Form 8-K

POPULAR, INC.

(Registrant)

Date: January 28, 2021

/s/ Jorge J. García

Jorge J. García

Senior Vice President and Corporate Comptroller

Exhibit 99.1

LOGO

Popular, Inc. Announces Fourth Quarter 2020 Financial Results

•

Net income of $176.3 million in Q4 2020, compared to net income of $168.4 million in Q3 2020.

•

Net income of $506.6 million for the year 2020, compared to net income of $671.1 million for the year 2019.

•

Net interest margin of 3.04% in Q4 2020, compared to 3.06% in Q3 2020; net interest margin on a taxable equivalent basis of 3.35% in Q4 2020, compared to 3.37% in Q3 2020.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) increased by $3.4 million from Q3 2020; NPLs to loans ratio remained flat at 2.5% vs. Q3 2020;

•

Net charge-offs (“NCOs”) increased by $25.2 million from Q3 2020; NCOs at 0.58% of average loans held-in-portfolio vs. 0.24% in Q3 2020;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 3.05% vs. 3.15% in Q3 2020; and

•

ACL to NPLs at 121.5% vs. 126.1% in Q3 2020.

•

Common Equity Tier 1 ratio of 16.26%, Common Equity per Share of $71.30 and Tangible Book Value per Share of $63.07 at December 31, 2020.

SAN JUAN, Puerto Rico — (BUSINESS WIRE) — Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $176.3 million for the quarter ended December 31, 2020, compared to net income of $168.4 million for the quarter ended September 30, 2020.

Ignacio Alvarez, President and Chief Executive Officer, said: “2020 was a challenging year, beginning with a series of devastating earthquakes in Southwest Puerto Rico and followed by the unprecedented global pandemic that significantly impacted our lives and economic activity. Notwithstanding these challenges, we were able to generate $507 million in net income, even after recognizing $293 million in provision for credit losses, largely driven by the impact of the pandemic. These results reflect the strength of our franchise and diversified sources of revenue.

We closed 2020 on a high note, generating net income of $176 million in the fourth quarter, one of our best quarters ever, mainly due to higher net interest income and control of expenses. We ended the year with robust levels of capital and liquidity which will allow us to continue to serve our clients and return capital to shareholders.

I am extremely proud of what we have been able to accomplish in this difficult environment. I am especially proud of our employees for their commitment to serve our customers, whether working on the front lines or adapting quickly to working from home. We are blessed to be part of a team of dedicated colleagues who have met these challenges with courage and resilience. As we continue to witness advances in the medical field, we look forward to 2021 with a renewed sense of commitment and optimism.”

Significant Events

Financial Highlights

For the fourth quarter of 2020, the Corporation recorded net income of $176.3 million, compared to a net income of $168.4 million for the previous quarter. The Corporation continues to monitor and be attentive to the impact of the COVID-19 pandemic, on the markets in which it operates and on our financial results.

Net interest income for the quarter increased by $10.6 million, although net interest margin declined by 2 basis points to 3.04% due to an increase in lower yielding assets. The net interest margin continues to reflect the increase in investments in overnight Fed Funds, U.S. Treasury and U.S. Agency debt securities as well as an average balance of $1.4 billion loans issued pursuant to the U.S. Small Business Administration’s (“SBA”) Payment Protection Program (“PPP”), which are all lower yielding assets.

Coronavirus (COVID-19) Pandemic

The disruptions related to the COVID-19 pandemic continue to have an impact on the macroeconomic environment and therefore on the financial results of the Corporation. Although certain measures initially imposed in response to the pandemic by the governments of Puerto Rico, the United States and United States Virgin Islands, including lockdowns, business closures, mandatory curfews and limits to public activities, were thereafter gradually relaxed throughout 2020 to allow for the gradual reopening of the economy, certain restrictions remained in place or were reinstated during the fourth quarter of 2020 which resulted in many businesses not being able to operate at their full capacity. The Corporation’s results for the third and fourth quarters of 2020 reflect the benefit of increased economic activity resulting from such reopening and the related improvement in the macroeconomic environment, as well as the impact of the various government stimulus programs launched in response to the pandemic.

As previously disclosed, beginning in March 2020, the Corporation implemented several financial relief programs in response to the pandemic, including loan payment moratoriums, suspensions of foreclosures and other collection activity, as well as waivers of certain fees and service charges. During the third quarter of 2020, the Corporation reinstated the imposition of the fees it elected to waive in connection with such financial relief programs and resumed delinquent loan collection efforts. During 2020, the Corporation had granted loan payment moratoriums to 127,117 eligible retail customers with an aggregate book value of $4.4 billion, and to 5,099 eligible commercial clients with an aggregate book value of $3.9 billion as detailed below. These include loan payment moratoriums of government guaranteed loans that qualified for disaster relief programs as well as other available alternatives. While COVID-19-related moratoriums were offered beginning in March of 2020, certain clients benefitted from loan payment moratoriums offered by the Corporation since mid-January 2020 as a result of seismic activity in the Southern region of the island in January 2020. At December 31, 2020, 127,857 loans with an aggregate book value of $7.8 billion had already completed their payment moratorium period, while 4,359 loans with an aggregate book value of $0.5 billion remained under the moratorium. As of quarter-end, 97% of COVID-19 payment deferrals had expired. After excluding government guaranteed loans, 94% of remaining loans were current on their payments as of December 31, 2020. Loans considered current exclude those loans for which the COVID-19 related modification has expired but have subsequently been subject to other loss mitigation alternatives. The following table presents the moratoriums granted by loan portfolio.


Loan portfolio affected by COVID-19-related moratoriums	Total Moratoriums Granted							Active Moratoriums
Loan portfolio affected by COVID-19-related moratoriums	Loan count		Book Value (In thousands)		Percentage by portfolio			Loan count		Book Value (In thousands)		Percentage by portfolio
Mortgage		24,378	$	2,862,684		36.3	%		4,248	$	442,329		5.6	%
Auto loans		48,819		790,798		25.2	%		—		—		—	%
Lease financing		10,803		365,198		30.5	%		—		—		—	%
Credit cards		19,615		96,045		10.4	%		—		—		—	%
Other consumer loans		23,502		307,746		18.1	%		91		1,077		0.1	%
Commercial		5,099		3,880,818		26.7	%		20		61,634		0.4	%

Total		132,216	$	8,303,289		28.3	%		4,359	$	505,040		1.7	%

The delinquency status of loans subject to the Corporation’s payment moratorium programs remains unaltered during the payment deferral period and the Corporation continues to accrue interest income during such term.

The extent to which the pandemic further impacts our business, results of operations and financial condition (including our regulatory capital, liquidity ratios and realizability of deferred tax assets), as well as the operations of our clients, customers, service providers and suppliers, will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic, the speed and strength of economic recovery and actions taken by governmental authorities and other third parties in response thereto.

Popular Bank’s New York Branches Realignment

As previously disclosed, on October 27, 2020, Popular Bank (“PB”), the United States mainland banking subsidiary of the Corporation, authorized and approved a strategic realignment of its New York Metro branch network that will result in eleven (11) branch closures and related staffing reductions. The branch closures are expected to be completed by January 29, 2021.

This strategic realignment, which will allow PB to reduce its operating expenses, leverage resources to enhance its focus on small and medium size businesses, as well as support changing customer behaviors, was approved after an assessment of PB’s current branch network, including its usage, proximity to its other branches and customer needs. PB will maintain in its New York Metro region its largest regional retail network in the mainland US, with twenty-seven (27) branches located throughout Brooklyn, Bronx, Manhattan and Queens, as well as in northern New Jersey.

During the fourth quarter of 2020, the Corporation recorded a total pre-tax charge of approximately $23.2 million related to the branch realignment. This aggregate pre-tax charge included approximately $2.1 million associated with severance and related benefit costs for the 83 impacted employees and charges of approximately $21.1 million related to the abandonment of real property leases, including the impairment of right-of-use assets. The Corporation expects to incur an additional $2.0 million in expenses during 2021 related to this initiative and anticipates annual operating expense savings of approximately $12.3 million as a result of this strategic realignment.

Earnings Highlights


(Unaudited)	Quarters ended						Years ended
(Dollars in thousands, except per share information)	31-Dec-20		30-Sep-20		31-Dec-19		31-Dec-20		31-Dec-19
Net interest income	$	471,616	$	461,021	$	467,424	$	1,856,613	$	1,891,694
Provision for credit losses		21,218		19,138		47,224		292,536		165,779

Net interest income after provision for credit losses		450,398		441,883		420,200		1,564,077		1,725,915
Other non-interest income		144,847		128,767		152,415		512,312		569,883
Operating expenses		375,924		361,066		390,572		1,457,829		1,477,482

Income before income tax		219,321		209,584		182,043		618,560		818,316
Income tax expense		43,045		41,168		15,258		111,938		147,181

Net income	$	176,276	$	168,416	$	166,785	$	506,622	$	671,135

Net income applicable to common stock	$	175,923	$	168,064	$	165,854	$	504,864	$	667,412

Net income per common share - basic	$	2.10	$	2.01	$	1.72	$	5.88	$	6.89
Net income per common share - diluted	$	2.10	$	2.00	$	1.72	$	5.87	$	6.88

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

Net interest income for the quarter ended December 31, 2020 was $471.6 million compared to $461.0 million in the previous quarter, an increase of $10.6 million. Net interest income, on a taxable equivalent basis, for the fourth quarter of 2020 was $520.7 million, an increase of $13.8 million when compared to $506.9 million in the third quarter of 2020.

The net interest margin decreased 2 basis points to 3.04% in the fourth quarter of 2020, compared to 3.06% in the previous quarter. The reduction in the margin reflects an increase in the investments in overnight Fed Funds and in U.S Treasury and U.S. Agency debt securities, partially offset by the decrease in deposit costs. On a taxable equivalent basis, the net interest margin was 3.35 % compared to 3.37% in the third quarter of 2020, a decrease of 2 basis points. The main variances in net interest income on a taxable equivalent basis were:

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Higher income from money market, trading and investment securities by $9.7 million as maturities from short-term U.S. Treasury securities were reinvested in higher yielding mortgage-backed securities. Investment securities also reflected an increase of $1.2 billion in average volume resulting from the increase in average deposits of $1.7 billion. The change in the composition of the investment portfolio resulted in a higher yield of 7 basis points;

•

interest income from loans remained flat quarter over quarter but reflected the variances in the respective portfolios, as follows:

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The repurchase of $808 million in mortgage loans at the end of the third quarter of 2020 was the main driver of the increase in mortgage loan interest income of $2.8 million and of the decrease of 38 basis points in the portfolio yield, as the yield on these loans is approximately 3.53%;

•

consumer loans, including credit cards decreased $116 million in average or $3.6 million in interest income; and

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the combined balance of auto and lease financing increased $172 million but resulted in a lower yield driven by a lower discount amortization of the portfolio acquired from Wells Fargo in 2018 and a higher amortization of deferred loan origination fees.

