-in-portfolio decreased by $24.0 million from June 30, 2023. BPPR’s NPLs decreased by $18.5 million, mostly driven by lower commercial and mortgage NPLs by $16.5 million and $6.8 million, respectively, in part offset by higher consumer NPLs by $5.4 million. The commercial NPLs decrease was mostly driven by loan payoffs. PB’s NPLs decreased by $5.5 million quarter-over-quarter, due to lower commercial and mortgage NPLs by $3.0 million and $2.6 million, respectively. At September 30, 2023, the ratio of NPLs to total loans held-in-portfolio was 1.1%, compared to 1.2% in the second quarter of 2023.
Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $5.9 million quarter-over-quarter. In BPPR, total inflows decreased by $2.6 million due to lower construction inflows by $9.3 million due to a single relationship that entered non-accrual during the second quarter, in part offset by higher mortgage inflows by $7.1 million. PB inflows decreased by $3.3 million, driven by lower commercial inflows.
NCOs amounted to $32.7 million, increasing by $8.7 million when compared to the second quarter of 2023. BPPR’s NCOs increased by $6.9 million quarter-over-quarter, mainly driven by higher consumer NCOs by $14.1 million, of which $7.2 million and $4.7 million are related to the auto and personal loans portfolios, respectively. This increase was in part offset by a $10.8 million recovery from a commercial loan pay-off, as mentioned above. PB’s NCOs increased by $1.8 million quarter-over-quarter, mainly driven by higher consumer NCOs. During the third quarter of 2023, the Corporation’s ratio of annualized NCOs to average loans held-in-portfolio was 0.39%, compared to 0.29% in the second quarter of 2023. Refer to Table N for further information on NCOs and related ratios.
At September 30, 2023, the allowance for credit losses (“ACL”) increased by $10.9 million from the second quarter of 2023 to $711.1 million. In BPPR, the ACL increased by $28.4 million, primarily driven by higher reserves for the auto and personal loans portfolios attributable to credit normalization, changes in macroeconomic scenarios and loan growth. In PB, the ACL decreased by $17.6 million due to the implementation of a new model for the U.S. commercial real estate portfolio. The new model is based on more granular regional information for the Corporation’s portfolio and accounted for $15 million of PB’s reduction in ACL.
The ACL incorporated updated macroeconomic scenarios for Puerto Rico and the United States. Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The baseline scenario continues to be assigned the highest probability, followed by the pessimistic scenario, and then the optimistic scenario.
The 2023 annualized GDP growth in the baseline scenario improved to 1.7% and 2.0% for Puerto Rico and the United States, respectively, compared to 1.5% and 1.6% in the previous quarter. The 2023 forecasted average unemployment rate for Puerto Rico improved to 6.1% from 6.3% in the previous forecast, while in the United States unemployment levels remained at 3.6%, stable when compared to the previous forecast.
GDP growth is expected to slow down during 2024 for both regions, when compared to 2023, as a result of the Fed’s monetary policy. The 2024 GDP growth is expected to be 0.90% for Puerto Rico and 1.25% for the United States. The average 2024 unemployment rate is expected to increase to 6.80% in Puerto Rico and 4.03% in the United States.
The Corporation’s ratio of the ACL to loans held-in-portfolio was 2.09% in the third quarter of 2023, compared to 2.12% in the previous quarter. The ratio of the ACL to NPLs held-in-portfolio stood at 196.7%, compared to 181.6% in the previous quarter.
The provision for credit losses for the loan portfolios for the third quarter of 2023 was $43.5 million, compared to $35.7 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was $54.0 million, compared to $28.4 million in the previous quarter, while the provision for PB was a benefit of $10.5 million, compared to an expense of $7.3 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 Consolidated Statement of Operations. For the third quarter, these combined concepts resulted in a provision expense of $45.1 million, compared to $37.2 million last quarter.

Non-Performing Assets
(Unaudited)
(In thousands)	30-Sep-23	30-Jun-23	30-Sep-22
Non-performing loans held-in-portfolio	$361,523	$385,504	$453,419
Other real estate owned (“OREO”)	82,322	86,216	93,239
Total non-performing assets	$443,845	$471,720	$546,658
Net charge-offs (recoveries) for the quarter	$32,655	$23,990	$18,232


Ratios:
Loans held-in-portfolio	$34,029,313	$33,030,922	$31,523,188
Non-performing loans held-in-portfolio to loans held-in-portfolio	1.06%	1.17%	1.44%
Allowance for credit losses to loans held-in-portfolio	2.09	2.12	2.23
Allowance for credit losses to non-performing loans, excluding loans held-for-sale	196.69	181.63	155.07
Refer to Table L for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios

(Unaudited)	Quarters ended			Nine months ended
(In thousands)	30-Sep-23	30-Jun-23	30-Sep-22	30-Sep-23	30-Sep-22
Provision for credit losses (benefit) - loan portfolios:
BPPR	$54,017	$28,379	$28,694	$127,599	$25,161
Popular U.S.	(10,503)	7,282	10,825	(1,278)	9,814
Total provision for credit losses (benefit) - loan portfolios	$43,514	$35,661	$39,519	$126,321	$34,975

Credit Quality by Segment
(Unaudited)
(In thousands)	Quarters ended
BPPR		30-Sep-23	30-Jun-23	30-Sep-22
Provision for credit losses - loan portfolios		$54,017	$28,379	$28,694
Net charge-offs		25,600	18,687	18,396
Total non-performing loans held-in-portfolio		333,825	352,339	410,215
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.44%	0.33%	0.34%
Allowance / loans held-in-portfolio		2.63%	2.58%	2.65%
Allowance / non-performing loans held-in-portfolio		187.08%	169.19%	144.05%

	Quarters ended
Popular U.S.		30-Sep-23	30-Jun-23	30-Sep-22
Provision for credit losses - loan portfolios		$(10,503)	$7,282	$10,825
Net charge-offs		7,055	5,303	(164)
Total non-performing loans held-in-portfolio		27,698	33,165	43,204
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.28%	0.22%	(0.01)
Allowance / loans held-in-portfolio		0.84%	1.05%	1.21%
Allowance / non-performing loans held-in-portfolio		312.42%	313.86%	259.61%

Financial Condition Highlights

(Unaudited)
(In thousands)	30-Sep-23	30-Jun-23	30-Sep-22
Cash and money market investments	$6,924,772	$9,070,118	$5,992,360
Investment securities	25,653,616	25,874,316	30,434,052
Loans	34,029,313	33,030,922	31,523,188
Total assets	69,736,936	70,838,266	70,729,675
Deposits	63,337,600	64,004,818	64,819,327
Borrowings	1,097,720	1,427,254	1,300,984
Total liabilities	65,279,328	66,273,257	67,054,837
Stockholders’ equity	4,457,608	4,565,009	3,674,838

Total assets amounted to $69.7 billion at September 30, 2023, a decrease of $1.1 billion from the second quarter of 2023, driven by:

a decrease in money market investments of $2.2 billion due to lower deposits and increased loan balances as discussed below;
a decrease in securities available-for-sale (“AFS”) of $112.4 million, mainly due to repayments, maturities and unfavorable changes in fair value, offset in part by the purchase of U.S. Treasury securities; and
a decrease in securities held-to-maturity (“HTM”) of $108.4 million driven by a decrease in U.S. Treasury securities mainly as a result of maturities;

partially offset by:

an increase in loans held-in-portfolio of $998.4 million reflected across all portfolios in BPPR, except the construction portfolio, and an increase in commercial and construction loans at PB; and
an increase in other assets of $328.9 million driven by unsettled trade receivables related to proceeds from maturities of U.S. Treasury Notes and interest payments which were received in the fourth quarter.

Total liabilities decreased by $993.9 million from the second quarter of 2023, driven by:

a decrease of $667.2 million in deposits, mainly in Puerto Rico public sector accounts partially offset by an increase in time deposits and savings accounts at PB; and
a decrease of $299.4 million in notes payable due to the redemption of $300.0 million in aggregate principal amount of the Senior Notes due September 2023.

