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Popular, Inc. Announces First Quarter 2019 Financial Results

April 18, 2019 8:00 AM

SAN JUAN, Puerto Rico--(BUSINESS WIRE)-- Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ: BPOP) reported net income of $167.9 million for the first quarter ended March 31, 2019, compared to net income of $106.4 million and adjusted net income of $134.1 million for the fourth quarter ended December 31, 2018.

Ignacio Alvarez, President and Chief Executive Officer, said: “The first quarter was a great start to 2019 and places us on a solid footing for the remainder of the year. Credit quality metrics were positive, and we achieved loan growth in Puerto Rico for the second quarter in a row, led by our auto finance business. Our unique franchise puts us in a privileged position to take advantage of opportunities that will arise as Puerto Rico’s recovery continues. We continued to make progress in our U.S. mainland operations, which remain an important source of revenue diversification. Loan balances for the quarter were flat, but we are optimistic that loan growth will pick up as the year progresses.”

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Earnings Highlights
� � � � � � �
(Unaudited) � � � Quarters ended
(Dollars in thousands, except per share information) � � � 31-Mar-19 � � 31-Dec-18 � � 31-Mar-18
Net interest income $ 470,963 $ 476,225 $ 393,047
Provision for loan losses – non-covered loans 41,825 42,568 69,333
Provision for loan losses – covered loans [1] � � � � - � � � - � � � 1,730 �
Net interest income after provision for loan losses 429,138 433,657 321,984
FDIC loss-share expense - - (8,027 )
Other non-interest income 136,430 153,167 121,524
Operating expenses � � � � 347,420 � � � 396,455 � � � 322,002 �
Income before income tax 218,148 190,369 113,479
Income tax expense � � � � 50,223 � � � 83,966 � � � 22,155 �
Net income � � � $ 167,925 � � $ 106,403 � � $ 91,324 �
Net income applicable to common stock � � � $ 166,994 � � $ 105,472 � � $ 90,393 �
Net income per common share - Basic � � � $ 1.69 � � $ 1.06 � � $ 0.89 �
Net income per common share - Diluted � � � $ 1.69 � � $ 1.05 � � $ 0.89 �
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[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that were covered under the terminated FDIC loss sharing agreements.
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Significant Events

Accelerated share repurchase transaction

On February 28, 2019, the Corporation entered into an accelerated share repurchase (“ASR”) transaction of $250 million with respect to its common stock, which was accounted for as a treasury stock transaction. Accordingly, as a result of the receipt of the initial shares, the Corporation recognized in shareholders’ equity approximately $200 million in treasury stock and $50 million as a reduction in capital surplus. The Corporation expects to further adjust its treasury stock and capital surplus accounts to reflect the delivery or receipt of cash or shares upon the termination of the ASR agreement, which will depend on the average price of the Corporation’s shares during the term of the ASR.

Increase in quarterly common stock dividend

As part of its capital plan for 2019, on January�23, 2019, the Corporation announced an increase in its quarterly common stock dividend from $0.25 per share to $0.30 per share, payable commencing in the second quarter of 2019. On February�15, 2019, the Corporation’s Board of Directors approved the first quarterly cash dividend of $0.30 per share on its outstanding common stock, which was paid on April�1, 2019 to shareholders of record at the close of business on March�8, 2019.

Adjusted results – Non-GAAP

The Corporation prepares its Consolidated Financial Statement using accounting principles generally accepted in the U.S. (“U.S. GAAP” or the “reported basis”). In addition to analyzing the Corporation’s results on the reported basis, management monitors the “Adjusted net income” of the Corporation and excludes from such calculation the impact of certain transactions on the results of its operations. Management believes that “Adjusted net income” provides meaningful information to investors about the underlying performance of the Corporation’s ongoing operations. “Adjusted net income” is a non-GAAP financial measure.

The table below describes adjustments to net income for the quarter ended December 31, 2018. No adjustments to net income are reflected for the quarter ended March 31, 2019.

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(Unaudited)
� � � Quarter ended
(In thousands) � � � 31-Dec-18
� � � � Pre-tax � �

Income tax
effect

� �

Impact on net
income

U.S. GAAP Net income � � � � $ 106,403
Non-GAAP Adjustments:
Impact of Law Act No.257[1] � � � - � � 27,686 � � � 27,686
Adjusted net income (Non-GAAP) � � � � � � � � � $ 134,089
[1]On December 10, 2018, the Governor of Puerto Rico signed into law Act No.257 of 2018, which amended the Puerto Rico Internal Revenue Code, to among other things, reduce the Puerto Rico corporate tax rate from 39% to 37.5%. The resulting adjustments reduced the DTA related to the Corporation's P.R. operations as a result of a lower realizable benefit at the lower tax rate.
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Net interest income

Net interest income for the quarter ended March 31, 2019 was $471.0 million, compared to $476.2 million for the previous quarter. The net interest margin was 4.20% for the quarter, compared to 4.25% for the previous quarter.

The decrease of $5.2 million in net interest income is mainly the result of the following:

Partially offset by:

BPPR’s net interest income amounted to $407.4 million for the quarter ended March 31, 2019, compared to $408.7 million in the previous quarter. The decrease of $1.3 million in net interest income was mainly due to higher cost and higher average deposit balances, principally from the public sector. Also, lower income from the auto loans portfolio driven by lower amortization of the fair value discount portfolio acquired from Wells Fargo, partially offset by higher interest income from money market and investment securities, as mentioned above. The net interest margin for the first quarter of 2019 was 4.49%, a decrease of 2 basis points when compared to 4.51% for the previous quarter. The decrease in net interest margin was due to higher cost of deposits and lower yield on the auto portfolio. BPPR’s earning assets yielded 5.07%, compared to 5.04% in the previous quarter, while the cost of interest-bearing deposits was 0.79%, or 6 basis points higher than the 0.73% reported in the previous quarter. Total cost of deposits for the quarter was 0.60%. The impact of 2 fewer days in the quarter represented approximately $6.3 million in BPPR’s net interest income.

Net interest income for Popular U.S. was $72.8 million, for the quarter ended March 31, 2019, compared to $77.9 million during the previous quarter. The decrease of $5.1 million in net interest income was primarily due to lower income from commercial and construction loans, lower fees earned on the cancellation of loans and higher cost of deposits, as discussed above. Net interest margin for the quarter decreased 21 basis points to 3.40%, compared to 3.61% for the previous quarter. Earning assets yielded 4.61%, compared to 4.74% in the previous quarter, while the cost of interest-bearing deposits was 1.51%, compared to 1.38% in the previous quarter. The impact of 2 fewer days in the quarter represented approximately $1.3 million in Popular U.S. ‘s net interest income.

Non-interest income

Non-interest income decreased by $16.7 million to $136.4 million for the quarter ended March 31, 2019, compared to $153.2 million for the previous quarter. The reduction in non-interest income was primarily driven by:

These variances were partially offset by:

Refer to Table B for further details.