The above changes in portfolio composition resulted in a reduction of the total loan yield of 16 basis points when compared to the previous quarter. The Corporation recognized income of $11.5 million related to loans issued under the SBA PPP program, compared to $10.3 million in the previous quarter. These loans carry a yield of approximately 3.23%, including the amortization of fees received under the program, that at December 31, 2020 had $33.1 million in unamortized balance; and

•

lower interest expense on deposits by $4.2 million, or 4 basis points, due to lower interest cost, mainly at PB.

Net interest income for the Banco Popular de Puerto Rico (“BPPR”) segment amounted to $402.1 million for the quarter ended December 31, 2020, compared to $394.7 million in the previous quarter. Net interest margin for the fourth quarter of 2020 was 3.07%, a decrease of 6 basis points when compared to 3.13% for the previous quarter. As discussed above, the net interest margin was impacted by higher average balances of Fed Funds and other investment securities, which carry a low yield. The cost of interest-bearing deposits for the quarter was 0.22%, compared to 0.24% for the previous quarter. Total cost of deposits for the quarter was 0.17%, compared to 0.18% reported in the third quarter of 2020.

Net interest income for PB was $79.6 million for the quarter ended December 31, 2020, compared to $76.5 million during the previous quarter. The increase of $3.1 million in net interest income was primarily due to lower deposit costs. Net interest margin for the quarter was 3.35%, an increase of 17 basis points when compared to 3.18% reported in the third quarter of 2020, mainly due to a decrease in deposit costs. The cost of interest-bearing deposits was 0.79%, compared to 0.98% in the previous quarter. Total cost of deposits for the quarter, including demand deposits, was 0.65%, compared to 0.81% reported in the third quarter of 2020.

Non-interest income

Non-interest income increased by $16.1 million to $144.9 million for the quarter ended December 31, 2020, compared to $128.8 million for the quarter ended September 30, 2020. The increase in non-interest income was primarily driven by:

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higher service charges on deposit accounts by $2.3 million, mainly in the BPPR segment, due to higher non-sufficient funds and ACH return fees;

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higher other service fees by $1.3 million, principally at the BPPR segment, due to higher credit card fees by $0.9 million, mainly in interchange income resulting from higher transactional volumes, and higher trust fees by $0.6 million;

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higher income from mortgage banking activities by $19.3 million mainly due to the impact during the third quarter of 2020 of the bulk loan repurchase completed by BPPR from its GNMA, FNMA and FHLMC servicing portfolio which resulted in a $8.8 million negative fair value adjustment to its mortgage servicing rights (“MSRs”), a $10.5 million loss in interest advances related to GNMA loans, offset by $3.4 million in fees recognized in connection with the bulk loan repurchase; and

•

a favorable variance in net gain (loss) on sale of loans, including valuation adjustments, of $2.5 million mainly due to a $2.0 million negative adjustment recognized during the third quarter of 2020 on the held-for-sale taxi medallion portfolio at PB;

partially offset by:

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a decrease in net gain, including impairment, on equity securities of $3.7 million mainly related to a $4.1 million gain on sale of certain equity securities at PB during the third quarter of 2020;

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an unfavorable variance in adjustments to indemnity reserves on previously sold loans of $2.0 million in part due to a recourse reserve release of $5.1 million related to the bulk loan repurchase from FNMA and FHLMC during the third quarter of 2020; and

•

lower other operating income by $3.8 million mainly due to lower net earnings from the combined portfolio of investments under the equity method by $4.2 million.

Refer to Table B for further details.

Operating expenses

Operating expenses for the fourth quarter of 2020 totaled $375.9 million, an increase of $14.9 million from the third quarter of 2020. The quarter reflected $23.2 million in expenses related to PB’s branch optimization initiative. Additionally, during the quarter the Corporation reclassified $10.0 million of the provision expense for unfunded loan commitments to the provision for credit losses caption. Excluding these two items, the net increase would have been $1.7 million. The increase in operating expenses was driven primarily by:

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Higher personnel cost by $6.3 million due to $2.1 million in severance expense related to PB’s branch initiative, higher pension and postretirement expense by $1.8 million related mainly to higher retirement savings plan expense due to an additional by-weekly payroll, and seasonal compensation in BPPR and higher incentive compensation accrual of $2.5 million;

•

higher net occupancy expense by $16.9 million due to $19.0 million in costs related to the termination of real property leases associated with PB’s New York branch optimization initiative, including the impairment of the right-of-use assets;

•

higher professional fees by $7.6 million mainly due to higher advisory expenses by $5.0 million related to corporate initiatives and higher processing and technology services by $1.6 million; and

•

higher business promotion expenses by $1.8 million due to higher seasonal advertising expense by $2.2 million.

Partially offset by:

•

Lower other real estate owned expenses by $2.4 million due to higher gain on sale of foreclosed mortgage properties; and

•

lower other operating expenses by $15.6 million mainly due to the reclassification of $10.0 million in provision for unfunded commitments from the other expenses line to the provision for credit losses caption. Additionally, operational losses were lower by $3.8 million due to lower legal reserves partially offset by $2.1 million in impairment losses on leasehold improvements associated with PB’s New York branch optimization initiative.

Full-time equivalent employees were 8,522 as of December 31, 2020, compared to 8,514 as of September 30, 2020.

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

Income taxes

For the quarter ended December 31, 2020, the Corporation recorded an income tax expense of $43.0 million, compared to $41.2 million for the previous quarter. The increase in income tax expense was mainly attributable to higher income before tax during the fourth quarter of 2020. The effective tax rate (“ETR”) for the fourth quarter of 2020 was of 20%, flat when compared to the previous quarter. The ETR of the Corporation is impacted by the composition and source of its taxable income.

Credit Quality

Overall, the Corporation’s credit quality remained stable during the fourth quarter of 2020. The financial relief granted to eligible borrowers in response to the COVID-19 pandemic, comprised mainly of payment deferrals of up to six months, largely ended during the third quarter of 2020. Management continues to closely follow macroeconomic conditions and although the outlook indicates improvements, the full effects of the pandemic and the pace of the recovery remains uncertain. The improvement over the last few years in the risk profile of the Corporation’s loan portfolios positions Popular to operate successfully under the ongoing challenging environment. We will continue to carefully monitor the exposure of the portfolios to the COVID-19 pandemic related risks, changes in the economic outlook of the regions in which Popular operates and how delinquencies and NCOs evolve.

The following presents credit quality results for the fourth quarter of 2020:

•

At December 31, 2020, total non-performing loans held-in-portfolio increased by $3.4 million from September 30, 2020. BPPR’s NPLs increased by $6.7 million, driven by higher mortgage NPLs by $44.3 million, in part offset by a decrease of $37.9 million in the commercial NPLs. The increase in mortgage NPLs is due to the delinquency progression after the expiration of the payment moratorium. Excluding the increase of $133 million in NPLs related to the adoption of CECL related to purchase credit deteriorated loans, NPLs have decreased by $2.6 million from December 31, 2019, before the impact of the COVID-19 pandemic. Excluding government guaranteed loans, 94% of the COVID-19 residential loans deferrals remain current. The decrease in commercial NPLs was mostly related to impairment charge-offs from previously reserved collateral dependent loans. PB’s NPLs decreased by $3.3 million due to a previously reserved construction loan that was partially charged-off during the quarter. At December 31, 2020, the ratio of NPLs to total loans held-in-portfolio remained flat at 2.5% when compared to the third quarter of 2020.

•

Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $1.7 million quarter-over-quarter. In BPPR, total inflows increased by $18.6 million driven by a mortgage inflow increase of $48.9 million, due to delinquency progression at the expiration of the moratorium period. The NPL inflows at PB decreased by $16.9 million mostly due to lower commercial inflows by $12.4 million.

•

NCOs increased by $25.2 million from the third quarter of 2020. BPPR ‘s NCOs increased by $27.4 million, primarily driven by higher commercial NCOs by $19.1 million, mostly related to previously reserved commercial loans. Consumer and mortgage loan NCOs increased by $4.8 million and $2.6 million, respectively, during the fourth quarter of 2020. This quarter, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.58%, compared to 0.24% in the third quarter of 2020. Refer to Table M for further information on net charge-offs and related ratios.

•

At December 31, 2020, the allowance for credit losses (“ACL”) reflected a decrease of $29.6 million from the third quarter of 2020 to $896.3 million. The ACL incorporates an updated economic outlook based on Moody’s Analytics forecasts for the United States and Puerto Rico. The updated economic outlook is more favorable than previous forecasts. This improvement prompted decreases in reserve levels that were partially offset with qualitative reserves aimed at addressing specific risks. Higher net charge-offs during the quarter also contributed to the reduction in ACL. The allowance for the BPPR and PB

segments each decreased by $14.8 million, mostly concentrated in the consumer portfolios influenced by the improvements in the macroeconomic scenarios and lower volumes. The ratio of the allowance for credit losses to loans held-in-portfolio was 3.05% in the fourth quarter of 2020, compared to 3.15% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 121.5%, compared to 126.1% 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 Moody’s Analytics’ S1 (optimistic), Baseline, and S3 (pessimistic) scenarios. Among the three scenarios used to estimate the ACL, the Baseline is assigned the highest probability, followed by the S3 scenario given the uncertainties in the economic outlook and downside risk. The current baseline scenario shows improvement in both 2021 GDP growth and unemployment when compared to previous estimates. The 2021 forecasted GDP growth is now 4.1% for U.S. and mid 2% for PR, with higher growth in 2022. This compares favorably with the previous 2021 forecast of 3.5% for U.S. and 2.1% for PR. The US and PR forecasted unemployment rate average for 2021 is now closer to 7% and 8%, respectively. This is an improvement over the previous estimates of 8.4% for the U.S. and 11.3% for PR.

