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8-K

Popular, Inc. (BPOP)

8-K 2020-10-28 For: 2020-10-27
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 27, 2020

POPULAR, INC.

(Exact name of registrant as specified in its charter)

Puerto Rico 001-34084 66-0667416
(State or other jurisdiction of<br> <br>incorporation or organization) (Commission<br> <br>File Number) (IRS Employer<br> <br>Identification Number)
209 Muñoz Rivera Avenue<br> <br>Hato Rey, Puerto Rico 00918
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(Address of principal executive offices) (Zip code)

(787) 765-9800

(Registrant’s telephone number, including area code)

NOT APPLICABLE

(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐ Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐ Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading<br> <br>Symbol(s) Name of each exchange<br> <br>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

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02. Results of Operations and Financial Condition

On October 28, 2020, Popular, Inc. (the “Corporation”) issued a press release announcing its unaudited financial results for the quarter ended September 30, 2020, a copy of which is attached as Exhibit 99.1 to this Current Report on Form 8-K.

The information furnished pursuant to this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference into any of the Corporation’s filings under the Securities Act of 1933, as amended, unless otherwise expressly stated in such filing.

Item 2.05. Costs Associated with Exit or Disposal Activities.

On October 27, 2020, Popular Bank (the “Bank”), the United States mainland banking subsidiary of the Corporation, authorized and approved a strategic realignment of the Bank’s New York Metro branch network that will result in eleven (11) branch closures across the New York Metro region and related branch and support staff reductions. The branch closures are expected to be completed, subject to applicable regulatory requirements, by January 29, 2021.

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

As a result of the Bank’s closure of the eleven (11) New York Metro region branches, the Corporation expects to record a total pre-tax charge of approximately $24.5 million, of which $23.1 million is expected to be recognized during the fourth quarter of 2020. This aggregate pre-tax charge includes approximately $2.4 million in costs associated with severance and related benefit costs for the 83 impacted employees and charges of approximately $20.0 million associated with the impairment of right-of-use assets related to the abandonment of real property leases. Severance and related benefit costs are expected to be paid during 2021, while costs related to each abandoned real property lease are expected be paid the earlier of (i) the termination date of each such lease and (ii) the end of each such lease’s original term. The Corporation anticipates annual operating expense savings of approximately $13 million as a result of this strategic realignment. These estimates could change as the Corporation’s plan evolves and becomes finalized.

Item 2.06. Material Impairments.

The information contained in Item 2.05 of this Current Report on Form 8-K is incorporated into this Item 2.06 by reference.

Item 7.01. Regulation FD Disclosure.

The Corporation is furnishing information regarding its conference call to discuss its financial results for the quarter ended September 30, 2020. A copy of the presentation to be used by the Corporation on the conference call is attached to this Current Report on Form 8-K as Exhibit 99.2.

On October 28, 2020, the Corporation issued a press release announcing Popular Bank’s New York Metro branch network strategic realignment. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.3.

The information furnished pursuant to this Item 7.01 of this Current Report on Form 8-K, including Exhibits 99.2 and 99.3, shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference into any of the Corporation’s filings under the Securities Act of 1933, as amended, unless otherwise expressly stated in such filing.

Item 9.01. Financial Statements and Exhibits.

Exhibits 99.1, 99.2 and 99.3 shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended, nor shall they be incorporated by reference into any of the Corporation’s filings under the Securities Act of 1933, as amended, unless otherwise expressly stated in such filing.

99.1 Press release dated October 28, 2020 – Third Quarter 2020 Financial Results
99.2 Popular, Inc. Conference Call Presentation – Third Quarter 2020 Financial Results
99.3 Press release dated October 28, 2020 – Popular Bank’s New York Metro Branch Strategic Realignment.
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).

Cautionary Note Regarding Forward-Looking Statements

This Current Report on Form 8-K contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about the Corporation’s business, financial condition, results of operations, plans, objectives and future performance. Forward-looking statements in this Current Report on Form 8-K include the expected completion date for the branch closures, expected benefits of the strategic realignment, estimates of pre-tax charges and anticipated annual operating expense savings. 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 the Corporation, 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 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020 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.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

POPULAR, INC.<br> <br>(Registrant)
Date: October 28, 2020 By: /s/ Jorge J. García
Jorge J. García
Senior Vice President and Corporate Comptroller

EX-99.1

Exhibit 99.1

LOGO

Popular, Inc. Announces Third Quarter 2020 Financial Results

• Net income of $168.4 million in Q3 2020, compared to net income of $127.6 million in Q2 2020.
• Net interest margin of 3.06% in Q3 2020, compared to 3.25% in Q2 2020; net interest margin on a taxableequivalent basis of 3.37% in Q3 2020, compared to 3.56% in Q2 2020.
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• Credit Quality:
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• Non-performing loans held-in-portfolio (“NPLs”) decreased by $25.8 million from Q2 2020; NPLs to loans ratio at 2.5% vs. 2.6% in Q2 2020;
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• Net charge-offs (“NCOs”) decreased by $48.1 million from Q2 2020; NCOs at 0.24% of averageloans held-in-portfolio vs. 0.92% in Q2 2020;
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• Allowance for credit losses (“ACL”) to loans held-in-portfolio at 3.15% vs. 3.16% in Q2 2020; and
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• ACL to NPLs at 126.1% vs. 120.8% in Q2 2020.
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• Common Equity Tier 1 ratio of 15.93%, Common Equity per Share of $69.94 and Tangible Book Value per Share of$61.69 at September 30, 2020.
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SAN JUAN, Puerto Rico — (BUSINESS WIRE) — Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $168.4 million for the quarter ended September 30, 2020, compared to net income of $127.6 million for the quarter ended June 30, 2020.

Ignacio Alvarez, President and Chief Executive Officer, said: “We generated $168.4 million in earnings in the third quarter, reflecting the economic rebound fueled by the unprecedented level of federal stimulus. While the economic scenario remains uncertain, the strong results reflect our diversified sources of revenue and prudent risk management. Deposits continued to grow and loan demand remains low as customers are cautious and conserving cash. Our capital and liquidity levels are robust and we are well positioned to continue to serve our customers as they manage through these uncertain times. The American Bankers Association recently recognized our commitment to the community, selecting us as one of seven banks to receive the 2020 Community Commitment Award for our financial education program.

I want to thank all our colleagues who, while facing their own personal challenges as a result of the pandemic, continue to go the extra mile to serve our customers.”

Significant Events

Financial Highlights

For the third quarter of 2020, the Corporation recorded net income of $168.4 million, compared to a net income of $127.6 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 we operate and our results of operations, as further explained below.

The Corporation’s total assets increased by $3.1 billion during the quarter to $65.9 billion, primarily due to an increase in deposits of $2.2 billion, of which $2.0 billion were from commercial and retail clients and $0.8 billion were from the public sector in Puerto Rico, driven in part by Federal and Puerto Rico Government assistance programs related to the pandemic. The net interest margin continues to reflect the increase in earning assets concentrated in investments in overnight Fed Funds, U.S. Treasury and U.S. Agency debt securities plus 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. Net interest income for the quarter increased by $10.1 million, although the net interest margin declined by 19 basis points to 3.06% due to the increase in lower earning 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 imposed 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 relaxed during the second and third quarters of 2020 to allow for the gradual reopening of the economy, certain restrictions continue in place which results in many businesses not being able to operate at their full capacity. The Corporation’s results for the third quarter 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 the Corporation elected to waive in connection with such financial relief programs and resumed its delinquent loan collection efforts. As of September 30, 2020, the Corporation had granted loan payment moratoriums to 125,736 eligible retail customers with an aggregate book value of $4.5 billion, and to 5,063 eligible commercial clients with an aggregate book value of $4.1 billion as further detailed below. 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 September 30, 2020, 124,884 loans with an aggregate book value of $7.9 billion had already completed their payment moratorium period, while 5,915 loans with an aggregate book value of $0.7 billion are still under the moratorium. As of quarter end, 95% of COVID-19 payment deferrals have expired. After excluding government guaranteed loans that are still pending to complete their COVID-19 related modifications, 95% of the remaining loans were in turn current on their payments. The following table presents the moratoriums granted by loan portfolio.

Total Moratoriums Granted Active Moratoriums
Loan portfolio affected by Covid-related moratoriums Loan count Book Value<br>(In thousands) Percentage by<br>portfolio Loan count Book Value<br>(In thousands) Percentage by<br>portfolio
Mortgage 23,209 $ 2,812,171 35.5 % 5,240 $ 552,095 7.0 %
Auto loans 48,819 860,419 28.3 % — — — %
Lease financing 10,803 402,258 34.9 % — — — %
Credit cards 19,615 100,711 10.8 % 18 95 — %
Other consumer loans 23,290 340,561 19.2 % 595 8,706 0.5 %
Commercial 5,063 4,064,352 27.9 % 62 137,470 0.9 %
Total 130,799 $ 8,580,472 29.2 % 5,915 $ 698,366 2.4 %

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.

Loan repurchase transaction

During the quarter ended September 30, 2020, the Corporation completed bulk loan repurchases from its Ginnie Mae (“GNMA’’), Fannie Mae (“FNMA’’) and Freddie Mac (‘’FHMLC’’) (combined ‘’GSEs’’) loan servicing portfolios with an aggregate balance of $807.6 million. The transactions were executed to limit future exposures to principal and interest advances as well as sundry losses and to deploy liquidity to increase interest income. At September 30, 2020, loans with an aggregate unpaid principal balance of $106 million, corresponding to the portfolio acquired from FNMA and FHMLC, had been modified under the Corporation’s COVID-19 relief or other loss mitigation programs.

The following table presents a summary of the impact of the transactions.

Transaction highlights (in thousands) FHLMC & FNMA GNMA ^[1]^ Total
Balance Sheet:
Repurchased mortgage loans $ 119,764 $ 687,871 $ 807,635
Loan premium ^[2]^ 6,297 — 6,297
Allowance for credit losses (“ACL’’)<br>^[2]^ (4,144 ) — (4,144 )
Advanced interest receivable 816 20,575 21,391
Income Statement:
Adjustments to indemnity reserves $ 5,052 $ — $ 5,052
Mortgage banking activities:
Mortgage servicing fees 208 3,145 3,353
Mortgage servicing rights fair value adjustments (936 ) (7,819 ) (8,755 )
Losses on repurchased loans, including interest advances — (10,548 ) (10,548 )
Total mortgage banking activities (728 ) (15,222 ) (15,950 )
Pre-tax income (loss) $ 4,324 $ (15,222 ) $ (10,898 )
[1] The GNMA repurchase transaction resulted in an increase in the mortgage portfolio of $364 million QoQ. A<br>portion of the acquired loans amounting to $324 million were included in the prior period’s ending portfolio balance, in accordance with U.S. GAAP, due to the delinquency status of the loans and the Corporation’s right but not the<br>obligation to repurchase the assets.
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[2] The repurchased FNMA loans were previously sold with credit recourse and are considered Purchased Credit<br>Deteriorated (“PCD”) at the time of repurchase. Therefore, the establishment of the related ACL is recorded as a gross up of the acquired loan balance that will be amortized (decrease interest income) over the life of the loan.<br>
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Goodwill Impairment Evaluation

The Corporation is in the process of completing its annual goodwill impairment test, using July 31, 2020 as the evaluation date. Management has continued to monitor changes in circumstances related to the impact of the COVID-19 pandemic and the effect of the current and projected interest rate environment to determine if these changes would more likely than not result in an impairment of goodwill. The Corporation expects to complete its evaluation prior to the filing of its Form 10-Q for the quarter ended September 30, 2020 with the Securities and Exchange Commission. An impairment of goodwill would result in a non-cash expense, net of tax impact. A charge to earnings related to a goodwill impairment would not impact regulatory capital calculations. ****

Popular Bank New York Branches Optimization Strategy

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, subject to applicable regulatory requirements, 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 our largest regional retail network in the mainland US with twenty-seven (27) branches in its New York Metro region, located throughout Brooklyn, Bronx, Manhattan and Queens, as well as in northern New Jersey.

As a result of PB’s closure of the eleven (11) New York Metro region branches, the Corporation expects to record a total pre-tax charge of approximately $24.5 million, of which $23.1 million is expected to be recognized during the fourth quarter of 2020. This aggregate pre-tax charge includes approximately $2.4 million in costs associated with severance and related benefit costs for the 83 impacted employees and charges of approximately $20.0 million associated with the impairment of right-of-use assets related to the abandonment of real property leases. The Corporation anticipates annual operating expense savings of approximately $13 million as a result of this strategic realignment. These estimates could change as the Corporation’s plan evolves and becomes finalized.