Stockholders' equity decreased by $107.4 million from the second quarter of 2023, principally due to the after-tax impact of the increase in net unrealized losses in the portfolio of AFS securities of $242.6 million and to common and preferred dividends declared during the quarter, partially offset by the net income for the quarter of $136.6 million and the amortization of unrealized losses from securities previously reclassified to HTM of $35.0 million.

The Corporation is in the process of completing its annual goodwill impairment test, using July 31, 2023 as the evaluation date. During the third quarter, an impairment charge of $23.0 million related to our U.S. based equipment leasing subsidiary was recognized. The Corporation expects to finalize its evaluation prior to the filing of its Form 10-Q for the quarter ended September 30, 2023 with the Securities and Exchange Commission. Any further impairment of goodwill would result in a non-cash expense, net of tax impact. A charge to earnings related to a goodwill impairment would not materially impact regulatory capital and tangible capital calculations.

Common Equity Tier 1 ratio (“CET1”), common equity per share and tangible book value per share were 16.81%, $61.49 and $50.20, respectively, at September 30, 2023, compared to 16.87%, $63.00 and $51.37, respectively, at June 30, 2023. Refer to Table A for capital ratios.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those regarding Popular’s business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, 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 quarters ended March 31, 2023 and June 30, 2023, and in our Form 10-Q for the quarter ended September 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, Thursday, October 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 260746.

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 Monday, November 27, 2023. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 546020.

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

Popular, Inc.

Financial Supplement to Third Quarter 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 - Loan Delinquency - BPPR Operations

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

Table K - Loan Delinquency - Consolidated

Table L - Non-Performing Assets

Table M - Activity in Non-Performing Loans

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

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

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

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

Table R - Reconciliation to GAAP Financial Measures

POPULAR, INC.
Financial Supplement to Third Quarter 2023 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)

	Quarters ended			Nine months ended
	30-Sep-23	30-Jun-23	30-Sep-22	30-Sep-23	30-Sep-22
Basic EPS	$1.90	$2.10	$5.71	$6.22	$11.09
Diluted EPS	$1.90	$2.10	$5.70	$6.21	$11.07
Average common shares outstanding	71,794,934	71,690,396	73,955,184	71,676,630	76,173,783
Average common shares outstanding - assuming dilution	71,818,102	71,709,203	74,057,332	71,736,514	76,304,219
Common shares outstanding at end of period	72,127,595	72,103,969	72,673,344	72,127,595	72,673,344
Market value per common share	$63.01	$60.52	$72.06	$63.01	$72.06
Market capitalization - (In millions)	$4,545	$4,364	$5,237	$4,545	$5,237
Return on average assets	0.75%	0.85%	2.31%	0.84%	1.54%
Return on average common equity	8.17%	9.26%	27.72%	9.13%	19.02%
Net interest margin (non-taxable equivalent basis)	3.07%	3.14%	3.32%	3.14%	3.05%
Net interest margin (taxable equivalent basis) -non-GAAP	3.24%	3.29%	3.71%	3.32%	3.39%
Common equity per share	$61.49	$63.00	$50.26	$61.49	$50.26
Tangible common book value per common share (non-GAAP) [1]	$50.20	$51.37	$38.69	$50.20	$38.69
Tangible common equity to tangible assets (non-GAAP) [1]	5.25%	5.29%	4.02%	5.25%	4.02%
Return on average tangible common equity [1]	9.36%	10.63%	31.86%	10.48%	21.78%
Tier 1 capital	16.88%	16.93%	16.10%	16.88%	16.10%
Total capital	18.67%	18.74%	17.92%	18.67%	17.92%
Tier 1 leverage	8.41%	8.40%	7.65%	8.41%	7.65%
Common Equity Tier 1 capital	16.81%	16.87%	16.04%	16.81%	16.04%
[1] Refer to Table S for reconciliation to GAAP financial measures.

POPULAR, INC.
Financial Supplement to Third Quarter 2023 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
	Quarters ended		Variance	Quarter ended	Variance	Nine months ended
			Q3 2023		Q3 2023
(In thousands, except per share information)	30-Sep-23	30-Jun-23	vs. Q2 2023	30-Sep-22	vs. Q3 2022	30-Sep-23	30-Sep-22
Interest income:
Loans	$596,886	$570,120	$26,766	$481,088	$115,798	$1,708,216	$1,354,124
Money market investments	99,286	100,775	(1,489)	36,966	62,320	265,785	67,172
Investment securities	148,614	123,112	25,502	133,181	15,433	403,814	331,421
Total interest income	844,786	794,007	50,779	651,235	193,551	2,377,815	1,752,717
Interest expense:
Deposits	294,121	243,488	50,633	60,897	233,224	730,824	113,507
Short-term borrowings	1,478	1,624	(146)	921	557	5,987	1,249
Long-term debt	15,167	17,227	(2,060)	9,798	5,369	43,660	30,168
Total interest expense	310,766	262,339	48,427	71,616	239,150	780,471	144,924
Net interest income	534,020	531,668	2,352	579,619	(45,599)	1,597,344	1,607,793
Provision for credit losses	45,117	37,192	7,925	39,637	5,480	129,946	33,499
Net interest income after provision for credit losses	488,903	494,476	(5,573)	539,982	(51,079)	1,467,398	1,574,294
Service charges on deposit accounts	37,318	37,781	(463)	40,006	(2,688)	109,777	122,528
Other service fees	93,407	94,265	(858)	86,402	7,005	277,748	244,987
Mortgage banking activities	5,393	2,316	3,077	9,448	(4,055)	15,109	35,888
Net (loss) gain, including impairment, on equity securities	(1,319)	1,384	(2,703)	(1,448)	129	1,165	(7,651)
Net gain (loss) on trading account debt securities	219	35	184	(274)	493	632	(946)
Net loss on sale of loans, including valuation adjustments on loans held-for-sale	(44)	-	(44)	-	(44)	(44)	-
Adjustments to indemnity reserves on loans sold	(187)	(456)	269	1,715	(1,902)	(31)	1,140
Other operating income	24,762	25,146	(384)	290,645	(265,883)	77,625	342,651
Total non-interest income	159,549	160,471	(922)	426,494	(266,945)	481,981	738,597
Operating expenses:
Personnel costs
Salaries	127,832	124,901	2,931	115,887	11,945	378,126	316,407
Commissions, incentives and other bonuses	27,670	27,193	477	42,209	(14,539)	86,025	116,319
Pension, postretirement and medical insurance	16,985	17,508	(523)	17,120	(135)	49,871	43,633
Other personnel costs, including payroll taxes	20,665	21,866	(1,201)	18,627	2,038	69,358	53,268
Total personnel costs	193,152	191,468	1,684	193,843	(691)	583,380	529,627
Net occupancy expenses	28,100	27,165	935	27,420	680	81,304	78,357
Equipment expenses	8,905	9,561	(656)	8,735	170	26,878	25,798
Other taxes	8,590	16,409	(7,819)	15,966	(7,376)	41,290	47,461
Professional fees	38,514	50,132	(11,618)	47,662	(9,148)	122,077	122,884
Technology and software expenses	72,930	72,354	576	68,341	4,589	213,843	213,638
Processing and transactional services
Credit and debit cards	13,762	11,584	2,178	13,531	231	37,896	35,177
Other processing and transactional services	24,137	25,217	(1,080)	18,837	5,300	70,713	59,181
Total processing and transactional services	37,899	36,801	1,098	32,368	5,531	108,609	94,358
Communications	4,220	4,175	45	3,858	362	12,483	11,028
Business promotion
Rewards and customer loyalty programs	15,988	16,626	(638)	14,344	1,644	44,962	38,294
Other business promotion	7,087	8,457	(1,370)	10,004	(2,917)	22,067	22,490
Total business promotion	23,075	25,083	(2,008)	24,348	(1,273)	67,029	60,784
FDIC deposit insurance	8,932	6,803	2,129	6,610	2,322	24,600	20,445
Other real estate owned (OREO) income	(5,189)	(3,314)	(1,875)	(2,444)	(2,745)	(10,197)	(12,963)
Other operating expenses
Operational losses	5,504	4,280	1,224	7,145	(1,641)	16,584	23,031
All other	17,557	18,572	(1,015)	32,448	(14,891)	53,690	58,783
Total other operating expenses	23,061	22,852	209	39,593	(16,532)	70,274	81,814
Amortization of intangibles	795	795	-	795	-	2,385	2,481
Goodwill impairment charge	23,000	-	23,000	9,000	14,000	23,000	9,000
Total operating expenses	465,984	460,284	5,700	476,095	(10,111)	1,366,955	1,284,712
Income before income tax	182,468	194,663	(12,195)	490,381	(307,913)	582,424	1,028,179
Income tax expense	45,859	43,503	2,356	67,986	(22,127)	135,676	182,677
Net income	$136,609	$151,160	$(14,551)	$422,395	$(285,786)	$446,748	$845,502
Net income applicable to common stock	$136,256	$150,807	$(14,551)	$422,042	$(285,786)	$445,689	$844,443
Net income per common share - basic	$1.90	$2.10	$(0.20)	$5.71	$(3.81)	$6.22	$11.09
Net income per common share - diluted	$1.90	$2.10	$(0.20)	$5.70	$(3.80)	$6.21	$11.07
Dividends Declared per Common Share	$0.55	$0.55	$-	$0.55	$-	$1.65	$1.65