•

The provision for credit losses for the loans portfolios for the fourth quarter of 2020 decreased by $8.7 million from the prior quarter, mostly due to the improvements in the macroeconomic scenarios. The provision for the BPPR segment increased by $17.1 million, due to higher NCOs during the quarter, while the provision for the PB segment decreased by $25.7 million. The provision to net charge-offs ratio was 25.6% in the fourth quarter of 2020, compared to 115.4% in the previous quarter.

•

During the quarter the Corporation reclassified $10.0 million of the expense for unfunded loan commitments from other operating expenses to the provision for credit loss caption. During the fourth quarter of 2020, we also recognized an additional expense of $2.6 million related to the unfunded loan commitments reserve, compared to $6.6 million during the previous quarter. Additionally, during the fourth quarter of 2020 we recorded a reduction to the reserve for credit losses in our investment portfolio of $2.2 million, compared to $0.3 million in the third quarter of 2020. 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-20			30-Sep-20			31-Dec-19
Total non-performing loans held-in-portfolio	$	737,774		$	734,368		$	527,841
Non-performing loans held-for-sale		2,738			4,070			—
Other real estate owned (“OREO”)		83,146			100,592			122,072

Total non-performing assets	$	823,658		$	839,030		$	649,913

Net charge-offs for the quarter	$	42,078		$	16,859		$	81,881

Ratios:
Loans held-in-portfolio	$	29,385,196		$	29,392,510		$	27,406,873
Non-performing loans held-in-portfolio to loans held-in-portfolio		2.51	%		2.50	%		1.93	%
Allowance for credit losses to loans held-in-portfolio		3.05			3.15			1.74
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		121.48			126.07			90.50

Refer to Table K for additional information.

Provision for Credit Losses - Loan Portfolios


(Unaudited)	Quarters ended							Years ended
(In thousands)	31-Dec-20			30-Sep-20		31-Dec-19		31-Dec-20		31-Dec-19
Provision for credit losses - loan portfolios:
BPPR	$	24,756		$	7,682	$	40,843	$	205,865	$	135,751
Popular U.S.		(13,971	)		11,770		6,381		76,471		30,028

Total provision for credit losses - loan portfolios	$	10,785		$	19,452	$	47,224	$	282,336	$	165,779

Credit Quality by Segment

(Unaudited)


(In thousands)	Quarters ended
BPPR	31-Dec-20			30-Sep-20			31-Dec-19
Provision for credit losses - loan portfolios	$	24,756		$	7,682		$	40,843
Net charge-offs		41,217			13,769			58,962
Total non-performing loans held-in-portfolio		700,377			693,676			499,200
Allowance / loans held-in-portfolio		3.43	%		3.48	%		2.14	%



	Quarters ended
Popular U.S.	31-Dec-20			30-Sep-20			31-Dec-19
Provision for credit losses - loan portfolios	$	(13,971	)	$	11,770		$	6,381
Net charge-offs		861			3,090			22,919
Total non-performing loans held-in-portfolio		37,397			40,692			28,641
Allowance / loans held-in-portfolio		2.00	%		2.22	%		0.62	%

Financial Condition Highlights


(Unaudited)
(In thousands)	31-Dec-20		30-Sep-20		31-Dec-19
Cash and money market investments	$	12,131,945	$	12,425,126	$	3,650,597
Investment securities		21,864,184		21,478,048		17,946,343
Loans		29,385,196		29,392,510		27,406,873
Total assets		65,926,000		65,910,369		52,115,324
Deposits		56,866,340		56,021,983		43,758,606
Borrowings		1,346,284		1,407,424		1,294,986
Total liabilities		59,897,313		59,998,284		46,098,545
Stockholders’ equity		6,028,687		5,912,085		6,016,779

Total assets increased by $15.6 million from the third quarter of 2020, driven by:

•

an increase of $383.3 million in debt securities available-for-sale mainly due to purchases of U.S. agency mortgage-backed securities, partially offset by maturities and paydowns of U.S. Treasury securities;

partially offset by:

•

a decrease of $293.2 million in cash and money market investments, mainly due to purchases of debt-securities available-for-sale; and

•

a decrease of $79.7 million in other assets.

Total liabilities decreased by $101.0 million from the third quarter of 2020, mainly due to:

•

a decrease of $884.2 million in other liabilities mainly due to a decrease of $764.2 million in unsettled purchases of debt securities and a reduction in the liability for GNMA loans sold with a repurchase option of $104.2 million; and

•

a decrease in other short-term borrowings by $100.0 million due to maturities of FHLB advances at PB;

partially offset by:

•

an increase of $844.4 million in deposits, of which $494 million are related to Puerto Rico public sector deposits and $534 million are related to retail and commercial demand and savings accounts at BPPR.

Stockholders’ equity increased by approximately $116.6 million from the third quarter of 2020, principally due to net income for the quarter of $176.3 million, partially offset by declared dividends of $33.7 million on common stock, $0.4 million in dividends on preferred stock and lower unrealized gains on debt securities available-for-sale by $22.9 million.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.26%, $71.30 and $63.07, respectively, at December 31, 2020, compared to 15.93%, $69.94 and $61.69 at September 30, 2020. 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, 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, 2019, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020, and September 30, 2020, and in our Annual Report on Form 10-K for the year ended December 31, 2020 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 28, 2021 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 1-866-235-1201 or 1-412-902-4127. There is no charge to access the call.

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 Sunday, February 28, 2021. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10150838.

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 2020 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 2020 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)


	Quarters ended									Years ended
	31-Dec-20			30-Sep-20			31-Dec-19			31-Dec-20			31-Dec-19
Basic EPS	$	2.10		$	2.01		$	1.72		$	5.88		$	6.89
Diluted EPS	$	2.10		$	2.00		$	1.72		$	5.87		$	6.88
Average common shares outstanding		83,841,343			83,809,272			96,183,126			85,882,371			96,848,835
Average common shares outstanding - assuming dilution		83,940,412			83,836,151			96,330,785			85,975,259			96,997,800
Common shares outstanding at end of period		84,244,235			84,219,464			95,589,629			84,244,235			95,589,629
Market value per common share	$	56.32		$	36.27		$	58.75		$	56.32		$	58.75
Market capitalization - (In millions)	$	4,745		$	3,055		$	5,616		$	4,745		$	5,616
Return on average assets		1.08	%		1.06	%		1.27	%		0.85	%		1.33	%
Return on average common equity		12.68	%		12.46	%		11.27	%		9.36	%		11.78	%
Net interest margin (non-taxable equivalent basis)		3.04	%		3.06	%		3.83	%		3.29	%		4.03	%
Net interest margin (taxable equivalent basis) -non-GAAP		3.35	%		3.37	%		4.20	%		3.62	%		4.43	%
Common equity per share	$	71.30		$	69.94		$	62.42		$	71.30		$	62.42
Tangible common book value per common share (non-GAAP) [1]	$	63.07		$	61.69		$	55.10		$	63.07		$	55.10
Tangible common equity to tangible assets (non-GAAP) [1]		8.14	%		7.97	%		10.24	%		8.14	%		10.24	%
Return on average tangible common equity [1]		14.50	%		14.32	%		12.79	%		10.75	%		13.43	%
Tier 1 capital		16.33	%		16.01	%		17.76	%		16.33	%		17.76	%
Total capital		18.81	%		18.49	%		20.31	%		18.81	%		20.31	%
Tier 1 leverage		7.80	%		7.80	%		10.03	%		7.80	%		10.03	%
Common Equity Tier 1 capital		16.26	%		15.93	%		17.76	%		16.26	%		17.76	%

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

POPULAR, INC.

Financial Supplement to Fourth Quarter 2020 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)


	Quarters ended						Variance			Quarter ended		Variance			Years ended
							Q4 2020					Q4 2020
(In thousands, except per share information)	31-Dec-20			30-Sep-20			vs. Q3 2020			31-Dec-19		vs. Q4 2019			31-Dec-20			31-Dec-19
Interest income:
Loans	$	430,988		$	431,286		$	(298	)	$	447,736	$	(16,748	)	$	1,742,390		$	1,802,968
Money market investments		2,933			2,773			160			18,950		(16,017	)		19,721			89,823
Investment securities		85,502			79,142			6,360			93,183		(7,681	)		329,440			368,002

Total interest income		519,423			513,201			6,222			559,869		(40,446	)		2,091,551			2,260,793

Interest expense:
Deposits		33,420			37,554			(4,134	)		76,823		(43,403	)		175,855			304,858
Short-term borrowings		348			416			(68	)		1,272		(924	)		2,457			6,100
Long-term debt		14,039			14,210			(171	)		14,350		(311	)		56,626			58,141

Total interest expense		47,807			52,180			(4,373	)		92,445		(44,638	)		234,938			369,099

Net interest income		471,616			461,021			10,595			467,424		4,192			1,856,613			1,891,694
Provision for credit losses		21,218			19,138			2,080			47,224		(26,006	)		292,536			165,779

Net interest income after provision for credit losses		450,398			441,883			8,515			420,200		30,198			1,564,077			1,725,915

Service charges on deposit accounts		39,152			36,849			2,303			41,656		(2,504	)		147,823			160,933
Other service fees		71,156			69,879			1,277			75,559		(4,403	)		257,892			285,206
Mortgage banking activities		9,730			(9,526	)		19,256			13,448		(3,718	)		10,401			32,093
Net gain (loss) on sale of debt securities		—			41			(41	)		—		—			41			(20	)
Net gain, including impairment, on equity securities		1,410			5,150			(3,740	)		332		1,078			6,279			2,506
Net profit on trading account debt securities		440			20			420			17		423			1,033			994
Net gain (loss) on sale of loans, including valuation adjustments on loans held-for-sale		253			(2,198	)		2,451			—		253			1,234			—
Adjustments (expense) to indemnity reserves on loans sold		2,160			4,183			(2,023	)		1,321		839			390			(343	)
Other operating income		20,546			24,369			(3,823	)		20,082		464			87,219			88,514

Total non-interest income		144,847			128,767			16,080			152,415		(7,568	)		512,312			569,883

Operating expenses:
Personnel costs
Salaries		92,063			91,891			172			91,161		902			370,179			351,788
Commissions, incentives and other bonuses		19,399			17,849			1,550			27,007		(7,608	)		78,582			97,764
Pension, postretirement and medical insurance		12,454			10,639			1,815			11,281		1,173			44,123			41,804
Other personnel costs, including payroll taxes		18,351			15,562			2,789			28,878		(10,527	)		71,321			99,269