Earnings Highlights

(Unaudited) Quarters ended Nine months ended
(Dollars in thousands, except per share information) 30-Sep-20 30-Jun-20 30-Sep-19 30-Sep-20 30-Sep-19
Net interest income $ 461,021 $ 450,881 $ 476,991 $ 1,384,997 $ 1,424,270
Provision for credit losses - loan portfolios 19,452 63,104 36,539 271,551 118,555
Provision (reversal) for credit losses - investment securities (314 ) (655 ) — (233 ) —
Net interest income after provision for credit losses 441,883 388,432 440,452 1,113,679 1,305,715
Other non-interest income 128,767 112,055 142,712 367,465 417,468
Operating expenses 361,066 348,231 376,475 1,081,905 1,086,910
Income before income tax 209,584 152,256 206,689 399,239 636,273
Income tax expense 41,168 24,628 41,370 68,893 131,923
Net income $ 168,416 $ 127,628 $ 165,319 $ 330,346 $ 504,350
Net income applicable to common stock $ 168,064 $ 127,275 $ 164,389 $ 328,941 $ 501,558
Net income per common share - basic $ 2.01 $ 1.49 $ 1.71 $ 3.80 $ 5.17
Net income per common share - diluted $ 2.00 $ 1.49 $ 1.70 $ 3.80 $ 5.16

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

Net interest income for the quarter ended September 30, 2020 was $461.0 million compared to $450.9 million in the previous quarter, an increase of $10.1 million. Net interest income, on a taxable equivalent basis, for the third quarter of 2020 was $506.9 million, an increase of $13.9 million when compared to $493.0 million in the second quarter of 2020.

The net interest margin decreased by 19 basis points to 3.06% in the third quarter of 2020, compared to 3.25% 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 plus an average balance of $1.4 billion in SBA PPP loans, compared with an average balance of $913 million for the previous quarter. These assets, although accretive to net interest income, are lower yielding assets and therefore compressed the net interest margin. The redeployment into relatively short tenured assets responds in part to the uncertainty of the tenure of the deposit growth. On a taxable equivalent basis, net interest margin was 3.37 % compared to 3.56 % in the second quarter of 2020, a decrease of 19 basis points. The main variances in net interest income on a taxable equivalent basis were:

• Higher income from money market, trading and investment securities by $6.0 million, mainly due to higher<br>average balance of U.S. Agency mortgage backed debt securities;
• higher interest income from loans by $2.4 million mainly driven by the acceleration of the discount<br>amortization related to the prepayment of a commercial loan, higher income from mortgage and auto loans driven by higher originations and higher average balance of SBA PPP loans by approximately $0.5 billion, partially offset by lower income<br>from personal and credit card loans. During the quarter, the Corporation recognized income of $10.3 million related to loans issued under the SBA PPP program, compared to $6.5 million in the previous quarter. As mentioned above, these<br>loans carry a lower yield (approximately 2.88%, including the amortization of fees received under the program that at September 30, 2020 still had $41.4 million in unamortized balance); and
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• lower interest expense on deposits by $5.2 million, or 8 basis points, due to lower interest cost, mainly at<br>Popular Bank
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The net interest income for the Banco Popular de Puerto Rico (“BPPR”) segment amounted to $394.7 million for the quarter ended September 30, 2020, compared to $387.2 million in the previous quarter. The net interest margin for the third quarter of 2020 was 3.13%, a decrease of 26 basis points when compared to 3.39% for the previous quarter. As discussed above, the net interest margin was impacted by higher average balances of SBA PPP loans by approximately $0.4 billion and of the investments in overnight Fed Funds and other short-term investments, which carry a low yield. The cost of interest-bearing deposits was 0.24%, compared to 0.28% for the previous quarter. Total cost of deposits for the quarter was 0.18%, compared to 0.22% reported in the second quarter of 2020, a decrease of 4 basis points.

Net interest income for Popular Bank was $76.5 million for the quarter ended September 30, 2020, compared to $73.7 million during the previous quarter. The increase of $2.8 million in net interest income was primarily due to lower deposit costs by 20 basis points, partially offset by lower income from loans, mainly personal loans. Net interest margin for the quarter was 3.18%, an increase of 11 basis points when compared to 3.07% reported in the second quarter of 2020, mainly due to a decrease in deposit costs. The cost of interest-bearing deposits was 0.98%, compared to 1.18% in the previous quarter. Total cost of deposits for the quarter was 0.81%, compared to 1.01% reported in the second quarter.

Non-interest income

Non-interest income increased by $16.7 million to $128.8 million for the quarter ended September 30, 2020, compared to $112.1 million for the quarter ended June 30, 2020. The increase in non-interest income was primarily driven by:

• Higher service charges on deposit accounts by $6.7 million, mainly in the BPPR segment, due to higher<br>transaction volumes and the reinstatement of certain fees and service charges which were waived during the second quarter of 2020 as part of the financial relief programs implemented in response to the<br>COVID-19 pandemic;
• higher other service fees by $17.8 million, mainly at the BPPR segment, due to higher debit and credit card<br>fees by $13.4 million as a result of increased economic activity after business disruptions caused by the COVID-19 pandemic and the reinstatement of previously waived fees;
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• an increase in net gain, including impairment, on equity securities of $2.7 million mainly related to a gain<br>on sale of certain equity securities at PB;
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• a favorable variance in adjustments to indemnity reserves on previously sold loans of $5.3 million mainly<br>due to a recourse reserve release related to the bulk loan repurchase from FNMA and FHLMC; and
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• higher other operating income by $1.9 million mainly due to higher net earnings from the combined portfolio<br>of investments under the equity method by $2.8 million and $4.1 million in higher revenues recognized by our auto lending subsidiary principally associated to daily car rental activities. The second quarter included a gain of<br>$5.6 million as a result of the sale and partial leaseback of the corporate office building that houses our auto lending subsidiary;
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Partially offset by:

• lower income from mortgage banking activities by $13.3 million mainly due to higher unfavorable fair value<br>adjustments on mortgage servicing rights (“MSRs”) by $12.9 million, of which $8.8 million was related to the bulk loan repurchases from the Corporation’s GNMA, FNMA and FHLMC loan servicing portfolio; and $10.5 million<br>in interest advanced losses related to the loans repurchased in bulk from GNMA; partially offset by higher mortgage servicing fees by $3.9 million mainly related to fees in arrears collected and recognized in connection with the bulk repurchase<br>transactions, and higher gains on securitization transactions and whole loan sales by $5.4 million; and
• an unfavorable variance in net (loss) gain on sale of loans, including valuation adjustments, of<br>$4.4 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<br>compared to a net gain of $2.2 million recognized on the sale of taxi medallions during the second quarter of 2020.
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Refer toTable B for further details.

Operating expenses

Operating expenses for the third quarter of 2020 totaled $361.1 million, an increase of $12.8 million from the second quarter of 2020. The increase in operating expenses was driven primarily by:

• Higher equipment expenses by $3.2 million mainly due to higher amortization expense;
• higher professional fees by $3.9 million mainly due to higher processing and technology services by<br>$5.5 million related to increased customer activity;
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• higher business promotion expenses by $2.4 million due primarily to higher customer reward program expense<br>in our credit card business by $1.9 million due to higher purchasing activities by our customers;
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• higher credit and debit card processing fees and higher interchange and other expenses by $1.9 million due<br>to higher volume of transactions; and
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• higher other operating expenses by $4.3 million mainly due to higher operational losses reserves by<br>$4.7 million and a higher provision for unused loan commitments by $4.3 million, partially offset by lower subsequent write-downs of foreclosed auto units by $3.5 million.
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Partially offset by:

• Lower personnel cost by $3.2 million due to lower salaries by $2.1 million, lower employee deferred<br>compensation plans expense by $1.2 million; partially offset by higher commission, incentives and other bonuses by $1.8 million due to higher production.

Full-time equivalent employees were 8,514 as of September 30, 2020, compared to 8,525 as of June 30, 2020.

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

Income taxes

For the quarter ended September 30, 2020, the Corporation recorded an income tax expense of $41.2 million, compared to $24.6 million for the previous quarter. The increase in income tax expense was mainly attributed to higher income before tax during the third quarter of 2020. The effective tax rate (“ETR”) for the third quarter of 2020 was of 20%, compared to 16% in the previous quarter.

The ETR of the Corporation is impacted by the composition and source of its taxable income. For the fourth quarter of 2020, the Corporation currently expects its consolidated ETR to be within the 19% to 22% range.

Credit Quality

The Corporation’s credit performance remained stable during the third quarter of 2020, aided by payment deferrals, government stimulus measures instituted in response to the COVID-19 pandemic and the resumption of collection efforts. Notwithstanding these indicators and the increase in economic activity experienced during the quarter, the effect of the pandemic and the full extent of its economic disruption remains uncertain. Management believes that the improvement over the last few years in the risk profile of the Corporation’s loan portfolios better positions Popular to operate successfully under the ongoing challenging environment. Management 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 we operate and how delinquencies and NCOs evolve during the next several quarters.

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

• At September 30, 2020, total non-performing loans held-in-portfolio decreased by $25.8 million from June 30, 2020. BPPR’s NPLs decreased by $32.9 million, driven by lower mortgage, consumer (mostly auto<br>loans), and commercial NPLs by $27.2 million, $13.8 million, and $11.9 million, respectively, offset in part by an increase of $21.5 million in construction NPLs. PB’s NPLs increased by $7.1 million, driven by a<br>$9.1 million construction relationship. During the first quarter of 2020, NPLs increased by $278 million as a result of the implementation of CECL for purchased credit deteriorated (“PCD”) loans. At September 30, 2020, the<br>ratio of NPLs to total loans held-in-portfolio was 2.5% compared to 2.6% in the second quarter of 2020.
• Inflows of NPLs<br>held-in-portfolio, excluding consumer loans, increased by $5.9 million quarter-over-quarter. In BPPR, total inflows decreased by $13.5 million driven by a<br>mortgage inflow decrease of $41.0 million, while the commercial and construction inflows in aggregate increased by $27.6 million, mostly related to a $21.5 million construction relationship, as mentioned above. The NPL inflows at PB<br>increased by $19.4 million from the previous quarter, mainly driven by higher construction inflows related to a $9.1 million loan from a single borrower in the New York region and commercial inflows of $10.8 million related to an<br>administrative delinquency on a performing loan that matured and reached 90 days during its renewal process. The loan renewal was completed during the quarter and the loan was returned to accrual status before the quarter ended.<br>
--- ---
• NCOs trended significantly lower during the quarter, decreasing by $48.1 million from the second quarter of<br>2020, aided by the pandemic relief programs, as well as the resumption of collection and repossession activity. BPPR ‘s NCOs decreased by $48.4 million, primarily driven by lower consumer NCOs by $36.0 million, mostly related to auto<br>loans. We continue to be attentive to changes in delinquencies and NCOs, as most deferrals expired during the third quarter of 2020 and given the uncertainty around the outlook of the pandemic. The Corporation’s ratio of annualized net<br>charge-offs to average loans held-in-portfolio was 0.24%, compared to 0.92% in the second quarter of 2020. Refer to Table M for further information on net charge-offs<br>and related ratios.
--- ---
• At September 30, 2020, the allowance for credit losses (“ACL”) reflected an increase of<br>$7.4 million from the second quarter of 2020 to $925.9 million. The ACL incorporates the current economic outlook using Moody’s Analytics’ September scenarios, as well as the effect of the credit risk rating downgrades of certain<br>commercial borrowers during the quarter, the hotel industry representing the largest impacted segment. These increases were in part offset by lower reserves for consumer loans influenced by lower balances, delinquencies and the impact of the<br>macroeconomic scenario. The ratio of the allowance for credit losses to loans held-in-portfolio was 3.15% in the third quarter of 2020, compared to 3.16% in the previous<br>quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 126.1%, compared to 120.8% in the previous quarter.
--- ---
• Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to<br>estimate its ACL. For the third quarter’s ACL computation, the Corporation combined Moody’s Analytics’ September S1 (optimistic), Baseline, and S3 (pessimistic) scenarios. Probability weights were applied to each such scenario’s<br>outputs as part of the ACL estimation process. When compared to the Moody’s Analytics’ second quarter’s June Baseline scenario, the third quarter’s Baseline scenario assumes a more favorable increase in economic activity from the<br>third quarter of 2020 through the second quarter of 2021, with continued growth thereafter. A significant second wave of COVID-19 infections as well as delays in the additional government stimulus continue to<br>be key risks to the Baseline forecast. Among the three scenarios used in the ACL, the Baseline is assigned the highest probability, followed by the S3 scenario given the uncertainties in the economic outlook and downside risk. For the second<br>quarter’s ACL computation, the Corporation only utilized Moody’s Analytics’ June Baseline scenario, which assumed that a significant pickup in economic activity would occur in the third quarter of 2020 driven by federal assistance<br>programs, followed by a period of tepid growth.
--- ---
• The provision for credit losses for the third quarter of 2020 decreased by $43.7 million from the prior<br>quarter, linked to significantly lower NCOs for the quarter. The provision for the BPPR segment decreased by $52.7 million, reflective of lower NCOs, while the provision for the PB segment increased by $9.1 million mainly due to the use of<br>the probability weights in the estimation process. The provision to net charge-offs ratio was 115.4% in the third quarter of 2020, compared to 97.2% in the previous quarter.
--- ---

Non-Performing Assets

(Unaudited)
(In thousands) 30-Sep-20 30-Jun-20 30-Sep-19
Total non-performing loans<br>held-in-portfolio $ 734,368 $ 760,204 $ 557,792
Non-performing loans held-for-sale 4,070 6,778 —
Other real estate owned (“OREO”) 100,592 113,940 117,928
Total non-performing assets $ 839,030 $ 880,922 $ 675,720
Net charge-offs for the quarter $ 16,859 $ 64,953 $ 67,840
Ratios:
Loans<br>held-in-portfolio $ 29,392,510 $ 29,070,553 $ 27,007,975
Non-performing loans held-in-portfolio to loans held-in-portfolio 2.50 % 2.62 % 2.07 %
Allowance for credit losses to loans held-in-portfolio 3.15 3.16 1.90
Allowance for credit losses to non-performing loans,<br>excluding loans held-for-sale 126.07 120.81 91.86

Refer to Table K for additional information.

