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 Popular, Inc. Announces Fourth Quarter Financial Results
   Tuesday, January 24, 2017 8:00:08 AM ET

--Net income of $216.7 million and Adjusted net income of $358.1 million for the year 2016

--Net interest margin of 4.02% in Q4 2016, compared to 4.12% in Q3 2016

--Credit Quality (excluding covered loans): Non-performing loans held-in-portfolio (NPLs) decreased by $21.4 million from Q3 2016; NPLs to loans ratio stable at 2.5% vs. 2.6% in Q3 2016;

--Net charge-offs (NCOs) increased by $21.1 million; NCOs at 1.00% of average loans held-in-portfolio vs. 0.63% in Q3 2016;

--Allowance for loan losses of $510.3 million vs. $525.6 million in Q3 2016; Allowance for loan losses to loans held-in-portfolio at 2.24% vs. 2.33% in Q3 2016;

--Allowance for loan losses to NPLs at 91.5% vs. 90.7% in Q3 2016.

--Common Equity Tier 1 ratio of 16.47%, Book Value per Common Share of $50.08 and Tangible Book Value per Share of $43.12 at December 31, 2016



Popular, Inc. (the "Corporation" or "Popular") (BPOP ) reported a net loss of $4.1 million for the quarter ended December 31, 2016, compared to net income of $46.8 million for the quarter ended September 30, 2016. The results for the fourth quarter of 2016 reflect an after-tax charge amounting to $87 million, related to the unfavorable award under the portfolio sales arbitration with the FDIC, as receiver.

Mr. Richard L. Carrion, Chairman of the Board and Chief Executive Officer, said: "Despite the impact of the adverse FDIC arbitrations, during 2016 we demonstrated the strength of our franchise by generating strong revenues and improving credit quality. We also continued to achieve strong loan growth in our U.S. business. As we announced today, we are pleased that the progress made during 2016 allowed us to increase our quarterly common stock dividend from $0.15 to $0.25 and establish a $75 million common stock repurchase program."

Significant Events

As previously announced, BPPR has filed statements of claim requesting that a review board determine certain matters relating to the loss-share claims under its commercial loss share agreement with the FDIC, as receiver for Westernbank (the "FDIC"),including with respect to the FDIC’s refusal to concur in certain of BPPR’s portfolio sales under the commercial loss share agreement, for which BPPR was seeking damages in the amount of $88.5 million plus interest. On December 12, 2016, the review board in the arbitration described above issued an award denying BPPR’s claim. As a result, for the quarter ending December 31, 2016, the Corporation recognized a pre-tax charge of $116.8 million in connection with unreimbursed losses considered in the arbitration, the related adjustment to the true-up obligation owed to the FDIC at the end of the loss-share agreements in 2020 and recoveries previously incorporated in the net damages claimed in the arbitration.

Earnings Highlights                                                                                               
                                                                                                                                                                                                                                                                                                                                                
(Unaudited)                                                                                                                           Quarters ended                                                                                    Years ended
--------------------------------------------------------------------- -------------------- -------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------------------------------
(Dollars in thousands, except per share information)                                                     31-Dec-16                                    30-Sep-16   31-Dec-15                                                                 31-Dec-16    31-Dec-15
--------------------------------------------------------------------- -------------------- --------------------------------------------------------------- --------------------------------------------------------------- ---------                                                                ---------- -------------------- ----------
Net interest income                                                                                                          $355,405                                                        $353,687                       $352,500                                                                $1,422,055                      $1,408,983
Provision for loan losses                                                                                                      40,924                                                          42,594                         57,711                                                                   171,126                         217,458
Provision (reversal) for loan losses - covered loans [1]                                                       441                                          750         820                                                                   (1,110)       24,020
--------------------------------------------------------------------- -------------------- --------------------------------------------------------------- --------------------------------------------------------------- ---------                                                                ---------- -------------------- ----------
Net interest income after provision for loan losses                                                                           314,040                                                         310,343                        293,969                                                                 1,252,039                       1,167,505
FDIC loss-share (expense) income                                                                                            (130,334)                                                        (61,723)                        (4,359)                                                                 (207,779)                          20,062
Other non-interest income                                                                                                     130,159                                                         137,701                        136,797                                                                   505,715                         499,479
Goodwill impairment charge                                                                                                          -                                                           3,801                              -                                                                     3,801                               -
Other operating expenses                                                                                   320,871                                      319,871     305,808                                                                 1,251,834    1,288,221
--------------------------------------------------------------------- -------------------- --------------------------------------------------------------- --------------------------------------------------------------- ---------                                                                ---------- -------------------- ----------
(Loss) income from continuing operations before income tax                                                                    (7,006)                                                          62,649                        120,599                                                                   294,340                         398,825
Income tax (benefit) expense                                                                               (1,766)                                       15,839    (16,827)                                                                    78,784    (495,172)
--------------------------------------------------------------------- -------------------- --------------------------------------------------------------- --------------------------------------------------------------- ---------                                                                ---------- -------------------- ----------
(Loss) income from continuing operations                                                                   (5,240)                                       46,810     137,426                                                                   215,556      893,997
--------------------------------------------------------------------- -------------------- --------------------------------------------------------------- --------------------------------------------------------------- ---------                                                                ---------- -------------------- ----------
Income from discontinued operations, net of tax                                                              1,135                                            -           -                                                                     1,135        1,347
--------------------------------------------------------------------- -------------------- --------------------------------------------------------------- --------------------------------------------------------------- ---------                                                                ---------- -------------------- ----------
Net (loss) income                                                                                         $(4,105)                                      $46,810    $137,426                                                                  $216,691     $895,344
--------------------------------------------------------------------- -------------------- --------------------------------------------------------------- --------------------------------------------------------------- ---------                                                                ---------- -------------------- ----------
Net (loss) income applicable to common stock                                                              $(5,036)                                      $45,880    $136,495                                                                  $212,968     $891,621
--------------------------------------------------------------------- -------------------- --------------------------------------------------------------- --------------------------------------------------------------- ---------                                                                ---------- -------------------- ----------
Net (loss) income per common share from continuing operations - Basic                                      $(0.06)                                        $0.44       $1.32                                                                     $2.05        $8.65
--------------------------------------------------------------------- -------------------- --------------------------------------------------------------- --------------------------------------------------------------- ---------                                                                ---------- -------------------- ----------
Net (loss) income per common share from continuing operations -                                            $(0.06)                                        $0.44       $1.32                                                                     $2.05        $8.64
Diluted
--------------------------------------------------------------------- -------------------- ----------------------------------------   -------------------- ----------------------------------------   -------------------- ---------                                                                ---------- -------------------- ----------
Net income per common share from discontinued operations - Basic                                             $0.01                                           $-          $-                                                                     $0.01        $0.01
--------------------------------------------------------------------- -------------------- --------------------------------------------------------------- --------------------------------------------------------------- ---------                                                                ---------- -------------------- ----------
Net income per common share from discontinued operations - Diluted                                           $0.01                                           $-          $-                                                                     $0.01        $0.01
--------------------------------------------------------------------- -------------------- --------------------------------------------------------------- --------------------------------------------------------------- ---------                                                                ---------- -------------------- ----------
[1] Covered loans represent loans acquired in the Westernbank
FDIC-assisted transaction that are covered under an FDIC
loss-sharing agreement.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                      

Adjusted results - Non-GAAP

The Corporation prepared 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 a reported basis, management monitors the "Adjusted net income" of the Corporation and excludes the impact of certain transactions on the results of its operations. Management believes that the "Adjusted net income" provides meaningful information about the underlying performance of the Corporation’s ongoing operations. The "Adjusted net income" is a non-GAAP financial measure.

The following tables reflect the results of operations for the fourth and third quarters of 2016, with adjustments to exclude the impact of certain events during the fourth and third quarters of 2016, to arrive at the adjusted net income.

Adjusted Net Income - Reconciliation to GAAP Financial Measures

(Unaudited)                                       
-------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
(In thousands)                                                                           31-Dec-16
-------------------------------------- -------------------- ---------------------------------------------------------------------------------------------------------
                             Pre-tax              Income tax            Impact on net
                                                                                                             effect                                    income
-------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
U.S. GAAP Net loss                                                                                                    $(4,105)
Non-GAAP Adjustments:
FDIC arbitration award[1]                                                116,833                                  (30,123) [3]                                86,710
Other FDIC - LSA adjustments[2]                                            9,874                                   (2,797) [3]                                 7,077
Income from discontinued operations[4]                (2,015)                    880                (1,135)
-------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted net income (Non-GAAP)                                $88,547
-------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
[1]Represents the arbitration decision denying BPPR’s
request for reimbursement in certain shared loss claims.
[2]Additional adjustments, including prior period
recoveries, related to restructured commercial loans to reduce the
indemnification asset to its expected realizable value.
[3]Gains and losses related to assets acquired from
Westernbank as part of the FDIC assisted transaction are subject
to the capital gains tax rate of 20%. Other items related to the
FDIC loss-sharing agreements are subject to the statutory tax rate
of 39%.
[4]Represents income from discontinued operations
associated with the BPNA reorganization.
--------------------------------------------------------------------------------------------------------------------------------------------------------------
 
(Unaudited)                               
------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
(In thousands)                                                                   30-Sep-16
------------------------------ -------------------- ---------------------------------------------------------------------------------------------------------
                     Pre-tax              Income tax            Impact on net
                                                                                                     effect                                    income
------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
U.S. GAAP Net income                                                                        $46,810
Non-GAAP Adjustments:
FDIC arbitration award[1]                                         54,924                                  (10,985)                                    43,939
Goodwill impairment charge[2]                   3,801                      -                  3,801
------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted Net income (Non-GAAP)                        $94,550
------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
[1]Represents the arbitration decision denying BPPR’s
request for reimbursement in certain shared loss claims. Gains and
losses related to assets acquired from Westernbank as part of the
FDIC assisted transaction are subject to the capital gains tax rate
of 20%.
[2]Represents goodwill impairment charge in the
Corporation’s securities subsidiary. The securities subsidiary is
a limited liability company with a partnership election.
Accordingly, its earnings flow through Popular, Inc., holding
company, for income tax purposes. Since Popular, Inc. has a full
valuation allowance on its deferred tax assets, this results in an
effective tax rate of 0%.
------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                              

Net interest income

Net interest income for the quarter ended December 31, 2016 was $355.4 million, compared to $353.7 million for the previous quarter. Net interest margin was 4.02% for the quarter compared to 4.12% for the previous quarter.

The increase in net interest income was mainly related to:

-- Higher income from money market, trading and investment securities by $4.1 million due mainly to higher average balance of mortgage backed and U.S. Treasury securities; and

-- Higher income from commercial loans by $2.7 million, or 3 basis points, driven by loan growth in the U.S. and higher yields at BPPR due to the impact on the variable rate portfolio of the increase in market rates in the recent months.

These positive variances were partially offset by:

-- Lower income from consumer loans by $2.0 million, or 1 basis point, driven by lower average balances at both BPPR and BPNA due to high yield loan portfolio run-offs;

-- Lower income from the Westernbank ("WB") loan portfolio by $1.3 million, or 9 basis points, due to normal run-off and as a result of the quarterly recast process; and

-- Higher interest expense on deposits by $2.4 million, or 1 basis point, mainly related to higher deposits costs in the U.S. to fund loan growth and an unfavorable adjustment on equity linked deposits at BPPR. Average balance of deposits increased by 4% related to increases in government deposits in P.R. and retail deposits in the U.S.

BPPR’s net interest income amounted to $305.4 million for the quarter ended December 31, 2016, compared to $303.7 million for the previous quarter. The increase of $1.7 million in net interest income was mainly due to higher income from investment securities and higher yield from commercial loans, partially offset by lower income from WB loans, consumer loans and an unfavorable adjustment on equity linked deposits, as mentioned above. The net interest margin for the fourth quarter was 4.39%, a decline of 10 basis points when compared to 4.49% for the previous quarter. The change in the mix of earning assets as higher yielding assets mature, particularly WB and consumer loans, and the investment portfolio and cash at the Fed increases, resulted in a negative impact to the net interest margin.

