EX-99.1 2 d740485dex991.htm EX-99.1

Exhibit 99.1

Popular, Inc. Announces Second Quarter 2019 Financial Results

| • |  | Net income of $171.1 million in Q2 2019, compared to net income of $167.9 million in Q1 2019.

| • |  | Net interest margin of 4.11% in Q2 2019, compared to 4.20% in Q1 2019.

| • |  | Credit Quality:

| • |  | Non-performing loans held-in-portfolio (“NPLs”) decreased by $21.8 million from Q1 2019; NPLs to loans ratio at 2.1% vs. 2.2% in Q1 2019;

| • |  | Net charge-offs (“NCOs”) decreased by $13.4 million from Q1 2019; NCOs at 0.71% of average loans held-in-portfolio vs. 0.92% in Q1 2019;

| • |  | Allowance for loan losses to loans held-in-portfolio at 2.01% vs. 2.07% in Q1 2019; and

| • |  | Allowance for loan losses to NPLs at 96.3% vs. 93.9% in Q1 2019.

| • |  | Common Equity Tier 1 ratio of 16.80%, Common Equity per Share of $58.63 and Tangible Book Value per Share of $51.44 at June 30, 2019.

SAN JUAN, Puerto Rico — (BUSINESS WIRE) — Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $171.1 million for the quarter ended June 30, 2019, compared to net income of $167.9 million for the quarter ended March 31, 2019.

Ignacio Alvarez, President and Chief Executive Officer, said: “I am pleased to report that we had a strong second quarter, with increases in net interest income, non-interest income, loans and deposits. Our results were driven by robust activity in our P.R. business, which showed growth in credit and debit card activity, continued strength in our auto business and increased mortgage loan originations. Additionally, our U.S. business achieved loan growth after a slow start to the year. Our credit quality metrics continued their positive progression, with reduction in non-performing loans and net charge-offs. While we are closely monitoring the P.R. macro environment and how it may be impacted by recent political events on the Island, we enter the second half of the year with strong momentum.”

Earnings Highlights

(Unaudited) |  | Quarters ended |  |  | Six months ended |
(Dollars in thousands, except per share information) |  | 30-Jun-19 |  |  | 31-Mar-19 |  |  | 30-Jun-18 |  |  | 30-Jun-19 |  |  | 30-Jun-18 |
Net interest income |  | $ | 476,316 |  |  | $ | 470,963 |  |  | $ | 414,136 |  |  | $ | 947,279 |  |  | $ | 807,183 |
Provision for loan losses |  |  | 40,191 |  |  |  | 41,825 |  |  |  | 60,054 |  |  |  | 82,016 |  |  |  | 129,387 |
Provision for loan losses - covered loans [1] |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,730 |
Net interest income after provision for loan losses |  |  | 436,125 |  |  |  | 429,138 |  |  |  | 354,082 |  |  |  | 865,263 |  |  |  | 676,066 |
FDIC loss-share income |  |  | — |  |  |  | — |  |  |  | 102,752 |  |  |  | — |  |  |  | 94,725 |
Other non-interest income |  |  | 138,326 |  |  |  | 136,430 |  |  |  | 132,057 |  |  |  | 274,756 |  |  |  | 253,581 |
Operating expenses |  |  | 363,015 |  |  |  | 347,420 |  |  |  | 337,668 |  |  |  | 710,435 |  |  |  | 659,670 |
Income before income tax |  |  | 211,436 |  |  |  | 218,148 |  |  |  | 251,223 |  |  |  | 429,584 |  |  |  | 364,702 |
Income tax expense (benefit) |  |  | 40,330 |  |  |  | 50,223 |  |  |  | (28,560 | ) |  |  | 90,553 |  |  |  | (6,405 | )
Net income |  | $ | 171,106 |  |  | $ | 167,925 |  |  | $ | 279,783 |  |  | $ | 339,031 |  |  | $ | 371,107 |
Net income applicable to common stock |  | $ | 170,175 |  |  | $ | 166,994 |  |  | $ | 278,852 |  |  | $ | 337,169 |  |  | $ | 369,245 |
Net income per common share - basic |  | $ | 1.77 |  |  | $ | 1.69 |  |  | $ | 2.74 |  |  | $ | 3.46 |  |  | $ | 3.63 |
Net income per common share - diluted |  | $ | 1.76 |  |  | $ | 1.69 |  |  | $ | 2.73 |  |  | $ | 3.45 |  |  | $ | 3.62 |

[1] | Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that were covered under the terminated FDIC Shared-Loss Agreements.

Net interest income

Net interest income for the quarter ended June 30, 2019 was $476.3 million, compared to $471.0 million for the previous quarter. The net interest margin was 4.11% for the quarter, compared to 4.20% for the previous quarter.

The increase of $5.3 million in net interest income is mainly the result of the approximately $3.8 million positive impact of one more day in the second quarter. Significant variances were:

| • |  | Higher income from money market, trading and investments by $6.5 million due to higher volume, mostly driven by an increase in deposits at Banco Popular de Puerto Rico (“BPPR”);

| • |  | Higher income from the commercial loan portfolio by $3.4 million, mainly due to higher loan volume at Popular Bank (“Popular U.S.” or “PB”); and

| • |  | Higher income from the consumer loan portfolio by $2.5 million, due to higher volume in the BPPR segment driven primarily by originations through BPPR’s Eloan channel and acquired loans in the U.S.

Partially offset by:

| • |  | Higher cost of interest-bearing deposits by $7.7 million or 5 basis points due to higher average balance in all deposit categories, predominantly in the public sector, retail and corporate deposits in P.R. and digital channel deposits in the U.S. The increase in deposit costs was driven by the cost of public sector deposits in P.R and digital channel deposits in the U.S.

BPPR’s net interest income amounted to $411.5 million for the quarter ended June 30, 2019, compared to $407.4 million in the previous quarter. The increase of $4.1 million in net interest income was mainly due to higher volume of investment securities driven by a higher volume of deposits, as discussed above. This was partially offset by an increase of 4 basis points in the cost of interest-bearing deposits, mainly on public sector deposits, as explained above. The net interest margin for the second quarter of 2019 was 4.37%, a decrease of 12 basis points when compared to 4.49% for the previous quarter. The decrease in net interest margin was due to higher volume of investment securities, which carry a lower yield, a lower discount amortization of the portfolio acquired in the Reliable Transaction and a higher cost of deposits. BPPR’s earning assets yielded 4.98%, compared to 5.07% in the previous quarter, while the cost of interest-bearing deposits was 0.83%, or 4 basis points higher than the 0.79% reported in the previous quarter. Total cost of deposits for the quarter was 0.64%, compared to 0.60% reported in the first quarter of 2019. The impact of one more day in the quarter represented approximately $3.2 million in additional net interest income at BPPR.

Net interest income for Popular U.S. was $74.6 million, for the quarter ended June 30, 2019, compared to $72.8 million during the previous quarter. The increase of $1.8 million in net interest income was primarily due to higher volume of average loans by $175 million mainly commercial loans, partially offset by a higher cost of deposits. Net interest margin for the quarter increased 3 basis points to 3.43%, compared to 3.40% for the previous quarter. Earning assets yielded 4.71%, compared to 4.61% in the previous quarter, while the cost of interest-bearing deposits was 1.59%, compared to 1.51% in the previous quarter. The impact of one more day in the quarter represented approximately $0.6 million in additional net interest income at PB.

Non-interest income

Non-interest income increased by $1.9 million to $138.3 million for the quarter ended June 30, 2019, compared to $136.4 million for the quarter ended March 31, 2019. The increase in non-interest income was primarily driven by:

| • |  | Higher service charges on deposit accounts by $0.9 million, mainly at BPPR, due to higher fees on transactional cash management services;

| • |  | higher other service fees by $9.7 million due to higher debit and credit card interchange fees by $3.8 million as a result of higher transactional volumes, higher insurance fees mainly due to $3.5 million in contingency commissions received during the quarter, and higher trust service fees;

| • |  | favorable variance in adjustments to indemnity reserves on previously sold loans of $1.9 million due to the release of a $4.4 million reserve taken in connection with a 2013 transaction, partially offset by higher provision related to other loans previously sold with credit recourse; and

| • |  | higher other operating income by $1.8 million, principally due to higher net earnings from the portfolio of investments under the equity method.

These variances were partially offset by:

| • |  | Lower income from mortgage banking activities by $11.7 million, mainly due to a decrease in the fair value of mortgage servicing rights by $13.4 million driven in part by an increase in estimated prepayment rates and a lower earnings rate due to lower interest rates as well as the combined effect of an improvement in the early delinquency composition of the serviced portfolio resulting in lower late fees and delays in foreclosure activity; and

| • |  | lower unrealized net gains on equity securities by $0.9 million mainly on deferred compensation plans that have an offsetting expense in personnel costs.

Refer to Table B for further details.

Operating expenses

Operating expenses for the second quarter of 2019 totaled $363.0 million, an increase of $15.6 million when compared to the first quarter of 2019. The increase in operating expenses was driven primarily by:

| • |  | Higher equipment expenses by $1.6 million due to higher software and maintenance expenses;

| • |  | higher professional fees by $7.8 million mainly due to higher advisory expenses by $3.0 million related to regulatory and other Corporate initiatives, higher director compensation by $1.4 million, $1.0 million in collection, appraisals and other credit related fees and higher legal fees by $1.0 million;

| • |  | higher business promotion expenses by $4.4 million due to higher seasonal advertising costs by $1.0 million, higher consumer reward program expense by $2.0 million and higher promotion expenses and donations;

| • |  | higher credit and debit card processing, volume, interchange and other expenses by $1.7 million due to higher volume of transactions; and

| • |  | higher other operating expenses by $1.8 million due to unreimbursed claims on guaranteed mortgage loans claims receivables.

These increases were partially offset by:

| • |  | Lower personnel cost by $1.6 million due to lower commissions, incentives and other bonuses.

Full-time equivalent employees were 8,372 as of June 30, 2019, compared to 8,242 as of March 31, 2019.

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

Income taxes

For the quarter ended June 30, 2019, the Corporation recorded an income tax expense of $40.3 million, compared to $50.2 million for the previous quarter. The decrease is attributed in part to a lower taxable income and a tax benefit of approximately $6.3 million related to adjustments pertaining to periods that the statute of limitations has expired.

The effective tax rate (“ETR”) for the second quarter of 2019 was 19%. Excluding the positive adjustment discussed above the ETR for the quarter was of 22%. The ETR of the Corporation is impacted by the composition and source of its taxable income. For the year 2019, the Corporation expects its consolidated effective tax rate to be within a range from 22-24%.

Credit Quality

During the second quarter of 2019, the Puerto Rico segment continued to reflect positive credit quality trends. Non-performing loans (“NPLs”) continued to improve, and net charge-offs were at 0.75% of the portfolio. The credit quality metrics of our U.S. operation also remained favorable. The Corporation continues to be attentive to the performance of its portfolios and related credit metrics. The following presents credit quality results for the second quarter of 2019.

| • |  | Inflows of NPLs held-in-portfolio, excluding consumer loans, remained stable, decreasing by $3.5 million quarter-over-quarter, primarily related to lower P.R. commercial inflows. P.R. mortgage inflows for the quarter remained stable, mainly driven by lower early delinquencies.

| • |  | Total non-performing loans held-in-portfolio decreased by $21.8 million from the first quarter of 2019, mainly driven by lower P.R. commercial NPLs of $17.2 million, primarily related to loan collections. P.R. mortgage NPLs continued to gradually improve, decreasing by $8.8 million from the first quarter of 2019. At June 30, 2019, the ratio of NPLs to total loans held-in-portfolio was 2.1%, compared to 2.2% in the first quarter of 2019.

| • |  | Net charge-offs decreased by $13.4 million from the first quarter of 2019, primarily driven by lower P.R. commercial NCOs of $16.4 million, as the prior quarter included a charge-off from a single large relationship. In addition, P.R. mortgage NCOs were lower by $2.5 million when compared to the prior quarter. The Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.71%, compared to 0.92% in the first quarter of 2019. Refer to Table J for further information on net charge-offs and related ratios.

| • |  | The allowance for loan and lease losses (“ALLL”) decreased by $7.0 million from the first quarter of 2019 to $543.7 million. The P.R. segment ALLL decreased by $8.2 million, principally due to improvements in the mortgage portfolio.

| • |  | The general and specific reserves totaled $443.6 million and $100.0 million, respectively, at quarter-end, compared with $448.7 million and $101.9 million, respectively, as of March 31, 2019. The ratio of the allowance for loan losses to loans held-in-portfolio was 2.01% in the second quarter of 2019, compared to 2.07% in the previous quarter. The ratio of the allowance for loan losses to NPLs held-in-portfolio stood at 96.3% compared to 93.9% in the previous quarter.

| • |  | The provision for loan losses for the second quarter of 2019 remained essentially flat at $40.2 million. The provision to net charge-offs ratio was 85.2% in the second quarter of 2019, compared to 69.1% in the previous quarter.