Total personnel costs		142,267			135,941			6,326			158,327		(16,060	)		564,205			590,625
Net occupancy expenses		42,793			25,907			16,886			24,908		17,885			119,345			96,339
Equipment expenses		22,395			24,088			(1,693	)		21,591		804			88,932			84,215
Other taxes		13,532			13,918			(386	)		13,386		146			54,454			51,653
Professional fees
Collections, appraisals and other credit related fees		2,948			2,862			86			3,704		(756	)		12,588			16,300
Programming, processing and other technology services		66,483			64,876			1,607			63,029		3,454			253,565			247,332
Legal fees, excluding collections		2,734			2,707			27			2,527		207			10,611			12,877
Other professional fees		31,865			26,029			5,836			33,876		(2,011	)		117,358			107,902

Total professional fees		104,030			96,474			7,556			103,136		894			394,122			384,411
Communications		6,274			5,694			580			5,765		509			23,496			23,450
Business promotion		16,466			14,664			1,802			23,214		(6,748	)		57,608			75,372
FDIC deposit insurance		6,880			6,568			312			5,172		1,708			23,868			18,179
Other real estate owned (OREO) (income) expenses		(4,000	)		(1,615	)		(2,385	)		569		(4,569	)		(3,480	)		4,298
Credit and debit card processing, volume, interchange and other expenses		13,209			11,744			1,465			10,486		2,723			45,108			38,059
Other operating expenses


Operational losses		4,992		8,837		(3,845	)		2,916		2,076			26,331		21,414
All other		6,034		17,770		(11,736	)		18,814		(12,780	)		57,443		80,097

Total other operating expenses		11,026		26,607		(15,581	)		21,730		(10,704	)		83,774		101,511
Amortization of intangibles		1,052		1,076		(24	)		2,288		(1,236	)		6,397		9,370

Total operating expenses		375,924		361,066		14,858			390,572		(14,648	)		1,457,829		1,477,482

Income before income tax		219,321		209,584		9,737			182,043		37,278			618,560		818,316
Income tax expense		43,045		41,168		1,877			15,258		27,787			111,938		147,181

Net income	$	176,276	$	168,416	$	7,860		$	166,785	$	9,491		$	506,622	$	671,135

Net income applicable to common stock	$	175,923	$	168,064	$	7,859		$	165,854	$	10,069		$	504,864	$	667,412

Net income per common share - basic	$	2.10	$	2.01	$	0.09		$	1.72	$	0.38		$	5.88	$	6.89

Net income per common share - diluted	$	2.10	$	2.00	$	0.10		$	1.72	$	0.38		$	5.87	$	6.88

Dividends Declared per Common Share	$	0.40	$	0.40	$	—		$	0.30	$	0.10		$	1.60	$	1.20

Popular, Inc.

Financial Supplement to Fourth Quarter 2020 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)


(In thousands)	31-Dec-20			30-Sep-20			31-Dec-19			Variance Q4 2020 vs. Q3 2020
Assets:
Cash and due from banks	$	491,065		$	565,202		$	388,311		$	(74,137	)
Money market investments		11,640,880			11,859,924			3,262,286			(219,044	)
Trading account debt securities, at fair value		36,674			33,053			40,321			3,621
Debt securities available-for-sale, at fair value		21,561,152			21,177,839			17,648,473			383,313
Debt securities held-to-maturity, at amortized cost		92,621			93,163			97,662			(542	)
Less: Allowance for credit losses		10,261			12,421			—			(2,160	)

Total debt securities held-to-maturity, net		82,360			80,742			97,662			1,618

Equity securities		173,737			173,993			159,887			(256	)
Loans held-for-sale, at lower of cost or fair value		99,455			102,760			59,203			(3,305	)
Loans held-in-portfolio		29,588,430			29,586,348			27,587,856			2,082
Less: Unearned income		203,234			193,838			180,983			9,396
Allowance for credit losses		896,250			925,850			477,708			(29,600	)

Total loans held-in-portfolio, net		28,488,946			28,466,660			26,929,165			22,286

Premises and equipment, net		510,241			510,473			556,650			(232	)
Other real estate		83,146			100,592			122,072			(17,446	)
Accrued income receivable		209,320			204,233			180,871			5,087
Mortgage servicing rights, at fair value		118,395			123,552			150,906			(5,157	)
Other assets		1,737,041			1,816,706			1,819,615			(79,665	)
Goodwill		671,122			671,122			671,122			—
Other intangible assets		22,466			23,518			28,780			(1,052	)

Total assets	$	65,926,000		$	65,910,369		$	52,115,324		$	15,631

Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing	$	13,128,699		$	13,546,432		$	9,160,173		$	(417,733	)
Interest bearing		43,737,641			42,475,551			34,598,433			1,262,090

Total deposits		56,866,340			56,021,983			43,758,606			844,357

Assets sold under agreements to repurchase		121,303			106,028			193,378			15,275
Other short-term borrowings		—			100,000			—			(100,000	)
Notes payable		1,224,981			1,201,396			1,101,608			23,585
Other liabilities		1,684,689			2,568,877			1,044,953			(884,188	)

Total liabilities		59,897,313			59,998,284			46,098,545			(100,971	)

Stockholders’ equity:
Preferred stock		22,143			22,143			50,160			—
Common stock		1,045			1,045			1,044			—
Surplus		4,571,534			4,521,689			4,447,412			49,845
Retained earnings		2,260,928			2,168,153			2,147,915			92,775
Treasury stock		(1,016,954	)		(1,016,361	)		(459,814	)		(593	)
Accumulated other comprehensive income (loss), net of tax		189,991			215,416			(169,938	)		(25,425	)

Total stockholders’ equity		6,028,687			5,912,085			6,016,779			116,602

Total liabilities and stockholders’ equity	$	65,926,000		$	65,910,369		$	52,115,324		$	15,631

Popular, Inc.

Financial Supplement to Fourth Quarter 2020 Earnings Release

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

(Unaudited)


	Quarters ended																								Variance
	31-Dec-20								30-Sep-20								31-Dec-19								Q4 2020 vs. Q3 2020									Q4 2020 vs. Q4 2019
($ 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	$	32,554		$	127.2		1.56	%	$	31,337		$	117.5		1.49	%	$	21,465		$	146.3		2.71	%	$	1,217		$	9.7			0.07	%	$	11,089		($	19.1	)		(1.15	)%

Loans:
Commercial		13,610			170.2		4.98			13,669			170.1		4.95			12,276			181.3		5.86			(59	)		0.1			0.03			1,334			(11.1	)		(0.88	)
Construction		928			12.8		5.48			930			13.3		5.67			781			12.3		6.27			(2	)		(0.5	)		(0.19	)		147			0.5			(0.79	)
Mortgage		7,856			98.6		5.02			7,094			95.8		5.40			7,109			95.2		5.36			762			2.8			(0.38	)		747			3.4			(0.34	)
Consumer		2,606			73.1		11.16			2,722			76.7		11.21			2,942			86.2		11.62			(116	)		(3.6	)		(0.05	)		(336	)		(13.1	)		(0.46	)
Auto		3,130			68.8		8.74			3,006			68.6		9.08			2,935			68.7		9.28			124			0.2			(0.34	)		195			0.1			(0.54	)
Lease financing		1,170			17.8		6.07			1,122			17.1		6.08			1,038			15.7		6.06			48			0.7			(0.01	)		132			2.1			0.01

Total loans		29,300			441.3		6.00			28,543			441.6		6.16			27,081			459.4		6.75			757			(0.3	)		(0.16	)		2,219			(18.1	)		(0.75	)

Total interest earning assets	$	61,854		$	568.5		3.66	%	$	59,880		$	559.1		3.72	%	$	48,546		$	605.7		4.96	%	$	1,974		$	9.4			(0.06	)%	$	13,308		$	(37.2	)		(1.30	)%

Allowance for credit losses - loan portfolio		(930	)							(923	)							(515	)							(7	)								(415	)
Allowance for credit losses - investment securities		(12	)							(13	)							—								1									(12	)
Other non-interest earning assets		4,054								4,176								3,943								(122	)								111

Total average assets	$	64,966							$	63,120							$	51,974							$	1,846								$	12,992

Liabilities and Stockholders’ Equity:
Interest bearing deposits:
NOW and money market	$	21,829		$	8.7		0.16	%	$	21,225		$	9.1		0.17	%	$	16,312		$	36.0		0.88	%	$	604		$	(0.4	)		(0.01	)%	$	5,517		$	(27.3	)		(0.72	)%
Savings		13,890			7.5		0.22			13,103			8.3		0.25			10,830			13.3		0.49			787			(0.8	)		(0.03	)		3,060			(5.8	)		(0.27	)
Time deposits		7,656			17.2		0.89			7,810			20.2		1.03			7,749			27.5		1.41			(154	)		(3.0	)		(0.14	)		(93	)		(10.3	)		(0.52	)

Total interest-bearing deposits		43,375			33.4		0.31			42,138			37.6		0.35			34,891			76.8		0.87			1,237			(4.2	)		(0.04	)		8,484			(43.4	)		(0.56	)
Borrowings		1,354			14.4		4.26			1,358			14.6		4.31			1,345			15.6		4.65			(4	)		(0.2	)		(0.05	)		9			(1.2	)		(0.39	)

Total interest-bearing liabilities		44,729			47.8		0.43			43,496			52.2		0.48			36,236			92.4		1.01			1,233			(4.4	)		(0.05	)		8,493			(44.6	)		(0.58	)

Net interest spread							3.23	%							3.24	%							3.95	%								(0.01	)%								(0.72	)%

Non-interest bearing deposits		13,303								12,806								8,894								497									4,409
Other liabilities		1,393								1,435								957								(42	)								436
Stockholders’ equity		5,541								5,383								5,887								158									(346	)

Total average liabilities and stockholders’ equity	$	64,966							$	63,120							$	51,974							$	1,846								$	12,992

Net interest income / margin on a taxable equivalent basis (Non-GAAP)				$	520.7		3.35	%				$	506.9		3.37	%				$	513.3		4.20	%				$	13.8			(0.02	)%				$	7.4			(0.85	)%
Taxable equivalent adjustment					49.1								45.8								45.9								3.3									3.2

Net interest income / margin non-taxable equivalent basis (GAAP)				$	471.6		3.04	%				$	461.0		3.06	%				$	467.4		3.83	%				$	10.6			(0.02	)%				$	4.2			(0.79	)%

Popular, Inc.