BPNA’s net interest income was $65.3 million, flat when compared with the previous quarter. Higher income from investment securities and commercial loans, were offset by lower income from consumer loans and higher costs of deposits. Net interest margin decreased 14 basis points to 3.47% compared to 3.61% for the previous quarter driven by a higher cost of deposits to fund loan growth. U.S. earning assets yielded 4.21%, compared to 4.32% in the previous quarter, while the cost of interest bearing liabilities was 0.96%, compared to 0.94% in the previous quarter. The change in the mix of earning assets driven by investments in securities and commercial loans at lower rates as well as higher funding costs had a negative impact on the net interest margin.

Non-interest (loss) income

The unfavorable variance in non-interest (loss) income of $76.2 million, when compared to the third quarter of 2016, was primarily driven by:

-- Higher FDIC loss-share expense by $68.6 million primarily due to a $116.8 million charge related to the portfolio sales arbitration decision denying BPPR’s claims under the commercial loss sharing agreement and $9.9 million in additional adjustments related to restructured commercial loans. The results for the third quarter included a $54.9 million charge related to a restructured loan adverse arbitration award;

-- Unfavorable variance in net gain on sale of loans of $8.5 million as a result of the gain on the sale of a non-accrual public sector loan during the third quarter; and

-- Lower other operating income by $2.9 million mainly due to lower earnings from investments under the equity method by $2.7 million.

These negative variances were partially offset by:

-- Higher other service fees by $6.1 million due to higher insurance commission revenues related to contingent commissions typically received during the fourth quarter. Refer to Table F for a breakdown of other service fees.

Refer to Table B for further details.

Financial Impact of the 2010 FDIC-Assisted Transaction                                                                                                   
                                                  
(Unaudited)                                                                                           Quarters ended                                                                               Years ended
---------------------------------------------------------------------------------------- ------------------------------------------------------------------------------                     ---------------------------------------------------------------
(In thousands)                                                            31-Dec-16    30-Sep-16    31-Dec-15                                 31-Dec-16              31-Dec-15
---------------------------------------------------------------------------------------- ------------- -------------------- ---------- -------------------- ----------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                       
Income Statement
------------------------------------------------------------------
Interest income on WB loans                                                                    $39,642                         $40,867                         $47,870                                  $175,207                                  $208,779
Total FDIC loss-share (expense) income                                                       (130,334)                        (61,723)                         (4,359)                                 (207,779)                                    20,062
Provision (reversal) for loan losses- WB loans                              (2,292)        6,612        7,817                                   (3,318)                 54,113
---------------------------------------------------------------------------------------- ------------- -------------------- ---------- -------------------- ----------                      -------------------- -------------------- --------------------
Total (expenses) revenues less provision (reversal) for loan losses       $(88,400)    $(27,468)      $35,694                                 $(29,254)               $174,728
---------------------------------------------------------------------------------------- ------------- -------------------- ---------- -------------------- ----------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                       
Balance Sheet
------------------------------------------------------------------
WB loans                                                                                    $1,861,106                      $1,896,099                      $2,113,440
FDIC loss-share asset                                                                           69,334                         152,467                         310,221
FDIC true-up payment obligation                                             153,158      134,487      119,745        
---------------------------------------------------------------------------------------- ------------- -------------------- ---------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
 

See additional details on accounting for the 2010 FDIC-Assisted transaction in Table O.

Operating expenses

Operating expenses amounted to $320.9 million for the fourth quarter of 2016, a decrease of $2.8 million when compared to the third quarter of 2016. The decrease in operating expenses was driven primarily by:

-- Lower other operating expense by $10.9 million mainly due to lower operational losses at BPPR and BPNA as a result of higher reserves for legal matters, curtailment losses on insured mortgage claims in our mortgage servicing business and a higher incidence of credit card fraud losses during the third quarter; and

-- A goodwill impairment charge of $3.8 million at the securities subsidiary during the third quarter of 2016, recorded as part of the Corporation’s annual goodwill impairment analysis.

These decreases were partially offset by:

-- Higher personnel cost by $1.2 million mainly due to higher training and development, severance and employee benefit cost, partially offset by lower salaries and commissions;

-- Higher professional fees by $4.4 million mainly due to higher legal fees and other professional fees related to the FDIC arbitration proceedings, partially offset by lower collections, appraisals and other credit related fees;

-- Higher business promotion by $2.7 million due to seasonally higher advertising expense at BPPR;

-- Higher OREO expenses by $2.4 million mainly due to higher losses and write-downs on mortgage OREO at BPPR; and

-- Higher credit and debit card processing, volume, interchange and other expenses by $1.2 million due to earned volume credits during the third quarter.

Non-personnel credit-related costs, which include collections, appraisals, credit related fees, and OREO expenses, amounted to $14.8 million for the fourth quarter of 2016, compared to $15.3 million for the third quarter of 2016. The decrease was principally due to lower collections expense at BPPR.

Full-time equivalent employees were 7,828 as of December 31, 2016, compared to 7,866 as of September 30, 2016.

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

Income taxes

For the quarter ended December 31, 2016, the Corporation recorded an income tax benefit of $1.8 million from its continued operations, compared to an income tax expense of $15.8 million for the previous quarter. The decline in the income tax expense is mainly driven by the operating loss at BPPR for the fourth quarter, compared to the taxable income for the previous quarter. In the third quarter BPPR recognized a $4.4 million benefit related to the reversal of uncertain tax positions reserves associated with expired statutory provisions.

The effective income tax rate for the fourth quarter was 25%, remaining flat from the previous quarter. The effective tax rate is impacted by the composition and source of the taxable income.

Credit Quality

Credit quality trends continued stable when compared to the third quarter of 2016. The Puerto Rico region experienced a decrease of NPLs, a decrease of inflows to NPLs, and higher charge-offs. The U.S. operation continued to reflect positive results with strong growth and favorable credit quality metrics. The Corporation continues to be attentive to changes in credit quality trends given challenging economic conditions in Puerto Rico.

-- Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $9.5 million quarter-over-quarter, mainly driven by lower mortgage inflows of $12.9 million.

-- Non-performing loans held-in-portfolio decreased by $21.4 million from the third quarter of 2016, driven by lower mortgage and commercial NPLs of $15.9 million and $7.2 million, respectively. At December 31, 2016, NPLs to total loans held-in-portfolio ratio was 2.5%, compared to 2.6% in the third quarter of 2016.

-- Net charge-offs increased by $21.1 million from the third quarter of 2016. Excluding $7.1 million recovery related to the sale of previously charged-off credit cards and personal loans in the third quarter of 2016, net charge-offs increased by $14.0 million quarter over quarter. This increase was mainly driven by higher commercial and mortgage NCOs in the BPPR segment by $6.0 million and $5.7 million, respectively. Commercial NCOs included a $5.9 million charge-off taken on a single borrower previously reserved. The Corporation’s ratio of annualized net charge-offs to average non-covered loans held-in-portfolio stood at 1.00%, compared to 0.63% in the third quarter of 2016. The $7.1 million recovery from consumer loans reduced the NCO ratio by 13 bps in the previous quarter. Refer to Table J for further information on net charge-offs and related ratios.

-- The allowance for loan losses decreased by $15.3 million from the third quarter 2016 to $510.3 million. The general and specific reserves related to non-covered loans totaled $398.9 million and $111.4 million, respectively, at quarter-end, compared with $396.5 million and $129.1 million, respectively, as of September 30, 2016. The ratio of the allowance for loan losses to loans held-in-portfolio was 2.24% in the fourth quarter of 2016, compared to 2.33% from the previous quarter.

-- The ratio of the allowance for loan losses to NPLs held-in-portfolio increased slightly to 91.5%, compared to 90.7% in the previous quarter.

-- The provision for loan losses for the fourth quarter of 2016 remained flat amounting to $40.9 million. The third quarter of 2016 included $7.1 million recovery impact from the sale of the above mentioned consumer loans. The provision to net charge-offs ratio was 72.8% in the fourth quarter of 2016, compared to 121.2% in the previous quarter.

Non-Performing Assets                                                                                                                                        
(Unaudited)                                                                                                              
------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
(In thousands)                                                                                                        31-Dec-16              30-Sep-16              31-Dec-15
------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total non-performing loans held-in-portfolio, excluding covered loans                                                                          $557,915                                  $579,325                                  $601,799
Non-performing loans held-for-sale                                                                                                                    -                                         -                                    45,169
Other real estate owned ("OREO"), excluding covered OREO                180,445                184,828                155,231
------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total non-performing assets, excluding covered assets                                                                                           738,360                                   764,153                                   802,199
Covered loans and OREO                                                                                                        36,044                 41,211                 40,571
------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total non-performing assets                                                                                                 $774,404               $805,364               $842,770
------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net charge-offs for the quarter (excluding covered loans)                                                                    $56,216                $35,140                $82,870
------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
 
                                                                                                                                                                                                                        
Ratios (excluding covered loans):                                                                                        
------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Non-covered loans held-in-portfolio                                                                                                         $22,773,747                               $22,595,972                               $22,346,115
Non-performing loans held-in-portfolio to loans held-in-portfolio                                                                                 2.45%                                     2.56%                                     2.69%
Allowance for loan losses to loans held-in-portfolio                                                                                               2.24                                      2.33                                      2.25
Allowance for loan losses to non-performing loans, excluding loans                                                             91.47                  90.73                  83.57
held-for-sale
------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
 
Refer to Table H for additional information.
Provision for Loan Losses                                                                             
                                                                                                                                                                                                       
(Unaudited)                                                                         Quarters ended                                                                       Years ended
---------------------------------------------------- -------------------- ------------------------------------------------------------------------                     ----------------------------------------------------
(In thousands)                                          31-Dec-16   30-Sep-16   31-Dec-15   31-Dec-16        31-Dec-15
---------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- --------- -------------------- --------- -------------------- --------------------
Provision for loan losses:
       BPPR                                                                 $37,357                        $36,281                        $55,635                       $155,860                                  $216,832
       BPNA                                                3,567       6,313       2,076      15,266                    626
---------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- --------- -------------------- --------- -------------------- --------------------
Total provision for loan losses - non-covered loans      $40,924     $42,594     $57,711    $171,126                                  $217,458
---------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- --------- -------------------- ---------                      --------------------
Provision (reversal) for loan losses - covered loans         441         750         820                        (1,110)                                    24,020
---------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ---------                      ---------                      --------------------
Total provision for loan losses                          $41,365     $43,344     $58,531    $170,016               $241,478
---------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- --------- -------------------- --------- -------------------- --------------------
 
Credit Quality by Segment                                                                      
(Unaudited)
(In thousands)                                                                                               Quarters ended
--------------------------------------------------------------------- ---------------------------------------------------------------------------------------------
BPPR                                                                     31-Dec-16   30-Sep-16   31-Dec-15
--------------------------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ---------
Provision for loan losses                                                                    $37,357                        $36,281                        $55,635
Net charge-offs                                                                               53,416                         32,959                         82,011
Total non-performing loans held-in-portfolio, excluding covered loans                        532,508                        551,238                        574,834
Allowance / non-covered loans held-in-portfolio                             2.73%       2.80%       2.67%
--------------------------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ---------
                                                                                            
                                                                                          Quarters ended
--------------------------------------------------------------------- ---------------------------------------------------------------------------------------------
BPNA                                                                     31-Dec-16   30-Sep-16   31-Dec-15
--------------------------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ---------
Provision for loan losses                                                                     $3,567                         $6,313                         $2,076
Net charge-offs                                                                                2,800                          2,181                            859
Total non-performing loans held-in-portfolio                                                  25,407                         28,087                         26,965
Allowance / non-covered loans held-in-portfolio                             0.75%       0.78%       0.69%
--------------------------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ---------
 
Financial Condition Highlights                                    
                      
(Unaudited)                   
-------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                      31-Dec-16        30-Sep-16        31-Dec-15
----------------------------------------------------------------------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ----------
Cash and money market investments                                                                        $3,252,611       $4,314,040       $2,543,766
Trading and investment securities                                                                         8,535,530                                                                 7,968,004                                                                 6,407,802
Loans not covered under loss-sharing agreements with the FDIC                                            22,773,747                                                                22,595,972                                                                22,346,115
Loans covered under loss-sharing agreements with the FDIC                                                   572,878                                                                   588,211                                                                   646,115
Total assets                                                                                             38,661,609                                                                39,054,296                                                                35,761,733
Deposits                                                                                                 30,496,224                                                                30,327,045                                                                27,209,723
Borrowings                                                                                                2,055,477                                                                 2,364,984                                                                 2,425,853
Liabilities from discontinued operations                                                                          -                                                                     1,815                                                                     1,815
Total liabilities                                                                                        33,463,652                                                                33,673,901                                                                30,656,409
Stockholders’ equity                     5,197,957        5,380,395        5,105,324
----------------------------------------------------------------------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ----------
                                                                                                                                                                                                                                      

Total assets decreased by $0.4 billion from the third quarter of 2016 driven by:

-- A decrease of $1.1 billion in money market investments mainly at BPPR due to the deployment of liquidity into longer termed investment securities; and

-- A decrease of $83.1 million in the FDIC loss-share asset due mainly to the $81.3 million write-down related to the review board’s denial of BPPR’s claim in connection with arbitration proceedings with the FDIC during the fourth quarter of 2016. Refer to Table O for further details.