Provision for Credit Losses - Loan Portfolios

(Unaudited) Quarters ended Nine months ended
(In thousands) 30-Sep-20 30-Jun-20 30-Sep-19 30-Sep-20 30-Sep-19
Provision for credit losses:
BPPR $ 7,682 $ 60,423 $ 34,479 $ 181,109 $ 94,908
Popular U.S. 11,770 2,681 2,060 90,442 23,647
Total provision for credit losses $ 19,452 $ 63,104 $ 36,539 $ 271,551 $ 118,555

Credit Quality by Segment

(Unaudited)
(In thousands) Quarters ended
BPPR 30-Sep-20 30-Jun-20 30-Sep-19
Provision for credit losses - loan portfolios $ 7,682 $ 60,423 $ 34,479
Net charge-offs 13,769 62,143 59,900
Total non-performing loans<br>held-in-portfolio 693,676 726,603 520,773
Allowance / loans<br>held-in-portfolio 3.48 % 3.53 % 2.26 %
Quarters ended
Popular U.S. 30-Sep-20 30-Jun-20 30-Sep-19
Provision for credit losses - loan portfolios $ 11,770 $ 2,681 $ 2,060
Net charge-offs 3,090 2,810 7,940
Total non-performing loans<br>held-in-portfolio 40,692 33,601 37,019
Allowance / loans<br>held-in-portfolio 2.22 % 2.13 % 0.87 %

Financial Condition Highlights

(Unaudited)
(In thousands) 30-Sep-20 30-Jun-20 30-Sep-19
Cash and money market investments $ 12,425,126 $ 10,060,358 $ 5,670,645
Investment securities 21,478,048 21,058,918 16,773,578
Loans 29,392,510 29,070,553 27,007,975
Total assets 65,910,369 62,845,352 52,480,415
Deposits 56,021,983 53,844,300 44,166,195
Borrowings 1,407,424 1,339,339 1,379,767
Total liabilities 59,998,284 57,065,187 46,571,967
Stockholders’ equity 5,912,085 5,780,165 5,908,448

Total assets increased by $3.1 billion from the second quarter of 2020, driven by:

• An increase of $2.4 billion in cash and money market investments, mainly due to an increase in deposits;<br>
• an increase of $0.4 billion 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; and
--- ---
• an increase of $0.3 billion in loans<br>held-in-portfolio mainly due to growth of auto loans at BPPR by $0.1 billion and an increase of $0.4 billion in mortgage loans at BPPR mainly due to loan<br>repurchases from its GSEs loan servicing portfolio.
--- ---

Total liabilities increased by $3.0 billion from the second quarter of 2020, mainly due to:

• An increase of $2.2 billion in deposits, mainly from an increase at BPPR, of which $0.8 billion related<br>to public sector deposits and $2.0 billion related to retail and commercial demand and savings accounts, including an increase of $0.7 billion in GNMA custodial deposit balances related to the repurchases that were transferred out in early<br>October, partially offset by a decrease of $0.5 billion in deposits at PB; and
• an increase of $0.7 billion in other liabilities due to an increase of $1.0 billion in unsettled<br>purchases of debt securities; partially offset by a reduction in the liability for GNMA loans sold with a repurchase option of $0.4 billion as a result of the previously mentioned GNMA repurchase.
--- ---

Stockholders’ equity increased by approximately $131.9 million from the second quarter of 2020, principally due to net income for the quarter of $168.4 million, partially offset by declared dividends of $33.7 million on common stock and $0.3 million in dividends on preferred stock.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 15.93%, $69.94 and $61.69, respectively, at September 30, 2020, compared to 15.71%, $68.40 and $60.13 at June 30, 2020. Refer to Table A for capital ratios.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about Popular’s business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include without limitation the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings (including as a result of any participation in and execution of government programs related to the COVID-19 pandemic), new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic, 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 and June 30, 2020, and in our Quarterly Report on Form 10-Q for the quarter ended September 30, 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 Wednesday, October 28, 2020 at 11:00 a.m. Eastern Time. The call will be open to the public and broadcasted live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through the dial-in telephone number 1-866-235-1201 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 Saturday, November 28, 2020. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10148486.

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

Popular, Inc.
Financial Supplement to Third Quarter 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 Third Quarter 2020 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

Quarters ended Nine months ended
30-Sep-20 30-Jun-20 30-Sep-19 30-Sep-20 30-Sep-19
Basic EPS $ 2.01 $ 1.49 $ 1.71 $ 3.80 $ 5.17
Diluted EPS $ 2.00 $ 1.49 $ 1.70 $ 3.80 $ 5.16
Average common shares outstanding 83,809,272 85,135,522 96,357,117 86,567,680 97,073,177
Average common shares outstanding - assuming dilution 83,836,151 85,161,661 96,478,327 86,645,691 97,212,396
Common shares outstanding at end of period 84,219,464 84,184,927 96,714,664 84,219,464 96,714,664
Market value per common share $ 36.27 $ 37.17 $ 54.08 $ 36.27 $ 54.08
Market capitalization - (In millions) $ 3,055 $ 3,129 $ 5,230 $ 3,055 $ 5,230
Return on average assets 1.06 % 0.87 % 1.29 % 0.76 % 1.35 %
Return on average common equity 12.46 % 9.74 % 11.44 % 8.21 % 11.96 %
Net interest margin (non-taxable equivalent<br>basis) 3.06 % 3.25 % 4.00 % 3.39 % 4.10 %
Net interest margin (taxable equivalent basis) -non-GAAP 3.37 % 3.56 % 4.45 % 3.72 % 4.51 %
Common equity per share $ 69.94 $ 68.40 $ 60.57 $ 69.94 $ 60.57
Tangible common book value per common share (non-GAAP)<br>[1] $ 61.69 $ 60.13 $ 53.41 $ 61.69 $ 53.41
Tangible common equity to tangible assets (non-GAAP)<br>[1] 7.97 % 8.15 % 9.97 % 7.97 % 9.97 %
Return on average tangible common equity [1] 14.32 % 11.23 % 13.00 % 9.44 % 13.65 %
Tier 1 capital 16.01 % 15.78 % 17.46 % 16.01 % 17.46 %
Total capital 18.49 % 18.29 % 20.05 % 18.49 % 20.05 %
Tier 1 leverage 7.80 % 8.13 % 9.87 % 7.80 % 9.87 %
Common Equity Tier 1 capital 15.93 % 15.71 % 17.46 % 15.93 % 17.46 %
[1] Refer to Table Q for reconciliation to GAAP financial measures.
--- ---

POPULAR, INC.

Financial Supplement to Third Quarter 2020 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

Quarters ended Variance Quarter ended Variance Nine months ended
Q3 2020 Q3 2020
(In thousands, except per share information) 30-Sep-20 30-Jun-20 vs. Q2 2020 30-Sep-19 vs. Q3 2019 30-Sep-20 30-Sep-19
Interest income:
Loans $ 431,286 $ 429,670 $ 1,616 $ 453,315 $ (22,029 ) $ 1,311,402 $ 1,355,232
Money market investments 2,773 2,015 758 19,119 (16,346 ) 16,788 70,873
Investment securities 79,142 76,884 2,258 99,542 (20,400 ) 243,938 274,819
Total interest income 513,201 508,569 4,632 571,976 (58,775 ) 1,572,128 1,700,924
Interest expense:
Deposits 37,554 42,780 (5,226 ) 78,760 (41,206 ) 142,435 228,035
Short-term borrowings 416 645 (229 ) 1,572 (1,156 ) 2,109 4,828
Long-term debt 14,210 14,263 (53 ) 14,653 (443 ) 42,587 43,791
Total interest expense 52,180 57,688 (5,508 ) 94,985 (42,805 ) 187,131 276,654
Net interest income 461,021 450,881 10,140 476,991 (15,970 ) 1,384,997 1,424,270
Provision for credit losses - loan portfolios 19,452 63,104 (43,652 ) 36,539 (17,087 ) 271,551 118,555
Provision (reversal) for credit losses - investment securities (314 ) (655 ) 341 — (314 ) (233 ) —
Net interest income after provision for credit losses 441,883 388,432 53,451 440,452 1,431 1,113,679 1,305,715
Service charges on deposit accounts 36,849 30,163 6,686 40,969 (4,120 ) 108,671 119,277
Other service fees 69,879 52,084 17,795 71,309 (1,430 ) 186,736 209,647
Mortgage banking activities (9,526 ) 3,777 (13,303 ) 10,492 (20,018 ) 671 18,645
Net gain (loss) on sale of debt securities 41 — 41 (20 ) 61 41 (20 )
Net gain, including impairment, on equity securities 5,150 2,447 2,703 213 4,937 4,869 2,174
Net profit on trading account debt securities 20 82 (62 ) 295 (275 ) 593 977
Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale (2,198 ) 2,222 (4,420 ) — (2,198 ) 981 —
Adjustments (expense) to indemnity reserves on loans sold 4,183 (1,160 ) 5,343 (3,411 ) 7,594 (1,770 ) (1,664 )
Other operating income 24,369 22,440 1,929 22,865 1,504 66,673 68,432
Total non-interest income 128,767 112,055 16,712 142,712 (13,945 ) 367,465 417,468
Operating expenses:
Personnel costs
Salaries 91,891 93,969 (2,078 ) 90,016 1,875 278,116 260,627
Commissions, incentives and other bonuses 17,849 16,076 1,773 22,360 (4,511 ) 59,183 70,757
Pension, postretirement and medical insurance 10,639 11,392 (753 ) 10,356 283 31,669 30,523
Other personnel costs, including payroll taxes 15,562 17,729 (2,167 ) 24,950 (9,388 ) 52,970 70,391
Total personnel costs 135,941 139,166 (3,225 ) 147,682 (11,741 ) 421,938 432,298
Net occupancy expenses 25,907 25,487 420 24,595 1,312 76,552 71,431
Equipment expenses 24,088 20,844 3,244 21,596 2,492 66,537 62,624
Other taxes 13,918 13,323 595 14,028 (110 ) 40,922 38,267
Professional fees
Collections, appraisals and other credit related fees 2,862 2,897 (35 ) 4,131 (1,269 ) 9,640 12,596
Programming, processing and other technology services 64,876 59,387 5,489 63,092 1,784 187,082 184,303
Legal fees, excluding collections 2,707 2,184 523 2,415 292 7,877 10,350
Other professional fees 26,029 28,079 (2,050 ) 28,923 (2,894 ) 85,493 74,026
Total professional fees 96,474 92,547 3,927 98,561 (2,087 ) 290,092 281,275
Communications 5,694 5,574 120 5,881 (187 ) 17,222 17,685
Business promotion 14,664 12,281 2,383 18,365 (3,701 ) 41,142 52,158
FDIC deposit insurance 6,568 5,340 1,228 2,923 3,645 16,988 13,007
Other real estate owned (OREO) (income) expenses (1,615 ) (344 ) (1,271 ) (185 ) (1,430 ) 520 3,729
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Credit and debit card processing, volume, interchange and other expenses 11,744 9,873 1,871 9,450 2,294 31,899 27,573
Other operating expenses
Operational losses 8,837 4,128 4,709 8,832 5 21,339 18,498
All other 17,770 18,216 (446 ) 22,348 (4,578 ) 51,409 61,283
Total other operating expenses 26,607 22,344 4,263 31,180 (4,573 ) 72,748 79,781
Amortization of intangibles 1,076 1,796 (720 ) 2,399 (1,323 ) 5,345 7,082
Total operating expenses 361,066 348,231 12,835 376,475 (15,409 ) 1,081,905 1,086,910
Income before income tax 209,584 152,256 57,328 206,689 2,895 399,239 636,273
Income tax expense 41,168 24,628 16,540 41,370 (202 ) 68,893 131,923
Net income $ 168,416 $ 127,628 $ 40,788 $ 165,319 $ 3,097 $ 330,346 $ 504,350
Net income applicable to common stock $ 168,064 $ 127,275 $ 40,789 $ 164,389 $ 3,675 $ 328,941 $ 501,558
Net income per common share - basic $ 2.01 $ 1.49 $ 0.52 $ 1.71 $ 0.30 $ 3.80 $ 5.17
Net income per common share - diluted $ 2.00 $ 1.49 $ 0.51 $ 1.70 $ 0.30 $ 3.80 $ 5.16
Dividends Declared per Common Share $ 0.40 $ 0.40 $ — $ 0.30 $ 0.10 $ 1.20 $ 0.90