Non-Performing Assets

(Unaudited) |  |  |  |  |  |  |  |  |
(In thousands) |  | 30-Jun-19 |  |  | 31-Mar-19 |  |  | 30-Jun-18 |
Total non-performing loans held-in-portfolio |  | $ | 564,358 |  |  | $ | 586,202 |  |  | $ | 643,199 |
Other real estate owned (“OREO”) |  |  | 118,851 |  |  |  | 125,478 |  |  |  | 142,063 |
Total non-performing assets |  | $ | 683,209 |  |  | $ | 711,680 |  |  | $ | 785,262 |
Net charge-offs for the quarter |  | $ | 47,153 |  |  | $ | 60,545 |  |  | $ | 57,614 |
Ratios: |  |  |  |  |  |  |  |  |
Loans held-in-portfolio |  | $ | 27,005,745 |  |  | $ | 26,647,708 |  |  | $ | 24,608,516 |
Non-performing loans held-in-portfolio to loans held-in-portfolio |  |  | 2.09 | % |  |  | 2.20 | % |  |  | 2.61 | %
Allowance for loan losses to loans held-in-portfolio |  |  | 2.01 |  |  |  | 2.07 |  |  |  | 2.61 |
Allowance for loan losses to non-performing loans, excluding loans held-for-sale |  |  | 96.33 |  |  |  | 93.93 |  |  |  | 99.97 |

Refer to Table H for additional information.

Provision for Loan Losses

(Unaudited) |  | Quarters ended |  |  | Six months ended |
(In thousands) |  | 30-Jun-19 |  |  | 31-Mar-19 |  |  | 30-Jun-18 |  |  | 30-Jun-19 |  |  | 30-Jun-18 |
Provision for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BPPR |  | $ | 28,975 |  |  | $ | 31,454 |  |  | $ | 44,405 |  |  | $ | 60,429 |  |  | $ | 101,123 |
Popular U.S. |  |  | 11,216 |  |  |  | 10,371 |  |  |  | 15,649 |  |  |  | 21,587 |  |  |  | 28,264 |
Total provision for loan losses - non-covered loans |  | $ | 40,191 |  |  | $ | 41,825 |  |  | $ | 60,054 |  |  | $ | 82,016 |  |  | $ | 129,387 |
Provision for loan losses - covered loans |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,730 |
Total provision for loan losses |  | $ | 40,191 |  |  | $ | 41,825 |  |  | $ | 60,054 |  |  | $ | 82,016 |  |  | $ | 131,117 |

Credit Quality by Segment

(Unaudited) |  |  |  |  |  |  |  |  |
(In thousands) |  | Quarters ended |
BPPR |  | 30-Jun-19 |  |  | 31-Mar-19 |  |  | 30-Jun-18 |
Provision for loan losses |  | $ | 28,975 |  |  | $ | 31,454 |  |  | $ | 44,405 |
Net charge-offs |  |  | 37,167 |  |  |  | 54,229 |  |  |  | 44,465 |
Total non-performing loans held-in-portfolio |  |  | 522,525 |  |  |  | 544,992 |  |  |  | 589,838 |
Allowance / loans held-in-portfolio |  |  | 2.38 | % |  |  | 2.42 | % |  |  | 3.14 | %
|  | Quarters ended |
Popular U.S. |  | 30-Jun-19 |  |  | 31-Mar-19 |  |  | 30-Jun-18 |
Provision for loan losses |  | $ | 11,216 |  |  | $ | 10,371 |  |  | $ | 15,649 |
Net charge-offs |  |  | 9,986 |  |  |  | 6,316 |  |  |  | 13,149 |
Total non-performing loans held-in-portfolio |  |  | 41,833 |  |  |  | 41,210 |  |  |  | 53,361 |
Allowance / loans held-in-portfolio |  |  | 0.97 | % |  |  | 1.00 | % |  |  | 1.16 | %

Financial Condition Highlights

(Unaudited) |  |  |
(In thousands) |  | 30-Jun-19 |  |  | 31-Mar-19 |  |  | 30-Jun-18 |
Cash and money market investments |  | $ | 3,563,819 |  |  | $ | 5,190,692 |  |  | $ | 9,029,010 |
Investment securities |  |  | 17,038,098 |  |  |  | 13,839,874 |  |  |  | 10,847,601 |
Loans |  |  | 27,005,745 |  |  |  | 26,647,708 |  |  |  | 24,608,516 |
Total assets |  |  | 50,617,221 |  |  |  | 48,680,607 |  |  |  | 47,535,177 |
Deposits |  |  | 42,059,837 |  |  |  | 40,879,838 |  |  |  | 39,377,561 |
Borrowings |  |  | 1,604,670 |  |  |  | 1,377,401 |  |  |  | 1,869,774 |
Total liabilities |  |  | 44,897,387 |  |  |  | 43,240,547 |  |  |  | 42,245,516 |
Stockholders’ equity |  |  | 5,719,834 |  |  |  | 5,440,060 |  |  |  | 5,289,661 |

Total assets increased by $1.9 billion from the first quarter of 2019, driven by:

| • |  | An increase of $3.2 billion in debt securities available-for-sale mainly due to purchases of mortgage-backed securities and U.S. Treasury securities at BPPR; and

| • |  | An increase of $0.4 billion in loans held-in-portfolio, mainly driven by the growth of auto loans and leases at the BPPR segment coupled with an increase at PB across its portfolios;

Partially offset by:

| • |  | A net decrease of $1.6 billion in cash and money market investments, mainly due to purchases of available-for-sale debt securities.

Total liabilities increased by $1.6 billion from the first quarter of 2019, mainly due to:

| • |  | An increase of $1.2 billion in deposits mainly in Puerto Rico public sector deposits at BPPR;

| • |  | An increase of $0.2 billion in other short-term borrowings due to Federal Home Loan Bank advances at PB; and

| • |  | An increase of $0.2 billion in other liabilities due to unsettled purchases of securities transactions.

Stockholders’ equity increased by approximately $0.3 billion from the first quarter of 2019, principally due to the net income for the quarter of $0.2 billion and higher unrealized gains on debt securities available-for-sale by $0.1 million.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.80%, $58.63 and $51.44, respectively, at June 30, 2019, compared to 16.39%, $55.78 and $48.58 at March 31, 2019. Refer to Table A for capital ratios.

Simplifications to the Capital Rule Pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996

On July 9, 2019, the federal banking regulatory agencies issued a final rule that simplified several requirements in the agencies’ regulatory capital rules. These simplification rules, effective on April 1, 2020, alleviate the limitations to the amount of mortgage servicing assets and certain deferred tax assets allowed as CET1 and increase the risk weight for the portion of the deferred tax assets included as a component of CET1 from 100% to 250%, among other provisions. As a result of these rules, the Corporation’s risk-based capital ratios are expected to decrease driven by the change in risk weighting. On a pro forma basis as of June 30, 2019, the impact would have been a reduction of approximately 55 bps.

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 and new accounting standards on the Corporation’s financial condition and results of operations. 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, 2018, our Form 10-Q for the quarter ended March 31, 2019 and in our Form 10-Q for the quarter ended June 30, 2019 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. 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 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, July 24, 2019 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 a 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 Friday, August 23, 2019. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10132930.

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

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table A - Selected Ratios and Other Information

Table B - Consolidated Statement of Operations

Table C - Consolidated Statement of Financial Condition

Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER

Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE

Table F - Mortgage Banking Activities and Other Service Fees

Table G - Loans and Deposits

Table H - Non-Performing Assets

Table I - Activity in Non-Performing Loans

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

Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED

Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS

Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - POPULAR U.S. OPERATIONS

Table N - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to Second Quarter 2019 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

|  | Quarters ended |  |  | Six months ended |
|  | 30-Jun-19 |  |  | 31-Mar-19 |  |  | 30-Jun-18 |  |  | 30-Jun-19 |  |  | 30-Jun-18 |
Basic EPS |  | $ | 1.77 |  |  | $ | 1.69 |  |  | $ | 2.74 |  |  | $ | 3.46 |  |  | $ | 3.63 |
Diluted EPS |  | $ | 1.76 |  |  | $ | 1.69 |  |  | $ | 2.73 |  |  | $ | 3.45 |  |  | $ | 3.62 |
Average common shares outstanding |  |  | 96,305,118 |  |  |  | 98,581,743 |  |  |  | 101,892,402 |  |  |  | 97,437,141 |  |  |  | 101,794,914 |
Average common shares outstanding - assuming dilution |  |  | 96,457,448 |  |  |  | 98,758,898 |  |  |  | 102,031,955 |  |  |  | 97,591,989 |  |  |  | 101,932,477 |
Common shares outstanding at end of period |  |  | 96,703,351 |  |  |  | 96,629,891 |  |  |  | 102,296,440 |  |  |  | 96,703,351 |  |  |  | 102,296,440 |
Market value per common share |  | $ | 54.24 |  |  | $ | 52.13 |  |  | $ | 45.21 |  |  | $ | 54.24 |  |  | $ | 45.21 |
Market capitalization - (In millions) |  | $ | 5,245 |  |  | $ | 5,037 |  |  | $ | 4,625 |  |  | $ | 5,245 |  |  | $ | 4,625 |
Return on average assets |  |  | 1.38 | % |  |  | 1.40 | % |  |  | 2.40 | % |  |  | 1.39 | % |  |  | 1.64 | %
Return on average common equity |  |  | 12.31 | % |  |  | 12.17 | % |  |  | 20.84 | % |  |  | 12.24 | % |  |  | 14.10 | %
Net interest margin |  |  | 4.11 | % |  |  | 4.20 | % |  |  | 3.81 | % |  |  | 4.16 | % |  |  | 3.85 | %
Common equity per share |  | $ | 58.63 |  |  | $ | 55.78 |  |  | $ | 51.22 |  |  | $ | 58.63 |  |  | $ | 51.22 |
Tangible common book value per common share (non-GAAP) [1] |  | $ | 51.44 |  |  | $ | 48.58 |  |  | $ | 44.78 |  |  | $ | 51.44 |  |  | $ | 44.78 |
Tangible common equity to tangible assets (non-GAAP) [1] |  |  | 9.96 | % |  |  | 9.78 | % |  |  | 9.77 | % |  |  | 9.96 | % |  |  | 9.77 | %
Tier 1 capital |  |  | 16.80 | % |  |  | 16.39 | % |  |  | 17.47 | % |  |  | 16.80 | % |  |  | 17.47 | %
Total capital |  |  | 19.39 | % |  |  | 19.00 | % |  |  | 20.41 | % |  |  | 19.39 | % |  |  | 20.41 | %
Tier 1 leverage |  |  | 9.75 | % |  |  | 9.57 | % |  |  | 9.82 | % |  |  | 9.75 | % |  |  | 9.82 | %
Common Equity Tier 1 capital |  |  | 16.80 | % |  |  | 16.39 | % |  |  | 17.47 | % |  |  | 16.80 | % |  |  | 17.47 | %

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

POPULAR, INC.

