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Popular, Inc. Announces Third Quarter 2021 Financial Results

Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $248.1 million for the quarter ended September 30, 2021, compared to net income of $218.1 million for the quarter ended June 30, 2021.

Ignacio Alvarez, President and Chief Executive Officer, said: “The third quarter was another strong quarter. We achieved net income of $248.1 million, driven by a reserve release of $61 million. The release reflects strong credit quality performance as well as a positive economic outlook. We continued to see higher credit and debit card spending, strong auto and mortgage originations as well as higher deposits. During the quarter we also continued to return capital to our shareholders, completing our $350 million accelerated repurchase program and announcing the redemption of $187 million in high-cost trust preferred securities. On October 15, 2021 we also completed a bolt-on acquisition of a national equipment leasing platform that complements our existing healthcare lending vertical. I am extremely proud of the work our team has accomplished during 2021 as we continue to serve our clients and communities.”

Significant Events

Financial Highlights

For the third quarter of 2021, the Corporation recorded net income of $248.1 million, compared to a net income of $218.1 million for the previous quarter. The third quarter’s results include a release in the allowance for credit losses of $61.2 million driven by improving credit quality and the improved macroeconomic outlook. Net Interest income was $489.4 million, an increase of $1.6 million compared to the previous quarter, mainly due to higher average earning assets and higher income from the loans issued under the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”), offset in part by a lower discount amortization of purchased credit deteriorated (“PCD”) loans. Net interest margin decreased 14 basis points to 2.77%. Total assets grew by $1.5 billion from the previous quarter, reflecting an increase in deposits across various sectors, principally from the Puerto Rico public sector.

Acquisition of K2 Capital Group LLC

On October 15, 2021, Popular Equipment Finance, LLC (“PEF”), a newly-formed wholly-owned subsidiary of Popular Bank (“PB”), completed the acquisition of certain assets and the assumption of certain liabilities of Minnesota-based K2 Capital Group LLC’s (“K2”) equipment leasing and financing business (the “Acquired Business”). PEF made a payment to K2 at closing of approximately $159 million in cash, representing a premium of approximately $40 million over the book value of K2’s net assets. An additional approximately $29 million in earnout payments could be payable to K2 over the next three years, contingent upon the achievement of certain agreed-upon financial targets during such period.

Specializing in the healthcare industry, the Acquired Business provides a variety of lease products, including operating and capital leases, and also offers private label vendor finance programs to equipment manufacturers and healthcare organizations. The acquisition provides PB with a national equipment leasing platform that complements its existing healthcare lending business.

As part of the transaction, PEF acquired approximately $119 million in net assets that consisted mainly of capital leases. All of K2’s former employees, including its management team, became PEF employees at the closing of the transaction. The transaction will be accounted for as a business combination.

Capital Actions

Accelerated Share Repurchase

On September 9, 2021, the Corporation completed its previously announced accelerated share repurchase program for the repurchase of an aggregate $350 million of Popular’s common stock. Under the terms of the accelerated share repurchase agreement (the “ASR Agreement”), on May 4, 2021, the Corporation made an initial payment of $350 million and received an initial delivery of 3,785,831 shares of Popular’s Common Stock (the “Initial Shares”). The transaction was accounted for as a treasury stock transaction. As a result of the receipt of the Initial Shares, the Corporation recognized in shareholders’ equity approximately $280 million in treasury stock and $70 million as a reduction in capital surplus. Upon the final settlement of the ASR Agreement, the Corporation received an additional 828,965 shares and recognized $61 million as treasury stock with a corresponding increase in its capital surplus account. The Corporation repurchased a total of 4,614,796 shares at an average purchase price of $75.84 under the ASR Agreement.

Redemption of Trust Preferred Securities

On September 30, 2021, the Corporation announced that it had sent a redemption notice to The Bank of New York Mellon, the Property Trustee for Popular Capital Trust I (the “Trust”), to redeem, on November 1, 2021, all outstanding 6.70% Cumulative Monthly Income Trust Preferred Securities (the “Capital Securities”) issued by the Trust (liquidation amount of $25 per security and amounting to $186,663,800 (or $181,063,250 after excluding Popular’s participation in the Trust of $5,600,550) in the aggregate). The redemption price for the Capital Securities will be equal to $25 per security plus accrued and unpaid distributions up to and excluding the redemption date in the amount of $0.139583 per security, for a total payment per security in the amount of $25.139583. Upon redemption, Popular intends to apply for delisting of the Popular Capital Trust I (NASDAQ: BPOPN) from the Nasdaq Global Select Market.

Earnings Highlights

 

(Unaudited)

Quarters ended

Nine months ended

(Dollars in thousands, except per share information)

30-Sep-21

30-Jun-21

30-Sep-20

30-Sep-21

30-Sep-20

Net interest income

$489,393

$487,802

$461,021

$1,456,307

$1,384,997

Provision for credit losses (benefit)

(61,173

)

(17,015

)

19,138

(160,414

)

271,318

Net interest income after provision for credit losses (benefit)

550,566

504,817

441,883

1,616,721

1,113,679

Other non-interest income

169,258

154,540

128,767

477,451

367,465

Operating expenses

388,168

368,185

361,066

1,131,881

1,081,905

Income before income tax

331,656

291,172

209,584

962,291

399,239

Income tax expense

83,542

73,093

41,168

233,466

68,893

Net income

$248,114

$218,079

$168,416

$728,825

$330,346

Net income applicable to common stock

$247,761

$217,726

$168,064

$727,766

$328,941

Net income per common share-basic

$3.09

$2.67

$2.01

$8.89

$3.80

Net income per common share-diluted

$3.09

$2.66

$2.00

$8.87

$3.80

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

Net interest income, on a taxable equivalent basis, is presented with its different components in Table D and E for the quarter and nine months ended September 30, 2021, and comparable periods. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.

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

Net interest income for the quarter ended September 30, 2021 was $489.4 million compared to $487.8 million in the previous quarter, an increase of $1.6 million. The total net impact on net interest income of the third quarter having one more day than the second quarter of 2021 is estimated at $3.8 million. Net interest income, on a taxable equivalent basis, for the third quarter of 2021 was $536.3 million, a decrease of $4.9 million when compared to $541.2 million in the second quarter of 2021. The decrease in net interest income on a taxable equivalent is related to lower exempt income mainly from mortgage-backed securities. On a taxable equivalent basis, the total net impact on net interest income of the third quarter having of one more day than the second quarter of 2021 is estimated at $4.1 million.

The net interest margin decreased 14 basis points to 2.77% compared to 2.91% in the previous quarter. The decrease in the net interest margin is due to a higher proportion of money market and investment securities, which carry a low yield, resulting from a higher volume of deposits in the quarter, lower discount amortization of PCD loans, partially offset by higher loan fees related to loans issued under the SBA PPP and a lower cost of deposits. On a taxable equivalent basis, net interest margin for the third quarter of 2021 was 3.04% compared to 3.22% in the second quarter of 2021, a decrease of 18 basis points. The main variances in net interest income on a taxable equivalent basis were:

  • Lower interest income from money market investments, trading and investment securities by $7.7 million due to lower volume and yield of mortgage-backed securities, partially offset by a higher volume of lower yielding U.S. Treasury notes

Partially offset by:

  • Higher interest income from loans by $1.5 million mainly due to the following:
    • Higher interest income from commercial loans driven by higher interest income and fees from PPP loans by $8.1 million and the impact of one more day in the quarter or $1.9 million, offset in part by a lower discount amortization on PCD loans of approximately $9.3 million; and
    • auto and lease financing continuing its positive trend increasing $147 million in average loan balances and reflecting an increase in interest income of $1.8 million. The decrease in yield of the portfolio is driven by lower amortization on a previously purchased auto loans portfolio
      Partially offset by:
    • Lower interest income from mortgage loans due to lower average volume resulting from continued amortization of the portfolio at Banco Popular de Puerto Rico (“BPPR”); and
    • lower interest income from consumer loans, mainly credit cards, due to the reversal last quarter of $1.6 million from the reserve for uncollectible interest.
  • Lower interest expense on deposits by $1.1 million resulting from a lower cost by 3 basis points driven by a higher volume of low yielding deposits, reduction of costs in several non-maturity deposit products and renewals of time deposits in a lower interest rate environment. These positive variances in deposit cost were partially offset by higher volume of interest-bearing deposits by $2.8 billion.

The Corporation recognized income of $22.0 million related to loans issued under the SBA PPP program during the third quarter, compared to $13.9 million in the previous quarter. These loans carried a yield of approximately 10.10% during this quarter, including the amortization of fee income received under the SBA PPP program, compared to 4.45% last quarter. At September 30, 2021, the Corporation had unamortized fee income related to the SBA PPP program of $40.0 million and outstanding loan balances of $669.8 million.