Popular, Inc.
Financial Supplement to Third Quarter 2023 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
				Variance
				Q3 2023 vs.
(In thousands)	30-Sep-23	30-Jun-23	30-Sep-22	Q2 2023
Assets:
Cash and due from banks	$535,335	$476,642	$2,017,312	$58,693
Money market investments	6,389,437	8,593,476	3,975,048	(2,204,039)
Trading account debt securities, at fair value	30,988	29,160	30,271	1,828
Debt securities available-for-sale, at fair value	17,129,858	17,242,217	28,264,148	(112,359)
Debt securities held-to-maturity, at amortized cost	8,302,082	8,410,566	1,953,710	(108,484)
Less: Allowance for credit losses	6,057	6,145	7,210	(88)
Total debt securities held-to-maturity, net	8,296,025	8,404,421	1,946,500	(108,396)
Equity securities	190,688	192,373	185,923	(1,685)
Loans held-for-sale, at lower of cost or fair value	5,239	55,421	8,065	(50,182)
Loans held-in-portfolio	34,369,775	33,354,999	31,805,921	1,014,776
Less: Unearned income	340,462	324,077	282,733	16,385
Allowance for credit losses	711,068	700,200	703,096	10,868
Total loans held-in-portfolio, net	33,318,245	32,330,722	30,820,092	987,523
Premises and equipment, net	534,384	523,927	492,685	10,457
Other real estate	82,322	86,216	93,239	(3,894)
Accrued income receivable	257,833	239,998	224,307	17,835
Mortgage servicing rights, at fair value	119,030	121,249	130,541	(2,219)
Other assets	2,032,565	1,703,662	1,700,378	328,903
Goodwill	804,428	827,428	827,428	(23,000)
Other intangible assets	10,559	11,354	13,738	(795)
Total assets	$69,736,936	$70,838,266	$70,729,675	$(1,101,330)
Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing	$15,201,374	$15,316,552	$17,605,339	$(115,178)
Interest bearing	48,136,226	48,688,266	47,213,988	(552,040)
Total deposits	63,337,600	64,004,818	64,819,327	(667,218)
Assets sold under agreements to repurchase	93,071	123,205	162,450	(30,134)
Other short-term borrowings	-	-	250,000	-
Notes payable	1,004,649	1,304,049	888,534	(299,400)
Other liabilities	844,008	841,185	934,526	2,823
Total liabilities	65,279,328	66,273,257	67,054,837	(993,929)
Stockholders’ equity:
Preferred stock	22,143	22,143	22,143	-
Common stock	1,048	1,047	1,046	1
Surplus	4,797,364	4,795,581	4,652,508	1,783
Retained earnings	4,189,865	4,093,284	3,694,020	96,581
Treasury stock	(2,018,870)	(2,018,611)	(1,970,548)	(259)
Accumulated other comprehensive loss, net of tax	(2,533,942)	(2,328,435)	(2,724,331)	(205,507)
Total stockholders’ equity	4,457,608	4,565,009	3,674,838	(107,401)
Total liabilities and stockholders’ equity	$69,736,936	$70,838,266	$70,729,675	$(1,101,330)

Popular, Inc.
Financial Supplement to Third Quarter 2023 Earnings Release
Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP)
For the quarters ended September 30, 2023 and June 30, 2023
(Unaudited)

																				Variance
Average Volume						Average Yields / Costs							Interest							Attributable to
30-Sep-23		30-Jun-23		Variance		30-Sep-23		30-Jun-23		Variance			30-Sep-23		30-Jun-23		Variance		Rate		Volume
	(In millions)													(In thousands)
$	7,292	$	7,851	$	(559)	5.40	%	5.15	%	0.25	%	Money market investments	$	99,285	$	100,776	$	(1,491)	$	5,912	$	(7,403)
	28,396		27,362		1,034	2.31		2.00		0.31		Investment securities [1]		165,319		136,408		28,911		23,826		5,085
	34		32		2	4.43		4.65		(0.22)		Trading securities		375		370		5		(14)		19
												Total money market,
												investment and trading
	35,722		35,245		477	2.95		2.70		0.25		securities		264,979		237,554		27,425		29,724		(2,299)
												Loans:
	16,611		16,237		374	6.64		6.52		0.12		Commercial		277,977		263,934		14,043		7,951		6,092
	865		737		128	8.99		8.95		0.04		Construction		19,580		16,442		3,138		244		2,894
	1,669		1,632		37	6.50		6.30		0.20		Leasing		27,142		25,711		1,431		829		602
	7,504		7,409		95	5.42		5.47		(0.05)		Mortgage		101,700		101,304		396		(898)		1,294
	3,147		3,075		72	13.39		13.21		0.18		Consumer		105,042		101,295		3,747		1,540		2,207
	3,657		3,593		64	8.47		8.31		0.16		Auto		78,055		74,467		3,588		2,252		1,336
	33,453		32,683		770	7.24		7.15		0.09		Total loans		609,496		583,153		26,343		11,918		14,425
$	69,175	$	67,928	$	1,247	5.02	%	4.84	%	0.18	%	Total earning assets	$	874,475	$	820,707	$	53,768	$	41,642	$	12,126
												Interest bearing deposits:
$	25,652	$	24,230	$	1,422	3.31	%	2.91	%	0.40	%	NOW and money market [2]	$	213,957	$	175,640	$	38,317	$	25,174	$	13,143
	14,875		14,763		112	0.73		0.66		0.07		Savings		27,373		24,446		2,927		2,333		594
	7,986		7,715		271	2.62		2.26		0.36		Time deposits		52,791		43,402		9,389		6,926		2,463
	48,513		46,708		1,805	2.41		2.09		0.32		Total interest bearing deposits		294,121		243,488		50,633		34,433		16,200
	15,038		15,480		(442)							Non-interest bearing demand deposits
	63,551		62,188		1,363	1.84		1.57		0.27		Total deposits		294,121		243,488		50,633		34,433		16,200
	108		125		(17)	5.45		5.19		0.26		Short-term borrowings		1,478		1,624		(146)		91		(237)
												Other medium and
	1,172		1,299		(127)	5.20		5.33		(0.13)		long-term debt		15,167		17,227		(2,060)		740		(2,800)
												Total interest bearing
	49,793		48,132		1,661	2.48		2.19		0.29		liabilities (excluding demand deposits)		310,766		262,339		48,427		35,264		13,163

	4,344		4,316		28							Other sources of funds
$	69,175	$	67,928	$	1,247	1.78	%	1.55	%	0.23	%	Total source of funds		310,766		262,339		48,427		35,264		13,163
												Net interest margin/
						3.24	%	3.29	%	(0.05)	%	income on a taxable equivalent basis (Non-GAAP)		563,709		558,368		5,341	$	6,378	$	(1,037)
						2.54	%	2.65	%	(0.11)	%	Net interest spread

												Taxable equivalent adjustment		29,689		26,700		2,989

												Net interest margin/ income
						3.07	%	3.14	%	(0.07)	%	non-taxable equivalent basis (GAAP)	$	534,020	$	531,668	$	2,352
Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the change in each category.
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity.
[2] Includes interest bearing demand deposits corresponding to certain government entities in Puerto Rico.

