Allowance for credit losses - loans held-in-portfolio

9 Months Ended

Sep. 30, 2023

Allowance for credit losses [Abstract]

Allowance for credit losses

Note 9 – Allowance for credit losses – loans held-in-portfolio

The

Corporation follows the current expected credit loss (“CECL”) model, to establish and evaluate the adequacy of the ACL to

provide for expected losses in the loan portfolio. This model establishes a forward-looking methodology that reflects the expected

credit losses over the lives of financial assets, starting when such assets are first acquired or originated. In addition, CECL provides

that the initial ACL on purchased credit deteriorated (“PCD”) financial assets be recorded as an increase to the purchase price, with

subsequent changes to the allowance recorded as a credit loss expense. The provision for credit losses recorded in current

operations is based on this methodology. Loan losses are charged and recoveries are credited to the ACL. The Corporation’s

modeling framework includes competing risk models that generate lifetime default and prepayment estimates as well as other loan

level techniques to estimate loss severity. These models combine credit risk factors, which include the impact of loan modifications,

with macroeconomic expectations to derive the lifetime expected loss. 

As part of the Corporation’s model governance procedures a new model was implemented for the U.S commercial real estate

segment. The new model enhances techniques used to capture default activity within the Corporation’s geographical footprint. As

part of the implementation analysis management evaluated the credit metrics of the portfolio such as risk ratings, delinquency

levels, and low exposure to the commercial office sector. Qualitative reserves continue to be maintained to address risks within the

U. S. commercial real estate segment. The new model including qualitative reserve accounted for $

15

 million of PB’s reduction in

ACL.

At September 30,2023, the Corporation estimated the ACL by weighting the outputs of optimistic, baseline, and pessimistic

scenarios. Among the three scenarios used to estimate the ACL, the baseline is assigned the highest probability, followed by the

pessimistic scenario given the uncertainties in the economic outlook and downside risk. The weightings applied are subject to

evaluation on a quarterly basis as part of the ACL’s governance process. The baseline scenario continues to be assigned the

highest probability, followed by the pessimistic scenario, and then the optimistic scenario. The Corporation evaluates, at least on an

annual basis, the assumptions tied to the CECL accounting framework. These include the reasonable and supportable period as

well as the reversion window.

The 2023 annualized GDP growth in the baseline scenario improved to 1.7% and 2.0% for Puerto Rico and the United States,

respectively, compared to 1.5% and 1.6% in the previous quarter. The 2023 forecasted average unemployment rate for Puerto Rico

improved to 6.1% from 6.3% in the previous forecast, while in the United States unemployment levels remained at 3.6%, stable

when compared to the previous forecast.

GDP growth is expected to slow during 2024 for both regions, when compared to 2023, as a result of the Fed’s monetary policy.

2024 GDP growth is expected to be 0.90% for Puerto Rico and 1.25% for the United States. The average 2024 unemployment rate

is expected to increase to 6.80% in Puerto Rico and 4.03% in the United States.

The following tables present the changes in the ACL of loans held-in-portfolio and unfunded commitments for the quarters and nine

months ended September 30, 2023 and 2022.

For the quarter ended September 30, 2023

BPPR

Provision for

Allowance for

Beginning

credit losses

credit losses -

Ending

(In thousands)

Balance

(benefit)

PCD Loans

Charge-offs

Recoveries

Balances

Allowance for credit losses - loans:

Commercial

Commercial multi-family

$

4,787

$

(1,306)

$

-

$

-

$

-

$

3,481

Commercial real estate non-owner occupied

53,366

(326)

-

(27)

195

53,208

Commercial real estate owner occupied

41,901

(242)

-

(446)

280

41,493

Commercial and industrial

81,637

(4,605)

-

(2,311)

12,858

87,579

Total Commercial

181,691

(6,479)

-

(2,784)

13,333

185,761

Construction

9,554

(1,486)

-

(2,611)

-

5,457

Mortgage

82,899

(6,808)

9

(62)

3,862

79,900

Leasing

13,927

(2,287)

-

(2,292)

850

10,198

Consumer

 Credit cards

71,408

9,773

-

(10,865)

2,234

72,550

 Home equity lines of credit

96

(39)

-

(43)

73

87

 Personal

96,046

28,964

-

(19,260)

1,957

107,707

 Auto

134,247

30,880

-

(14,553)

4,862

155,436

 Other

6,240

1,499

-

(494)

193

7,438

Total Consumer

308,037

71,077

-

(45,215)

9,319

343,218

Total - Loans

$

596,108

$

54,017

$

9

$

(52,964)

$

27,364

$

624,534

Allowance for credit losses - unfunded commitments:

Commercial

$

5,288

$

(400)

$

-

$

-

$

-

$

4,888

Construction

3,110

(1,768)

-

-

-

1,342

Ending balance - unfunded commitments [1]

$

8,398

$

(2,168)

$

-

$

-

$

-

$

6,230

[

1

]

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

For the quarter ended September 30, 2023

Popular U.S.

Provision for 

Beginning

credit losses -

Ending

(In thousands)

Balance

(benefit)

Charge-offs

Recoveries

Balance

Allowance for credit losses - loans:

Commercial

Commercial multi-family

$

21,392

$

(9,651)

$

-

$

1

$

11,742

Commercial real estate non-owner occupied

18,350

(4,475)

-

66

13,941

Commercial real estate owner occupied

9,506

(1,688)

(1,218)

16

6,616

Commercial and industrial

18,014

(1,109)

(1,228)

329

16,006

Total Commercial

67,262

(16,923)

(2,446)

412

48,305

Construction

1,778

3,736

-

-

5,514

Mortgage

13,194

(1,252)

-

62

12,004

Consumer

 Home equity lines of credit

2,074

238

(224)

212

2,300

 Personal

19,782

3,659

(5,636)

604

18,409

 Other

2

39

(43)

4

2

Total Consumer

21,858

3,936

(5,903)

820

20,711

Total - Loans

$

104,092

$

(10,503)

$

(8,349)

$

1,294

$

86,534

Allowance for credit losses - unfunded commitments:

Commercial

$

1,348

$

197

$

-

$

-

$

1,545

Construction

1,797

3,658

-

-

5,455

Consumer

50

4

-

-

54

Ending balance - unfunded commitments [1]

$

3,195

$

3,859

$

-

$

-

$

7,054

[1]

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

For the quarter ended September 30, 2023

Popular Inc.

Provision for

Allowance

for

Beginning

credit losses

credit losses -

Ending

(In thousands)

Balance

(benefit)

PCD Loans

Charge-offs

Recoveries

Balance

Allowance for credit losses - loans:

Commercial

Commercial multi-family

$

26,179

$

(10,957)

$

-

$

-

$

1

$

15,223

Commercial real estate non-owner occupied

71,716

(4,801)

-

(27)

261

67,149

Commercial real estate owner occupied

51,407

(1,930)

-

(1,664)

296

48,109

Commercial and industrial

99,651

(5,714)

-

(3,539)

13,187

103,585

Total Commercial

248,953

(23,402)

-

(5,230)

13,745

234,066

Construction

11,332

2,250

-

(2,611)

-

10,971

Mortgage

96,093

(8,060)

9

(62)

3,924

91,904

Leasing

13,927

(2,287)

-

(2,292)

850

10,198

Consumer

 Credit cards

71,408

9,773

-

(10,865)

2,234

72,550

 Home equity lines of credit

2,170

199

-

(267)

285

2,387

 Personal

115,828

32,623

-

(24,896)

2,561

126,116

 Auto

134,247

30,880

-

(14,553)

4,862

155,436

 Other

6,242

1,538

-

(537)

197

7,440

Total Consumer

329,895

75,013

-

(51,118)

10,139

363,929

Total - Loans

$

700,200

$

43,514

$

9

$

(61,313)

$

28,658

$

711,068

Allowance for credit losses - unfunded commitments:

Commercial

$

6,636

$

(203)

$

-

$

-

$

-

$

6,433

Construction

4,907

1,890

-

-

-

6,797

Consumer

50

4

-

-

-

54

Ending balance - unfunded commitments [1]

$

11,593

$

1,691

$

-

$

-

$

-

$

13,284

[1]

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

For the nine months ended September 30, 2023

BPPR

Impact of

Provision for

Allowance for

Net write

down

Beginning

Adopting

credit losses

credit losses -

Ending

(In thousands)

Balance

ASU 2022-02

(benefit)

PCD Loans

Charge-off

Recoveries

Balance

Allowance for credit losses - loans:

Commercial

Commercial multi-family

$

5,210

$

-

$

(1,730)

$

-

$

-

$

1

$

-

$

3,481

Commercial real estate non-owner occupied

52,475

-

860

-

(636)

509

-

53,208

Commercial real estate owner occupied

48,393

(1,161)

(7,409)

-

(525)

2,195

-

41,493

Commercial and industrial

68,217

(552)

8,378

-

(4,979)

16,515

-

87,579

Total Commercial

174,295

(1,713)

99

-

(6,140)

19,220

-

185,761

Construction

2,978

-

5,090

-

(2,611)

-

-

5,457

Mortgage

117,344

(33,556)

(15,113)

87

(1,205)

12,343

-

79,900

Leasing

20,618

(35)

(7,023)

-

(6,249)

2,887

-

10,198

Consumer

 Credit cards

58,670

-

35,901

-

(27,998)

6,578

(601)

72,550

 Home equity lines of credit

103

-

(107)

-

(111)

202

-

87

 Personal

96,369

(7,020)

60,347

-

(49,441)

7,452

-

107,707

 Auto

129,735

(21)

45,108

-

(34,770)

15,384

-

155,436

 Other

15,433

-

3,297

-

(11,855)

563

-

7,438

Total Consumer

300,310

(7,041)

144,546

-

(124,175)

30,179

(601)

343,218

Total - Loans

$

615,545

$

(42,345)

$

127,599

$

87

$

(140,380)

$

64,629

$

(601)

$

624,534

Allowance for credit losses - unfunded commitments:

Commercial

$

4,336

$

-

$

552

$

-

$

-

$

-

$

-

$

4,888

Construction

2,022

-

(680)

-

-

-

-

1,342

Ending balance - unfunded commitments [1]

$

6,358

$

-

$

(128)

$

-

$

-

$

-

$

-

$

6,230

[1]

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

For the nine months ended September 30, 2023

Popular U.S.