Net interest income for the BPPR segment amounted to $419.2 million for the quarter ended September 30, 2021, flat quarter over quarter. The net interest margin for the third quarter of 2021 was 2.75%, a decrease of 16 basis points when compared to 2.91% for the previous quarter. As discussed above, net interest margin was negatively impacted by a higher volume of money market and investment securities, lower amortization of discount on PCD loans, partially offset by higher fees resulting from the forgiveness and amortization of SBA PPP loans of approximately $8.1 million and lower deposit cost. The cost of interest-bearing deposits was 0.17%, compared to 0.18% reported in the second quarter. Total cost of deposits for the quarter was 0.13%, compared to 0.14% reported in the second quarter of 2021.

Net interest income for the PB segment was $80.0 million for the quarter ended September 30, 2021, compared to $78.7 million during the previous quarter. Net interest margin for the quarter was 3.36% higher than the 3.33% the previous quarter. The cost of interest-bearing deposits was 0.56%, compared to 0.60% in the previous quarter, decreasing for the eighth consecutive quarter. Total cost of deposits for the quarter, including demand deposits, was 0.43%, compared to 0.47% reported in the second quarter of 2021.

Non-interest income

Non-interest income increased by $14.8 million to $169.3 million for the quarter ended September 30, 2021, compared to $154.5 million for the quarter ended June 30, 2021. The variance in non-interest income was primarily driven by:

  • higher other service fees by $4.1 million mainly due to higher insurance fees by $1.6 million, higher other fees by $1.5 million mostly related to loan syndication activities and higher credit card fees by $0.7 million mainly in interchange income and late fees; and
  • higher other operating income by $10.0 million mostly due to a gain of $7.0 million recognized by BPPR as a result of the sale and partial leaseback of two corporate office buildings and higher net earnings from the combined portfolio of investments under the equity method by $3.0 million.

Refer to Table B for further details.

Operating expenses

Operating expenses for the third quarter of 2021 totaled $388.2 million, an increase of $20.0 million from the second quarter of 2021. The variance in operating expenses was driven primarily by:

  • higher personnel cost by $3.4 million due to higher salaries as a result of salary and annual merit increases granted during the quarter;
  • higher professional fees by $3.6 million mainly due to higher advisory expenses related to corporate initiatives;
  • higher business promotion expense by $1.6 million mainly due to promotional events during the quarter;
  • higher FDIC deposit insurance expense by $1.4 million mainly due to higher average total assets;
  • lower other real estate owned (OREO) net benefit by $2.6 million mainly due to lower gain on sale of mortgage properties;
  • higher credit and debit card processing, volume, interchange and other expenses by $2.0 million mainly due to higher volume of transactions; and
  • higher other operating expenses by $4.3 million due to higher printing and supplies cost by $1.1 million and lower gain on sale of repossessed auto units by $1.4 million.

Full-time equivalent employees were 8,342 as of September 30, 2021, compared to 8,439 as of June 30, 2021.

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

Income taxes

For the quarter ended September 30, 2021, the Corporation recorded an income tax expense of $83.5 million, compared to $73.1 million for the previous quarter. The increase in income tax expense was mainly attributable to higher income before tax during the third quarter of 2021 and lower exempt income. The effective tax rate (“ETR”) for the third quarter of 2021 was 25%, flat when compared with the previous quarter. The ETR of the Corporation is impacted by the composition and source of its taxable income.

Credit Quality

During the third quarter of 2021, the Corporation continued to exhibit favorable credit quality and low credit costs. Early delinquencies and NCOs, remained at relatively low levels when compared to the trend for the past 10-years, although higher than the prior quarter. We will continue to closely monitor COVID-19 pandemic related risks and the effects of the receding stimulus on economic conditions and on borrower performance. However, management believes that the improvement over the last few years in the risk profile of the Corporation’s loan portfolios positions Popular to operate successfully under the current environment.

The following presents credit quality results for the third quarter of 2021:

  • At September 30, 2021, total non-performing loans held-in-portfolio decreased by $52.3 million from June 30, 2021. BPPR’s NPLs decreased by $47.9 million, driven by lower commercial and mortgage NPLs by $34.3 million and $16.1 million, respectively. The commercial NPLs decrease was mainly due to repayment activity, coupled with charge-offs of $7.6 million related to certain collateral dependent loans, while the mortgage NPLs decrease was due to lower inflows for the quarter. PB’s NPLs decreased by $4.4 million, mostly related to a $5.9 million commercial loan pay-off. At September 30, 2021, the ratio of NPLs to total loans held-in-portfolio was 2.2%, compared to 2.4% in the second quarter of 2021.
  • Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $43.7 million quarter-over-quarter. In BPPR, total inflows decreased by $37.0 million, mostly driven by lower commercial inflows of $32.2 million, as the prior quarter included the inflow of a single $32.4 million relationship. Mortgage inflows decreased by $4.8 million from the prior quarter, as inflows continue trending lower than pre-pandemic levels. NPL inflows at PB decreased by $6.6 million during the quarter, mostly due to lower commercial inflows.
  • NCOs experienced a negative variance of $10.1 million from a net recovery of $1.3 million in the second quarter of 2021 to charge-offs of $8.8 million this quarter. BPPR ‘s NCOs increased by $10.8 million, primarily driven by higher commercial NCOs by $14.2 million partially offset by lower mortgage NCOs by $3.0 million. The increase reflected in the commercial NCOs was mostly driven by two commercial loans with aggregate charge-offs of $7.6 million, combined with the effect of recoveries of $7.9 million in the prior period from the resolution of a non-performing relationship. During the third quarter of 2021, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.12%, compared to (0.02)% in the second quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios.
  • At September 30, 2021, the allowance for credit losses (“ACL”) decreased by $67.2 million, or 8.6%, from the second quarter of 2021 to $718.6 million. The ACL incorporated updated macroeconomic scenarios for Puerto Rico and the United States, which continued to show a positive outlook for the economy. In BPPR, the ACL decreased by $45.1 million mainly driven by changes in the macroeconomic scenarios, particularly certain income-related variables, and credit quality. The allowance for the PB segment decreased by $22.1 million mainly driven by a reduction in the qualitative reserve for commercial real estate loans, also influenced by the changes in the macroeconomic scenarios. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.49% in the third quarter of 2021, compared to 2.70% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 113.6%, compared to 114.7% in the previous quarter.
  • Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The ACL is estimated by weighting the outputs of optimistic, baseline and pessimistic scenarios. Among the three scenarios used to estimate the ACL, the baseline is assigned the highest probability, followed by the pessimistic scenario given the uncertainties in the economic outlook and downside risk. The current baseline forecast continues to show a favorable economic scenario. The 2021 forecasted GDP growth is at 6.4% for U.S. and 3.8% for P.R., consistent with the previous 2021 forecast of 6.8% and 3.8%, respectively. The forecasted U.S. unemployment rate average for 2021 of 5.5% remained consistent with the previous estimate of 5.4%. In the case of P.R., the forecasted unemployment rate average for 2021 of 8.2% showed a slight improvement when compared to the previous forecast of 8.4%. Average unemployment rate in P.R. is expected to continue declining through 2022, which is now forecasted at 7.2%, improving from the previous forecast of 7.3%.
  • The provision for credit losses for the loan portfolios for the third quarter of 2021 reflected a benefit of $58.6 million, compared to a benefit of $17.5 million in the previous quarter, reflecting changes in the macroeconomic outlook, as well as credit quality trend. The provision for the BPPR segment was a benefit of $36.0 million, a favorable variance of $13.5 million compared to the previous quarter, while the provision expense for the PB segment was a benefit of $22.7 million, a favorable variance of $27.6 million from the previous quarter.
  • The provision for unfunded commitments for the third quarter of 2021 reflected a benefit of $1.5 million, compared to an expense of $0.4 million during the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $1.0 million, compared to an expense of $0.1 million in the second quarter of 2021. 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-Sep-21

30-Jun-21

30-Sep-20

Non-performing loans held-in-portfolio

$632,835

$685,183

$734,368

Non-performing loans held-for-sale

-

8,700

4,070

Other real estate owned (“OREO”)

76,828

73,272

100,592

Total non-performing assets

$709,663

$767,155

$839,030

Net charge-offs (recoveries) for the quarter

$8,823

$(1,291)

$16,859

Ratios:

Loans held-in-portfolio

$28,855,372

$29,062,617

$29,392,510

Non-performing loans held-in-portfolio to loans held-in-portfolio

2.19%

2.36%

2.50%

Allowance for credit losses to loans held-in-portfolio

2.49

2.70

3.15

Allowance for credit losses to non-performing loans, excluding loans held-for-sale

113.55

114.68

126.07

Refer to Table K for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios

(Unaudited)

Quarters ended

Nine months ended

(In thousands)

30-Sep-21

30-Jun-21

30-Sep-20

30-Sep-21

30-Sep-20

Provision for credit losses (benefit) - loan portfolios:

BPPR

$(35,992

)

$(22,488

)

$7,682

$(98,456

)

$181,109

Popular U.S.