Operating expenses

Operating expenses for the first quarter of 2019 amounted to $347.4 million, a decrease of $49.0 million when compared to the fourth quarter of 2018. The decrease in operating expenses was driven primarily by:

Full-time equivalent employees were 8,242 as of March 31, 2019, compared to 8,474 as of December 31, 2018. The decrease in headcount is mainly related to the net impact of the VRP.

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

Income taxes

For the quarter ended March 31, 2019, the Corporation recorded an income tax expense of $50.2 million, compared to $84.0 million for the previous quarter. As previously disclosed, during the fourth quarter of 2018 the Corporation recognized a non-cash income tax expense of $27.7 million resulting from adjustments to the DTA related to its Puerto Rico operations due to the enactment of Act No. 257 of 2018, which amended the Puerto Rico Internal Revenue Code to, among other things, reduce the corporate income tax rate from 39% to 37.5%.

The effective tax rate for the first quarter of 2019 was 23%. Excluding the impact of the above mentioned adjustment, the effective tax rate for the fourth quarter of 2018 was 30% as more income was recognized at the 39% marginal tax rate in Puerto Rico and the debt extinguishment expenses of $12.5 million recorded during that quarter were not subject to a tax benefit. The effective tax rate 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 22-25%.

Credit Quality

During the first quarter of 2019, the Puerto Rico segment continued to reflect positive credit quality trends. Mortgage delinquencies continued to improve, and net charge-offs were at 0.71% on that portfolio. The Corporation continues to be attentive to the performance of its portfolios and related credit metrics. The credit quality metrics of our U.S. operation also remained favorable. The following presents credit quality results for the first quarter of 2019.

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Non-Performing Assets
(Unaudited)
(In thousands) � � � 31-Mar-19 � � 31-Dec-18 � � 31-Mar-18
Total non-performing loans held-in-portfolio, excluding covered loans � � � $ 586,202 � � $ 611,087 � � $ 606,796
Other real estate owned (“OREO”), excluding covered OREO � � � �

125,478

� � � � 136,705 � � � � 153,061 �
Total non-performing assets, excluding covered assets

711,680

747,792 759,857
Covered loans and OREO � � � � - � � � � - � � � � 18,928 �
Total non-performing assets � � � $

711,680

� � � $ 747,792 � � � $ 778,785 �
Net charge-offs for the quarter (excluding covered loans) � � � $ 60,545 � � � $ 106,938 � � � $ 52,547 �
�
�
Ratios (excluding covered loans): � � � � � � � � � �
Non-covered loans held-in-portfolio $ 26,647,708 $ 26,507,889 $ 24,087,937
Non-performing loans held-in-portfolio to loans held-in-portfolio 2.20 % 2.31 % 2.52 %
Allowance for loan losses to loans held-in-portfolio 2.07 2.15 2.52
Allowance for loan losses to non-performing loans, excluding loans held-for-sale � � � � 93.93 � � � � 93.17 � � � � 100.03 �
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Refer to Table H for additional information.
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� � � � � � �
Provision for Loan Losses
�
(Unaudited) � � � Quarters ended
(In thousands) � � � 31-Mar-19 � � 31-Dec-18 � � 31-Mar-18
Provision (reversal) for loan losses:
BPPR $ 31,454 $ 43,461 $ 56,718
Popular U.S. � � � � 10,371 � � � (893 ) � � � 12,615
Total provision for loan losses - non-covered loans � � � $ 41,825 � � $ 42,568 � � � $ 69,333
Provision for loan losses - covered loans � � � � - � � � - � � � � 1,730
Total provision for loan losses � � � $ 41,825 � � $ 42,568 � � � $ 71,063
�
�
Credit Quality by Segment
(Unaudited)
(In thousands) � � � Quarters ended
BPPR � � � 31-Mar-19 � � 31-Dec-18 � � 31-Mar-18
Provision for loan losses � � � $ 31,454 � � $ 43,461 � � $ 56,718
Net charge-offs 54,229 96,479 41,227
Total non-performing loans held-in-portfolio, excluding covered loans 544,992 568,098 573,516
Allowance / non-covered loans held-in-portfolio � � � � 2.42 % � � � 2.55 % � � � 3.01 %
�
�
� � � � Quarters ended
Popular U.S. � � � 31-Mar-19 � � 31-Dec-18 � � 31-Mar-18
Provision (reversal) for loan losses $ 10,371 $ (893 ) $ 12,615
Net charge-offs 6,316 10,459 11,320
Total non-performing loans held-in-portfolio 41,210 42,989 33,280
Allowance / non-covered loans held-in-portfolio � � � � 1.00 % � � � 0.94 % � � � 1.16 %
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�
Financial Condition Highlights
� � � � � � �
(Unaudited) � � � � � � � � � �
(In thousands) � � � 31-Mar-19 � � 31-Dec-18 � � 31-Mar-18
Cash and money market investments $ 5,190,692 $ 4,565,083 $ 7,264,086
Investment securities 13,839,874 13,595,130 10,733,010
Loans not covered under loss-sharing agreements with the FDIC 26,647,708 26,507,889 24,087,937
Loans covered under loss-sharing agreements with the FDIC - - 514,611
Total assets 48,680,607 47,604,577 45,756,761
Deposits 40,879,838 39,710,039 37,134,093
Borrowings 1,377,401 1,537,673 2,130,465
Total liabilities 43,240,547 42,169,520 40,691,852
Stockholders’ equity � � � � 5,440,060 � � � 5,435,057 � � � 5,064,909
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Total assets increased by $1.1 billion from the fourth quarter of 2018, driven by:

Total liabilities increased by $1.1 billion from the fourth quarter of 2018, mainly due to:

Partially offset by:

Stockholders’ equity increased by approximately $5.0 million from the fourth quarter of 2018, principally due to the net income for the quarter of $167.9 million and lower unrealized losses on debt securities available-for-sale by $101.4 million, offset by other adjustments including the impact of the $250 million accelerated share repurchase transaction and declared dividends on common and preferred stock.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.39%, $55.78 and $48.58, respectively, at March 31, 2019, compared to 16.90%, $53.88 and $46.90 at December 31, 2018. 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 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, and in our Form 10-Q for the first quarter ended March 31, 2019 to be filed with the SEC. 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 Thursday, April 18, 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, May 17, 2019. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10129964.