Financial Supplement to Second Quarter 2019 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

|  | Quarters ended |  |  | Variance |  |  | Quarter ended |  |  | Variance |  |  | Six months ended |
(In thousands, except per share information) |  | 30-Jun-19 |  |  | 31-Mar-19 |  |  | Q2 2019 vs. Q1 2019 |  |  | 30-Jun-18 |  |  | Q2 2019 vs. Q2 2018 |  |  | 30-Jun-19 |  |  | 30-Jun-18 |
Interest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  | $ | 454,204 |  |  | $ | 447,713 |  |  | $ | 6,491 |  |  | $ | 386,277 |  |  | $ | 67,927 |  |  | $ | 901,917 |  |  | $ | 759,861 |
Money market investments |  |  | 22,534 |  |  |  | 29,220 |  |  |  | (6,686 | ) |  |  | 36,392 |  |  |  | (13,858 | ) |  |  | 51,754 |  |  |  | 58,677 |
Investment securities |  |  | 94,241 |  |  |  | 81,036 |  |  |  | 13,205 |  |  |  | 58,181 |  |  |  | 36,060 |  |  |  | 175,277 |  |  |  | 115,390 |
Total interest income |  |  | 570,979 |  |  |  | 557,969 |  |  |  | 13,010 |  |  |  | 480,850 |  |  |  | 90,129 |  |  |  | 1,128,948 |  |  |  | 933,928 |
Interest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  | 78,449 |  |  |  | 70,826 |  |  |  | 7,623 |  |  |  | 45,228 |  |  |  | 33,221 |  |  |  | 149,275 |  |  |  | 83,916 |
Short-term borrowings |  |  | 1,656 |  |  |  | 1,600 |  |  |  | 56 |  |  |  | 1,752 |  |  |  | (96 | ) |  |  | 3,256 |  |  |  | 3,765 |
Long-term debt |  |  | 14,558 |  |  |  | 14,580 |  |  |  | (22 | ) |  |  | 19,734 |  |  |  | (5,176 | ) |  |  | 29,138 |  |  |  | 39,064 |
Total interest expense |  |  | 94,663 |  |  |  | 87,006 |  |  |  | 7,657 |  |  |  | 66,714 |  |  |  | 27,949 |  |  |  | 181,669 |  |  |  | 126,745 |
Net interest income |  |  | 476,316 |  |  |  | 470,963 |  |  |  | 5,353 |  |  |  | 414,136 |  |  |  | 62,180 |  |  |  | 947,279 |  |  |  | 807,183 |
Provision for loan losses - non-covered loans |  |  | 40,191 |  |  |  | 41,825 |  |  |  | (1,634 | ) |  |  | 60,054 |  |  |  | (19,863 | ) |  |  | 82,016 |  |  |  | 129,387 |
Provision for loan losses - covered loans |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,730 |
Net interest income after provision for loan losses |  |  | 436,125 |  |  |  | 429,138 |  |  |  | 6,987 |  |  |  | 354,082 |  |  |  | 82,043 |  |  |  | 865,263 |  |  |  | 676,066 |
Service charges on deposit accounts |  |  | 39,617 |  |  |  | 38,691 |  |  |  | 926 |  |  |  | 37,102 |  |  |  | 2,515 |  |  |  | 78,308 |  |  |  | 73,557 |
Other service fees |  |  | 74,031 |  |  |  | 64,307 |  |  |  | 9,724 |  |  |  | 62,876 |  |  |  | 11,155 |  |  |  | 138,338 |  |  |  | 123,478 |
Mortgage banking activities |  |  | (1,773 | ) |  |  | 9,926 |  |  |  | (11,699 | ) |  |  | 10,071 |  |  |  | (11,844 | ) |  |  | 8,153 |  |  |  | 22,139 |
Net gain (loss), including impairment, on equity securities |  |  | 528 |  |  |  | 1,433 |  |  |  | (905 | ) |  |  | 234 |  |  |  | 294 |  |  |  | 1,961 |  |  |  | (412 | )
Net profit (loss) on trading account debt securities |  |  | 422 |  |  |  | 260 |  |  |  | 162 |  |  |  | 21 |  |  |  | 401 |  |  |  | 682 |  |  |  | (177 | )
Adjustments (expense) to indemnity reserves on loans sold |  |  | 1,840 |  |  |  | (93 | ) |  |  | 1,933 |  |  |  | (527 | ) |  |  | 2,367 |  |  |  | 1,747 |  |  |  | (3,453 | )
FDIC loss-share income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 102,752 |  |  |  | (102,752 | ) |  |  | — |  |  |  | 94,725 |
Other operating income |  |  | 23,661 |  |  |  | 21,906 |  |  |  | 1,755 |  |  |  | 22,280 |  |  |  | 1,381 |  |  |  | 45,567 |  |  |  | 38,449 |
Total non-interest income |  |  | 138,326 |  |  |  | 136,430 |  |  |  | 1,896 |  |  |  | 234,809 |  |  |  | (96,483 | ) |  |  | 274,756 |  |  |  | 348,306 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries |  |  | 86,161 |  |  |  | 84,450 |  |  |  | 1,711 |  |  |  | 78,008 |  |  |  | 8,153 |  |  |  | 170,611 |  |  |  | 156,405 |
Commissions, incentives and other bonuses |  |  | 22,636 |  |  |  | 25,761 |  |  |  | (3,125 | ) |  |  | 20,004 |  |  |  | 2,632 |  |  |  | 48,397 |  |  |  | 41,320 |
Pension, postretirement and medical insurance |  |  | 10,406 |  |  |  | 9,761 |  |  |  | 645 |  |  |  | 9,363 |  |  |  | 1,043 |  |  |  | 20,167 |  |  |  | 19,292 |
Other personnel costs, including payroll taxes |  |  | 22,296 |  |  |  | 23,145 |  |  |  | (849 | ) |  |  | 16,957 |  |  |  | 5,339 |  |  |  | 45,441 |  |  |  | 33,167 |
Total personnel costs |  |  | 141,499 |  |  |  | 143,117 |  |  |  | (1,618 | ) |  |  | 124,332 |  |  |  | 17,167 |  |  |  | 284,616 |  |  |  | 250,184 |
Net occupancy expenses |  |  | 23,299 |  |  |  | 23,537 |  |  |  | (238 | ) |  |  | 22,425 |  |  |  | 874 |  |  |  | 46,836 |  |  |  | 45,227 |
Equipment expenses |  |  | 21,323 |  |  |  | 19,705 |  |  |  | 1,618 |  |  |  | 17,775 |  |  |  | 3,548 |  |  |  | 41,028 |  |  |  | 34,981 |
Other taxes |  |  | 12,577 |  |  |  | 11,662 |  |  |  | 915 |  |  |  | 10,876 |  |  |  | 1,701 |  |  |  | 24,239 |  |  |  | 21,778 |
Professional fees |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Collections, appraisals and other credit related fees |  |  | 4,741 |  |  |  | 3,724 |  |  |  | 1,017 |  |  |  | 4,228 |  |  |  | 513 |  |  |  | 8,465 |  |  |  | 7,286 |
Programming, processing and other technology services |  |  | 61,033 |  |  |  | 60,178 |  |  |  | 855 |  |  |  | 54,547 |  |  |  | 6,486 |  |  |  | 121,211 |  |  |  | 105,852 |
Legal fees, excluding collections |  |  | 4,446 |  |  |  | 3,489 |  |  |  | 957 |  |  |  | 4,907 |  |  |  | (461 | ) |  |  | 7,935 |  |  |  | 10,670 |
Other professional fees |  |  | 25,028 |  |  |  | 20,075 |  |  |  | 4,953 |  |  |  | 30,221 |  |  |  | (5,193 | ) |  |  | 45,103 |  |  |  | 53,080 |
Total professional fees |  |  | 95,248 |  |  |  | 87,466 |  |  |  | 7,782 |  |  |  | 93,903 |  |  |  | 1,345 |  |  |  | 182,714 |  |  |  | 176,888 |
Communications |  |  | 5,955 |  |  |  | 5,849 |  |  |  | 106 |  |  |  | 5,382 |  |  |  | 573 |  |  |  | 11,804 |  |  |  | 11,288 |
Business promotion |  |  | 19,119 |  |  |  | 14,674 |  |  |  | 4,445 |  |  |  | 16,778 |  |  |  | 2,341 |  |  |  | 33,793 |  |  |  | 28,787 |
FDIC deposit insurance |  |  | 5,278 |  |  |  | 4,806 |  |  |  | 472 |  |  |  | 7,004 |  |  |  | (1,726 | ) |  |  | 10,084 |  |  |  | 13,924 |
Other real estate owned (OREO) expenses |  |  | 1,237 |  |  |  | 2,677 |  |  |  | (1,440 | ) |  |  | 6,947 |  |  |  | (5,710 | ) |  |  | 3,914 |  |  |  | 13,078 |
Credit and debit card processing, volume, interchange and other expenses |  |  | 9,900 |  |  |  | 8,223 |  |  |  | 1,677 |  |  |  | 9,635 |  |  |  | 265 |  |  |  | 18,123 |  |  |  | 14,243 |
Other operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operational losses |  |  | 4,778 |  |  |  | 4,888 |  |  |  | (110 | ) |  |  | 9,001 |  |  |  | (4,223 | ) |  |  | 9,666 |  |  |  | 18,925 |
All other |  |  | 20,431 |  |  |  | 18,504 |  |  |  | 1,927 |  |  |  | 11,286 |  |  |  | 9,145 |  |  |  | 38,935 |  |  |  | 25,718 |
Total other operating expenses |  |  | 25,209 |  |  |  | 23,392 |  |  |  | 1,817 |  |  |  | 20,287 |  |  |  | 4,922 |  |  |  | 48,601 |  |  |  | 44,643 |
Amortization of intangibles |  |  | 2,371 |  |  |  | 2,312 |  |  |  | 59 |  |  |  | 2,324 |  |  |  | 47 |  |  |  | 4,683 |  |  |  | 4,649 |
Total operating expenses |  |  | 363,015 |  |  |  | 347,420 |  |  |  | 15,595 |  |  |  | 337,668 |  |  |  | 25,347 |  |  |  | 710,435 |  |  |  | 659,670 |
Income before income tax |  |  | 211,436 |  |  |  | 218,148 |  |  |  | (6,712 | ) |  |  | 251,223 |  |  |  | (39,787 | ) |  |  | 429,584 |  |  |  | 364,702 |
Income tax expense (benefit) |  |  | 40,330 |  |  |  | 50,223 |  |  |  | (9,893 | ) |  |  | (28,560 | ) |  |  | 68,890 |  |  |  | 90,553 |  |  |  | (6,405 | )
Net income |  | $ | 171,106 |  |  | $ | 167,925 |  |  | $ | 3,181 |  |  | $ | 279,783 |  |  | $ | (108,677 | ) |  | $ | 339,031 |  |  | $ | 371,107 |
Net income applicable to common stock |  | $ | 170,175 |  |  | $ | 166,994 |  |  | $ | 3,181 |  |  | $ | 278,852 |  |  | $ | (108,677 | ) |  | $ | 337,169 |  |  | $ | 369,245 |
Net income per common share - basic |  | $ | 1.77 |  |  | $ | 1.69 |  |  | $ | 0.08 |  |  | $ | 2.74 |  |  | $ | (0.97 | ) |  | $ | 3.46 |  |  | $ | 3.63 |
Net income per common share - diluted |  | $ | 1.76 |  |  | $ | 1.69 |  |  | $ | 0.07 |  |  | $ | 2.73 |  |  | $ | (0.97 | ) |  | $ | 3.45 |  |  | $ | 3.62 |
Dividends Declared per Common Share |  | $ | 0.30 |  |  | $ | 0.30 |  |  | $ | — |  |  | $ | 0.25 |  |  | $ | 0.05 |  |  | $ | 0.60 |  |  | $ | 0.50 |