(22,653

)

4,988

11,770

(53,468

)

90,442

Total provision for credit losses (benefit) - loan portfolios

$(58,645

)

$(17,500

)

$19,452

$(151,924

)

$271,551

Credit Quality by Segment

(Unaudited)

(In thousands)

Quarters ended

BPPR

30-Sep-21

30-Jun-21

30-Sep-20

Provision for credit losses (benefit) - loan portfolios

$(35,992

)

$(22,488

)

$7,682

Net charge-offs (recoveries)

9,336

(1,483

)

13,769

Total non-performing loans held-in-portfolio

608,871

656,789

693,676

Allowance / loans held-in-portfolio

2.92

%

3.13

%

3.48

%

Quarters ended

Popular U.S.

30-Sep-21

30-Jun-21

30-Sep-20

Provision for credit losses (benefit) - loan portfolios

$(22,653

)

$4,988

$11,770

Net charge-offs (recoveries)

(513

)

192

3,090

Total non-performing loans held-in-portfolio

23,964

28,394

40,692

Allowance / loans held-in-portfolio

1.32

%

1.57

%

2.22

%

Financial Condition Highlights

 

(Unaudited)

(In thousands)

30-Sep-21

30-Jun-21

30-Sep-20

Cash and money market investments

$18,065,211

$18,333,650

$12,425,126

Investment securities

24,697,876

22,647,401

21,478,048

Loans

28,855,372

29,062,617

29,392,510

Total assets

74,189,163

72,657,293

65,910,369

Deposits

66,013,561

64,641,776

56,021,983

Borrowings

1,263,413

1,267,545

1,407,424

Total liabilities

68,206,192

66,842,679

59,998,284

Stockholders’ equity

5,982,971

5,814,614

5,912,085

Total assets increased by $1.5 billion from the second quarter of 2021, driven by:

  • an increase of $2.1 billion in debt securities available-for-sale, mainly due to purchases of U.S. treasury securities, partially offset by paydowns of agency mortgage-backed securities;

    partially offset by:
  • a decrease of $0.3 billion in cash and money market investments due to purchases of debt securities available-for-sale; and
  • a decrease in loans held-in-portfolio by $0.2 billion mainly due to the forgiveness of approximately $0.4 billion in PPP loans during the quarter. Excluding the decrease in the PPP portfolio, loan balances increased by approximately $0.2 billion mainly in the commercial and auto loan portfolios in BPPR.

Total liabilities increased by $1.4 billion from the second quarter of 2021, mainly due to higher Puerto Rico public sector deposits by $0.7 billion and higher retail and commercial demand deposits by $0.5 billion at BPPR.

Stockholders’ equity increased by approximately $168.4 million from the second quarter of 2021, principally due to net income for the quarter of $248.1 million, partially offset by declared dividends of $36.3 million on common stock, $0.3 million in dividends on preferred stock and lower accumulated unrealized gains on debt securities available-for-sale by $47.0 million.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 17.36%, $74.66 and $66.01, respectively, at September 30, 2021, compared to 16.55%, $71.82 and $63.24 at June 30, 2021. 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 about 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 (including as a result of any participation in and execution of government programs related to the COVID-19 pandemic), 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. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions, and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, are generally intended to identify forward-looking statements.

More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Annual Report on Form 10-K for the year ended December 31, 2020, in our Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021, and in our Form 10-Q for the quarter ended September 30, 2021 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, October 20, 2021 at 11:00 a.m. Eastern Time. The call will be open to the public and broadcasted live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.

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

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 Wednesday, November 17, 2021. The replay dial-in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 928924.

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 2021 Earnings Release

Table A - Selected Ratios and Other Information

Table B - Consolidated Statement of Operations

Table C - Consolidated Statement of Financial Condition

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

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

Table F - Mortgage Banking Activities and Other Service Fees

Table G - Loans and Deposits

Table H - Loan Delinquency - PUERTO RICO OPERATIONS

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

Table J - Loan Delinquency - CONSOLIDATED

Table K - Non-Performing Assets

Table L - Activity in Non-Performing Loans

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

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

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

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

Table Q - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to Third Quarter 2021 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

Quarters ended

Nine months ended

30-Sep-21

30-Jun-21

30-Sep-20

30-Sep-21

30-Sep-20

Basic EPS

$3.09

$2.67

$2.01

$8.89

$3.80

Diluted EPS

$3.09

$2.66

$2.00

$8.87

$3.80

Average common shares outstanding

80,126,166

81,609,435

83,809,272

81,864,634

86,567,680

Average common shares outstanding - assuming dilution

80,274,942

81,772,789

83,836,151

82,014,113

86,645,691

Common shares outstanding at end of period

79,841,564

80,656,480

84,219,464

79,841,564

84,219,464

Market value per common share

$77.67

$75.05

$36.27

$77.67

$36.27

Market capitalization - (In millions)

$6,201

$6,053

$3,055

$6,201

$3,055

Return on average assets

1.34%

1.24%

1.06%

1.39%

0.76%

Return on average common equity

17.10%

15.43%

12.46%

17.09%

8.21%

Net interest margin (non-taxable equivalent basis)

2.77%

2.91%

3.06%

2.92%

3.39%

Net interest margin (taxable equivalent basis) -non-GAAP

3.04%

3.22%

3.37%

3.23%

3.72%

Common equity per share

$74.66

$71.82

$69.94

$74.66

$69.94

Tangible common book value per common share (non-GAAP) [1]

$66.01

$63.24

$61.69

$66.01

$61.69

Tangible common equity to tangible assets (non-GAAP) [1]

7.17%

7.09%

7.97%

7.17%

7.97%

Return on average tangible common equity [1]

19.44%

17.58%

14.32%

19.46%

9.44%

Tier 1 capital

17.43%

16.62%

16.01%

17.43%

16.01%

Total capital

19.90%

19.09%

18.49%

19.90%

18.49%

Tier 1 leverage

7.38%

7.34%

7.80%

7.38%

7.80%

Common Equity Tier 1 capital

17.36%

16.55%

15.93%

17.36%

15.93%

[1] Refer to Table Q for reconciliation to GAAP financial measures.

POPULAR, INC.

Financial Supplement to Third Quarter 2021 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

Quarters ended

Variance

Quarter ended

Variance

Nine months ended

Q3 2021

Q3 2021

(In thousands, except per share information)

30-Sep-21

30-Jun-21

vs. Q2 2021

30-Sep-20

vs. Q3 2020

30-Sep-21

30-Sep-20

Interest income:

Loans

$435,296

$433,781

$1,515

$431,286

$4,010

$1,303,726

$1,311,402

Money market investments

6,914

4,274

2,640

2,773

4,141

14,300

16,788

Investment securities

87,952

91,706

(3,754

)

79,142

8,810

265,348

243,938

Total interest income

530,162

529,761

401

513,201

16,961

1,583,374

1,572,128

Interest expense:

Deposits

27,029

28,060

(1,031

)

37,554

(10,525

)

85,290

142,435

Short-term borrowings

54

62

(8

)

416

(362

)

259

2,109

Long-term debt

13,686

13,837

(151

)

14,210

(524

)

41,518

42,587

Total interest expense

40,769

41,959

(1,190

)

52,180

(11,411

)

127,067

187,131

Net interest income

489,393

487,802

1,591

461,021

28,372

1,456,307

1,384,997

Provision for credit losses (benefit)

(61,173

)

(17,015

)

(44,158

)

19,138

(80,311

)

(160,414

)

271,318

Net interest income after provision for credit losses (benefit)

550,566

504,817

45,749

441,883

108,683

1,616,721

1,113,679

Service charges on deposit accounts

41,312

40,153

1,159

36,849

4,463

121,085

108,671

Other service fees

80,445

76,382

4,063

69,879

10,566

227,455

186,736

Mortgage banking activities

8,307

7,448

859

(9,526

)

17,833

33,098

671

Net gain on sale of debt securities

23

-

23

41

(18

)

23

41

Net (loss) gain, including impairment, on equity securities

(401

)

1,565

(1,966

)

5,150

(5,551

)

1,585

4,869

Net profit (loss) on trading account debt securities

58

(47

)

105

20

38

(34

)

593

Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale

-

(73

)

73

(2,198

)

2,198

(73

)

981

Adjustments (expense) to indemnity reserves on loans sold

2,038

1,668

370

4,183

(2,145

)

3,008

(1,770

)