Impact of

Provision for 

Beginning

Adopting

credit losses -

Ending

(In thousands)

Balance

ASU 2022-02

(benefit)

Charge-offs

Recoveries

Balance

Allowance for credit losses - loans:

Commercial

Commercial multi-family

$

21,101

$

-

$

(9,363)

$

-

$

4

$

11,742

Commercial real estate non-owner occupied

19,065

-

(7,108)

-

1,984

13,941

Commercial real estate owner occupied

8,688

-

(738)

(1,395)

61

6,616

Commercial and industrial

12,227

-

5,943

(3,808)

1,644

16,006

Total Commercial

61,081

-

(11,266)

(5,203)

3,693

48,305

Construction

1,268

-

4,246

-

-

5,514

Mortgage

17,910

(2,098)

(3,993)

-

185

12,004

Consumer

 Credit cards

-

-

1

(1)

-

-

 Home equity lines of credit

2,439

-

(419)

(419)

699

2,300

 Personal

22,057

(1,140)

10,019

(14,093)

1,566

18,409

 Other

2

-

134

(143)

9

2

Total Consumer

24,498

(1,140)

9,735

(14,656)

2,274

20,711

Total - Loans

$

104,757

$

(3,238)

$

(1,278)

$

(19,859)

$

6,152

$

86,534

Allowance for credit losses - unfunded commitments:

Commercial

$

1,175

$

-

$

370

$

-

$

-

$

1,545

Construction

1,184

-

4,271

-

-

5,455

Consumer

88

-

(34)

-

-

54

Ending balance - unfunded commitments [1]

$

2,447

$

-

$

4,607

$

-

$

-

$

7,054

[1]

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

For the nine months ended September 30, 2023

Popular Inc.

Impact

Provision for

Allowance

for

Net write

down

Beginning

of adopting

credit losses

credit losses -

Ending

(In thousands)

Balance

ASU 2022-02

(benefit)

PCD Loans

Charge-offs

Recoveries

Balance

Allowance for credit losses - loans:

Commercial

Commercial multi-family

$

26,311

$

-

$

(11,093)

$

-

$

-

$

5

$

-

$

15,223

Commercial real estate non-owner occupied

71,540

-

(6,248)

-

(636)

2,493

-

67,149

Commercial real estate owner occupied

57,081

(1,161)

(8,147)

-

(1,920)

2,256

-

48,109

Commercial and industrial

80,444

(552)

14,321

-

(8,787)

18,159

-

103,585

Total Commercial

235,376

(1,713)

(11,167)

-

(11,343)

22,913

-

234,066

Construction

4,246

-

9,336

-

(2,611)

-

-

10,971

Mortgage

135,254

(35,654)

(19,106)

87

(1,205)

12,528

-

91,904

Leasing

20,618

(35)

(7,023)

-

(6,249)

2,887

-

10,198

Consumer

 Credit cards

58,670

-

35,902

-

(27,999)

6,578

(601)

72,550

 Home equity lines of credit

2,542

-

(526)

-

(530)

901

-

2,387

 Personal

118,426

(8,160)

70,366

-

(63,534)

9,018

-

126,116

 Auto

129,735

(21)

45,108

-

(34,770)

15,384

-

155,436

 Other

15,435

-

3,431

-

(11,998)

572

-

7,440

Total Consumer

324,808

(8,181)

154,281

-

(138,831)

32,453

(601)

363,929

Total - Loans

$

720,302

$

(45,583)

$

126,321

$

87

$

(160,239)

$

70,781

$

(601)

$

711,068

Allowance for credit losses - unfunded commitments:

Commercial

$

5,511

$

-

$

922

$

-

$

-

$

-

$

-

$

6,433

Construction

3,206

-

3,591

-

-

-

-

6,797

Consumer

88

-

(34)

-

-

-

-

54

Ending balance - unfunded commitments [1]

$

8,805

$

-

$

4,479

$

-

$

-

$

-

$

-

$

13,284

[1]

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

For the quarter ended September 30, 2022

BPPR

Provision for

Allowance for

Beginning

credit losses

credit losses -

Ending

(In thousands)

Balance

(benefit)

PCD Loans

Charge-offs

Recoveries

Balance

Allowance for credit losses - loans:

Commercial

Commercial multi-family

$

3,522

$

682

$

-

$

-

$

-

$

4,204

Commercial real estate non-owner occupied

50,393

2,689

-

-

368

53,450

Commercial real estate owner occupied

49,472

(5,438)

-

(24)

2,419

46,429

Commercial and industrial

50,160

9,145

-

(4,794)

3,181

57,692

Total Commercial

153,547

7,078

-

(4,818)

5,968

161,775

Construction

3,074

1,181

-

-

-

4,255

Mortgage

130,030

(11,648)

59

(1,720)

3,885

120,606

Leasing

19,037

2,115

-

(2,191)

853

19,814

Consumer

 Credit cards

45,339

12,353

-

(6,669)

2,186

53,209

 Home equity lines of credit

90

(128)

-

-

129

91

 Personal

74,799

17,139

-

(9,963)

1,736

83,711

 Auto

137,222

(770)

-

(11,238)

3,863

129,077

 Other

17,439

1,374

-

(610)

193

18,396

Total Consumer

274,889

29,968

-

(28,480)

8,107

284,484

Total - Loans

$

580,577

$

28,694

$

59

$

(37,209)

$

18,813

$

590,934

Allowance for credit losses - unfunded commitments:

Commercial

$

2,032

$

868

$

-

$

-

$

-

$

2,900

Construction

1,534

349

-

-

-

1,883

Ending balance - unfunded commitments [1]

$

3,566

$

1,217

$

-

$

-

$

-

$

4,783

[1]

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

For the quarter ended September 30, 2022

Popular U.S.

Provision for

Beginning

credit losses

Ending

(In thousands)

Balance

(benefit)

Charge-offs

Recoveries

Balance

Allowance for credit losses - loans:

Commercial

Commercial multi-family

$

20,571

$

1,138

$

-

$

8

$

21,717

Commercial real estate non-owner occupied

14,284

11,187

-

2

25,473

Commercial real estate owner occupied

9,076

(120)

-

26

8,982

Commercial and industrial

12,152

(717)

(720)

1,195

11,910

Total Commercial

56,083

11,488

(720)

1,231

68,082

Construction

3,839

(1,895)

-

-

1,944

Mortgage

18,275

(370)

-

23

17,928

Consumer

 Home equity lines of credit

3,455

(1,340)

(47)

954

3,022

 Personal

19,520

2,901

(1,528)

291

21,184

 Other

1

41

(48)

8

2

Total Consumer

22,976

1,602

(1,623)

1,253

24,208

Total - Loans

$

101,173

$

10,825

$

(2,343)

$

2,507

$

112,162

Allowance for credit losses - unfunded commitments:

Commercial

$

1,317

$

(201)

$

-

$

-

$

1,116

Construction

1,961

(650)

-

-

1,311

Consumer

60

37

-

-

97

Ending balance - unfunded commitments [1]

$

3,338

$

(814)

$

-

$

-

$

2,524

[1]

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

For the quarter ended September 30, 2022

Popular Inc.

Provision for

Allowance for

Beginning

credit losses

credit losses -

Ending

(In thousands)

Balance

(benefit)

PCD Loans

Charge-offs

Recoveries

Balance

Allowance for credit losses - loans:

Commercial

Commercial multi-family

$

24,093

$

1,820

$

-

$

-

$

8

$

25,921

Commercial real estate non-owner occupied

64,677

13,876

-

-

370

78,923

Commercial real estate owner occupied

58,548

(5,558)

-

(24)

2,445

55,411

Commercial and industrial

62,312

8,428

-

(5,514)

4,376

69,602

Total Commercial

209,630

18,566

-

(5,538)

7,199

229,857

Construction

6,913

(714)

-

-

-

6,199

Mortgage

148,305

(12,018)

59

(1,720)

3,908

138,534

Leasing

19,037

2,115

-

(2,191)

853

19,814

Consumer

 Credit cards

45,339

12,353

-

(6,669)

2,186

53,209

 Home equity lines of credit

3,545

(1,468)

-

(47)

1,083

3,113

 Personal

94,319

20,040

-

(11,491)

2,027

104,895

 Auto

137,222

(770)

-

(11,238)

3,863

129,077

 Other

17,440

1,415

-

(658)

201

18,398

Total Consumer

297,865

31,570

-

(30,103)

9,360

308,692

Total - Loans

$

681,750

$

39,519

$

59

$

(39,552)

$

21,320

$

703,096

Allowance for credit losses - unfunded commitments:

Commercial

$

3,349

$

667

$

-

$

-

$

-

$

4,016

Construction

3,495

(301)

-

-

-

3,194

Consumer

60

37

-

-

-

97

Ending balance - unfunded commitments [1]

$

6,904

$

403

$

-

$

-

$

-

$

7,307

[1]

Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial 

Condition.

For the nine months ended September 30, 2022

BPPR

Provision for

Allowance for

Beginning

credit losses

credit losses -

Ending

(In thousands)

Balance

(benefit)

PCD Loans

Charge-offs

Recoveries

Balance

Allowance for credit losses - loans:

Commercial

Commercial multi-family

$

3,050

$

1,154

$

-

$

-

$

-

$

4,204

Commercial real estate non-owner occupied

45,211

7,024

-

(30)

1,245

53,450

Commercial real estate owner occupied

54,176

(13,907)

-

(977)

7,137

46,429

Commercial and industrial

49,491

6,784

-

(5,660)

7,077

57,692

Total Commercial

151,928

1,055

-

(6,667)

15,459

161,775

Construction

1,641

1,803

-

-

811

4,255

Mortgage

138,286

(28,129)

841

(4,408)

14,016

120,606

Leasing

17,578

3,807

-

(4,094)

2,523

19,814

Consumer

 Credit cards

43,499

21,688

-

(18,770)

6,792

53,209

 Home equity lines of credit

98

(213)

-

(164)

370

91

 Personal

71,022

32,353

-

(25,069)

5,405

83,711

 Auto

154,498

(10,793)

-

(26,766)

12,138

129,077

 Other

15,612

3,590

-

(1,555)

749

18,396

Total Consumer

284,729

46,625

-

(72,324)

25,454

284,484

Total - Loans

$

594,162

$

25,161

$

841

$

(87,493)

$

58,263

$

590,934

Allowance for credit losses - unfunded commitments:

Commercial

$

1,751

$

1,149

$

-

$

-

$

-

$

2,900

Construction

2,388

(505)

-

-

-

1,883

Ending balance - unfunded commitments [1]

$

4,139

$

644

$

-

$

-

$

-

$

4,783

[1]

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

For the nine months ended September 30, 2022

Popular U.S.

Provision for

Beginning

credit losses

Ending

(In thousands)

Balance

(benefit)

Charge-offs

Recoveries

Balance

Allowance for credit losses - loans:

Commercial

Commercial multi-family

$

25,418

$

(3,721)

$

-

$

20

$

21,717

Commercial real estate non-owner occupied

22,246

3,208

-

19

25,473

Commercial real estate owner occupied

6,053

2,681

-

248

8,982

Commercial and industrial

10,160

1,036

(1,244)

1,958

11,910

Total Commercial

63,877

3,204

(1,244)

2,245

68,082

Construction

4,722

(3,910)

-

1,132

1,944

Mortgage

16,192

1,756

(68)

48

17,928

Consumer

 Credit cards

-

(10)

-

10

-

 Home equity lines of credit

3,708

(2,974)

(99)

2,387

3,022

 Personal

12,700

11,604

(3,985)

865

21,184

 Other

5

144

(172)

25

2

Total Consumer

16,413

8,764

(4,256)

3,287

24,208

Total - Loans

$

101,204

$

9,814

$

(5,568)

$

6,712

$

112,162

Allowance for credit losses - unfunded commitments:

Commercial

$

1,384

$

(268)

$

-

$

-

$

1,116

Construction

2,337

(1,026)

-

-

1,311

Consumer

37

60

-

-

97

Ending balance - unfunded commitments [1]

$

3,758

$

(1,234)

$

-

$

-

$

2,524

[1]

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

For the nine months ended September 30, 2022

Popular Inc.