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

(In thousands) |  | 30-Jun-19 |  |  | 31-Mar-19 |  |  | 30-Jun-18 |  |  | Variance Q2 2019 vs. Q1 2019 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 391,703 |  |  | $ | 376,558 |  |  | $ | 400,568 |  |  | $ | 15,145 |
Money market investments |  |  | 3,172,116 |  |  |  | 4,814,134 |  |  |  | 8,628,442 |  |  |  | (1,642,018 | )
Trading account debt securities, at fair value |  |  | 35,623 |  |  |  | 39,217 |  |  |  | 41,637 |  |  |  | (3,594 | )
Debt securities available-for-sale, at fair value |  |  | 16,734,722 |  |  |  | 13,542,695 |  |  |  | 10,542,010 |  |  |  | 3,192,027 |
Debt securities held-to-maturity, at amortized cost |  |  | 99,599 |  |  |  | 99,455 |  |  |  | 104,937 |  |  |  | 144 |
Equity securities |  |  | 168,154 |  |  |  | 158,507 |  |  |  | 159,017 |  |  |  | 9,647 |
Loans held-for-sale, at lower of cost or fair value |  |  | 54,028 |  |  |  | 43,985 |  |  |  | 73,859 |  |  |  | 10,043 |
Loans held-in-portfolio |  |  | 27,171,467 |  |  |  | 26,808,287 |  |  |  | 24,752,700 |  |  |  | 363,180 |
Less: Unearned income |  |  | 165,722 |  |  |  | 160,579 |  |  |  | 144,184 |  |  |  | 5,143 |
Allowance for loan losses |  |  | 543,666 |  |  |  | 550,628 |  |  |  | 643,018 |  |  |  | (6,962 | )
Total loans held-in-portfolio, net |  |  | 26,462,079 |  |  |  | 26,097,080 |  |  |  | 23,965,498 |  |  |  | 364,999 |
Premises and equipment, net |  |  | 554,614 |  |  |  | 557,517 |  |  |  | 548,432 |  |  |  | (2,903 | )
Other real estate |  |  | 118,851 |  |  |  | 125,478 |  |  |  | 142,063 |  |  |  | (6,627 | )
Accrued income receivable |  |  | 170,886 |  |  |  | 162,797 |  |  |  | 165,592 |  |  |  | 8,089 |
Mortgage servicing assets, at fair value |  |  | 153,021 |  |  |  | 167,813 |  |  |  | 164,025 |  |  |  | (14,792 | )
Other assets |  |  | 1,806,825 |  |  |  | 1,799,728 |  |  |  | 1,940,780 |  |  |  | 7,097 |
Goodwill |  |  | 671,122 |  |  |  | 671,122 |  |  |  | 627,294 |  |  |  | — |
Other intangible assets |  |  | 23,878 |  |  |  | 24,521 |  |  |  | 31,023 |  |  |  | (643 | )
Total assets |  | $ | 50,617,221 |  |  | $ | 48,680,607 |  |  | $ | 47,535,177 |  |  | $ | 1,936,614 |
Liabilities and Stockholders’ Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-interest bearing |  | $ | 8,955,304 |  |  | $ | 9,046,104 |  |  | $ | 9,392,263 |  |  | $ | (90,800 | )
Interest bearing |  |  | 33,104,533 |  |  |  | 31,833,734 |  |  |  | 29,985,298 |  |  |  | 1,270,799 |
Total deposits |  |  | 42,059,837 |  |  |  | 40,879,838 |  |  |  | 39,377,561 |  |  |  | 1,179,999 |
Assets sold under agreements to repurchase |  |  | 233,091 |  |  |  | 200,871 |  |  |  | 306,911 |  |  |  | 32,220 |
Other short-term borrowings |  |  | 160,000 |  |  |  | 42 |  |  |  | 1,200 |  |  |  | 159,958 |
Notes payable |  |  | 1,211,579 |  |  |  | 1,176,488 |  |  |  | 1,561,663 |  |  |  | 35,091 |
Other liabilities |  |  | 1,232,880 |  |  |  | 983,308 |  |  |  | 998,181 |  |  |  | 249,572 |
Total liabilities |  |  | 44,897,387 |  |  |  | 43,240,547 |  |  |  | 42,245,516 |  |  |  | 1,656,840 |
Stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock |  |  | 50,160 |  |  |  | 50,160 |  |  |  | 50,160 |  |  |  | — |
Common stock |  |  | 1,044 |  |  |  | 1,043 |  |  |  | 1,043 |  |  |  | 1 |
Surplus |  |  | 4,316,225 |  |  |  | 4,313,040 |  |  |  | 4,302,946 |  |  |  | 3,185 |
Retained earnings |  |  | 1,935,826 |  |  |  | 1,794,644 |  |  |  | 1,515,058 |  |  |  | 141,182 |
Treasury stock |  |  | (392,208 | ) |  |  | (394,848 | ) |  |  | (82,754 | ) |  |  | 2,640 |
Accumulated other comprehensive loss, net of tax |  |  | (191,213 | ) |  |  | (323,979 | ) |  |  | (496,792 | ) |  |  | 132,766 |
Total stockholders’ equity |  |  | 5,719,834 |  |  |  | 5,440,060 |  |  |  | 5,289,661 |  |  |  | 279,774 |
Total liabilities and stockholders’ equity |  | $ | 50,617,221 |  |  | $ | 48,680,607 |  |  | $ | 47,535,177 |  |  | $ | 1,936,614 |

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER

(Unaudited)

|  | Quarters ended |  |  | Variance |
|  | 30-Jun-19 |  |  | 31-Mar-19 |  |  | 30-Jun-18 |  |  | Q2 2019 vs. Q1 2019 |  |  | Q2 2019 vs. Q2 2018 |
($ amounts in millions; yields not on a taxable equivalent basis) |  | Average balance |  |  | Income / Expense |  |  | Yield / Rate |  |  | Average balance |  |  | Income / Expense |  |  | Yield / Rate |  |  | Average balance |  |  | Income / Expense |  |  | Yield / Rate |  |  | Average balance |  |  | Income / Expense |  |  | Yield / Rate |  |  | Average balance |  |  | Income / Expense |  |  | Yield / Rate |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market, trading and investment securities |  | $ | 19,664 |  |  | $ | 116.8 |  |  |  | 2.38 | % |  | $ | 18,773 |  |  | $ | 110.3 |  |  |  | 2.37 | % |  | $ | 19,257 |  |  | $ | 94.6 |  |  |  | 1.97 | % |  | $ | 891 |  |  | $ | 6.5 |  |  |  | 0.01 | % |  | $ | 407 |  |  | $ | 22.2 |  |  |  | 0.41 | %
Loans not covered under loss sharing agreements with the FDIC: |
Commercial |  |  | 12,156 |  |  |  | 181.7 |  |  |  | 5.99 |  |  |  | 12,064 |  |  |  | 178.3 |  |  |  | 5.99 |  |  |  | 11,537 |  |  |  | 166.0 |  |  |  | 5.77 |  |  |  | 92 |  |  |  | 3.4 |  |  |  | — |  |  |  | 619 |  |  |  | 15.7 |  |  |  | 0.22 |
Construction |  |  | 806 |  |  |  | 13.5 |  |  |  | 6.74 |  |  |  | 807 |  |  |  | 13.6 |  |  |  | 6.85 |  |  |  | 918 |  |  |  | 14.3 |  |  |  | 6.28 |  |  |  | (1 | ) |  |  | (0.1 | ) |  |  | (0.11 | ) |  |  | (112 | ) |  |  | (0.8 | ) |  |  | 0.46 |
Mortgage |  |  | 7,113 |  |  |  | 91.2 |  |  |  | 5.13 |  |  |  | 7,134 |  |  |  | 91.1 |  |  |  | 5.11 |  |  |  | 7,109 |  |  |  | 91.0 |  |  |  | 5.12 |  |  |  | (21 | ) |  |  | 0.1 |  |  |  | 0.02 |  |  |  | 4 |  |  |  | 0.2 |  |  |  | 0.01 |
Consumer |  |  | 2,864 |  |  |  | 85.3 |  |  |  | 11.95 |  |  |  | 2,814 |  |  |  | 82.8 |  |  |  | 11.93 |  |  |  | 2,856 |  |  |  | 82.0 |  |  |  | 11.52 |  |  |  | 50 |  |  |  | 2.5 |  |  |  | 0.02 |  |  |  | 8 |  |  |  | 3.3 |  |  |  | 0.43 |
Auto |  |  | 2,822 |  |  |  | 67.7 |  |  |  | 9.62 |  |  |  | 2,729 |  |  |  | 67.6 |  |  |  | 10.05 |  |  |  | 949 |  |  |  | 20.2 |  |  |  | 8.55 |  |  |  | 93 |  |  |  | 0.1 |  |  |  | (0.43 | ) |  |  | 1,873 |  |  |  | 47.5 |  |  |  | 1.07 |
Lease financing |  |  | 972 |  |  |  | 14.8 |  |  |  | 6.07 |  |  |  | 944 |  |  |  | 14.3 |  |  |  | 6.08 |  |  |  | 850 |  |  |  | 12.7 |  |  |  | 5.99 |  |  |  | 28 |  |  |  | 0.5 |  |  |  | (0.01 | ) |  |  | 122 |  |  |  | 2.1 |  |  |  | 0.08 |
Total loans |  |  | 26,733 |  |  |  | 454.2 |  |  |  | 6.81 |  |  |  | 26,492 |  |  |  | 447.7 |  |  |  | 6.83 |  |  |  | 24,219 |  |  |  | 386.2 |  |  |  | 6.39 |  |  |  | 241 |  |  |  | 6.5 |  |  |  | (0.02 | ) |  |  | 2,514 |  |  |  | 68.0 |  |  |  | 0.42 |
Total interest earning assets |  | $ | 46,397 |  |  | $ | 571.0 |  |  |  | 4.93 | % |  | $ | 45,265 |  |  | $ | 558.0 |  |  |  | 4.98 | % |  | $ | 43,476 |  |  | $ | 480.8 |  |  |  | 4.43 | % |  | $ | 1,132 |  |  |  | 13.0 |  |  |  | (0.05 | )% |  | $ | 2,921 |  |  | $ | 90.2 |  |  |  | 0.50 | %
Allowance for loan losses |  |  | (553 | ) |  |  |  |  |  |  |  |  |  |  | (576 | ) |  |  |  |  |  |  |  |  |  |  | (645 | ) |  |  |  |  |  |  |  |  |  |  | 23 |  |  |  |  |  |  |  |  |  |  |  | 92 |  |  |  |  |  |  |  |  |
Other non-interest earning assets |  |  | 3,931 |  |  |  |  |  |  |  |  |  |  |  | 3,938 |  |  |  |  |  |  |  |  |  |  |  | 4,019 |  |  |  |  |  |  |  |  |  |  |  | (7 | ) |  |  |  |  |  |  |  |  |  |  | (88 | ) |  |  |  |  |  |  |  |
Total average assets |  | $ | 49,775 |  |  |  |  |  |  |  |  |  |  | $ | 48,627 |  |  |  |  |  |  |  |  |  |  | $ | 46,850 |  |  |  |  |  |  |  |  |  |  | $ | 1,148 |  |  |  |  |  |  |  |  |  |  | $ | 2,925 |  |  |  |  |  |  |  |  |
Liabilities and Stockholders’ Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NOW and money market |  | $ | 14,953 |  |  | $ | 39.3 |  |  |  | 1.05 | % |  | $ | 14,051 |  |  | $ | 33.8 |  |  |  | 0.97 | % |  | $ | 12,476 |  |  | $ | 15.7 |  |  |  | 0.51 | % |  | $ | 902 |  |  | $ | 5.5 |  |  |  | 0.08 | % |  | $ | 2,477 |  |  | $ | 23.6 |  |  |  | 0.54 | %
Savings |  |  | 10,067 |  |  |  | 10.5 |  |  |  | 0.42 |  |  |  | 9,847 |  |  |  | 9.9 |  |  |  | 0.41 |  |  |  | 9,472 |  |  |  | 7.8 |  |  |  | 0.33 |  |  |  | 220 |  |  |  | 0.6 |  |  |  | 0.01 |  |  |  | 595 |  |  |  | 2.7 |  |  |  | 0.09 |
Time deposits |  |  | 7,827 |  |  |  | 28.7 |  |  |  | 1.47 |  |  |  | 7,676 |  |  |  | 27.1 |  |  |  | 1.43 |  |  |  | 7,749 |  |  |  | 21.7 |  |  |  | 1.12 |  |  |  | 151 |  |  |  | 1.6 |  |  |  | 0.04 |  |  |  | 78 |  |  |  | 7.0 |  |  |  | 0.35 |
Total interest-bearing deposits |  |  | 32,847 |  |  |  | 78.5 |  |  |  | 0.96 |  |  |  | 31,574 |  |  |  | 70.8 |  |  |  | 0.91 |  |  |  | 29,697 |  |  |  | 45.2 |  |  |  | 0.61 |  |  |  | 1,273 |  |  |  | 7.7 |  |  |  | 0.05 |  |  |  | 3,150 |  |  |  | 33.3 |  |  |  | 0.35 |
Borrowings |  |  | 1,448 |  |  |  | 16.2 |  |  |  | 4.50 |  |  |  | 1,469 |  |  |  | 16.2 |  |  |  | 4.44 |  |  |  | 1,962 |  |  |  | 21.5 |  |  |  | 4.39 |  |  |  | (21 | ) |  |  | — |  |  |  | 0.06 |  |  |  | (514 | ) |  |  | (5.3 | ) |  |  | 0.11 |
Total interest-bearing liabilities |  |  | 34,295 |  |  |  | 94.7 |  |  |  | 1.11 |  |  |  | 33,043 |  |  |  | 87.0 |  |  |  | 1.07 |  |  |  | 31,659 |  |  |  | 66.7 |  |  |  | 0.85 |  |  |  | 1,252 |  |  |  | 7.7 |  |  |  | 0.04 |  |  |  | 2,636 |  |  |  | 28.0 |  |  |  | 0.26 |
Net interest spread |  |  |  |  |  |  |  |  |  |  | 3.82 | % |  |  |  |  |  |  |  |  |  |  | 3.91 | % |  |  |  |  |  |  |  |  |  |  | 3.58 | % |  |  |  |  |  |  |  |  |  |  | (0.09 | )% |  |  |  |  |  |  |  |  |  |  | 0.24 | %
Non-interest bearing deposits |  |  | 8,868 |  |  |  |  |  |  |  |  |  |  |  | 8,953 |  |  |  |  |  |  |  |  |  |  |  | 8,966 |  |  |  |  |  |  |  |  |  |  |  | (85 | ) |  |  |  |  |  |  |  |  |  |  | (98 | ) |  |  |  |  |  |  |  |
Other liabilities |  |  | 1,016 |  |  |  |  |  |  |  |  |  |  |  | 1,016 |  |  |  |  |  |  |  |  |  |  |  | 811 |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | 205 |  |  |  |  |  |  |  |  |
Stockholders’ equity |  |  | 5,596 |  |  |  |  |  |  |  |  |  |  |  | 5,615 |  |  |  |  |  |  |  |  |  |  |  | 5,414 |  |  |  |  |  |  |  |  |  |  |  | (19 | ) |  |  |  |  |  |  |  |  |  |  | 182 |  |  |  |  |  |  |  |  |
Total average liabilities and stockholders’ equity |  | $ | 49,775 |  |  |  |  |  |  |  |  |  |  | $ | 48,627 |  |  |  |  |  |  |  |  |  |  | $ | 46,850 |  |  |  |  |  |  |  |  |  |  | $ | 1,148 |  |  |  |  |  |  |  |  |  |  | $ | 2,925 |  |  |  |  |  |  |  |  |
Net interest income / margin non-taxable equivalent basis |  |  | $ | 476.3 |  |  |  | 4.11 | % |  |  |  |  |  | $ | 471.0 |  |  |  | 4.20 | % |  |  |  |  |  | $ | 414.1 |  |  |  | 3.81 | % |  |  |  |  |  | $ | 5.3 |  |  |  | (0.09 | )% |  |  |  |  |  | $ | 62.2 |  |  |  | 0.30 | %