Financial Supplement to Fourth Quarter 2020 Earnings Release

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

(Unaudited)


	Years ended
	31-Dec-20								31-Dec-19								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	$	28,020		$	491.9		1.76	%	$	20,139		$	596.7		2.96	%	$	7,881		($	104.8	)		(1.20	)%

Loans not covered under loss-sharing agreements with the FDIC:
Commercial		13,245			692.4		5.23			12,171			743.7		6.11			1,074			(51.3	)		(0.88	)
Construction		913			52.4		5.74			801			52.8		6.59			112			(0.4	)		(0.85	)
Mortgage		7,255			379.8		5.23			7,121			381.5		5.36			134			(1.7	)		(0.13	)
Consumer		2,839			322.0		11.34			2,885			340.8		11.81			(46	)		(18.8	)		(0.47	)
Auto		3,021			271.2		8.97			2,839			272.2		9.59			182			(1.0	)		(0.62	)
Lease financing		1,112			67.2		6.05			989			59.9		6.06			123			7.3			(0.01	)

Total loans		28,385			1,785.0		6.29			26,806			1,850.9		6.90			1,579			(65.9	)		(0.61	)

Total interest earning assets	$	56,405		$	2,276.9		4.04	%	$	46,945		$	2,447.6		5.21	%	$	9,460		($	170.7	)		(1.17	)%

Allowance for credit losses - loan portfolio		(897	)							(544	)							(353	)
Allowance for credit losses - investment securities		(13	)							—								(13	)
Other non-interest earning assets		4,089								3,940								149

Total average assets	$	59,584							$	50,341							$	9,243

Liabilities and Stockholders’ Equity:
Interest bearing deposits:
NOW and money market	$	19,678		$	54.7		0.28	%	$	15,326		$	146.7		0.96	%	$	4,352		($	92.0	)		(0.68	)%
Savings		12,399			37.8		0.30			10,249			45.5		0.44			2,150			(7.7	)		(0.14	)
Time deposits		7,971			83.4		1.05			7,770			112.7		1.45			201			(29.3	)		(0.40	)

Total interest-bearing deposits		40,048			175.9		0.44			33,345			304.9		0.91			6,703			(129.0	)		(0.47	)
Borrowings		1,344			59.1		4.40			1,425			64.2		4.51			(81	)		(5.1	)		(0.11	)

Total interest-bearing liabilities		41,392			235.0		0.57			34,770			369.1		1.06			6,622			(134.1	)		(0.49	)

Net interest spread							3.47	%							4.15	%								(0.68	)%

Non-interest bearing deposits		11,538								8,873								2,665
Other liabilities		1,234								984								250
Stockholders’ equity		5,420								5,714								(294	)

Total average liabilities and stockholders’ equity	$	59,584							$	50,341							$	9,243

Net interest income /margin on a taxable equivalent basis (Non-GAAP)				$	2,041.9		3.62	%				$	2,078.5		4.43	%				($	36.6	)		(0.81	)%
Taxable equivalent adjustment					185.4								186.8								(1.4	)

Net interest income / margin non-taxable equivalent basis (GAAP)				$	1,856.6		3.29	%				$	1,891.7		4.03	%				($	35.1	)		(0.74	)%

Popular, Inc.

Financial Supplement to Fourth Quarter 2020 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-20			30-Sep-20			31-Dec-19			Q4 2020 vs.Q3 2020			Q4 2020 vs.Q4 2019			31-Dec-20			31-Dec-19			2020 vs. 2019
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees	$	10,242		$	12,966		$	11,552		$	(2,724	)	$	(1,310	)	$	43,234		$	46,952		$	(3,718	)
Mortgage servicing rights fair value adjustments		(8,695	)		(20,491	)		(1,577	)		11,796			(7,118	)		(42,055	)		(27,430	)		(14,625	)

Total mortgage servicing fees, net of fair value adjustments		1,547			(7,525	)		9,975			9,072			(8,428	)		1,179			19,522			(18,343	)

Net gain on sale of loans, including valuation on loans held-for-sale		10,826			10,916			4,164			(90	)		6,662			31,215			18,817			12,398

Trading account (loss) profit:
Unrealized gains (losses) on outstanding derivative positions		4			(4	)		—			8			4			—			—			—
Realized losses on closed derivative positions		(2,195	)		(1,958	)		(691	)		(237	)		(1,504	)		(10,586	)		(6,246	)		(4,340	)

Total trading account loss		(2,191	)		(1,962	)		(691	)		(229	)		(1,500	)		(10,586	)		(6,246	)		(4,340	)

Losses on repurchased loans, including interest advances^[1]		(452	)		(10,955	)		—			10,503			(452	)		(11,407	)		—			(11,407	)

Total mortgage banking activities	$	9,730		$	(9,526	)	$	13,448		$	19,256		$	(3,718	)	$	10,401		$	32,093		$	(21,692	)

[1]

The Corporation, from time to time, repurchases delinquent loans from its GNMA servicing portfolio, in compliance with Guarantor guidelines, and may incur in losses related to previously advanced interest on delinquent loans. During the quarter ended September 30, 2020 the Corporation repurchased $687.9 million of GNMA loans and recorded a loss of $10.5 million for previously advanced interest on delinquent loans. Effective for the quarter ended September 30, 2020, the Corporation has determined to present these losses as part of its Mortgage Banking Activities, which were previously presented within the indemnity reserves on loans sold component of non-interest income.

Other Service Fees


	Quarters ended						Variance						Years ended				Variance
(In thousands)	31-Dec-20		30-Sep-20		31-Dec-19		Q4 2020 vs.Q3 2020			Q4 2020 vs.Q4 2019			31-Dec-20		31-Dec-19		2020 vs. 2019
Other service fees:
Debit card fees	$	11,210	$	11,123	$	12,219	$	87		$	(1,009	)	$	39,652	$	47,142	$	(7,490	)
Insurance fees		13,803		13,941		17,574		(138	)		(3,771	)		52,014		62,226		(10,212	)
Credit card fees		27,986		27,077		26,155		909			1,831			96,011		98,860		(2,849	)
Sale and administration of investment products		5,488		5,094		6,367		394			(879	)		21,755		23,072		(1,317	)
Trust fees		5,499		4,886		5,263		613			236			21,191		20,694		497
Other fees		7,170		7,758		7,981		(588	)		(811	)		27,269		33,212		(5,943	)

Total other service fees	$	71,156	$	69,879	$	75,559	$	1,277		$	(4,403	)	$	257,892	$	285,206	$	(27,314	)

Popular, Inc.

Financial Supplement to Fourth Quarter 2020 Earnings Release

Table G - Loans and Deposits

(Unaudited)

Loans - Ending Balances


							Variance
(In thousands)	31-Dec-20		30-Sep-20		31-Dec-19		Q4 2020 vs.Q3 2020			Q4 2020 vs.Q4 2019
Loans held-in-portfolio:
Commercial	$	13,606,280	$	13,611,374	$	12,312,751	$	(5,094	)	$	1,293,529
Construction		918,765		936,274		831,092		(17,509	)		87,673
Legacy [1]		15,473		16,168		22,105		(695	)		(6,632	)
Lease financing		1,197,661		1,153,108		1,059,507		44,553			138,154
Mortgage		7,890,680		7,924,441		7,183,532		(33,761	)		707,148
Auto		3,132,228		3,045,453		2,917,522		86,775			214,706
Consumer		2,624,109		2,705,692		3,080,364		(81,583	)		(456,255	)

Total loans held-in-portfolio	$	29,385,196	$	29,392,510	$	27,406,873	$	(7,314	)	$	1,978,323

Loans held-for-sale:
Commercial	$	2,738	$	4,070	$	—	$	(1,332	)	$	2,738
Mortgage		96,717		98,690		59,203		(1,973	)		37,514

Total loans held-for-sale	$	99,455	$	102,760	$	59,203	$	(3,305	)	$	40,252

Total loans	$	29,484,651	$	29,495,270	$	27,466,076	$	(10,619	)	$	2,018,575

[1]	The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.

Deposits - Ending Balances


							Variance
(In thousands)	31-Dec-20		30-Sep-20		31-Dec-19		Q4 2020 vs. Q3 2020			Q4 2020 vs.Q4 2019
Demand deposits [1]	$	22,532,729	$	22,929,040	$	16,566,145	$	(396,311	)	$	5,966,584
Savings, NOW and money market deposits (non-brokered)		26,390,565		24,696,244		19,169,899		1,694,321			7,220,666
Savings, NOW and money market deposits (brokered)		635,198		551,770		347,765		83,428			287,433
Time deposits (non-brokered)		7,130,749		7,664,361		7,546,621		(533,612	)		(415,872	)
Time deposits (brokered CDs)		177,099		180,568		128,176		(3,469	)		48,923

Total deposits	$	56,866,340	$	56,021,983	$	43,758,606	$	844,357		$	13,107,734

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

Popular, Inc.