These negative variances were partially offset by:

-- An increase of $0.6 billion in investment securities available-for-sale mainly at BPPR due to purchases of U.S Treasury securities and mortgage-backed agency pools; and

-- A net increase of $0.2 billion in non-covered loans held-in-portfolio mainly driven by growth in the commercial portfolio at BPNA by $0.3 billion, partially offset by lower balances of consumer, residential mortgage, and commercial loans at BPPR by $0.1 billion.

Total liabilities decreased by $0.2 billion from the third quarter of 2016, principally driven by:

-- A decrease of $0.3 billion in federal funds purchased and assets sold under agreements to repurchase mainly due to a net decrease in repurchase agreements principally at BPPR; and

-- A decrease of $68.1 million in other liabilities primarily due to a reduction in the liability for GNMA loans with a repurchase option due to higher repurchase activity during the fourth quarter, partially offset by the impact on the true-up payment obligation related to the adverse portfolio sales arbitration award and other commercial loss share agreement adjustments and the pre-tax adjustment of pension and postretirement benefit plans.

These negative variances were partially offset by:

-- An increase of $0.2 billion in deposits mainly due to increases in savings and money market deposits at BPNA, partially offset by decreases in deposits from the Puerto Rico public sector at BPPR. Refer to Table G for additional information on deposits.

Stockholders’ equity decreased by approximately $182.4 million from the third quarter of 2016, mainly as a result of a net loss for the quarter of $4.1 million, declared dividends of $15.6 million on common stock and $0.9 million in dividends on preferred stock, higher net unrealized losses on securities available-for-sale by $152.6 million, and a $11.4 million after-tax adjustment of pension and postretirement benefit plans.

Common equity tier-1 ratio ("CET1"), book value per share and tangible book value per share were 16.47%, $50.08 and $43.12, respectively at December 31, 2016 compared to 16.64%, $51.85 and $44.86 at September 30, 2016. Refer to Table A for capital ratios.

Refer to Table C for the Statements of Financial Condition.

Cautionary Note Regarding Forward-Looking Statements

The information contained in this press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only management’s beliefs regarding future events and current expectations, many of which, by their nature, are inherently uncertain and outside of the control of the Corporation. It is possible that the Corporation’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated or implied in these forward-looking statements. Please refer to our Annual Report on Form 10-K for the year ended December 31, 2015, the Quarterly Reports on Form 10-Q for the quarters ended March 31, 2016, June 30, 2016 and September 30, 2016, and our other filings with the Securities and Exchange Commission for a discussion of some of the risks and important factors that could affect the Corporation’s future results and financial condition. Those filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.SEC.gov). The Corporation does not undertake to update or revise any forward-looking statement to reflect events or circumstances that may arise after the date of such statements.

Founded in 1893, Popular, Inc. is the leading banking institution by both assets and deposits in Puerto Rico and ranks among the top 50 U.S. banks by assets. Popular provides retail, mortgage and commercial banking services through its principal banking subsidiary, Banco Popular de Puerto Rico, as well as auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the United States, Popular has established a community-banking franchise providing a broad range of financial services and products with branches in New York, New Jersey and Florida under the name of Popular Community Bank.

Conference Call

Popular will hold a conference call to discuss its financial results today Tuesday, January 24, 2017 at 10:00 a.m. Eastern Time. The call will be open to the public and broadcasted live over the Internet, and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through 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, February 24, 2017. The replay dial in is 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10098325.

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

Popular, Inc.
Financial Supplement to Fourth Quarter 2016 Earnings Release
 
Table A - Selected Ratios and Other Information
 
Table B - Consolidated Statement of Operations
 
Table C - Consolidated Statement of Financial Condition
 
Table D - Consolidated Average Balances and Yield / Rate Analysis -
QUARTER
 
Table E - Consolidated Average Balances and Yield / Rate Analysis -
YEAR-TO-DATE
 
Table F - Mortgage Banking Activities and Other Service Fees
 
Table G - Loans and Deposits
 
Table H - Non-Performing Assets
 
Table I - Activity in Non-Performing Loans
 
Table J - Allowance for Credit Losses, Net Charge-offs and Related
Ratios
 
Table K - Allowance for Loan Losses - Breakdown of General and
Specific Reserves - CONSOLIDATED
 
Table L - Allowance for Loan Losses - Breakdown of General and
Specific Reserves - PUERTO RICO OPERATIONS
 
Table M - Allowance for Loan Losses - Breakdown of General and
Specific Reserves - U.S. MAINLAND OPERATIONS
 
Table N - Reconciliation to GAAP Financial Measures
 
Table O - Financial Information - Westernbank Loans
 
Table P - Adjusted Net Income for the Years Ended December 31, 2016
and 2015 (Non-GAAP)
 
POPULAR, INC.                                                                                                                                                                                                                                        
Financial Supplement to Fourth Quarter 2016 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
                                                                                                                                             
                                                                                                                                                                                                        
------------------------------------------------------ -------------------- -------------------- -------------------- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                Quarters ended                                                                                                                                                                                        Years ended
                                            31-Dec-16         30-Sep-16         31-Dec-15                  31-Dec-16                  31-Dec-15
------------------------------------------------------ -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Basic EPS from continuing operations                                                                                      $(0.06)                                                                      $0.44                                                                      $1.32                                                                               $2.05                                                                               $8.65
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Basic EPS from discontinued operations                                                                                      $0.01                                                                         $-                                                                         $-                                                                               $0.01                                                                               $0.01
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Total Basic EPS                                                                                                           $(0.05)                                                                      $0.44                                                                      $1.32                                                                               $2.06                                                                               $8.66
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Diluted EPS from continuing operations                                                                                    $(0.06)                                                                      $0.44                                                                      $1.32                                                                               $2.05                                                                               $8.64
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Diluted EPS from discontinued operations                                                                                    $0.01                                                                         $-                                                                         $-                                                                               $0.01                                                                               $0.01
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Total Diluted EPS                                                                                                         $(0.05)                                                                      $0.44                                                                      $1.32                                                                               $2.06                                                                               $8.65
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Average common shares outstanding                                                                                     103,368,820                                                                103,296,443                                                                103,098,249                                                                         103,275,264                                                                         102,967,186
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Average common shares outstanding - assuming dilution                                                                 103,368,820                                                                103,465,385                                                                103,259,503                                                                         103,377,283                                                                         103,124,309
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Common shares outstanding at end of period                                                                            103,790,932                                                                103,762,596                                                                103,618,976                                                                         103,790,932                                                                         103,618,976
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Market value per common share                                                                                              $43.82                                                                     $38.22                                                                     $28.34                                                                              $43.82                                                                              $28.34
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Market capitalization - (In millions)                                                                                      $4,548                                                                     $3,966                                                                     $2,937                                                                              $4,548                                                                              $2,937
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Return on average assets                                                                                                  (0.04%)                                                                      0.49%                                                                      1.53%                                                                               0.58%                                                                               2.54%
                                                                                                                                .                                                                          .
Return on average common equity                                                                                           (0.38%)                                                                      3.46%                                                                     10.77%                                                                               4.07%                                                                              19.16%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Net interest margin                                                                                                         4.02%                                                                      4.12%                                                                      4.42%                                                                               4.22%                                                                               4.48%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Common equity per share                                                                                                    $49.60                                                                     $51.37                                                                     $48.79                                                                              $49.60                                                                              $48.79
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Book value per share                                                                                                       $50.08                                                                     $51.85                                                                     $49.27                                                                              $50.08                                                                              $49.27
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Tangible common book value per common share (non-GAAP)                                                                     $43.12                                                                     $44.86                                                                     $42.18                                                                              $43.12                                                                              $42.18
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Tangible common equity to tangible assets (non-GAAP)                                                                       11.78%                                                                     12.13%                                                                     12.46%                                                                              11.78%                                                                              12.46%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Tier 1 capital                                                                                                             16.47%                                                                     16.64%                                                                     16.21%                                                                              16.47%                                                                              16.21%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Total capital                                                                                                              19.46%                                                                     19.65%                                                                     18.78%                                                                              19.46%                                                                              18.78%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Tier 1 leverage                                                                                                            10.91%                                                                     11.21%                                                                     11.82%                                                                              10.91%                                                                              11.82%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Common Equity Tier 1 capital                                      16.47%            16.64%            16.21%                     16.47%                     16.21%
------------------------------------------------------ -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
POPULAR, INC.
Financial Supplement to Fourth Quarter 2016 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
                                                                                     Quarters ended                  Variance     Quarter ended    Variance                    Years ended
(In thousands, except per share information)                                               31-Dec-16   30-Sep-16       Q4 2016       31-Dec-15       Q4 2016    31-Dec-16    31-Dec-15
                                                                                                                                                                            vs. Q3 2016                                                         vs. Q4 2015
---------------------------------------------------------------------------------------  -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
Interest income:                                                                                                                                                                                                                                                          
                                   Loans                                                                       $363,252                       $363,550                           $(298)                           $364,484                         $(1,232)                      $1,459,720                      $1,458,706
                                   Money market investments                                                       5,108                          4,568                              540                              1,949                            3,159                          16,428                           7,243
                                   Investment securities                                                         41,283                         37,732                            3,551                             32,795                            8,488                         152,011                         126,064
                Trading account securities                                  1,401       1,449          (48)           2,129         (728)        6,414       11,001
---------------------------------- ----------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
                Total interest income                                     411,044     407,299         3,745         401,357         9,687    1,634,573    1,603,014
---------------------------------- ----------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
Interest expense:
                                   Deposits                                                                      34,742                         32,362                            2,380                             27,054                            7,688                         127,577                         107,533
                                   Short-term borrowings                                                          1,761                          2,132                            (371)                              1,693                               68                           7,812                           7,512
                Long-term debt                                             19,136      19,118            18          20,110         (974)       77,129       78,986
---------------------------------- ----------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
                Total interest expense                                     55,639      53,612         2,027          48,857         6,782      212,518      194,031
---------------------------------- ----------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
Net interest income                                                                                             355,405                        353,687                            1,718                            352,500                            2,905                       1,422,055                       1,408,983
Provision for loan losses - non-covered loans                                                                    40,924                         42,594                          (1,670)                             57,711                         (16,787)                         171,126                         217,458
Provision (reversal) for loan losses - covered loans                                             441         750         (309)             820         (379)      (1,110)       24,020
------------------------------------------------------------------------------------------------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
Net interest income after provision for loan losses                                          314,040     310,343         3,697         293,969        20,071    1,252,039    1,167,505
------------------------------------------------------------------------------------------------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
Service charges on deposit accounts                                                                              39,902                         40,776                            (874)                             39,993                             (91)                         160,836                         160,108
Other service fees                                                                                               65,274                         59,169                            6,105                             66,928                          (1,654)                         234,770                         236,090
Mortgage banking activities                                                                                      14,488                         15,272                            (784)                             23,430                          (8,942)                          56,538                          81,802
Net gain and valuation adjustments on investment securities                                                          30                            349                            (319)                                  -                               30                           1,962                             141
Other-than-temporary impairment losses on investment securities                                                       -                              -                                -                                  -                                -                           (209)                        (14,445)
Trading account loss                                                                                            (1,627)                          (113)                          (1,514)                            (1,631)                                4                           (785)                         (4,723)
Net gain (loss) on sale of loans, including valuation adjustments on                                                  -                          8,549                          (8,549)                               (60)                               60                           8,245                             542
loans held-for-sale
Adjustments (expense) to indemnity reserves on loans sold                                                       (3,051)                        (4,390)                            1,339                            (8,647)                            5,596                        (17,285)                        (18,628)
FDIC loss-share (expense) income                                                                              (130,334)                       (61,723)                         (68,611)                            (4,359)                        (125,975)                       (207,779)                          20,062
Other operating income                                                                        15,143      18,089       (2,946)          16,784       (1,641)       61,643       58,592
------------------------------------------------------------------------------------------------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
                Total non-interest (expense) income                         (175)      75,978      (76,153)         132,438     (132,613)      297,936      519,541
---------------------------------- ----------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
Operating expenses:
Personnel costs
                                   Salaries                                                                      77,275                         77,770                            (495)                             77,578                            (303)                         308,135                         304,618
                                   Commissions, incentives and other bonuses                                     17,405                         18,528                          (1,123)                             18,015                            (610)                          73,684                          79,305
                                   Pension, postretirement and medical insurance                                 12,481                         13,413                            (932)                             10,393                            2,088                          51,284                          44,059
                Other personnel costs, including payroll taxes             15,292      11,513         3,779          13,235         2,057       54,373       49,537
---------------------------------- ----------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
                                   Total personnel costs                                                        122,453                        121,224                            1,229                            119,221                            3,232                         487,476                         477,519
Net occupancy expenses                                                                                           21,883                         21,626                              257                             20,616                            1,267                          85,653                          86,888
Equipment expenses                                                                                               16,494                         15,922                              572                             16,035                              459                          62,225                          60,110
Other taxes                                                                                                      10,615                         11,324                            (709)                             10,159                              456                          42,304                          39,797
Professional fees
                                   Collections, appraisals and other credit related fees                          1,128                          4,005                          (2,877)                              4,438                          (3,310)                          14,607                          23,098
                                   Programming, processing and other technology services                         53,196                         52,174                            1,022                             48,195                            5,001                         205,466                         191,895
                                   Legal fees, excluding collections                                             14,702                         11,428                            3,274                              6,721                            7,981                          42,393                          26,122
                Other professional fees                                    16,667      13,659         3,008          18,500       (1,833)       60,577       67,870
---------------------------------- ----------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
                                   Total professional fees                                                       85,693                         81,266                            4,427                             77,854                            7,839                         323,043                         308,985
Communications                                                                                                    5,780                          5,785                              (5)                              6,759                            (979)                          23,897                          25,146
Business promotion                                                                                               15,473                         12,726                            2,747                             15,162                              311                          53,014                          52,076
FDIC deposit insurance                                                                                            5,926                          5,854                               72                              5,386                              540                          24,512                          27,626
Other real estate owned (OREO) expenses                                                                          13,703                         11,295                            2,408                              9,997                            3,706                          47,119                          85,568
Credit and debit card processing, volume, interchange and other                                                   4,817                          3,640                            1,177                              5,822                          (1,005)                          20,796                          22,854
expenses
Other operating expenses
                                   Operational losses                                                             6,579                         19,609                         (13,030)                              5,091                            1,488                          35,995                          20,663
                All other                                                   8,619       6,503         2,116          10,180       (1,561)       33,656       51,558
---------------------------------- ----------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
                                   Total other operating expenses                                                15,198                         26,112                         (10,914)                             15,271                             (73)                          69,651                          72,221
Amortization of intangibles                                                                                       2,836                          3,097                            (261)                              2,522                              314                          12,144                          11,019
Goodwill impairment charge                                                                                            -                          3,801                          (3,801)                                  -                                -                           3,801                               -
Restructuring costs                                                                                -           -             -           1,004       (1,004)            -       18,412
------------------------------------------------------------------------------------------------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
                Total operating expenses                                  320,871     323,672       (2,801)         305,808        15,063    1,255,635    1,288,221
---------------------------------- ----------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
(Loss) income from continuing operations before income tax                                                      (7,006)                         62,649                         (69,655)                            120,599                        (127,605)                         294,340                         398,825
Income tax (benefit) expense                                                                 (1,766)      15,839      (17,605)        (16,827)        15,061       78,784    (495,172)
------------------------------------------------------------------------------------------------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
(Loss) income from continuing operations                                                                        (5,240)                         46,810                         (52,050)                            137,426                        (142,666)                         215,556                         893,997
Income from discontinued operations, net of tax                                                1,135           -         1,135               -         1,135        1,135        1,347
------------------------------------------------------------------------------------------------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
Net (loss) income                                                                           $(4,105)     $46,810     $(50,915)        $137,426    $(141,531)     $216,691     $895,344
------------------------------------------------------------------------------------------------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
Net (loss) income applicable to common stock                                                $(5,036)     $45,880     $(50,916)        $136,495    $(141,531)     $212,968     $891,621
------------------------------------------------------------------------------------------------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
Net (loss) income per common share - basic:
                                   Net (loss) income from continuing operations                                 $(0.06)                          $0.44                          $(0.50)                              $1.32                          $(1.38)                           $2.05                           $8.65
                Net income from discontinued operations                      0.01           -          0.01               -          0.01         0.01         0.01
---------------------------------- ----------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
                Net (loss) income per common share - basic                $(0.05)       $0.44       $(0.49)           $1.32       $(1.37)        $2.06        $8.66
---------------------------------- ----------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
Net (loss) income per common share - diluted:
                                   Net (loss) income from continuing operations                                 $(0.06)                          $0.44                          $(0.50)                              $1.32                          $(1.38)                           $2.05                           $8.64
                Net income from discontinued operations                      0.01           -          0.01               -          0.01         0.01         0.01
---------------------------------- ----------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
                Net (loss) income per common share - diluted              $(0.05)       $0.44       $(0.49)           $1.32       $(1.37)        $2.06        $8.65
---------------------------------- ----------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
Dividends Declared per Common Share                                                            $0.15       $0.15            $-           $0.15            $-        $0.60        $0.30
------------------------------------------------------------------------------------------------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ------------- -------------------- ----------- -------------------- ---------- -------------------- ----------
                                                                                                                                                                                                                                                                                                                             