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

(In thousands) 30-Sep-20 30-Jun-20 30-Sep-19 Variance<br>Q3 2020 vs.<br>Q2 2020
Assets:
Cash and due from banks $ 565,202 $ 435,080 $ 502,060 $ 130,122
Money market investments 11,859,924 9,625,278 5,168,585 2,234,646
Trading account debt securities, at fair value 33,053 33,560 36,303 (507 )
Debt securities<br>available-for-sale, at fair value 21,177,839 20,763,453 16,479,110 414,386
Debt securities<br>held-to-maturity, at amortized cost 93,163 95,429 97,707 (2,266 )
Less: Allowance for credit losses 12,421 12,735 — (314 )
Total debt securities<br>held-to-maturity, net 80,742 82,694 97,707 (1,952 )
Equity securities 173,993 166,476 160,458 7,517
Loans<br>held-for-sale, at lower of cost or fair value 102,760 68,725 56,370 34,035
Loans<br>held-in-portfolio 29,586,348 29,250,076 27,181,241 336,272
Less: Unearned income 193,838 179,523 173,266 14,315
Allowance for credit losses 925,850 918,434 512,365 7,416
Total loans<br>held-in-portfolio, net 28,466,660 28,152,119 26,495,610 314,541
Premises and equipment, net 510,473 513,680 547,063 (3,207 )
Other real estate 100,592 113,940 117,928 (13,348 )
Accrued income receivable 204,233 220,126 164,778 (15,893 )
Mortgage servicing rights, at fair value 123,552 141,144 150,652 (17,592 )
Other assets 1,816,706 1,833,444 1,811,190 (16,738 )
Goodwill 671,122 671,122 671,122 —
Other intangible assets 23,518 24,511 21,479 (993 )
Total assets $ 65,910,369 $ 62,845,352 $ 52,480,415 $ 3,065,017
Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing $ 13,546,432 $ 12,520,510 $ 8,771,970 $ 1,025,922
Interest bearing 42,475,551 41,323,790 35,394,225 1,151,761
Total deposits 56,021,983 53,844,300 44,166,195 2,177,683
Assets sold under agreements to repurchase 106,028 153,065 213,097 (47,037 )
Other short-term borrowings 100,000 — — 100,000
Notes payable 1,201,396 1,186,274 1,166,670 15,122
Other liabilities 2,568,877 1,881,548 1,026,005 687,329
Total liabilities 59,998,284 57,065,187 46,571,967 2,933,097
Stockholders’ equity:
Preferred stock 22,143 22,143 50,160 —
Common stock 1,045 1,044 1,044 1
Surplus 4,521,689 4,520,333 4,317,556 1,356
Retained earnings 2,168,153 2,033,782 2,071,198 134,371
Treasury stock (1,016,361 ) (1,016,486 ) (392,630 ) 125
Accumulated other comprehensive income (loss), net of tax 215,416 219,349 (138,880 ) (3,933 )
Total stockholders’ equity 5,912,085 5,780,165 5,908,448 131,920
Total liabilities and stockholders’ equity $ 65,910,369 $ 62,845,352 $ 52,480,415 $ 3,065,017

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)

Quarters ended Variance
30-Sep-20 30-Jun-20 30-Sep-19 Q3 2020 vs. Q2 2020 Q3 2020 vs. Q3 2019
($ amounts in millions) Average<br>balance Income /<br>Expense Yield /<br>Rate Average<br>balance Income /<br>Expense Yield /<br>Rate Average<br>balance Income /<br>Expense Yield /<br>Rate Average<br>balance Income /<br>Expense Yield /<br>Rate Average<br>balance Income /<br>Expense Yield /<br>Rate
Assets:
Interest earning assets:
Money market, trading and investment securities $ 31,337 $ 117.5 1.49 % $ 27,356 $ 111.5 1.64 % $ 20,617 $ 159.5 3.08 % $ 3,981 $ 6.0 (0.15 )% $ 10,720 ($ 42.0 ) (1.59 )%
Loans:
Commercial 13,669 170.1 4.95 13,350 168.8 5.09 12,167 187.3 6.11 319 1.3 (0.14 ) 1,502 (17.2 ) (1.16 )
Construction 930 13.3 5.67 935 13.2 5.69 809 13.3 6.50 (5 ) 0.1 (0.02 ) 121 — (0.83 )
Mortgage 7,094 95.8 5.40 7,038 92.2 5.24 7,127 95.7 5.37 56 3.6 0.16 (33 ) 0.1 0.03
Consumer 2,722 76.7 11.21 2,918 82.9 11.43 2,918 86.5 11.77 (196 ) (6.2 ) (0.22 ) (196 ) (9.8 ) (0.56 )
Auto 3,006 68.6 9.08 2,957 66.0 8.98 2,867 68.2 9.44 49 2.6 0.10 139 0.4 (0.36 )
Lease financing 1,122 17.1 6.08 1,082 16.1 5.97 1,004 15.1 6.03 40 1.0 0.11 118 2.0 0.05
Total loans 28,543 441.6 6.16 28,280 439.2 6.24 26,892 466.1 6.89 263 2.4 (0.08 ) 1,651 (24.5 ) (0.73 )
Total interest earning assets $ 59,880 $ 559.1 3.72 % $ 55,636 $ 550.7 3.98 % $ 47,509 $ 625.6 5.24 % $ 4,244 $ 8.4 (0.26 )% $ 12,371 $ (66.5 ) (1.52 )%
Allowance for credit losses - loan portfolio (923 ) (926 ) (532 ) 3 (391 )
Allowance for credit losses - investment securities (13 ) (13 ) — — (13 )
Other non-interest earning assets 4,176 4,100 3,964 76 212
Total average assets $ 63,120 $ 58,797 $ 50,941 $ 4,323 $ 12,179
Liabilities and Stockholders’ Equity:
Interest bearing deposits:
NOW and money market $ 21,225 $ 9.1 0.17 % $ 19,392 $ 11.6 0.24 % $ 15,958 $ 37.7 0.94 % $ 1,833 $ (2.5 ) (0.07 )% $ 5,267 $ (28.6 ) (0.77 )%
Savings 13,103 8.3 0.25 11,856 10.2 0.35 10,241 11.8 0.46 1,247 (1.9 ) (0.10 ) 2,862 (3.5 ) (0.21 )
Time deposits 7,810 20.2 1.03 8,730 21.0 0.97 7,829 29.3 1.48 (920 ) (0.8 ) 0.06 (19 ) (9.1 ) (0.45 )
Total interest-bearing deposits 42,138 37.6 0.35 39,978 42.8 0.43 34,028 78.8 0.92 2,160 (5.2 ) (0.08 ) 8,110 (41.2 ) (0.57 )
Borrowings 1,358 14.6 4.31 1,336 14.9 4.48 1,440 16.2 4.51 22 (0.3 ) (0.17 ) (82 ) (1.6 ) (0.20 )
Total interest-bearing liabilities 43,496 52.2 0.48 41,314 57.7 0.56 35,468 95.0 1.06 2,182 (5.5 ) (0.08 ) 8,028 (42.8 ) (0.58 )
Net interest spread 3.24 % 3.42 % 4.18 % (0.18 )% (0.94 )%
Non-interest bearing deposits 12,806 11,006 8,794 1,800 4,012
Other liabilities 1,435 1,203 926 232 509
Stockholders’ equity 5,383 5,274 5,753 109 (370 )
Total average liabilities and stockholders’ equity $ 63,120 $ 58,797 $ 50,941 $ 4,323 $ 12,179
Net interest income / margin on a taxable equivalent basis<br>(Non-GAAP) $ 506.9 3.37 % $ 493.0 3.56 % $ 530.6 4.45 % $ 13.9 (0.19 )% ($ 23.7 ) (1.08 )%
Taxable equivalent adjustment 45.8 42.1 53.7 3.7 (7.9 )
Net interest income / margin non-taxable equivalent basis<br>(GAAP) $ 461.0 3.06 % $ 450.9 3.25 % $ 476.9 4.00 % $ 10.1 (0.19 )% ($ 15.9 ) (0.94 )%

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)

Nine months ended
30-Sep-20 30-Sep-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 $ 26,497 $ 364.7 1.84 % $ 19,691 $ 450.4 3.06 % $ 6,806 ($ 85.7 ) (1.22 )%
Loans not covered under loss-sharing agreements with the FDIC:
Commercial 13,122 522.1 5.31 12,137 562.4 6.20 985 (40.3 ) (0.89 )
Construction 909 39.6 5.83 807 40.4 6.69 102 (0.8 ) (0.86 )
Mortgage 7,054 281.2 5.32 7,125 286.3 5.36 (71 ) (5.1 ) (0.04 )
Consumer 2,916 248.9 11.40 2,865 254.6 11.88 51 (5.7 ) (0.48 )
Auto 2,985 202.4 9.06 2,807 203.5 9.69 178 (1.1 ) (0.63 )
Lease financing 1,092 49.5 6.04 973 44.2 6.06 119 5.3 (0.02 )
Total loans 28,078 1,343.7 6.39 26,714 1,391.4 6.96 1,364 (47.7 ) (0.57 )
Total interest earning assets $ 54,575 $ 1,708.4 4.18 % $ 46,405 $ 1,841.8 5.30 % $ 8,170 ($ 133.4 ) (1.12 )%
Allowance for credit losses - loan portfolio (886 ) (553 ) (333 )
Allowance for credit losses - investment securities (13 ) — (13 )
Other non-interest earning assets 4,100 3,944 156
Total average assets $ 57,776 $ 49,796 $ 7,980
Liabilities and Stockholders’ Equity:
Interest bearing deposits:
NOW and money market $ 18,956 $ 45.9 0.32 % $ 14,994 $ 110.7 0.99 % $ 3,962 ($ 64.8 ) (0.67 )%
Savings 11,899 30.2 0.34 10,053 32.2 0.43 1,846 (2.0 ) (0.09 )
Time deposits 8,076 66.3 1.10 7,778 85.1 1.46 298 (18.8 ) (0.36 )
Total interest-bearing deposits 38,931 142.4 0.49 32,825 228.0 0.93 6,106 (85.6 ) (0.44 )
Borrowings 1,340 44.7 4.45 1,452 48.6 4.47 (112 ) (3.9 ) (0.02 )
Total interest-bearing liabilities 40,271 187.1 0.62 34,277 276.6 1.08 5,994 (89.5 ) (0.46 )
Net interest spread 3.56 % 4.22 % (0.66 )%
Non-interest bearing deposits 10,945 8,871 2,074
Other liabilities 1,180 993 187
Stockholders’ equity 5,380 5,655 (275 )
Total average liabilities and stockholders’ equity $ 57,776 $ 49,796 $ 7,980
Net interest income / margin on a taxable equivalent basis<br>(Non-GAAP) $ 1,521.3 3.72 % $ 1,565.2 4.51 % ($ 43.9 ) (0.79 )%
Taxable equivalent adjustment 136.3 140.9 (4.6 )
Net interest income / margin non-taxable equivalent basis<br>(GAAP) $ 1,385.0 3.39 % $ 1,424.3 4.10 % ($ 39.3 ) (0.71 )%

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table F - Mortgage Banking Activities and Other Service Fees

(Unaudited)

Mortgage Banking Activities
(In thousands) Quarters ended Variance Nine months ended Variance<br>2020 vs.<br>2019
30-Sep-20 30-Jun-20 30-Sep-19 Q3 2020<br>vs.Q2 2020 Q3 2020<br>vs.Q3 2019 30-Sep-20 30-Sep-19
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees $ 12,966 $ 9,058 $ 11,797 $ 3,908 $ 1,169 $ 32,992 $ 35,400 $ (2,408 )
Mortgage servicing rights fair value adjustments (20,491 ) (7,640 ) (4,842 ) (12,851 ) (15,649 ) (33,360 ) (25,853 ) (7,507 )
Total mortgage servicing fees, net of fair value adjustments (7,525 ) 1,418 6,955 (8,943 ) (14,480 ) (368 ) 9,547 (9,915 )
Net gain on sale of loans, including valuation on loans held-for-sale 10,916 5,487 5,421 5,429 5,495 20,389 14,695 5,694
Trading account (loss) profit:
Unrealized (losses) gains on outstanding derivative positions (4 ) 1,695 227 (1,699 ) (231 ) (4 ) — (4 )
Realized losses on closed derivative positions (1,958 ) (4,823 ) (2,111 ) 2,865 153 (8,391 ) (5,555 ) (2,836 )
Total trading account loss (1,962 ) (3,128 ) (1,884 ) 1,166 (78 ) (8,395 ) (5,555 ) (2,840 )
Losses on repurchased loans, including interest advances^[1]^ (10,955 ) — — (10,955 ) (10,955 ) (10,955 ) — (10,955 )
Total mortgage banking activities $ (9,526 ) $ 3,777 $ 10,492 $ (13,303 ) $ (20,018 ) $ 671 $ 18,687 $ (18,016 )
[1] The Corporation, from time to time, repurchases delinquent loans from its GNMA servicing portfolio, in<br>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<br>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<br>previously presented within the indemnity reserves on loans sold component of non-interest income.
--- ---
Other Service Fees
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(In thousands) Quarters ended Variance Nine months ended Variance<br>2020 vs.<br>2019
30-Sep-20 30-Jun-20 30-Sep-19 Q3 2020<br>vs.Q2 2020 Q3 2020<br>vs.Q3 2019 30-Sep-20 30-Sep-19
Other service fees:
Debit card fees $ 11,123 $ 7,082 $ 11,719 $ 4,041 $ (596 ) $ 28,442 $ 34,923 $ (6,481 )
Insurance fees 13,941 11,301 14,608 2,640 (667 ) 38,211 44,652 (6,441 )
Credit card fees 27,077 17,762 25,625 9,315 1,452 68,025 72,705 (4,680 )
Sale and administration of investment products 5,094 4,910 5,714 184 (620 ) 16,267 16,705 (438 )
Trust fees 4,886 5,546 5,193 (660 ) (307 ) 15,692 15,431 261
Other fees 7,758 5,483 8,450 2,275 (692 ) 20,099 25,231 (5,132 )
Total other service fees $ 69,879 $ 52,084 $ 71,309 $ 17,795 $ (1,430 ) $ 186,736 $ 209,647 $ (22,911 )

