Popular, Inc. Announces Fourth Quarter 2021 Financial Results

Net income of $206.1 million in Q4 2021, compared to net income of $248.1 million in Q3 2021. Net income of $934.9 million for the year 2021, compared to net income of $506.6 million for the year 2020. Net interest margin of 2.78% in Q4 2021, compared to 2.77% in Q3 2021; net interest margin on a taxable equivalent basis of 3.02% in Q4 2021, compared to 3.04% in Q3 2021. Credit Quality: Non-performing loans held-in-portfolio (“NPLs”) decreased by $85.0 million from Q3 2021; NPLs to loans ratio at 1.9% vs. 2.2% in Q3 2021; Net charge-offs (“NCOs”) was a net recovery of $7.9 million, a favorable variance by $16.7 million from Q3 2021; NCOs at (0.11%) of average loans held-in-portfolio vs. 0.12% in Q3 2021; NCOs of $20.7 million for the year 2021, a favorable variance by $165.7 million from the year 2020; NCOs at 0.07% of average loans held-in-portfolio for the year 2021 vs. 0.66% for the year 2020; Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.38% vs. 2.49% in Q3 2021; and ACL to NPLs at 126.9% vs. 113.6% in Q3 2021. Common Equity Tier 1 ratio of 17.45%, Common Equity per Share of $74.48 and Tangible Book Value per Share of $65.39 at December 31, 2021.

Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $206.1 million for the quarter ended December 31, 2021, compared to net income of $248.1 million for the quarter ended September 30, 2021.

Ignacio Alvarez, President and Chief Executive Officer, said: “Our fourth quarter results reflect a strong finish to a record year. During the quarter we continued adding new clients, increasing our deposit base and growing most of our loan portfolios. We also launched a new digital platform where small business customers in Puerto Rico can apply for loans in a more convenient way. And we were especially pleased by the performance of our U.S. mainland operations that achieved commercial loan growth of $726 million, including the $105 million from the K-2 acquisition. Our financial performance in 2021 was driven by solid credit quality trends that led to a benefit in the provision of $194 million. Our net charge-off ratio of 0.07% was the lowest since at least 2004.

Our results reflect the strength of our diverse sources of revenues. Solid financial performance and a strong capital position led to a dividend increase of 22% on our common stock effective Q2 2022 and a common stock repurchase program of $500 million for 2022.

Further demonstrating our commitment to the communities we serve, this fall we gained the certification to a host of our low-cost deposit products that meet the Bank On certification requirements. We are also proud to be included in this year’s Bloomberg Gender-Equality Index (GEI) as we continue to make strides in gender parity at Popular and across the financial industry.

While cognizant of the challenges related to the pandemic, we enter this year ready to build on the momentum of 2021, with an improving economic and fiscal environment in Puerto Rico and the rising interest rate environment.

I want to thank our colleagues whose dedication, resilience and talent helped us achieve our record results. They continue to be our most valuable asset.”

Significant Events

Fourth Quarter Financial Highlights

For the fourth quarter of 2021, the Corporation recorded net income of $206.1 million, compared to net income of $248.1 million for the previous quarter. The fourth quarter’s results include a release in the allowance for credit losses of $33.1 million driven by the releases in the Puerto Rico commercial and mortgage portfolios, resulting from improving credit quality, partially offset by reserve increases related to an increase in weight to downside economic scenarios and higher loan volumes. Net interest income was $501.3 million, an increase of $11.9 million compared to the previous quarter, mainly due to higher income from loans issued under the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”), loan growth, coupled with activity from lease financing business acquired in October 2021 by Popular Equipment Finance LLC (“PEF”) and higher income from the repayment of purchased credit deteriorated (“PCD”) loans. Net interest margin increased 1 basis point to 2.78%. Total assets grew by $0.9 billion from the previous quarter, reflecting loan growth in Popular Bank (“PB”) and an increase in deposits across all sectors in Puerto Rico.

Acquisition of K2 Capital Group LLC

On October 15, 2021, PEF, a newly-formed wholly-owned subsidiary of 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 of approximately $157 million in cash, representing a premium of approximately $42 million over the book value of K2’s net assets, which has been preliminarily recorded as goodwill. An additional approximate $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 finance 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 $115 million in net assets that consisted mainly of commercial finance leases.

The transaction was accounted for as a business combination. The Corporation is in the process of finalizing the assessment of the fair value of the net assets acquired as part of the transaction and expects to complete its assessment before the filing of its annual report on Form 10-K for the year ended December 31, 2021. Any fair value adjustments would impact the value of the recorded assets and liabilities with a corresponding offset to goodwill.

Capital Actions

Redemption of Trust Preferred Securities

On November 1, 2021, the Corporation redeemed all outstanding 6.70% Cumulative Monthly Income Trust Preferred Securities (the “Trust Preferred Securities”) issued by the Popular Capital Trust I (the “Trust”) (liquidation amount of $25 per security and amounting to $186,663,800 (or $181,063,250 after excluding the Corporation’s participation in the Trust of $5,600,550) in the aggregate). The redemption price for the Trust Preferred Securities was 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 delisted the Trust Preferred Securities (NASDAQ: BPOPN) from the Nasdaq Global Select Market.

Announcement of 2022 Capital Actions

On January 12, 2022 the Corporation announced the following capital actions:

• an increase in the Corporation’s quarterly common stock dividend from $0.45 per share to $0.55 per share, commencing with the dividend payable in the second quarter of 2022, subject to the approval by the Corporation’s Board of Directors; and
• common stock repurchases of up to $500 million during 2022.

The Corporation’s planned common stock repurchases may be executed in the open market or in privately negotiated transactions. The timing and exact amount of such repurchases will be subject to various factors, including market conditions and the Corporation’s capital position and financial performance.

Earnings Highlights
(Unaudited)	Quarters ended						Years ended
(Dollars in thousands, except per share information)	31-Dec-21		30-Sep-21		31-Dec-20		31-Dec-21		31-Dec-20
Net interest income	$501,283		$489,393		$471,616		$1,957,590		$1,856,613
Provision for credit losses (benefit)	(33,050	)	(61,173	)	21,218		(193,464	)	292,536
Net interest income after provision for credit losses (benefit)	534,333		550,566		450,398		2,151,054		1,564,077
Other non-interest income	164,677		169,258		144,847		642,128		512,312
Operating expenses	417,394		388,168		375,924		1,549,275		1,457,829
Income before income tax	281,616		331,656		219,321		1,243,907		618,560
Income tax expense	75,552		83,542		43,045		309,018		111,938
Net income	$206,064		$248,114		$176,276		$934,889		$506,622
Net income applicable to common stock	$205,711		$247,761		$175,923		$933,477		$504,864
Net income per common share-basic	$2.59		$3.09		$2.10		$11.49		$5.88
Net income per common share-diluted	$2.58		$3.09		$2.10		$11.46		$5.87

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

Net interest income, on a taxable equivalent basis, is presented with its different components in Table D and E for the quarter and year ended December 31, 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 December 31, 2021 was $501.3 million compared to $489.4 million in the previous quarter, an increase of $11.9 million. Net interest income, on a taxable equivalent basis, for the fourth quarter of 2021 was $543.9 million, an increase of $7.6 million when compared to $536.3 million in the third quarter of 2021. The increase in net interest income on a taxable equivalent is mainly related to the repayment of PCD loans, higher PPP fees during the quarter and the activity recognized in the quarter from PEF’s recently acquired lease financing business.

Net interest margin for the fourth quarter was 2.78% compared to 2.77% in the previous quarter. The increase in net interest margin is due to the repayment of PCD loans and higher PPP loan fees related to loans, partially offset by a lower yield on money markets and investment securities due to lower volume of mortgage-backed securities. On a taxable equivalent basis, net interest margin for the fourth quarter of 2021 was 3.02% compared to 3.04% in the third quarter of 2021, a decrease of 2 basis points. The main variances in net interest income on a taxable equivalent basis were:

• Higher interest income from loans by $8.2 million mainly due to the following:
  • Higher income from commercial loans including $3.7 million from the repayment of PCD loans, interest income and fees from PPP loans by $1.2 million and $2.4 million from loans acquired by PEF from K2. Interest income for the commercial portfolio also reflected loan growth at PB which, excluding PPP loans and including the finance lease portfolio acquired by PEF, increased by $726 million or 13% and $284 million in average balances from the previous quarter;
  • Auto and lease financing continued its positive trend increasing by $102 million in average balances and reflecting an increase in interest income of $0.7 million
    Partially offset by:
  • Lower interest income from mortgage loans due lower average volume resulting from continued amortization of the Banco Popular de Puerto Rico (“BPPR”) portfolio
  • Lower interest expense on borrowings resulting from the redemption during the quarter of the Trust Preferred Securities, totaling $186.7 million.