Popular, Inc.
Financial Supplement to Third Quarter 2023 Earnings Release
Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP)
For the quarters ended September 30, 2023 and September 30, 2022
(Unaudited)

																				Variance
	Average Volume					Average Yields / Costs							Interest							Attributable to
30-Sep-23		30-Sep-22		Variance		30-Sep-23		30-Sep-22		Variance			30-Sep-23		30-Sep-22		Variance			Rate	Volume
	(In millions)													(In thousands)
$	7,292	$	6,721	$	571	5.40	%	2.18	%	3.22	%	Money market investments	$	99,285	$	36,966	$	62,319	$	58,920	$	3,399
	28,396		31,859		(3,463)	2.31		2.33		(0.02)		Investment securities [1]		165,319		186,847		(21,528)		(1,510)		(20,018)
	34		40		(6)	4.43		6.09		(1.66)		Trading securities		375		617		(242)		(150)		(92)
												Total money market,
												investment and trading
	35,722		38,620		(2,898)	2.95		2.31		0.64		securities		264,979		224,430		40,549		57,260		(16,711)
												Loans:
	16,611		14,750		1,861	6.64		5.52		1.12		Commercial		277,977		205,237		72,740		44,889		27,851
	865		835		30	8.99		6.38		2.61		Construction		19,580		13,431		6,149		5,667		482
	1,669		1,503		166	6.50		5.90		0.60		Leasing		27,142		22,154		4,988		2,405		2,583
	7,504		7,264		240	5.42		5.42		-		Mortgage		101,700		98,348		3,352		93		3,259
	3,147		2,818		329	13.39		11.74		1.65		Consumer		105,042		83,407		21,635		11,164		10,471
	3,657		3,562		95	8.47		7.93		0.54		Auto		78,055		71,226		6,829		4,889		1,940
	33,453		30,732		2,721	7.24		6.39		0.85		Total loans		609,496		493,803		115,693		69,107		46,586
$	69,175	$	69,352	$	(177)	5.02	%	4.12	%	0.90	%	Total earning assets	$	874,475	$	718,233	$	156,242	$	126,367	$	29,875
												Interest bearing deposits:
$	25,652	$	25,993	$	(341)	3.31	%	0.56	%	2.75	%	NOW and money market [2]	$	213,957	$	36,448	$	177,509	$	178,787	$	(1,278)
	14,875		15,514		(639)	0.73		0.20		0.53		Savings		27,373		7,966		19,407		20,380		(973)
	7,986		6,957		1,029	2.62		0.94		1.68		Time deposits		52,791		16,484		36,307		29,147		7,160
	48,513		48,464		49	2.41		0.50		1.91		Total interest bearing deposits		294,121		60,898		233,223		228,314		4,909
	15,038		15,872		(834)							Non-interest bearing demand deposits
	63,551		64,336		(785)	1.84		0.38		1.46		Total deposits		294,121		60,898		233,223		228,314		4,909
	108		155		(47)	5.45		2.36		3.09		Short-term borrowings		1,478		921		557		976		(419)
												Other medium and
	1,172		913		259	5.20		4.29		0.91		long-term debt		15,167		9,798		5,369		1,050		4,319
												Total interest bearing
	49,793		49,532		261	2.48		0.57		1.91		liabilities (excluding demand deposits)		310,766		71,617		239,149		230,340		8,809

	4,344		3,948		396							Other sources of funds
$	69,175	$	69,352	$	(177)	1.78	%	0.41	%	1.37	%	Total source of funds		310,766		71,617		239,149		230,340		8,809
												Net interest margin/
						3.24	%	3.71	%	(0.47)	%	income on a taxable equivalent basis (Non-GAAP)		563,709		646,616		(82,907)	$	(103,973)	$	21,066
						2.54	%	3.55	%	(1.01)	%	Net interest spread
												Taxable equivalent adjustment		29,689		66,997		(37,308)
												Net interest margin/ income
						3.07	%	3.32	%	(0.25)	%	non-taxable equivalent basis (GAAP)	$	534,020	$	579,619	$	(45,599)
Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the change in each category.
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity.
[2] Includes interest bearing demand deposits corresponding to certain government entities in Puerto Rico.

Popular, Inc.
Financial Supplement to Third Quarter 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-Sep-23		30-Sep-22	Variance		30-Sep-23		30-Sep-22		Variance					30-Sep-23		30-Sep-22		Variance		Rate		Volume
	(In millions)														(In thousands)
$	6,966	$	10,969	$	(4,003)	5.10	%	0.82	%	4.28	%	Money market investments		$	265,785	$	67,172	$	198,613	$	231,496	$	(32,883)
	28,205		29,371		(1,166)	2.18		2.16		0.02		Investment securities [1]			460,641		475,088		(14,447)		4,862		(19,309)
	32		59		(27)	4.52		6.23		(1.71)		Trading securities			1,084		2,725		(1,641)		(621)		(1,020)
												Total money market,
													investment and trading
	35,203		40,399		(5,196)	2.76		1.80		0.96			securities		727,510		544,985		182,525		235,737		(53,212)
												Loans:
	16,206		14,245		1,961	6.50		5.26		1.24			Commercial		787,381		560,408		226,973		143,107		83,866
	778		781		(3)	8.79		5.87		2.92			Construction		51,178		34,305		16,873		17,017		(144)
	1,630		1,447		183	6.31		5.92		0.39			Leasing		77,135		64,225		12,910		4,440		8,470
	7,434		7,315		119	5.45		5.33		0.12			Mortgage		303,777		292,253		11,524		6,712		4,812
	3,082		2,670		412	13.10		11.44		1.66			Consumer		302,050		228,401		73,649		35,342		38,307
	3,603		3,507		96	8.31		8.03		0.28			Auto		223,929		210,623		13,306		7,455		5,851
	32,733		29,965		2,768	7.13		6.20		0.93		Total loans			1,745,450		1,390,215		355,235		214,073		141,162
$	67,936	$	70,364	$	(2,428)	4.86	%	3.67	%	1.19	%	Total earning assets		$	2,472,960	$	1,935,200	$	537,760	$	449,810	$	87,950
												Interest bearing deposits:
$	24,407	$	26,385	$	(1,978)	2.93	%	0.26	%	2.67	%		NOW and money market [2]	$	534,567	$	52,072	$	482,495	$	488,704	$	(6,209)
	14,889		16,100		(1,211)	0.62		0.18		0.44			Savings		69,262		21,430		47,832		52,158		(4,326)
	7,603		6,913		690	2.23		0.77		1.46			Time deposits		126,995		40,005		86,990		71,425		15,565
	46,899		49,398		(2,499)	2.08		0.31		1.77		Total interest bearing deposits			730,824		113,507		617,317		612,287		5,030
	15,405		16,088		(683)								Non-interest bearing demand deposits
	62,304		65,486		(3,182)	1.57		0.23		1.34		Total deposits			730,824		113,507		617,317		612,287		5,030
	160		124		36	5.02		1.34		3.68		Short-term borrowings			5,987		1,249		4,738		4,298		440
												Other medium and
	1,140		948		192	5.12		4.25		0.87			long-term debt		43,660		30,168		13,492		7,506		5,986
												Total interest bearing
	48,199		50,470		(2,271)	2.16		0.38		1.78			liabilities (excluding demand deposits)		780,471		144,924		635,547		624,091		11,456

	4,332		3,806		526							Other sources of funds
$	67,936	$	70,364	$	(2,428)	1.54	%	0.28	%	1.26	%	Total source of funds			780,471		144,924		635,547		624,091		11,456
												Net interest margin/
						3.32	%	3.39	%	(0.07)	%		income on a taxable equivalent basis (Non-GAAP)		1,692,489		1,790,276		(97,787)	$	(174,281)	$	76,494
						2.70	%	3.29	%	(0.59)	%	Net interest spread
												Taxable equivalent adjustment			95,145		182,483		(87,338)
												Net interest margin/ income
						3.14	%	3.05	%	0.09	%		non-taxable equivalent basis (GAAP)	$	1,597,344	$	1,607,793	$	(10,449)
Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the change in each category.
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity.
[2] Includes interest bearing demand deposits corresponding to certain government entities in Puerto Rico.