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

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Popular, Inc.
Financial Supplement to First Quarter 2019 Earnings Release
�
Table A - Selected Ratios and Other Information
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Table B - Consolidated Statement of Operations
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Table C - Consolidated Statement of Financial Condition
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Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER
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Table E - Intentionally Left Blank (Consolidated Average Balances and Yield / Rate Analysis - YTD)
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Table F - Mortgage Banking Activities & Other Service Fees
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Table G - Loans and Deposits
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Table H - Non-Performing Assets
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Table I - Activity in Non-Performing Loans
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Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios
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Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED
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Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS
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Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - POPULAR U.S. OPERATIONS
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Table N - Reconciliation to GAAP Financial Measures
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POPULAR, INC.
Financial Supplement to First Quarter 2019 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
� � � � � � �
� � � � � � � � � � �
Quarters ended
� � � � 31-Mar-19 � � 31-Dec-18 � � 31-Mar-18
Basic EPS $ 1.69 $ 1.06 $ 0.89
Diluted EPS $ 1.69 $ 1.05 $ 0.89
Average common shares outstanding 98,581,743 99,933,184 101,696,343
Average common shares outstanding - assuming dilution 98,758,898 100,114,358 101,837,212
Common shares outstanding at end of period 96,629,891 99,942,845 102,189,914
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Market value per common share $ 52.13 $ 47.22 $ 41.62
�
Market capitalization - (In millions) $ 5,037 $ 4,719 $ 4,253
�
Return on average assets 1.40 % 0.88 % 0.84 %

�

�

Return on average common equity 12.17 % 7.57 % 7.06 %
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Net interest margin 4.20 % 4.25 % 3.89 %
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Common equity per share $ 55.78 $ 53.88 $ 49.07
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Tangible common book value per common share (non-GAAP) [1] $ 48.58 $ 46.90 $ 42.61
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Tangible common equity to tangible assets (non-GAAP) [1] 9.78 % 9.99 % 9.66 %
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Tier 1 capital 16.39 % 16.90 % 16.80 %
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Total capital 19.00 % 19.54 % 19.74 %
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Tier 1 leverage 9.57 % 9.88 % 9.98 %
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Common Equity Tier 1 capital � � � � 16.39 % � � � 16.90 % � � � 16.80 %
[1] Refer to Table N for reconciliation to GAAP financial measures.
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POPULAR, INC.
Financial Supplement to First Quarter 2019 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
� � � Quarters ended � � Variance � � Quarter ended � � Variance
(In thousands, except per share information) � � � 31-Mar-19 � � 31-Dec-18 � �

Q1 2019
vs. Q4 2018

� � 31-Mar-18 � �

Q1 2019
vs. Q1 2018

Interest income: � �
Loans $ 447,713 $ 455,238 $ (7,525 ) $ 373,584 $ 74,129
Money market investments 29,220 25,030 4,190 22,285 6,935
Investment securities � � � � 81,036 � � � � 79,287 � � � � 1,749 � � � � 57,209 � � � � 23,827 �
Total interest income � � � � 557,969 � � � � 559,555 � � � � (1,586 ) � � � 453,078 � � � � 104,891 �
Interest expense:
Deposits 70,826 65,215 5,611 38,688 32,138
Short-term borrowings 1,600 1,823 (223 ) 2,013 (413 )
Long-term debt � � � � 14,580 � � � � 16,292 � � � � (1,712 ) � � � 19,330 � � � � (4,750 )
Total interest expense � � � � 87,006 � � � � 83,330 � � � � 3,676 � � � � 60,031 � � � � 26,975 �
Net interest income 470,963 476,225 (5,262 ) 393,047 77,916
Provision for loan losses - non-covered loans 41,825 42,568 (743 ) 69,333 (27,508 )
Provision for loan losses - covered loans � � � � - � � � � - � � � � - � � � � 1,730 � � � � (1,730 )
Net interest income after provision for loan losses � � � � 429,138 � � � � 433,657 � � � � (4,519 ) � � � 321,984 � � � � 107,154 �
Service charges on deposit accounts 38,691 38,973 (282 ) 36,455 2,236
Other service fees 64,307 70,226 (5,919 ) 60,602 3,705
Mortgage banking activities 9,926 19,394 (9,468 ) 12,068 (2,142 )
Net gain (loss), including impairment, on equity securities 1,433 (2,039 ) 3,472 (646 ) 2,079
Net profit (loss) on trading account debt securities 260 91 169 (198 ) 458
Net gain on sale of loans, including valuation adjustments on loans held-for-sale - 33 (33 ) - -
Adjustments (expense) to indemnity reserves on loans sold (93 ) (6,477 ) 6,384 (2,926 ) 2,833
FDIC loss-share expense - - - (8,027 ) 8,027
Other operating income � � � � 21,906 � � � � 32,966 � � � � (11,060 ) � � � 16,169 � � � � 5,737 �
Total non-interest income � � � � 136,430 � � � � 153,167 � � � � (16,737 ) � � � 113,497 � � � � 22,933 �
Operating expenses:
Personnel costs
Salaries 84,450 86,569 (2,119 ) 78,397 6,053
Commissions, incentives and other bonuses 25,761 23,315 2,446 21,316 4,445
Pension, postretirement and medical insurance 9,761 11,698 (1,937 ) 9,929 (168 )
Other personnel costs, including payroll taxes � � � � 23,145 � � � � 51,465 � � � � (28,320 ) � � � 16,210 � � � � 6,935 �
Total personnel costs 143,117 173,047 (29,930 ) 125,852 17,265
Net occupancy expenses 23,537 24,500 (963 ) 22,802 735
Equipment expenses 19,705 18,504 1,201 17,206 2,499
Other taxes 11,662 12,583 (921 ) 10,902 760
Professional fees
Collections, appraisals and other credit related fees 3,724 4,043 (319 ) 3,058 666
Programming, processing and other technology services 60,178 55,089 5,089 51,305 8,873
Legal fees, excluding collections 3,489 4,118 (629 ) 5,763 (2,274 )
Other professional fees � � � � 20,075 � � � � 25,846 � � � � (5,771 ) � � � 22,859 � � � � (2,784 )
Total professional fees 87,466 89,096 (1,630 ) 82,985 4,481
Communications 5,849 5,765 84 5,906 (57 )
Business promotion 14,674 21,653 (6,979 ) 12,009 2,665
FDIC deposit insurance 4,806 5,223 (417 ) 6,920 (2,114 )
Loss on early extinguishment of debt - 12,522 (12,522 ) - -
Other real estate owned (OREO) expenses 2,677 2,310 367 6,131 (3,454 )
Credit and debit card processing, volume, interchange and other expenses 8,223 4,790 3,433 4,608 3,615
Other operating expenses
Operational losses 4,888 9,103 (4,215 ) 9,924 (5,036 )
All other � � � � 18,504 � � � � 15,006 � � � � 3,498 � � � � 14,432 � � � � 4,072 �
Total other operating expenses 23,392 24,109 (717 ) 24,356 (964 )
Amortization of intangibles � � � � 2,312 � � � � 2,353 � � � � (41 ) � � � 2,325 � � � � (13 )
Total operating expenses � � � � 347,420 � � � � 396,455 � � � � (49,035 ) � � � 322,002 � � � � 25,418 �
Income before income tax 218,148 190,369 27,779 113,479 104,669
Income tax expense � � � � 50,223 � � � � 83,966 � � � � (33,743 ) � � � 22,155 � � � � 28,068 �
Net income � � � $ 167,925 � � � $ 106,403 � � � $ 61,522 � � � $ 91,324 � � � $ 76,601 �
Net income applicable to common stock � � � $ 166,994 � � � $ 105,472 � � � $ 61,522 � � � $ 90,393 � � � $ 76,601 �
Net income per common share - basic � � � $ 1.69 � � � $ 1.06 � � � $ 0.63 � � � $ 0.89 � � � $ 0.80 �
Net income per common share - diluted � � � $ 1.69 � � � $ 1.05 � � � $ 0.64 � � � $ 0.89 � � � $ 0.80 �
Dividends Declared per Common Share � � � $ 0.30 � � � $ 0.25 � � � $ 0.05 � � � $ 0.25 � � � $ 0.05 �
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Popular, Inc.
Financial Supplement to First Quarter 2019 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
� � � � � � � � � Variance
Q1 2019 vs.
(In thousands) � � � 31-Mar-19 � � 31-Dec-18 � � 31-Mar-18 � � Q4 2018
Assets:
Cash and due from banks $ 376,558 $ 394,035 $ 280,077 $ (17,477 )
Money market investments 4,814,134 4,171,048 6,984,009 643,086
Trading account debt securities, at fair value 39,217 37,787 42,386 1,430
Debt securities available-for-sale, at fair value 13,542,695 13,300,184 10,420,589 242,511
Debt securities held-to-maturity, at amortized cost 99,455 101,575 104,817 (2,120 )
Equity securities 158,507 155,584 165,218 2,923
Loans held-for-sale, at lower of cost or fair value 43,985 51,422 77,701 (7,437 )
Loans held-in-portfolio:
Loans not covered under loss-sharing agreements with the FDIC 26,808,287 26,663,713 24,224,793 144,574
Loans covered under loss-sharing agreements with the FDIC - - 514,611 -
Less: Unearned income 160,579 155,824 136,856 4,755
Allowance for loan losses � � � � 550,628 � � � � 569,348 � � � � 640,578 � � � � (18,720 )
Total loans held-in-portfolio, net � � � � 26,097,080 � � � � 25,938,541 � � � � 23,961,970 � � � � 158,539 �
FDIC loss-share asset - - 44,469 -
Premises and equipment, net 557,517 569,808 544,109 (12,291 )
Other real estate not covered under loss-sharing agreements with the FDIC 125,478 136,705 153,061 (11,227 )
Other real estate covered under loss-sharing agreements with the FDIC - - 15,333 -
Accrued income receivable 162,797 166,022 157,340 (3,225 )
Mortgage servicing assets, at fair value 167,813 169,777 166,281 (1,964 )
Other assets 1,799,728 1,714,134 1,978,760 85,594
Goodwill 671,122 671,122 627,294 -
Other intangible assets � � � � 24,521 � � � � 26,833 � � � � 33,347 � � � � (2,312 )
Total assets � � � $ 48,680,607 � � � $ 47,604,577 � � � $ 45,756,761 � � � $ 1,076,030 �
Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing $ 9,046,104 $ 9,149,036 $ 8,698,610 $ (102,932 )
Interest bearing � � � � 31,833,734 � � � � 30,561,003 � � � � 28,435,483 � � � � 1,272,731 �
Total deposits � � � � 40,879,838 � � � � 39,710,039 � � � � 37,134,093 � � � � 1,169,799 �
Assets sold under agreements to repurchase 200,871 281,529 380,061 (80,658 )
Other short-term borrowings 42 42 186,200 -
Notes payable 1,176,488 1,256,102 1,564,204 (79,614 )
Other liabilities � � � � 983,308 � � � � 921,808 � � � � 1,427,294 � � � � 61,500 �
Total liabilities � � � � 43,240,547 � � � � 42,169,520 � � � � 40,691,852 � � � � 1,071,027 �
Stockholders’ equity:
Preferred stock 50,160 50,160 50,160 -
Common stock 1,043 1,043 1,043 -
Surplus 4,313,040 4,365,606 4,300,936 (52,566 )
Retained earnings 1,794,644 1,651,731 1,261,775 142,913
Treasury stock (394,848 ) (205,509 ) (86,167 ) (189,339 )
Accumulated other comprehensive loss, net of tax � � � � (323,979 ) � � � (427,974 ) � � � (462,838 ) � � � 103,995 �
Total stockholders’ equity � � � � 5,440,060 � � � � 5,435,057 � � � � 5,064,909 � � � � 5,003 �
Total liabilities and stockholders’ equity � � � $ 48,680,607 � � � $ 47,604,577 � � � $ 45,756,761 � � � $ 1,076,030 �
�
�
Popular, Inc.
Financial Supplement to First Quarter 2019 Earnings Release
Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER
(Unaudited)
�
� � � Quarters ended � � Variance
31-Mar-19 � � 31-Dec-18 � � 31-Mar-18 Q1 2019 vs. Q4 2018 � � Q1 2019 vs. Q1 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 $ 18,773 � � $ 110.3 � 2.37 % $ 18,278 � � $ 104.3 � 2.27 % $ 16,748 � � $ 79.5 � 1.91 % $ 495 � � $ 6.0 � � 0.10 % $ 2,025 � � $ 30.8 � � 0.46 %
Loans not covered under loss sharing agreements with the FDIC:
Commercial 12,064 178.3 5.99 11,967 182.1 6.04 11,469 161.5 5.71 97 (3.8 ) (0.05 ) 595 16.8 0.28
Construction 807 13.6 6.85 905 15.2 6.65 905 13.6 6.08 (98 ) (1.6 ) 0.20 (98 ) - 0.77
Mortgage 7,134 91.1 5.11 7,149 90.1 5.04 7,073 89.0 5.04 (15 ) 1.0 0.07 61 2.1 0.07
Consumer 2,814 82.8 11.93 2,815 83.6 11.78 2,885 78.1 10.98 (1 ) (0.8 ) 0.15 (71 ) 4.7 0.95
Auto 2,729 67.6 10.05 2,588 70.6 10.82 922 19.0 8.34 141 (3.0 ) (0.77 ) 1,807 48.6 1.71
Lease financing � 944 � � � 14.3 � 6.08 � � 913 � � � 13.6 � 5.97 � � 819 � � � 12.3 � 5.99 � � 31 � � � 0.7 � � 0.11 � � 125 � � � 2.0 � � 0.09 �
Total loans � 26,492 � � � 447.7 � 6.83 � � 26,337 � � � 455.2 � 6.87 � � 24,073 � � � 373.5 � 6.27 � � 155 � � � (7.5 ) � (0.04 ) � 2,419 � � � 74.2 � � 0.56 �
Total interest earning assets $ 45,265 � � $ 558.0 � 4.98 % $ 44,615 � � $ 559.5 � 4.99 % $ 40,821 � � $ 453.0 � 4.48 % $ 650 � � � (1.5 ) � (0.01 ) % $ 4,444 � � $ 105.0 � � 0.50 %
Allowance for loan losses (576 ) (621 ) (634 ) 45 58
Other non-interest earning assets � 3,938 � � 3,925 � � 4,063 � � 13 � � (125 )
Total average assets $ 48,627 � $ 47,919 � $ 44,250 � $ 708 � $ 4,377 �
�
Liabilities and Stockholders' Equity:
Interest bearing deposits:
NOW and money market $ 14,051 $ 33.8 0.97 % $ 13,848 $ 30.4 0.87 % $ 11,194 $ 11.5 0.42 % $ 203 $ 3.4 0.10 % $ 2,857 $ 22.3 0.55 %
Savings 9,847 9.9 0.41 9,728 9.9 0.40 8,744 5.2 0.24 119 - 0.01 1,103 4.7 0.17
Time deposits � 7,676 � � � 27.1 � 1.43 � � 7,419 � � � 24.9 � 1.33 � � 7,697 � � � 22.0 � 1.16 � � 257 � � � 2.2 � � 0.10 � � (21 ) � � 5.1 � � 0.27 �
Total interest-bearing deposits 31,574 70.8 0.91 30,995 65.2 0.83 27,635 38.7 0.57 579 5.6 0.08 3,939 32.1 0.34
Borrowings � 1,469 � � � 16.2 � 4.44 � � 1,658 � � � 18.1 � 4.38 � � 2,041 � � � 21.3 � 4.21 � � (189 ) � � (1.9 ) � 0.06 � � (572 ) � � (5.1 ) � 0.23 �
Total interest-bearing liabilities � 33,043 � � � 87.0 � 1.07 � � 32,653 � � � 83.3 � 1.01 � � 29,676 � � � 60.0 � 0.82 � � 390 � � � 3.7 � � 0.06 � � 3,367 � � � 27.0 � � 0.25 �
Net interest spread 3.91 % 3.98 % 3.66 % (0.07 ) % 0.25 %
Non-interest bearing deposits 8,953 8,895 8,434 58 519
Other liabilities 1,016 799 898 217 118
Stockholders' equity � 5,615 � � 5,572 � � 5,242 � � 43 � � 373 �
Total average liabilities and stockholders' equity $ 48,627 � $ 47,919 � $ 44,250 � $ 708 � $ 4,377 �
�
Net interest income / margin non-taxable equivalent basis $ 471.0 � 4.20 % $ 476.2 � 4.25 % $ 393.0 � 3.89 % � ($5.2 ) � (0.05 ) % $ 78.0 � � 0.31 %
�
�
Popular, Inc.
Financial Supplement to First Quarter 2019 Earnings Release
Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE
�
�
Popular, Inc.
Financial Supplement to First Quarter 2019 Earnings Release
Table F - Mortgage Banking Activities and Other Service Fees
(Unaudited)
�
Mortgage Banking Activities � � � � � � � � � � �
Quarters ended Variance
(In thousands) � � � 31-Mar-19 � � 31-Dec-18 � � 31-Mar-18 � �

Q1 2019
vs.Q4 2018

� �

Q1 2019
vs.Q1 2018

Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees $ 11,687 $ 12,327 $ 12,456 $ (640 ) $ (769 )
Mortgage servicing rights fair value adjustments � � � � (3,825 ) � � � 4,646 � � � � (4,307 ) � � � (8,471 ) � � � 482 �
Total mortgage servicing fees, net of fair value adjustments � � � � 7,862 � � � � 16,973 � � � � 8,149 � � � � (9,111 ) � � � (287 )
Net gain on sale of loans, including valuation on loans held-for-sale � � � � 4,017 � � � � 2,893 � � � � 1,057 � � � � 1,124 � � � � 2,960 �
Trading account (loss) profit:
Unrealized losses on outstanding derivative positions - (122 ) (221 ) 122 221
Realized (losses) gains on closed derivative positions � � � � (1,953 ) � � � (350 ) � � � 3,083 � � � � (1,603 ) � � � (5,036 )
Total trading account (loss) profit � � � � (1,953 ) � � � (472 ) � � � 2,862 � � � � (1,481 ) � � � (4,815 )
Total mortgage banking activities � � � $ 9,926 � � � $ 19,394 � � � $ 12,068 � � � $ (9,468 ) � � $ (2,142 )
�
Other Service Fees
Quarters ended Variance
(In thousands) � � � 31-Mar-19 � � 31-Dec-18 � � 31-Mar-18 � �

Q1 2019
vs.Q4 2018

� �

Q1 2019
vs.Q1 2018

Other service fees:
Debit card fees $ 11,170 $ 11,868 $ 11,638 $ (698 ) $ (468 )
Insurance fees 12,791 14,362 12,599 (1,571 ) 192
Credit card fees 22,286 23,827 21,683 (1,541 ) 603
Sale and administration of investment products 5,259 5,824 5,355 (565 ) (96 )
Trust fees 4,716 4,677 5,097 39 (381 )
Other fees � � � � 8,085 � � � � 9,668 � � � � 4,230 � � � � (1,583 ) � � � 3,855 �
Total other service fees � � � $ 64,307 � � � $ 70,226 � � � $ 60,602 � � � $ (5,919 ) � � $ 3,705 �
�
�
Popular, Inc.
Financial Supplement to First Quarter 2019 Earnings Release
Table G - Loans and Deposits
(Unaudited)
�
Loans - Ending Balances � � � � � � � � � � �
Variance
(In thousands) � � � 31-Mar-19 � � 31-Dec-18 � � 31-Mar-18 � �

Q1 2019 vs.
Q4 2018

� �

Q1 2019 vs.
Q1 2018

Loans not covered under FDIC loss-sharing agreements:
Commercial $ 12,058,310 $ 12,043,019 $ 11,468,507 $ 15,291 $ 589,803
Construction 791,320 779,449 893,391 11,871 (102,071 )
Legacy [1] 24,404 25,949 31,167 (1,545 ) (6,763 )
Lease financing 963,232 934,773 838,383 28,459 124,849
Mortgage 7,207,180 7,235,258 7,064,644 (28,078 ) 142,536
Auto 2,742,095 2,608,785 886,474 133,310 1,855,621
Consumer � � � � 2,861,167 � � � 2,880,656 � � � 2,905,371 � � � (19,489 ) � � � (44,204 )
Total non-covered loans held-in-portfolio $ 26,647,708 $ 26,507,889 $ 24,087,937 $ 139,819 $ 2,559,771
Loans covered under FDIC loss-sharing agreements � � � � - � � � - � � � 514,611 � � � - � � � � (514,611 )
Total loans held-in-portfolio � � � $ 26,647,708 � � $ 26,507,889 � � $ 24,602,548 � � $ 139,819 � � � $ 2,045,160 �
Loans held-for-sale:
Mortgage � � � � 43,985 � � � 51,422 � � � 77,701 � � � (7,437 ) � � � (33,716 )
Total loans held-for-sale � � � $ 43,985 � � $ 51,422 � � $ 77,701 � � $ (7,437 ) � � $ (33,716 )
Total loans � � � $ 26,691,693 � � $ 26,559,311 � � $ 24,680,249 � � $ 132,382 � � � $ 2,011,444 �
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.
�
Deposits - Ending Balances
Variance
(In thousands) � � � 31-Mar-19 � � 31-Dec-18 � � 31-Mar-18 � �

Q1 2019 vs. Q4
2018

� �

Q1 2019 vs.Q1
2018

Demand deposits [1] $ 16,871,924 $ 16,077,023 $ 12,698,538 $ 794,901 $ 4,173,386
Savings, NOW and money market deposits (non-brokered) 15,806,355 15,616,247 16,225,871 190,108 (419,516 )
Savings, NOW and money market deposits (brokered) 395,795 400,004 414,441 (4,209 ) (18,646 )
Time deposits (non-brokered) 7,724,161 7,500,544 7,655,903 223,617 68,258
Time deposits (brokered CDs) � � � � 81,603 � � � 116,221 � � � 139,340 � � � (34,618 ) � � � (57,737 )
Total deposits � � � $ 40,879,838 � � $ 39,710,039 � � $ 37,134,093 � � $ 1,169,799 � � � $ 3,745,745 �
[1] Includes interest and non-interest bearing demand deposits.
�
�
Popular, Inc.
Financial Supplement to First Quarter 2019 Earnings Release
Table H - Non-Performing Assets
(Unaudited)
� � � � � � � � � � � � � � � Variance
(Dollars in thousands) � � � 31-Mar-19 � �

As a % of
loans HIP by
category

� � 31-Dec-18 � �

As a % of
loans HIP by
category

� � 31-Mar-18 � �

As a % of
loans HIP by
category

� �

Q1 2019 vs.
Q4 2018

� �

Q1 2019 vs.
Q1 2018

Non-accrual loans: � �
Commercial $ 169,154 1.4 % $ 184,026 1.5 % $ 158,279 1.4 % $ (14,872 ) $ 10,875
Construction 13,848 1.7 13,848 1.8 4,293 0.5 - 9,555
Legacy [1] 2,583 10.6 2,627 10.1 3,137 10.1 (44 ) (554 )
Lease financing 2,525 0.3 3,313 0.4 3,957 0.5 (788 ) (1,432 )
Mortgage 327,658 4.5 334,598 4.6 369,614 5.2 (6,940 ) (41,956 )
Auto 25,162 0.9 24,050 0.9 13,356 1.5 1,112 11,806
Consumer � � � � 45,272 � � � 1.6 � � � � 48,625 � � � 1.7 � � � � 54,160 � � � 1.9 � � � � (3,353 ) � � � (8,888 )

Total non-performing loans held-in- portfolio, excluding covered loans

586,202 2.2 % 611,087 2.3 % 606,796 2.5 % (24,885 ) (20,594 )

Other real estate owned (“OREO”), excluding covered OREO

� � � � 125,478 � � � � � � � 136,705 � � � � � � � 153,061 � � � � � � � (11,227 ) � � � (27,583 )

Total non-performing assets, excluding covered assets

711,680 747,792 759,857 (36,112 ) (48,177 )
Covered loans and OREO � � � � - � � � � � � � - � � � � � � � 18,928 � � � � � � � - � � � � (18,928 )
Total non-performing assets [2] � � � $ 711,680 � � � � � � $ 747,792 � � � � � � $ 778,785 � � � � � � $ (36,112 ) � � $ (67,105 )
Accruing loans past due 90 days or more [3] [4] � � � $ 550,717 � � � � � � $ 612,543 � � � � � � $ 1,129,792 � � � � � � $ (61,826 ) � � $ (579,075 )
Ratios excluding covered loans:

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

2.20

%

�

2.31

%

�

2.52

%

�

Allowance for loan losses to loans held-in-portfolio

2.07 2.15 2.52

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

� � � � 93.93 � � � � � � � 93.17 � � � � � � � 100.03 � � � � � � � � � �
Ratios including covered loans:
Non-performing assets to total assets

1.46

%

�

1.57

%

�

1.70

%

�

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

2.20 2.31 2.48

Allowance for loan losses to loans held-in-portfolio

2.07 2.15 2.60

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

� � � � 93.93 � � � � � � � 93.17 � � � � � � � 104.95 � � � � � � � � � �
[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 March 31, 2019, December 31, 2018 and March 31, 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 $106 million (December 31, 2018 - $134 million; March 31, 2018 - $535 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 $292 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2019 (December 31, 2018 - $283 million; March 31, 2018 - $194 million). Furthermore, the Corporation has approximately $67 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 (December 31, 2018 - $69 million; March 31, 2018 - $57 million).
�
[4] The carrying value of loans accounted for under ASC Subtopic 310-30 that are contractually 90 days or more past due was $257 million at March 31, 2019 (December 31, 2018 - $216 million; March 31, 2018 - $274 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 First Quarter 2019 Earnings Release
Table I - Activity in Non-Performing Loans
(Unaudited)
�
Commercial loans held-in-portfolio: � � � � � � � � � � � � � � � � � � �
� � � Quarter ended � � Quarter ended
31-Mar-19 � � 31-Dec-18
(In thousands) � � � BPPR � � Popular U.S. � � Popular, Inc. � � BPPR � � Popular U.S. � � Popular, Inc.
Beginning balance NPLs $ 182,950 � � $ 1,076 � � $ 184,026 $ 171,271 � � $ 1,414 � � $ 172,685
Plus:
New non-performing loans 10,554 2,220 12,774 25,366 1,158 26,524
Less:
Non-performing loans transferred to OREO (962 ) - (962 ) (1,075 ) - (1,075 )
Non-performing loans charged-off (17,918 ) (50 ) (17,968 ) (3,482 ) (32 ) (3,514 )