These positive variances were partially offset by:

• Lower interest income from money market investments, trading and investment securities by $3.4 million due lower volume and yield of mortgage-backed securities, partially offset by a higher volume of lower yielding U.S. Treasury notes.

The Corporation recognized income of $23.2 million related to loans issued under the SBA PPP program, compared to $22.0 million in the previous quarter. These loans carried a yield of approximately 17.86% in this quarter, including the amortization of fees received under the program, compared to 10.10% last quarter. This portfolio of loans issued under the SBA PPP declined by $265.2 million in BPPR to a balance of $255.3 million and declined by $51.4 million in PB to a balance of $97.9 million. On December 31, 2021, the portfolio [at BPPR and PB] had a remaining [aggregate] balance of unamortized fees of $18.1 million.

Net interest income for the BPPR segment amounted to $425.9 million for the fourth quarter of 2021, compared to $419.2 million for the third quarter. Net interest margin for the fourth quarter of 2021 was 2.73%, a decrease of 2 basis points when compared to 2.75% for the previous quarter. As discussed above, net interest margin was positively impacted by the repayment of PCD loans, higher PPP fees and a higher volume of auto and lease financing loans, but the earning assets mix continues to impact the net interest margin. The cost of interest-bearing deposits was 0.16% compared to 0.17% in the previous quarter. Total cost of deposits for the quarter was 0.12%, compared to 0.13% reported for the third quarter of 2021.

Net interest income for PB was $83.2 million for the quarter ended December 31, 2021, compared to $80.0 million during the previous quarter. Net interest margin for the quarter was 3.47% or 11 basis point higher than the previous quarter. The increase in net interest income is driven by a higher volume of commercial loans, as discussed above, from both origination activity and the acquisition of the equipment finance leases business from K2. The lower cost on deposits also benefited the net interest margin at PB. The cost of interest-bearing deposits was 0.52% or 4 basis points lower than the 0.56% reported in the third quarter, decreasing for the ninth consecutive quarter. Total cost of deposits for the quarter, including demand deposits, was 0.40%, compared to 0.43% in the previous quarter.

Non-interest income

Non-interest income decreased by $4.6 million to $164.7 million for the quarter ended December 31, 2021, compared to $169.3 million for the quarter ended September 30, 2021. The variance in non-interest income was primarily driven by:

• lower other operating income by $14.8 million mainly due to lower net earnings from the combined portfolio of investments under the equity method by $5.4 million and the impact of a gain of $7.0 million recognized in the third quarter of 2021 by BPPR as a result of the sale and partial leaseback of two corporate office buildings;
  partially offset by:
• higher other service fees by $3.3 million mainly due to higher insurance fees by $3.5 million principally resulting from contingent insurance commissions that are typically recognized during the fourth quarter and higher credit card fees by $2.2 million mainly in interchange income; and
• higher income from mortgage banking activities by $8.7 million mostly due to a favorable variance in fair value adjustments on mortgage servicing rights (“MSRs”) of $7.5 million mainly due to a decrease in estimated prepayments and an increase in float earnings and higher realized gains on closed derivative positions by $1.7 million.

Refer to Table B for further details.

Operating expenses

Operating expenses for the fourth quarter of 2021 totaled $417.4 million, an increase of $29.2 million when compared to the third quarter of 2021. The variance in operating expenses was driven primarily by:

• higher personnel cost by $2.8 million mainly due to salary increases and higher incentives and commissions;
• higher equipment expense by $2.6 million due to higher purchases of equipment by $0.6 million, higher amortization of software maintenance and higher depreciation of equipment held for operating leases by $0.5 million, the latter, related to the activity at PEF;
• higher business promotion expenses by $7.7 million mainly as a result of seasonal activities, higher donations by $1.8 million and higher credit cards rewards expense related to transactional volumes by $2.0 million;
• higher other operating expenses by $14.6 million due to impairment losses on undeveloped properties by $5.0 million, based on the estimated fair value as these were reclassified to held for sale or held for investments based on management’s intended use, and higher sundry losses by $9.7 million, including $3.7 million related to the termination of a white label credit card contract and higher legal reserves; and
• higher amortization of intangibles by $5.3 million due to a write-down on impairment of a trademark.

Partially offset by:

• lower credit and debit card processing and other expenses by $4.2 million mainly due to volume incentives.

Full-time equivalent employees were 8,351 as of December 31, 2021, compared to 8,342 as of September 30, 2021.

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

Income taxes

For the quarter ended December 31, 2021, the Corporation recorded an income tax expense of $75.6 million, compared to $83.5 million for the previous quarter. The decrease in income tax expense was mainly attributable to lower income before tax during the fourth quarter of 2021. The effective tax rate (“ETR”) for the fourth quarter of 2021 was 27%, or 2% higher when compared with the previous quarter. The ETR for the year was 25%. The ETR of the Corporation is impacted by the composition and source of its taxable income.

Credit Quality

During the fourth quarter of 2021, the Corporation continued to exhibit strong credit quality trends and low credit costs with net recoveries in NCOs and decreasing NPLs. We continue to closely monitor COVID-19 pandemic related risks on borrower performance and changes in the pace of economic recovery as new variants continue to emerge. 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 fourth quarter of 2021:

• At December 31, 2021, total non-performing loans held-in-portfolio decreased by $85.0 million from September 30, 2021. BPPR’s NPLs decreased by $94.6 million, driven by lower commercial, mortgage and construction NPLs by $63.3 million, $20.7 million and $14.4 million, respectively. The commercial and construction NPLs decrease reflects payoffs related to troubled loan resolutions, and loans that were returned to accrual status during the quarter. The mortgage NPLs decrease was mainly due to the combined effects of collection efforts, increased foreclosure activity and the on-going low levels of early delinquency compared with pre-pandemic trends. PB’s NPLs increased by $9.6 million, mostly due to higher mortgage and commercial NPLs by $7.5 million and $2.7 million, respectively. The mortgage NPLs increase was mostly driven by loans that did not resume payment at the end of the deferral period. At December 31, 2021, the ratio of NPLs to total loans held-in-portfolio was 1.9%, compared to 2.2% in the third quarter of 2021.

• Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $2.6 million quarter-over-quarter. In BPPR, total inflows decreased by $7.1 million, mostly driven by lower commercial and mortgage inflows of $5.2 million and $2.4 million, respectively. Mortgage inflows continued trending lower than pre-pandemic levels. NPL inflows at PB increased by $9.6 million during the quarter, mostly due to higher mortgage NPL inflows by $7.4 million, as explained above.

• NCOs decreased by $16.7 million from the third quarter to net recoveries of $7.9 million. BPPR‘s NCOs decreased by $17.0 million, primarily driven by lower commercial NCOs by $15.7 million mostly related to recoveries from the resolution of the abovementioned commercial non-performing loans. During the fourthquarter of 2021, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was (0.11%), compared to 0.12% in the third quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios.

• At December 31, 2021, the ACL decreased by $23.2 million, or 3.2%, from the third quarter of 2021 to $695.4 million. The ACL incorporated updated macroeconomic scenarios for Puerto Rico and the United States. Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The baseline scenario continues to be assigned the highest probability, followed by the pessimistic scenario. In response to recent events that impact both epidemiological and fiscal assumptions, the weight assigned to the pessimistic scenario was increased this quarter.

• In BPPR, the ACL decreased by $22.6 million mainly driven by reductions in the commercial and mortgage loans ACL. Improved appraisals, releases of qualitative reserves as well as continued borrower performance contributed to the lower ACL for these segments. The ACL for the PB segment remained flat quarter-over-quarter, as the effect of releases in qualitative reserves was partially offset by higher loan volumes and the increase in weight applied to the pessimistic scenario. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.38% in the fourth quarter of 2021, compared to 2.49% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 126.9%, compared to 113.6% in the previous quarter.

• The current baseline forecast continues to show a favorable economic scenario. GDP growth is expected for Puerto Rico and United States in 2022 and 2023. In addition, the unemployment rate is expected to continue to improve in both regions through 2022 and remain stable in 2023.

• The provision for credit losses for the loan portfolios for the fourth quarter of 2021 reflected a benefit of $31.4 million, compared to a benefit of $58.6 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses and NCOs recoveries. The provision for the BPPR segment was a benefit of $30.6 million, compared to a benefit of $36.0 million in the previous quarter, while the provision for the PB segment was a benefit of $0.9 million, compared to a benefit of $22.7 million in the previous quarter.