Provision for

Allowance for

Beginning

credit losses

credit losses -

Ending

(In thousands)

Balance

(benefit)

PCD Loans

Charge-offs

Recoveries

Balance

Allowance for credit losses - loans:

Commercial

Commercial multi-family

$

28,468

$

(2,567)

$

-

$

-

$

20

$

25,921

Commercial real estate non-owner occupied

67,457

10,232

-

(30)

1,264

78,923

Commercial real estate owner occupied

60,229

(11,226)

-

(977)

7,385

55,411

Commercial and industrial

59,651

7,820

-

(6,904)

9,035

69,602

Total Commercial

215,805

4,259

-

(7,911)

17,704

229,857

Construction

6,363

(2,107)

-

-

1,943

6,199

Mortgage

154,478

(26,373)

841

(4,476)

14,064

138,534

Leasing

17,578

3,807

-

(4,094)

2,523

19,814

Consumer

 Credit cards

43,499

21,678

-

(18,770)

6,802

53,209

 Home equity lines of credit

3,806

(3,187)

-

(263)

2,757

3,113

 Personal

83,722

43,957

-

(29,054)

6,270

104,895

 Auto

154,498

(10,793)

-

(26,766)

12,138

129,077

 Other

15,617

3,734

-

(1,727)

774

18,398

Total Consumer

301,142

55,389

-

(76,580)

28,741

308,692

Total - Loans

$

695,366

$

34,975

$

841

$

(93,061)

$

64,975

$

703,096

Allowance for credit losses - unfunded commitments:

Commercial

$

3,135

$

881

$

-

$

-

$

-

$

4,016

Construction

4,725

(1,531)

-

-

-

3,194

Consumer

37

60

-

-

-

97

Ending balance - unfunded commitments [1]

$

7,897

$

(590)

$

-

$

-

$

-

$

7,307

[1]

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

Modifications

A modification constitutes a change in loan terms in the form of principal forgiveness, an interest rate reduction, other than-

insignificant payment delay, term extension or combination of the above made to a borrower experiencing financial difficulty.

The amount of outstanding commitments to lend additional funds to debtors owing receivables whose terms have been modified

during the period ended at September 30, 2023 amounted to $

17

 million related to the commercial loan portfolio.

The following tables show the amortized cost basis of the loans modified to borrowers experiencing financial difficulties at the end of

the reporting period disaggregated by class of financing receivable and type of concession granted for the quarter and nine months

ended September 30,2023. Loans modified to borrowers under financial difficulties that were fully paid down, charged-off or

foreclosed upon by period end are not reported.

Loan Modifications Made to Borrowers Experiencing Financial Difficulty for the quarter ended September 30,2023

Interest Rate Reduction

BPPR

Popular U.S.

Popular, Inc.

(In thousands)

Amortized Cost

Basis at

September

30,2023

% of total class

of Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

CRE owner occupied

$

141,807

10.07

%

$

-

-

%

$

141,807

4.66

%

Commercial and industrial

43

-

%

-

-

%

43

-

%

Mortgage

76

-

%

-

-

%

76

-

%

Consumer:

 Credit cards

154

0.01

%

-

-

%

154

0.01

%

 Personal

247

0.01

%

-

-

%

247

0.01

%

Total

$

142,327

0.60

%

$

-

-

%

$

142,327

0.42

%

Term Extension

BPPR

Popular U.S.

Popular, Inc.

(In thousands)

Amortized Cost

Basis at

September

30,2023

% of total class

of Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

CRE non-owner occupied

$

8,760

0.30

%

$

-

-

%

$

8,760

0.17

%

CRE owner occupied

2,667

0.19

%

10,847

0.66

%

13,514

0.44

%

Commercial and industrial

16,535

0.38

%

-

-

%

16,535

0.25

%

Mortgage

17,057

0.27

%

933

0.07

%

17,990

0.24

%

Consumer:

 Personal

122

0.01

%

-

-

%

122

0.01

%

Total

$

45,141

0.19

%

$

11,780

0.11

%

$

56,921

0.17

%

Other-Than-Insignificant Payment Delays

BPPR

Popular U.S.

Popular, Inc.

(In thousands)

Amortized Cost

Basis at

September

30,2023

% of total class

of Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

CRE owner occupied

$

8,980

0.64

%

$

-

-

%

$

8,980

0.29

%

Commercial and industrial

3,287

0.08

%

-

-

%

3,287

0.05

%

Total

$

12,267

0.05

%

$

-

-

%

$

12,267

0.04

%

Combination - Term extension and Interest Rate Reduction

BPPR

Popular U.S.

Popular, Inc.

(In thousands)

Amortized Cost

Basis at

September

30,2023

% of total class

of Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

CRE non-owner occupied

$

18,705

0.63

%

$

-

-

%

$

18,705

0.37

%

CRE owner occupied

14,683

1.04

%

-

-

%

14,683

0.48

%

Commercial and industrial

558

0.01

%

-

-

%

558

0.01

%

Mortgage

7,691

0.12

%

-

-

%

7,691

0.10

%

Consumer:

 Personal

815

0.05

%

11

0.01

%

826

0.04

%

Total

$

42,452

0.18

%

$

11

-

%

$

42,463

0.12

%

Combination - Other-Than-Insignificant Payment Delays and Interest Rate Reduction

Puerto Rico

Popular U.S.

Popular, Inc.

(In thousands)

Amortized Cost

Basis at

September

30,2023

% of total class

of Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

CRE non-owner occupied

$

182

0.01

%

$

-

-

%

$

182

-

%

Commercial and industrial

78

-

%

-

-

%

78

-

%

Consumer:

 Credit cards

195

-

%

-

-

%

195

0.02

%

Total

$

455

-

%

$

-

-

%

$

455

-

%

Loan Modifications Made to Borrowers Experiencing Financial Difficulty for the nine months ended September 30,2023

Interest Rate Reduction

BPPR

Popular U.S.

Popular, Inc.

(In thousands)

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

CRE owner occupied

$

141,807

10.07

%

$

-

-

%

$

141,807

4.66

%

Commercial and industrial

43

-

%

-

-

%

43

-

%

Mortgage

302

-

%

-

-

%

302

-

%

Consumer:

 Credit cards

565

0.05

%

-

-

%

565

0.05

%

 Personal

540

0.03

%

3

-

%

543

0.03

%

 Other

3

-

%

-

-

%

3

-

%

Total

$

143,260

0.60

%

$

3

-

%

$

143,263

0.42

%

Term Extension

BPPR

Popular U.S.

Popular, Inc.

(In thousands)

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

CRE non-owner occupied

$

33,059

1.12

%

$

-

-

%

$

33,059

0.66

%

CRE owner occupied

4,293

0.30

%

26,509

1.62

%

30,802

1.01

%

Commercial and industrial

38,713

0.89

%

-

-

%

38,713

0.59

%

Construction

2,169

1.27

%

5,309

0.71

%

7,478

0.81

%

Mortgage

41,916

0.67

%

5,423

0.42

%

47,339

0.62

%

Consumer:

 Personal

196

0.01

%

129

0.07

%

325

0.02

%

 Auto

36

-

%

-

-

%

36

-

%

Total

$

120,382

0.51

%

$

37,370

0.36

%

$

157,752

0.46

%

Principal Forgiveness

BPPR

Popular U.S.

Popular, Inc.

(In thousands)

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

CRE owner occupied

$

18

-

%

$

-

-

%

$

18

-

%

Total

$

18

-

%

$

-

-

%

$

18

-

%

Other-Than-Insignificant Payment Delays

BPPR

Popular U.S.

Popular, Inc.

(In thousands)

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

CRE non-owner occupied

$

1,736

0.06

%

$

-

-

%

$

1,736

0.03

%

CRE owner occupied

12,833

0.91

%

13,556

0.83

%

26,389

0.87

%

Commercial and industrial

4,653

0.11

%

828

0.04

%

5,481

0.08

%

Mortgage

137

-

%

-

-

%

137

-

%

Consumer:

 Other

31

0.02

%

-

-

%

31

0.02

%

Total

$

19,390

0.08

%

$

14,384

0.14

%

$

33,774

0.10

%

Combination - Term extension and Interest Rate Reduction

BPPR

Popular U.S.

Popular, Inc.

(In thousands)

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

CRE non-owner occupied

$

18,705

0.63

%

$

-

-

%

$

18,705

0.37

%

CRE owner occupied

14,784

1.05

%

-

-

%

14,784

0.49

%

Commercial and industrial

614

0.01

%

-

-

%

614

0.01

%

Mortgage

29,044

0.46

%

407

0.03

%

29,451

0.39

%

Consumer:

 Personal

1,711

0.10

%

43

0.02

%

1,754

0.09

%

 Auto

27

-

%

-

-

%

27

-

%

Total

$

64,885

0.27

%

$

450

-

%

$

65,335

0.19

%

Combination - Other-Than-Insignificant Payment Delays and Interest Rate Reduction

Puerto Rico

Popular U.S.

Popular, Inc.

(In thousands)

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

CRE non-owner occupied

$

182

0.01

%

$

-

-

%

$

182

-

%

Commercial and industrial

153

-

%

-

-

%

153

-

%

Consumer:

 Credit cards

587

0.05

%

-

-

%

587

0.05

%

Total

$

922

-

%

$

-

-

%

$

922

-

%

Combination - Other-Than-Insignificant Payment Delays and Principal Forgiveness

Puerto Rico

Popular U.S.

Popular, Inc.

(In thousands)

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

Amortized Cost

Basis at

September

30,2023

% of total class of

Financing

Receivable

CRE owner occupied

$

195

0.01

%

$

-

-

%

$

195

0.01

%

Total

$

195

-

%

$

-

-

%

$

195

-

%

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulties:

For the quarter ended September 30, 2023

Interest rate reduction

Loan Type

Financial Effect

CRE Non-owner occupied

Reduced weighted-average contractual interest rate from

9

.0% to

7.2

%.

CRE Owner occupied

Reduced weighted-average contractual interest rate from

8.4

% to

6.6

%.

Commercial and industrial

Reduced weighted-average contractual interest rate from

12.5

% to

7.6

%.

Mortgage

Reduced weighted-average contractual interest rate from

5.7

% to

4.2

%.

Consumer:

Credit cards

Reduced weighted-average contractual interest rate from

19.6

% to

3.6

%.

Personal

Reduced weighted-average contractual interest rate from

17

.0% to

9.1

%.

Term extension

Loan Type

Financial Effect

CRE Non-owner occupied

Added a weighted-average of

28

 months to the life of loans.