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table G - Loans and Deposits

(Unaudited)

Loans - Ending Balances
Variance
(In thousands) 30-Sep-20 30-Jun-20 30-Sep-19 Q3 2020<br>vs.Q2 2020 Q3 2020<br>vs.Q3 2019
Loans<br>held-in-portfolio:
Commercial $ 13,611,374 $ 13,735,082 $ 12,208,449 $ (123,708 ) $ 1,402,925
Construction 936,274 928,507 754,056 7,767 182,218
Legacy [1] 16,168 17,000 23,192 (832 ) (7,024 )
Lease financing 1,153,108 1,098,188 1,022,484 54,920 130,624
Mortgage 7,924,441 7,521,795 7,168,619 402,646 755,822
Auto 3,045,453 2,904,324 2,847,758 141,129 197,695
Consumer 2,705,692 2,865,657 2,983,417 (159,965 ) (277,725 )
Total loans<br>held-in-portfolio $ 29,392,510 $ 29,070,553 $ 27,007,975 $ 321,957 $ 2,384,535
Loans<br>held-for-sale:
Commercial $ 4,070 $ 6,778 $ — $ (2,708 ) $ 4,070
Mortgage 98,690 61,947 56,370 36,743 42,320
Total loans<br>held-for-sale $ 102,760 $ 68,725 $ 56,370 $ 34,035 $ 46,390
Total loans $ 29,495,270 $ 29,139,278 $ 27,064,345 $ 355,992 $ 2,430,925
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to<br>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) 30-Sep-20 30-Jun-20 30-Sep-19 Q3 2020 vs.<br>Q2 2020 Q3 2020 vs.Q3<br>2019
Demand deposits [1] $ 22,929,040 $ 22,731,726 $ 19,191,657 $ 197,314 $ 3,737,383
Savings, NOW and money market deposits<br>(non-brokered) 24,696,244 22,457,951 16,778,332 2,238,293 7,917,912
Savings, NOW and money market deposits (brokered) 551,770 522,929 400,049 28,841 151,721
Time deposits (non-brokered) 7,664,361 7,919,265 7,614,393 (254,904 ) 49,968
Time deposits (brokered CDs) 180,568 212,429 181,764 (31,861 ) (1,196 )
Total deposits $ 56,021,983 $ 53,844,300 $ 44,166,195 $ 2,177,683 $ 11,855,788
[1] Includes interest and non-interest bearing demand deposits.<br>
--- ---

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table H - Loan Delinquency - Puerto Rico Operations

(Unaudited)

30-Sep-20
Puerto Rico
Past due Past due 90 days or more
(In thousands) 30-59 days 60-89 days 90 days or<br>more Total past<br>due Current Loans HIP Non-accrual<br>loans Accruing<br>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
30-Jun-20
Puerto Rico
Past due Past due 90 days or more
(In thousands) 30-59 days 60-89 days 90 days or<br>more Total past<br>due Current Loans HIP Non-accrual<br>loans Accruing<br>loans
Commercial multi-family $ 1,641 $ 2,524 $ 1,368 $ 5,533 $ 142,630 $ 148,163 $ 1,368 $ —
Commercial real estate:
Non-owner occupied 24,091 4,120 108,671 136,882 1,940,018 2,076,900 108,671 —
Owner occupied 19,439 5,471 101,112 126,022 1,554,153 1,680,175 101,112 —
Commercial and industrial 5,422 15,404 43,892 64,718 4,382,221 4,446,939 42,739 1,153
Construction — — — — 176,612 176,612 — —
Mortgage 279,498 123,158 1,256,359 1,659,015 4,751,803 6,410,818 397,262 859,097
Leasing 11,386 10,355 4,751 26,492 1,071,696 1,098,188 4,751 —
Consumer:
Credit cards 9,128 15,424 17,849 42,401 934,981 977,382 — 17,849
Home equity lines of credit 14 262 6 282 4,284 4,566 — 6
Personal 20,485 13,730 34,834 69,049 1,300,646 1,369,695 34,834 —
Auto 64,977 29,813 22,111 116,901 2,787,423 2,904,324 22,111 —
Other 700 344 14,426 15,470 114,971 130,441 13,755 671
Total $ 436,781 $ 220,605 $ 1,605,379 $ 2,262,765 $ 19,161,438 $ 21,424,203 $ 726,603 $ 878,776
Variance
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Past due Past due 90 days or more
(In thousands) 30-59<br>days 60-89<br>days 90 days<br>or more Total<br>past due Current Loans HIP Non-accrual<br>loans Accruing<br>Loans
Commercial multi-family $ 1,839 $ (2,395) $ 32 $ (524) $ (3,461) $ (3,985) $ 32 $ —
Commercial real estate:
Non-owner occupied (4,568) (2,106) (9,860) (16,534) 10,776 (5,758) (9,860) —
Owner occupied (9,252) (1,248) (3,659) (14,159) (95,741) (109,900) (3,659) —
Commercial and industrial 1,387 (9,028) 1,121 (6,520) (148,667) (155,187) 1,581 (460)
Construction 4,895 — 21,514 26,409 (6,956) 19,453 21,514 —
Mortgage 57,326 (63,772) 311,145 304,699 111,463 416,162 (27,202) 338,347 ^[1]^
Leasing (3,132) (7,905) (1,534) (12,571) 67,491 54,920 (1,534) —
Consumer:
Credit cards (3,003) (9,119) (3,344) (15,466) (30,377) (45,843) — (3,344)
Home equity lines of credit 167 (262) 52 (43) (209) (252) — 52
Personal (7,319) (6,161) (5,491) (18,971) (44,939) (63,910) (5,491) —
Auto (25,090) (19,436) (8,657) (53,183) 194,312 141,129 (8,657) —
Other (510) 880 (78) 292 (6,681) (6,389) 349 (427)
Total $ 12,740 $ (120,552) $ 301,241 $ 193,429 $ 47,011 $ 240,440 $ (32,927) $ 334,168
[1] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or<br>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 $161 million in loans rebooked under the GNMA program<br>at September 30, 2020, in which issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. During the third quarter the Corporation purchased $688 million in GNMA loans of which $684<br>are included in the 90 days past due category including $324 million previously accounted under the repurchase option at June 30, 2020.
--- ---

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)

September 30, 2020
Popular U.S.
Past due Past due 90 days or more
30-59 60-89 90 days Total Non-accrual Accruing
(In thousands) days days or more past due Current Loans HIP loans loans
Commercial multi-family $ — $ — $ 1,755 $ 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
June 30, 2020
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 $ — $ 366 $ 2,097 $ 2,463 $ 1,637,996 $ 1,640,459 $ 2,097 $ —
Commercial real estate:
Non-owner occupied 1,692 5,136 397 7,225 1,945,365 1,952,590 397 —
Owner occupied 1,010 — 352 1,362 345,412 346,774 352 —
Commercial and industrial 4,441 6,061 4,392 14,894 1,428,188 1,443,082 4,392 —
Construction 23,209 9,600 — 32,809 719,086 751,895 — —
Mortgage 2,532 4,477 14,144 21,153 1,089,824 1,110,977 14,144 —
Legacy 29 83 2,001 2,113 14,887 17,000 2,001 —
Consumer:
Credit cards — — — — 26 26 — —
Home equity lines of credit 1,715 655 8,242 10,612 100,095 110,707 8,242 —
Personal 1,638 1,524 1,976 5,138 266,330 271,468 1,976 —
Other — — — — 1,372 1,372 — —
Total $ 36,266 $ 27,902 $ 33,601 $ 97,769 $ 7,548,581 $ 7,646,350 $ 33,601 $ —
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 $ — $ (366 ) $ (342 ) $ (708 ) $ 96,986 $ 96,278 $ (342 ) $ —
Commercial real estate:
Non-owner occupied (1,692 ) (5,136 ) (1 ) (6,829 ) (6,748 ) (13,577 ) (1 ) —
Owner occupied (357 ) — (10 ) (367 ) 14,719 14,352 (10 ) —
Commercial and industrial (3,889 ) (6,011 ) (491 ) (10,391 ) 64,460 54,069 (491 ) —
Construction (23,209 ) (9,600 ) 9,069 (23,740 ) 12,054 (11,686 ) 9,069 —
Mortgage (65 ) 1,956 340 2,231 (15,747 ) (13,516 ) 340 —
Legacy 12 (67 ) (641 ) (696 ) (136 ) (832 ) (641 ) —
Consumer:
Credit cards — 3 3 6 (1 ) 5 — 3
Home equity lines of credit (458 ) (304 ) (656 ) (1,418 ) (4,380 ) (5,798 ) (656 ) —
Personal 3 73 (206 ) (130 ) (37,576 ) (37,706 ) (206 ) —
Auto — — — — — — — —
Other 22 2 29 53 (125 ) (72 ) 29 —
Total $ (29,633 ) $ (19,450 ) $ 7,094 $ (41,989 ) $ 123,506 $ 81,517 $ 7,091 $ 3

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table J - Loan Delinquency - Consolidated

(Unaudited)

30-Sep-20
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 $ 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
30-Jun-20
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 $ 1,641 $ 2,890 $ 3,465 $ 7,996 $ 1,780,626 $ 1,788,622 $ 3,465 $ —
Commercial real estate:
Non-owner occupied 25,783 9,256 109,068 144,107 3,885,383 4,029,490 109,068 —
Owner occupied 20,449 5,471 101,464 127,384 1,899,565 2,026,949 101,464 —
Commercial and industrial 9,863 21,465 48,284 79,612 5,810,409 5,890,021 47,131 1,153
Construction 23,209 9,600 — 32,809 895,698 928,507 — —
Mortgage 282,030 127,635 1,270,503 1,680,168 5,841,627 7,521,795 411,406 859,097
Leasing 11,386 10,355 4,751 26,492 1,071,696 1,098,188 4,751 —
Legacy 29 83 2,001 2,113 14,887 17,000 2,001 —
Consumer:
Credit cards 9,128 15,424 17,849 42,401 935,007 977,408 — 17,849
Home equity lines of credit 1,729 917 8,248 10,894 104,379 115,273 8,242 6
Personal 22,123 15,254 36,810 74,187 1,566,976 1,641,163 36,810 —
Auto 64,977 29,813 22,111 116,901 2,787,423 2,904,324 22,111 —
Other 700 344 14,426 15,470 116,343 131,813 13,755 671
Total $ 473,047 $ 248,507 $ 1,638,980 $ 2,360,534 $ 26,710,019 $ 29,070,553 $ 760,204 $ 878,776
Variance
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Past due Past due 90 days or more
30-59 60-89 90 days Total Non-accrual Accruing
(In thousands) days days or more past due Current Loans HIP loans loans
Commercial multi-family $ 1,839 $ (2,761 ) $ (310 ) $ (1,232 ) $ 93,525 $ 92,293 $ (310 ) $ —
Commercial real estate:
Non-owner occupied (6,260 ) (7,242 ) (9,861 ) (23,363 ) 4,028 (19,335 ) (9,861 ) —
Owner occupied (9,609 ) (1,248 ) (3,669 ) (14,526 ) (81,022 ) (95,548 ) (3,669 ) —
Commercial and industrial (2,502 ) (15,039 ) 630 (16,911 ) (84,207 ) (101,118 ) 1,090 (460 )
Construction (18,314 ) (9,600 ) 30,583 2,669 5,098 7,767 30,583 —
Mortgage 57,261 (61,816 ) 311,485 306,930 95,716 402,646 (26,862 ) 338,347 ^[1]^
Leasing (3,132 ) (7,905 ) (1,534 ) (12,571 ) 67,491 54,920 (1,534 ) —
Legacy 12 (67 ) (641 ) (696 ) (136 ) (832 ) (641 ) —
Consumer:
Credit cards (3,003 ) (9,116 ) (3,341 ) (15,460 ) (30,378 ) (45,838 ) — (3,341 )
Home equity lines of credit (291 ) (566 ) (604 ) (1,461 ) (4,589 ) (6,050 ) (656 ) 52
Personal (7,316 ) (6,088 ) (5,697 ) (19,101 ) (82,515 ) (101,616 ) (5,697 ) —
Auto (25,090 ) (19,436 ) (8,657 ) (53,183 ) 194,312 141,129 (8,657 ) —
Other (488 ) 882 (49 ) 345 (6,806 ) (6,461 ) 378 (427 )
Total $ (16,893 ) $ (140,002 ) $ 308,335 $ 151,440 $ 170,517 $ 321,957 $ (25,836 ) $ 334,171
[1] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or<br>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 $161 million in loans rebooked under the GNMA program<br>at September 30, 2020, in which issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. During the third quarter the Corporation purchased $688 million in GNMA loans of which $684<br>are included in the 90 days past due category including $324 million previously accounted under the repurchase option at June 30, 2020.
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Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table K - Non-Performing Assets