• The provision for unfunded commitments for the fourth quarter of 2021 reflected a benefit of $0.5 million, compared to a benefit of $1.5 million in the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $1.1 million, compared to a benefit of $1.0 million in the third 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)	31-Dec-21			30-Sep-21			31-Dec-20
Non-performing loans held-in-portfolio	$547,877			$632,835			$737,774
Non-performing loans held-for-sale	-			-			2,738
Other real estate owned (“OREO”)	85,077			76,828			83,146
Total non-performing assets	$632,954			$709,663			$823,658
Net (recoveries) charge-offs for the quarter	$(7,881	)		$8,823			$42,078
Ratios:
Loans held-in-portfolio	$29,243,889			$28,855,372			$29,385,196
Non-performing loans held-in-portfolio to loans held-in-portfolio	1.87	%		2.19	%		2.51	%
Allowance for credit losses to loans held-in-portfolio	2.38			2.49			3.05
Allowance for credit losses to non-performing loans, excluding loans held-for-sale	126.92			113.55			121.48
Refer to Table K for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios
(Unaudited)		Quarters ended									Years ended
(In thousands)		31-Dec-21			30-Sep-21			31-Dec-20			31-Dec-21		31-Dec-20
Provision for credit losses (benefit) - loan portfolios:
BPPR		$(30,562	)		$(35,992	)		$24,756			$(129,018	)	$205,865
Popular U.S.		(859	)		(22,653	)		(13,971	)		(54,327	)	76,471
Total provision for credit losses (benefit) - loan portfolios		$(31,421	)		$(58,645	)		$10,785			$(183,345	)	$282,336

Credit Quality by Segment
(Unaudited)
(In thousands)	Quarters ended
BPPR		31-Dec-21			30-Sep-21			31-Dec-20
Provision for credit losses (benefit) - loan portfolios		$(30,562	)		$(35,992	)		$24,756
Net charge-offs (recoveries)		(7,615	)		9,336			41,217
Total non-performing loans held-in-portfolio		514,289			608,871			700,377
Allowance / loans held-in-portfolio		2.85	%		2.92	%		3.43	%
Allowance / non-performing loans held-in-portfolio		115.53	%		101.30	%		105.62	%
	Quarters ended
Popular U.S.		31-Dec-21			30-Sep-21			31-Dec-20
Provision for credit losses (benefit) - loan portfolios		$(859	)		$(22,653	)		$(13,971	)
Net charge-offs (recoveries)		(266	)		(513	)		861
Total non-performing loans held-in-portfolio		33,588			23,964			37,397
Allowance / loans held-in-portfolio		1.21	%		1.32	%		2.00	%
Allowance / non-performing loans held-in-portfolio		301.31	%		424.79	%		418.48	%

Financial Condition Highlights
(Unaudited)
(In thousands)	31-Dec-21		30-Sep-21		31-Dec-20
Cash and money market investments	$17,965,152		$18,065,211		$12,131,945
Investment securities	25,267,418		24,697,876		21,864,184
Loans	29,243,889		28,855,372		29,385,196
Total assets	75,088,659		74,189,163		65,926,000
Deposits	67,005,088		66,013,561		56,866,340
Borrowings	1,155,166		1,263,413		1,346,284
Total liabilities	69,119,262		68,206,192		59,897,313
Stockholders’ equity	5,969,397		5,982,971		6,028,687

Total assets increased by $0.9 billion from the third quarter of 2021, driven by:

• an increase of $0.6 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; and

• an increase in loans held-in-portfolio by $0.4 billion mainly due to an increase of $0.7 billion in commercial loans at PB principally in the health care industry from which $0.1 billion was related to the acquisition by PEF of K2’s lease financing business during the quarter, partially offset by a decrease of $0.2 billion in commercial loans at BPPR mainly due to the collection of PPP loans during the quarter.

Total liabilities increased by $0.9 billion from the third quarter of 2021, driven by:

• an increase of $1.0 billion in deposits, mainly due to higher retail and commercial demand deposits by $0.7 billion and higher Puerto Rico public sector deposits by $0.3 billion at BPPR; partially offset by

• a net reduction in borrowings of $0.1 billion, from which $0.2 billion was related to the redemption of the Trust Preferred Securities.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 17.45%, $74.48 and $65.39, respectively, at December 31, 2021, compared to 17.36%, $74.66 and $66.01 at September 30, 2021. Refer to Table A for capital ratios.

Refer to Table C for the Statements of Financial Condition.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those 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, June 30, 2021, September 30, 2021 and in our Form 10-K for the year ended December 31, 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 Thursday, January 27, 2022 at 10:00 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). The dial-in access code is 476774.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Thursday, February 24, 2022. The replay dial-in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 565254.

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

Popular, Inc.

Financial Supplement to Fourth Quarter 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 Fourth Quarter 2021 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
	Quarters ended			Years ended
	31-Dec-21	30-Sep-21	31-Dec-20	31-Dec-21	31-Dec-20
Basic EPS	$2.59	$3.09	$2.10	$11.49	$5.88
Diluted EPS	$2.58	$3.09	$2.10	$11.46	$5.87
Average common shares outstanding	79,477,823	80,126,166	83,841,343	81,263,027	85,882,371
Average common shares outstanding - assuming dilution	79,652,836	80,274,942	83,940,412	81,420,154	85,975,259
Common shares outstanding at end of period	79,851,169	79,841,564	84,244,235	79,851,169	84,244,235
Market value per common share	$82.04	$77.67	$56.32	$82.04	$56.32
Market capitalization - (In millions)	$6,551	$6,201	$4,745	$6,551	$4,745
Return on average assets	1.09%	1.34%	1.08%	1.31%	0.85%
Return on average common equity	13.74%	17.10%	12.68%	16.22%	9.36%
Net interest margin (non-taxable equivalent basis)	2.78%	2.77%	3.04%	2.88%	3.29%
Net interest margin (taxable equivalent basis) -non-GAAP	3.02%	3.04%	3.35%	3.19%	3.62%
Common equity per share	$74.48	$74.66	$71.30	$74.48	$71.30
Tangible common book value per common share (non-GAAP) [1]	$65.39	$66.01	$63.07	$65.39	$63.07
Tangible common equity to tangible assets (non-GAAP) [1]	7.02%	7.17%	8.14%	7.02%	8.14%
Return on average tangible common equity [1]	15.66%	19.44%	14.50%	18.47%	10.75%
Tier 1 capital	17.52%	17.43%	16.33%	17.52%	16.33%
Total capital	19.38%	19.90%	18.81%	19.38%	18.81%
Tier 1 leverage	7.42%	7.38%	7.80%	7.42%	7.80%
Common Equity Tier 1 capital	17.45%	17.36%	16.26%	17.45%	16.26%
[1] Refer to Table Q for reconciliation to GAAP financial measures.