Popular, Inc.
Financial Supplement to Fourth Quarter 2016 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
                                                                                                                      Variance
                                                                                                                                                                                                                                       Q4 2016 vs.
(In thousands)                                                                                                    31-Dec-16     30-Sep-16     31-Dec-15      Q3 2016
---------------------------------------------------------------------------------------------------------------------------------- ----------- -------------------- ----------- -------------------- ----------- -------------------- -----------
Assets:
Cash and due from banks                                                                                                               $362,394                         $350,545                         $363,674                          $11,849
Money market investments                                                                                                             2,890,217                        3,963,495                        2,180,092                      (1,073,278)
Trading account securities, at fair value                                                                                               59,805                           72,584                           71,659                         (12,779)
Investment securities available-for-sale, at fair value                                                                              8,209,806                        7,628,656                        6,062,992                          581,150
Investment securities held-to-maturity, at amortized cost                                                                               98,101                           97,973                          100,903                              128
Other investment securities, at lower of cost or realizable value                                                                      167,818                          168,791                          172,248                            (973)
Loans held-for-sale, at lower of cost or fair value                                                                                     88,821                           72,076                          137,000                           16,745
Loans held-in-portfolio:
                                                Loans not covered under loss-sharing agreements with the FDIC                       22,895,172                       22,714,358                       22,453,813                          180,814
                                                Loans covered under loss-sharing agreements with the FDIC                              572,878                          588,211                          646,115                         (15,333)
                                                Less: Unearned income                                                                  121,425                          118,386                          107,698                            3,039
                      Allowance for loan losses                               540,651       555,855       537,111      (15,204)
----------------------- ----------------------- ------------------------------------------------------------- -------------------- ----------- -------------------- ----------- -------------------- ----------- -------------------- -----------
          Total loans held-in-portfolio, net                               22,805,974    22,628,328    22,455,119       177,646
----------------------- ----------------------- ------------------------------------------------------------- -------------------- ----------- -------------------- ----------- -------------------- ----------- -------------------- -----------
FDIC loss-share asset                                                                                                                   69,334                          152,467                          310,221                         (83,133)
Premises and equipment, net                                                                                                            543,981                          537,975                          502,611                            6,006
Other real estate not covered under loss-sharing agreements with the                                                                   180,445                          184,828                          155,231                          (4,383)
FDIC
Other real estate covered under loss-sharing agreements with the FDIC                                                                   32,128                           37,414                           36,685                          (5,286)
Accrued income receivable                                                                                                              138,042                          119,691                          124,234                           18,351
Mortgage servicing assets, at fair value                                                                                               196,889                          200,354                          211,405                          (3,465)
Other assets                                                                                                                         2,145,510                        2,163,939                        2,193,162                         (18,429)
Goodwill                                                                                                                               627,294                          627,294                          626,388                                -
Other intangible assets                                                                                              45,050        47,886        58,109       (2,836)
---------------------------------------------------------------------------------------------------------------------------------- ----------- -------------------- ----------- -------------------- ----------- -------------------- -----------
Total assets                                                                                                    $38,661,609   $39,054,296   $35,761,733    $(392,687)
---------------------------------------------------------------------------------------------------------------------------------- ----------- -------------------- ----------- -------------------- ----------- -------------------- -----------
Liabilities and Stockholders’ Equity:
Liabilities:
                        Deposits:
                                                Non-interest bearing                                                                $6,980,443                       $6,950,287                       $6,401,515                          $30,156
          Interest bearing                                                 23,515,781    23,376,758    20,808,208       139,023
----------------------- ----------------------- ------------------------------------------------------------- -------------------- ----------- -------------------- ----------- -------------------- ----------- -------------------- -----------
          Total deposits                                                   30,496,224    30,327,045    27,209,723       169,179
----------------------- ----------------------- ------------------------------------------------------------- -------------------- ----------- -------------------- ----------- -------------------- ----------- -------------------- -----------
Federal funds purchased and assets sold under agreements to                                                                            479,425                          765,251                          762,145                        (285,826)
repurchase
Other short-term borrowings                                                                                                              1,200                            1,200                            1,200                                -
Notes payable                                                                                                                        1,574,852                        1,598,533                        1,662,508                         (23,681)
Other liabilities                                                                                                                      911,951                          980,057                        1,019,018                         (68,106)
Liabilities from discontinued operations                                                                                  -         1,815         1,815       (1,815)
---------------------------------------------------------------------------------------------------------------------------------- ----------- -------------------- ----------- -------------------- ----------- -------------------- -----------
Total liabilities                                                                                                33,463,652    33,673,901    30,656,409     (210,249)
---------------------------------------------------------------------------------------------------------------------------------- ----------- -------------------- ----------- -------------------- ----------- -------------------- -----------
Stockholders’ equity:
Preferred stock                                                                                                                         50,160                           50,160                           50,160                                -
Common stock                                                                                                                             1,040                            1,040                            1,038                                -
Surplus                                                                                                                              4,255,022                        4,234,842                        4,229,156                           20,180
Retained earnings                                                                                                                    1,220,307                        1,259,295                        1,087,957                         (38,988)
Treasury stock                                                                                                                         (8,286)                          (7,647)                          (6,101)                            (639)
Accumulated other comprehensive loss                                                                              (320,286)     (157,295)     (256,886)     (162,991)
---------------------------------------------------------------------------------------------------------------------------------- ----------- -------------------- ----------- -------------------- ----------- -------------------- -----------
          Total stockholders’ equity             5,197,957     5,380,395     5,105,324     (182,438)
----------------------- ----------------------- ------------------------------------------------------------- -------------------- ----------- -------------------- ----------- -------------------- ----------- -------------------- -----------
Total liabilities and stockholders’ equity                                           $38,661,609   $39,054,296   $35,761,733    $(392,687)
---------------------------------------------------------------------------------------------------------------------------------- ----------- -------------------- ----------- -------------------- ----------- -------------------- -----------
                                                                                                                                                                                                                                                   
Popular, Inc.
Financial Supplement to Fourth Quarter 2016 Earnings Release
Table D - Consolidated Average Balances and Yield / Rate Analysis
- QUARTER
(Unaudited)
                                                                                                                                                                                                                                                                        