CRE Owner occupied

Added a weighted-average of

1

 year to the life of loans.

Commercial and industrial

Added a weighted-average of

3

 year to the life of loans.

Mortgage

Added a weighted-average of

11

 years to the life of loans.

Consumer:

Personal

Added a weighted-average of

7

 years to the life of loans.

Other than insignificant payment delay

Loan Type

Financial Effect

CRE Non-owner occupied

Added a weighted-average of

7

 months to the life of loans.

CRE Owner occupied

Added a weighted-average of

10

 months to the life of loans.

Commercial and industrial

Added a weighted-average of

7

 months to the life of loans.

Consumer:

Credit cards

Added a weighted-average of

29

 months to the life of loans.

For the nine months ended September 30, 2023

Interest rate reduction

Loan Type

Financial Effect

CRE Non-owner occupied

Reduced weighted-average contractual interest rate from

9

.0% to

7.2

%.

CRE Owner occupied

Reduced weighted-average contractual interest rate from

8.4

% to

6.6

%.

Commercial and industrial

Reduced weighted-average contractual interest rate from

14

.0% to

7.7

%.

Mortgage

Reduced weighted-average contractual interest rate from

5.7

% to

4.2

%.

Consumer:

Credit cards

Reduced weighted-average contractual interest rate from

18

.0% to

4.3

%.

Personal

Reduced weighted-average contractual interest rate from

18

.0% to

9.7

%.

Auto

Reduced weighted-average contractual interest rate from

12.64

% to

12.62

%.

Other

Reduced weighted-average contractual interest rate from

18

.0% to 0.0%.

Term extension

Loan Type

Financial Effect

CRE Non-owner occupied

Added a weighted-average of

19

 months to the life of loans.

CRE Owner occupied

Added a weighted-average of

1

 year to the life of loans.

Commercial and industrial

Added a weighted-average of

2

 years to the life of loans.

Construction

Added a weighted-average of

6

 months to the life of loans.

Mortgage

Added a weighted-average of

11

 years to the life of loans.

Consumer:

Personal

Added a weighted-average of

7

 years to the life of loans.

Auto

Added a weighted-average of

3

 years to the life of loans.

Principal forgiveness

Loan Type

Financial Effect

CRE Owner occupied

Reduced the amortized cost basis of the loans by $

0.1

 million.

Other than insignificant payment delay

Loan Type

Financial Effect

CRE Non-owner occupied

Added a weighted-average of

12

 months to the life of loans.

CRE Owner occupied

Added a weighted-average of

8

 months to the life of loans.

Commercial and industrial

Added a weighted-average of

8

 months to the life of loans.

Mortgage

Added a weighted-average of

40

 months to the life of loans.

Consumer:

Credit cards

Added a weighted-average of

26

 months to the life of loans.

Other

Added a weighted-average of

11

 months to the life of loans.

The following table presents, by class, the performance of loans that have been modified in the last nine months at September 30,

2023.

 The past due 90 days or more categories includes all loans modified classified as non-accruing at the time of the modification.

These loans will continue in non-accrual status, and presented as past due 90 days or more, until the borrower has demonstrated a

willingness and ability to make the restructured loan payments (at least six months of sustained performance after the modification

or one year for loans providing for quarterly or semi-annual payments) and management has concluded that it is probable that the

borrower would not be in payment default in the foreseeable future.

BPPR

For the period ended September 30, 2023

Past Due 90 days or more [1]

(In thousands)

30-59 days

60-89 days

Past due 90

days or more

Total past

due

Current

Total

With Payment

Default

Without

Payment Default

CRE Non-owner occupied

$

-

$

-

$

122

$

122

$

53,560

$

53,682

$

-

$

122

CRE Owner occupied

-

-

2,488

2,488

171,442

173,930

-

2,488

Commercial and industrial

-

-

1,735

1,735

42,441

44,176

729

1,006

Construction

-

-

-

-

2,169

2,169

-

-

Mortgage

4,913

2,572

22,291

29,776

41,623

71,399

4,196

18,095

Consumer:

 Credit cards

117

87

130

334

818

1,152

93

37

 Personal

48

19

550

617

1,830

2,447

-

550

 Auto

-

-

11

11

52

63

-

11

 Other

-

-

31

31

3

34

31

-

Total

$

5,078

$

2,678

$

27,358

$

35,114

$

313,938

$

349,052

$

5,049

$

22,309

[1] Loans that were in non-accrual status at the time of modification are presented as past due until the borrower has demonstrated a willingness and ability

to make the restructured loan payments. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or

charged-off, whichever occurs first. The recorded investment as of period end is inclusive of all partial paydowns and charge-offs since the modification

date. Loans modified with financial difficulty that were fully paid down, charged-off or foreclosed upon by period end are not reported.

Popular U.S.

For the period ended September 30, 2023

Past Due 90 days or more [1]

(In thousands)

30-59 days

60-89 days

Past due 90

days or more

Total past

due

Current

Total

With Payment

Default

Without

Payment Default

CRE Owner occupied

$

-

$

-

$

-

$

-

$

40,065

$

40,065

$

-

$

-

Commercial and industrial

-

-

-

-

828

828

-

-

Construction

-

-

-

-

5,309

5,309

-

-

Mortgage

-

-

334

334

5,496

5,830

103

231

Consumer:

 Personal

-

-

129

129

46

175

-

129

Total

$

-

$

-

$

463

$

463

$

51,744

$

52,207

$

103

$

360

[1] Loans that were in non-accrual status at the time of modification are presented as past due until the borrower has demonstrated a willingness and ability

to make the restructured loan payments. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or

charged-off, whichever occurs first. The recorded investment as of period end is inclusive of all partial paydowns and charge-offs since the modification

date. Loans modified with financial difficulty that were fully paid down, charged-off or foreclosed upon by period end are not reported.

Popular Inc.

For the period ended September 30, 2023

Past Due 90 days or more [1]

(In thousands)

30-59 days

60-89 days

Past due 90

days or more

Total past

due

Current

Total

With Payment

Default

Without

Payment Default

CRE Non-owner occupied

$

-

$

-

$

122

$

122

$

53,560

$

53,682

$

-

$

122

CRE Owner occupied

-

-

2,488

2,488

211,507

213,995

-

2,488

Commercial and industrial

-

-

1,735

1,735

43,269

45,004

729

1,006

Construction

-

-

-

-

7,478

7,478

-

-

Mortgage

4,913

2,572

22,625

30,110

47,119

77,229

4,299

18,326

Consumer:

 Credit cards

117

87

130

334

818

1,152

93

37

 Personal

48

19

679

746

1,876

2,622

-

679

 Auto

-

-

11

11

52

63

-

11

 Other

-

-

31

31

3

34

31

-

Total

$

5,078

$

2,678

$

27,821

$

35,577

$

365,682

$

401,259

$

5,152

$

22,669

[1] Loans that were in non-accrual status at the time of modification are presented as past due until the borrower has demonstrated a willingness and ability

to make the restructured loan payments. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or

charged-off, whichever occurs first. The recorded inve stment as of period end is inclusive of all partial paydowns and charge-offs since the modification

date. Loans modified with financial difficulty that were fully paid down, charged-off or foreclosed upon by period end are not reported.

During the nine months ended September 30, 2023,

five

 loans with an aggregate unpaid principal balance of $

6.6

 million were

restructured into multiple notes (“Note A / B split”)

,

 compared to

three

 loans with an aggregate unpaid principal balance of $

2.7

million during the nine months ended September 30, 2022.

No

 charge-offs were recorded as part of Note A / B splits during 2023

and 2022. These loans were restructured after analyzing the borrowers’ capacity to repay the debt, collateral and ability to perform

under the modified terms.

Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or charged-off,

whichever occurs first. During the quarter and nine months ended September 30, 2023, the outstanding balance of loans modified

for borrowers under financial difficulties that were subject to payment default during the nine months preceding the default date was

$

5

 million and $

6

 million, respectively. 

For the quarter ended September 30, 2023, extension of maturity and the combination of reduction of interest rate and extension of

maturity amounted to $

4

 million and $

1

 million, respectively, of the outstanding balance of loans modified for borrowers under

financial difficulties that were subject to payment default during the nine months preceding the default date. For the nine months

ended September 30, 2023, extension of maturity and the combination of reduction of interest rate and extension of maturity

amounted to $

5

 million and $

1

 million, respectively, of the outstanding balance of loans modified for borrowers under financial

difficulties that were subject to payment default during the nine months preceding the default date.

Legacy TDR Modifications

A modification of a loan, prior to ASU 2022-02, constituted a troubled debt restructuring (TDR) when a borrower was experiencing

financial difficulty and the modification constituted a concession. For a summary of the legacy accounting policy related to TDRs,

refer to the Summary of Significant Accounting Policies included in Note 2 to the 2022 Form 10-K.

The outstanding balance of loans classified as TDRs amounted to $

1.6

 billion at December 31, 2022. The amount of outstanding

commitments to lend additional funds to debtors owing loans whose terms have been modified in TDRs amounted to $

12

 million

related to the commercial loan portfolio at December 31, 2022.

The following table presents the outstanding balance of loans classified as TDRs according to their accruing status and the related

allowance at December 31, 2022.

December 31, 2022

(In thousands)

Accruing

Non-Accruing

Total

Related

Allowance

Loans held-in-portfolio:

 Commercial

$

269,784

$

54,641

$

324,425

$

18,451

 Mortgage

[1]

1,169,976

86,790

1,256,766

58,819

 Leasing

1,154

24

1,178

43

 Consumer

54,395

7,883

62,278

13,577

Loans held-in-portfolio

$

1,495,309

$

149,338

$

1,644,647

$

90,890

[1] At December 31, 2022, accruing mortgage loan TDRs include $

725

 million guaranteed by U.S. sponsored entities at BPPR.

The following table presents the loan count by type of modification for those loans modified in a TDR during the quarter and nine

months ended September 30, 2022. Loans modified as TDRs for the U.S. operations are considered insignificant to the Corporation.

Popular Inc.

For the quarter ended September 30, 2022

For the nine months ended September 30, 2022

Reduction in

interest rate

Extension of

maturity

date

Combination of

reduction in

interest rate and

extension of

maturity date

Other

Reduction

in interest

rate

Extension of

maturity

date

Combination of

reduction in

interest rate and

extension of

maturity date

Other

Commercial real estate non-owner occupied

-

-

2

-

-

1

2

2

Commercial real estate owner occupied

1

3

-

2

2

9

1

2

Commercial and industrial

-

3

-

-

3

8

1

11

Mortgage

2

63

210

2

6

128

715

3

Leasing

-

-

-

-

-

-

1

-

Consumer:

 Credit cards

7

-

-

10

31

-

-

32

 Personal

28

4

1

-

82

60

1

1

 Auto

-

-

-

-

-

1

-

-

Total

38

73

213

14

124

207

721

51

The following table presents, by class, quantitative information related to loans modified as TDRs during the quarter and nine

months ended September 30, 2022.