POPULAR, INC.
Financial Supplement to Fourth Quarter 2021 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
		Quarters ended				Variance		Quarter ended		Variance		Years ended
						Q4 2021				Q4 2021
(In thousands, except per share information)		31-Dec-21		30-Sep-21		vs. Q3 2021		31-Dec-20		vs. Q4 2020		31-Dec-21		31-Dec-20
Interest income:
	Loans	$444,101		$435,296		$8,805		$430,988		$13,113		$1,747,827		$1,742,390
	Money market investments	6,847		6,914		(67	)	2,933		3,914		21,147		19,721
	Investment securities	88,315		87,952		363		85,502		2,813		353,663		329,440
	Total interest income	539,263		530,162		9,101		519,423		19,840		2,122,637		2,091,551
Interest expense:
	Deposits	26,331		27,029		(698	)	33,420		(7,089	)	111,621		175,855
	Short-term borrowings	60		54		6		348		(288	)	319		2,457
	Long-term debt	11,589		13,686		(2,097	)	14,039		(2,450	)	53,107		56,626
	Total interest expense	37,980		40,769		(2,789	)	47,807		(9,827	)	165,047		234,938
Net interest income		501,283		489,393		11,890		471,616		29,667		1,957,590		1,856,613
Provision for credit losses (benefit)		(33,050	)	(61,173	)	28,123		21,218		(54,268	)	(193,464	)	292,536
Net interest income after provision for credit losses (benefit)		534,333		550,566		(16,233	)	450,398		83,935		2,151,054		1,564,077
Service charges on deposit accounts		41,613		41,312		301		39,152		2,461		162,698		147,823
Other service fees		83,793		80,445		3,348		71,156		12,637		311,248		257,892
Mortgage banking activities		17,035		8,307		8,728		9,730		7,305		50,133		10,401
Net gain on sale of debt securities		-		23		(23	)	-		-		23		41
Net (loss) gain, including impairment, on equity securities		(1,454	)	(401	)	(1,053	)	1,410		(2,864	)	131		6,279
Net (loss) profit on trading account debt securities		(355	)	58		(413	)	440		(795	)	(389	)	1,033
Net gain (loss) on sale of loans, including valuation adjustments on loans held-for-sale		-		-		-		253		(253	)	(73	)	1,234
Adjustments to indemnity reserves on loans sold		1,398		2,038		(640	)	2,160		(762	)	4,406		390
Other operating income		22,647		37,476		(14,829	)	20,546		2,101		113,951		87,219
	Total non-interest income	164,677		169,258		(4,581	)	144,847		19,830		642,128		512,312
Operating expenses:
Personnel costs
	Salaries	96,830		95,185		1,645		92,063		4,767		371,644		370,179
	Commissions, incentives and other bonuses	27,611		25,892		1,719		19,399		8,212		113,095		78,582
	Pension, postretirement and medical insurance	13,971		13,893		78		12,454		1,517		52,077		44,123
	Other personnel costs, including payroll taxes	22,060		22,677		(617	)	18,351		3,709		94,986		71,321
	Total personnel costs	160,472		157,647		2,825		142,267		18,205		631,802		564,205
Net occupancy expenses		26,755		24,896		1,859		42,793		(16,038	)	102,226		119,345
Equipment expenses		25,180		22,537		2,643		22,395		2,785		92,097		88,932
Other taxes		15,160		14,459		701		13,532		1,628		56,783		54,454
Professional fees
	Collections, appraisals and other credit related fees	3,227		3,166		61		2,948		279		13,199		12,588
	Programming, processing and other technology services	69,647		69,221		426		66,483		3,164		272,386		253,565
	Legal fees, excluding collections	3,445		2,535		910		2,734		711		10,712		10,611
	Other professional fees	28,736		29,787		(1,051	)	31,865		(3,129	)	114,568		117,358
	Total professional fees	105,055		104,709		346		104,030		1,025		410,865		394,122
Communications		6,263		6,133		130		6,274		(11	)	25,234		23,496
Business promotion		25,833		18,116		7,717		16,466		9,367		72,981		57,608
FDIC deposit insurance		6,688		7,181		(493	)	6,880		(192	)	25,579		23,868
Other real estate owned (OREO) income		(3,860	)	(1,722	)	(2,138	)	(4,000	)	140		(14,414	)	(3,480	)
Credit and debit card processing, volume, interchange and other expenses		8,757		12,960		(4,203	)	13,209		(4,452	)	45,088		45,108
Other operating expenses
	Operational losses	16,820		7,147		9,673		4,992		11,828		38,391		26,331
	All other	18,226		13,322		4,904		6,034		12,192		53,509		57,443
	Total other operating expenses	35,046		20,469		14,577		11,026		24,020		91,900		83,774
Amortization of intangibles		6,045		783		5,262		1,052		4,993		9,134		6,397
	Total operating expenses	417,394		388,168		29,226		375,924		41,470		1,549,275		1,457,829
Income before income tax		281,616		331,656		(50,040	)	219,321		62,295		1,243,907		618,560
Income tax expense		75,552		83,542		(7,990	)	43,045		32,507		309,018		111,938
Net income		$206,064		$248,114		$(42,050	)	$176,276		$29,788		$934,889		$506,622
Net income applicable to common stock		$205,711		$247,761		$(42,050	)	$175,923		$29,788		$933,477		$504,864
Net income per common share - basic		$2.59		$3.09		$(0.50	)	$2.10		$0.49		$11.49		$5.88
Net income per common share - diluted		$2.58		$3.09		$(0.51	)	$2.10		$0.48		$11.46		$5.87
Dividends Declared per Common Share		$0.45		$0.45		$-		$0.40		$0.05		$1.75		$1.60

Popular, Inc.
Financial Supplement to Fourth Quarter 2021 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
									Variance
									Q4 2021 vs.
(In thousands)			31-Dec-21		30-Sep-21		31-Dec-20		Q3 2021
Assets:
Cash and due from banks			$428,433		$538,973		$491,065		$(110,540	)
Money market investments			17,536,719		17,526,238		11,640,880		10,481
Trading account debt securities, at fair value			29,711		36,064		36,674		(6,353	)
Debt securities available-for-sale, at fair value			24,968,269		24,391,226		21,561,152		577,043
Debt securities held-to-maturity, at amortized cost			79,461		85,655		92,621		(6,194	)
		Less: Allowance for credit losses	8,096		9,222		10,261		(1,126	)
		Total debt securities held-to-maturity, net	71,365		76,433		82,360		(5,068	)
Equity securities			189,977		184,931		173,737		5,046
Loans held-for-sale, at lower of cost or fair value			59,168		91,313		99,455		(32,145	)
Loans held-in-portfolio			29,491,330		29,089,241		29,588,430		402,089
		Less: Unearned income	247,441		233,869		203,234		13,572
		Allowance for credit losses	695,366		718,575		896,250		(23,209	)
		Total loans held-in-portfolio, net	28,548,523		28,136,797		28,488,946		411,726
Premises and equipment, net			492,231		487,526		510,241		4,705
Other real estate			85,077		76,828		83,146		8,249
Accrued income receivable			203,096		200,649		209,320		2,447
Mortgage servicing rights, at fair value			121,570		116,567		118,395		5,003
Other assets			1,628,572		1,634,839		1,737,041		(6,267	)
Goodwill			712,616		671,122		671,122		41,494
Other intangible assets			13,332		19,657		22,466		(6,325	)
Total assets			$75,088,659		$74,189,163		$65,926,000		$899,496
Liabilities and Stockholders’ Equity:
Liabilities:
	Deposits:
		Non-interest bearing	$15,684,482		$15,147,567		$13,128,699		$536,915
		Interest bearing	51,320,606		50,865,994		43,737,641		454,612
		Total deposits	67,005,088		66,013,561		56,866,340		991,527
Assets sold under agreements to repurchase			91,603		86,470		121,303		5,133
Other short-term borrowings			75,000		-		-		75,000
Notes payable			988,563		1,176,943		1,224,981		(188,380	)
Other liabilities			959,008		929,218		1,684,689		29,790
Total liabilities			69,119,262		68,206,192		59,897,313		913,070
Stockholders’ equity:
Preferred stock			22,143		22,143		22,143		-
Common stock			1,046		1,046		1,045		-
Surplus			4,650,182		4,569,641		4,571,534		80,541
Retained earnings			2,973,745		2,882,340		2,260,928		91,405
Treasury stock			(1,352,650	)	(1,352,104	)	(1,016,954	)	(546	)
Accumulated other comprehensive (loss) income, net of tax			(325,069	)	(140,095	)	189,991		(184,974	)
		Total stockholders’ equity	5,969,397		5,982,971		6,028,687		(13,574	)
Total liabilities and stockholders’ equity			$75,088,659		$74,189,163		$65,926,000		$899,496