Financial Supplement to Fourth Quarter 2020 Earnings Release

Table H - Loan Delinquency - Puerto Rico Operations

(Unaudited)


31-Dec-20
Puerto Rico
	Past due												Past due 90 days or more
(In thousands)	30-59 days		60-89 days		90 days or more		Total past due		Current		Loans HIP		Non-accrual loans		Accruing loans
Commercial multi-family	$	796	$	—	$	505	$	1,301	$	150,979	$	152,280	$	505	$	—
Commercial real estate:
Non-owner occupied		2,189		3,503		77,137		82,829		1,924,504		2,007,333		77,137		—
Owner occupied		8,270		1,218		92,001		101,489		1,497,406		1,598,895		92,001		—
Commercial and industrial		10,223		775		35,012		46,010		4,183,098		4,229,108		34,449		563
Construction		—		—		21,497		21,497		135,609		157,106		21,497		—
Mortgage		195,602		87,726		1,428,824		1,712,152		5,057,991		6,770,143		414,343		1,014,481
Leasing		9,141		1,427		3,441		14,009		1,183,652		1,197,661		3,441		—
Consumer:
Credit cards		6,550		4,619		12,798		23,967		895,968		919,935		—		12,798
Home equity lines of credit		184		—		48		232		3,947		4,179		—		48
Personal		11,255		8,097		26,387		45,739		1,232,008		1,277,747		26,387		—
Auto		53,186		12,696		15,736		81,618		3,050,610		3,132,228		15,736		—
Other		304		483		15,052		15,839		110,826		126,665		14,881		171

Total	$	297,700	$	120,544	$	1,728,438	$	2,146,682	$	19,426,598	$	21,573,280	$	700,377	$	1,028,061


30-Sep-20
Puerto Rico
	Past due												Past due 90 days or more
(In thousands)	30-59 days		60-89 days		90 days or more		Total past due		Current		Loans HIP		Non-accrual loans		Accruing loans
Commercial multi-family	$	3,480	$	129	$	1,400	$	5,009	$	139,169	$	144,178	$	1,400	$	—
Commercial real estate:
Non-owner occupied		19,523		2,014		98,811		120,348		1,950,794		2,071,142		98,811		—
Owner occupied		10,187		4,223		97,453		111,863		1,458,412		1,570,275		97,453		—
Commercial and industrial		6,809		6,376		45,013		58,198		4,233,554		4,291,752		44,320		693
Construction		4,895		—		21,514		26,409		169,656		196,065		21,514		—
Mortgage		336,824		59,386		1,567,504		1,963,714		4,863,266		6,826,980		370,060		1,197,444
Leasing		8,254		2,450		3,217		13,921		1,139,187		1,153,108		3,217		—
Consumer:
Credit cards		6,125		6,305		14,505		26,935		904,604		931,539		—		14,505
Home equity lines of credit		181		—		58		239		4,075		4,314		—		58
Personal		13,166		7,569		29,343		50,078		1,255,707		1,305,785		29,343		—
Auto		39,887		10,377		13,454		63,718		2,981,735		3,045,453		13,454		—
Other		190		1,224		14,348		15,762		108,290		124,052		14,104		244

Total	$	449,521	$	100,053	$	1,906,620	$	2,456,194	$	19,208,449	$	21,664,643	$	693,676	$	1,212,944


Variance
	Past due																		Past due 90 days or more
(In thousands)	30-59 days			60-89 days			90 days or more			Total past due			Current			Loans HIP			Non-accrual loans			Accruing loans
Commercial multi-family	$	(2,684	)	$	(129	)	$	(895	)	$	(3,708	)	$	11,810		$	8,102		$	(895	)	$	—
Commercial real estate:
Non-owner occupied		(17,334	)		1,489			(21,674	)		(37,519	)		(26,290	)		(63,809	)		(21,674	)		—
Owner occupied		(1,917	)		(3,005	)		(5,452	)		(10,374	)		38,994			28,620			(5,452	)		—
Commercial and industrial		3,414			(5,601	)		(10,001	)		(12,188	)		(50,456	)		(62,644	)		(9,871	)		(130	)
Construction		(4,895	)		—			(17	)		(4,912	)		(34,047	)		(38,959	)		(17	)		—
Mortgage		(141,222	)		28,340			(138,680	)		(251,562	)		194,725			(56,837	)		44,283			(182,963	)^[1]
Leasing		887			(1,023	)		224			88			44,465			44,553			224			—
Consumer:
Credit cards		425			(1,686	)		(1,707	)		(2,968	)		(8,636	)		(11,604	)		—			(1,707	)
Home equity lines of credit		3			—			(10	)		(7	)		(128	)		(135	)		—			(10	)
Personal		(1,911	)		528			(2,956	)		(4,339	)		(23,699	)		(28,038	)		(2,956	)		—
Auto		13,299			2,319			2,282			17,900			68,875			86,775			2,282			—
Other		114			(741	)		704			77			2,536			2,613			777			(73	)

Total	$	(151,821	)	$	20,491		$	(178,182	)	$	(309,512	)	$	218,149		$	(91,363	)	$	6,701		$	(184,883	)

^[1] 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. These include $57 million (September 30, 2020- $161 million) in loans rebooked under the GNMA program, in which issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due.

Popular, Inc.

Financial Supplement to Fourth Quarter 2020 Earnings Release

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

(Unaudited)


December 31, 2020
Popular U.S.
	Past due												Past due 90 days or more
(In thousands)	30-59 days		60-89 days		90 days or more		Total past due		Current		Loans HIP		Non-accrual loans		Accruing loans
Commercial multi-family	$	5,273	$	—	$	1,894	$	7,167	$	1,736,544	$	1,743,711	$	1,894	$	—
Commercial real estate:
Non-owner occupied		924		3,640		669		5,233		1,988,577		1,993,810		669		—
Owner occupied		191		650		334		1,175		343,205		344,380		334		—
Commercial and industrial		1,112		65		1,580		2,757		1,534,006		1,536,763		1,580		—
Construction		21,312		—		7,560		28,872		732,787		761,659		7,560		—
Mortgage		33,422		15,464		14,864		63,750		1,056,787		1,120,537		14,864		—
Legacy		5		7		1,511		1,523		13,950		15,473		1,511		—
Consumer:
Credit cards		—		—		3		3		28		31		—		3
Home equity lines of credit		236		342		7,491		8,069		86,502		94,571		7,491		—
Personal		1,486		1,342		1,474		4,302		194,936		199,238		1,474		—
Other		—		—		20		20		1,723		1,743		20		—

Total	$	63,961	$	21,510	$	37,400	$	122,871	$	7,689,045	$	7,811,916	$	37,397	$	3


September 30, 2020
Popular U.S.
	Past due												Past due 90 days or more
(In thousands)	30-59 days		60-89 days		90 days or more		Total past due		Current		Loans HIP		Non-accrual loans		Accruing loans
Commercial multi-family	$	—	$	—	$	1,755	$	1,755	$	1,734,982	$	1,736,737	$	1,755	$	—
Commercial real estate:
Non-owner occupied		—		—		396		396		1,938,617		1,939,013		396		—
Owner occupied		653		—		342		995		360,131		361,126		342		—
Commercial and industrial		552		50		3,901		4,503		1,492,648		1,497,151		3,901		—
Construction		—		—		9,069		9,069		731,140		740,209		9,069		—
Mortgage		2,467		6,433		14,484		23,384		1,074,077		1,097,461		14,484		—
Legacy		41		16		1,360		1,417		14,751		16,168		1,360		—
Consumer:
Credit cards		—		3		3		6		25		31		—		3
Home equity lines of credit		1,257		351		7,586		9,194		95,715		104,909		7,586		—
Personal		1,641		1,597		1,770		5,008		228,754		233,762		1,770		—
Other		22		2		29		53		1,247		1,300		29		—

Total	$	6,633	$	8,452	$	40,695	$	55,780	$	7,672,087	$	7,727,867	$	40,692	$	3



Variance
	Past due																		Past due 90 days or more
(In thousands)	30-59 days			60-89 days			90 days or more			Total past due			Current			Loans HIP			Non-accrual loans			Accruing loans
Commercial multi-family	$	5,273		$	—		$	139		$	5,412		$	1,562		$	6,974		$	139		$	—
Commercial real estate:
Non-owner occupied		924			3,640			273			4,837			49,960			54,797			273			—
Owner occupied		(462	)		650			(8	)		180			(16,926	)		(16,746	)		(8	)		—
Commercial and industrial		560			15			(2,321	)		(1,746	)		41,358			39,612			(2,321	)		—
Construction		21,312			—			(1,509	)		19,803			1,647			21,450			(1,509	)		—
Mortgage		30,955			9,031			380			40,366			(17,290	)		23,076			380			—
Legacy		(36	)		(9	)		151			106			(801	)		(695	)		151			—
Consumer:
Credit cards		—			(3	)		—			(3	)		3			—			—			—
Home equity lines of credit		(1,021	)		(9	)		(95	)		(1,125	)		(9,213	)		(10,338	)		(95	)		—
Personal		(155	)		(255	)		(296	)		(706	)		(33,818	)		(34,524	)		(296	)		—
Other		(22	)		(2	)		(9	)		(33	)		476			443			(9	)		—

Total	$	57,328		$	13,058		$	(3,295	)	$	67,091		$	16,958		$	84,049		$	(3,295	)	$	—

Popular, Inc.

Financial Supplement to Fourth Quarter 2020 Earnings Release

Table J - Loan Delinquency - Consolidated

(Unaudited)


					31-Dec-20
					Popular, Inc.
	Past due												Past due 90 days or more
(In thousands)	30-59 days		60-89 days		90 days or more		Total past due		Current		Loans HIP		Non-accrual loans		Accruing loans
Commercial multi-family	$	6,069	$	—	$	2,399	$	8,468	$	1,887,523	$	1,895,991	$	2,399	$	—
Commercial real estate:
Non-owner occupied		3,113		7,143		77,806		88,062		3,913,081		4,001,143		77,806		—
Owner occupied		8,461		1,868		92,335		102,664		1,840,611		1,943,275		92,335		—
Commercial and industrial		11,335		840		36,592		48,767		5,717,104		5,765,871		36,029		563
Construction		21,312		—		29,057		50,369		868,396		918,765		29,057		—
Mortgage		229,024		103,190		1,443,688		1,775,902		6,114,778		7,890,680		429,207		1,014,481
Leasing		9,141		1,427		3,441		14,009		1,183,652		1,197,661		3,441		—
Legacy		5		7		1,511		1,523		13,950		15,473		1,511		—
Consumer:
Credit cards		6,550		4,619		12,801		23,970		895,996		919,966		—		12,801
Home equity lines of credit		420		342		7,539		8,301		90,449		98,750		7,491		48
Personal		12,741		9,439		27,861		50,041		1,426,944		1,476,985		27,861		—
Auto		53,186		12,696		15,736		81,618		3,050,610		3,132,228		15,736		—
Other		304		483		15,072		15,859		112,549		128,408		14,901		171

Total	$	361,661	$	142,054	$	1,765,838	$	2,269,553	$	27,115,643	$	29,385,196	$	737,774	$	1,028,064