Loans returned to accrual status / loan collections

� � � � (8,331 ) � � � (385 ) � � � (8,716 ) � � � (9,130 ) � � � (1,464 ) � � � (10,594 )
Ending balance NPLs � � � $ 166,293 � � � $ 2,861 � � � $ 169,154 � � � $ 182,950 � � � $ 1,076 � � � $ 184,026 �
�
Construction loans held-in-portfolio:
Quarter ended Quarter ended
31-Mar-19 � � 31-Dec-18
(In thousands) � � � BPPR � � Popular U.S. � � Popular, Inc. � � BPPR � � Popular U.S. � � Popular, Inc.
Beginning balance NPLs $ 1,788 $ 12,060 $ 13,848 $ 1,829 $ 17,866 $ 19,695
Less:
Non-performing loans charged-off - - - - (5,806 ) (5,806 )
Loans returned to accrual status / loan collections � � � � - � � � � - � � � � - � � � � (41 ) � � � - � � � � (41 )
Ending balance NPLs � � � $ 1,788 � � � $ 12,060 � � � $ 13,848 � � � $ 1,788 � � � $ 12,060 � � � $ 13,848 �
�
Mortgage loans held-in-portfolio:
Quarter ended Quarter ended
31-Mar-19 � � 31-Dec-18
(In thousands) � � � BPPR � � Popular U.S. � � Popular, Inc. � � BPPR � � Popular U.S. � � Popular, Inc.
Beginning balance NPLs $ 323,565 $ 11,033 $ 334,598 $ 348,779 $ 12,306 $ 361,085
Plus:
New non-performing loans 47,228 1,820 49,048 46,187 2,352 48,539
Advances on existing non-performing loans - 72 72 - 98 98
Less:
Non-performing loans transferred to OREO (3,155 ) (124 ) (3,279 ) (15,258 ) (503 ) (15,761 )
Non-performing loans charged-off (5,734 ) (197 ) (5,931 ) (9,376 ) (56 ) (9,432 )
Loans returned to accrual status / loan collections � � � � (44,054 ) � � � (2,796 ) � � � (46,850 ) � � � (46,767 ) � � � (3,164 ) � � � (49,931 )
Ending balance NPLs � � � $ 317,850 � � � $ 9,808 � � � $ 327,658 � � � $ 323,565 � � � $ 11,033 � � � $ 334,598 �
�
�
Total non-performing loans held-in-portfolio (excluding consumer):
Quarter ended Quarter ended
31-Mar-19 � � 31-Dec-18
(In thousands) � � � BPPR � � Popular U.S. � � Popular, Inc. � � BPPR � � Popular U.S. � � Popular, Inc.
Beginning balance NPLs $ 508,303 $ 26,796 $ 535,099 $ 521,879 $ 34,989 $ 556,868
Plus:
New non-performing loans 57,782 4,250 62,032 71,553 3,568 75,121
Advances on existing non-performing loans - 79 79 - 114 114
Less:
Non-performing loans transferred to OREO (4,117 ) (124 ) (4,241 ) (16,333 ) (503 ) (16,836 )
Non-performing loans charged-off (23,652 ) (247 ) (23,899 ) (12,858 ) (5,881 ) (18,739 )
Loans returned to accrual status / loan collections � � � � (52,385 ) � � � (3,442 ) � � � (55,827 ) � � � (55,938 ) � � � (5,491 ) � � � (61,429 )
Ending balance NPLs [1] � � � $ 485,931 � � � $ 27,312 � � � $ 513,243 � � � $ 508,303 � � � $ 26,796 � � � $ 535,099 �
[1] Includes $2.6 million of NPLs related to the legacy portfolio as of March 31, 2019 (December 31, 2018 - $2.6 million).
�
�
Popular, Inc.
Financial Supplement to First Quarter 2019 Earnings Release
Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)
�
�
� � � Quarter ended � � Quarter ended � � Quarter ended
� � � � 31-Mar-19 � � 31-Dec-18 � � 31-Mar-18
(Dollars in thousands) � � � Total � � Total � �

Non-covered
loans

� � Covered loans � � Total
Balance at beginning of period $ 569,348 $ 633,718 $ 590,182 � � $ 33,244 � � $ 623,426
Provision for loan losses � � � � 41,825 � � � � 42,568 � � � � 69,333 � � � � 1,730 � � � 71,063 �
� � � � � 611,173 � � � � 676,286 � � � � 659,515 � � � � 34,974 � � � 694,489 �
Net loans charged-off (recovered):
BPPR
Commercial 16,594 51,659 3,943 - 3,943
Construction (17 ) (720 ) (208 ) - (208 )
Lease financing 1,486 1,323 1,993 - 1,993
Mortgage 11,183 18,041 13,244 1,364 14,608
Consumer � � � � 24,983 � � � � 26,176 � � � � 22,255 � � � � - � � � 22,255 �
Total BPPR � � � � 54,229 � � � � 96,479 � � � � 41,227 � � � � 1,364 � � � 42,591 �
�
Popular U.S.
Commercial 2,834 1,081 6,830 - 6,830
Construction (8 ) 5,806 - - -
Legacy [1] (715 ) (739 ) (331 ) - (331 )
Mortgage 229 (82 ) (304 ) - (304 )
Consumer � � � � 3,976 � � � � 4,393 � � � � 5,125 � � � � - � � � 5,125 �
Total Popular U.S. � � � � 6,316 � � � � 10,459 � � � � 11,320 � � � � - � � � 11,320 �
Total loans charged-off - Popular, Inc. � � � � 60,545 � � � � 106,938 � � � � 52,547 � � � � 1,364 � � � 53,911 �
Balance at end of period � � � $ 550,628 � � � $ 569,348 � � � $ 606,968 � � � $ 33,610 � � $ 640,578 �
�
POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio 0.92 % 1.63 % 0.90 % 0.90 %
Provision for loan losses to net charge-offs 69.08 % 39.81 % 131.94 % 131.82 %
�
BPPR
Annualized net charge-offs to average loans held-in-portfolio 1.09 % 1.96 % 0.96 % 0.96 %

Provision for loan losses to net charge-offs

58.00 % 45.05 % 137.57 % 137.23 %
�
Popular U.S.
Annualized net charge-offs to average loans held-in-portfolio 0.38 % 0.63 % 0.72 %
Provision for loan losses to net charge-offs � � � � 164.20 % � � � (8.54 )% � � � � � � � � � 111.44 %
[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 First Quarter 2019 Earnings Release
Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED
(Unaudited)
� � � � � � � � � � � � � � �
� � � � � � � � � � � � � � � � � � � � � � �
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.
�
� � � � � � � � � � � � � � � � � � � � � � �
31-Dec-18
(Dollars in thousands) � � � Commercial � � Construction � � Legacy [1] � � Mortgage � �

Lease
financing

� � Consumer � � Total
Specific ALLL $ 52,190 $ 56 $ - $ 41,211 $ 320 $ 25,893 $ 119,670
Impaired loans $ 398,518 $ 13,848 $ - $ 518,888 $ 1,099 $ 112,742 $ 1,045,095
Specific ALLL to impaired loans � � � � 13.10 % � � � 0.40 % � � � - % � � � 7.94 % � � � 29.12 % � � � 22.97 % � � � 11.45 %
General ALLL $ 186,925 $ 7,368 $ 969 $ 106,201 $ 11,166 $ 137,049 $ 449,678
Loans held-in-portfolio, excluding impaired loans $ 11,644,501 $ 765,601 $ 25,949 $ 6,716,370 $ 933,674 $ 5,376,699 $ 25,462,794
General ALLL to loans held-in-portfolio, excluding impaired loans � � � � 1.61 % � � � 0.96 % � � � 3.73 % � � � 1.58 % � � � 1.20 % � � � 2.55 % � � � 1.77 %
Total ALLL $ 239,115 $ 7,424 $ 969 $ 147,412 $ 11,486 $ 162,942 $ 569,348
Total loans held-in-portfolio $ 12,043,019 $ 779,449 $ 25,949 $ 7,235,258 $ 934,773 $ 5,489,441 $ 26,507,889
ALLL to loans held-in-portfolio � � � � 1.99 % � � � 0.95 % � � � 3.73 % � � � 2.04 % � � � 1.23 % � � � 2.97 % � � � 2.15 %
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. reportable segment.
�
Variance
(Dollars in thousands) � � � Commercial � � Construction � � Legacy � � Mortgage � �

Lease
financing

� � Consumer � � Total
Specific ALLL $ (18,714 ) $ (37 ) $ - $ 1,928 $ 1 $ (890 ) $ (17,712 )
Impaired loans � � � $ (15,024 ) � � $ - � � � $ - � � � $ 5,915 � � � $ (81 ) � � $ (1,868 ) � � $ (11,058 )
General ALLL $ 4,088 $ 109 $ (140 ) $ (7,042 ) $ (2,378 ) $ 4,355 $ (1,008 )
Loans held-in-portfolio, excluding impaired loans � � � $ 30,315 � � � $ 11,871 � � � $ (1,545 ) � � $ (33,993 ) � � $ 28,540 � � � $ 115,689 � � � $ 150,877 �
Total ALLL $ (14,626 ) $ 72 $ (140 ) $ (5,114 ) $ (2,377 ) $ 3,465 $ (18,720 )
Total loans held-in-portfolio � � � $ 15,291 � � � $ 11,871 � � � $ (1,545 ) � � $ (28,078 ) � � $ 28,459 � � � $ 113,821 � � � $ 139,819 �
�
�
Popular, Inc.
Financial Supplement to First Quarter 2019 Earnings Release
Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS
(Unaudited)
�
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 loans $ 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 �
�
�
31-Dec-18
Puerto Rico
(In thousands) � � � Commercial � � Construction � � Mortgage � � Lease financing � � Consumer � � Total
Allowance for credit losses:
Specific ALLL $ 52,190 $ 56 $ 38,760 $ 320 $ 24,083 $ 115,409
General ALLL � � � � 155,024 � � � � 830 � � � � 104,218 � � � � 11,166 � � � � 120,511 � � � � 391,749 �
Total ALLL � � � $ 207,214 � � � $ 886 � � � $ 142,978 � � � $ 11,486 � � � $ 144,594 � � � $ 507,158 �
Loans held-in-portfolio:
Impaired $ 398,518 $ 1,788 $ 509,468 $ 1,099 $ 104,235 $ 1,015,108
Loans held-in-portfolio, excluding impaired loans � � � � 6,974,125 � � � � 84,167 � � � � 5,923,855 � � � � 933,674 � � � � 4,952,543 � � � � 18,868,364 �
Total loans held-in-portfolio � � � $ 7,372,643 � � � $ 85,955 � � � $ 6,433,323 � � � $ 934,773 � � � $ 5,056,778 � � � $ 19,883,472 �
�
� � � � � � � � � � � � � � � � � � � �
Variance
(In thousands) � � � Commercial � � Construction � � Mortgage � � Lease financing � � Consumer � � Total
Allowance for credit losses:
Specific ALLL $ (18,937 ) $ (37 ) $ 2,019 $ 1 $ (733 ) $ (17,687 )
General ALLL � � � � 654 � � � � (27 ) � � � (7,141 ) � � � (2,378 ) � � � 3,804 � � � � (5,088 )
Total ALLL � � � $ (18,283 ) � � $ (64 ) � � $ (5,122 ) � � $ (2,377 ) � � $ 3,071 � � � $ (22,775 )
Loans held-in-portfolio:
Impaired $ (16,715 ) $ - $ 5,897 $ (81 ) $ (2,348 ) $ (13,247 )
Loans held-in-portfolio, excluding impaired loans � � � � 35,194 � � � � 5,417 � � � � (63,632 ) � � � 28,540 � � � � 120,606 � � � � 126,125 �
Total loans held-in-portfolio � � � $ 18,479 � � � $ 5,417 � � � $ (57,735 ) � � $ 28,459 � � � $ 118,258 � � � $ 112,878 �
�
�
Popular, Inc.
Financial Supplement to First Quarter 2019 Earnings Release
Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - POPULAR U.S. OPERATIONS
(Unaudited)
�
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 �
�
�
31-Dec-18
Popular U.S.
(In thousands) � � � Commercial � � Construction � � Legacy � � Mortgage � � Consumer � � Total
Allowance for credit losses:
Specific ALLL $ - $ - $ - $ 2,451 $ 1,810 $ 4,261
General ALLL � � � � 31,901 � � � � 6,538 � � � 969 � � � � 1,983 � � � � 16,538 � � � � 57,929 �
Total ALLL � � � $ 31,901 � � � $ 6,538 � � $ 969 � � � $ 4,434 � � � $ 18,348 � � � $ 62,190 �
Loans held-in-portfolio:
Impaired loans $ - $ 12,060 $ - $ 9,420 $ 8,507 $ 29,987
Loans held-in-portfolio, excluding impaired loans � � � � 4,670,376 � � � � 681,434 � � � 25,949 � � � � 792,515 � � � � 424,156 � � � � 6,594,430 �
Total loans held-in-portfolio � � � $ 4,670,376 � � � $ 693,494 � � $ 25,949 � � � $ 801,935 � � � $ 432,663 � � � $ 6,624,417 �
�
� � � � � � � � � � � � � � � � � � � �
Variance
(In thousands) � � � Commercial � � Construction � � Legacy � � Mortgage � � Consumer � � Total
Allowance for credit losses:
Specific ALLL $ 223 $ - $ - $ (91 ) $ (157 ) $ (25 )
General ALLL � � � � 3,434 � � � � 136 � � � (140 ) � � � 99 � � � � 551 � � � � 4,080 �
Total ALLL � � � $ 3,657 � � � $ 136 � � $ (140 ) � � $ 8 � � � $ 394 � � � $ 4,055 �
Loans held-in-portfolio:
Impaired loans $ 1,691 $ - $ - $ 18 $ 480 $ 2,189
Loans held-in-portfolio, excluding impaired loans � � � � (4,879 ) � � � 6,454 � � � (1,545 ) � � � 29,639 � � � � (4,917 ) � � � 24,752 �
Total loans held-in-portfolio � � � $ (3,188 ) � � $ 6,454 � � $ (1,545 ) � � $ 29,657 � � � $ (4,437 ) � � $ 26,941 �
�
�
Popular, Inc.
Financial Supplement to First Quarter 2019 Earnings Release
Table N - Reconciliation to GAAP Financial Measures
(Unaudited)
�
�
(In thousands, except share or per share information) � � � 31-Mar-19 � � 31-Dec-18 � � 31-Mar-18
Total stockholders’ equity � � � $ 5,440,060 � � $ 5,435,057 � � $ 5,064,909
Less: Preferred stock (50,160 ) (50,160 ) (50,160 )
Less: Goodwill (671,122 ) (671,122 ) (627,294 )
Less: Other intangibles � � � � (24,521 ) � � � (26,833 ) � � � (33,347 )
Total tangible common equity � � � $ 4,694,257 � � � $ 4,686,942 � � � $ 4,354,108 �
Total assets $ 48,680,607 $ 47,604,577 $ 45,756,761
Less: Goodwill (671,122 ) (671,122 ) (627,294 )
Less: Other intangibles � � � � (24,521 ) � � � (26,833 ) � � � (33,347 )
Total tangible assets � � � $ 47,984,964 � � � $ 46,906,622 � � � $ 45,096,120 �
Tangible common equity to tangible assets 9.78 % 9.99 % 9.66 %
Common shares outstanding at end of period 96,629,891 99,942,845 102,189,914
Tangible book value per common share � � � $ 48.58 � � � $ 46.90 � � � $ 42.61 �

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

Source: Popular, Inc.

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