Popular, Inc.
Financial Supplement to Fourth Quarter 2021 Earnings Release
Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER
(Unaudited)
	Quarters ended															Variance
	31-Dec-21					30-Sep-21					31-Dec-20					Q4 2021 vs. Q3 2021							Q4 2021 vs. Q4 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	$42,764		$126.4	1.18	%	$41,279		$129.8	1.25	%	$32,554		$127.2	1.56	%	$1,485		($3.4	)	(0.07	)	%	$10,210		$(0.8	)	(0.38	)	%
Loans:
Commercial	13,395		188.6	5.59		13,265		179.2	5.36		13,610		170.2	4.98		130		9.4		0.23			(215	)	18.4		0.61
Construction	777		10.7	5.46		854		11.6	5.40		928		12.8	5.48		(77	)	(0.9	)	0.06			(151	)	(2.1	)	(0.02	)
Mortgage	7,504		96.4	5.14		7,652		97.8	5.11		7,856		98.6	5.02		(148	)	(1.4	)	0.03			(352	)	(2.2	)	0.12
Consumer	2,471		68.1	10.93		2,435		67.7	11.03		2,606		73.1	11.16		36		0.4		(0.10	)		(135	)	(5.0	)	(0.23	)
Auto	3,432		71.3	8.24		3,372		71.2	8.37		3,130		68.8	8.74		60		0.1		(0.13	)		302		2.5		(0.50	)
Lease financing	1,359		20.3	5.97		1,317		19.7	5.99		1,170		17.8	6.07		42		0.6		(0.02	)		189		2.5		(0.10	)
Total loans	28,938		455.4	6.26		28,895		447.2	6.15		29,300		441.3	6.00		43		8.2		0.11			(362	)	14.1		0.26
Total interest earning assets	$71,702		$581.8	3.23	%	$70,174		$577.0	3.27	%	$61,854		$568.5	3.66	%	$1,528		$4.8		(0.04	)	%	$9,848		$13.3		(0.43	)	%
Allowance for credit losses - loan portfolio	(719	)				(778	)				(930	)				59							211
Allowance for credit losses - investment securities	(9	)				(10	)				(12	)				1							3
Other non-interest earning assets	3,844					3,901					4,054					(57	)						(210	)
Total average assets	$74,818					$73,287					$64,966					$1,531							$9,852
Liabilities and Stockholders' Equity:
Interest bearing deposits:
NOW and money market	$28,205		$7.7	0.11	%	$27,773		$7.9	0.11	%	$21,829		$8.7	0.16	%	$432		$(0.2	)	-		%	$6,376		$(1.0	)	(0.05	)	%
Savings	16,324		6.8	0.17		15,621		6.4	0.16		13,890		7.5	0.22		703		0.4		0.01			2,434		(0.7	)	(0.05	)
Time deposits	6,793		11.8	0.69		6,957		12.7	0.73		7,656		17.2	0.89		(164	)	(0.9	)	(0.04	)		(863	)	(5.4	)	(0.20	)
Total interest-bearing deposits	51,322		26.3	0.20		50,351		27.0	0.21		43,375		33.4	0.31		971		(0.7	)	(0.01	)		7,947		(7.1	)	(0.11	)
Borrowings	1,163		11.6	4.01		1,284		13.7	4.28		1,354		14.4	4.26		(121	)	(2.1	)	(0.27	)		(191	)	(2.8	)	(0.25	)
Total interest-bearing liabilities	52,485		37.9	0.29		51,635		40.7	0.31		44,729		47.8	0.43		850		(2.8	)	(0.02	)		7,756		(9.9	)	(0.14	)
Net interest spread				2.94	%				2.96	%				3.23	%					(0.02	)	%					(0.29	)	%
Non-interest bearing deposits	15,455					14,955					13,303					500							2,152
Other liabilities	917					927					1,393					(10	)						(476	)
Stockholders' equity	5,961					5,770					5,541					191							420
Total average liabilities and stockholders' equity	$74,818					$73,287					$64,966					$1,531							$9,852
Net interest income / margin on a taxable equivalent basis (Non-GAAP)			$543.9	3.02	%			$536.3	3.04	%			$520.7	3.35	%			$7.6		(0.02	)	%			$23.2		(0.33	)	%
Taxable equivalent adjustment			42.6					46.9					49.1					(4.3	)						(6.5	)
Net interest income / margin non-taxable equivalent basis (GAAP)			$501.3	2.78	%			$489.4	2.77	%			$471.6	3.04	%			$11.9		0.01		%			$29.7		(0.26	)	%

Popular, Inc.
Financial Supplement to Fourth Quarter 2021 Earnings Release
Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE
(Unaudited)
	Years ended
	31-Dec-21					31-Dec-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	$39,015		$533.6	1.37	%	$28,020		$491.9	1.76	%	$10,995		$41.7		(0.39	)	%
Loans:
Commercial	13,455		723.8	5.39		13,245		692.4	5.23		210		31.4		0.16
Construction	849		45.8	5.41		913		52.4	5.74		(64	)	(6.6	)	(0.33	)
Mortgage	7,696		392.0	5.09		7,255		379.8	5.23		441		12.2		(0.14	)
Consumer	2,463		275.1	11.17		2,839		322.0	11.34		(376	)	(46.9	)	(0.17	)
Auto	3,322		280.7	8.47		3,021		271.2	8.97		301		9.5		(0.50	)
Lease financing	1,289		77.4	6.00		1,112		67.2	6.05		177		10.2		(0.05	)
Total loans	29,074		1,794.8	6.19		28,385		1,785.0	6.29		689		9.8		(0.10	)
Total interest earning assets	$68,089		$2,328.4	3.43	%	$56,405		$2,276.9	4.04	%	$11,684		$51.5		(0.61	)	%
Allowance for credit losses - loan portfolio	(796	)				(897	)				101
Allowance for credit losses - investment securities	(10	)				(13	)				3
Other non-interest earning assets	3,886					4,089					(203	)
Total average assets	$71,169					$59,584					$11,585
Liabilities and Stockholders' Equity:
Interest bearing deposits:
NOW and money market	$25,959		$31.9	0.12	%	$19,678		$54.7	0.28	%	$6,281		($22.8	)	(0.16	)	%
Savings	15,429		27.1	0.18		12,399		37.8	0.30		3,030		(10.7	)	(0.12	)
Time deposits	7,028		52.6	0.75		7,971		83.4	1.05		(943	)	(30.8	)	(0.30	)
Total interest-bearing deposits	48,416		111.6	0.23		40,048		175.9	0.44		8,368		(64.3	)	(0.21	)
Borrowings	1,276		53.4	4.19		1,344		59.1	4.40		(68	)	(5.7	)	(0.21	)
Total interest-bearing liabilities	49,692		165.0	0.33		41,392		235.0	0.57		8,300		(70.0	)	(0.24	)
Net interest spread				3.10	%				3.47	%					(0.37	)	%
Non-interest bearing deposits	14,687					11,538					3,149
Other liabilities	1,012					1,234					(222	)
Stockholders' equity	5,778					5,420					358
Total average liabilities and stockholders' equity	$71,169					$59,584					$11,585
Net interest income / margin on a taxable equivalent basis (Non-GAAP)			$2,163.4	3.19	%			$2,041.9	3.62	%			$121.5		(0.43	)	%
Taxable equivalent adjustment			205.8					185.4					20.4
Net interest income / margin non-taxable equivalent basis (GAAP)			$1,957.6	2.88	%			$1,856.6	3.29	%			$101.0		(0.41	)	%

Popular, Inc.
Financial Supplement to Fourth Quarter 2021 Earnings Release
Table F - Mortgage Banking Activities and Other Service Fees
(Unaudited)
Mortgage Banking Activities
		Quarters ended						Variance				Years ended				Variance
(In thousands)		31-Dec-21		30-Sep-21		31-Dec-20		Q4 2021 vs. Q3 2021		Q4 2021 vs. Q4 2020		31-Dec-21		31-Dec-20		2021 vs. 2020
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$9,492		$9,376		$10,242		$116		$(750	)	$38,105		$43,234		$(5,129	)
	Mortgage servicing rights fair value adjustments	1,500		(5,979	)	(8,695	)	7,479		10,195		(10,206	)	(42,055	)	31,849
Total mortgage servicing fees, net of fair value adjustments		10,992		3,397		1,547		7,595		9,445		27,899		1,179		26,720
Net gain on sale of loans, including valuation on loans held-for-sale		5,428		6,084		10,826		(656	)	(5,398	)	21,684		31,215		(9,531	)
Trading account profit (loss):
	Unrealized gains on outstanding derivative positions	-		-		4		-		(4	)	-		-		-
	Realized gains (losses) on closed derivative positions	691		(1,004	)	(2,195	)	1,695		2,886		1,323		(10,586	)	11,909
Total trading account profit (loss)		691		(1,004	)	(2,191	)	1,695		2,882		1,323		(10,586	)	11,909
Losses on repurchased loans, including interest advances		(76	)	(170	)	(452	)	94		376		(773	)	(11,407	)	10,634
Total mortgage banking activities		$17,035		$8,307		$9,730		$8,728		$7,305		$50,133		$10,401		$39,732

Other Service Fees
			Quarters ended			Variance				Years ended		Variance
(In thousands)			31-Dec-21	30-Sep-21	31-Dec-20	Q4 2021 vs. Q3 2021		Q4 2021 2020		31-Dec-21	31-Dec-20	2021 vs. 2020
Other service fees:
	Debit card fees		$12,392	$12,210	$11,210	$182		$1,182		$48,637	$39,652	$8,985
	Insurance fees		17,848	14,385	13,803	3,463		4,045		57,834	52,014	5,820
	Credit card fees		35,649	33,409	27,986	2,240		7,663		130,475	96,011	34,464
	Sale and administration of investment products		5,908	6,216	5,488	(308	)	420		23,634	21,755	1,879
	Trust fees		5,858	6,453	5,499	(595	)	359		24,318	21,191	3,127
	Other fees		6,138	7,772	7,170	(1,634	)	(1,032	)	26,350	27,269	(919	)
Total other service fees			$83,793	$80,445	$71,156	$3,348		$12,637		$311,248	$257,892	$53,356