                                                                                                                                                     Quarter ended                                                                                                         Quarter ended                                                                                     Quarter ended                                                                                       Variance                                                                                          Variance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                       31-Dec-16                                                                                                             30-Sep-16                                                                                         31-Dec-15                                                                                    Q4 2016 vs. Q3 2016                                                                               Q4 2016 vs. Q4 2015
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
($ amounts in millions; yields not on a taxable equivalent basis)                                   Average balance  Income /    Yield /                                            Average balance  Income /    Yield /                        Average balance  Income /    Yield /     Average balance  Income /    Yield /                        Average balance  Income /    Yield /
                                                                                                                                                            Expense                        Rate                                                                                   Expense                        Rate                                                               Expense                        Rate                                                               Expense                        Rate                                                               Expense                        Rate
----------------------------------------------------------------------------------------------   -------------------- --------------- -------------------- -------- -------------------- -------                                            --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------   -------------------- --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------
Assets:
Interest earning assets:
                      Money market, trading and investment securities                                                         $12,185      $47.8      1.57 %                                                  $11,159      $43.7      1.57 %                               $8,602      $36.9      1.71 %                               $1,026       $4.1         - %                               $3,583      $10.9    (0.14) %
                                                                                                                      --------------- -------------------- -------- -------------------- -------                                            --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------
                      Loans not covered under loss-sharing agreements with the FDIC:
                                              Commercial                                                                        9,435                         116.5                         4.91                                                      9,269                         113.8                         4.88                                  8,936                         106.1                         4.71                                    166                           2.7                         0.03                                    499                          10.4                         0.20
                                              Construction                                                                        737                           9.9                         5.36                                                        739                          10.1                         5.44                                    662                           9.8                         5.88                                    (2)                         (0.2)                       (0.08)                                     75                           0.1                       (0.52)
                                              Mortgage                                                                          6,598                          88.5                         5.37                                                      6,637                          88.3                         5.32                                  6,947                          92.5                         5.33                                   (39)                           0.2                         0.05                                  (349)                         (4.0)                         0.04
                                              Consumer                                                                          3,774                          97.3                        10.26                                                      3,847                          99.3                        10.27                                  3,819                          97.6                        10.13                                   (73)                         (2.0)                       (0.01)                                   (45)                         (0.3)                         0.13
                                              Lease financing                                                                     688       11.4      6.64                                                        669       11.2      6.72                                    611       10.6      6.97                                     19        0.2    (0.08)                                     77        0.8    (0.33)
                                                                                                                      --------------- -------------------- -------- -------------------- -------                                            --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------
                                              Total loans (excluding WB loans)                                                 21,232                         323.6                         6.07                                                     21,161                         322.7                         6.08                                 20,975                         316.6                         6.00                                     71                           0.9                       (0.01)                                    257                           7.0                         0.07
                      WB loans                                                                                                  1,845       39.6      8.56                                                      1,881       40.9      8.65                                  2,156       47.9      8.82                                   (36)      (1.3)    (0.09)                                  (311)      (8.3)    (0.26)
                                                                                                                      --------------- -------------------- -------- -------------------- -------                                            --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------
                      Total loans                                                                                              23,077      363.2      6.27                                                     23,042      363.6      6.29                                 23,131      364.5      6.27                                     35      (0.4)    (0.02)                                   (54)      (1.3)         -
                                                                                                                      --------------- -------------------- -------- -------------------- -------                                            --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------
                      Total interest earning assets                                                                            35,262     $411.0      4.65 %                                                   34,201     $407.3      4.75 %                               31,733     $401.4      5.03 %                                1,061       $3.7    (0.10) %                                3,529       $9.6    (0.38)                      %
                                                                                                                      --------------- -------------------- -------- -------------------- -------                                            --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------
                                              Allowance for loan losses                                                         (562)                                                                                                                 (553)                                                                                             (573)                                                                                               (9)                                                                                                11
                                              Other non-interest earning assets                                                 4,386                                                                                                                 4,443                                                                                             4,416                                                                                              (57)                                                                                              (30)
                                                                                                                      ---------------                                                                                                       ---------------                                                                                   ---------------                                                                                   ---------------                                                                                   ---------------
                      Total average assets                                                                                    $39,086                                                                                                               $38,091                                                                                           $35,576                                                                                              $995                                                                                            $3,510
                                                                                                                      ---------------                                                                                                       ---------------                                                                                   ---------------                                                                                   ---------------                                                                                   ---------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Liabilities and Stockholders’ Equity:
                      Interest bearing deposits:
                                              NOW and money market                                                             $8,007                          $8.3                         0.41 %                                                   $7,326                          $7.0                         0.38 %                               $5,547                          $5.1                         0.36 %                                 $681                          $1.3                         0.03 %                               $2,460                          $3.2                         0.05 %
                                              Savings                                                                           7,796                           4.7                         0.24                                                      7,550                           4.6                         0.24                                  7,119                           4.1                         0.23                                    246                           0.1                            -                                    677                           0.6                         0.01
                                              Time deposits                                                                     7,858       21.7      1.10                                                      7,859       20.7      1.05                                  8,192       17.9      0.87                                    (1)        1.0      0.05                                  (334)        3.8      0.23
                                                                                                                      --------------- -------------------- -------- -------------------- -------                                            --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------
                                              Total interest bearing deposits                                                  23,661                          34.7                         0.58                                                     22,735                          32.3                         0.57                                 20,858                          27.1                         0.51                                    926                           2.4                         0.01                                  2,803                           7.6                         0.07
                      Borrowings                                                                                                2,212       20.9      3.78                                                      2,398       21.3      3.55                                  2,439       21.8      3.57                                  (186)      (0.4)      0.23                                  (227)      (0.9)      0.21
                                                                                                                      --------------- -------------------- -------- -------------------- -------                                            --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------
                                              Total interest bearing liabilities                                               25,873       55.6      0.86                                                     25,133       53.6      0.85                                 23,297       48.9      0.83                                    740        2.0      0.01                                  2,576        6.7      0.03
                                                                                                                      --------------- -------------------- -------- -------------------- -------                                            --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------                        --------------- -------------------- -------- -------------------- -------
                                              Net interest spread                                                                                                                           3.79 %                                                                                                                3.90 %                                                                                            4.20 %                                                                                          (0.11) %                                                                                          (0.41) %
                                                                                                                                                                                         -------                                                                                                               -------                                                                                           -------                                                                                           -------                                                                                           -------
                      Non-interest bearing deposits                                                                             6,976                                                                                                                 6,676                                                                                             6,246                                                                                               300                                                                                               730
                      Other liabilities                                                                                           901                                                                                                                   955                                                                                               953                                                                                              (54)                                                                                              (52)
                      Liabilities from discontinued operations                                                                      2                                                                                                                     2                                                                                                 2                                                                                                 -                                                                                                 -
                      Stockholders’ equity                                                                                      5,334                                                                                                                 5,325                                                                                             5,078                                                                                                 9                                                                                               256
                                                                                                                      ---------------                                                                                                       ---------------                                                                                   ---------------                                                                                   ---------------                                                                                   ---------------
                                              Total average liabilities and stockholders’ equity                              $39,086                                                                                                               $38,091                                                                                           $35,576                                                                                              $995                                                                                            $3,510
                                                                                                                      ---------------                                                                                                       ---------------                                                                                   ---------------                                                                                   ---------------                                                                                   ---------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Net interest income / margin non-taxable equivalent basis                                                                                                    $355.4      4.02 %                                                                                 $353.7      4.12 %                                                             $352.5      4.42 %                                                               $1.7    (0.10) %                                                               $2.9    (0.40) %
                                                                                                                                                           -------- -------------------- -------                                                                                 -------- -------------------- -------                                                             -------- -------------------- -------                                                             -------- -------------------- -------                                                             -------- -------------------- -------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Popular, Inc.
Financial Supplement to Fourth Quarter 2016 Earnings Release
Table E - Consolidated Average Balances and Yield / Rate Analysis
- YEAR-TO-DATE
(Unaudited)
    
                                                                                                                                       Year ended                                                                Year ended                                                        
                                                                                                                                                           31-Dec-16                                                                                                       31-Dec-15                                                                                                       Variance
                                                                                                                               Average  Income /    Yield /                                              Average  Income /    Yield /                                              Average                     Income /                       Yield /
($ amounts in millions; yields not on a taxable equivalent basis)                                           balance   Expense     Rate                                                balance   Expense     Rate                                                balance   Expense     Rate
----------------------------------------------------------------------------------------------------------------------------- ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------
Assets:
Interest earning assets:
                      Money market, trading and investment securities                                                         $10,651     $174.9      1.64                      %                        $8,406     $144.3      1.72                      %                        $2,245      $30.6    (0.08) %
                                                                                                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------
                      Loans not covered under loss-sharing agreements with the FDIC:
                                                      Commercial                                                                9,203                         451.8                         4.91                                                8,705                         424.6                         4.88                                                  498                          27.2                         0.03
                                                      Construction                                                                726                          39.0                         5.38                                                  616                          36.9                         6.00                                                  110                           2.1                       (0.62)
                                                      Mortgage                                                                  6,702                         355.4                         5.30                                                6,978                         360.4                         5.16                                                (276)                         (5.0)                         0.14
                                                      Consumer                                                                  3,823                         394.0                        10.31                                                3,824                         387.2                        10.13                                                  (1)                           6.8                         0.18
                                                      Lease financing                                                             660       44.3      6.71                                                  589       40.8      6.91                                                   71        3.5    (0.20)
                                                                                                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------
                                                      Total loans (excluding WB loans)                                         21,114                       1,284.5                         6.08                                               20,712                       1,249.9                         6.03                                                  402                          34.6                         0.05
                      WB loans                                                                                                  1,949      175.2      8.99                                                2,333      208.8      8.95                                                (384)     (33.6)      0.04
                                                                                                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------
                      Total loans                                                                                              23,063    1,459.7      6.33                                               23,045    1,458.7      6.33                                                   18        1.0         -
                                                                                                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------
                      Total interest earning assets                                                                            33,714   $1,634.6      4.85                      %                        31,451   $1,603.0      5.10                      %                         2,263      $31.6    (0.25) %
                                                                                                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------
                                                      Allowance for loan losses                                                 (548)                                                                                                           (585)                                                                                                              37
                                                      Other non-interest earning assets                                         4,448                                                                                                           4,320                                                                                                             128
                                                                                                                              -------                                                                                                         -------                                                                                                         -------
                      Total average assets                                                                                    $37,614                                                                                                         $35,186                                                                                                          $2,428
                                                                                                                              -------                                                                                                         -------                                                                                                         -------
                                                                                                                                                                                                                                                                                                                                                                                                                                  
Liabilities and Stockholders’ Equity:
                      Interest bearing deposits:
                                                      NOW and money market                                                     $7,020                         $27.6                         0.39                      %                        $5,447                         $19.0                         0.35                      %                        $1,573                          $8.6                         0.04 %
                                                      Savings                                                                   7,528                          18.0                         0.24                                                7,027                          16.2                         0.23                                                  501                           1.8                         0.01
                                                      Time deposits                                                             7,910       82.0      1.04                                                8,158       72.3      0.89                                                (248)        9.7      0.15
                                                                                                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------
                                                      Total interest bearing deposits                                          22,458                         127.6                         0.57                                               20,632                         107.5                         0.52                                                1,826                          20.1                         0.05
                      Borrowings                                                                                                2,339       84.9      3.63                                                2,757       86.5      3.14                                                (418)      (1.6)      0.49
                                                                                                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------
                                                      Total interest bearing liabilities                                       24,797      212.5      0.86                                               23,389      194.0      0.83                                                1,408       18.5      0.03
                                                                                                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------                                              ------- -------------------- -------- -------------------- -------
                                                      Net interest spread                                                                                                                   3.99                      %                                                                                     4.27                      %                                                                                   (0.28) %
                                                                                                                                                                                         -------                                                                                                         -------                                                                                                         -------
                      Non-interest bearing deposits                                                                             6,608                                                                                                           6,147                                                                                                             461
                      Other liabilities                                                                                           928                                                                                                             944                                                                                                            (16)
                      Liabilities from discontinued operations                                                                      2                                                                                                               2                                                                                                               -
                      Stockholders’ equity                                                                                      5,279                                                                                                           4,704                                                                                                             575
                                                                                                                              -------                                                                                                         -------                                                                                                         -------
                                                      Total average liabilities and stockholders’ equity                      $37,614                                                                                                         $35,186                                                                                                          $2,428
                                                                                                                              -------                                                                                                         -------                                                                                                         -------
                                                                                                                                                                                                                                                                                                                                                                                                                                  