Other operating income

37,476

27,444

10,032

24,369

13,107

91,304

66,673

Total non-interest income

169,258

154,540

14,718

128,767

40,491

477,451

367,465

Operating expenses:

Personnel costs

Salaries

95,185

90,294

4,891

91,891

3,294

274,814

278,116

Commissions, incentives and other bonuses

25,892

26,374

(482

)

17,849

8,043

85,484

59,183

Pension, postretirement and medical insurance

13,893

13,289

604

10,639

3,254

38,106

31,669

Other personnel costs, including payroll taxes

22,677

24,247

(1,570

)

15,562

7,115

72,926

52,970

Total personnel costs

157,647

154,204

3,443

135,941

21,706

471,330

421,938

Net occupancy expenses

24,896

24,562

334

25,907

(1,011

)

75,471

76,552

Equipment expenses

22,537

22,805

(268

)

24,088

(1,551

)

66,917

66,537

Other taxes

14,459

13,205

1,254

13,918

541

41,623

40,922

Professional fees

Collections, appraisals and other credit related fees

3,166

3,486

(320

)

2,862

304

9,972

9,640

Programming, processing and other technology services

69,221

67,152

2,069

64,876

4,345

202,739

187,082

Legal fees, excluding collections

2,535

2,367

168

2,707

(172

)

7,267

7,877

Other professional fees

29,787

28,148

1,639

26,029

3,758

85,832

85,493

Total professional fees

104,709

101,153

3,556

96,474

8,235

305,810

290,092

Communications

6,133

6,005

128

5,694

439

18,971

17,222

Business promotion

18,116

16,511

1,605

14,664

3,452

47,148

41,142

FDIC deposit insurance

7,181

5,742

1,439

6,568

613

18,891

16,988

Other real estate owned (OREO) (income) expenses

(1,722

)

(4,299

)

2,577

(1,615

)

(107

)

(10,554

)

520

Credit and debit card processing, volume, interchange and other expenses

12,960

10,917

2,043

11,744

1,216

36,331

31,899

Other operating expenses

Operational losses

7,147

6,528

619

8,837

(1,690

)

21,571

21,339

All other

13,322

9,597

3,725

17,770

(4,448

)

35,283

51,409

Total other operating expenses

20,469

16,125

4,344

26,607

(6,138

)

56,854

72,748

Amortization of intangibles

783

1,255

(472

)

1,076

(293

)

3,089

5,345

Total operating expenses

388,168

368,185

19,983

361,066

27,102

1,131,881

1,081,905

Income before income tax

331,656

291,172

40,484

209,584

122,072

962,291

399,239

Income tax expense

83,542

73,093

10,449

41,168

42,374

233,466

68,893

Net income

$248,114

$218,079

$30,035

$168,416

$79,698

$728,825

$330,346

Net income applicable to common stock

$247,761

$217,726

$30,035

$168,064

$79,697

$727,766

$328,941

Net income per common share - basic

$3.09

$2.67

$0.42

$2.01

$1.08

$8.89

$3.80

Net income per common share - diluted

$3.09

$2.66

$0.43

$2.00

$1.09

$8.87

$3.80

Dividends Declared per Common Share

$0.45

$0.45

$-

$0.40

$0.05

$1.30

$1.20

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

Variance

Q3 2021 vs.

(In thousands)

30-Sep-21

30-Jun-21

30-Sep-20

Q2 2021

Assets:

Cash and due from banks

$538,973

$530,849

$565,202

$8,124

Money market investments

17,526,238

17,802,801

11,859,924

(276,563

)

Trading account debt securities, at fair value

36,064

35,931

33,053

133

Debt securities available-for-sale, at fair value

24,391,226

22,335,167

21,177,839

2,056,059

Debt securities held-to-maturity, at amortized cost

85,655

88,801

93,163

(3,146

)

Less: Allowance for credit losses

9,222

10,214

12,421

(992

)

Total debt securities held-to-maturity, net

76,433

78,587

80,742

(2,154

)

Equity securities

184,931

187,502

173,993

(2,571

)

Loans held-for-sale, at lower of cost or fair value

91,313

85,315

102,760

5,998

Loans held-in-portfolio

29,089,241

29,286,225

29,586,348

(196,984

)

Less: Unearned income

233,869

223,608

193,838

10,261

Allowance for credit losses

718,575

785,790

925,850

(67,215

)

Total loans held-in-portfolio, net

28,136,797

28,276,827

28,466,660

(140,030

)

Premises and equipment, net

487,526

486,443

510,473

1,083

Other real estate

76,828

73,272

100,592

3,556

Accrued income receivable

200,649

203,419

204,233

(2,770

)

Mortgage servicing rights, at fair value

116,567

119,467

123,552

(2,900

)

Other assets

1,634,839

1,750,151

1,816,706

(115,312

)

Goodwill

671,122

671,122

671,122

-

Other intangible assets

19,657

20,440

23,518

(783

)

Total assets

$74,189,163

$72,657,293

$65,910,369

$1,531,870

Liabilities and Stockholders’ Equity:

Liabilities:

Deposits:

Non-interest bearing

$15,147,567

$14,920,887

$13,546,432

$226,680

Interest bearing

50,865,994

49,720,889

42,475,551

1,145,105

Total deposits

66,013,561

64,641,776

56,021,983

1,371,785

Assets sold under agreements to repurchase

86,470

90,925

106,028

(4,455

)

Other short-term borrowings

-

-

100,000

-

Notes payable

1,176,943

1,176,620

1,201,396

323

Other liabilities

929,218

933,358

2,568,877

(4,140

)

Total liabilities

68,206,192

66,842,679

59,998,284

1,363,513

Stockholders’ equity:

Preferred stock

22,143

22,143

22,143

-

Common stock

1,046

1,045

1,045

1

Surplus

4,569,641

4,506,659

4,521,689

62,982

Retained earnings

2,882,340

2,670,885

2,168,153

211,455

Treasury stock

(1,352,104

)

(1,290,427

)

(1,016,361

)

(61,677

)

Accumulated other comprehensive (loss) income, net of tax

(140,095

)

(95,691

)

215,416

(44,404

)

Total stockholders’ equity

5,982,971

5,814,614

5,912,085

168,357

Total liabilities and stockholders’ equity

$74,189,163

$72,657,293

$65,910,369

$1,531,870

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

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

(Unaudited)

Quarters ended

Variance

30-Sep-21

30-Jun-21

30-Sep-20

Q3 2021 vs. Q2 2021

Q3 2021 vs. Q3 2020

($ amounts in millions)

Average
balance

Income /
Expense

Yield /
Rate

Average
balance

Income /
Expense

Yield /
Rate

Average
balance

Income /
Expense

Yield /
Rate

Average
balance

Income /
Expense

Yield /
Rate

Average
balance

Income /
Expense

Yield /
Rate

Assets:

Interest earning assets:

Money market, trading and investment securities

$41,279

$129.8

1.25

%

$38,136

$137.5

1.44

%

$31,337

$117.5

1.49

%

$3,143

($7.7)

(0.19)

%

$9,942

$12.3

(0.24)

%

Loans:

Commercial

13,265

179.2

5.36

13,539

176.9

5.24

13,669

170.1

4.95

(274)

2.3

0.12

(404)

9.1

0.41

Construction

854

11.6

5.40

858

11.6

5.43

930

13.3

5.67

(4)

-

(0.03)

(76)

(1.7)

(0.27)

Mortgage

7,652

97.8

5.11

7,765

99.4

5.12

7,094

95.8

5.40

(113)

(1.6)

(0.01)

558

2.0

(0.29)

Consumer

2,435

67.7

11.03

2,431

68.7

11.34

2,722

76.7

11.21

4

(1.0)

(0.31)

(287)

(9.0)

(0.18)

Auto

3,372

71.2

8.37

3,280

70.1

8.58

3,006

68.6

9.08

92

1.1

(0.21)

366

2.6

(0.71)

Lease financing

1,317

19.7

5.99

1,262

19.0

6.01

1,122

17.1

6.08

55

0.7

(0.02)

195

2.6

(0.09)

Total loans

28,895

447.2

6.15

29,135

445.7

6.13

28,543

441.6

6.16

(240)

1.5

0.02

352

5.6

(0.01)

Total interest earning assets

$70,174

$577.0

3.27

%

$67,271

$583.2

3.47

%

$59,880

$559.1

3.72

%

$2,903

$(6.2)

(0.20)

%

$10,294

$17.9

(0.45)

%

Allowance for credit losses - loan portfolio

(778)

(801)

(923)

23

145

Allowance for credit losses - investment securities

(10)

(10)

(13)

-

3

Other non-interest earning assets

3,901

3,906

4,176

(5)

(275)

Total average assets

$73,287

$70,366

$63,120

$2,921

$10,167

Liabilities and Stockholders' Equity:

Interest bearing deposits:

NOW and money market

$27,773

$7.9

0.11

%

$25,102

$8.0

0.13

%

$21,225

$9.1

0.17

%

$2,671

$(0.1)

(0.02)

%

$6,548

$(1.2)

(0.06)

%

Savings

15,621

6.4

0.16

15,384

6.9

0.18

13,103

8.3

0.25

237

(0.5)

(0.02)

2,518

(1.9)

(0.09)

Time deposits

6,957

12.7

0.73

7,104

13.2

0.74

7,810

20.2

1.03

(147)

(0.5)

(0.01)

(853)

(7.5)

(0.30)

Total interest-bearing deposits

50,351

27.0

0.21

47,590

28.1

0.24

42,138

37.6

0.35

2,761

(1.1)

(0.03)

8,213

(10.6)

(0.14)

Borrowings

1,284

13.7

4.28

1,316

13.9

4.24

1,358

14.6

4.31

(32)

(0.2)

0.04

(74)

(0.9)

(0.03)

Total interest-bearing liabilities

51,635

40.7

0.31

48,906

42.0

0.34

43,496

52.2

0.48

2,729

(1.3)

(0.03)

8,139

(11.5)

(0.17)

Net interest spread

2.96

%

3.13

%

3.24

%

(0.17)

%

(0.28)

%

Non-interest bearing deposits

14,955

14,920

12,806

35

2,149

Other liabilities

927

857

1,435

70

(508)

Stockholders' equity

5,770

5,683

5,383

87

387

Total average liabilities and stockholders' equity

$73,287

$70,366

$63,120

$2,921

$10,167

Net interest income / margin on a taxable equivalent basis (Non-GAAP)

$536.3

3.04

%

$541.2

3.22

%

$506.9

3.37

%

($4.9)

(0.18)

%

$29.4

(0.33)

%

Taxable equivalent adjustment

46.9

53.4

45.8

(6.5)

1.1

Net interest income / margin non-taxable equivalent basis (GAAP)

$489.4

2.77

%

$487.8

2.91

%

$461.0

3.06

%

$1.6

(0.14)

%

$28.3

(0.29)

%

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

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

(Unaudited)

Nine months ended

30-Sep-21

30-Sep-20

Variance

Average

Income /

Yield /

Average

Income /

Yield /

Average

Income /

Yield /

($ amounts in millions)

balance

Expense

Rate

balance

Expense

Rate

balance

Expense

Rate

Assets:

Interest earning assets:

Money market, trading and investment securities

$37,751

$399.8

1.42

%

$26,497

$364.7

1.84

%

$11,254

$35.1

(0.42)

%

Loans:

Commercial

13,475

535.1

5.32

13,122

522.1

5.31

353

13.0

0.01

Construction

874

35.1

5.39

909

39.6

5.83

(35)

(4.5)

(0.44)

Mortgage

7,761

295.6

5.08

7,054

281.2

5.32

707

14.4

(0.24)

Consumer

2,460

206.9

11.24

2,916

248.9

11.43

(456)

(42.0)

(0.19)

Auto

3,285

209.5

8.55

2,985

202.4

9.06

300

7.1

(0.51)

Lease financing

1,265

57.1

6.01

1,092

49.5

6.04

173

7.6

(0.03)

Total loans

29,120

1,339.3

6.16

28,078

1,343.7

6.39

1,042

(4.4)

(0.23)

Total interest earning assets

$66,871

$1,739.1

3.48

%

$54,575

$1,708.4

4.18

%

$12,296

$30.7

(0.70)

%

Allowance for credit losses - loan portfolio

(822)

(886)

64

Allowance for credit losses - investment securities

(10)

(13)

3

Other non-interest earning assets

3,900

4,100

(200)

Total average assets

$69,939

$57,776

$12,163

Liabilities and Stockholders' Equity:

Interest bearing deposits:

NOW and money market

$25,201

$24.2

0.13

%

$18,956

$45.9

0.32

%

$6,245

($21.7)

(0.19)

%

Savings

15,127

20.3

0.18

11,899

30.2

0.34

3,228

(9.9)

(0.16)

Time deposits

7,108

40.8

0.77

8,076

66.3

1.10

(968)

(25.5)

(0.33)

Total interest-bearing deposits

47,436

85.3

0.24

38,931

142.4

0.49

8,505

(57.1)

(0.25)

Borrowings

1,315

41.8

4.25

1,340

44.7

4.45

(25)

(2.9)

(0.20)

Total interest-bearing liabilities

48,751

127.1

0.35

40,271

187.1

0.62

8,480

(60.0)

(0.27)

Net interest spread

3.13

%

3.56

%

(0.43)

%

Non-interest bearing deposits

14,428

10,945

3,483

Other liabilities

1,044

1,180

(136)

Stockholders' equity

5,716

5,380

336

Total average liabilities and stockholders' equity

$69,939

$57,776

$12,163

Net interest income / margin on a taxable equivalent basis (Non-GAAP)

$1,612.0

3.23

%

$1,521.3

3.72

%

$90.7

(0.49)

%

Taxable equivalent adjustment

155.7

136.3

19.4

Net interest income / margin non-taxable equivalent basis (GAAP)

$1,456.3

2.92

%

$1,385.0

3.39

%

$71.3

(0.47)

%

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

Table F - Mortgage Banking Activities and Other Service Fees

(Unaudited)

Mortgage Banking Activities

Quarters ended

Variance

Nine months ended

Variance

(In thousands)

30-Sep-21

30-Jun-21

30-Sep-20

Q3 2021
vs.Q2 2021

Q3 2021
vs.Q3 2020

30-Sep-21

30-Sep-20

2021 vs.
2020

Mortgage servicing fees, net of fair value adjustments:

Mortgage servicing fees

$9,376

$9,522

$12,966

$(146

)

$(3,590

)

$28,613

$32,992

$(4,379

)

Mortgage servicing rights fair value adjustments

(5,979

)

(6,239

)

(20,491

)

260

14,512

(11,706

)

(33,360

)

21,654

Total mortgage servicing fees, net of fair value adjustments

3,397

3,283

(7,525

)

114

10,922

16,907

(368

)

17,275

Net gain on sale of loans, including valuation on loans held-for-sale

6,084

5,197

10,916

887

(4,832

)

16,256

20,389

(4,133

)

Trading account (loss) profit:

Unrealized losses on outstanding derivative positions

-

-

(4

)

-

4

-

(4

)

4

Realized (losses) gains on closed derivative positions

(1,004

)

(866

)

(1,958

)

(138

)

954

632

(8,391

)

9,023

Total trading account (loss) profit

(1,004

)

(866

)

(1,962

)

(138

)

958

632

(8,395

)

9,027

Losses on repurchased loans, including interest advances

(170

)

(166

)

(10,955

)

(4

)

10,785

(697

)

(10,955

)

10,258

Total mortgage banking activities

$8,307

$7,448

$(9,526

)

$859

$17,833

$33,098

$671

$32,427

Other Service Fees

Quarters ended

Variance

Nine months ended

Variance

(In thousands)

30-Sep-21

30-Jun-21

30-Sep-20

Q3 2021
vs.Q2 2021

Q3 2021
vs.Q3 2020

30-Sep-21

30-Sep-20

2021 vs.
2020

Other service fees:

Debit card fees

$12,210

$12,458

$11,123

$(248

)

$1,087

$36,245

$28,442

$7,803

Insurance fees

14,385

12,773

13,941

1,612

444

39,986

38,211

1,775

Credit card fees

33,409

32,726

27,077

683

6,332

94,826

68,025

26,801

Sale and administration of investment products

6,216

5,970

5,094

246

1,122

17,726

16,267

1,459

Trust fees

6,453

6,165

4,886

288

1,567

18,460

15,692

2,768

Other fees

7,772

6,290

7,758

1,482

14

20,212

20,099

113

Total other service fees

$80,445

$76,382

$69,879

$4,063

$10,566

$227,455

$186,736

$40,719

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

Table G - Loans and Deposits

(Unaudited)

Loans - Ending Balances

Variance

(In thousands)

30-Sep-21

30-Jun-21

30-Sep-20

Q3 2021 vs.Q2
2021

Q3 2021 vs.Q3
2020

Loans held-in-portfolio:

Commercial

$13,303,671

$13,437,932

$13,620,069

$(134,261

)

$(316,398

)

Construction

801,040

865,113

943,747

(64,073

)

(142,707

)

Lease financing

1,348,679

1,297,928

1,153,108

50,751

195,571

Mortgage

7,539,152

7,678,478

7,924,441

(139,326

)

(385,289

)

Auto

3,376,694

3,289,027

3,045,453

87,667

331,241

Consumer

2,486,136

2,494,139

2,705,692

(8,003

)

(219,556

)