Popular, Inc.
Financial Supplement to Fourth Quarter 2021 Earnings Release
Table G - Loans and Deposits
(Unaudited)
Loans - Ending Balances
				Variance
(In thousands)	31-Dec-21	30-Sep-21	31-Dec-20	Q4 2021 vs. Q3 2021		Q4 2021 vs. Q4 2020
Loans held-in-portfolio:
Commercial	$13,736,033	$13,303,671	$13,614,310	$432,362		$121,723
Construction	716,220	801,040	926,208	(84,820	)	(209,988	)
Leasing	1,381,319	1,348,679	1,197,661	32,640		183,658
Mortgage	7,427,196	7,539,152	7,890,680	(111,956	)	(463,484	)
Auto	3,412,187	3,376,694	3,132,228	35,493		279,959
Consumer	2,570,934	2,486,136	2,624,109	84,798		(53,175	)
Total loans held-in-portfolio	$29,243,889	$28,855,372	$29,385,196	$388,517		$(141,307	)
Loans held-for-sale:
Commercial	$-	$-	$2,738	$-		$(2,738	)
Mortgage	59,168	91,313	96,717	(32,145	)	(37,549	)
Total loans held-for-sale	$59,168	$91,313	$99,455	$(32,145	)	$(40,287	)
Total loans	$29,303,057	$28,946,685	$29,484,651	$356,372		$(181,594	)

Deposits - Ending Balances
				Variance
(In thousands)	31-Dec-21	30-Sep-21	31-Dec-20	Q4 2021 vs. Q3 2021		Q4 2021 vs. Q4 2020
Demand deposits [1]	$25,889,732	$25,495,481	$22,532,729	$394,251		$3,357,003
Savings, NOW and money market deposits (non-brokered)	33,674,134	32,867,805	26,390,565	806,329		7,283,569
Savings, NOW and money market deposits (brokered)	729,073	718,155	635,198	10,918		93,875
Time deposits (non-brokered)	6,685,938	6,906,509	7,130,749	(220,571	)	(444,811	)
Time deposits (brokered CDs)	26,211	25,611	177,099	600		(150,888	)
Total deposits	$67,005,088	$66,013,561	$56,866,340	$991,527		$10,138,748
[1] Includes interest and non-interest bearing demand deposits.

Popular, Inc.
Financial Supplement to Fourth Quarter 2021 Earnings Release
Table H - Loan Delinquency - Puerto Rico Operations
(Unaudited)
31-Dec-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			$	314		$	-		$	272		$	586		$	154,183		$	154,769			$	272		$	-
Commercial real estate:
	Non-owner occupied			2,399			136			20,716			23,251			2,266,672			2,289,923				20,716			-
	Owner occupied			3,329			278			54,335			57,942			1,365,787			1,423,729				54,335			-
Commercial and industrial				3,438			1,727			45,242			50,407			3,478,041			3,528,448				44,724			518
Construction				-			-			485			485			86,626			87,111				485			-
Mortgage				217,830			81,754			805,245			1,104,829			5,147,037			6,251,866				333,887			471,358
Leasing				9,240			2,037			3,102			14,379			1,366,940			1,381,319				3,102			-
Consumer:
	Credit cards			5,768			3,520			8,577			17,865			901,986			919,851				-			8,577
	Home equity lines of credit			46			-			23			69			3,502			3,571				-			23
	Personal			10,027			6,072			21,235			37,334			1,250,726			1,288,060				21,235			-
	Auto			59,128			15,019			23,085			97,232			3,314,955			3,412,187				23,085			-
	Other			432			714			12,621			13,767			110,781			124,548				12,448			173
Total			$	311,951		$	111,257		$	994,938		$	1,418,146		$	19,447,236		$	20,865,382			$	514,289		$	480,649
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

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			$	(78	)		$	-			$	(124	)		$	(202	)		$	4,544			$	4,342				$	(124	)		$	-
Commercial real estate:
	Non-owner occupied			1,738				(17,247	)			(39,427	)			(54,936	)			(1,769	)			(56,705	)				(39,427	)			-
	Owner occupied			610				(336	)			(17,528	)			(17,254	)			(28,716	)			(45,970	)				(17,528	)			-
Commercial and industrial				1,797				1,151				(6,214	)			(3,266	)			(140,225	)			(143,491	)				(6,268	)			54
Construction				-				-				(14,392	)			(14,392	)			(25,976	)			(40,368	)				(14,392	)			-
Mortgage				19,875				5,409				(90,963	)			(65,679	)			(57,504	)			(123,183	)				(20,668	)			(70,295	)
Leasing				1,047				68				560				1,675				30,965				32,640					560				-
Consumer:
	Credit cards			557				(147	)			1,019				1,429				31,847				33,276					-				1,019
	Home equity lines of credit			-				-				23				23				(5	)			18					-				23
	Personal			698				118				(411	)			405				12,278				12,683					(411	)			-
	Auto			6,642				3,356				5,740				15,738				19,755				35,493					5,740				-
	Other			39				638				(2,000	)			(1,323	)			2,289				966					(2,064	)			64
Total			$	32,925			$	(6,990	)		$	(163,717	)		$	(137,782	)		$	(152,517	)		$	(290,299	)			$	(94,582	)		$	(69,135	)

Popular, Inc.
Financial Supplement to Fourth Quarter 2021 Earnings Release
Table I - Loan Delinquency - Popular U.S. Operations
(Unaudited)
December 31, 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			$	3,826		$	-		$	-		$	3,826		$	1,804,035		$	1,807,861			$	-		$	-
Commercial real estate:
	Non-owner occupied			5,721			683			622			7,026			2,316,441			2,323,467				622			-
	Owner occupied			1,095			-			1,013			2,108			392,265			394,373				1,013			-
Commercial and industrial				9,410			2,680			4,015			16,105			1,797,358			1,813,463				3,897			118
Construction				-			-			-			-			629,109			629,109				-			-
Mortgage				11,711			2,573			21,969			36,253			1,139,077			1,175,330				21,969			-
Consumer:
	Credit cards			-			-			-			-			10			10				-			-
	Home equity lines of credit			71			34			5,406			5,511			69,780			75,291				5,406			-
	Personal			863			574			681			2,118			152,827			154,945				681			-
	Other			-			-			-			-			4,658			4,658				-			-
Total			$	32,697		$	6,544		$	33,706		$	72,947		$	8,305,560		$	8,378,507			$	33,588		$	118
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

Variance
				Past due																								Past due 90 days or more
			30-59				60-89				90 days				Total													Non-accrual					Accruing
(In thousands)			days				days				or more				past due				Current				Loans HIP					loans				loans
Commercial multi-family			$	3,826			$	(22,171	)		$	-			$	(18,345	)		$	94,527			$	76,182				$	-			$	-
Commercial real estate:
	Non-owner occupied			3,152				(3,949	)			248				(549	)			286,927				286,378					248				-
	Owner occupied			(63	)			-				27				(36	)			48,835				48,799					27				-
Commercial and industrial				8,606				2,679				2,587				13,872				248,955				262,827					2,470				117
Construction				(14,978	)			-				-				(14,978	)			(29,474	)			(44,452	)				-				-
Mortgage				10,342				(260	)			7,481				17,563				(6,336	)			11,227					7,481				-
Consumer:
	Credit cards			-				-				-				-				(16	)			(16	)				-				-
	Home equity lines of credit			(619	)			(42	)			(535	)			(1,196	)			(3,262	)			(4,458	)				(535	)			-
	Personal			275				30				(67	)			238				41,229				41,467					(67	)			-
	Other			(16	)			-				-				(16	)			878				862					-				-
Total			$	10,525			$	(23,713	)		$	9,741			$	(3,447	)		$	682,263			$	678,816				$	9,624			$	117