Net interest income / margin non-taxable equivalent basis                                                                                                  $1,422.1      4.22                      %                                                    $1,409.0      4.48                      %                                                       $13.1    (0.26) %
                                                                                                                                                           -------- -------------------- -------                                                                           -------- -------------------- -------                                                                           -------- -------------------- -------
 
Popular, Inc.                                                                                                                                                                             
Financial Supplement to Fourth Quarter 2016 Earnings Release
Table F - Mortgage Banking Activities and Other Service Fees
(Unaudited)
 
Mortgage Banking Activities                                                                                                                                                                                                          Variance
                                                                                                                                                   Quarters ended                                                  Q4 2016 vs.                      Q4 2016 vs.                                     Year ended                                        Variance
                                                                                                                                                                                                                                                                                                                                                                  
(In thousands)                                                                                      31-Dec-16   30-Sep-16   31-Dec-15      Q3 2016       Q4 2015    31-Dec-16   31-Dec-15   2016 vs. 2015
--------------------------------------------------------------------------------------------------------------------- --------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ----------- -------------------- --------- -------------------- --------- -------------------- -------------
Mortgage servicing fees, net of fair value adjustments:
                                   Mortgage servicing fees                                                              $14,211                        $14,520                        $15,504                           $(309)                         $(1,293)                        $58,208                        $59,461                           $(1,253)
                Mortgage servicing rights fair value adjustments                  (6,457)     (6,062)     (2,096)         (395)       (4,361)    (25,336)     (7,904)        (17,432)
---------------------------------- ------------------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ----------- -------------------- --------- -------------------- --------- -------------------- -------------
Total mortgage servicing fees, net of fair value adjustments                                           7,754       8,458      13,408         (704)       (5,654)      32,872      51,557        (18,685)
--------------------------------------------------------------------------------------------------------------------- --------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ----------- -------------------- --------- -------------------- --------- -------------------- -------------
Net gain on sale of loans, including valuation on loans held-for-sale                                  2,535       8,857      10,337       (6,322)       (7,802)      26,976      35,336         (8,360)
--------------------------------------------------------------------------------------------------------------------- --------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ----------- -------------------- --------- -------------------- --------- -------------------- -------------
Trading account profit (loss):
                                   Unrealized gains (losses) on outstanding derivative positions                             43                             95                             27                             (52)                               16                            (1)                             17                               (18)
                Realized gains (losses) on closed derivative positions              4,156     (2,138)       (342)         6,294         4,498     (3,309)     (5,108)           1,799
---------------------------------- ------------------------------------------------------------- -------------------- --------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ----------- -------------------- --------- -------------------- --------- -------------------- -------------
Total trading account profit (loss)                                                                    4,199     (2,043)       (315)         6,242         4,514     (3,310)     (5,091)           1,781
--------------------------------------------------------------------------------------------------------------------- --------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ----------- -------------------- --------- -------------------- --------- -------------------- -------------
Total mortgage banking activities                                                                    $14,488     $15,272     $23,430        $(784)      $(8,942)     $56,538     $81,802       $(25,264)
--------------------------------------------------------------------------------------------------------------------- --------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ----------- -------------------- --------- -------------------- --------- -------------------- -------------
                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                          
Other Service Fees                                                                                                                                                                                      Variance
                                                                                                                      Quarters ended                                                  Q4 2016 vs.                      Q4 2016 vs.                                     Years ended                                       Variance
                                                                                                                                                                                                                                                                                                                                     
(In thousands)                                                         31-Dec-16   30-Sep-16   31-Dec-15      Q3 2016       Q4 2015    31-Dec-16   31-Dec-15   2016 vs. 2015
---------------------------------------------------------------------------------------- --------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ----------- -------------------- --------- -------------------- --------- -------------------- -------------
Other service fees:
                     Debit card fees                                                       $12,088                        $11,483                        $11,768                             $605                             $320                        $46,241                        $46,176                                $65
                     Insurance fees                                                         20,804                         15,943                         23,813                            4,861                          (3,009)                         63,482                         63,976                              (494)
                     Credit card fees                                                       18,324                         17,644                         17,528                              680                              796                         70,526                         68,166                              2,360
                     Sale and administration of investment products                          5,652                          5,542                          5,578                              110                               74                         21,450                         23,846                            (2,396)
                     Trust fees                                                              4,782                          4,968                          4,947                            (186)                            (165)                         18,811                         18,866                               (55)
  Other fees                                           3,624       3,589       3,294            35           330      14,260      15,060           (800)
-------------------- ---------------------------------------------- -------------------- --------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ----------- -------------------- --------- -------------------- --------- -------------------- -------------
Total other service fees                                                $65,274     $59,169     $66,928        $6,105      $(1,654)    $234,770    $236,090        $(1,320)
---------------------------------------------------------------------------------------- --------- -------------------- --------- -------------------- --------- -------------------- ----------- -------------------- ----------- -------------------- --------- -------------------- --------- -------------------- -------------
 
Popular, Inc.                                                                                                                                        
Financial Supplement to Fourth Quarter 2016 Earnings Release
Table G - Loans and Deposits
(Unaudited)
                                                                                                                                                                                                                                                                           
Loans - Ending Balances
                                                                                                                                                                                                                                      Variance
                                                                                                                                                                                                           ---------------------------------------------------------------
(In thousands)                                                       31-Dec-16              30-Sep-16              31-Dec-15            Q4 2016 vs.            Q4 2016 vs.
                                                                                                                                                                                                                        Q3 2016                                   Q4 2015
----------------------------------------------------- --------------------- --------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Loans not covered under FDIC loss-sharing agreements:
   Commercial                                                                         $10,798,507                               $10,537,191                               $10,099,163                                  $261,316                                  $699,344
   Construction                                                                           776,300                                   731,352                                   681,106                                    44,948                                    95,194
   Legacy [1]                                                                              45,293                                    47,914                                    64,436                                   (2,621)                                  (19,143)
   Lease financing                                                                        702,893                                   682,810                                   627,650                                    20,083                                    75,243
   Mortgage                                                                             6,696,361                                 6,774,497                                 7,036,081                                  (78,136)                                 (339,720)
   Consumer                                                          3,754,393              3,822,208              3,837,679               (67,815)               (83,286)
----------------------------------------------------- --------------------- --------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total non-covered loans held-in-portfolio                                             $22,773,747                               $22,595,972                               $22,346,115                                  $177,775                                  $427,632
Loans covered under FDIC loss-sharing agreements                       572,878                588,211                646,115               (15,333)               (73,237)
----------------------------------------------------- --------------------- --------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total loans held-in-portfolio                                      $23,346,625            $23,184,183            $22,992,230               $162,442               $354,395
----------------------------------------------------- --------------------- --------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Loans held-for-sale:
   Commercial                                                                                  $-                                        $-                                   $45,074                                        $-                                 $(45,074)
   Construction                                                                                 -                                         -                                        95                                         -                                      (95)
   Mortgage                                                             88,821                 72,076                 91,831                 16,745                (3,010)
----------------------------------------------------- --------------------- --------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total loans held-for-sale                                              $88,821                $72,076               $137,000                $16,745              $(48,179)
----------------------------------------------------- --------------------- --------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total loans                                                        $23,435,446            $23,256,259            $23,129,230               $179,187               $306,216
----------------------------------------------------- --------------------- --------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
[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 BPNA segment.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Deposits - Ending Balances
                                                                                                                                                                                                                                      Variance
                                                                                                                                                                                                           ---------------------------------------------------------------
(In thousands)                                                       31-Dec-16              30-Sep-16              31-Dec-15    Q4 2016 vs. Q3 2016     Q4 2016 vs.Q4 2015
----------------------------------------------------- --------------------- --------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Demand deposits [1]                                                                    $9,053,897                                $9,161,839                                $7,221,238                                $(107,942)                                $1,832,659
Savings, NOW and money market deposits (non-brokered)                                  13,327,298                                12,872,072                                11,440,693                                   455,226                                 1,886,605
Savings, NOW and money market deposits (brokered)                                         405,487                                   391,128                                   382,424                                    14,359                                    23,063
Time deposits (non-brokered)                                                            7,486,717                                 7,619,232                                 7,274,157                                 (132,515)                                   212,560
Time deposits (brokered CDs)                                           222,825                282,774                891,211               (59,949)              (668,386)
----------------------------------------------------- --------------------- --------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total deposits                                                     $30,496,224            $30,327,045            $27,209,723               $169,179             $3,286,501
----------------------------------------------------- --------------------- --------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
[1] Includes interest and non-interest bearing demand deposits.                                                  
---------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
 
Popular, Inc.
Financial Supplement to Fourth Quarter 2016 Earnings Release
Table H - Non-Performing Assets
(Unaudited)
                                                                                                                                                                                                                                                                                              Variance
                                                                                                                                                                                                                                                                                                                                                                                                                           ---------------------------------------------------------------
(Dollars in thousands)                                                                   31-Dec-16              As a % of       30-Sep-16            As a % of     31-Dec-15              As a % of                Q4 2016 vs.            Q4 2016 vs.
                                                                                                                                                   loans HIP by                                                                                  loans HIP by                                                                                  loans HIP by                                                                             Q3 2016                                   Q4 2015
                                                                                                                                                       category                                                                                      category                                                                                      category
-------------------------------------------------------------------------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Non-accrual loans:                                                                                                                                                                                                                                                                                                                                                                                                                               
Commercial                                                                                                   $163,348                                       1.5 %                                                               $170,571                  1.6 %                                          $181,816                                       1.8 %                                                                          $(7,223)                                 $(18,468)
Construction                                                                                                        -                                         -                                                                        -                    -                                               3,550                                       0.5                                                                                   -                                   (3,550)
Legacy [1]                                                                                                      3,337                                       7.4                                                                    3,450                  7.2                                               3,649                                       5.7                                                                               (113)                                     (312)
Lease financing                                                                                                 3,062                                       0.4                                                                    2,878                  0.4                                               3,009                                       0.5                                                                                 184                                        53
Mortgage                                                                                                      329,907                                       4.9                                                                  345,776                  5.1                                             351,471                                       5.0                                                                            (15,869)                                  (21,564)
Consumer                                                                                    58,261                    1.6          56,650                  1.5        58,304                    1.5                      1,611                   (43)
-------------------------------------------------------------------------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total non-performing loans held-in-
    portfolio, excluding covered loans                                                                        557,915                                       2.5 %                                                                579,325                  2.6 %                                           601,799                                       2.7 %                                                                          (21,410)                                  (43,884)
Non-performing loans held-for-sale [2]                                                                              -                                                                                                                  -                                                                   45,169                                                                                                                             -                                  (45,169)
Other real estate owned ("OREO"),
excluding covered OREO                                                                     180,445             184,828         155,231                        (4,383)                 25,214
-------------------------------------------------------------------------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total non-performing assets,
excluding covered assets                                                                                      738,360                                                                                                            764,153                                                                  802,199                                                                                                                      (25,793)                                  (63,839)
Covered loans and OREO                                                                      36,044              41,211          40,571                        (5,167)                (4,527)
-------------------------------------------------------------------------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total non-performing assets                                                               $774,404            $805,364        $842,770                      $(30,960)              $(68,366)
-------------------------------------------------------------------------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Accruing loans past due 90 days or more [3]                                               $426,652            $418,652        $446,725                         $8,000              $(20,073)
-------------------------------------------------------------------------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Ratios excluding covered loans:
Non-performing loans held-in-portfolio
   to loans held-in-portfolio                                                                                    2.45 %                                                                                                             2.56 %                                                                   2.69 %
Allowance for loan losses to loans
    held-in-portfolio                                                                                            2.24                                                                                                               2.33                                                                     2.25
Allowance for loan losses to
    non-performing loans, excluding loans
    held-for-sale                                                                            91.47               90.73           83.57                
-------------------------------------------------------------------------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Ratios including covered loans:
Non-performing assets to total assets                                                                            2.00 %                                                                                                             2.06 %                                                                   2.36 %
Non-performing loans held-in-portfolio
   to loans held-in-portfolio                                                                                    2.41                                                                                                               2.52                                                                     2.63
Allowance for loan losses to loans
    held-in-portfolio                                                                                            2.32                                                                                                               2.40                                                                     2.34
Allowance for loan losses to non-performing
 loans, excluding loans held-for-sale                                                        96.23               95.32           88.68                
-------------------------------------------------------------------------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
[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 BPNA segment.
[2] There were no non-performing loans held-for-sale as of December
31, 2016 (September 30, 2016 - there were no non-performing loans
held-for-sale; December 31, 2015 - $45 million in commercial loans
and $95 thousand in construction loans.)
[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 balances include $181
million of residential mortgage loans insured by FHA or guaranteed
by the VA that are no longer accruing interest as of December 31,
2016 (September 30, 2016 - $174 million; December 31, 2015 - $164
million). Furthermore, the Corporation has approximately $68 million
in reverse mortgage loans which are guaranteed by FHA, but which are
currently not accruing interest. Due to the guaranteed nature of the
loans, it is the Corporation’s policy to exclude these balances from
non-performing assets (September 30, 2016 - $72 million; December
31, 2015 - $70 million).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                      
Popular, Inc.
Financial Supplement to Fourth Quarter 2016 Earnings Release
Table I - Activity in Non-Performing Loans
(Unaudited)
                                                                                                                          