					30-Sep-20
					Popular, Inc.
	Past due												Past due 90 days or more
(In thousands)	30-59 days		60-89 days		90 days or more		Total past due		Current		Loans HIP		Non-accrual loans		Accruing loans
Commercial multi-family	$	3,480	$	129	$	3,155	$	6,764	$	1,874,151	$	1,880,915	$	3,155	$	—
Commercial real estate:
Non-owner occupied		19,523		2,014		99,207		120,744		3,889,411		4,010,155		99,207		—
Owner occupied		10,840		4,223		97,795		112,858		1,818,543		1,931,401		97,795		—
Commercial and industrial		7,361		6,426		48,914		62,701		5,726,202		5,788,903		48,221		693
Construction		4,895		—		30,583		35,478		900,796		936,274		30,583		—
Mortgage		339,291		65,819		1,581,988		1,987,098		5,937,343		7,924,441		384,544		1,197,444
Leasing		8,254		2,450		3,217		13,921		1,139,187		1,153,108		3,217		—
Legacy		41		16		1,360		1,417		14,751		16,168		1,360		—
Consumer:
Credit cards		6,125		6,308		14,508		26,941		904,629		931,570		—		14,508
Home equity lines of credit		1,438		351		7,644		9,433		99,790		109,223		7,586		58
Personal		14,807		9,166		31,113		55,086		1,484,461		1,539,547		31,113		—
Auto		39,887		10,377		13,454		63,718		2,981,735		3,045,453		13,454		—
Other		212		1,226		14,377		15,815		109,537		125,352		14,133		244

Total	$	456,154	$	108,505	$	1,947,315	$	2,511,974	$	26,880,536	$	29,392,510	$	734,368	$	1,212,947


				Variance
	Past due																		Past due 90 days or more
(In thousands)	30-59 days			60-89 days			90 days or more			Total past due			Current			Loans HIP			Non-accrual loans			Accruing loans
Commercial multi-family	$	2,589		$	(129	)	$	(756	)	$	1,704		$	13,372		$	15,076		$	(756	)	$	—
Commercial real estate:
Non-owner occupied		(16,410	)		5,129			(21,401	)		(32,682	)		23,670			(9,012	)		(21,401	)		—
Owner occupied		(2,379	)		(2,355	)		(5,460	)		(10,194	)		22,068			11,874			(5,460	)		—
Commercial and industrial		3,974			(5,586	)		(12,322	)		(13,934	)		(9,098	)		(23,032	)		(12,192	)		(130	)
Construction		16,417			—			(1,526	)		14,891			(32,400	)		(17,509	)		(1,526	)		—
Mortgage		(110,267	)		37,371			(138,300	)		(211,196	)		177,435			(33,761	)		44,663			(182,963	)^[1]
Leasing		887			(1,023	)		224			88			44,465			44,553			224			—
Legacy		(36	)		(9	)		151			106			(801	)		(695	)		151			—
Consumer:
Credit cards		425			(1,689	)		(1,707	)		(2,971	)		(8,633	)		(11,604	)		—			(1,707	)
Home equity lines of credit		(1,018	)		(9	)		(105	)		(1,132	)		(9,341	)		(10,473	)		(95	)		(10	)
Personal		(2,066	)		273			(3,252	)		(5,045	)		(57,517	)		(62,562	)		(3,252	)		—
Auto		13,299			2,319			2,282			17,900			68,875			86,775			2,282			—
Other		92			(743	)		695			44			3,012			3,056			768			(73	)

Total	$	(94,493	)	$	33,549		$	(181,477	)	$	(242,421	)	$	235,107		$	(7,314	)	$	3,406		$	(184,883	)

[1]

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. These include $57 million (September 30, 2020- $161 million) in loans rebooked under the GNMA program, in which issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due.

Popular, Inc.

Financial Supplement to Fourth Quarter 2020 Earnings Release

Table K - Non-Performing Assets

(Unaudited)


																			Variance
(Dollars in thousands)	31-Dec-20			As a % of loans HIP by category			30-Sep-20			As a % of loans HIP by category			31-Dec-19			As a % of loans HIP by category			Q4 2020 vs. Q3 2020			Q4 2020 vs. Q4 2019
Non-accrual loans:
Commercial [1]	$	208,569			1.5	%	$	248,378			1.8	%	$	150,760			1.2	%	$	(39,809	)	$	57,809
Construction		29,057			3.2			30,583			3.3			145			—			(1,526	)		28,912
Legacy [2]		1,511			9.8			1,360			8.4			1,999			9.0			151			(488	)
Lease financing		3,441			0.3			3,217			0.3			3,657			0.3			224			(216	)
Mortgage [1]		429,207			5.4			384,544			4.9			294,799			4.1			44,663			134,408
Auto		15,736			0.5			13,454			0.4			31,148			1.1			2,282			(15,412	)
Consumer [1]		50,253			1.9			52,832			2.0			45,333			1.5			(2,579	)		4,920

Total non-performing loans held-in-portfolio		737,774			2.5	%		734,368			2.5	%		527,841			1.9	%		3,406			209,933
Non-performing loans held-for-sale [3]		2,738						4,070						—						(1,332	)		2,738
Other real estate owned (“OREO”)		83,146						100,592						122,072						(17,446	)		(38,926	)


Total non-performing assets	$	823,658					$	839,030					$	649,913					$	(15,372	)	$	173,745

Accruing loans past due 90 days or more [4] [5]	$	1,028,064					$	1,212,947					$	460,133					$	(184,883	)	$	567,931

Ratios:
Non-performing assets to total assets		1.25	%					1.27	%					1.25	%
Non-performing loans held-in-portfolio to loans held-in-portfolio		2.51						2.50						1.93
Allowance for credit losses to loans held-in-portfolio		3.05						3.15						1.74
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		121.48						126.07						90.50

[1]

The increase in non-accrual loans during 2020 includes the initial impact of $278 million related to the adoption of CECL on the portfolio of previously purchased credit deteriorated loans. This included mortgage loans for $133 million, commercial loans for $131 million and $14 million in consumer loans.

[2]	The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.

[3]	There were $3 million in non-performing commercial loans held-for-sale as of December 31, 2020, $4 million for the quarter ended September 30, 2020 and none for the quarter ended December 31, 2019.

[4]

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 $57 million at December 31, 2020 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, 2020 - $161 million; December 31, 2019 - $103 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. Additionally, these balances include $329 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2020 (September 30, 2020 - $318 million; December 31, 2019 - $213 million). Furthermore, the Corporation has approximately $60 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, 2020 - $60 million; December 31, 2019 - $65 million).

[5]

The carrying value of loans accounted for under ASC Subtopic 310-30 that are contractually 90 days or more past due was $153 million at December 31, 2019. This amount is excluded from the above table as the loans’ accretable yield interest recognition is independent from the underlying contractual loan delinquency status.

Popular, Inc.

Financial Supplement to Fourth Quarter 2020 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)

Commercial loans held-in-portfolio:


	Quarter ended									Quarter ended
	31-Dec-20									30-Sep-20
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	241,984		$	6,394		$	248,378		$	253,890		$	7,238		$	261,128
Plus:
New non-performing loans		11,443			467			11,910			20,250			12,877			33,127
Advances on existing non-performing loans		—			33			33			—			—			—
Less:
Non-performing loans transferred to OREO		(63	)		—			(63	)		(39	)		—			(39	)
Non-performing loans charged-off		(19,207	)		(272	)		(19,479	)		(1,000	)		(452	)		(1,452	)
Loans returned to accrual status / loan collections		(30,065	)		(2,145	)		(32,210	)		(31,117	)		(13,269	)		(44,386	)

Ending balance NPLs	$	204,092		$	4,477		$	208,569		$	241,984		$	6,394		$	248,378


Construction loans held-in-portfolio:
	Quarter ended									Quarter ended
	31-Dec-20									30-Sep-20
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	21,514		$	9,069		$	30,583		$	—		$	—		$	—
Plus:
New non-performing loans		—			—			—			21,514			9,069			30,583
Less:
Non-performing loans charged-off		—			(1,509	)		(1,509	)		—			—			—
Loans returned to accrual status / loan collections		(17	)		—			(17	)		—			—			—

Ending balance NPLs	$	21,497		$	7,560		$	29,057		$	21,514		$	9,069		$	30,583


Mortgage loans held-in-portfolio:
	Quarter ended									Quarter ended
	31-Dec-20									30-Sep-20
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	370,060		$	14,484		$	384,544		$	397,262		$	14,144		$	411,406
Plus:
New non-performing loans		90,399			11,183			101,582			41,513			6,897			48,410
Advances on existing non-performing loans		—			81			81			—			48			48
Less:
Non-performing loans transferred to OREO		(730	)		—			(730	)		(492	)		—			(492	)
Non-performing loans charged-off		(4,588	)		(31	)		(4,619	)		(3,738	)		(11	)		(3,749	)
Loans returned to accrual status / loan collections		(40,798	)		(10,853	)		(51,651	)		(64,485	)		(6,594	)		(71,079	)

Ending balance NPLs	$	414,343		$	14,864		$	429,207		$	370,060		$	14,484		$	384,544


Total non-performing loans held-in-portfolio (excluding consumer):
	Quarter ended									Quarter ended
	31-Dec-20									30-Sep-20
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	633,558		$	31,307		$	664,865		$	651,152		$	23,383		$	674,535
Plus:
New non-performing loans		101,842			11,650			113,492			83,277			28,843			112,120
Advances on existing non-performing loans		—			411			411			—			106			106
Less:
Non-performing loans transferred to OREO		(793	)		—			(793	)		(531	)		—			(531	)
Non-performing loans charged-off		(23,795	)		(1,812	)		(25,607	)		(4,738	)		(463	)		(5,201	)
Loans returned to accrual status / loan collections		(70,880	)		(13,144	)		(84,024	)		(95,602	)		(20,562	)		(116,164	)

Ending balance NPLs ^[1]	$	639,932		$	28,412		$	668,344		$	633,558		$	31,307		$	664,865

[1]	Includes $1.5 million of NPLs related to the legacy portfolio as of December 31, 2020 (September 30, 2020 - $1.4 million).

Popular, Inc.