Total loans held-in-portfolio

$28,855,372

$29,062,617

$29,392,510

$(207,245

)

$(537,138

)

Loans held-for-sale:

Commercial

$-

$1,700

$4,070

$(1,700

)

$(4,070

)

Construction

-

7,000

-

(7,000

)

-

Mortgage

91,313

76,615

98,690

14,698

(7,377

)

Total loans held-for-sale

$91,313

$85,315

$102,760

$5,998

$(11,447

)

Total loans

$28,946,685

$29,147,932

$29,495,270

$(201,247

)

$(548,585

)

Deposits - Ending Balances

Variance

(In thousands)

30-Sep-21

30-Jun-21

30-Sep-20

Q3 2021 vs. Q2
2021

Q3 2021 vs.Q3
2020

Demand deposits [1]

$25,495,481

$24,497,918

$22,929,040

$997,563

$2,566,441

Savings, NOW and money market deposits (non-brokered)

32,867,805

32,452,829

24,696,244

414,976

8,171,561

Savings, NOW and money market deposits (brokered)

718,155

683,021

551,770

35,134

166,385

Time deposits (non-brokered)

6,906,509

6,979,349

7,664,361

(72,840

)

(757,852

)

Time deposits (brokered CDs)

25,611

28,659

180,568

(3,048

)

(154,957

)

Total deposits

$66,013,561

$64,641,776

$56,021,983

$1,371,785

$9,991,578

[1] Includes interest and non-interest bearing demand deposits.

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

Table H - Loan Delinquency - Puerto Rico Operations

(Unaudited)

30-Sep-21

Puerto Rico

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

days

or more

past due

Current

Loans HIP

loans

loans

Commercial multi-family

$

392

$

-

$

396

$

788

$

149,639

$

150,427

$

396

$

-

Commercial real estate:

Non-owner occupied

661

17,383

60,143

78,187

2,268,441

2,346,628

60,143

-

Owner occupied

2,719

614

71,863

75,196

1,394,503

1,469,699

71,863

-

Commercial and industrial

1,641

576

51,456

53,673

3,618,266

3,671,939

50,992

464

Construction

-

-

14,877

14,877

112,602

127,479

14,877

-

Mortgage

197,955

76,345

896,208

1,170,508

5,204,541

6,375,049

354,555

541,653

Leasing

8,193

1,969

2,542

12,704

1,335,975

1,348,679

2,542

-

Consumer:

Credit cards

5,211

3,667

7,558

16,436

870,139

886,575

-

7,558

Home equity lines of credit

46

-

-

46

3,507

3,553

-

-

Personal

9,329

5,954

21,646

36,929

1,238,448

1,275,377

21,646

-

Auto

52,486

11,663

17,345

81,494

3,295,200

3,376,694

17,345

-

Other

393

76

14,621

15,090

108,492

123,582

14,512

109

Total

$

279,026

$

118,247

$

1,158,655

$

1,555,928

$

19,599,753

$

21,155,681

$

608,871

$

549,784

30-Jun-21

Puerto Rico

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

days

or more

past due

Current

Loans HIP

loans

loans

Commercial multi-family

$

128

$

-

$

397

$

525

$

151,258

$

151,783

$

397

$

-

Commercial real estate:

Non-owner occupied

32,749

-

72,378

105,127

1,888,302

1,993,429

72,378

-

Owner occupied

3,995

604

79,808

84,407

1,380,022

1,464,429

79,808

-

Commercial and industrial

2,314

682

65,727

68,723

3,952,675

4,021,398

65,120

607

Construction

-

3,080

14,877

17,957

124,990

142,947

14,877

-

Mortgage

164,779

73,492

995,175

1,233,446

5,281,711

6,515,157

370,653

624,522

Leasing

6,054

2,103

2,286

10,443

1,287,485

1,297,928

2,286

-

Consumer:

Credit cards

4,371

2,826

8,021

15,218

864,912

880,130

-

8,021

Home equity lines of credit

-

-

-

-

3,489

3,489

-

-

Personal

9,405

4,444

23,861

37,710

1,227,582

1,265,292

23,861

-

Auto

39,032

7,405

13,286

59,723

3,229,304

3,289,027

13,286

-

Other

214

97

14,288

14,599

108,427

123,026

14,123

165

Total

$

263,041

$

94,733

$

1,290,104

$

1,647,878

$

19,500,157

$

21,148,035

$

656,789

$

633,315

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

$

264

$

-

$

(1

)

$

263

$

(1,619

)

$

(1,356

)

$

(1

)

$

-

Commercial real estate:

Non-owner occupied

(32,088

)

17,383

(12,235

)

(26,940

)

380,139

353,199

(12,235

)

-

Owner occupied

(1,276

)

10

(7,945

)

(9,211

)

14,481

5,270

(7,945

)

-

Commercial and industrial

(673

)

(106

)

(14,271

)

(15,050

)

(334,409

)

(349,459

)

(14,128

)

(143

)

Construction

-

(3,080

)

-

(3,080

)

(12,388

)

(15,468

)

-

-

Mortgage

33,176

2,853

(98,967

)

(62,938

)

(77,170

)

(140,108

)

(16,098

)

(82,869

)

Leasing

2,139

(134

)

256

2,261

48,490

50,751

256

-

Consumer:

Credit cards

840

841

(463

)

1,218

5,227

6,445

-

(463

)

Home equity lines of credit

46

-

-

46

18

64

-

-

Personal

(76

)

1,510

(2,215

)

(781

)

10,866

10,085

(2,215

)

-

Auto

13,454

4,258

4,059

21,771

65,896

87,667

4,059

-

Other

179

(21

)

333

491

65

556

389

(56

)

Total

$

15,985

$

23,514

$

(131,449

)

$

(91,950

)

$

99,596

$

7,646

$

(47,918

)

$

(83,531

)

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

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

(Unaudited)

September 30, 2021

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

$

-

$

22,171

$

-

$

22,171

$

1,709,508

$

1,731,679

$

-

$

-

Commercial real estate:

Non-owner occupied

2,569

4,632

374

7,575

2,029,514

2,037,089

374

-

Owner occupied

1,158

-

986

2,144

343,430

345,574

986

-

Commercial and industrial

804

1

1,428

2,233

1,548,403

1,550,636

1,427

1

Construction

14,978

-

-

14,978

658,583

673,561

-

-

Mortgage

1,369

2,833

14,488

18,690

1,145,413

1,164,103

14,488

-

Consumer:

Credit cards

-

-

-

-

26

26

-

-

Home equity lines of credit

690

76

5,941

6,707

73,042

79,749

5,941

-

Personal

588

544

748

1,880

111,598

113,478

748

-

Other

16

-

-

16

3,780

3,796

-

-

Total

$

22,172

$

30,257

$

23,965

$

76,394

$

7,623,297

$

7,699,691

$

23,964

$

1

June 30, 2021

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

$

-

$

-

$

5,949

$

5,949

$

1,733,104

$

1,739,053

$

5,949

$

-

Commercial real estate:

Non-owner occupied

-

-

374

374

2,131,860

2,132,234

374

-

Owner occupied

907

639

193

1,739

338,445

340,184

193

-

Commercial and industrial

3,070

509

1,346

4,925

1,590,497

1,595,422

1,346

-

Construction

-

-

-

-

722,166

722,166

-

-

Mortgage

2,498

5,005

13,323

20,826

1,142,495

1,163,321

13,323

-

Consumer:

Credit cards

-

-

-

-

31

31

-

-

Home equity lines of credit

501

210

6,377

7,088

74,850

81,938

6,377

-

Personal

572

579

832

1,983

135,014

136,997

832

-

Other

-

-

-

-

3,236

3,236

-

-

Total

$

7,548

$

6,942

$

28,394

$

42,884

$

7,871,698

$

7,914,582

$

28,394

$

-

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

$

-

$

22,171

$

(5,949

)

$

16,222

$

(23,596

)

$

(7,374

)

$

(5,949

)

$

-

Commercial real estate:

Non-owner occupied

2,569

4,632

-

7,201

(102,346

)

(95,145

)

-

-

Owner occupied

251

(639

)

793

405

4,985

5,390

793

-

Commercial and industrial

(2,266

)

(508

)

82

(2,692

)

(42,094

)

(44,786

)

81

1

Construction

14,978

-

-

14,978

(63,583

)

(48,605

)

-

-

Mortgage

(1,129

)

(2,172

)

1,165

(2,136

)

2,918

782

1,165

-

Consumer:

Credit cards

-

-

-

-

(5

)

(5

)

-

-

Home equity lines of credit

189

(134

)

(436

)

(381

)

(1,808

)

(2,189

)

(436

)

-

Personal

16

(35

)

(84

)

(103

)

(23,416

)

(23,519

)

(84

)