(Unaudited)

Variance
(Dollars in thousands) 30-Sep-20 As a % of<br>loans HIP by<br>category 30-Jun-20 As a % of<br>loans HIP by<br>category 30-Sep-19 As a % of<br>loans HIP by<br>category Q3 2020 vs.<br>Q2 2020 Q3 2020 vs.<br>Q3 2019
Non-accrual loans:
Commercial [1] $ 248,378 1.8 % $ 261,128 1.9 % $ 169,697 1.4 % $ (12,750 ) $ 78,681
Construction 30,583 3.3 — — 10,334 1.4 30,583 20,249
Legacy [2] 1,360 8.4 2,001 11.8 2,318 10.0 (641 ) (958 )
Lease financing 3,217 0.3 4,751 0.4 2,733 0.3 (1,534 ) 484
Mortgage [1] 384,544 4.9 411,406 5.5 305,542 4.3 (26,862 ) 79,002
Auto 13,454 0.4 22,111 0.8 22,954 0.8 (8,657 ) (9,500 )
Consumer [1] 52,832 2.0 58,807 2.1 44,214 1.5 (5,975 ) 8,618
Total non-performing loans<br>held-in-portfolio 734,368 2.5 % 760,204 2.6 % 557,792 2.1 % (25,836 ) 176,576
Non-performing loans held-for-sale [3] 4,070 6,778 — (2,708 ) 4,070
Other real estate owned (“OREO”) 100,592 113,940 117,928 (13,348 ) (17,336 )
Total non-performing assets $ 839,030 $ 880,922 $ 675,720 $ (41,892 ) $ 163,310
Accruing loans past due 90 days or<br>more [4] [5] $ 1,212,947 $ 878,776 $ 476,814 $ 334,171 $ 736,133
Ratios:
Non-performing assets to total assets 1.27 % 1.40 % 1.29 %
Non-performing loans held-in-portfolio to loans held-in-portfolio 2.50 2.62 2.07
Allowance for credit losses to loans held-in-portfolio 3.15 3.16 1.90
Allowance for credit losses to non-performing loans,<br>excluding loans held-for-sale 126.07 120.81 91.86
[1] The increase in non-accrual loans during 2020 includes the initial<br>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<br>consumer loans.
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[2] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to<br>certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.
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[3] There were $4 million in non-performing commercial loans held-for-sale as of September 30, 2020, $7 million for the quarter ended June 30, 2020 and none for the quarter ended September 30, 2019.<br>
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[4] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or<br>guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. During the third quarter the Corporation purchased $688 million in<br>GNMA loans of which $684 are included in the 90 days past due category including $324 million previously accounted under the repurchase option at June 30, 2020. These include loans rebooked this quarter, which were previously pooled into<br>GNMA securities, amounting to $161 million (June 30, 2020 - $522 million; September 30, 2019 - $99 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or<br>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<br>benefited from the moratorium, the delinquency status of these loans continued to be reported to GNMA without considering the moratorium. Additionally, these balances include $318 million of residential mortgage loans insured by FHA or<br>guaranteed by the VA that are no longer accruing interest as of September 30, 2020 (June 30, 2020 - $234 million; September 30, 2019 - $241 million). Furthermore, the Corporation has approximately $60 million in reverse mortgage<br>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<br>assets (June 30, 2020 - $62 million; September 30, 2019 - $65 million).
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[5] The carrying value of loans accounted for under ASC Subtopic 310-30<br>that are contractually 90 days or more past due was $189 million at September 30, 2019. This amount is excluded from the above table as the loans’ accretable yield interest recognition is independent from the underlying contractual<br>loan delinquency status.
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Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)

Commercial loans held-in-portfolio:
Quarter ended Quarter ended
30-Sep-20 30-Jun-20
(In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc.
Beginning balance NPLs $ 253,890 $ 7,238 $ 261,128 $ 251,104 $ 7,404 $ 258,508
Plus:
New non-performing loans 20,250 12,877 33,127 14,187 1,986 16,173
Advances on existing non-performing loans — — — — 100 100
Less:
Non-performing loans transferred to OREO (39 ) — (39 ) — — —
Non-performing loans<br>charged-off (1,000 ) (452 ) (1,452 ) (1,402 ) (368 ) (1,770 )
Loans returned to accrual status / loan collections (31,117 ) (13,269 ) (44,386 ) (9,999 ) (1,884 ) (11,883 )
Ending balance NPLs $ 241,984 $ 6,394 $ 248,378 $ 253,890 $ 7,238 $ 261,128
Construction loans held-in-portfolio:
--- --- --- --- --- --- --- --- --- --- --- --- ---
Quarter ended Quarter ended
30-Sep-20 30-Jun-20
(In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc.
Beginning balance NPLs $ — $ — $ — $ — $ — $ —
Plus:
New non-performing loans 21,514 9,069 30,583 — — —
Ending balance NPLs $ 21,514 $ 9,069 $ 30,583 $ — $ — $ —
Mortgage loans held-in-portfolio:
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Quarter ended Quarter ended
30-Sep-20 30-Jun-20
(In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc.
Beginning balance NPLs $ 397,262 $ 14,144 $ 411,406 $ 404,465 $ 12,176 $ 416,641
Plus:
New non-performing loans 41,513 6,897 48,410 82,560 7,440 90,000
Advances on existing non-performing loans — 48 48 — 11 11
Less:
Non-performing loans transferred to OREO (492 ) — (492 ) (48 ) — (48 )
Non-performing loans<br>charged-off (3,738 ) (11 ) (3,749 ) (7,847 ) (7 ) (7,854 )
Loans returned to accrual status / loan collections (64,485 ) (6,594 ) (71,079 ) (81,868 ) (5,476 ) (87,344 )
Ending balance NPLs $ 370,060 $ 14,484 $ 384,544 $ 397,262 $ 14,144 $ 411,406
Total non-performing loans held-in-portfolio (excluding consumer):
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Quarter ended Quarter ended
30-Sep-20 30-Jun-20
(In thousands) BPPR Popular U.S. Popular, Inc. BPPR Popular U.S. Popular, Inc.
Beginning balance NPLs $ 651,152 $ 23,383 $ 674,535 $ 655,569 $ 21,560 $ 677,129
Plus:
New non-performing loans 83,277 28,843 112,120 96,747 9,426 106,173
Advances on existing non-performing loans — 106 106 — 137 137
Less:
Non-performing loans transferred to OREO (531 ) — (531 ) (48 ) — (48 )
Non-performing loans<br>charged-off (4,738 ) (463 ) (5,201 ) (9,249 ) (375 ) (9,624 )
Loans returned to accrual status / loan collections (95,602 ) (20,562 ) (116,164 ) (91,867 ) (7,365 ) (99,232 )
Ending balance NPLs ^[1]^ $ 633,558 $ 31,307 $ 664,865 $ 651,152 $ 23,383 $ 674,535
[1] Includes $1.4 million of NPLs related to the legacy portfolio as of September 30, 2020 (June 30, 2020<br>- $2.0 million).
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Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)

Quarter<br>ended<br>30-Sep-20 Quarter<br>ended<br>30-Jun-20 Quarter<br>ended<br>30-Sep-19
(Dollars in thousands) Total Total Total
Balance at beginning of period $ 918,434 $ 919,716 $ 543,666
Provision for credit losses 19,452 63,104 36,539
Initial allowance for credit losses - PCD Loans 4,823 567 —
942,709 983,387 580,205
Net loans charged-off:
BPPR
Commercial (1,959 ) 1,097 10,632
Construction (156 ) (195 ) (2,986 )
Lease financing (329 ) 3,390 3,453
Mortgage 1,964 7,554 12,689
Consumer 14,249 50,297 36,112
Total BPPR 13,769 62,143 59,900
Popular U.S.
Commercial 360 (897 ) 3,633
Construction — — 2,215
Legacy [1] (51 ) 113 (297 )
Mortgage (5 ) (19 ) (18 )
Consumer 2,786 3,613 2,407
Total Popular U.S. 3,090 2,810 7,940
Total loans charged-off - Popular, Inc. 16,859 64,953 67,840
Balance at end of period $ 925,850 $ 918,434 $ 512,365
POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio 0.24 % 0.92 % 1.01 %
Provision for credit losses to net charge-offs 115.38 % 97.15 % 53.86 %
BPPR
Annualized net charge-offs to average loans held-in-portfolio 0.26 % 1.20 % 1.21 %
Provision for credit losses to net charge-offs 55.79 % 97.23 % 57.56 %
Popular U.S.
Annualized net charge-offs to average loans held-in-portfolio 0.16 % 0.15 % 0.45 %
Provision for credit losses to net charge-offs 380.91 % 95.41 % 25.94 %
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to<br>certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.
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Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)

30-Sep-20
(Dollars in thousands) Commercial Construction Legacy [1] Mortgage Lease<br>financing Consumer Total
Total ACL $ 330,276 $ 12,334 $ 1,905 $ 225,338 $ 15,168 $ 340,829 $ 925,850
Total loans<br>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<br>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<br>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-Jun-20
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Commercial Construction Legacy [1] Mortgage Lease<br>financing Consumer Total
Total ACL $ 314,956 $ 6,417 $ 2,052 $ 222,237 $ 13,093 $ 359,679 $ 918,434
Total loans<br>held-in-portfolio $ 13,735,082 $ 928,507 $ 17,000 $ 7,521,795 $ 1,098,188 $ 5,769,981 $ 29,070,553
ACL to loans<br>held-in-portfolio 2.29 % 0.69 % 12.07 % 2.95 % 1.19 % 6.23 % 3.16 %
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to<br>certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. reportable segment.
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Variance
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Commercial Construction Legacy Mortgage Lease<br>financing Consumer Total
Total ACL $ 15,320 $ 5,917 $ (147 ) $ 3,101 $ 2,075 $ (18,850 ) $ 7,416
Total loans<br>held-in-portfolio $ (123,708 ) $ 7,767 $ (832 ) $ 402,646 $ 54,920 $ (18,836 ) $ 321,957

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)

30-Sep-20
Puerto Rico
(In thousands) Commercial Construction Mortgage Lease<br>financing Consumer Total
Allowance for credit losses: $ 218,448 $ 4,868 $ 203,658 $ 15,168 $ 312,376 $ 754,518
Loans<br>held-in-portfolio: 8,077,347 196,065 6,826,980 1,153,108 5,411,143 21,664,643
ACL to loans<br>held-in-portfolio: 2.70 % 2.48 % 2.98 % 1.32 % 5.77 % 3.48 %
30-Jun-20
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Puerto Rico
(In thousands) Commercial Construction Mortgage Lease<br>financing Consumer Total
Allowance for credit losses: $ 214,927 $ 354 $ 199,250 $ 13,093 $ 328,158 $ 755,782
Loans<br>held-in-portfolio: 8,352,177 176,612 6,410,818 1,098,188 5,386,408 21,424,203
ACL to loans<br>held-in-portfolio: 2.57 % 0.20 % 3.11 % 1.19 % 6.09 % 3.53 %
Variance
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(In thousands) Commercial Construction Mortgage Lease<br>financing Consumer Total
Allowance for credit losses: $ 3,521 $ 4,514 $ 4,408 $ 2,075 $ (15,782 ) $ (1,264 )
Loans<br>held-in-portfolio: (274,830 ) 19,453 416,162 54,920 24,735 240,440

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)

30-Sep-20
Popular U.S.
(In thousands) Commercial Construction Legacy Mortgage Consumer Total
Allowance for credit losses: $ 111,828 $ 7,466 $ 1,905 $ 21,680 $ 28,453 $ 171,332
Loans<br>held-in-portfolio: 5,534,027 740,209 16,168 1,097,461 340,002 7,727,867
ACL to loans<br>held-in-portfolio: 2.02 % 1.01 % 11.78 % 1.98 % 8.37 % 2.22 %
30-Jun-20
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Popular U.S.
(In thousands) Commercial Construction Legacy Mortgage Consumer Total
Allowance for credit losses: $ 100,029 $ 6,063 $ 2,052 $ 22,987 $ 31,521 $ 162,652
Loans<br>held-in-portfolio: 5,382,905 751,895 17,000 1,110,977 383,573 7,646,350
ACL to loans<br>held-in-portfolio: 1.86 % 0.81 % 12.07 % 2.07 % 8.22 % 2.13 %
Variance
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(In thousands) Commercial Construction Legacy Mortgage Consumer Total
Allowance for credit losses: $ 11,799 $ 1,403 $ (147 ) $ (1,307 ) $ (3,068 ) $ 8,680
Loans<br>held-in-portfolio: 151,122 (11,686 ) (832 ) (13,516 ) (43,571 ) 81,517

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table Q - Reconciliation to GAAP Financial Measures

(Unaudited)

(In thousands, except share or per share information) 30-Sep-20 30-Jun-20 30-Sep-19
Total stockholders’ equity $ 5,912,085 $ 5,780,165 $ 5,908,448
Less: Preferred stock (22,143 ) (22,143 ) (50,160 )
Less: Goodwill (671,122 ) (671,122 ) (671,122 )
Less: Other intangibles (23,518 ) (24,511 ) (21,479 )
Total tangible common equity $ 5,195,302 $ 5,062,389 $ 5,165,687
Total assets $ 65,910,369 $ 62,845,352 $ 52,480,415
Less: Goodwill (671,122 ) (671,122 ) (671,122 )
Less: Other intangibles (23,518 ) (24,511 ) (21,479 )
Total tangible assets $ 65,215,729 $ 62,149,719 $ 51,787,814
Tangible common equity to tangible assets 7.97 % 8.15 % 9.97 %
Common shares outstanding at end of period 84,219,464 84,184,927 96,714,664
Tangible book value per common share $ 61.69 $ 60.13 $ 53.41
Quarterly average
Total stockholders’ equity [1] $ 5,383,126 $ 5,274,071 $ 5,753,047
Less: Preferred Stock (22,143 ) (22,143 ) (50,160 )
Less: Goodwill (671,121 ) (671,121 ) (663,499 )
Less: Other intangibles (24,161 ) (25,497 ) (22,957 )
Total tangible equity $ 4,665,701 $ 4,555,310 $ 5,016,431
Return on average tangible common equity 14.32 % 11.23 % 13.00 %
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale.
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CONTACT:

Popular, Inc.