Popular, Inc.
Financial Supplement to Fourth Quarter 2021 Earnings Release
Table J - Loan Delinquency - Consolidated
(Unaudited)
31-Dec-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		$	4,140		$	-		$	272		$	4,412		$	1,958,218		$	1,962,630			$	272		$	-
Commercial real estate:
	Non-owner occupied		8,120			819			21,338			30,277			4,583,113			4,613,390				21,338			-
	Owner occupied		4,424			278			55,348			60,050			1,758,052			1,818,102				55,348			-
Commercial and industrial			12,848			4,407			49,257			66,512			5,275,399			5,341,911				48,621			636
Construction			-			-			485			485			715,735			716,220				485			-
Mortgage			229,541			84,327			827,214			1,141,082			6,286,114			7,427,196				355,856			471,358
Leasing			9,240			2,037			3,102			14,379			1,366,940			1,381,319				3,102			-
Consumer:
	Credit cards		5,768			3,520			8,577			17,865			901,996			919,861				-			8,577
	Home equity lines of credit		117			34			5,429			5,580			73,282			78,862				5,406			23
	Personal		10,890			6,646			21,916			39,452			1,403,553			1,443,005				21,916			-
	Auto		59,128			15,019			23,085			97,232			3,314,955			3,412,187				23,085			-
	Other		432			714			12,621			13,767			115,439			129,206				12,448			173
Total		$	344,648		$	117,801		$	1,028,644		$	1,491,093		$	27,752,796		$	29,243,889			$	547,877		$	480,767
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

Variance
			Past due																								Past due 90 days or more
		30-59				60-89				90 days				Total													Non-accrual					Accruing
(In thousands)		days				days				or more				past due				Current				Loans HIP					loans				loans
Commercial multi-family		$	3,748			$	(22,171	)		$	(124	)		$	(18,547	)		$	99,071			$	80,524				$	(124	)		$	-
Commercial real estate:
	Non-owner occupied		4,890				(21,196	)			(39,179	)			(55,485	)			285,158				229,673					(39,179	)			-
	Owner occupied		547				(336	)			(17,501	)			(17,290	)			20,119				2,829					(17,501	)			-
Commercial and industrial			10,403				3,830				(3,627	)			10,606				108,730				119,336					(3,798	)			171
Construction			(14,978	)			-				(14,392	)			(29,370	)			(55,450	)			(84,820	)				(14,392	)			-
Mortgage			30,217				5,149				(83,482	)			(48,116	)			(63,840	)			(111,956	)				(13,187	)			(70,295	)
Leasing			1,047				68				560				1,675				30,965				32,640					560				-
Consumer:
	Credit cards		557				(147	)			1,019				1,429				31,831				33,260					-				1,019
	Home equity lines of credit		(619	)			(42	)			(512	)			(1,173	)			(3,267	)			(4,440	)				(535	)			23
	Personal		973				148				(478	)			643				53,507				54,150					(478	)			-
	Auto		6,642				3,356				5,740				15,738				19,755				35,493					5,740				-
	Other		23				638				(2,000	)			(1,339	)			3,167				1,828					(2,064	)			64
Total		$	43,450			$	(30,703	)		$	(153,976	)		$	(141,229	)		$	529,746			$	388,517				$	(84,958	)		$	(69,018	)

Popular, Inc.
Financial Supplement to Fourth Quarter 2021 Earnings Release
Table K - Non-Performing Assets
(Unaudited)
										Variance
(Dollars in thousands)	31-Dec-21	As a % of loans HIP by category		30-Sep-21	As a % of loans HIP by category		31-Dec-20	As a % of loans HIP by category		Q4 2021 vs. Q3 2021		Q4 2021 vs. Q4 2020
Non-accrual loans:
Commercial	$125,579	0.9	%	$186,181	1.4	%	$210,080	1.5	%	$(60,602	)	$(84,501	)
Construction	485	0.1		14,877	1.9		29,057	3.1		(14,392	)	(28,572	)
Leasing	3,102	0.2		2,542	0.2		3,441	0.3		560		(339	)
Mortgage	355,856	4.8		369,043	4.9		429,207	5.4		(13,187	)	(73,351	)
Auto	23,085	0.7		17,345	0.5		15,736	0.5		5,740		7,349
Consumer	39,770	1.5		42,847	1.7		50,253	1.9		(3,077	)	(10,483	)
Total non-performing loans held-in-portfolio	547,877	1.9	%	632,835	2.2	%	737,774	2.5	%	(84,958	)	(189,897	)
Non-performing loans held-for-sale [1]	-			-			2,738			-		(2,738	)
Other real estate owned (“OREO”)	85,077			76,828			83,146			8,249		1,931
Total non-performing assets	$632,954			$709,663			$823,658			$(76,709	)	$(190,704	)
Accruing loans past due 90 days or more [2]	$480,767			$549,785			$1,028,064			$(69,018	)	$(547,297	)
Ratios:
Non-performing assets to total assets	0.84	%		0.96	%		1.25	%
Non-performing loans held-in-portfolio to loans held-in-portfolio	1.87			2.19			2.51
Allowance for credit losses to loans held-in-portfolio	2.38			2.49			3.05
Allowance for credit losses to non-performing loans, excluding loans held-for-sale	126.92			113.55			121.48
[1] There were no non-performing loans held-for-sale as of December 31, 2021 and September 30, 2021 (December 31, 2020 - $3 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 $13 million at December 31, 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 (September 30, 2021 - $12 million; December 31, 2020 - $57 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 $304 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2021 (September 30, 2021 - $350 million; December 31, 2020 - $329 million). Furthermore, the Corporation has approximately $50 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (September 30, 2021 - $53 million; December 31, 2020 - $60 million).

Popular, Inc.
Financial Supplement to Fourth Quarter 2021 Earnings Release
Table L - Activity in Non-Performing Loans
(Unaudited)
Commercial loans held-in-portfolio:
		Quarter ended						Quarter ended
		31-Dec-21						30-Sep-21
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$183,394		$2,787		$186,181		$217,703		$7,862		$225,565
Plus:
	New non-performing loans	2,297		3,208		5,505		7,454		1,039		8,493
	Advances on existing non-performing loans	-		35		35		-		10		10
Less:
	Non-performing loans transferred to OREO	(996	)	-		(996	)	(2,069	)	-		(2,069	)
	Non-performing loans charged-off	(2,412	)	(66	)	(2,478	)	(8,617	)	-		(8,617	)
	Loans returned to accrual status / loan collections	(62,236	)	(432	)	(62,668	)	(31,077	)	(6,124	)	(37,201	)
Ending balance NPLs		$120,047		$5,532		$125,579		$183,394		$2,787		$186,181
Construction loans held-in-portfolio:
		Quarter ended						Quarter ended
		31-Dec-21						30-Sep-21
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$14,877		$-		$14,877		$14,877		$-		$14,877
Plus:
	New non-performing loans	481		-		481		-		-		-
Less:
	Loans returned to accrual status / loan collections	(14,873	)	-		(14,873	)	-		-		-
Ending balance NPLs		$485		$-		$485		$14,877		$-		$14,877
Mortgage loans held-in-portfolio:
		Quarter ended						Quarter ended
		31-Dec-21						30-Sep-21
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$354,555		$14,488		$369,043		$370,653		$13,323		$383,976
Plus:
	New non-performing loans	36,210		12,084		48,294		38,606		4,662		43,268
	Advances on existing non-performing loans	-		14		14		-		2		2
Less:
	Non-performing loans transferred to OREO	(7,116	)	-		(7,116	)	(8,984	)	-		(8,984	)
	Non-performing loans charged-off	(366	)	(26	)	(392	)	(1,023	)	-		(1,023	)
	Loans returned to accrual status / loan collections	(49,396	)	(4,591	)	(53,987	)	(44,697	)	(3,499	)	(48,196	)
Ending balance NPLs		$333,887		$21,969		$355,856		$354,555		$14,488		$369,043
Total non-performing loans held-in-portfolio (excluding consumer):
		Quarter ended						Quarter ended
		31-Dec-21						30-Sep-21
(In thousands)		BPPR		Popular U.S.		Popular, Inc.		BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs		$552,826		$17,275		$570,101		$603,233		$21,185		$624,418
Plus:
	New non-performing loans	38,988		15,292		54,280		46,060		5,701		51,761
	Advances on existing non-performing loans	-		49		49		-		12		12
Less:
	Non-performing loans transferred to OREO	(8,112	)	-		(8,112	)	(11,053	)	-		(11,053	)
	Non-performing loans charged-off	(2,778	)	(92	)	(2,870	)	(9,640	)	-		(9,640	)
	Loans returned to accrual status / loan collections	(126,505	)	(5,023	)	(131,528	)	(75,774	)	(9,623	)	(85,397	)
Ending balance NPLs		$454,419		$27,501		$481,920		$552,826		$17,275		$570,101