Popular, Inc.
Financial Supplement to Third Quarter 2023 Earnings Release
Table G - Mortgage Banking Activities and Other Service Fees
(Unaudited)

Mortgage Banking Activities
		Quarters ended			Variance		Nine months ended		Variance
(In thousands)		30-Sep-23	30-Jun-23	30-Sep-22	Q3 2023 vs. Q2 2023	Q3 2023 vs. Q3 2022	30-Sep-23	30-Sep-22	2023 vs. 2022
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$8,025	$8,369	$9,126	$(344)	$(1,101)	$25,083	$27,635	$(2,552)
	Mortgage servicing rights fair value adjustments	(2,793)	(6,216)	(499)	3,423	(2,294)	(10,385)	2,846	(13,231)
Total mortgage servicing fees, net of fair value adjustments		5,232	2,153	8,627	3,079	(3,395)	14,698	30,481	(15,783)
Net (loss) gain on sale of loans, including valuation on loans held-for-sale		(335)	(61)	1,124	(274)	(1,459)	(133)	(374)	241
Trading account profit (loss):
	Unrealized gains on outstanding derivative positions	45	246	-	(201)	45	160	-	160
	Realized gains (losses) on closed derivative positions	494	111	(240)	383	734	661	6,325	(5,664)
Total trading account profit (loss)		539	357	(240)	182	779	821	6,325	(5,504)
Losses on repurchased loans, including interest advances		(43)	(133)	(63)	90	20	(277)	(544)	267
Total mortgage banking activities		$5,393	$2,316	$9,448	$3,077	$(4,055)	$15,109	$35,888	$(20,779)


Other Service Fees
		Quarters ended			Variance		Nine months ended		Variance
(In thousands)		30-Sep-23	30-Jun-23	30-Sep-22	Q3 2023 vs. Q2 2023	Q3 2023 vs. Q3 2022	30-Sep-23	30-Sep-22	2023 vs. 2022
Other service fees:
	Debit card fees	$13,577	$13,600	$12,133	$(23)	$1,444	$40,343	$36,794	$3,549
	Insurance fees	14,983	14,625	15,697	358	(714)	43,481	41,870	1,611
	Credit card fees	40,804	42,644	37,829	(1,840)	2,975	123,946	109,626	14,320
	Sale and administration of investment products	6,820	6,076	5,952	744	868	19,454	17,760	1,694
	Trust fees	6,381	6,600	5,506	(219)	875	18,756	17,576	1,180
	Other fees	10,842	10,720	9,285	122	1,557	31,768	21,361	10,407
Total other service fees		$93,407	$94,265	$86,402	$(858)	$7,005	$277,748	$244,987	$32,761

Popular, Inc.
Financial Supplement to Third Quarter 2023 Earnings Release
Table H - Loans and Deposits
(Unaudited)

Loans - Ending Balances
				Variance
(In thousands)	30-Sep-23	30-Jun-23	30-Sep-22	Q3 2023 vs. Q2 2023	Q3 2023 vs. Q3 2022
Loans held-in-portfolio:
Commercial
Commercial multi-family	$2,328,433	$2,331,499	$2,204,109	(3,066)	124,324
Commercial real estate non-owner occupied	5,035,130	4,744,256	4,517,475	290,874	517,655
Commercial real estate owner occupied	3,044,905	3,041,398	3,066,548	3,507	(21,643)
Commercial and industrial	6,527,082	6,251,147	5,578,727	275,935	948,355
Total Commercial	16,935,550	16,368,300	15,366,859	567,250	1,568,691
Construction	922,112	819,903	816,290	102,209	105,822
Leasing	1,698,114	1,661,523	1,538,504	36,591	159,610
Mortgage	7,585,111	7,449,078	7,311,713	136,033	273,398
Consumer
Credit cards	1,077,428	1,057,389	988,550	20,039	88,878
Home equity lines of credit	67,499	68,440	72,796	(941)	(5,297)
Personal	1,952,168	1,896,594	1,756,021	55,574	196,147
Auto	3,633,196	3,565,533	3,528,904	67,663	104,292
Other	158,135	144,162	143,551	13,973	14,584
Total Consumer	6,888,426	6,732,118	6,489,822	156,308	398,604
Total loans held-in-portfolio	$34,029,313	$33,030,922	$31,523,188	$998,391	$2,506,125
Loans held-for-sale:
Mortgage	$5,239	$9,509	$8,065	$(4,270)	$(2,826)
Credit cards	-	45,912	-	(45,912)	-
Total loans held-for-sale	$5,239	$55,421	$8,065	$(50,182)	$(2,826)
Total loans	$34,034,552	$33,086,343	$31,531,253	$948,209	$2,503,299


Deposits - Ending Balances
				Variance
(In thousands)	30-Sep-23	30-Jun-23	30-Sep-22	Q3 2023 vs. Q2 2023	Q3 2023 vs. Q3 2022
Demand deposits [1]	$27,942,782	$27,690,840	$28,773,328	$251,942	$(830,546)
Savings, NOW and money market deposits (non-brokered)	26,452,382	27,539,343	28,388,057	(1,086,961)	(1,935,675)
Savings, NOW and money market deposits (brokered)	734,479	772,783	728,651	(38,304)	5,828
Time deposits (non-brokered)	7,264,156	7,231,840	6,731,588	32,316	532,568
Time deposits (brokered CDs)	943,801	770,012	197,703	173,789	746,098
Total deposits	$63,337,600	$64,004,818	$64,819,327	$(667,218)	$(1,481,727)
[1] Includes interest and non-interest bearing demand deposits.

Popular, Inc.
Financial Supplement to Third Quarter 2023 Earnings Release
Table I - Loan Delinquency -BPPR Operations
(Unaudited)
30-Sep-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		$	4,407	$	176	$	184	$	4,767	$	290,047	$	294,814	$	184	$	-
Commercial real estate:
	Non-owner occupied		1,274		-		15,330		16,604		2,932,277		2,948,881		15,330		-
	Owner occupied		817		827		35,089		36,733		1,370,820		1,407,553		35,089		-
Commercial and industrial			4,022		1,728		24,733		30,483		4,299,335		4,329,818		21,624		3,109
Construction			-		-		6,578		6,578		163,929		170,507		6,578		-
Mortgage			241,962		100,679		430,430		773,071		5,516,197		6,289,268		187,443		242,987
Leasing			17,915		4,574		6,842		29,331		1,668,783		1,698,114		6,842		-
Consumer:
	Credit cards		11,218		8,133		17,719		37,070		1,040,341		1,077,411		-		17,719
	Home equity lines of credit		26		-		-		26		2,448		2,474		-		-
	Personal		19,586		12,476		18,582		50,644		1,712,358		1,763,002		18,582		-
	Auto		89,453		23,019		40,268		152,740		3,480,456		3,633,196		40,268		-
	Other		567		388		2,152		3,107		144,425		147,532		1,885		267
Total		$	391,247	$	152,000	$	597,907	$	1,141,154	$	22,621,416	$	23,762,570	$	333,825	$	264,082

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


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		$	629	$	(3)	$	-	$	626	$	(2,689)	$	(2,063)	$	-	$	-
Commercial real estate:
	Non-owner occupied		1,097		(512)		(7,612)		(7,027)		49,661		42,634		(7,612)		-
	Owner occupied		(424)		127		(743)		(1,040)		(19,465)		(20,505)		(743)		-
Commercial and industrial			1,425		1,000		(8,113)		(5,688)		296,683		290,995		(8,134)		21
Construction			-		(970)		(2,706)		(3,676)		448		(3,228)		(2,706)		-
Mortgage			20,775		11,724		(19,500)		12,999		107,981		120,980		(6,776)		(12,724)
Leasing			4,755		763		2,099		7,617		28,974		36,591		2,099		-
Consumer:
	Credit cards		1,712		1,822		3,534		7,068		12,971		20,039		-		3,534
	Home equity lines of credit		26		-		-		26		(122)		(96)		-		-
	Personal		4,721		816		1,144		6,681		70,355		77,036		1,144		-
	Auto		13,574		4,597		4,064		22,235		45,428		67,663		4,064		-
	Other		55		114		251		420		11,820		12,240		150		101
Total		$	48,345	$	19,478	$	(27,582)	$	40,241	$	602,045	$	642,286	$	(18,514)	$	(9,068)