Commercial loans held-in-portfolio:
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                     Quarter ended                                                                                 Quarter ended
                                                                                                                                       31-Dec-16                                                                                     30-Sep-16
                                                                                                       -------------------------------------------------------------------------                     -------------------------------------------------------------------------
(In thousands)                                                                        BPPR       BPNA     Popular, Inc.    BPPR       BPNA     Popular, Inc.
------------------------------------------------------------------------------------------------------ -------- -------------------- ------- -------------------- ------------- -------------------- -------- -------------------- ------- -------------------- -------------
Beginning balance NPLs                                                                                 $167,047                       $3,524                           $170,571                      $172,584                       $3,031                           $175,615
Plus:
                     New non-performing loans                                                            17,409                        1,615                             19,024                        12,520                        1,609                             14,129
                     Advances on existing non-performing loans                                                -                            5                                  5                             -                          164                                164
                     Reclassification from construction loans to commercial loans                             -                            -                                  -                         2,436                            -                              2,436
Less:
                     Non-performing loans transferred to OREO                                           (1,559)                            -                            (1,559)                       (2,223)                            -                            (2,223)
                     Non-performing loans charged-off                                                  (12,925)                         (35)                           (12,960)                       (7,918)                        (141)                            (8,059)
                     Loans returned to accrual status / loan collections            (10,317)   (1,416)        (11,733)   (10,352)   (1,139)        (11,491)
                     ------------------------------------------------------------ -------------------- -------- -------------------- ------- -------------------- ------------- -------------------- -------- -------------------- ------- -------------------- -------------
Ending balance NPLs                                                                 $159,655    $3,693        $163,348   $167,047    $3,524        $170,571
------------------------------------------------------------------------------------------------------ -------- -------------------- ------- -------------------- ------------- -------------------- -------- -------------------- ------- -------------------- -------------
                                                                                                                                                                                                                                                                               
Construction loans held-in-portfolio:
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                     Quarter ended                                                                                 Quarter ended
                                                                                                                                       31-Dec-16                                                                                     30-Sep-16
                                                                                                       -------------------------------------------------------------------------                     -------------------------------------------------------------------------
(In thousands)                                                                        BPPR       BPNA     Popular, Inc.    BPPR       BPNA     Popular, Inc.
------------------------------------------------------------------------------------------------------ -------- -------------------- ------- -------------------- ------------- -------------------- -------- -------------------- ------- -------------------- -------------
Beginning balance NPLs                                                                                       $-                           $-                                 $-                        $2,423                         $100                             $2,523
Plus:
                     New non-performing loans                                                                 -                            -                                  -                         1,150                            -                              1,150
Less:
                     Non-performing loans charged-off                                                         -                            -                                  -                         (985)                            -                              (985)
                     Loans returned to accrual status / loan collections                                      -                            -                                  -                         (152)                        (100)                              (252)
                     Reclassification from construction loans to commercial loans          -         -               -    (2,436)         -         (2,436)
                     ------------------------------------------------------------ -------------------- -------- -------------------- ------- -------------------- ------------- -------------------- -------- -------------------- ------- -------------------- -------------
Ending balance NPLs                                                                       $-        $-              $-         $-        $-              $-
------------------------------------------------------------------------------------------------------ -------- -------------------- ------- -------------------- ------------- -------------------- -------- -------------------- ------- -------------------- -------------
                                                                                                                                                                                                                                                                               
Mortgage loans held-in-portfolio:
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                     Quarter ended                                                                                 Quarter ended
                                                                                                                                       31-Dec-16                                                                                     30-Sep-16
                                                                                                       -------------------------------------------------------------------------                     -------------------------------------------------------------------------
(In thousands)                                                                        BPPR       BPNA     Popular, Inc.    BPPR       BPNA     Popular, Inc.
------------------------------------------------------------------------------------------------------ -------- -------------------- ------- -------------------- ------------- -------------------- -------- -------------------- ------- -------------------- -------------
Beginning balance NPLs                                                                                 $331,346                      $14,430                           $345,776                      $323,658                      $14,390                           $338,048
Plus:
                     New non-performing loans                                                            76,278                        4,835                             81,113                        87,340                        6,715                             94,055
Less:
                     Non-performing loans transferred to OREO                                           (7,791)                        (315)                            (8,106)                      (14,398)                        (384)                           (14,782)
                     Non-performing loans charged-off                                                  (16,404)                          240                           (16,164)                       (9,481)                      (1,994)                           (11,475)
                     Loans returned to accrual status / loan collections            (65,235)   (7,477)        (72,712)   (55,773)   (4,297)        (60,070)
                     ------------------------------------------------------------ -------------------- -------- -------------------- ------- -------------------- ------------- -------------------- -------- -------------------- ------- -------------------- -------------
Ending balance NPLs                                                                 $318,194   $11,713        $329,907   $331,346   $14,430        $345,776
------------------------------------------------------------------------------------------------------ -------- -------------------- ------- -------------------- ------------- -------------------- -------- -------------------- ------- -------------------- -------------
                                                                                                                                                                                                                                                                               
                                                                                                                          
Legacy loans held-in-portfolio:
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                     Quarter ended                                                                                 Quarter ended
                                                                                                                                       31-Dec-16                                                                  30-Sep-16
                                                                                                       --------------------------------------------------------------------------------------------- -------------------------------------------------------------------------
(In thousands)                                                                        BPPR       BPNA     Popular, Inc.    BPPR       BPNA     Popular, Inc.
------------------------------------------------------------------------------------------------------ -------- -------------------- ------- -------------------- ------------- -------------------- -------- -------------------- ------- -------------------- -------------
Beginning balance NPLs                                                                                       $-                       $3,450                             $3,450                            $-                       $3,839                             $3,839
Plus:
                     New non-performing loans                                                                 -                           17                                 17                             -                           45                                 45
                     Advances on existing non-performing loans                                                -                            7                                  7                             -                          135                                135
Less:
                     Non-performing loans transferred to OREO                                                 -                            -                                  -                             -                         (44)                               (44)
                     Non-performing loans charged-off                                                         -                         (89)                               (89)                             -                        (146)                              (146)
                     Loans returned to accrual status / loan collections                   -      (48)            (48)          -     (379)           (379)
                     ------------------------------------------------------------ -------------------- -------- -------------------- ------- -------------------- ------------- -------------------- -------- -------------------- ------- -------------------- -------------
Ending balance NPLs                                                                       $-    $3,337          $3,337         $-    $3,450          $3,450
------------------------------------------------------------------------------------------------------ -------- -------------------- ------- -------------------- ------------- -------------------- -------- -------------------- ------- -------------------- -------------
                                                                                                                                                                                                                                                                               
Total non-performing loans held-in-portfolio (excluding consumer
and covered loans):
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                     Quarter ended                                                                                 Quarter ended
                                                                                                                                       31-Dec-16                                                                  30-Sep-16
                                                                                                       --------------------------------------------------------------------------------------------- -------------------------------------------------------------------------
(In thousands)                                                                        BPPR       BPNA     Popular, Inc.    BPPR       BPNA     Popular, Inc.
------------------------------------------------------------------------------------------------------ -------- -------------------- ------- -------------------- ------------- -------------------- -------- -------------------- ------- -------------------- -------------
Beginning balance NPLs                                                                                 $498,393                      $21,404                           $519,797                      $498,665                      $21,360                           $520,025
Plus:
                     New non-performing loans                                                            93,687                        6,467                            100,154                       101,010                        8,369                            109,379
                     Advances on existing non-performing loans                                                -                           12                                 12                             -                          299                                299
                     Reclassification from construction loans to commercial loans                             -                            -                                  -                         2,436                            -                              2,436
Less:
                     Non-performing loans transferred to OREO                                           (9,350)                        (315)                            (9,665)                      (16,621)                        (428)                           (17,049)
                     Non-performing loans charged-off                                                  (29,329)                          116                           (29,213)                      (18,384)                      (2,281)                           (20,665)
                     Loans returned to accrual status / loan collections                               (75,552)                      (8,941)                           (84,493)                      (66,277)                      (5,915)                           (72,192)
                     Reclassification from construction loans to commercial loans          -         -               -    (2,436)         -         (2,436)
                     ------------------------------------------------------------ -------------------- -------- -------------------- ------- -------------------- ------------- -------------------- -------- -------------------- ------- -------------------- -------------
Ending balance NPLs                                                                 $477,849   $18,743        $496,592   $498,393   $21,404        $519,797
------------------------------------------------------------------------------------------------------ -------- -------------------- ------- -------------------- ------------- -------------------- -------- -------------------- ------- -------------------- -------------
                                                                                                                                                                                                                                                                               