Popular, Inc. 

For the quarter ended September 30, 2022

(In thousands)

Loan count

Pre-modification outstanding

recorded investment

Post-modification

outstanding recorded

investment

Increase (decrease) in the

allowance for loan losses as

a result of modification

Commercial real estate non-owner occupied

2

$

1,327

$

1,326

$

10

Commercial real estate owner occupied

6

2,488

2,471

(47)

Commercial and industrial

3

123

117

7

Mortgage

277

28,990

30,192

1,032

Consumer:

 Credit cards

17

157

154

1

 Personal

33

542

539

146

Total

338

$

33,627

$

34,799

$

1,149

Popular, Inc. 

For the nine months ended September 30, 2022

(In thousands)

Loan count

Pre-modification outstanding

recorded investment

Post-modification

outstanding recorded

investment

Increase (decrease) in the

allowance for loan losses as

a result of modification

Commercial real estate non-owner occupied

5

$

4,779

$

4,777

$

15

Commercial real estate owner occupied

14

15,594

15,567

(2,120)

Commercial and industrial

23

49,625

49,425

2,067

Mortgage

852

93,773

96,918

3,143

Leasing

1

14

12

2

Consumer:

 Credit cards

63

567

599

8

 Personal

144

2,223

2,297

411

 Auto

1

28

28

5

Total

1,103

$

166,603

$

169,623

$

3,531

The following table presents, by class, TDRs that were subject to payment default and that had been modified as a TDR during the

twelve months preceding the default date. Payment default is defined as a restructured loan becoming 90 days past due after being

modified, foreclosed or charged-off, whichever occurs first. The recorded investment as of period end is inclusive of all partial

paydowns and charge-offs since the modification date. Loans modified as a TDR that were fully paid down, charged-off or

foreclosed upon by period end are not reported.

Popular Inc.

Defaulted during the quarter ended

September 30, 2022

Defaulted during the nine months ended

September 30, 2022

(In thousands)

Loan count

Recorded investment as

of first default date

Loan count

Recorded Investment as of

first default date

Commercial real estate owner occupied

1

$

560

1

$

560

Commercial and industrial

2

1,165

5

3,661

Mortgage

35

3,500

73

9,200

Leasing

1

5

1

5

Consumer:

 Credit cards

4

32

24

185

 Personal

15

160

34

558

Total

58

$

5,422

138

$

14,169

Credit Quality

The risk rating system provides for the assignment of ratings at the obligor level based on the financial condition of the borrower.

The risk rating analysis process is performed at least once a year or more frequently if events or conditions change which may

deteriorate the credit quality. In the case of consumer and mortgage loans, these loans are classified considering their delinquency

status at the end of the reporting period.

The following tables present the amortized cost basis, net of unearned income, of loans held-in-portfolio based on the Corporation’s

assignment of obligor risk ratings as defined at September 30, 2023 and December 31, 2022 and the gross write-offs recorded by

vintage year. For the definitions of the obligor risk ratings, refer to the Credit Quality section of Note 9 to the Consolidated Financial

Statements included in the 2022 Form 10-K:

September 30, 2023

Term Loans

Revolving

Loans

Amortized

Cost Basis

Revolving

Loans

Converted to

Term Loans

Amortized

Cost Basis

Amortized Cost Basis by Origination Year

(In thousands)

2023

2022

2021

2020

2019

Prior 

Years

Total

BPPR

Commercial:

Commercial multi-family

Watch

$

-

$

-

$

-

$

-

$

4,132

$

4,291

$

-

$

-

$

8,423

Special Mention

-

-

-

-

-

5,817

-

-

5,817

Substandard

-

-

-

-

-

3,048

100

-

3,148

Pass

38,060

139,784

22,604

20,572

29,751

26,368

287

-

277,426

Total commercial

multi-family

$

38,060

$

139,784

$

22,604

$

20,572

$

33,883

$

39,524

$

387

$

-

$

294,814

Commercial real estate non-owner occupied

Watch

$

2,611

$

345

$

14,870

$

22,895

$

14,387

$

42,474

$

-

$

-

$

97,582

Special Mention

652

-

25,120

63

65,283

55,662

3,563

-

150,343

Substandard

19,724

1,356

-

2,243

-

25,986

-

-

49,309

Pass

215,640

881,595

555,185

363,551

44,464

584,724

6,488

-

2,651,647

Total commercial

real estate non-

owner occupied

$

238,627

$

883,296

$

595,175

$

388,752

$

124,134

$

708,846

$

10,051

$

-

$

2,948,881

Year-to-Date gross

write-offs

$

-

$

-

$

-

$

609

$

-

$

27

$

-

$

-

$

636

Commercial real estate owner occupied

Watch

$

1,673

$

11,674

$

25,306

$

8,021

$

3,578

$

65,433

$

900

$

-

$

116,585

Special Mention

-

16,697

6,082

143,558

996

56,793

13,069

-

237,195

Substandard

916

15,967

2,130

324

657

71,111

-

-

91,105

Doubtful

-

-

-

-

-

225

-

-

225

Pass

54,152

188,715

234,029

52,294

26,558

396,965

9,730

-

962,443

Total commercial

real estate owner

occupied

$

56,741

$

233,053

$

267,547

$

204,197

$

31,789

$

590,527

$

23,699

$

-

$

1,407,553

Year-to-Date gross

write-offs

$

-

$

4

$

-

$

-

$

1

$

520

$

-

$

-

$

525

Commercial and industrial

Watch

$

5,085

$

20,271

$

6,051

$

2,791

$

16,548

$

78,294

$

78,361

$

-

$

207,401

Special Mention

85

3,519

3,549

6,157

2,057

42,415

10,696

-

68,478

Substandard

5,698

2,011

6,457

19,449

2,130

34,171

33,556

-

103,472

Doubtful

-

-

-

54

-

30

-

-

84

Loss

-

-

-

-

-

-

354

-

354

Pass

679,029

688,800

522,132

246,230

132,643

265,712

1,415,483

-

3,950,029

Total commercial

and industrial

$

689,897

$

714,601

$

538,189

$

274,681

$

153,378

$

420,622

$

1,538,450

$

-

$

4,329,818

Year-to-Date gross

write-offs

$

784

$

184

$

140

$

317

$

398

$

287

$

2,869

$

-

$

4,979

Construction

Watch

$

-

$

17,156

$

8,693

$

-

$

-

$

-

$

20,485

$

-

$

46,334

Substandard

-

6,578

-

2,169

-

-

$

-

-

8,747

Pass

14,035

21,688

33,249

11,843

2,308

1,056

31,247

-

115,426

Total construction

$

14,035

$

45,422

$

41,942

$

14,012

$

2,308

$

1,056

$

51,732

$

-

$

170,507

Year-to-Date gross

write-offs

$

-

$

2,611

$

-

$

-

$

-

$

-

$

-

$

-

$

2,611

Mortgage

Substandard

$

-

$

161

$

515

$

372

$

2,923

$

76,022

$

-

$

-

$

79,993

Pass

537,050

443,989

430,508

262,407

167,447

4,367,874

-

-

6,209,275

Total mortgage

$

537,050

$

444,150

$

431,023

$

262,779

$

170,370

$

4,443,896

$

-

$

-

$

6,289,268

Year-to-Date gross

write-offs

$

-

$

-

$

-

$

-

$

-

$

1,205

$

-

$

-

$

1,205

September 30, 2023

Term Loans

Revolving

Loans

Amortized

Cost Basis

Revolving

Loans

Converted to

Term Loans

Amortized

Cost Basis

Amortized Cost Basis by Origination Year

(In thousands)

2023

2022

2021

2020

2019

Prior 

Years

Total

BPPR

Leasing

Substandard

$

146

$

2,269

$

1,912

$

923

$

946

$

568

$

-

$

-

$

6,764

Loss

-

48

-

-

29

-

-

-

77

Pass

508,378

522,978

341,119

180,280

101,777

36,741

-

-

1,691,273

Total leasing

$

508,524

$

525,295

$

343,031

$

181,203

$

102,752

$

37,309

$

-

$

-

$

1,698,114

Year-to-Date gross

write-offs

$

391

$

2,638

$

1,871

$

530

$

473

$

346

$

-

$

-

$

6,249

Consumer:

Credit cards

Substandard

$

-

$

-

$

-

$

-

$

-

$

-

$

17,717

$

-

$

17,717

Loss

-

-

-

-

-

-

2

-

2

Pass

-

-

-

-

-

-

1,059,692

-

1,059,692

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

1,077,411

$

-

$

1,077,411

Year-to-Date gross

write-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

27,998

$

-

$

27,998

HELOCs

Pass

$

-

$

-

$

-

$

-

$

-

$

-

$

2,474

$

-

$

2,474

Total HELOCs

$

-

$

-

$

-

$

-

$

-

$

-

$

2,474

$

-

$

2,474

Year-to-Date gross

write-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

111

$

-

$

111

Personal

Substandard

$

677

$

4,223

$

2,077

$

604

$

1,217

$

8,854

$

-

$

1,104

$

18,756

Loss

30

10

48

-

25

21

-

-

134

Pass

700,994

562,370

210,731

66,531

71,178

109,046

-

23,262

1,744,112

Total Personal

$

701,701

$

566,603

$

212,856

$

67,135

$

72,420

$

117,921

$

-

$

24,366

$

1,763,002

Year-to-Date gross

write-offs

$

1,055

$

23,867

$

13,973

$

3,395

$

3,834

$

2,305

$

-

$

1,012

$

49,441

Auto

Substandard

$

3,213

$

12,306

$

11,389

$

8,665

$

7,369

$

3,735

$

-

$

-

$

46,677

Loss

11

118

18

55

32

25

-

-

259

Pass

941,464

964,237

770,038

449,165

299,099

162,257

-

-

3,586,260

Total Auto

$

944,688

$

976,661

$

781,445

$

457,885

$

306,500

$

166,017

$

-

$

-

$

3,633,196

Year-to-Date gross

write-offs

$

3,625

$

16,278

$

8,276

$

4,353

$

2,238

$

-

$

-

$

-

$

34,770

Other consumer

Substandard

$

-

$

28

$

-

$

82

$

17

$

1,151

$

267

$

-

$

1,545

Loss

-

-

137

-

-

499

-

-

636

Pass

30,668

24,809

15,498

5,941

3,537

3,843

61,055

-

145,351

Total Other

consumer

$

30,668

$

24,837

$

15,635

$

6,023

$

3,554

$

5,493

$

61,322

$

-

$

147,532

Year-to-Date gross

write-offs

$

20

$

117

$

80

$

133

$

53

$

11,452

$

-

$

-

$

11,855

Total BPPR

$

3,759,991

$

4,553,702

$

3,249,447

$

1,877,239

$

1,001,088

$

6,531,211

$

2,765,526

$

24,366

$

23,762,570

September 30, 2023

Term Loans

Revolving

Loans

Amortized

Cost Basis

Revolving

Loans

Converted to

Term Loans

Amortized

Cost Basis

Amortized Cost Basis by Origination Year

(In thousands)

2023

2022

2021

2020

2019

Prior

Years

Total

Popular U.S.