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE

(Unaudited)

|  | Six months ended |  |  |  |  |  |  |  |  |  |
|  | 30-Jun-19 |  |  | 30-Jun-18 |  |  | Variance |
($ amounts in millions; yields not on a taxable equivalent basis) |  | Average balance |  |  | Income / Expense |  |  | Yield / Rate |  |  | Average balance |  |  | Income / Expense |  |  | Yield / Rate |  |  | Average balance |  |  | Income / Expense |  |  | Yield / Rate |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market, trading and investment securities |  | $ | 19,221 |  |  | $ | 227.0 |  |  |  | 2.38 | % |  | $ | 18,010 |  |  | $ | 174.1 |  |  |  | 1.94 | % |  | $ | 1,211 |  |  | $ | 52.9 |  |  |  | 0.44 | %
Loans not covered under loss-sharing agreements with the FDIC: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 12,110 |  |  |  | 360.0 |  |  |  | 5.99 |  |  |  | 11,503 |  |  |  | 327.5 |  |  |  | 5.74 |  |  |  | 607 |  |  |  | 32.5 |  |  |  | 0.25 |
Construction |  |  | 806 |  |  |  | 27.2 |  |  |  | 6.79 |  |  |  | 911 |  |  |  | 27.9 |  |  |  | 6.18 |  |  |  | (105 | ) |  |  | (0.7 | ) |  |  | 0.61 |
Mortgage |  |  | 7,124 |  |  |  | 182.3 |  |  |  | 5.12 |  |  |  | 7,091 |  |  |  | 180.0 |  |  |  | 5.08 |  |  |  | 33 |  |  |  | 2.3 |  |  |  | 0.04 |
Consumer |  |  | 2,839 |  |  |  | 168.1 |  |  |  | 11.94 |  |  |  | 2,871 |  |  |  | 160.2 |  |  |  | 11.25 |  |  |  | (32 | ) |  |  | 7.9 |  |  |  | 0.69 |
Auto |  |  | 2,776 |  |  |  | 135.3 |  |  |  | 9.83 |  |  |  | 935 |  |  |  | 39.2 |  |  |  | 8.45 |  |  |  | 1,841 |  |  |  | 96.1 |  |  |  | 1.38 |
Lease financing |  |  | 958 |  |  |  | 29.1 |  |  |  | 6.07 |  |  |  | 835 |  |  |  | 25.0 |  |  |  | 5.99 |  |  |  | 123 |  |  |  | 4.1 |  |  |  | 0.08 |
Total loans |  |  | 26,613 |  |  |  | 902.0 |  |  |  | 6.82 |  |  |  | 24,146 |  |  |  | 759.8 |  |  |  | 6.33 |  |  |  | 2,467 |  |  |  | 142.2 |  |  |  | 0.49 |
Total interest earning assets |  | $ | 45,834 |  |  | $ | 1,129.0 |  |  |  | 4.96 | % |  | $ | 42,156 |  |  | $ | 933.9 |  |  |  | 4.46 | % |  | $ | 3,678 |  |  | $ | 195.1 |  |  |  | 0.50 | %
Allowance for loan losses |  |  | (564 | ) |  |  |  |  |  |  |  |  |  |  | (640 | ) |  |  |  |  |  |  |  |  |  |  | 76 |  |  |  |  |  |  |  |  |
Other non-interest earning assets |  |  | 3,934 |  |  |  |  |  |  |  |  |  |  |  | 4,041 |  |  |  |  |  |  |  |  |  |  |  | (107 | ) |  |  |  |  |  |  |  |
Total average assets |  | $ | 49,204 |  |  |  |  |  |  |  |  |  |  | $ | 45,557 |  |  |  |  |  |  |  |  |  |  | $ | 3,647 |  |  |  |  |  |  |  |  |
Liabilities and Stockholders’ Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NOW and money market |  | $ | 14,504 |  |  | $ | 73.0 |  |  |  | 1.02 | % |  | $ | 11,838 |  |  | $ | 27.2 |  |  |  | 0.46 | % |  | $ | 2,666 |  |  | $ | 45.8 |  |  |  | 0.56 | %
Savings |  |  | 9,958 |  |  |  | 20.4 |  |  |  | 0.41 |  |  |  | 9,110 |  |  |  | 13.0 |  |  |  | 0.29 |  |  |  | 848 |  |  |  | 7.4 |  |  |  | 0.12 |
Time deposits |  |  | 7,752 |  |  |  | 55.9 |  |  |  | 1.45 |  |  |  | 7,723 |  |  |  | 43.7 |  |  |  | 1.14 |  |  |  | 29 |  |  |  | 12.2 |  |  |  | 0.31 |
Total interest-bearing deposits |  |  | 32,214 |  |  |  | 149.3 |  |  |  | 0.93 |  |  |  | 28,671 |  |  |  | 83.9 |  |  |  | 0.59 |  |  |  | 3,543 |  |  |  | 65.4 |  |  |  | 0.34 |
Borrowings |  |  | 1,458 |  |  |  | 32.4 |  |  |  | 4.46 |  |  |  | 2,001 |  |  |  | 42.8 |  |  |  | 4.30 |  |  |  | (543 | ) |  |  | (10.4 | ) |  |  | 0.16 |
Total interest-bearing liabilities |  |  | 33,672 |  |  |  | 181.7 |  |  |  | 1.09 |  |  |  | 30,672 |  |  |  | 126.7 |  |  |  | 0.83 |  |  |  | 3,000 |  |  |  | 55.0 |  |  |  | 0.26 |
Net interest spread |  |  |  |  |  |  |  |  |  |  | 3.87 | % |  |  |  |  |  |  |  |  |  |  | 3.63 | % |  |  |  |  |  |  |  |  |  |  | 0.24 | %
Non-interest bearing deposits |  |  | 8,910 |  |  |  |  |  |  |  |  |  |  |  | 8,702 |  |  |  |  |  |  |  |  |  |  |  | 208 |  |  |  |  |  |  |  |  |
Other liabilities |  |  | 1,017 |  |  |  |  |  |  |  |  |  |  |  | 855 |  |  |  |  |  |  |  |  |  |  |  | 162 |  |  |  |  |  |  |  |  |
Stockholders’ equity |  |  | 5,605 |  |  |  |  |  |  |  |  |  |  |  | 5,328 |  |  |  |  |  |  |  |  |  |  |  | 277 |  |  |  |  |  |  |  |  |
Total average liabilities and stockholders’ equity |  | $ | 49,204 |  |  |  |  |  |  |  |  |  |  | $ | 45,557 |  |  |  |  |  |  |  |  |  |  | $ | 3,647 |  |  |  |  |  |  |  |  |
Net interest income / margin non-taxable equivalent basis |  |  |  |  |  | $ | 947.3 |  |  |  | 4.16 | % |  |  |  |  |  | $ | 807.2 |  |  |  | 3.85 | % |  |  |  |  |  | $ | 140.1 |  |  |  | 0.31 | %

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table F - Mortgage Banking Activities and Other Service Fees

(Unaudited)

Mortgage Banking Activities

|  | Quarters ended |  |  | Variance |  |  | Six months ended |  |  | Variance |
(In thousands) |  | 30-Jun-19 |  |  | 31-Mar-19 |  |  | 30-Jun-18 |  |  | Q2 2019 vs.Q1 2019 |  |  | Q2 2019 vs.Q2 2018 |  |  | 30-Jun-19 |  |  | 30-Jun-18 |  |  | 2019 vs. 2018 |
Mortgage servicing fees, net of fair value adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage servicing fees |  | $ | 11,916 |  |  | $ | 11,687 |  |  | $ | 12,425 |  |  | $ | 229 |  |  | $ | (509 | ) |  | $ | 23,603 |  |  | $ | 24,881 |  |  | $ | (1,278 | )
Mortgage servicing rights fair value adjustments |  |  | (17,186 | ) |  |  | (3,825 | ) |  |  | (4,622 | ) |  |  | (13,361 | ) |  |  | (12,564 | ) |  |  | (21,011 | ) |  |  | (8,929 | ) |  |  | (12,082 | )
Total mortgage servicing fees, net of fair value adjustments |  |  | (5,270 | ) |  |  | 7,862 |  |  |  | 7,803 |  |  |  | (13,132 | ) |  |  | (13,073 | ) |  |  | 2,592 |  |  |  | 15,952 |  |  |  | (13,360 | )
Net gain on sale of loans, including valuation on loans held-for-sale |  |  | 5,215 |  |  |  | 4,017 |  |  |  | 2,460 |  |  |  | 1,198 |  |  |  | 2,755 |  |  |  | 9,232 |  |  |  | 3,517 |  |  |  | 5,715 |
Trading account (loss) profit: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized (losses) gains on outstanding derivative positions |  |  | (227 | ) |  |  | — |  |  |  | 45 |  |  |  | (227 | ) |  |  | (272 | ) |  |  | (227 | ) |  |  | (176 | ) |  |  | (51 | )
Realized (losses) gains on closed derivative positions |  |  | (1,491 | ) |  |  | (1,953 | ) |  |  | (237 | ) |  |  | 462 |  |  |  | (1,254 | ) |  |  | (3,444 | ) |  |  | 2,846 |  |  |  | (6,290 | )
Total trading account (loss) profit |  |  | (1,718 | ) |  |  | (1,953 | ) |  |  | (192 | ) |  |  | 235 |  |  |  | (1,526 | ) |  |  | (3,671 | ) |  |  | 2,670 |  |  |  | (6,341 | )
Total mortgage banking activities |  | $ | (1,773 | ) |  | $ | 9,926 |  |  | $ | 10,071 |  |  | $ | (11,699 | ) |  | $ | (11,844 | ) |  | $ | 8,153 |  |  | $ | 22,139 |  |  | $ | (13,986 | )