Investor Relations:

Paul Cardillo, 212-417-6721

Senior Vice President, Investor Relations Officer

or

Media Relations:

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

Senior Vice President, Corporate Communications

EX-99.2

Slide 1

Investor Presentation Third Quarter 2020 Exhibit 99.2

Slide 2

Cautionary Note Regarding Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance, are based on the current expectations of Popular, Inc.’s (the “Corporation”) management 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. Such factors include, but are not limited to, 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 the Corporation, our  customers, service providers and third parties. 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 and June 30, 2020, and our Quarterly Report on Form 10-Q for the quarter ended September 30, 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 which speak as of their respective dates.

Slide 3

Puerto Rico – Key Indicators Employment4 Nonfarm employment (March 2020): 0.6% higher than March 2019 Economy Cement Sales6 6% lower than Q2 2019 YTD: 16% below 2019 Puerto Rico BPPR 1 Source: Moody’s Analytics- April 2, 2020, June 23, 2020 and September 2020;  2 Source: El Nuevo Dia, En Marcha el Acceso de Fondos, April 20, 2020; 3 Source: Financial Oversight and Management Board for Puerto Rico, Certified 2020 Fiscal Plan for Puerto Rico (May 27, 2020), 4 Source: U.S. Bureau of Labor Statistics (Household Survey, Seasonally Adjusted); 5 Source: United Automobile Importers Group (based on units);  6 Source: Puerto Rico Economic Development Bank. Nonfarm employment: 9% lower than June 2019; 5% higher than April 2020 Q2 2020 Q1 2020 As of March 15, 45% of economy open1 Estimated 2020 GDP impact: $6.3 billion1 COVID-related stimulus:2 Federal: $5.5 - $5.9 billion P.R. government: $787 million 27% lower than Q1 2019 28% lower than Q1 2019 49% lower than Q2 2019 YTD: 38% below 2019 New Auto Sales5 Debit and Credit Card Sales ($) 5% lower than Q2 2019 YTD: 3% below 2019 2% lower than Q1 2019 Gradually reopened with most restrictions lifted by June1 Revised estimated 2020 GDP impact: $21.2 billion1 COVID-related stimulus:3 Federal: $13.9 billion P.R. government: $787 million 29% higher than Q3 2019 YTD: 2% below 2019 18% higher than Q3 2019 YTD: 21% below 2019 27% higher than Q3 2019 YTD: 7% above 2019 Q3 2020 Nonfarm employment: 8% lower than Sept. 2019; 7% higher than April 2020 Most sectors operating with some restrictions Revised estimated 2020 GDP impact: $23.7 billion1 COVID-related stimulus:3 Federal: $13.9 billion P.R. government: $787 million

Slide 4

COVID-19 Response: Highlights Customer Engagement (P.R.) Additional Initiatives 86% of total number of loans originated or $328 million are below $50,000 qualifying them for the simplified loan forgiveness process Deployed online platform for customers to request loan forgiveness We expect that the forgiveness process will be substantially completed during Q4 2020 Offering full-banking services at 94% of total branches; 91% in Puerto Rico, 100% in the Virgin Islands, New York Metro and in South Florida Broad payment relief for consumer and commercial customers Continue to strengthen return to work protocol to safely transition back on-premise; do not foresee general return to office until January 2021 Payment Protection Program 1.9 million customers as of September 2020 (increased by 93,000 since March 2020; 41,000 since June 2020) 12% growth in active online users1 since March 2020 Captured 70% of deposits in Q3 2020 and 66% of year-to-date deposits through digital channels 1 Customers who have logged on to Popular’s web and/or mobile platform in the past 30 days.

Slide 5

NPLs decreased $26 million; ratio at 2.5% NCO ratio decreased to 0.24% ACL to loans held-in-portfolio of 3.15% Credit Metrics Net income of $168 million Net interest margin: Popular, Inc. 3.06%, BPPR 3.13% Provision for credit losses of $19 million Earnings Robust capital; Common Equity Tier 1 Capital ratio of 15.9% Tangible book value per share of $61.69 compared to $60.13 in Q2 2020 Capital Q3 2020 Highlights Completed $808 million bulk mortgage repurchase transactions: $688 million of GNMA loans and $120 million of FNMA/FHLMC loans Puerto Rico customers grew by 41,000 from Q2 2020 Quarter Events

Slide 6

New York Metro: close 11 branches, maintain 27 branches South Florida: continue operating 11 branches Branches Popular Bank Branch Network Realignment Pre-tax charge of approximately $25 million; $23 million in Q4 2020 Reduce operating costs: annual savings estimated to be $13 million Expected payback in approximately 2 years Financial Impact Branches to focus on small and medium-sized businesses, embedding business bankers in the retail network Continue to grow specialty businesses: Popular Association Banking (homeowners associations), healthcare (skilled nursing and assisted living) and non-profit-organizations Strengthening digital capabilities to address changes in customer behavior Commercial Led Strategy

Slide 7

Financial Summary 7

Slide 8

Delinquencies and deferrals increased the population of serviced loans eligible for repurchase Minimize future servicing advances and sundry losses Deploy liquidity to increase interest income; expected blended yield of the portfolio of approximately 3.50% Estimated payback period of approximately six months Mortgage Repurchase Transactions 1 The GNMA repurchase transaction resulted in an increase in the mortgage portfolio of $364 million QoQ. A portion of the acquired loans amounting to $324 million were included in the prior period’s ending portfolio balance, in accordance with U.S. GAAP, due to the delinquency status of the loans and the Corporation's right but not the obligation to repurchase the assets. 2 The repurchased FNMA loans were previously sold with credit recourse and are considered Purchased Credit Deteriorated (''PCD'') at the time of repurchase. Differences due to rounding

Slide 9

Net Interest Margin Dynamics Q3 2020 FTE1 net interest margin at 3.37% Decrease in net interest margin is primarily due to the change in asset mix FTE loan yield decreased 8 basis points to 6.16% QoQ Total deposit cost decreased 7 basis points QoQ; U.S. decreased 20 basis points to 0.81% and P.R. decreased 4 basis points to 0.18% Loan Yield, Deposit Cost and NIM (FTE) Total Loans and Deposits ($ in billions) 2 Money Market and Investment Securities ($ in billions) 2 ¹ FTE stands for fully taxable-equivalent basis. Represents a non-GAAP financial measure. See the Corporation’s earnings press release, Form 10Q and Form 10k filed with the Securities and Exchange Commission for the applicable periods, for a GAAP to non-GAAP reconciliation 2 Balances are at end of period Differences due to rounding

Slide 10

Capital 1Pro-forma capital and ratios are estimated as of September 30, 2020 and do not include nine quarters of accumulated PPNR, as in previously published stress tests Differences due to rounding Robust capital levels; Common Equity Tier 1 of 15.9% Leverage ratio impacted by the high proportion of zero-risk weight assets on the balance sheet Tangible book value per share of $61.69 compared to $60.13 in Q2 2020 Targeting announcement of 2021 capital actions in April 2021 Popular regulatory capital does not include: Disallowed portion of ACL of $192 million Unrealized gain on Evertec equity stake of approximately $322 million Estimated Capital Ratios Under Current Regulatory Rules1 Capital Ratios (%)

Slide 1

COVID-19 Sensitive Segments 1 Health Care Facilities Non-Essential Retail Construction Hotels Non-Food Wholesale Commercial Real Estate (Non-Retail) Restaurant and Food Services P.R.: Mostly shopping centers (63%) and auto retail (28%). A significant portion of shopping centers owned by long term, financially strong principals U.S.: Strip malls and community centers. Active deferrals $40 million or 9% of portfolio P.R.: Mainly hospitals. Active deferrals $23M or 5% of portfolio U.S.: ~72% comprised of skilled nursing homes; diversified across operators. Active deferrals $6 million or 1% of portfolio Supported by federal funds since the onset of COVID P.R.: Only 3% of the commercial portfolio; selective project sponsors and top tier developers. Active deferrals $7 million or 3% of portfolio U.S.:96% concentrated in NY Metro P.R.: Mainly business focus, not resort destination. Continues to be impacted by limited business and leisure travel. Majority of the deferrals expired in Q3; extensions for certain borrowers in progress U.S.: Limited exposure P.R.: Mostly quick service restaurants (62%) and full-service restaurants (26%). Strong quick service restaurant sales continue U.S.: Limited exposure P.R.: 61% are non owner-occupied loans, mainly office space with stable occupancies and collection rates. Active deferrals $17 million or 1% of portfolio U.S.: 70% comprised of multifamily loans in NY and SFL with overall collection around 90%. Active deferrals $21 million or 1% of portfolio   P.R.: Diverse segment. Active deferrals $2 million or 1% of portfolio U.S.: Limited exposure Highlight 1 Considers loans held-in-portfolio for the commercial, construction and legacy portfolios in BPPR and Popular Bank (excluding PPP loans) 2 As percentage of outstanding of sensitive segment (excluding PPP loans) Outstanding 1 % of Outstanding P.R. / U.S. Undrawn Total Deferrals/Active Deferrals2 $1.6B $1.1B 12.0% $475M $1.1B $385M 71% 3% $1.6B $372M $344M $224M $3.9B 11.8% 8.6% 2.8% 2.6% 1.7% $1.2B $423M $196M $940M $359M $13M $333M $11M $179M $45M $1.7B $2.2B $165M 20% 2% $721M 5% 0.6% $6M 81% 0.1% $141M 66% 0% $148M 35% 1% $138M 31% 1% Post-COVID Downgrades2 19% 14% 10% 86% 51% 10% 17% PPP Loans P.R. / U.S. $196M $72M $79M $5M $61M $7M $31M $0.3M $123M $10M $59M $13M $6M $4M 29.4% Expired Deferrals % Current 99% 98% 100% 89% 98% 100% 98% Downgrade Period:

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COVID-19 Response: Customer Relief Program In response to the pandemic, implemented several financial relief programs such as payment deferrals, suspensions of foreclosures and other collection activity. Payment deferrals were available to all eligible consumer and mortgage customers. In Puerto Rico, these measures followed specific statutory requirements Since March 16, 2020 provided financial assistance to approximately 125,7001 retail accounts with an aggregate book value of $4.5 billion, and to 5,063 commercial accounts amounting to $4.1 billion. Total deferrals granted amounted to $8.6 billon or 29% of total loans held-in-portfolio As of September 30, 2020, 95% of the COVID-19 deferrals have expired and 95%4 of those were current Approximately, 5,915 loans amounting to $698 million, or 2% of the portfolio, have an active deferral, mainly comprised of mortgage and commercial loans in the amount of $552 million and $137 million, respectively 1 Excludes third-party mortgage portfolio serviced for others 2 As percentage of loans-held-in portfolio 3 Current refers to loans less than 29 days past due 4 Including government guaranteed loans still pending COVID related modifications, percentage of total loans and mortgage expired deferrals that were current is 93% and 78%, respectively Accounts Granted Assistance Deferrals ($B) % of Portfolio2 % of Accounts Active Deferrals Expired Deferrals % Current3 Commercial $4.1 28% 7% 0.9% 91% Residential Mortgages4 $2.8 36% 33% 7% 87% Auto Lending $0.9 28% 28% 0% 95% Lease Financing $0.4 35% 37% 0% 97% Other Consumer Loans $0.3 19% 14% 0.5% 95% Credit Cards $0.1 11% 6% 0% 97%