Popular, Inc.
Financial Supplement to Fourth Quarter 2021 Earnings Release
Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)
	Quarters ended
(Dollars in thousands)	31-Dec-21			30-Sep-21			31-Dec-20
Balance at beginning of period - loans held-in-portfolio	$718,575			$785,790			$925,850
Provision for credit losses (benefit)	(31,421	)		(58,645	)		10,785
Initial allowance for credit losses - PCD Loans	331			253			1,693
	687,485			727,398			938,328
Net loans charged-off (recovered):
BPPR
Commercial	(11,346	)		4,357			17,171
Construction	(1,518	)		(2,223	)		(584	)
Lease financing	564			304			996
Mortgage	(4,398	)		(2,111	)		4,579
Consumer	9,083			9,009			19,055
Total BPPR	(7,615	)		9,336			41,217
Popular U.S.
Commercial	(387	)		(463	)		(1,739	)
Construction	(213	)		-			444
Mortgage	569			(48	)		15
Consumer	(235	)		(2	)		2,141
Total Popular U.S.	(266	)		(513	)		861
Total loans charged-off (recovered) - Popular, Inc.	(7,881	)		8,823			42,078
Balance at end of period - loans held-in-portfolio	$695,366			$718,575			$896,250
Balance at beginning of period - unfunded commitments	$8,400			$9,936			$13,295
Provision for credit losses (benefit)	(503	)		(1,536	)		2,556
Balance at end of period - unfunded commitments [1]	$7,897			$8,400			$15,851
POPULAR, INC.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	(0.11	)	%	0.12		%	0.58		%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	N.M.			N.M.			25.63		%
BPPR
Annualized net charge-offs (recoveries) to average loans held-in-portfolio	(0.15	)	%	0.18		%	0.77		%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	N.M.			N.M.			60.06		%
Popular U.S.
Annualized net charge-offs to average loans held-in-portfolio	(0.01	)	%	(0.03	)	%	0.04		%
Provision for credit losses (benefit) - loan portfolios to net charge-offs	N.M.			N.M.			N.M.
N.M. - Not meaningful.
[1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.
				Year ended			Year ended
(Dollars in thousands)				31-Dec-21			31-Dec-20
				Total			Total
Balance at beginning of period - loans held-in-portfolio				$896,250			$477,708
Impact of adopting CECL				-			315,107
Provision for credit losses (benefit)				(183,345	)		282,336
Initial allowance for credit losses - PCD Loans				3,142			7,512
				716,047			1,082,663
Net loans charged-off (recovered):
BPPR
Commercial				(18,300	)		16,889
Construction				1,697			(954	)
Lease financing				1,379			7,364
Mortgage				2,729			19,635
Consumer				32,207			133,712
Total BPPR				19,712			176,646
Popular U.S.
Commercial				(1,247	)		(2,215	)
Construction				(120	)		289
Mortgage				18			(10	)
Consumer				2,318			11,703
Total Popular U.S.				969			9,767
Total loans charged-off - Popular, Inc.				20,681			186,413
Balance at end of period - loans held-in-portfolio				$695,366			$896,250
Balance at beginning of period - unfunded commitments				$15,851			$8,717
Impact of adopting CECL				-			(5,460	)
Provision for credit losses (benefit)				(7,954	)		12,594
Balance at end of period - unfunded commitments [1]				$7,897			$15,851
POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio				0.07		%	0.66		%
Provision for credit losses (benefit) - loan portfolios to net charge-offs				N.M.			151.46		%
BPPR
Annualized net charge-offs to average loans held-in-portfolio				0.09		%	0.85		%
Provision for credit losses (benefit) - loan portfolios to net charge-offs				N.M.			116.54		%
Popular U.S.
Annualized net charge-offs to average loans held-in-portfolio				0.01		%	0.13		%
Provision for credit losses (benefit) - loan portfolios to net charge-offs				N.M.			782.95		%
N.M. - Not meaningful.
[1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

Popular, Inc.
Financial Supplement to Fourth Quarter 2021 Earnings Release
Table N - Allowance for Credit Losses "ACL"- Loan Portfolios - CONSOLIDATED
(Unaudited)
31-Dec-21
(Dollars in thousands)		Commercial			Construction			Mortgage			Lease financing		Consumer		Total
Total ACL		$215,805			$6,363			$154,478			$17,578		$301,142		$695,366
Total loans held-in-portfolio		$13,736,033			$716,220			$7,427,196			$1,381,319		$5,983,121		$29,243,889
ACL to loans held-in-portfolio		1.57		%	0.89		%	2.08		%	1.27	%	5.03	%	2.38		%
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		%
Variance
(Dollars in thousands)		Commercial			Construction			Mortgage			Lease financing		Consumer		Total
Total ACL		$(19,009	)		$(3,487	)		$(15,900	)		$5,944		$9,243		$(23,209	)
Total loans held-in-portfolio		$432,362			$(84,820	)		$(111,956	)		$32,640		$120,291		$388,517

Popular, Inc.
Financial Supplement to Fourth Quarter 2021 Earnings Release
Table O - Allowance for Credit Losses "ACL"- Loan Portfolios - PUERTO RICO OPERATIONS
(Unaudited)
31-Dec-21
Puerto Rico
(In thousands)	Commercial			Construction			Mortgage			Lease financing		Consumer		Total
ACL	$151,928			$1,641			$138,286			$17,578		$284,729		$594,162
Loans held-in-portfolio	$7,396,869			$87,111			$6,251,866			$1,381,319		$5,748,217		$20,865,382
ACL to loans held-in-portfolio	2.05		%	1.88		%	2.21		%	1.27	%	4.95	%	2.85		%
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		%
Variance
(In thousands)	Commercial			Construction			Mortgage			Lease financing		Consumer		Total
ACL	$(16,576	)		$(270	)		$(16,776	)		$5,944		$5,062		$(22,616	)
Loans held-in-portfolio	$(241,824	)		$(40,368	)		$(123,183	)		$32,640		$82,436		$(290,299	)

Popular, Inc.
Financial Supplement to Fourth Quarter 2021 Earnings Release
Table P - Allowance for Credit Losses "ACL"- Loan Portfolios - POPULAR U.S. OPERATIONS
(Unaudited)
31-Dec-21
Popular U.S.
(In thousands)	Commercial			Construction			Mortgage		Consumer		Total
ACL	$63,877			$4,722			$16,192		$16,413		$101,204
Loans held-in-portfolio	$6,339,164			$629,109			$1,175,330		$234,904		$8,378,507
ACL to loans held-in-portfolio	1.01		%	0.75		%	1.38	%	6.99	%	1.21		%
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		%
Variance
(In thousands)	Commercial			Construction			Mortgage		Consumer		Total
ACL	$(2,433	)		$(3,217	)		$876		$4,181		$(593	)
Loans held-in-portfolio	$674,186			$(44,452	)		$11,227		$37,855		$678,816

Popular, Inc.
Financial Supplement to Fourth Quarter 2021 Earnings Release
Table Q - Reconciliation to GAAP Financial Measures
(Unaudited)
(In thousands, except share or per share information)	31-Dec-21			30-Sep-21			31-Dec-20
Total stockholders’ equity	$5,969,397			$5,982,971			$6,028,687
Less: Preferred stock	(22,143	)		(22,143	)		(22,143	)
Less: Goodwill	(712,616	)		(671,122	)		(671,122	)
Less: Other intangibles	(13,332	)		(19,657	)		(22,466	)
Total tangible common equity	$5,221,306			$5,270,049			$5,312,956
Total assets	$75,088,659			$74,189,163			$65,926,000
Less: Goodwill	(712,616	)		(671,122	)		(671,122	)
Less: Other intangibles	(13,332	)		(19,657	)		(22,466	)
Total tangible assets	$74,362,711			$73,498,384			$65,232,412
Tangible common equity to tangible assets	7.02		%	7.17		%	8.14		%
Common shares outstanding at end of period	79,851,169			79,841,564			84,244,235
Tangible book value per common share	$65.39			$66.01			$63.07
	Quarterly average
Total stockholders’ equity [1]	$5,961,214			$5,769,545			$5,540,456
Less: Preferred Stock	(22,143	)		(22,143	)		(22,143	)
Less: Goodwill	(706,101	)		(671,121	)		(671,121	)
Less: Other intangibles	(19,858	)		(20,132	)		(23,166	)
Total tangible equity	$5,213,112			$5,056,149			$4,824,026
Return on average tangible common equity	15.66		%	19.44		%	14.50		%
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale.
	Year-to-date average
Total stockholders’ equity [1]	$5,777,652						$5,419,938
Less: Preferred Stock	(22,143	)					(26,277	)
Less: Goodwill	(679,938	)					(671,121	)
Less: Other intangibles	(20,853	)					(25,154	)
Total tangible equity	$5,054,718						$4,697,386
Return on average tangible common equity	18.47		%				10.75		%
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale.

 

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