Popular, Inc.
Financial Supplement to Third Quarter 2023 Earnings Release
Table J - Loan Delinquency - Popular U.S. Operations
(Unaudited)
30-Sep-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		$	1,332	$	-	$	404	$	1,736	$	2,031,883	$	2,033,619	$	404	$	-
Commercial real estate:
	Non-owner occupied		2,628		-		734		3,362		2,082,887		2,086,249		734		-
	Owner occupied		1,110		923		3,877		5,910		1,631,442		1,637,352		3,877		-
Commercial and industrial			3,000		464		3,709		7,173		2,190,091		2,197,264		3,579		130
Construction			-		-		-		-		751,605		751,605		-		-
Mortgage			946		22,313		11,980		35,239		1,260,604		1,295,843		11,980		-
Consumer:
	Credit cards		-		-		-		-		17		17		-		-
	Home equity lines of credit		1,045		335		4,085		5,465		59,560		65,025		4,085		-
	Personal		2,581		1,716		2,637		6,934		182,232		189,166		2,637		-
	Other		113		-		402		515		10,088		10,603		402		-
Total		$	12,755	$	25,751	$	27,828	$	66,334	$	10,200,409	$	10,266,743	$	27,698	$	130

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



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		$	(1,805)	$	-	$	(14)	$	(1,819)	$	816	$	(1,003)	$	(14)	$	-
Commercial real estate:
	Non-owner occupied		1,996		-		615		2,611		245,629		248,240		615		-
	Owner occupied		(696)		923		(1,218)		(991)		25,003		24,012		(1,218)		-
Commercial and industrial			536		(1,274)		(2,446)		(3,184)		(11,876)		(15,060)		(2,399)		(47)
Construction			-		-		-		-		105,437		105,437		-		-
Mortgage			(155)		16,878		(2,597)		14,126		927		15,053		(2,597)		-
Consumer:
	Credit cards		-		-		-		-		-		-		-		-
	Home equity lines of credit		581		286		(167)		700		(1,545)		(845)		(167)		-
	Personal		(185)		(9)		(89)		(283)		(21,179)		(21,462)		(89)		-
	Other		113		(154)		402		361		1,372		1,733		402		-
Total		$	385	$	16,650	$	(5,514)	$	11,521	$	344,584	$	356,105	$	(5,467)	$	(47)

Popular, Inc.
Financial Supplement to Third Quarter 2023 Earnings Release
Table K - Loan Delinquency - Consolidated
(Unaudited)

30-Sep-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		$	5,739	$	176	$	588	$	6,503	$	2,321,930	$	2,328,433	$	588	$	-
Commercial real estate:
	Non-owner occupied		3,902		-		16,064		19,966		5,015,164		5,035,130		16,064		-
	Owner occupied		1,927		1,750		38,966		42,643		3,002,262		3,044,905		38,966		-
Commercial and industrial			7,022		2,192		28,442		37,656		6,489,426		6,527,082		25,203		3,239
Construction			-		-		6,578		6,578		915,534		922,112		6,578		-
Mortgage			242,908		122,992		442,410		808,310		6,776,801		7,585,111		199,423		242,987
Leasing			17,915		4,574		6,842		29,331		1,668,783		1,698,114		6,842		-
Consumer:
	Credit cards		11,218		8,133		17,719		37,070		1,040,358		1,077,428		-		17,719
	Home equity lines of credit		1,071		335		4,085		5,491		62,008		67,499		4,085		-
	Personal		22,167		14,192		21,219		57,578		1,894,590		1,952,168		21,219		-
	Auto		89,453		23,019		40,268		152,740		3,480,456		3,633,196		40,268		-
	Other		680		388		2,554		3,622		154,513		158,135		2,287		267
Total		$	404,002	$	177,751	$	625,735	$	1,207,488	$	32,821,825	$	34,029,313	$	361,523	$	264,212

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

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		$	(1,176)	$	(3)	$	(14)	$	(1,193)	$	(1,873)	$	(3,066)	$	(14)	$	-
Commercial real estate:
	Non-owner occupied		3,093		(512)		(6,997)		(4,416)		295,290		290,874		(6,997)		-
	Owner occupied		(1,120)		1,050		(1,961)		(2,031)		5,538		3,507		(1,961)		-
Commercial and industrial			1,961		(274)		(10,559)		(8,872)		284,807		275,935		(10,533)		(26)
Construction			-		(970)		(2,706)		(3,676)		105,885		102,209		(2,706)		-
Mortgage			20,620		28,602		(22,097)		27,125		108,908		136,033		(9,373)		(12,724)
Leasing			4,755		763		2,099		7,617		28,974		36,591		2,099		-
Consumer:
	Credit cards		1,712		1,822		3,534		7,068		12,971		20,039		-		3,534
	Home equity lines of credit		607		286		(167)		726		(1,667)		(941)		(167)		-
	Personal		4,536		807		1,055		6,398		49,176		55,574		1,055		-
	Auto		13,574		4,597		4,064		22,235		45,428		67,663		4,064		-
	Other		168		(40)		653		781		13,192		13,973		552		101
Total		$	48,730	$	36,128	$	(33,096)	$	51,762	$	946,629	$	998,391	$	(23,981)	$	(9,115)

Popular, Inc.
Financial Supplement to Third Quarter 2023 Earnings Release
Table L - Non-Performing Assets
(Unaudited)
										Variance
(In thousands)	30-Sep-23	As a % of loans HIP by category		30-Jun-23	As a % of loans HIP by category		30-Sep-22	As a % of loans HIP by category		Q3 2023 vs. Q2 2023	Q3 2023 vs. Q3 2022
Non-accrual loans:
Commercial
Commercial multi-family	$588	-	%	$602	-	%	$251	-	%	$(14)	$337
Commercial real estate non-owner occupied	16,064	0.3		23,061	0.5		32,074	0.7		(6,997)	(16,010)
Commercial real estate owner occupied	38,966	1.3		40,927	1.3		28,985	0.9		(1,961)	9,981
Commercial and industrial	25,203	0.4		35,736	0.6		42,566	0.8		(10,533)	(17,363)
Total Commercial	80,821	0.5		100,326	0.6		103,876	0.7		(19,505)	(23,055)
Construction	6,578	0.7		9,284	1.1		-	-		(2,706)	6,578
Leasing	6,842	0.4		4,743	0.3		5,697	0.4		2,099	1,145
Mortgage	199,423	2.6		208,796	2.8		274,306	3.8		(9,373)	(74,883)
Consumer
Home equity lines of credit	4,085	6.1		4,252	6.2		3,970	5.5		(167)	115
Personal	21,219	1.1		20,164	1.1		19,378	1.1		1,055	1,841
Auto	40,268	1.1		36,204	1.0		34,432	1.0		4,064	5,836
Other Consumer	2,287	1.4		1,735	1.2		11,760	8.2		552	(9,473)
Total Consumer	67,859	1.0		62,355	0.9		69,540	1.1		5,504	(1,681)
Total non-performing loans held-in-portfolio	361,523	1.1	%	385,504	1.2	%	453,419	1.4	%	(23,981)	(91,896)
Other real estate owned (“OREO”)	82,322			86,216			93,239			(3,894)	(10,917)
Total non-performing assets [1]	$443,845			$471,720			$546,658			$(27,875)	$(102,813)
Accruing loans past due 90 days or more [2]	$264,212			$273,327			$340,503			$(9,115)	$(76,291)
Ratios:
Non-performing assets to total assets	0.64	%		0.67	%		0.77	%
Non-performing loans held-in-portfolio to loans held-in-portfolio	1.06			1.17			1.44
Allowance for credit losses to loans held-in-portfolio	2.09			2.12			2.23
Allowance for credit losses to non-performing loans, excluding loans held-for-sale	196.69			181.63			155.07
[1] There were no non-performing loans held-for-sale as of September 30, 2023, June 30, 2023 and September 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 $8 million at September 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 (June 30, 2023 - $7 million; September 30, 2022 - $9 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 $115 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of September 30, 2023 (June 30, 2023 - $133 million; September 30, 2022 - $198 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 (June 30, 2023- $39 million; September 30, 2022 - $42 million).