Other Service Fees

|  | Quarters ended |  |  | Variance |  |  | Six months ended |  |  | Variance |
(In thousands) |  | 30-Jun-19 |  |  | 31-Mar-19 |  |  | 30-Jun-18 |  |  | Q2 2019 vs.Q1 2019 |  |  | Q2 2019 vs.Q2 2018 |  |  | 30-Jun-19 |  |  | 30-Jun-18 |  |  | 2019 vs. 2018 |
Other service fees: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debit card fees |  | $ | 12,034 |  |  | $ | 11,170 |  |  | $ | 11,684 |  |  | $ | 864 |  |  | $ | 350 |  |  | $ | 23,204 |  |  | $ | 23,322 |  |  | $ | (118 | )
Insurance fees |  |  | 17,253 |  |  |  | 12,791 |  |  |  | 13,027 |  |  |  | 4,462 |  |  |  | 4,226 |  |  |  | 30,044 |  |  |  | 25,626 |  |  |  | 4,418 |
Credit card fees |  |  | 24,794 |  |  |  | 22,286 |  |  |  | 22,658 |  |  |  | 2,508 |  |  |  | 2,136 |  |  |  | 47,080 |  |  |  | 44,341 |  |  |  | 2,739 |
Sale and administration of investment products |  |  | 5,732 |  |  |  | 5,259 |  |  |  | 5,020 |  |  |  | 473 |  |  |  | 712 |  |  |  | 10,991 |  |  |  | 10,375 |  |  |  | 616 |
Trust fees |  |  | 5,522 |  |  |  | 4,716 |  |  |  | 5,139 |  |  |  | 806 |  |  |  | 383 |  |  |  | 10,238 |  |  |  | 10,236 |  |  |  | 2 |
Other fees |  |  | 8,696 |  |  |  | 8,085 |  |  |  | 5,348 |  |  |  | 611 |  |  |  | 3,348 |  |  |  | 16,781 |  |  |  | 9,578 |  |  |  | 7,203 |
Total other service fees |  | $ | 74,031 |  |  | $ | 64,307 |  |  | $ | 62,876 |  |  | $ | 9,724 |  |  | $ | 11,155 |  |  | $ | 138,338 |  |  | $ | 123,478 |  |  | $ | 14,860 |

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table G - Loans and Deposits

(Unaudited)

Loans - Ending Balances

|  |  |  |  |  |  |  |  |  |  | Variance |
(In thousands) |  | 30-Jun-19 |  |  | 31-Mar-19 |  |  | 30-Jun-18 |  |  | Q2 2019 vs. Q1 2019 |  |  | Q2 2019 vs. Q2 2018 |
Loans held-in-portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 12,216,603 |  |  | $ | 12,058,310 |  |  | $ | 11,589,993 |  |  | $ | 158,293 |  |  | $ | 626,610 |
Construction |  |  | 825,419 |  |  |  | 791,320 |  |  |  | 899,323 |  |  |  | 34,099 |  |  |  | (73,904 | )
Legacy [1] |  |  | 23,893 |  |  |  | 24,404 |  |  |  | 29,250 |  |  |  | (511 | ) |  |  | (5,357 | )
Lease financing |  |  | 991,546 |  |  |  | 963,232 |  |  |  | 872,098 |  |  |  | 28,314 |  |  |  | 119,448 |
Mortgage |  |  | 7,198,959 |  |  |  | 7,207,180 |  |  |  | 7,376,711 |  |  |  | (8,221 | ) |  |  | (177,752 | )
Auto |  |  | 2,796,403 |  |  |  | 2,742,095 |  |  |  | 915,063 |  |  |  | 54,308 |  |  |  | 1,881,340 |
Consumer |  |  | 2,952,922 |  |  |  | 2,861,167 |  |  |  | 2,926,078 |  |  |  | 91,755 |  |  |  | 26,844 |
Total loans held-in-portfolio |  | $ | 27,005,745 |  |  | $ | 26,647,708 |  |  | $ | 24,608,516 |  |  | $ | 358,037 |  |  | $ | 2,397,229 |
Loans held-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 54,028 |  |  |  | 43,985 |  |  |  | 73,859 |  |  |  | 10,043 |  |  |  | (19,831 | )
Total loans held-for-sale |  | $ | 54,028 |  |  | $ | 43,985 |  |  | $ | 73,859 |  |  | $ | 10,043 |  |  | $ | (19,831 | )
Total loans |  | $ | 27,059,773 |  |  | $ | 26,691,693 |  |  | $ | 24,682,375 |  |  | $ | 368,080 |  |  | $ | 2,377,398 |

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

Deposits - Ending Balances

|  |  |  |  |  |  |  |  |  |  | Variance |
(In thousands) |  | 30-Jun-19 |  |  | 31-Mar-19 |  |  | 30-Jun-18 |  |  | Q2 2019 vs. Q1 2019 |  |  | Q2 2019 vs.Q2 2018 |
Demand deposits [1] |  | $ | 17,750,676 |  |  | $ | 16,871,924 |  |  | $ | 15,813,188 |  |  | $ | 878,752 |  |  | $ | 1,937,488 |
Savings, NOW and money market deposits (non-brokered) |  |  | 16,011,646 |  |  |  | 15,806,355 |  |  |  | 15,751,376 |  |  |  | 205,291 |  |  |  | 260,270 |
Savings, NOW and money market deposits (brokered) |  |  | 384,251 |  |  |  | 395,795 |  |  |  | 389,912 |  |  |  | (11,544 | ) |  |  | (5,661 | )
Time deposits (non-brokered) |  |  | 7,816,939 |  |  |  | 7,724,161 |  |  |  | 7,284,697 |  |  |  | 92,778 |  |  |  | 532,242 |
Time deposits (brokered CDs) |  |  | 96,325 |  |  |  | 81,603 |  |  |  | 138,388 |  |  |  | 14,722 |  |  |  | (42,063 | )
Total deposits |  | $ | 42,059,837 |  |  | $ | 40,879,838 |  |  | $ | 39,377,561 |  |  | $ | 1,179,999 |  |  | $ | 2,682,276 |

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

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table H - Non-Performing Assets

(Unaudited)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Variance |
(Dollars in thousands) |  | 30-Jun-19 |  |  | As a % of loans HIP by category |  |  | 31-Mar-19 |  |  | As a % of loans HIP by category |  |  | 30-Jun-18 |  |  | As a % of loans HIP by category |  |  | Q2 2019 vs. Q1 2019 |  |  | Q2 2019 vs. Q2 2018 |
Non-accrual loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 155,348 |  |  |  | 1.3 | % |  | $ | 169,154 |  |  |  | 1.4 | % |  | $ | 164,949 |  |  |  | 1.4 | % |  | $ | (13,806 | ) |  | $ | (9,601 | )
Construction |  |  | 13,848 |  |  |  | 1.7 |  |  |  | 13,848 |  |  |  | 1.7 |  |  |  | 20,460 |  |  |  | 2.3 |  |  |  | — |  |  |  | (6,612 | )
Legacy [1] |  |  | 2,469 |  |  |  | 10.3 |  |  |  | 2,583 |  |  |  | 10.6 |  |  |  | 3,663 |  |  |  | 12.5 |  |  |  | (114 | ) |  |  | (1,194 | )
Lease financing |  |  | 2,830 |  |  |  | 0.3 |  |  |  | 2,525 |  |  |  | 0.3 |  |  |  | 3,696 |  |  |  | 0.4 |  |  |  | 305 |  |  |  | (866 | )
Mortgage |  |  | 318,396 |  |  |  | 4.4 |  |  |  | 327,658 |  |  |  | 4.5 |  |  |  | 384,655 |  |  |  | 5.2 |  |  |  | (9,262 | ) |  |  | (66,259 | )
Auto |  |  | 28,085 |  |  |  | 1.0 |  |  |  | 25,162 |  |  |  | 0.9 |  |  |  | 12,855 |  |  |  | 1.4 |  |  |  | 2,923 |  |  |  | 15,230 |
Consumer |  |  | 43,382 |  |  |  | 1.5 |  |  |  | 45,272 |  |  |  | 1.6 |  |  |  | 52,921 |  |  |  | 1.8 |  |  |  | (1,890 | ) |  |  | (9,539 | )
Total non-performing loans held-in-portfolio |  |  | 564,358 |  |  |  | 2.1 | % |  |  | 586,202 |  |  |  | 2.2 | % |  |  | 643,199 |  |  |  | 2.6 | % |  |  | (21,844 | ) |  |  | (78,841 | )
Other real estate owned (“OREO”) |  |  | 118,851 |  |  |  |  |  |  |  | 125,478 |  |  |  |  |  |  |  | 142,063 |  |  |  |  |  |  |  | (6,627 | ) |  |  | (23,212 | )
Total non-performing assets [2] |  | $ | 683,209 |  |  |  |  |  |  | $ | 711,680 |  |  |  |  |  |  | $ | 785,262 |  |  |  |  |  |  | $ | (28,471 | ) |  | $ | (102,053 | )
Accruing loans past due 90 days or more [3] [4] |  | $ | 494,488 |  |  |  |  |  |  | $ | 550,717 |  |  |  |  |  |  | $ | 901,473 |  |  |  |  |  |  | $ | (56,229 | ) |  | $ | (406,985 | )
Ratios: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-performing assets to total assets |  |  | 1.35 | % |  |  |  |  |  |  | 1.46 | % |  |  |  |  |  |  | 1.65 | % |  |  |  |  |  |  |  |  |  |  |  |
Non-performing loans held-in-portfolio to loans held-in-portfolio |  |  | 2.09 |  |  |  |  |  |  |  | 2.20 |  |  |  |  |  |  |  | 2.61 |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses to loans held-in-portfolio |  |  | 2.01 |  |  |  |  |  |  |  | 2.07 |  |  |  |  |  |  |  | 2.61 |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses to non-performing loans, excluding loans held-for-sale |  |  | 96.33 |  |  |  |  |  |  |  | 93.93 |  |  |  |  |  |  |  | 99.97 |  |  |  |  |  |  |  |  |  |  |  |  |

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

[2] | There were no non-performing loans held-for-sale as of June 30, 2019, March 31, 2019 and June 30, 2018.

[3] | It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These include loans rebooked, which were previously pooled into GNMA securities amounting to $96 million (March 31, 2019 - $106 million; June 30, 2018 - $298 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected on the financial statements of BPPR with an offsetting liability. These balances include $262 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2019 (March 31, 2019 - $292 million; June 30, 2018 - $216 million). Furthermore, the Corporation has approximately $66 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation’s policy to exclude these balances from non-performing assets (March 31, 2019 - $67 million; June 30 2018 - $66 million).

[4] | The carrying value of loans accounted for under ASC Subtopic 310-30 that are contractually 90 days or more past due was $248 million at June 30, 2019 (March 31, 2019 - $257 million; June 30, 2018 - $265 million). This amount is excluded from the above table as the loans’ accretable yield interest recognition is independent from the underlying contractual loan delinquency status.

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table I - Activity in Non-Performing Loans

(Unaudited)