-

Other

16

-

-

16

544

560

-

-

Total

$

14,624

$

23,315

$

(4,429

)

$

33,510

$

(248,401

)

$

(214,891

)

$

(4,430

)

$

1

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

Table J - Loan Delinquency - Consolidated

(Unaudited)

30-Sep-21

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

$

392

$

22,171

$

396

$

22,959

$

1,859,147

$

1,882,106

$

396

$

-

Commercial real estate:

Non-owner occupied

3,230

22,015

60,517

85,762

4,297,955

4,383,717

60,517

-

Owner occupied

3,877

614

72,849

77,340

1,737,933

1,815,273

72,849

-

Commercial and industrial

2,445

577

52,884

55,906

5,166,669

5,222,575

52,419

465

Construction

14,978

-

14,877

29,855

771,185

801,040

14,877

-

Mortgage

199,324

79,178

910,696

1,189,198

6,349,954

7,539,152

369,043

541,653

Leasing

8,193

1,969

2,542

12,704

1,335,975

1,348,679

2,542

-

Consumer:

Credit cards

5,211

3,667

7,558

16,436

870,165

886,601

-

7,558

Home equity lines of credit

736

76

5,941

6,753

76,549

83,302

5,941

-

Personal

9,917

6,498

22,394

38,809

1,350,046

1,388,855

22,394

-

Auto

52,486

11,663

17,345

81,494

3,295,200

3,376,694

17,345

-

Other

409

76

14,621

15,106

112,272

127,378

14,512

109

Total

$

301,198

$

148,504

$

1,182,620

$

1,632,322

$

27,223,050

$

28,855,372

$

632,835

$

549,785

30-Jun-21

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

$

128

$

-

$

6,346

$

6,474

$

1,884,362

$

1,890,836

$

6,346

$

-

Commercial real estate:

Non-owner occupied

32,749

-

72,752

105,501

4,020,162

4,125,663

72,752

-

Owner occupied

4,902

1,243

80,001

86,146

1,718,467

1,804,613

80,001

-

Commercial and industrial

5,384

1,191

67,073

73,648

5,543,172

5,616,820

66,466

607

Construction

-

3,080

14,877

17,957

847,156

865,113

14,877

-

Mortgage

167,277

78,497

1,008,498

1,254,272

6,424,206

7,678,478

383,976

624,522

Leasing

6,054

2,103

2,286

10,443

1,287,485

1,297,928

2,286

-

Consumer:

Credit cards

4,371

2,826

8,021

15,218

864,943

880,161

-

8,021

Home equity lines of credit

501

210

6,377

7,088

78,339

85,427

6,377

-

Personal

9,977

5,023

24,693

39,693

1,362,596

1,402,289

24,693

-

Auto

39,032

7,405

13,286

59,723

3,229,304

3,289,027

13,286

-

Other

214

97

14,288

14,599

111,663

126,262

14,123

165

Total

$

270,589

$

101,675

$

1,318,498

$

1,690,762

$

27,371,855

$

29,062,617

$

685,183

$

633,315

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

$

264

$

22,171

$

(5,950

)

$

16,485

$

(25,215

)

$

(8,730

)

$

(5,950

)

$

-

Commercial real estate:

Non-owner occupied

(29,519

)

22,015

(12,235

)

(19,739

)

277,793

258,054

(12,235

)

-

Owner occupied

(1,025

)

(629

)

(7,152

)

(8,806

)

19,466

10,660

(7,152

)

-

Commercial and industrial

(2,939

)

(614

)

(14,189

)

(17,742

)

(376,503

)

(394,245

)

(14,047

)

(142

)

Construction

14,978

(3,080

)

-

11,898

(75,971

)

(64,073

)

-

-

Mortgage

32,047

681

(97,802

)

(65,074

)

(74,252

)

(139,326

)

(14,933

)

(82,869

)

Leasing

2,139

(134

)

256

2,261

48,490

50,751

256

-

Consumer:

Credit cards

840

841

(463

)

1,218

5,222

6,440

-

(463

)

Home equity lines of credit

235

(134

)

(436

)

(335

)

(1,790

)

(2,125

)

(436

)

-

Personal

(60

)

1,475

(2,299

)

(884

)

(12,550

)

(13,434

)

(2,299

)

-

Auto

13,454

4,258

4,059

21,771

65,896

87,667

4,059

-

Other

195

(21

)

333

507

609

1,116

389

(56

)

Total

$

30,609

$

46,829

$

(135,878

)

$

(58,440

)

$

(148,805

)

$

(207,245

)

$

(52,348

)

$

(83,530

)

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

Table K - Non-Performing Assets

(Unaudited)

Variance

(Dollars in thousands)

30-Sep-21

As a % of
loans HIP by
category

30-Jun-21

As a % of
loans HIP by
category

30-Sep-20

As a % of
loans HIP by
category

Q3 2021 vs.
Q2 2021

Q3 2021 vs.
Q3 2020

Non-accrual loans:

Commercial

$186,181

1.4

%

$225,565

1.7

%

$249,738

1.8

%

$(39,384)

$(63,557)

Construction

14,877

1.9

14,877

1.7

30,583

3.2

-

(15,706)

Lease financing

2,542

0.2

2,286

0.2

3,217

0.3

256

(675)

Mortgage

369,043

4.9

383,976

5.0

384,544

4.9

(14,933)

(15,501)

Auto

17,345

0.5

13,286

0.4

13,454

0.4

4,059

3,891

Consumer

42,847

1.7

45,193

1.8

52,832

2.0

(2,346)

(9,985)

Total non-performing loans held-in-portfolio

632,835

2.2

%

685,183

2.4

%

734,368

2.5

%

(52,348)

(101,533)

Non-performing loans held-for-sale [1]

-

8,700

4,070

(8,700)

(4,070)

Other real estate owned (“OREO”)

76,828

73,272

100,592

3,556

(23,764)

Total non-performing assets

$709,663

$767,155

$839,030

$(57,492)

$(129,367)

Accruing loans past due 90 days or more [2]

$549,785

$633,315

$1,212,947

$(83,530)

$(663,162)

Ratios:

Non-performing assets to total assets

0.96

%

1.06

%

1.27

%

Non-performing loans held-in-portfolio to loans held-in-portfolio

2.19

2.36

2.50

Allowance for credit losses to loans held-in-portfolio

2.49

2.70

3.15

Allowance for credit losses to non-performing loans, excluding loans held-for-sale

113.55

114.68

126.07

[1] There were no non-performing loans held-for-sale as of September 30, 2021 (June 30, 2021 - $7 million in construction loans and $2 million commercial loans; September 30, 2020 - $4 million in commercial loans).

[2] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. The balance of these loans includes $12 million at September 30, 2021, 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, 2021 - $15 million; September 30, 2020 - $161 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. While the borrowers for our serviced GNMA portfolio benefited from the moratorium, the delinquency status of these loans continued to be reported to GNMA without considering the moratorium. These balances include $350 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of September 30, 2021 (June 30, 2021 - $363 million; September 30, 2020 - $318 million). Furthermore, the Corporation has approximately $53 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, 2021 - $56 million; September 30, 2020 - $60 million).

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)

Commercial loans held-in-portfolio:

Quarter ended

Quarter ended

30-Sep-21

30-Jun-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$217,703

$7,862

$225,565

$200,863

$1,907

$202,770

Plus:

New non-performing loans

7,454

1,039

8,493

39,657

7,570

47,227

Advances on existing non-performing loans

-

10

10

-

1

1

Less:

Non-performing loans transferred to OREO

(2,069

)

-

(2,069

)

(2,346

)

-

(2,346

)

Non-performing loans charged-off

(8,617

)

-

(8,617

)

(1,515

)

(624

)

(2,139

)

Loans returned to accrual status / loan collections

(31,077

)

(6,124

)

(37,201

)

(18,956

)

(992

)

(19,948

)

Ending balance NPLs

$183,394

$2,787

$186,181

$217,703

$7,862

$225,565

Construction loans held-in-portfolio:

Quarter ended

Quarter ended

30-Sep-21

30-Jun-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$14,877

$-

$14,877

$14,877

$7,523

$22,400

Less:

Non-performing loans charged-off

-

-

-

-

(523

)

(523

)

Loans transferred to held-for-sale

-

-

-

-

(7,000

)

(7,000

)

Ending balance NPLs

$14,877

$-

$14,877

$14,877

$-

$14,877

Mortgage loans held-in-portfolio:

Quarter ended

Quarter ended

30-Sep-21

30-Jun-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$370,653

$13,323

$383,976

$390,781

$14,793

$405,574

Plus:

New non-performing loans

38,606

4,662

43,268

43,432

4,774

48,206

Advances on existing non-performing loans

-

2

2

-

11

11

Less:

Non-performing loans transferred to OREO

(8,984

)

-

(8,984

)

(8,257

)

-

(8,257

)

Non-performing loans charged-off

(1,023

)

-

(1,023

)

(4,297

)

-

(4,297

)

Loans returned to accrual status / loan collections

(44,697

)

(3,499

)

(48,196

)

(51,006

)

(6,255

)

(57,261

)

Ending balance NPLs

$354,555

$14,488

$369,043

$370,653

$13,323

$383,976

Total non-performing loans held-in-portfolio (excluding consumer):

Quarter ended

Quarter ended

30-Sep-21

30-Jun-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$603,233

$21,185

$624,418

$606,521

$24,223

$630,744

Plus:

New non-performing loans

46,060

5,701

51,761

83,089

12,344

95,433

Advances on existing non-performing loans

-

12

12

-

12

12

Less:

Non-performing loans transferred to OREO

(11,053

)

-

(11,053

)

(10,603

)

-

(10,603

)

Non-performing loans charged-off

(9,640

)

-

(9,640

)

(5,812

)

(1,147

)

(6,959

)

Loans returned to accrual status / loan collections

(75,774

)

(9,623

)

(85,397

)

(69,962

)

(7,247

)

(77,209

)

Loans transferred to held-for-sale

-

-

-

-

(7,000

)

(7,000

)

Ending balance NPLs

$552,826

$17,275

$570,101

$603,233

$21,185

$624,418

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

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

(Unaudited)

Quarters ended

(Dollars in thousands)

30-Sep-21

30-Jun-21

30-Sep-20

Balance at beginning of period - loans held-in-portfolio

$785,790

$800,797

$918,434

Provision for credit losses (benefit)

(58,645

)

(17,500

)

19,452

Initial allowance for credit losses - PCD Loans

253

1,202

4,823

727,398

784,499

942,709

Net loans charged-off (recovered):

BPPR

Commercial

4,357

(9,877

)

(1,959

)

Construction

(2,223

)

(479

)

(156

)

Lease financing

304

393

(329

)

Mortgage

(2,111

)

935

1,964

Consumer

9,009

7,545

14,249

Total BPPR

9,336

(1,483

)

13,769

Popular U.S.

Commercial

(463

)

(413

)

309

Construction

-

93

-

Mortgage

(48

)

(423

)

(5

)

Consumer

(2

)

935

2,786

Total Popular U.S.

(513

)

192

3,090

Total loans charged-off (recovered) - Popular, Inc.

8,823

(1,291

)

16,859

Balance at end of period - loans held-in-portfolio

$718,575

$785,790

$925,850

Balance at beginning of period - unfunded commitments

$9,936

$9,569

$6,717

Provision for credit losses (benefit)

(1,536

)

367

6,578

Balance at end of period - unfunded commitments [1]

$8,400

$9,936

$13,295

POPULAR, INC.

Annualized net charge-offs (recoveries) to average loans held-in-portfolio

0.12

%

(0.02

)%

0.24

%

Provision for credit losses (benefit) - loan portfolios to net charge-offs

N.M.

N.M.

115.38

%

BPPR

Annualized net charge-offs (recoveries) to average loans held-in-portfolio

0.18

%

(0.03

)%

0.26

%

Provision for credit losses (benefit) - loan portfolios to net charge-offs

N.M.

N.M.

55.79

%

Popular U.S.

Annualized net charge-offs to average loans held-in-portfolio

(0.03

)%

0.01

%

0.16

%

Provision for credit losses (benefit) - loan portfolios to net charge-offs

N.M.

N.M.

380.91

%

N.M. - Not meaningful.

[1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

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

(Unaudited)

30-Sep-21

(Dollars in thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

Total ACL

$234,814

$9,850

$170,378

$11,634

$291,899

$718,575

Total loans held-in-portfolio

$13,303,671

$801,040

$7,539,152

$1,348,679

$5,862,830

$28,855,372

ACL to loans held-in-portfolio

1.77

%

1.23

%

2.26

%

0.86

%

4.98

%

2.49

%

30-Jun-21

(Dollars in thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

Total ACL

$271,144

$11,256

$182,619

$17,551

$303,220

$785,790

Total loans held-in-portfolio

$13,437,932

$865,113

$7,678,478

$1,297,928

$5,783,166

$29,062,617

ACL to loans held-in-portfolio

2.02

%

1.30

%

2.38

%

1.35

%

5.24

%

2.70

%

Variance

(Dollars in thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

Total ACL

$(36,330

)

$(1,406

)

$(12,241

)

$(5,917

)

$(11,321

)

$(67,215

)

Total loans held-in-portfolio

$(134,261

)

$(64,073

)

$(139,326

)

$50,751

$79,664

$(207,245

)

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

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

(Unaudited)

30-Sep-21

Puerto Rico

(In thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

ACL

$168,504

$1,911

$155,062

$11,634

$279,667

$616,778

Loans held-in-portfolio

$7,638,693

$127,479

$6,375,049

$1,348,679

$5,665,781

$21,155,681

ACL to loans held-in-portfolio

2.21

%

1.50

%

2.43

%

0.86

%

4.94

%

2.92

%

30-Jun-21

Puerto Rico

(In thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

ACL

$186,784

$1,220

$166,808

$17,551

$289,490

$661,853

Loans held-in-portfolio

$7,631,039

$142,947

$6,515,157

$1,297,928

$5,560,964

$21,148,035

ACL to loans held-in-portfolio

2.45

%

0.85

%

2.56

%

1.35

%

5.21

%

3.13

%

Variance

(In thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

ACL

$(18,280

)

$691

$(11,746

)

$(5,917

)

$(9,823

)

$(45,075

)

Loans held-in-portfolio

$7,654

$(15,468

)

$(140,108

)

$50,751

$104,817

$7,646

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

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

(Unaudited)

30-Sep-21

Popular U.S.

(In thousands)

Commercial

Construction

Mortgage

Consumer

Total

ACL

$66,310

$7,939

$15,316

$12,232

$101,797

Loans held-in-portfolio

$5,664,978

$673,561

$1,164,103

$197,049

$7,699,691

ACL to loans held-in-portfolio

1.17

%

1.18

%

1.32

%

6.21

%

1.32

%

30-Jun-21

Popular U.S.

(In thousands)

Commercial

Construction

Mortgage

Consumer

Total

ACL

$84,360

$10,036

$15,811

$13,730

$123,937

Loans held-in-portfolio

$5,806,893

$722,166

$1,163,321

$222,202

$7,914,582

ACL to loans held-in-portfolio

1.45

%

1.39

%

1.36

%

6.18

%

1.57

%

Variance

(In thousands)

Commercial

Construction

Mortgage

Consumer

Total

ACL

$(18,050

)

$(2,097

)

$(495

)

$(1,498

)

$(22,140

)

Loans held-in-portfolio

$(141,915

)

$(48,605

)

$782

$(25,153

)

$(214,891

)

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

Table Q - Reconciliation to GAAP Financial Measures

(Unaudited)

(In thousands, except share or per share information)

30-Sep-21

30-Jun-21

30-Sep-20

Total stockholders’ equity

$5,982,971

$5,814,614

$5,912,085

Less: Preferred stock

(22,143

)

(22,143

)

(22,143

)

Less: Goodwill

(671,122

)

(671,122

)

(671,122

)

Less: Other intangibles

(19,657

)

(20,440

)

(23,518

)

Total tangible common equity

$5,270,049

$5,100,909

$5,195,302

Total assets

$74,189,163

$72,657,293

$65,910,369

Less: Goodwill

(671,122

)

(671,122

)

(671,122

)

Less: Other intangibles

(19,657

)

(20,440

)

(23,518

)

Total tangible assets

$73,498,384

$71,965,731

$65,215,729

Tangible common equity to tangible assets

7.17

%

7.09

%

7.97

%

Common shares outstanding at end of period

79,841,564

80,656,480

84,219,464

Tangible book value per common share

$66.01

$63.24

$61.69

Quarterly average

Total stockholders’ equity [1]

$5,769,545

$5,683,325

$5,383,126

Less: Preferred Stock

(22,143

)

(22,143

)

(22,143

)

Less: Goodwill

(671,121

)

(671,121

)

(671,121

)

Less: Other intangibles

(20,132

)

(21,350

)

(24,161

)

Total tangible equity

$5,056,149

$4,968,711

$4,665,701

Return on average tangible common equity

19.44

%

17.58

%

14.32

%

[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale.

Contacts:

Popular, Inc.
Investor Relations:
Paul J. Cardillo, 212-417-6721
Investor Relations Officer
pcardillo@popular.com
or
Media Relations:
MC González Noguera, 917-804-5253
Executive Vice President and Chief Communications & Public Affairs Officer
mc.gonzalez@popular.com

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