Popular, Inc.
Financial Supplement to Third Quarter 2023 Earnings Release
Table M - Activity in Non-Performing Loans
(Unaudited)

Commercial loans held-in-portfolio:
		Quarter ended			Quarter ended
		30-Sep-23			30-Jun-23
(In thousands)		BPPR	Popular U.S.	Popular, Inc.	BPPR	Popular U.S.	Popular, Inc.
Beginning balance NPLs		$88,716	$11,610	$100,326	$90,952	$11,048	$102,000
Plus:
	New non-performing loans	2,736	1,324	4,060	3,203	4,631	7,834
	Advances on existing non-performing loans	-	7	7	-	2	2
Less:
	Non-performing loans transferred to OREO	(138)	-	(138)	(21)	-	(21)
	Non-performing loans charged-off	(969)	(2,446)	(3,415)	(595)	(2,175)	(2,770)
	Loans returned to accrual status / loan collections	(18,118)	(1,901)	(20,019)	(4,823)	(1,896)	(6,719)
Ending balance NPLs		$72,227	$8,594	$80,821	$88,716	$11,610	$100,326

Construction loans held-in-portfolio:
		Quarter ended			Quarter ended
		30-Sep-23			30-Jun-23
(In thousands)		BPPR	Popular U.S.	Popular, Inc.	BPPR	Popular U.S.	Popular, Inc.
Beginning balance NPLs		$9,284	$-	$9,284	$-	$-	$-
Plus:
	New non-performing loans	-	-	-	9,284	-	9,284
Less:
	Non-performing loans charged-off	(2,537)	-	(2,537)	-	-	-
	Loans returned to accrual status / loan collections	(169)	-	(169)	-	-	-
Ending balance NPLs		$6,578	$-	$6,578	$9,284	$-	$9,284

Mortgage loans held-in-portfolio:
		Quarter ended			Quarter ended
		30-Sep-23			30-Jun-23
(In thousands)		BPPR	Popular U.S.	Popular, Inc.	BPPR	Popular U.S.	Popular, Inc.
Beginning balance NPLs		$194,219	$14,577	$208,796	$224,075	$14,719	$238,794
Plus:
	New non-performing loans	34,657	4,503	39,160	27,518	4,457	31,975
	Advances on existing non-performing loans	-	5	5	-	76	76
Less:
	Non-performing loans transferred to OREO	(5,519)	-	(5,519)	(9,226)	-	(9,226)
	Non-performing loans charged-off	152	-	152	271	-	271
	Loans returned to accrual status / loan collections	(36,066)	(7,105)	(43,171)	(48,419)	(4,675)	(53,094)
Ending balance NPLs		$187,443	$11,980	$199,423	$194,219	$14,577	$208,796


Total non-performing loans held-in-portfolio (excluding consumer):
		Quarter ended			Quarter ended
		30-Sep-23			30-Jun-23
(In thousands)		BPPR	Popular U.S.	Popular, Inc.	BPPR	Popular U.S.	Popular, Inc.
Beginning balance NPLs		$292,219	$26,187	$318,406	$315,027	$25,767	$340,794
Plus:
	New non-performing loans	37,393	5,827	43,220	40,005	9,088	49,093
	Advances on existing non-performing loans	-	12	12	-	78	78
Less:
	Non-performing loans transferred to OREO	(5,657)	-	(5,657)	(9,247)	-	(9,247)
	Non-performing loans charged-off	(3,354)	(2,446)	(5,800)	(324)	(2,175)	(2,499)
	Loans returned to accrual status / loan collections	(54,353)	(9,006)	(63,359)	(53,242)	(6,571)	(59,813)
Ending balance NPLs		$266,248	$20,574	$286,822	$292,219	$26,187	$318,406

Popular, Inc.
Financial Supplement to Third Quarter 2023 Earnings Release
Table N - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)


	Quarters ended
(In thousands)	30-Sep-23	30-Jun-23	30-Sep-22
Balance at beginning of period - loans held-in-portfolio	$700,200	$689,120	$681,750
Provision for credit losses (benefit)	43,514	35,661	39,519
Initial allowance for credit losses - PCD Loans	9	10	59
	743,723	724,791	721,328
Net loans charge-off (recovered)- BPPR
Commercial:
Commercial multi-family	-	(1)	-
Commercial real estate non-owner occupied	(168)	430	(368)
Commercial real estate owner occupied	166	(329)	(2,395)
Commercial and industrial	(10,547)	(1,431)	1,613
Total Commercial	(10,549)	(1,331)	(1,150)
Construction	2,611	-	-
Leasing	1,442	1,593	1,338
Mortgage	(3,800)	(3,384)	(2,165)
Consumer:
Credit cards	8,631	6,502	4,483
Home equity lines of credit	(30)	(25)	(129)
Personal	17,303	12,641	8,227
Auto	9,691	2,491	7,375
Other Consumer	301	200	417
Total Consumer	35,896	21,809	20,373
Total net charged-off (recovered) BPPR	$25,600	$18,687	$18,396

Net loans charge-off (recovered) - Popular U.S.
Commercial:
Commercial multi-family	(1)	(1)	(8)
Commercial real estate non-owner occupied	(66)	(66)	(2)
Commercial real estate owner occupied	1,202	156	(26)
Commercial and industrial	899	1,734	(475)
Total Commercial	2,034	1,823	(511)
Mortgage	(62)	(109)	(23)
Consumer:
Home equity lines of credit	12	(166)	(907)
Personal	5,032	3,708	1,237
Other Consumer	39	47	40
Total Consumer	5,083	3,589	370
Total net charged-off (recovered) Popular U.S.	$7,055	$5,303	$(164)
Total loans charged-off (recovered) - Popular, Inc.	$32,655	$23,990	$18,232
Net write- downs [1]	$-	$601	$-
Balance at end of period - loans held-in-portfolio	$711,068	$700,200	$703,096

Balance at beginning of period - unfunded commitments	$11,593	$9,415	$6,904
Provision for credit losses (benefit)	1,691	2,178	403
Balance at end of period - unfunded commitments [2]	$13,284	$11,593	$7,307


POPULAR, INC.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	0.39	%	0.29	%	0.24	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	133.25	%	148.65	%	216.76	%
BPPR
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	0.44	%	0.33	%	0.34	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	211.00	%	151.86	%	155.98	%
Popular U.S.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	0.28	%	0.22	%	(0.01)	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	(148.87)	%	137.32	%	N.M.	%
N.M. - Not meaningful.
[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 Third Quarter 2023 Earnings Release
Table O - Allowance for Credit Losses "ACL"- Loan Portfolios - Consolidated
(Unaudited)


30-Sep-23
(In thousands)	Total ACL	Total loans held-in-portfolio	ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$15,223	$2,328,433	0.65	%
Commercial real estate - non-owner occupied	67,149	5,035,130	1.33	%
Commercial real estate - owner occupied	48,109	3,044,905	1.58	%
Commercial and industrial	103,585	6,527,082	1.59	%
Total commercial	$234,066	$16,935,550	1.38	%
Construction	10,971	922,112	1.19	%
Mortgage	91,904	7,585,111	1.21	%
Leasing	10,198	1,698,114	0.60	%
Consumer:
Credit cards	72,550	1,077,428	6.73	%
Home equity lines of credit	2,387	67,499	3.54	%
Personal	126,116	1,952,168	6.46	%
Auto	155,436	3,633,196	4.28	%
Other consumer	7,440	158,135	4.70	%
Total consumer	$363,929	$6,888,426	5.28	%
Total	$711,068	$34,029,313	2.09	%