Commercial loans held-in-portfolio: |
|  | Quarter ended 30-Jun-19 |  |  | Quarter ended 31-Mar-19 |
(In thousands) |  | BPPR |  |  | Popular U.S. |  |  | Popular, Inc. |  |  | BPPR |  |  | Popular U.S. |  |  | Popular, Inc. |
Beginning balance NPLs |  | $ | 166,293 |  |  | $ | 2,861 |  |  | $ | 169,154 |  |  | $ | 182,950 |  |  | $ | 1,076 |  |  | $ | 184,026 |
Plus: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
New non-performing loans |  |  | 2,209 |  |  |  | 4,362 |  |  |  | 6,571 |  |  |  | 10,554 |  |  |  | 2,220 |  |  |  | 12,774 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-performing loans transferred to OREO |  |  | (1,749 | ) |  |  | — |  |  |  | (1,749 | ) |  |  | (962 | ) |  |  | — |  |  |  | (962 | )
Non-performing loans charged-off |  |  | (2,931 | ) |  |  | (680 | ) |  |  | (3,611 | ) |  |  | (17,918 | ) |  |  | (50 | ) |  |  | (17,968 | )
Loans returned to accrual status / loan collections |  |  | (14,683 | ) |  |  | (334 | ) |  |  | (15,017 | ) |  |  | (8,331 | ) |  |  | (385 | ) |  |  | (8,716 | )
Ending balance NPLs |  | $ | 149,139 |  |  | $ | 6,209 |  |  | $ | 155,348 |  |  | $ | 166,293 |  |  | $ | 2,861 |  |  | $ | 169,154 |
Construction loans held-in-portfolio: |
|  | Quarter ended 30-Jun-19 |  |  | Quarter ended 31-Mar-19 |
(In thousands) |  | BPPR |  |  | Popular U.S. |  |  | Popular, Inc. |  |  | BPPR |  |  | Popular U.S. |  |  | Popular, Inc. |
Beginning balance NPLs |  | $ | 1,788 |  |  | $ | 12,060 |  |  | $ | 13,848 |  |  | $ | 1,788 |  |  | $ | 12,060 |  |  | $ | 13,848 |
Ending balance NPLs |  | $ | 1,788 |  |  | $ | 12,060 |  |  | $ | 13,848 |  |  | $ | 1,788 |  |  | $ | 12,060 |  |  | $ | 13,848 |
There was no activity in the construction NPLs, during the first and second quarter of 2019. |
Mortgage loans held-in-portfolio: |
|  | Quarter ended 30-Jun-19 |  |  | Quarter ended 31-Mar-19 |
(In thousands) |  | BPPR |  |  | Popular U.S. |  |  | Popular, Inc. |  |  | BPPR |  |  | Popular U.S. |  |  | Popular, Inc. |
Beginning balance NPLs |  | $ | 317,850 |  |  | $ | 9,808 |  |  | $ | 327,658 |  |  | $ | 323,565 |  |  | $ | 11,033 |  |  | $ | 334,598 |
Plus: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
New non-performing loans |  |  | 50,205 |  |  |  | 1,828 |  |  |  | 52,033 |  |  |  | 47,228 |  |  |  | 1,820 |  |  |  | 49,048 |
Advances on existing non-performing loans |  |  | — |  |  |  | 10 |  |  |  | 10 |  |  |  | — |  |  |  | 72 |  |  |  | 72 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-performing loans transferred to OREO |  |  | (6,905 | ) |  |  | (169 | ) |  |  | (7,074 | ) |  |  | (3,155 | ) |  |  | (124 | ) |  |  | (3,279 | )
Non-performing loans charged-off |  |  | (6,362 | ) |  |  | (342 | ) |  |  | (6,704 | ) |  |  | (5,734 | ) |  |  | (197 | ) |  |  | (5,931 | )
Loans returned to accrual status / loan collections |  |  | (45,742 | ) |  |  | (1,785 | ) |  |  | (47,527 | ) |  |  | (44,054 | ) |  |  | (2,796 | ) |  |  | (46,850 | )
Ending balance NPLs |  | $ | 309,046 |  |  | $ | 9,350 |  |  | $ | 318,396 |  |  | $ | 317,850 |  |  | $ | 9,808 |  |  | $ | 327,658 |

Total non-performing loans held-in-portfolio (excluding consumer): |
|  | Quarter ended 30-Jun-19 |  |  | Quarter ended 31-Mar-19 |
(In thousands) |  | BPPR |  |  | Popular U.S. |  |  | Popular, Inc. |  |  | BPPR |  |  | Popular U.S. |  |  | Popular, Inc. |
Beginning balance NPLs |  | $ | 485,931 |  |  | $ | 27,312 |  |  | $ | 513,243 |  |  | $ | 508,303 |  |  | $ | 26,796 |  |  | $ | 535,099 |
Plus: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
New non-performing loans |  |  | 52,414 |  |  |  | 6,190 |  |  |  | 58,604 |  |  |  | 57,782 |  |  |  | 4,250 |  |  |  | 62,032 |
Advances on existing non-performing loans |  |  | — |  |  |  | 11 |  |  |  | 11 |  |  |  | — |  |  |  | 79 |  |  |  | 79 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-performing loans transferred to OREO |  |  | (8,654 | ) |  |  | (169 | ) |  |  | (8,823 | ) |  |  | (4,117 | ) |  |  | (124 | ) |  |  | (4,241 | )
Non-performing loans charged-off |  |  | (9,293 | ) |  |  | (1,022 | ) |  |  | (10,315 | ) |  |  | (23,652 | ) |  |  | (247 | ) |  |  | (23,899 | )
Loans returned to accrual status / loan collections |  |  | (60,425 | ) |  |  | (2,234 | ) |  |  | (62,659 | ) |  |  | (52,385 | ) |  |  | (3,442 | ) |  |  | (55,827 | )
Ending balance NPLs [1] |  | $ | 459,973 |  |  | $ | 30,088 |  |  | $ | 490,061 |  |  | $ | 485,931 |  |  | $ | 27,312 |  |  | $ | 513,243 |

[1] | Includes $2.5 million of NPLs related to the legacy portfolio as of June 30, 2019 (March 31, 2019 - $2.6 million).

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

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

(Unaudited)

|  | Quarter ended |  |  | Quarter ended |  |  | Quarter ended |
|  | 30-Jun-19 |  |  | 31-Mar-19 |  |  | 30-Jun-18 |
(Dollars in thousands) |  | Total |  |  | Total |  |  | Non-covered loans |  |  | Covered loans |  |  | Total |
Balance at beginning of period |  | $ | 550,628 |  |  | $ | 569,348 |  |  | $ | 606,968 |  |  | $ | 33,610 |  |  | $ | 640,578 |
Provision for loan losses |  |  | 40,191 |  |  |  | 41,825 |  |  |  | 60,054 |  |  |  | — |  |  |  | 60,054 |
|  |  | 590,819 |  |  |  | 611,173 |  |  |  | 667,022 |  |  |  | 33,610 |  |  |  | 700,632 |
Net loans charged-off (recovered): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BPPR |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 184 |  |  |  | 16,594 |  |  |  | 7,960 |  |  |  | — |  |  |  | 7,960 |
Construction |  |  | (54 | ) |  |  | (17 | ) |  |  | (301 | ) |  |  | — |  |  |  | (301 | )
Lease financing |  |  | 1,630 |  |  |  | 1,486 |  |  |  | 1,157 |  |  |  | — |  |  |  | 1,157 |
Mortgage |  |  | 8,713 |  |  |  | 11,183 |  |  |  | 11,575 |  |  |  | — |  |  |  | 11,575 |
Consumer |  |  | 26,694 |  |  |  | 24,983 |  |  |  | 24,074 |  |  |  | — |  |  |  | 24,074 |
Total BPPR |  |  | 37,167 |  |  |  | 54,229 |  |  |  | 44,465 |  |  |  | — |  |  |  | 44,465 |
Popular U.S. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 5,791 |  |  |  | 2,834 |  |  |  | 10,132 |  |  |  | — |  |  |  | 10,132 |
Construction |  |  | — |  |  |  | (8 | ) |  |  | — |  |  |  | — |  |  |  | — |
Legacy [1] |  |  | (277 | ) |  |  | (715 | ) |  |  | (277 | ) |  |  | — |  |  |  | (277 | )
Mortgage |  |  | 230 |  |  |  | 229 |  |  |  | 18 |  |  |  | — |  |  |  | 18 |
Consumer |  |  | 4,242 |  |  |  | 3,976 |  |  |  | 3,276 |  |  |  | — |  |  |  | 3,276 |
Total Popular U.S. |  |  | 9,986 |  |  |  | 6,316 |  |  |  | 13,149 |  |  |  | — |  |  |  | 13,149 |
Total loans charged-off - Popular, Inc. |  |  | 47,153 |  |  |  | 60,545 |  |  |  | 57,614 |  |  |  | — |  |  |  | 57,614 |
Allowance transferred from covered to non-covered loans |  |  | — |  |  |  | — |  |  |  | 33,610 |  |  |  | (33,610 | ) |  |  | — |
Balance at end of period |  | $ | 543,666 |  |  | $ | 550,628 |  |  | $ | 643,018 |  |  | $ | — |  |  | $ | 643,018 |
POPULAR, INC. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Annualized net charge-offs to average loans held-in-portfolio |  |  | 0.71 | % |  |  | 0.92 | % |  |  | 0.95 | % |  |  |  |  |  |  | 0.95 | %
Provision for loan losses to net charge-offs |  |  | 85.24 | % |  |  | 69.08 | % |  |  | 104.24 | % |  |  |  |  |  |  | 104.24 | %
BPPR |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Annualized net charge-offs to average loans held-in-portfolio |  |  | 0.75 | % |  |  | 1.09 | % |  |  | 1.01 | % |  |  |  |  |  |  | 1.01 | %
Provision for loan losses to net charge-offs |  |  | 77.96 | % |  |  | 58.00 | % |  |  | 99.87 | % |  |  |  |  |  |  | 99.87 | %
Popular U.S. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Annualized net charge-offs to average loans held-in-portfolio |  |  | 0.59 | % |  |  | 0.38 | % |  |  |  |  |  |  |  |  |  |  | 0.81 | %
Provision for loan losses to net charge-offs |  |  | 112.32 | % |  |  | 164.20 | % |  |  |  |  |  |  |  |  |  |  | 119.01 | %

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

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED

(Unaudited)

30-Jun-19 |
(Dollars in thousands) |  | Commercial |  |  | Construction |  |  | Legacy [1] |  |  | Mortgage |  |  | Lease financing |  |  | Consumer |  |  | Total |
Specific ALLL |  | $ | 31,698 |  |  | $ | 90 |  |  | $ | — |  |  | $ | 43,550 |  |  | $ | 234 |  |  | $ | 24,455 |  |  | $ | 100,027 |
Impaired loans |  | $ | 390,271 |  |  | $ | 13,848 |  |  | $ | — |  |  | $ | 530,650 |  |  | $ | 865 |  |  | $ | 108,851 |  |  | $ | 1,044,485 |
Specific ALLL to impaired loans |  |  | 8.12 | % |  |  | 0.65 | % |  |  | — | % |  |  | 8.21 | % |  |  | 27.05 | % |  |  | 22.47 | % |  |  | 9.58 | %
General ALLL |  | $ | 193,831 |  |  | $ | 9,793 |  |  | $ | 774 |  |  | $ | 88,966 |  |  | $ | 6,673 |  |  | $ | 143,602 |  |  | $ | 443,639 |
Loans held-in-portfolio, excluding impaired loans |  | $ | 11,826,332 |  |  | $ | 811,571 |  |  | $ | 23,893 |  |  | $ | 6,668,309 |  |  | $ | 990,681 |  |  | $ | 5,640,474 |  |  | $ | 25,961,260 |
General ALLL to loans held-in-portfolio, excluding impaired loans |  |  | 1.64 | % |  |  | 1.21 | % |  |  | 3.24 | % |  |  | 1.33 | % |  |  | 0.67 | % |  |  | 2.55 | % |  |  | 1.71 | %
Total ALLL |  | $ | 225,529 |  |  | $ | 9,883 |  |  | $ | 774 |  |  | $ | 132,516 |  |  | $ | 6,907 |  |  | $ | 168,057 |  |  | $ | 543,666 |
Total loans held-in-portfolio |  | $ | 12,216,603 |  |  | $ | 825,419 |  |  | $ | 23,893 |  |  | $ | 7,198,959 |  |  | $ | 991,546 |  |  | $ | 5,749,325 |  |  | $ | 27,005,745 |
ALLL to loans held-in-portfolio |  |  | 1.85 | % |  |  | 1.20 | % |  |  | 3.24 | % |  |  | 1.84 | % |  |  | 0.70 | % |  |  | 2.92 | % |  |  | 2.01 | %
[1]   The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. reportable segment. |
31-Mar-19 |
(Dollars in thousands) |  | Commercial |  |  | Construction |  |  | Legacy [1] |  |  | Mortgage |  |  | Lease financing |  |  | Consumer |  |  | Total |
Specific ALLL |  | $ | 33,476 |  |  | $ | 19 |  |  | $ | — |  |  | $ | 43,139 |  |  | $ | 321 |  |  | $ | 25,003 |  |  | $ | 101,958 |
Impaired loans |  | $ | 383,494 |  |  | $ | 13,848 |  |  | $ | — |  |  | $ | 524,803 |  |  | $ | 1,018 |  |  | $ | 110,874 |  |  | $ | 1,034,037 |
Specific ALLL to impaired loans |  |  | 8.73 | % |  |  | 0.14 | % |  |  | — | % |  |  | 8.22 | % |  |  | 31.53 | % |  |  | 22.55 | % |  |  | 9.86 | %
General ALLL |  | $ | 191,013 |  |  | $ | 7,477 |  |  | $ | 829 |  |  | $ | 99,159 |  |  | $ | 8,788 |  |  | $ | 141,404 |  |  | $ | 448,670 |
Loans held-in-portfolio, excluding impaired loans |  | $ | 11,674,816 |  |  | $ | 777,472 |  |  | $ | 24,404 |  |  | $ | 6,682,377 |  |  | $ | 962,214 |  |  | $ | 5,492,388 |  |  | $ | 25,613,671 |
General ALLL to loans held-in-portfolio, excluding impaired loans |  |  | 1.64 | % |  |  | 0.96 | % |  |  | 3.40 | % |  |  | 1.48 | % |  |  | 0.91 | % |  |  | 2.57 | % |  |  | 1.75 | %
Total ALLL |  | $ | 224,489 |  |  | $ | 7,496 |  |  | $ | 829 |  |  | $ | 142,298 |  |  | $ | 9,109 |  |  | $ | 166,407 |  |  | $ | 550,628 |
Total loans held-in-portfolio |  | $ | 12,058,310 |  |  | $ | 791,320 |  |  | $ | 24,404 |  |  | $ | 7,207,180 |  |  | $ | 963,232 |  |  | $ | 5,603,262 |  |  | $ | 26,647,708 |
ALLL to loans held-in-portfolio |  |  | 1.86 | % |  |  | 0.95 | % |  |  | 3.40 | % |  |  | 1.97 | % |  |  | 0.95 | % |  |  | 2.97 | % |  |  | 2.07 | %
[1]   The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. reportable segment. |
Variance |
(Dollars in thousands) |  | Commercial |  |  | Construction |  |  | Legacy |  |  | Mortgage |  |  | Lease financing |  |  | Consumer |  |  | Total |
Specific ALLL |  | $ | (1,778 | ) |  | $ | 71 |  |  | $ | — |  |  | $ | 411 |  |  | $ | (87 | ) |  | $ | (548 | ) |  | $ | (1,931 | )
Impaired loans |  | $ | 6,777 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,847 |  |  | $ | (153 | ) |  | $ | (2,023 | ) |  | $ | 10,448 |
General ALLL |  | $ | 2,818 |  |  | $ | 2,316 |  |  | $ | (55 | ) |  | $ | (10,193 | ) |  | $ | (2,115 | ) |  | $ | 2,198 |  |  | $ | (5,031 | )
Loans held-in-portfolio, excluding impaired loans |  | $ | 151,516 |  |  | $ | 34,099 |  |  | $ | (511 | ) |  | $ | (14,068 | ) |  | $ | 28,467 |  |  | $ | 148,086 |  |  | $ | 347,589 |
Total ALLL |  | $ | 1,040 |  |  | $ | 2,387 |  |  | $ | (55 | ) |  | $ | (9,782 | ) |  | $ | (2,202 | ) |  | $ | 1,650 |  |  | $ | (6,962 | )
Total loans held-in-portfolio |  | $ | 158,293 |  |  | $ | 34,099 |  |  | $ | (511 | ) |  | $ | (8,221 | ) |  | $ | 28,314 |  |  | $ | 146,063 |  |  | $ | 358,037 |