Commercial:

Commercial multi-family

Watch

$

-

$

742

$

-

$

3,672

$

51,264

$

59,944

$

-

$

-

$

115,622

Special Mention

-

-

867

1,178

-

16,681

-

-

18,726

Substandard

-

-

-

-

14,747

16,003

-

-

30,750

Pass

69,117

525,927

367,965

233,949

216,481

450,809

4,273

-

1,868,521

Total commercial

multi-family

$

69,117

$

526,669

$

368,832

$

238,799

$

282,492

$

543,437

$

4,273

$

-

$

2,033,619

Commercial real estate non-owner occupied

Watch

$

-

$

5,500

$

4,228

$

729

$

10,991

$

44,329

$

-

$

-

$

65,777

Special Mention

-

-

-

-

1,333

68,433

-

-

69,766

Substandard

-

-

-

8,112

1,718

3,210

-

-

13,040

Pass

369,327

542,901

205,752

245,659

116,282

447,229

10,516

-

1,937,666

Total commercial

real estate non-

owner occupied

$

369,327

$

548,401

$

209,980

$

254,500

$

130,324

$

563,201

$

10,516

$

-

$

2,086,249

Commercial real estate owner occupied

Watch

$

-

$

-

$

78,483

$

1,177

$

-

$

124,940

$

-

$

-

$

204,600

Special Mention

-

-

-

3,809

6,114

114

-

-

10,037

Substandard

-

481

-

-

7,288

49,957

-

-

57,726

Pass

221,117

357,451

322,609

112,290

76,200

266,381

8,941

-

1,364,989

Total commercial

real estate owner

occupied

$

221,117

$

357,932

$

401,092

$

117,276

$

89,602

$

441,392

$

8,941

$

-

$

1,637,352

Year-to-Date gross

write-offs

$

-

$

-

$

-

$

-

$

-

$

1,395

$

-

$

-

$

1,395

Commercial and industrial

Watch

$

2,594

$

8,238

$

3,940

$

1,024

$

1,208

$

3,748

$

9,507

$

-

$

30,259

Special Mention

368

621

1,074

37

171

47

-

-

2,318

Substandard

-

259

209

186

1,773

1,867

2,428

-

6,722

Pass

94,717

276,872

366,679

326,315

176,132

495,831

421,419

-

2,157,965

Total commercial

and industrial

$

97,679

$

285,990

$

371,902

$

327,562

$

179,284

$

501,493

$

433,354

$

-

$

2,197,264

Year-to-Date gross

write-offs

$

247

$

221

$

1,994

$

-

$

1,307

$

-

$

39

$

-

$

3,808

Construction

Watch

$

-

$

-

$

18,542

$

-

$

-

$

-

$

-

$

-

$

18,542

Special Mention

-

-

-

-

-

34,562

-

-

34,562

Substandard

-

-

5,213

3,214

-

2,095

-

-

10,522

Pass

180,508

305,886

121,838

28,119

50,844

784

-

-

687,979

Total construction

$

180,508

$

305,886

$

145,593

$

31,333

$

50,844

$

37,441

$

-

$

-

$

751,605

Mortgage

Substandard

$

-

$

-

$

-

$

-

$

2,168

$

9,812

$

-

$

-

$

11,980

Pass

75,875

226,204

291,991

237,859

179,085

272,849

-

-

1,283,863

Total mortgage

$

75,875

$

226,204

$

291,991

$

237,859

$

181,253

$

282,661

$

-

$

-

$

1,295,843

September 30, 2023

Term Loans

Revolving

Loans

Amortized

Cost Basis

Revolving

Loans

Converted to

Term Loans

Amortized

Cost Basis

Amortized Cost Basis by Origination Year

(In thousands)

2023

2022

2021

2020

2019

Prior

Years

Total

Popular U.S.

Consumer:

Credit cards

Pass

$

-

$

-

$

-

$

-

$

-

$

-

$

17

$

-

$

17

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

17

$

-

$

17

Year-to-Date gross

write-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

1

$

-

$

1

HELOCs

Substandard

$

-

$

-

$

-

$

-

$

-

$

1,906

$

-

$

1,046

$

2,952

Loss

-

-

-

-

-

99

-

1,034

1,133

Pass

-

-

-

-

-

7,592

40,796

12,552

60,940

Total HELOCs

$

-

$

-

$

-

$

-

$

-

$

9,597

$

40,796

$

14,632

$

65,025

Year-to-Date gross

write-offs

$

-

$

-

$

-

$

-

$

-

$

419

$

-

$

-

$

419

Personal

Substandard

$

327

$

1,183

$

379

$

88

$

121

$

218

$

-

$

-

$

2,316

Loss

69

13

-

-

-

238

-

-

320

Pass

36,704

110,755

28,371

3,750

5,358

1,592

-

-

186,530

Total Personal

$

37,100

$

111,951

$

28,750

$

3,838

$

5,479

$

2,048

$

-

$

-

$

189,166

Year-to-Date gross

write-offs

$

137

$

9,218

$

3,319

$

518

$

758

$

143

$

-

$

-

$

14,093

Other consumer

Substandard

$

-

$

-

$

-

$

-

$

-

$

-

$

402

$

-

$

402

Pass

20

-

-

-

-

-

10,181

-

10,201

Total Other

consumer

$

20

$

-

$

-

$

-

$

-

$

-

$

10,583

$

-

$

10,603

Year-to-Date gross

write-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

143

$

-

$

143

Total Popular U.S.

$

1,050,743

$

2,363,033

$

1,818,140

$

1,211,167

$

919,278

$

2,381,270

$

508,480

$

14,632

$

10,266,743

September 30, 2023

Term Loans

Revolving

Loans

Amortized

Cost Basis

Revolving

Loans

Converted to

Term Loans

Amortized

Cost Basis

Amortized Cost Basis by Origination Year

(In thousands)

2023

2022

2021

2020

2019

Prior

Years

Total

Popular, Inc.

Commercial:

Commercial multi-family

Watch

$

-

$

742

$

-

$

3,672

$

55,396

$

64,235

$

-

$

-

$

124,045

Special Mention

-

-

867

1,178

-

22,498

-

-

24,543

Substandard

-

-

-

-

14,747

19,051

100

-

33,898

Pass

107,177

665,711

390,569

254,521

246,232

477,177

4,560

-

2,145,947

Total commercial

multi-family

$

107,177

$

666,453

$

391,436

$

259,371

$

316,375

$

582,961

$

4,660

$

-

$

2,328,433

Commercial real estate non-owner occupied

Watch

$

2,611

$

5,845

$

19,098

$

23,624

$

25,378

$

86,803

$

-

$

-

$

163,359

Special Mention

652

-

25,120

63

66,616

124,095

3,563

-

220,109

Substandard

19,724

1,356

-

10,355

1,718

29,196

-

-

62,349

Pass

584,967

1,424,496

760,937

609,210

160,746

1,031,953

17,004

-

4,589,313

Total commercial

real estate non-

owner occupied

$

607,954

$

1,431,697

$

805,155

$

643,252

$

254,458

$

1,272,047

$

20,567

$

-

$

5,035,130

Year-to-Date gross

write-offs

$

-

$

-

$

-

$

609

$

-

$

27

$

-

$

-

$

636

Commercial real estate owner occupied

Watch

$

1,673

$

11,674

$

103,789

$

9,198

$

3,578

$

190,373

$

900

$

-

$

321,185

Special Mention

-

16,697

6,082

147,367

7,110

56,907

13,069

-

247,232

Substandard

916

16,448

2,130

324

7,945

121,068

-

-

148,831

Doubtful

-

-

-

-

-

225

-

-

225

Pass

275,269

546,166

556,638

164,584

102,758

663,346

18,671

-

2,327,432

Total commercial

real estate owner

occupied

$

277,858

$

590,985

$

668,639

$

321,473

$

121,391

$

1,031,919

$

32,640

$

-

$

3,044,905

Year-to-Date gross

write-offs

$

-

$

4

$

-

$

-

$

1

$

1,915

$

-

$

-

$

1,920

Commercial and industrial

Watch

$

7,679

$

28,509

$

9,991

$

3,815

$

17,756

$

82,042

$

87,868

$

-

$

237,660

Special Mention

453

4,140

4,623

6,194

2,228

42,462

10,696

-

70,796

Substandard

5,698

2,270

6,666

19,635

3,903

36,038

35,984

-

110,194

Doubtful

-

-

-

54

-

30

-

-

84

Loss

-

-

-

-

-

-

354

-

354

Pass

773,746

965,672

888,811

572,545

308,775

761,543

1,836,902

-

6,107,994

Total commercial

and industrial

$

787,576

$

1,000,591

$

910,091

$

602,243

$

332,662

$

922,115

$

1,971,804

$

-

$

6,527,082

Year-to-Date gross

write-offs

$

1,031

$

405

$

2,134

$

317

$

1,705

$

287

$

2,908

$

-

$

8,787

September 30, 2023

Term Loans

Revolving

Loans

Amortized

Cost Basis

Revolving

Loans

Converted to

Term Loans

Amortized

Cost Basis

Amortized Cost Basis by Origination Year

(In thousands)

2023

2022

2021

2020

2019

Prior

Years

Total

Popular, Inc.

Construction

Watch

$

-

$

17,156

$

27,235

$

-

$

-

$

-

$

20,485

$

-

$

64,876

Special Mention

-

-

-

-

-

34,562

-

-

34,562

Substandard

-

6,578

5,213

5,383

-

2,095

-

-

19,269

Pass

194,543

327,574

155,087

39,962

53,152

1,840

31,247

-

803,405

Total construction

$

194,543

$

351,308

$

187,535

$

45,345

$

53,152

$

38,497

$

51,732

$

-

$

922,112

Year-to-Date gross

write-offs

$

-

$

2,611

$

-

$

-

$

-

$

-

$

-

$

-

$

2,611

Mortgage

Substandard

$

-

$

161

$

515

$

372

$

5,091

$

85,834

$

-

$

-

$

91,973

Pass

612,925

670,193

722,499

500,266

346,532

4,640,723

-

-

7,493,138

Total mortgage

$

612,925

$

670,354

$

723,014

$

500,638

$

351,623

$

4,726,557

$

-

$

-

$

7,585,111

Year-to-Date gross

write-offs

$

-

$

-

$

-

$

-

$

-

$

1,205

$

-

$

-

$

1,205

Leasing

Substandard

$

146

$

2,269

$

1,912

$

923

$

946

$

568

$

-

$

-

$

6,764

Loss

-

48

-

-

29

-

-

-

77

Pass

508,378

522,978

341,119

180,280

101,777

36,741

-

-

1,691,273

Total leasing

$

508,524

$

525,295

$

343,031

$

181,203

$

102,752

$

37,309

$

-

$

-

$

1,698,114

Year-to-Date gross

write-offs

$

391

$

2,638

$

1,871

$

530

$

473

$

346

$

-

$

-

$

6,249

September 30, 2023

Term Loans

Revolving

Loans

Amortized

Cost Basis

Revolving

Loans

Converted to

Term Loans

Amortized

Cost Basis

Amortized Cost Basis by Origination Year

(In thousands)

2023

2022

2021

2020

2019

Prior

Years

Total

Popular, Inc.