Financial Supplement to Fourth Quarter 2020 Earnings Release

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

(Unaudited)


	Quarter ended			Quarter ended			Quarter ended
	31-Dec-20			30-Sep-20			31-Dec-19
(Dollars in thousands)	Total			Total			Total
Balance at beginning of period - loans held-in-portfolio	$	925,850		$	918,434		$	512,365
Provision for credit losses		10,785			19,452			47,224
Initial allowance for credit losses - PCD Loans		1,693			4,823			—

		938,328			942,709			559,589

Net loans charged-off:
BPPR
Commercial		17,171			(1,959	)		7,301
Construction		(584	)		(156	)		(48	)
Lease financing		996			(329	)		2,768
Mortgage		4,579			1,964			8,770
Consumer		19,055			14,249			40,171

Total BPPR		41,217			13,769			58,962

Popular U.S.
Commercial		(1,706	)		360			19,150
Construction		444			—			—
Legacy [1]		(33	)		(51	)		(110	)
Mortgage		15			(5	)		(6	)
Consumer		2,141			2,786			3,885

Total Popular U.S.		861			3,090			22,919

Total loans charged-off - Popular, Inc.		42,078			16,859			81,881

Balance at end of period - loans held-in-portfolio	$	896,250		$	925,850		$	477,708

Balance at beginning of period - unfunded commitments	$	13,295		$	6,717		$	8,310
Provision for credit losses		2,556			6,578			407

Balance at end of period - unfunded commitments [2]	$	15,851		$	13,295		$	8,717

POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio		0.58	%		0.24	%		1.21	%
Provision for credit losses - loan portfolios to net charge-offs		25.63	%		115.38	%		57.67	%
BPPR
Annualized net charge-offs to average loans held-in-portfolio		0.77	%		0.26	%		1.18	%
Provision for credit losses - loan portfolios to net charge-offs		60.06	%		55.79	%		69.27	%
Popular U.S.
Annualized net charge-offs to average loans held-in-portfolio		0.04	%		0.16	%		1.29	%
Provision for credit losses - loan portfolios to net charge-offs		(1,622.65	)%		380.91	%		27.84	%

[1]	The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.

[2]	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-20			31-Dec-19
	Total			Total
Balance at beginning of period - loans held-in-portfolio	$	477,708		$	569,348
Impact of adopting CECL	$	315,107			—
Provision for credit losses		282,336			165,779
Initial allowance for credit losses - PCD Loans		7,512			—

		1,082,663			735,127

Net loans charged-off:
BPPR
Commercial		16,889			34,711
Construction		(954	)		(3,105	)
Lease financing		7,364			9,337
Mortgage		19,635			41,355
Consumer		133,712			127,960

Total BPPR		176,646			210,258

Popular U.S.
Commercial		(2,143	)		31,408
Construction		289			2,207
Legacy [1]		(72	)		(1,399	)
Mortgage		(10	)		435
Consumer		11,703			14,510

Total Popular U.S.		9,767			47,161

Total loans charged-off - Popular, Inc.		186,413			257,419

Balance at end of period - loans held-in-portfolio	$	896,250		$	477,708

Balance at beginning of period - unfunded commitments	$	8,717		$	8,216
Impact of adopting CECL		(5,460	)		—
Provision for credit losses		12,594			501

Balance at end of period - unfunded commitments [2]	$	15,851		$	8,717

POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio		0.66	%		0.96	%
Provision for credit losses - loan portfolios to net charge-offs		151.46	%		64.40	%
BPPR
Annualized net charge-offs to average loans held-in-portfolio		0.85	%		1.06	%
Provision for credit losses - loan portfolios to net charge-offs		116.54	%		64.56	%
Popular U.S.
Annualized net charge-offs to average loans held-in-portfolio		0.13	%		0.68	%
Provision for credit losses - loan portfolios to net charge-offs		782.95	%		63.67	%

[1]	The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.

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

Popular, Inc.

Financial Supplement to Fourth Quarter 2020 Earnings Release

Table N - Allowance for Credit Losses “ACL”- Loan Portfolios - CONSOLIDATED

(Unaudited)


31-Dec-20
(Dollars in thousands)	Commercial			Construction			Legacy [1]			Mortgage			Lease financing			Consumer			Total
Total ACL	$	332,269		$	13,955		$	1,393		$	215,716		$	16,863		$	316,054		$	896,250
Total loans held-in-portfolio	$	13,606,280		$	918,765		$	15,473		$	7,890,680		$	1,197,661		$	5,756,337		$	29,385,196

ACL to loans held-in-portfolio		2.44	%		1.52	%		9.00	%		2.73	%		1.41	%		5.49	%		3.05	%

[1]	The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. reportable segment.


30-Sep-20
(Dollars in thousands)	Commercial			Construction			Legacy [1]			Mortgage			Lease financing			Consumer			Total
Total ACL	$	330,276		$	12,334		$	1,905		$	225,338		$	15,168		$	340,829		$	925,850
Total loans held-in-portfolio	$	13,611,374		$	936,274		$	16,168		$	7,924,441		$	1,153,108		$	5,751,145		$	29,392,510

ACL to loans held-in-portfolio		2.43	%		1.32	%		11.78	%		2.84	%		1.32	%		5.93	%		3.15	%


[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. reportable segment.
Variance
(Dollars in thousands)	Commercial			Construction			Legacy			Mortgage			Lease financing			Consumer			Total
Total ACL	$	1,993		$	1,621		$	(512	)	$	(9,622	)	$	1,695		$	(24,775	)	$	(29,600	)
Total loans held-in-portfolio	$	(5,094	)	$	(17,509	)	$	(695	)	$	(33,761	)	$	44,553		$	5,192		$	(7,314	)

Popular, Inc.

Financial Supplement to Fourth Quarter 2020 Earnings Release

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

(Unaudited)


31-Dec-20
Puerto Rico
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL	$	225,323		$	4,871		$	195,557		$	16,863		$	297,136		$	739,750
Loans held-in-portfolio	$	7,987,616		$	157,106		$	6,770,143		$	1,197,661		$	5,460,754		$	21,573,280

ACL to loans held-in-portfolio		2.82	%		3.10	%		2.89	%		1.41	%		5.44	%		3.43	%


30-Sep-20
Puerto Rico
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL	$	218,448		$	4,868		$	203,658		$	15,168		$	312,376		$	754,518
Loans held-in-portfolio	$	8,077,347		$	196,065		$	6,826,980		$	1,153,108		$	5,411,143		$	21,664,643

ACL to loans held-in-portfolio		2.70	%		2.48	%		2.98	%		1.32	%		5.77	%		3.48	%


Variance
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL	$	6,875		$	3		$	(8,101	)	$	1,695		$	(15,240	)	$	(14,768	)
Loans held-in-portfolio	$	(89,731	)	$	(38,959	)	$	(56,837	)	$	44,553		$	49,611		$	(91,363	)

Popular, Inc.

Financial Supplement to Fourth Quarter 2020 Earnings Release

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

(Unaudited)


31-Dec-20
Popular U.S.
(In thousands)	Commercial			Construction			Legacy [1]			Mortgage			Consumer			Total
ACL	$	106,946		$	9,084		$	1,393		$	20,159		$	18,918		$	156,500
Loans held-in-portfolio	$	5,618,664		$	761,659		$	15,473		$	1,120,537		$	295,583		$	7,811,916

ACL to loans held-in-portfolio		1.90	%		1.19	%		9.00	%		1.80	%		6.40	%		2.00	%


[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. reportable segment.
30-Sep-20
Popular U.S.
(In thousands)	Commercial			Construction			Legacy [1]			Mortgage			Consumer			Total
ACL	$	111,828		$	7,466		$	1,905		$	21,680		$	28,453		$	171,332
Loans held-in-portfolio	$	5,534,027		$	740,209		$	16,168		$	1,097,461		$	340,002		$	7,727,867

ACL to loans held-in-portfolio		2.02	%		1.01	%		11.78	%		1.98	%		8.37	%		2.22	%


[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. reportable segment.
Variance
(In thousands)	Commercial			Construction			Legacy			Mortgage			Consumer			Total
ACL	$	(4,882	)	$	1,618		$	(512	)	$	(1,521	)	$	(9,535	)	$	(14,832	)
Loans held-in-portfolio	$	84,637		$	21,450		$	(695	)	$	23,076		$	(44,419	)	$	84,049

Popular, Inc.

Financial Supplement to Fourth Quarter 2020 Earnings Release

Table Q - Reconciliation to GAAP Financial Measures

(Unaudited)


(In thousands, except share or per share information)	31-Dec-20			30-Sep-20			31-Dec-19
Total stockholders’ equity	$	6,028,687		$	5,912,085		$	6,016,779
Less: Preferred stock		(22,143	)		(22,143	)		(50,160	)
Less: Goodwill		(671,122	)		(671,122	)		(671,122	)
Less: Other intangibles		(22,466	)		(23,518	)		(28,780	)

Total tangible common equity	$	5,312,956		$	5,195,302		$	5,266,717

Total assets	$	65,926,000		$	65,910,369		$	52,115,324
Less: Goodwill		(671,122	)		(671,122	)		(671,122	)
Less: Other intangibles		(22,466	)		(23,518	)		(28,780	)

Total tangible assets	$	65,232,412		$	65,215,729		$	51,415,422

Tangible common equity to tangible assets		8.14	%		7.97	%		10.24	%
Common shares outstanding at end of period		84,244,235			84,219,464			95,589,629
Tangible book value per common share	$	63.07		$	61.69		$	55.10


	Quarterly average
Total stockholders’ equity [1]	$	5,540,456		$	5,383,126		$	5,887,125
Less: Preferred Stock		(22,143	)		(22,143	)		(50,160	)
Less: Goodwill		(671,121	)		(671,121	)		(671,121	)
Less: Other intangibles		(23,166	)		(24,161	)		(20,674	)

Total tangible equity	$	4,824,026		$	4,665,701		$	5,145,170
Return on average tangible common equity		14.50	%		14.32	%		12.79	%


	Year-to-date average
Total stockholders’ equity [1]	$	5,419,938					$	5,713,517
Less: Preferred Stock		(26,277	)					(50,160	)
Less: Goodwill		(671,121	)					(669,200	)
Less: Other intangibles		(25,154	)					(23,563	)

Total tangible equity	$	4,697,386					$	4,970,594
Return on average tangible common equity		10.75	%					13.43	%

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

CONTACT:

Popular, Inc.

Investor Relations:

Paul Cardillo, 212-417-6721

Senior Vice President, Investor Relations Officer

Media Relations:

Teruca Rullán, 787-281-5170 or 917-679-3596 (mobile)

Senior Vice President, Corporate Communications


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock ($0.01 par value)	BPOP	The NASDAQ Stock Market
6.70% Cumulative Monthly Income Trust Preferred Securities	BPOPN	The NASDAQ Stock Market
6.125% Cumulative Monthly Income Trust Preferred Securities	BPOPM	The NASDAQ Stock Market


99.1		Press Release dated January 28, 2021 – Fourth Quarter 2020 Financial Results.

99.2		Popular, Inc. Conference Call Presentation – Fourth Quarter 2020 Financial Results.

101		Pursuant to Rule 406 of Regulation S-T, the cover page is formatted in Inline XBRL (Inline eXtensible Business Reporting Language).

104		Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).