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS

(Unaudited)

30-Jun-19 |
Puerto Rico |
(In thousands) |  | Commercial |  |  | Construction |  |  | Mortgage |  |  | Lease financing |  |  | Consumer |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific ALLL |  | $ | 31,698 |  |  | $ | 90 |  |  | $ | 41,158 |  |  | $ | 234 |  |  | $ | 22,592 |  |  | $ | 95,772 |
General ALLL |  |  | 158,529 |  |  |  | 2,906 |  |  |  | 86,772 |  |  |  | 6,673 |  |  |  | 125,539 |  |  |  | 380,419 |
Total ALLL |  | $ | 190,227 |  |  | $ | 2,996 |  |  | $ | 127,930 |  |  | $ | 6,907 |  |  | $ | 148,131 |  |  | $ | 476,191 |
Loans held-in-portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | 386,310 |  |  | $ | 1,788 |  |  | $ | 521,257 |  |  | $ | 865 |  |  | $ | 98,901 |  |  | $ | 1,009,121 |
Loans held-in-portfolio, excluding impaired loans |  |  | 6,953,539 |  |  |  | 107,170 |  |  |  | 5,781,701 |  |  |  | 990,681 |  |  |  | 5,199,449 |  |  |  | 19,032,540 |
Total loans held-in-portfolio |  | $ | 7,339,849 |  |  | $ | 108,958 |  |  | $ | 6,302,958 |  |  | $ | 991,546 |  |  | $ | 5,298,350 |  |  | $ | 20,041,661 |
31-Mar-19 |
Puerto Rico |
(In thousands) |  | Commercial |  |  | Construction |  |  | Mortgage |  |  | Lease financing |  |  | Consumer |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific ALLL |  | $ | 33,253 |  |  | $ | 19 |  |  | $ | 40,779 |  |  | $ | 321 |  |  | $ | 23,350 |  |  | $ | 97,722 |
General ALLL |  |  | 155,678 |  |  |  | 803 |  |  |  | 97,077 |  |  |  | 8,788 |  |  |  | 124,315 |  |  |  | 386,661 |
Total ALLL |  | $ | 188,931 |  |  | $ | 822 |  |  | $ | 137,856 |  |  | $ | 9,109 |  |  | $ | 147,665 |  |  | $ | 484,383 |
Loans held-in-portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired |  | $ | 381,803 |  |  | $ | 1,788 |  |  | $ | 515,365 |  |  | $ | 1,018 |  |  | $ | 101,887 |  |  | $ | 1,001,861 |
Loans held-in-portfolio, excluding impaired loans |  |  | 7,009,319 |  |  |  | 89,584 |  |  |  | 5,860,223 |  |  |  | 962,214 |  |  |  | 5,073,149 |  |  |  | 18,994,489 |
Total loans held-in-portfolio |  | $ | 7,391,122 |  |  | $ | 91,372 |  |  | $ | 6,375,588 |  |  | $ | 963,232 |  |  | $ | 5,175,036 |  |  | $ | 19,996,350 |
Variance |
(In thousands) |  | Commercial |  |  | Construction |  |  | Mortgage |  |  | Lease financing |  |  | Consumer |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific ALLL |  | $ | (1,555 | ) |  | $ | 71 |  |  | $ | 379 |  |  | $ | (87 | ) |  | $ | (758 | ) |  | $ | (1,950 | )
General ALLL |  |  | 2,851 |  |  |  | 2,103 |  |  |  | (10,305 | ) |  |  | (2,115 | ) |  |  | 1,224 |  |  |  | (6,242 | )
Total ALLL |  | $ | 1,296 |  |  | $ | 2,174 |  |  | $ | (9,926 | ) |  | $ | (2,202 | ) |  | $ | 466 |  |  | $ | (8,192 | )
Loans held-in-portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired |  | $ | 4,507 |  |  | $ | — |  |  | $ | 5,892 |  |  | $ | (153 | ) |  | $ | (2,986 | ) |  | $ | 7,260 |
Loans held-in-portfolio, excluding impaired loans |  |  | (55,780 | ) |  |  | 17,586 |  |  |  | (78,522 | ) |  |  | 28,467 |  |  |  | 126,300 |  |  |  | 38,051 |
Total loans held-in-portfolio |  | $ | (51,273 | ) |  | $ | 17,586 |  |  | $ | (72,630 | ) |  | $ | 28,314 |  |  | $ | 123,314 |  |  | $ | 45,311 |

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - POPULAR U.S. OPERATIONS

(Unaudited)

30-Jun-19 |
Popular U.S. |
(In thousands) |  | Commercial |  |  | Construction |  |  | Legacy |  |  | Mortgage |  |  | Consumer |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific ALLL |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,392 |  |  | $ | 1,863 |  |  | $ | 4,255 |
General ALLL |  |  | 35,302 |  |  |  | 6,887 |  |  |  | 774 |  |  |  | 2,194 |  |  |  | 18,063 |  |  |  | 63,220 |
Total ALLL |  | $ | 35,302 |  |  | $ | 6,887 |  |  | $ | 774 |  |  | $ | 4,586 |  |  | $ | 19,926 |  |  | $ | 67,475 |
Loans held-in-portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | 3,961 |  |  | $ | 12,060 |  |  | $ | — |  |  | $ | 9,393 |  |  | $ | 9,950 |  |  | $ | 35,364 |
Loans held-in-portfolio, excluding impaired loans |  |  | 4,872,793 |  |  |  | 704,401 |  |  |  | 23,893 |  |  |  | 886,608 |  |  |  | 441,025 |  |  |  | 6,928,720 |
Total loans held-in-portfolio |  | $ | 4,876,754 |  |  | $ | 716,461 |  |  | $ | 23,893 |  |  | $ | 896,001 |  |  | $ | 450,975 |  |  | $ | 6,964,084 |
31-Mar-19 |
Popular U.S. |
(In thousands) |  | Commercial |  |  | Construction |  |  | Legacy |  |  | Mortgage |  |  | Consumer |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific ALLL |  | $ | 223 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,360 |  |  | $ | 1,653 |  |  | $ | 4,236 |
General ALLL |  |  | 35,335 |  |  |  | 6,674 |  |  |  | 829 |  |  |  | 2,082 |  |  |  | 17,089 |  |  |  | 62,009 |
Total ALLL |  | $ | 35,558 |  |  | $ | 6,674 |  |  | $ | 829 |  |  | $ | 4,442 |  |  | $ | 18,742 |  |  | $ | 66,245 |
Loans held-in-portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | 1,691 |  |  | $ | 12,060 |  |  | $ | — |  |  | $ | 9,438 |  |  | $ | 8,987 |  |  | $ | 32,176 |
Loans held-in-portfolio, excluding impaired loans |  |  | 4,665,497 |  |  |  | 687,888 |  |  |  | 24,404 |  |  |  | 822,154 |  |  |  | 419,239 |  |  |  | 6,619,182 |
Total loans held-in-portfolio |  | $ | 4,667,188 |  |  | $ | 699,948 |  |  | $ | 24,404 |  |  | $ | 831,592 |  |  | $ | 428,226 |  |  | $ | 6,651,358 |
Variance |
(In thousands) |  | Commercial |  |  | Construction |  |  | Legacy |  |  | Mortgage |  |  | Consumer |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific ALLL |  | $ | (223 | ) |  | $ | — |  |  | $ | — |  |  | $ | 32 |  |  | $ | 210 |  |  | $ | 19 |
General ALLL |  |  | (33 | ) |  |  | 213 |  |  |  | (55 | ) |  |  | 112 |  |  |  | 974 |  |  |  | 1,211 |
Total ALLL |  | $ | (256 | ) |  | $ | 213 |  |  | $ | (55 | ) |  | $ | 144 |  |  | $ | 1,184 |  |  | $ | 1,230 |
Loans held-in-portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | 2,270 |  |  | $ | — |  |  | $ | — |  |  | $ | (45 | ) |  | $ | 963 |  |  | $ | 3,188 |
Loans held-in-portfolio, excluding impaired loans |  |  | 207,296 |  |  |  | 16,513 |  |  |  | (511 | ) |  |  | 64,454 |  |  |  | 21,786 |  |  |  | 309,538 |
Total loans held-in-portfolio |  | $ | 209,566 |  |  | $ | 16,513 |  |  | $ | (511 | ) |  | $ | 64,409 |  |  | $ | 22,749 |  |  | $ | 312,726 |

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table N - Reconciliation to GAAP Financial Measures

(Unaudited)

(In thousands, except share or per share information) |  | 30-Jun-19 |  |  | 31-Mar-19 |  |  | 30-Jun-18 |
Total stockholders’ equity |  | $ | 5,719,834 |  |  | $ | 5,440,060 |  |  | $ | 5,289,661 |
Less: Preferred stock |  |  | (50,160 | ) |  |  | (50,160 | ) |  |  | (50,160 | )
Less: Goodwill |  |  | (671,122 | ) |  |  | (671,122 | ) |  |  | (627,294 | )
Less: Other intangibles |  |  | (23,878 | ) |  |  | (24,521 | ) |  |  | (31,023 | )
Total tangible common equity |  | $ | 4,974,674 |  |  | $ | 4,694,257 |  |  | $ | 4,581,184 |
Total assets |  | $ | 50,617,221 |  |  | $ | 48,680,607 |  |  | $ | 47,535,177 |
Less: Goodwill |  |  | (671,122 | ) |  |  | (671,122 | ) |  |  | (627,294 | )
Less: Other intangibles |  |  | (23,878 | ) |  |  | (24,521 | ) |  |  | (31,023 | )
Total tangible assets |  | $ | 49,922,221 |  |  | $ | 47,984,964 |  |  | $ | 46,876,860 |
Tangible common equity to tangible assets |  |  | 9.96 | % |  |  | 9.78 | % |  |  | 9.77 | %
Common shares outstanding at end of period |  |  | 96,703,351 |  |  |  | 96,629,891 |  |  |  | 102,296,440 |
Tangible book value per common share |  | $ | 51.44 |  |  | $ | 48.58 |  |  | $ | 44.78 |

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