Consumer:

Credit cards

Substandard

$

-

$

-

$

-

$

-

$

-

$

-

$

17,717

$

-

$

17,717

Loss

-

-

-

-

-

-

2

-

2

Pass

-

-

-

-

-

-

1,059,709

-

1,059,709

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

1,077,428

$

-

$

1,077,428

Year-to-Date gross

write-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

27,999

$

-

$

27,999

HELOCs

Substandard

$

-

$

-

$

-

$

-

$

-

$

1,906

$

-

$

1,046

$

2,952

Loss

-

-

-

-

-

99

-

1,034

1,133

Pass

-

-

-

-

-

7,592

43,270

12,552

63,414

Total HELOCs

$

-

$

-

$

-

$

-

$

-

$

9,597

$

43,270

$

14,632

$

67,499

Year-to-Date gross

write-offs

$

-

$

-

$

-

$

-

$

-

$

419

$

111

$

-

$

530

Personal

Substandard

$

1,004

$

5,406

$

2,456

$

692

$

1,338

$

9,072

$

-

$

1,104

$

21,072

Loss

99

23

48

-

25

259

-

-

454

Pass

737,698

673,125

239,102

70,281

76,536

110,638

-

23,262

1,930,642

Total Personal

$

738,801

$

678,554

$

241,606

$

70,973

$

77,899

$

119,969

$

-

$

24,366

$

1,952,168

Year-to-Date gross

write-offs

$

1,192

$

33,085

$

17,292

$

3,913

$

4,592

$

2,448

$

-

$

1,012

$

63,534

Auto

Substandard

$

3,213

$

12,306

$

11,389

$

8,665

$

7,369

$

3,735

$

-

$

-

$

46,677

Loss

11

118

18

55

32

25

-

-

259

Pass

941,464

964,237

770,038

449,165

299,099

162,257

-

-

3,586,260

Total Auto

$

944,688

$

976,661

$

781,445

$

457,885

$

306,500

$

166,017

$

-

$

-

$

3,633,196

Year-to-Date gross

write-offs

$

3,625

$

16,278

$

8,276

$

4,353

$

2,238

$

-

$

-

$

-

$

34,770

Other consumer

Substandard

$

-

$

28

$

-

$

82

$

17

$

1,151

$

669

$

-

$

1,947

Loss

-

-

137

-

-

499

-

-

636

Pass

30,688

24,809

15,498

5,941

3,537

3,843

71,236

-

155,552

Total Other

consumer

$

30,688

$

24,837

$

15,635

$

6,023

$

3,554

$

5,493

$

71,905

$

-

$

158,135

Year-to-Date gross

write-offs

$

20

$

117

$

80

$

133

$

53

$

11,452

$

143

$

-

$

11,998

Total Popular Inc.

$

4,810,734

$

6,916,735

$

5,067,587

$

3,088,406

$

1,920,366

$

8,912,481

$

3,274,006

$

38,998

$

34,029,313

December 31, 2022

Term Loans

Revolving

Loans

Amortized

Cost Basis

Revolving

Loans

Converted to

Term Loans

Amortized

Cost Basis

Amortized Cost Basis by Origination Year

(In thousands)

2022

2021

2020

2019

2018

Prior 

Years

Total

BPPR

Commercial:

Commercial multi-family

Watch

$

-

$

-

$

-

$

18,508

$

-

$

4,687

$

-

$

-

$

23,195

Special Mention

-

-

-

-

-

2,692

-

-

2,692

Substandard

-

-

-

-

-

3,326

100

-

3,426

Pass

137,411

22,850

20,821

16,145

24,640

30,193

-

-

252,060

Total commercial

multi-family

$

137,411

$

22,850

$

20,821

$

34,653

$

24,640

$

40,898

$

100

$

-

$

281,373

Commercial real estate non-owner occupied

Watch

$

173

$

36,228

$

14,045

$

14,942

$

7,777

$

99,269

$

-

$

-

$

172,434

Special Mention

-

4,361

19,970

7,517

-

25,540

-

-

57,388

Substandard

8,933

-

3,209

19,004

25,490

21,064

-

-

77,700

Pass

855,839

585,690

294,086

94,056

35,105

568,893

16,136

-

2,449,805

Total commercial

real estate non-

owner occupied

$

864,945

$

626,279

$

331,310

$

135,519

$

68,372

$

714,766

$

16,136

$

-

$

2,757,327

Commercial real estate owner occupied

Watch

$

2,296

$

5,271

$

9,447

$

4,275

$

31,649

$

71,568

$

-

$

-

$

124,506

Special Mention

10

284

1,684

6,578

1,076

61,460

-

-

71,092

Substandard

16,205

6,177

802

800

770

84,205

-

-

108,959

Doubtful

-

-

-

-

-

505

-

-

505

Pass

227,404

258,473

274,333

30,691

68,029

407,322

16,742

-

1,282,994

Total commercial

real estate owner

occupied

$

245,915

$

270,205

$

286,266

$

42,344

$

101,524

$

625,060

$

16,742

$

-

$

1,588,056

Commercial and industrial

Watch

$

32,376

$

2,185

$

15,493

$

18,829

$

15,483

$

51,602

$

56,508

$

-

$

192,476

Special Mention

2,537

2,479

5,770

1,139

6,767

46,040

6,283

-

71,015

Substandard

789

1,276

1,600

3,138

11,536

40,636

46,226

-

105,201

Doubtful

-

-

29

-

75

75

-

-

179

Loss

-

-

-

-

-

-

144

-

144

Pass

793,662

684,647

211,013

177,265

65,197

292,173

1,203,536

-

3,427,493

Total commercial

and industrial

$

829,364

$

690,587

$

233,905

$

200,371

$

99,058

$

430,526

$

1,312,697

$

-

$

3,796,508

Construction

Watch

$

35,446

$

3,116

$

98

$

-

$

-

$

-

$

141

$

-

$

38,801

Substandard

-

-

9,629

-

-

-

-

-

9,629

Pass

13,044

34,387

15,961

2,262

-

-

32,957

-

98,611

Total construction

$

48,490

$

37,503

$

25,688

$

2,262

$

-

$

-

$

33,098

$

-

$

147,041

Mortgage

Substandard

$

-

$

574

$

687

$

3,926

$

4,227

$

93,959

$

-

$

-

$

103,373

Pass

449,286

451,027

285,026

204,170

237,007

4,380,390

-

-

6,006,906

Total mortgage

$

449,286

$

451,601

$

285,713

$

208,096

$

241,234

$

4,474,349

$

-

$

-

$

6,110,279

Leasing

Substandard

$

953

$

1,491

$

941

$

1,172

$

1,127

$

215

$

-

$

-

$

5,899

Loss

-

-

-

21

-

21

-

-

42

Pass

672,294

428,889

237,939

146,231

79,451

14,994

-

-

1,579,798

Total leasing

$

673,247

$

430,380

$

238,880

$

147,424

$

80,578

$

15,230

$

-

$

-

$

1,585,739

December 31, 2022

Term Loans

Revolving

Loans

Amortized

Cost Basis

Revolving

Loans

Converted to

Term Loans

Amortized

Cost Basis

Amortized Cost Basis by Origination Year

(In thousands)

2022

2021

2020

2019

2018

Prior 

Years

Total

BPPR

Consumer:

Credit cards

Substandard

$

-

$

-

$

-

$

-

$

-

$

-

$

11,907

$

-

$

11,907

Loss

-

-

-

-

-

-

3

-

3

Pass

-

-

-

-

-

-

1,029,921

-

1,029,921

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

1,041,831

$

-

$

1,041,831

HELOCs

Pass

$

-

$

-

$

-

$

-

$

-

$

-

$

2,954

$

-

$

2,954

Total HELOCs

$

-

$

-

$

-

$

-

$

-

$

-

$

2,954

$

-

$

2,954

Personal

Substandard

$

1,330

$

2,001

$

764

$

1,774

$

503

$

10,831

$

-

$

1,285

$

18,488

Loss

-

-

53

20

31

10

-

1

115

Pass

841,564

320,809

103,337

117,568

46,555

109,543

-

27,708

1,567,084

Total Personal

$

842,894

$

322,810

$

104,154

$

119,362

$

47,089

$

120,384

$

-

$

28,994

$

1,585,687

Auto

Substandard

$

6,764

$

11,171

$

10,466

$

10,243

$

4,597

$

2,382

$

-

$

-

$

45,623

Loss

23

41

48

25

7

14

-

-

158

Pass

1,156,654

961,571

588,200

426,169

248,328

85,827

-

-

3,466,749

Total Auto

$

1,163,441

$

972,783

$

598,714

$

436,437

$

252,932

$

88,223

$

-

$

-

$

3,512,530

Other consumer

Substandard

$

-

$

-

$

100

$

593

$

543

$

242

$

10,902

$

-

$

12,380

Loss

-

-

-

-

263

40

-

-

303

Pass

29,557

17,439

6,967

4,201

4,553

1,942

60,238

-

124,897

Total Other

consumer

$

29,557

$

17,439

$

7,067

$

4,794

$

5,359

$

2,224

$

71,140

$

-

$

137,580

Total BPPR

$

5,284,550

$

3,842,437

$

2,132,518

$

1,331,262

$

920,786

$

6,511,660

$

2,494,698

$

28,994

$

22,546,905

December 31, 2022

Term Loans

Revolving

Loans

Amortized

Cost Basis

Revolving

Loans

Converted to

Term Loans

Amortized

Cost Basis

Amortized Cost Basis by Origination Year

(In thousands)

2022

2021

2020

2019

2018

Prior

Years

Total

Popular U.S.