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Non-Performing Assets ($ in millions) Non-Performing Assets NPAs decreased by $42 million QoQ NPLs decreased by $26 million QoQ P.R. NPLs at $694 million, or 3.2% of loans, down by $33 million, driven by: Lower mortgage NPLs by $27 million Lower consumer NPLs by $14 million Lower commercial NPLs by $12 million, offset by Higher construction NPLs by $22 million, related to a single borrower U.S. NPLs at $41 million, or 0.5% of loans, driven by a single $9 million construction loan Q1 20 increase in non-accrual loans included the CECL initial impact of purchased credit impaired loans of $278 million OREOs down by $13 million due to the resumption of sales and the suspension of foreclosure activity in response to the pandemic Non-performing loans held for sale, comprised of taxi medallion loans, remained flat QoQ Differences due to rounding Non-Performing Loans ($ in millions)

Slide 14

NPL Inflows Total NPL Inflows ($ in millions) Mortgage NPL Inflows ($ in millions) Commercial, Construction and Legacy NPL Inflows ($ in millions) Beginning in Q2 2018 figures include loans previously classified as covered Differences due to rounding Total NPL inflows increased by $6 million QoQ P.R. inflows decreased by $14 million QoQ Mortgage inflows decreased by $41 million QoQ Construction NPL inflows increased by $22 million QoQ U.S. inflows increased by $19 million QoQ, mostly related to the commercial and construction portfolio

Slide 15

NCOs and NCO-to-Loan Ratio ($ in millions) Provision and Provision-to-NCO Ratio ($ in millions) Beginning in Q2 2018 figures include loans previously classified as covered Differences due to rounding Additional Credit Metrics NCOs decreased by $48 million, mostly related to lower P.R. consumer NCOs by $36 million, aided by deferrals and government stimulus. NCO ratio at 0.24% vs. 0.92% in Q2 2020 ACL increased slightly QoQ. The ACL reflects the current economic outlook using Moody’s Analytics September scenarios, as well as changes in the credit characteristics of the portfolio, including loan balances ACL-to-Loans ratio at 3.15% vs. 3.16% in Q2 2020 ACL-to-NPLs at 126% vs. 121% in Q2 2020 Provision for credit losses of the loan portfolios at $19 million for Q3 2020, down by $43 million, mostly driven by lower NCOs ACL, ACL-to-NCO and ACL-to-NPLs Ratios ($ in millions)

Slide 16

Economic Scenario: The Q3 2020 ACL used a probability weighted approach that combined Moody’s September S1 (optimistic), Baseline, and S3 (pessimistic) scenarios. The baseline scenario is assigned the highest probability followed by the S3 scenario, which accounts for most of the ACL increase. The Q2 2020 ACL utilized Moody’s Analytics June Baseline Scenario. The Q3 2020 Baseline shows higher near-term growth when compared to the Q2 2020 Baseline scenario. Allowance for Credit Losses – Q3 2020 Movement Differences due to rounding

Slide 2

17 Driving Value Recent Actions Continued to deploy liquidity: Completed $808 million bulk mortgage repurchase transactions Reallocation of investment portfolio, increasing proportion of agency mortgage backed securities Popular Bank’s branch network realignment Franchise Additional Value Investments in Evertec and Banco BHD León Puerto Rico Leading market position in Puerto Rico Focus on customer service supported by broad branch network Differentiated digital offering for retail and commercial customers Diversified fee income driven by unmatched product breadth and depth Strong risk-adjusted margins driven by de-risked and well-diversified loan portfolio Substantial liquidity with low deposit beta United States Mainland banking operation provides geographic diversification Branch footprint in key New York and South Florida MSAs National niche banking focus in homeowners associations and healthcare Evolving income streams, led by private wealth management and mortgage origination

Slide 18

Investor Presentation Third Quarter 2020 Appendix

Slide 19

Franchise Summary Corporate Structure Assets = $55 billion Assets = $10 billion Puerto Rico Operations United States Operations Assets = $66 billion Corporate Structure – Popular, Inc. Information as of September 30, 2020 ¹ Doing business as Popular Selected equity investments EVERTEC and Banco BHD León under Corporate segment and joint ventures under BPPR segment Transaction processing, business processes outsourcing 16.21% stake Adjusted EBITDA of $56 million for the quarter ended June 30, 2020 Dominican Republic bank 15.84% stake 2019 net income of $172 million PRLP 2011 Holdings, LLC Construction and commercial loans vehicle 24.90% stake PR Asset Portfolio 2013-1 International, LLC Construction, commercial loans and OREOs vehicle 24.90% stake Industry Financial services Headquarters San Juan, Puerto Rico Assets $66 billion (among top 50 BHCs in the U.S.) Loans $29 billion Deposits $56 billion Banking branches 163 in Puerto Rico, 49 in the U.S. (38 in New York and New Jersey and 11 in Florida) and 10 in the Virgin Islands NASDAQ ticker symbol BPOP Market Cap $3 billion Banco Popular de Puerto Rico Popular’s Insurance Subsidaries Popular North America, Inc. Popular Securities LLC Holding Companies (Including Equity Investments) Popular Bank 1 Popular Auto, LLC

Slide 20

Municipalities Obligations of municipalities are backed by real and personal property taxes, municipal excise taxes, and/or a percentage of the sales and use tax. Indirect exposure includes loans or securities that are payable by non-governmental entities, but which carry a government guarantee to cover any shortfall in collateral in the event of borrower default. Majority are single-family mortgage related. Indirect Exposure The Corporation does not own any loans issued by the P.R. central government or its public corporations. Our direct exposure to P.R. municipalities was $370 million, down by $59 million, from Q2 2020, mostly related to payment received on July 1, 2020 P.R. Public Sector Exposure

Slide 21

De-Risked Loan Portfolios 1 Small and Medium Enterprise 2 NCOs distribution represents the percentage allocation of net charge-offs from Q1 2008 through Q3 2020 per each loan category, excluding net charge-offs from previously covered loans up to Q2 2015 3 See detail on page 22 The Corporation has de-risked its loan portfolios by reducing its exposure to asset classes with historically high loss content In the U.S.: Limited consumer and mortgage subprime exposure. Ceased subprime lending in 2008 Construction exposure mainly in New York Metro The P.R. commercial portfolio reductions include: Commercial portfolio, including construction, has decreased from 55% of total loans held-in-portfolio to 35% Construction portfolio is down by 84% since Q4 2007 SME1 portfolio is down by 61% from Q4 2007 Collateralized exposure, auto and mortgage, now represents a larger portion of consumer loan portfolio Unsecured loan credit quality has improved as overall FICO scores have increased3 Differences due to rounding

Slide 22

FICO Mix of Consumer Originations Prior periods for personal loans and credit cards were conformed to exclude zero FICO

Slide 23

Business Segments Differences due to rounding (Unaudited) ($ in millions) Financial Results Q3 2020 Q2 2020 Variance Q3 2020 Q2 2020 Variance Net interest income 395 $ 387 $ 8 $ 77 $ 74 $ 3 $ Non-interest income 108 96 12 7 6 1 Gross revenues 503 483 20 84 80 4 Provision for credit losses – loan portfolios 8 61 (53) 12 3 9 Provision (reversal) for credit losses – investment securities - (1) 1 - - - Total provision for credit losses 8 60 (52) 12 3 9 Operating expenses 305 297 8 57 53 4 Income before income tax 190 126 64 15 24 (9) Income tax expense 36 18 18 6 7 (1) Net income 154 $ 108 $ 46 $ 9 $ 17 $ (8) $ ($ in millions) Balance Sheet Highlights Total assets 55,389 $ 51,967 $ 3,422 $ 10,221 $ 10,595 $ (374) $ Total loans 21,726 21,448 278 7,732 7,653 79 Total deposits 48,615 45,985 2,630 7,683 8,163 (480) Asset Quality Q3 2020 Q2 2020 Variance Q3 2020 Q2 2020 Variance Non-performing loans held-in-portfolio / Total loans 3.19% 3.38% (0.19)% 0.53% 0.44% 0.09% Non-performing assets / Total assets 1.43% 1.61% (0.18)% 0.45% 0.40% 0.05% Allowance for credit losses / Total loans 3.47% 3.52% (0.05)% 2.22% 2.13% 0.09% Net interest margin 3.13% 3.39% (0.26)% 3.18% 3.07% 0.11% BPPR Popular U.S. Q3 2020 Q2 2020 Variance Q3 2020 Q2 2020 Variance

Slide 24

Popular, Inc. Credit Ratings Our senior unsecured ratings have remained stable Moody’s B1 Stable Outlook Fitch BB Stable Outlook S&P BB- Stable Outlook February Moody’s changes outlook to stable from negative April S&P upgrades to BB- from B+ revised outlook to stable 2017 February S&P placed BPOP on credit watch negative due to the general economic environment in Puerto Rico 2015 May Moody’s, as part of a recalibration of their bank rating model, upgraded BPOP from B2 to B1 with a stable outlook July On 7/10 S&P affirmed BPOP’s rating while maintaining a negative outlook March Moody’s placed BPOP on review for possible upgrade due to a change in their bank rating methodology September Moody’s downgraded BPOP to B2; outlook negative 2016 April S&P revised outlook to positive October Fitch and S&P change outlook to negative from stable 2018 May Fitch revised outlook to stable 2019 April Moody's upgrades to B1 from B2 S&P revised outlook to positive May Fitch upgrades to BB from BB- 2020 March S&P lowers outlook to stable

Slide 25

Investor Presentation Third Quarter 2020

EX-99.3

Exhibit 99.3

LOGO

Popular Bank Implements Branch Realignment in the New York Metro Region to Enhance Focus

on Communities and Small Business Support

SAN JUAN, Puerto Rico – October 28, 2020 – Popular, Inc. (“Popular”) (NASDAQ: BPOP), bank holding company of Popular Bank, today announced Popular Bank’s strategic realignment of its New York Metro branch network. As part of the realignment, select branches of Popular Bank will be consolidated, resulting in 11 branch closures.

Popular Bank conducted a detailed review and analysis of its current network, including its usage, proximity to additional Popular Bank branches, the needs of customers and accessibility to supplemental services. The branch closures, which are expected to be completed simultaneously by January 29, 2021, are projected to reduce annual operating expenses by approximately $13 million.

“Popular is committed to meeting the needs of our customers and communities, guided by our 127-year legacy. This realignment in our New York Metro market is consistent with our small business and retail services model in South Florida,” said Popular, Inc. President and CEO Ignacio Alvarez. “We are confident that this repositioning will improve the performance of Popular Bank as we continue to meet the growing and diverse needs of our customers, employees and communities throughout our markets.”

This realignment aims to better leverage resources to support small businesses, meet changing customer needs and reinvest in communities. To this end, it focuses resources on remaining branch locations to pursue local opportunities and deliver banking services and solutions to meet the unique needs of the communities. This initiative will also enable ongoing investments in digital capabilities as Popular Bank continues to meet rising customer adoption of digital service channels. Popular Bank will also bolster and enhance products and services to meet the needs of its consumers and small businesses, including the addition of business bankers to remaining branches to meet commercial and small business banking demand.

“Popular Bank is optimizing its resources to better support the changing customer experience and enhance our offering to consumers and small businesses. Our branch network will continue to play a critical role as we focus resources towards local opportunities and community reinvestment,” said Popular Bank Chief Operating Officer Manuel Chinea. “Over the last several years we have also been working very closely with the not-for-profit sector, providing them financial services in support of their missions. We look forward to continue collaborating actively with this important sector.”

Total expenses associated with the branch closures are anticipated to be approximately $24.5 million, of which $23.1 million are expected to be recognized in the fourth quarter of 2020. The expenses include a pre-tax charge of approximately $2.4 million in costs associated with severance and related benefit costs for the 83 impacted employees. The total cost of the branch consolidations is expected to be earned back through expense reductions in approximately two years.

Popular Bank will maintain a presence in most of its current communities, with 27 branches located throughout New York in Brooklyn, Bronx, Manhattan, and Queens, as well as in northern New Jersey. Of the 11 branches closing, eight are within two miles of another Popular Bank branch. Customers will continue to have access to Popular’s digital banking tools, as well as the 55,000 ATMs within the AllPoint Network^1^ across the United States. They will also benefit from an enhanced commercial and small business customer experience as Popular Bank reinvests in infrastructure. Popular Bank will continue to provide support to all communities and maintain 65% of its New York metro footprint in low – and moderate-income (LMI) areas.

For more information regarding the branch closures, please visit www.popularbank.com/branch-news**.**

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.

Cautionary Note RegardingForward-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 Popular’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 Popular’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 Popular’s future results and financial condition is included in our Annual Report on Form 10-K for the year ended December 31, 2019 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020 filed with the Securities and Exchange Commission. Our filings are available on Popular’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). Popular assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.

^1^Popular Bank and its affiliates are not affiliated with ATM National, LLC. Allpoint is a registered Trademark of ATM National, LLC.

Copyright^©^ 2020 Popular Bank. Member FDIC.

Contacts

Popular, Inc.

Investor Relations:

Paul J. Cardillo

(212) 417-6721

pcardillo@popular.com

Investor Relations Officer

Media Relations:

Teruca Rullan

(917) 679-3596

teruca.rullan@popular.com

Senior Vice President of Corporate Communications

or

New York Metro

Nicole Siciliano

(631) 806-7742

nsiciliano@popular.com

Corporate Communications Officer

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