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	%




Variance
(In thousands)	Total ACL	Total loans held-in-portfolio	ACL to loans held-in-portfolio
Commercial:
Commercial multi-family	$(10,956)	$(3,066)	(0.47)	%
Commercial real estate - non-owner occupied	(4,567)	290,874	(0.18)	%
Commercial real estate - owner occupied	(3,298)	3,507	(0.11)	%
Commercial and industrial	3,934	275,935	-	%
Total commercial	$(14,887)	$567,250	(0.14)	%
Construction	(361)	102,209	(0.19)	%
Mortgage	(4,189)	136,033	(0.08)	%
Leasing	(3,729)	36,591	(0.24)	%
Consumer:
Credit cards	1,142	20,039	(0.02)	%
Home equity lines of credit	217	(941)	0.37	%
Personal	10,288	55,574	0.35	%
Auto	21,189	67,663	0.51	%
Other consumer	1,198	13,973	0.37	%
Total consumer	$34,034	$156,308	0.38	%
Total	$10,868	$998,391	(0.03)	%

Popular, Inc.
Financial Supplement to Third Quarter 2023 Earnings Release
Table P - Allowance for Credit Losses "ACL"- Loan Portfolios - BPPR Operations
(Unaudited)

30-Sep-23
BPPR
(In thousands)		Total ACL	Total loans held-in-portfolio	ACL to loans held-in-portfolio
Commercial:
	Commercial multi-family	$3,481	$294,814	1.18	%
	Commercial real estate - non-owner occupied	53,208	2,948,881	1.80	%
	Commercial real estate - owner occupied	41,493	1,407,553	2.95	%
	Commercial and industrial	87,579	4,329,818	2.02	%
Total commercial		$185,761	$8,981,066	2.07	%
Construction		5,457	170,507	3.20	%
Mortgage		79,900	6,289,268	1.27	%
Leasing		10,198	1,698,114	0.60	%
Consumer:
	Credit cards	72,550	1,077,411	6.73	%
	Home equity lines of credit	87	2,474	3.52	%
	Personal	107,707	1,763,002	6.11	%
	Auto	155,436	3,633,196	4.28	%
	Other consumer	7,438	147,532	5.04	%
Total consumer		$343,218	$6,623,615	5.18	%
Total		$624,534	$23,762,570	2.63	%


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	%


Variance
(In thousands)		Total ACL	Total loans held-in-portfolio	ACL to loans held-in-portfolio
Commercial:
	Commercial multi-family	(1,306)	(2,063)	(0.43)	%
	Commercial real estate - non-owner occupied	(158)	42,634	(0.04)	%
	Commercial real estate - owner occupied	(408)	(20,505)	0.02	%
	Commercial and industrial	5,942	290,995	-	%
Total commercial		$4,070	$311,061	(0.03)	%
Construction		(4,097)	(3,228)	(2.30)	%
Mortgage		(2,999)	120,980	(0.07)	%
Leasing		(3,729)	36,591	(0.24)	%
Consumer:
	Credit cards	1,142	20,039	(0.02)	%
	Home equity lines of credit	(9)	(96)	(0.22)	%
	Personal	11,661	77,036	0.41	%
	Auto	21,189	67,663	0.51	%
	Other consumer	1,198	12,240	0.43	%
Total consumer		$35,181	$176,882	0.40	%
Total		$28,426	$642,286	0.05	%

Popular, Inc.
Financial Supplement to Third Quarter 2023 Earnings Release
Table Q - Allowance for Credit Losses "ACL"- Loan Portfolios - POPULAR U.S. Operations
(Unaudited)

30-Sep-23
Popular U.S.
(In thousands)		Total ACL	Total loans held-in-portfolio	ACL to loans held-in-portfolio
Commercial:
	Commercial multi-family	$11,742	$2,033,619	0.58	%
	Commercial real estate - non-owner occupied	13,941	2,086,249	0.67	%
	Commercial real estate - owner occupied	6,616	1,637,352	0.40	%
	Commercial and industrial	16,006	2,197,264	0.73	%
Total commercial		$48,305	$7,954,484	0.61	%
Construction		5,514	751,605	0.73	%
Mortgage		12,004	1,295,843	0.93	%
Consumer:
	Credit cards	-	17	-	%
	Home equity lines of credit	2,300	65,025	3.54	%
	Personal	18,409	189,166	9.73	%
	Other consumer	2	10,603	0.02	%
Total consumer		$20,711	$264,811	7.82	%
Total		$86,534	$10,266,743	0.84	%

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	%


Variance
(In thousands)		Total ACL	Total loans held-in-portfolio	ACL to loans held-in-portfolio
Commercial:
	Commercial multi-family	$(9,650)	$(1,003)	(0.47)	%
	Commercial real estate - non-owner occupied	(4,409)	248,240	(0.33)	%
	Commercial real estate - owner occupied	(2,890)	24,012	(0.19)	%
	Commercial and industrial	(2,008)	(15,060)	(0.08)	%
Total commercial		$(18,957)	$256,189	(0.26)	%
Construction		3,736	105,437	0.45	%
Mortgage		(1,190)	15,053	(0.10)	%
Consumer:
	Credit cards	-	-	-	%
	Home equity lines of credit	226	(845)	0.39	%
	Personal	(1,373)	(21,462)	0.34	%
	Other consumer	-	1,733	-	%
Total consumer		$(1,147)	$(20,574)	0.16	%
Total		$(17,558)	$356,105	(0.21)	%

Popular, Inc.
Financial Supplement to Third Quarter 2023 Earnings Release
Table R - Reconciliation to GAAP Financial Measures
(Unaudited)


(In thousands, except share or per share information)	30-Sep-23		30-Jun-23		30-Sep-22
Total stockholders’ equity	$4,457,608		$4,565,009		$3,674,838
Less: Preferred stock	(22,143)		(22,143)		(22,143)
Less: Goodwill	(804,428)		(827,428)		(827,428)
Less: Other intangibles	(10,559)		(11,354)		(13,738)
Total tangible common equity	$3,620,478		$3,704,084		$2,811,529
Total assets	$69,736,936		$70,838,266		$70,729,675
Less: Goodwill	(804,428)		(827,428)		(827,428)
Less: Other intangibles	(10,559)		(11,354)		(13,738)
Total tangible assets	$68,921,949		$69,999,484		$69,888,509
Tangible common equity to tangible assets	5.25	%	5.29	%	4.02	%
Common shares outstanding at end of period	72,127,595		72,103,969		72,673,344
Tangible book value per common share	$50.20		$51.37		$38.69

	Quarterly average
Total stockholders’ equity [1]	$6,636,364		$6,553,488		$6,061,748
Less: Preferred Stock	(22,143)		(22,143)		(22,143)
Less: Goodwill	(827,177)		(827,427)		(759,318)
Less: Other intangibles	(11,083)		(11,875)		(24,039)
Total tangible equity	$5,775,961		$5,692,043		$5,256,248
Return on average tangible common equity	9.36	%	10.63	%	31.86	%
[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/20231026924931/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 the net income for Q3 2023?

The net income for Q3 2023 was $136.6 million.

How did net interest income change compared to Q2 2023?

Net interest income increased by $2.4 million compared to Q2 2023.

What happened to non-interest income?

Non-interest income decreased by $1.0 million.

Did operating expenses increase or decrease?

Operating expenses increased by $5.7 million.

What happened to NPLs?

NPLs decreased by $24.0 million.

How much did loans increase by?

Loans increased by $998.4 million.

What happened to ending deposit balances?

Ending deposit balances decreased by $667.2 million.

What is the Common Equity Tier 1 ratio?

The Common Equity Tier 1 ratio is 16.81%.

Popular, Inc. Announces Third Quarter 2023 Financial Results

FAQ

What was the net income for Q3 2023?

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What happened to non-interest income?

Did operating expenses increase or decrease?

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Popular, Inc. Announces Third Quarter 2023 Financial Results

FAQ

What was the net income for Q3 2023?

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What happened to non-interest income?

Did operating expenses increase or decrease?

What happened to NPLs?

How much did loans increase by?

What happened to ending deposit balances?

What is the Common Equity Tier 1 ratio?

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