Commercial:

Commercial multi-family

Watch

$

750

$

917

$

6,218

$

85,579

$

9,633

$

52,835

$

-

$

-

$

155,932

Special Mention

-

-

1,198

-

14,491

8,372

-

-

24,061

Substandard

-

-

-

9,305

7,373

2,941

-

-

19,619

Pass

503,010

399,397

238,903

210,295

138,723

347,615

2,785

-

1,840,728

Total commercial

multi-family

$

503,760

$

400,314

$

246,319

$

305,179

$

170,220

$

411,763

$

2,785

$

-

$

2,040,340

Commercial real estate non-owner occupied

Watch

$

-

$

2,167

$

13,622

$

3,355

$

26,931

$

29,849

$

-

$

-

$

75,924

Special Mention

-

-

-

1,353

-

75,269

-

-

76,622

Substandard

-

2,864

2,149

3,220

1,429

4,722

-

-

14,384

Pass

552,258

209,338

211,449

109,781

100,065

383,409

9,113

-

1,575,413

Total commercial

real estate non-

owner occupied

$

552,258

$

214,369

$

227,220

$

117,709

$

128,425

$

493,249

$

9,113

$

-

$

1,742,343

Commercial real estate owner occupied

Watch

$

-

$

-

$

1,197

$

1,079

$

6,095

$

55,005

$

-

$

-

$

63,376

Special Mention

-

-

3,886

-

-

901

-

-

4,787

Substandard

-

-

-

7,403

11,165

33,586

-

-

52,154

Pass

363,655

422,959

114,988

82,971

119,565

258,881

7,157

-

1,370,176

Total commercial

real estate owner

occupied

$

363,655

$

422,959

$

120,071

$

91,453

$

136,825

$

348,373

$

7,157

$

-

$

1,490,493

Commercial and industrial

Watch

$

12,328

$

2,218

$

2,022

$

2,049

$

8,438

$

532

$

4,291

$

-

$

31,878

Special Mention

1,262

1,130

314

244

60

-

3

-

3,013

Substandard

260

935

74

4,278

315

1,829

1,408

-

9,099

Loss

292

525

1

75

192

3

-

-

1,088

Pass

185,318

341,855

368,398

202,301

171,528

376,045

352,169

-

1,997,614

Total commercial

and industrial

$

199,460

$

346,663

$

370,809

$

208,947

$

180,533

$

378,409

$

357,871

$

-

$

2,042,692

Construction

Watch

$

-

$

12,085

$

-

$

6,979

$

18,310

$

34,126

$

-

$

-

$

71,500

Special Mention

-

3

-

-

-

-

-

-

3

Substandard

-

-

1,423

-

6,540

2,095

-

-

10,058

Pass

164,272

146,062

91,486

93,118

10,863

23,581

-

-

529,382

Total construction

$

164,272

$

158,150

$

92,909

$

100,097

$

35,713

$

59,802

$

-

$

-

$

610,943

Mortgage

Substandard

$

-

$

2,009

$

3,478

$

4,048

$

1,156

$

9,798

$

-

$

-

$

20,489

Pass

236,595

303,204

243,468

183,846

58,026

241,564

-

-

1,266,703

Total mortgage

$

236,595

$

305,213

$

246,946

$

187,894

$

59,182

$

251,362

$

-

$

-

$

1,287,192

December 31, 2022

Term Loans

Revolving

Loans

Amortized

Cost Basis

Revolving

Loans

Converted to

Term Loans

Amortized

Cost Basis

Amortized Cost Basis by Origination Year

(In thousands)

2022

2021

2020

2019

2018

Prior

Years

Total

Popular U.S.

Consumer:

Credit cards

Pass

$

-

$

-

$

-

$

-

$

-

$

-

$

39

$

-

$

39

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

39

$

-

$

39

HELOCs

Substandard

$

-

$

-

$

-

$

-

$

-

$

2,146

$

20

$

1,402

$

3,568

Loss

-

-

-

-

-

4

-

538

542

Pass

-

-

-

-

-

9,169

41,724

13,959

64,852

Total HELOCs

$

-

$

-

$

-

$

-

$

-

$

11,319

$

41,744

$

15,899

$

68,962

Personal

Substandard

$

621

$

454

$

149

$

238

$

70

$

6

$

-

$

-

$

1,538

Loss

-

-

-

-

-

421

-

-

421

Pass

165,153

46,320

7,339

13,443

2,021

1,657

-

-

235,933

Total Personal

$

165,774

$

46,774

$

7,488

$

13,681

$

2,091

$

2,084

$

-

$

-

$

237,892

Other consumer

Substandard

$

-

$

-

$

-

$

-

$

-

$

-

$

8

$

-

$

8

Pass

-

-

-

-

-

-

9,960

-

9,960

Total Other

consumer

$

-

$

-

$

-

$

-

$

-

$

-

$

9,968

$

-

$

9,968

Total Popular U.S.

$

2,185,774

$

1,894,442

$

1,311,762

$

1,024,960

$

712,989

$

1,956,361

$

428,677

$

15,899

$

9,530,864

December 31, 2022

Term Loans

Revolving

Loans

Amortized

Cost Basis

Revolving

Loans

Converted to

Term Loans

Amortized

Cost Basis

Amortized Cost Basis by Origination Year

(In thousands)

2022

2021

2020

2019

2018

Prior

Years

Total

Popular, Inc.

Commercial:

Commercial multi-family

Watch

$

750

$

917

$

6,218

$

104,087

$

9,633

$

57,522

$

-

$

-

$

179,127

Special Mention

-

-

1,198

-

14,491

11,064

-

-

26,753

Substandard

-

-

-

9,305

7,373

6,267

100

-

23,045

Pass

640,421

422,247

259,724

226,440

163,363

377,808

2,785

-

2,092,788

Total commercial

multi-family

$

641,171

$

423,164

$

267,140

$

339,832

$

194,860

$

452,661

$

2,885

$

-

$

2,321,713

Commercial real estate non-owner occupied

Watch

$

173

$

38,395

$

27,667

$

18,297

$

34,708

$

129,118

$

-

$

-

$

248,358

Special Mention

-

4,361

19,970

8,870

-

100,809

-

-

134,010

Substandard

8,933

2,864

5,358

22,224

26,919

25,786

-

-

92,084

Pass

1,408,097

795,028

505,535

203,837

135,170

952,302

25,249

-

4,025,218

Total commercial

real estate non-

owner occupied

$

1,417,203

$

840,648

$

558,530

$

253,228

$

196,797

$

1,208,015

$

25,249

$

-

$

4,499,670

Commercial real estate owner occupied

Watch

$

2,296

$

5,271

$

10,644

$

5,354

$

37,744

$

126,573

$

-

$

-

$

187,882

Special Mention

10

284

5,570

6,578

1,076

62,361

-

-

75,879

Substandard

16,205

6,177

802

8,203

11,935

117,791

-

-

161,113

Doubtful

-

-

-

-

-

505

-

-

505

Pass

591,059

681,432

389,321

113,662

187,594

666,203

23,899

-

2,653,170

Total commercial

real estate owner

occupied

$

609,570

$

693,164

$

406,337

$

133,797

$

238,349

$

973,433

$

23,899

$

-

$

3,078,549

Commercial and industrial

Watch

$

44,704

$

4,403

$

17,515

$

20,878

$

23,921

$

52,134

$

60,799

$

-

$

224,354

Special Mention

3,799

3,609

6,084

1,383

6,827

46,040

6,286

-

74,028

Substandard

1,049

2,211

1,674

7,416

11,851

42,465

47,634

-

114,300

Doubtful

-

-

29

-

75

75

-

-

179

Loss

292

525

1

75

192

3

144

-

1,232

Pass

978,980

1,026,502

579,411

379,566

236,725

668,218

1,555,705

-

5,425,107

Total commercial

and industrial

$

1,028,824

$

1,037,250

$

604,714

$

409,318

$

279,591

$

808,935

$

1,670,568

$

-

$

5,839,200

December 31, 2022

Term Loans

Revolving

Loans

Amortized

Cost Basis

Revolving

Loans

Converted to

Term Loans

Amortized

Cost Basis

Amortized Cost Basis by Origination Year

(In thousands)

2022

2021

2020

2019

2018

Prior

Years

Total

Popular, Inc.

Construction

Watch

$

35,446

$

15,201

$

98

$

6,979

$

18,310

$

34,126

$

141

$

-

$

110,301

Special Mention

-

3

-

-

-

-

-

-

3

Substandard

-

-

11,052

-

6,540

2,095

-

-

19,687

Pass

177,316

180,449

107,447

95,380

10,863

23,581

32,957

-

627,993

Total construction

$

212,762

$

195,653

$

118,597

$

102,359

$

35,713

$

59,802

$

33,098

$

-

$

757,984

Mortgage

Substandard

$

-

$

2,583

$

4,165

$

7,974

$

5,383

$

103,757

$

-

$

-

$

123,862

Pass

685,881

754,231

528,494

388,016

295,033

4,621,954

-

-

7,273,609

Total mortgage

$

685,881

$

756,814

$

532,659

$

395,990

$

300,416

$

4,725,711

$

-

$

-

$

7,397,471

Leasing

Substandard

$

953

$

1,491

$

941

$

1,172

$

1,127

$

215

$

-

$

-

$

5,899

Loss

-

-

-

21

-

21

-

-

42

Pass

672,294

428,889

237,939

146,231

79,451

14,994

-

-

1,579,798

Total leasing

$

673,247

$

430,380

$

238,880

$

147,424

$

80,578

$

15,230

$

-

$

-

$

1,585,739

December 31, 2022

Term Loans

Revolving

Loans

Amortized

Cost Basis

Revolving

Loans

Converted to

Term Loans

Amortized

Cost Basis

Amortized Cost Basis by Origination Year

(In thousands)

2022

2021

2020

2019

2018

Prior

Years

Total

Popular, Inc.

Consumer:

Credit cards

Substandard

$

-

$

-

$

-

$

-

$

-

$

-

$

11,907

$

-

$

11,907

Loss

-

-

-

-

-

-

3

-

3

Pass

-

-

-

-

-

-

1,029,960

-

1,029,960

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

1,041,870

$

-

$

1,041,870

HELOCs

Substandard

$

-

$

-

$

-

$

-

$

-

$

2,146

$

20

$

1,402

$

3,568

Loss

-

-

-

-

-

4

-

538

542

Pass

-

-

-

-

-

9,169

44,678

13,959

67,806

Total HELOCs

$

-

$

-

$

-

$

-

$

-

$

11,319

$

44,698

$

15,899

$

71,916

Personal

Substandard

$

1,951

$

2,455

$

913

$

2,012

$

573

$

10,837

$

-

$

1,285

$

20,026

Loss

-

-

53

20

31

431

-

1

536

Pass

1,006,717

367,129

110,676

131,011

48,576

111,200

-

27,708

1,803,017

Total Personal

$

1,008,668

$

369,584

$

111,642

$

133,043

$

49,180

$

122,468

$

-

$

28,994

$

1,823,579

Auto

Substandard

$

6,764

$

11,171

$

10,466

$

10,243

$

4,597

$

2,382

$

-

$

-

$

45,623

Loss

23

41

48

25

7

14

-

-

158

Pass

1,156,654

961,571

588,200

426,169

248,328

85,827

-

-

3,466,749

Total Auto

$

1,163,441

$

972,783

$

598,714

$

436,437

$

252,932

$

88,223

$

-

$

-

$

3,512,530

Other consumer

Substandard

$

-

$

-

$

100

$

593

$

543

$

242

$

10,910

$

-

$

12,388

Loss

-

-

-

-

263

40

-

-

303

Pass

29,557

17,439

6,967

4,201

4,553

1,942

70,198

-

134,857

Total Other

consumer

$

29,557

$

17,439

$

7,067

$

4,794

$

5,359

$

2,224

$

81,108

$

-

$

147,548

Total Popular Inc.

$

7,470,324

$

5,736,879

$

3,444,280

$

2,356,222

$

1,633,775

$

8,468,021

$

2,923,375

$

44,893

$

32,077,769