Popular, Inc.
Financial Supplement to Fourth Quarter 2016 Earnings Release
Table J - Allowance for Credit Losses, Net Charge-offs and
Related Ratios
(Unaudited)
                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                     Quarter ended                                                                                                                                                                                                                                   Quarter ended                                                                                                                                                                                                                                   Quarter ended
                                                                                                                                 31-Dec-16                                                                                                                                                                              30-Sep-16                                                                                                                                                                              31-Dec-15                                                                                                          
------------------------------------------------------------- -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     --------------------
(Dollars in thousands)                                                   Non-covered                    Covered          Total                Non-covered                    Covered          Total                Non-covered                    Covered          Total    
                                                                                                  loans                                                                               loans                                                                                                                                                       loans                                                                               loans                                                                                                                                                       loans                                                                               loans
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
Balance at beginning of period                                                                 $525,593                                                                             $30,262                                                                $555,855                                                                            $518,139                                                                             $30,581                                                                $548,720                                                                            $536,005                                                                             $34,509                                                                $570,514
Provision for loan losses                                                     40,924                        441         41,365                     42,594                        750         43,344                     57,711                        820         58,531    
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
                                                          566,517                     30,703        597,220                    560,733                     31,331        592,064                    593,716                     35,329        629,045    
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
Net loans charged-off (recovered):
BPPR
     Commercial                                                                                   9,205                                                                                   -                                                                   9,205                                                                               3,199                                                                                   -                                                                   3,199                                                                              42,857                                                                                   -                                                                  42,857
     Construction                                                                                     8                                                                                   -                                                                       8                                                                                 886                                                                                   -                                                                     886                                                                               2,966                                                                                   -                                                                   2,966
     Lease financing                                                                              1,000                                                                                   -                                                                   1,000                                                                                 816                                                                                   -                                                                     816                                                                                 667                                                                                   -                                                                     667
     Mortgage                                                                                    20,919                                                                                 360                                                                  21,279                                                                              15,237                                                                                 661                                                                  15,898                                                                              14,255                                                                               1,168                                                                  15,423
     Consumer                                                                 22,284                        (7)         22,277                     12,821                        408         13,229                     21,266                       (15)         21,251
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------
        Total BPPR                                                            53,416                        353         53,769                     32,959                      1,069         34,028                     82,011                      1,153         83,164
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
BPNA
     Commercial                                                                                 (1,080)                                                                                   -                                                                 (1,080)                                                                             (1,173)                                                                                   -                                                                 (1,173)                                                                               (525)                                                                                   -                                                                   (525)
     Legacy [1]                                                                                   (253)                                                                                   -                                                                   (253)                                                                               (520)                                                                                   -                                                                   (520)                                                                               (359)                                                                                   -                                                                   (359)
     Mortgage                                                                                     (255)                                                                                   -                                                                   (255)                                                                               1,942                                                                                   -                                                                   1,942                                                                                 162                                                                                   -                                                                     162
     Consumer                                                                  4,388                          -          4,388                      1,932                          -          1,932                      1,581                          -          1,581    
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
        Total BPNA                                                             2,800                          -          2,800                      2,181                          -          2,181                        859                          -            859                       
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------                      --------------------
Total loans charged-off - Popular, Inc.                                       56,216                        353         56,569                     35,140                      1,069         36,209                     82,870                      1,153         84,023    
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
Net write-downs [2]                                                                -                          -              -                          -                          -              -                    (7,911)                          -        (7,911)    
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
Balance at end of period                                                    $510,301                    $30,350       $540,651                   $525,593                    $30,262       $555,855                   $502,935                    $34,176       $537,111    
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio                                      1.00                      %                                                                                                                                 0.98                      %                                                         0.63                      %                                                                                                                                 0.63                      %                                                         1.48                      %                                                                                                                                 1.46                      %
Provision for loan losses to net charge-offs [3]                                                   0.73                      x                                                                                                                                 0.73                      x                                                         1.21                      x                                                                                                                                 1.20                      x                                                         0.70                      x                                                                                                                                 0.70                      x
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
BPPR
Annualized net charge-offs to average loans held-in-portfolio                                      1.25                      %                                                                                                                                 1.22                      %                                                         0.77                      %                                                                                                                                 0.77                      %                                                         1.86                      %                                                                                                                                 1.82                      %
Provision for loan losses to net charge-offs [3]                                                   0.70                      x                                                                                                                                 0.70                      x                                                         1.10                      x                                                                                                                                 1.09                      x                                                         0.68                      x                                                                                                                                 0.68                      x
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
BPNA
Annualized net charge-offs to average loans held-in-portfolio                                                                                                                                                                                                  0.21                      %                                                                                                                                                                                                                     0.17                      %                                                                                                                                                                                                                     0.07                      %
Provision for loan losses to net charge-offs                                        1.27   x                                          2.89   x                                          2.42   x                     
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- --------------------
[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 BPNA segment.
[2] Net write-downs are related to loans sold or reclassified to
held-for-sale.
[3] Excluding provision for loan losses and net (write-downs)
recoveries related to loans sold or reclassified to held-for-sale.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                      
                                                                                                                                                                      Year ended                                                                                                                                                                                                                                      Year ended
(Dollars in thousands)                                                                                                                              31-Dec-16                                                                                                                                                                              31-Dec-15                                                                                       
------------------------------------------------------------- -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------------------
                                                      Non-covered                    Covered          Total                Non-covered                    Covered          Total    
                                                                                                  loans                                                                               loans                                                                                                                                                       loans                                                                               loans
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
Balance at beginning of period                                                                 $502,935                                                                             $34,176                                                                $537,111                                                                            $519,719                                                                             $82,073                                                                $601,792
Provision (reversal of provision) for loan losses                            171,126                    (1,110)        170,016                    217,458                     24,020        241,478    
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
                                                          674,061                     33,066        707,127                    737,177                    106,093        843,270    
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
Net loans charged-off (recovered):
BPPR
     Commercial                                                                                  20,755                                                                                   -                                                                  20,755                                                                              73,890                                                                              31,432                                                                 105,322
     Construction                                                                               (2,021)                                                                                   -                                                                 (2,021)                                                                               (886)                                                                              20,386                                                                  19,500
     Lease financing                                                                              3,888                                                                                   -                                                                   3,888                                                                               3,303                                                                                   -                                                                   3,303
     Mortgage                                                                                    64,316                                                                               2,716                                                                  67,032                                                                              50,991                                                                               5,228                                                                  56,219
     Consumer                                                                 76,306                          -         76,306                     83,876                         11         83,887    
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
        Total BPPR                                                           163,244                      2,716        165,960                    211,174                     57,057        268,231    
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
BPNA
     Commercial                                                                                 (3,313)                                                                                   -                                                                 (3,313)                                                                             (3,842)                                                                                   -                                                                 (3,842)
     Legacy [1]                                                                                 (1,913)                                                                                   -                                                                 (1,913)                                                                             (2,760)                                                                                   -                                                                 (2,760)
     Mortgage                                                                                     1,933                                                                                   -                                                                   1,933                                                                               1,279                                                                                   -                                                                   1,279
     Consumer                                                                  9,254                          -          9,254                      5,649                          -          5,649    
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
        Total BPNA                                                             5,961                          -          5,961                        326                          -            326    
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
Total loans charged-off - Popular, Inc.                                      169,205                      2,716        171,921                    211,500                     57,057        268,557    
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
Balance transferred from covered to non-covered loans                              -                          -              -                     13,037                   (13,037)              -    
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
Net (write-downs) recoveries [2]                                               5,445                          -          5,445                   (35,779)                    (1,823)       (37,602)    
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
Balance at end of period                                                    $510,301                    $30,350       $540,651                   $502,935                    $34,176       $537,111    
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio                                      0.76                      %                                                                                                                                 0.75                      %                                                         0.98                      %                                                                                                                                 1.17                      %
Provision for loan losses to net charge-offs [3]                                                   1.01                      x                                                                                                                                 0.99                      x                                                         1.03                      x                                                                                                                                 0.90                      x
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
BPPR
Annualized net charge-offs to average loans held-in-portfolio                                      0.95                      %                                                                                                                                 0.93                      %                                                         1.24                      %                                                                                                                                 1.45                      %
Provision for loan losses to net charge-offs [3]                                                   0.95                      x                                                                                                                                 0.93                      x                                                         1.03                      x                                                                                                                                 0.90                      x
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
BPNA
Annualized net charge-offs to average loans held-in-portfolio                                                                                                                                                                                                  0.12                      %                                                                                                                                                                                                                     0.01                      %
Provision for loan losses to net charge-offs                                        2.56   x                                          1.92   x
------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- --------------------
[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 BPNA segment.
[2] Net (write-downs) recoveries for the years ended December 31,
2016 and 2015 are related to loans sold or reclassified to
held-for-sale.
[3] Excluding provision for loan losses and net write-down related
to loans sold or reclassified to held-for-sale during the years
ended December 31, 2016 and December 31, 2015.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Popular, Inc.
Financial Supplement to Fourth Quarter 2016 Earnings Release
Table K - Allowance for Loan Losses - Breakdown of General and
Specific Reserves - CONSOLIDATED
(Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                          
----------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                     31-Dec-16
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                            Commercial               Construction                 Legacy [2]                   Mortgage            Lease financing                   Consumer                                                             Total[3]
----------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------------------
Specific ALLL                                                                                                                                 $42,375                                                                                  $-                                                                                  $-                                                                             $44,610                                                                                $535                                                                             $23,857                                                                            $111,377
Impaired loans                                                                         [1]                                                   $338,422                                                                                  $-                                                                                  $-                                                                            $506,364                                                                              $1,817                                                                            $109,454                                                                            $956,057
Specific ALLL to impaired loans                                     [1]                                   12.52   %                                         -   %                                         -   %                                      8.81   %                                     29.44   %                                     21.80   %                                     11.65   %
----------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
General ALLL                                                                                                                                 $160,279                                                                              $9,525                                                                              $1,343                                                                            $103,324                                                                              $7,127                                                                            $117,326                                                                            $398,924
Loans held-in-portfolio, excluding impaired loans                                      [1]                                                $10,460,085                                                                            $776,300                                                                             $45,293                                                                          $6,189,997                                                                            $701,076                                                                          $3,644,939                                                                         $21,817,690
General ALLL to loans held-in-portfolio, excluding impaired loans   [1]                                    1.53   %                                      1.23   %                                      2.97   %                                      1.67   %                                      1.02   %                                      3.22   %                                      1.83   %
----------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total ALLL                                                                                                                                   $202,654                                                                              $9,525                                                                              $1,343                                                                            $147,934                                                                              $7,662                                                                            $141,183                                                                            $510,301
Total non-covered loans held-in-portfolio                                              [1]                                                $10,798,507                                                                            $776,300                                                                             $45,293                                                                          $6,696,361                                                                            $702,893                                                                          $3,754,393                                                                         $22,773,747
ALLL to loans held-in-portfolio                                     [1]                                    1.88   %                                      1.23   %                                      2.97   %                                      2.21   %                                      1.09   %                                      3.76   %                                      2.24   %
----------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted
transaction.
[2] The legacy portfolio is comprised of commercial loans,
construction loans and lease financings related to certain lending
products exited by the Corporation as part of restructuring efforts
carried out in prior years at the BPNA reportable segment.
[3] Excludes covered loans acquired on the Westernbank FDIC-assisted
transaction. As of December 31, 2016 the general allowance on the
covered loans amounted to $30.4 million.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          
----------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                     30-Sep-16
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                            Commercial               Construction                 Legacy [2]                   Mortgage            Lease financing                   Consumer                                                             Total[3]
----------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------------------
Specific ALLL                                                                                                                                 $58,527                                                                                  $-                                                                                  $-                                                                             $45,557                                                                                $540                                                                             $24,433                                                                            $129,057
Impaired loans                                                                         [1]                                                   $328,868                                                                                  $-                                                                                  $-                                                                            $496,868                                                                              $1,899                                                                            $110,929                                                                            $938,564
Specific ALLL to impaired loans                                     [1]                                   17.80   %                                         -   %                                         -   %                                      9.17   %                                     28.44   %                                     22.03   %                                     13.75   %
----------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
General ALLL                                                                                                                                 $165,639                                                                              $9,942                                                                              $1,682                                                                             $93,971                                                                              $7,375                                                                            $117,927                                                                            $396,536
Loans held-in-portfolio, excluding impaired loans                                      [1]                                                $10,208,312                                                                            $731,352                                                                             $47,914                                                                          $6,277,639                                                                            $680,911                                                                          $3,711,280                                                                         $21,657,408
General ALLL to loans held-in-portfolio, excluding impaired loans   [1]                                    1.62   %                                      1.36   %                                      3.51   %                                      1.50   %                                      1.08   %                                      3.18   %                                      1.83   %
----------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total ALLL                                                                                                                                   $224,166                                                                              $9,942                                                                              $1,682                                                                            $139,528                                                                              $7,915                                                                            $142,360                                                                            $525,593
Total non-covered loans held-in-portfolio                                              [1]                                                $10,537,180                                                                            $731,352                                                                             $47,914                                                                          $6,774,507                                                                            $682,810                                                                          $3,822,209                                                                         $22,595,972
ALLL to loans held-in-portfolio                                     [1]                                    2.13   %                                      1.36   %                                      3.51   %                                      2.06   %                                      1.16   %                                      3.72   %                                      2.33   %
----------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted
transaction.
[2] The legacy portfolio is comprised of commercial loans,
construction loans and lease financings related to certain lending
products exited by the Corporation as part of restructuring efforts
carried out in prior years at the BPNA reportable segment.
[3] Excludes covered loans acquired on the Westernbank FDIC-assisted
transaction. As of September 30, 2016 the general allowance on the
covered loans amounted to $30.3 million.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          
----------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                     Variance
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                            Commercial               Construction                     Legacy                   Mortgage            Lease financing                   Consumer                      Total    
----------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Specific ALLL                                                                                                                               $(16,152)                                                                                  $-                                                                                  $-                                                                              $(947)                                                                                $(5)                                                                              $(576)                                                                           $(17,680)
Impaired loans                                                                        $9,554                         $-                         $-                     $9,496                      $(82)                   $(1,475)                    $17,493    
----------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
General ALLL                                                                                                                                 $(5,360)                                                                              $(417)                                                                              $(339)                                                                              $9,353                                                                              $(248)                                                                              $(601)                                                                              $2,388
Loans held-in-portfolio, excluding impaired loans                                   $251,773                    $44,948                   $(2,621)                  $(87,642)                    $20,165                  $(66,341)                   $160,282    
----------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total ALLL                                                                                                                                  $(21,512)                                                                              $(417)                                                                              $(339)                                                                              $8,406                                                                              $(253)                                                                            $(1,177)                                                                           $(15,292)
Total non-covered loans held-in-portfolio                                           $261,327                    $44,948                   $(2,621)                  $(78,146)                    $20,083                  $(67,816)                   $177,775    
----------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Popular, Inc.
Financial Supplement to Fourth Quarter 2016 Earnings Release
Table L - Allowance for Loan Losses - Breakdown of General and
Specific Reserves - PUERTO RICO OPERATIONS
(Unaudited)
 
                                                                                                                                         31-Dec-16
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                        Puerto Rico
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                                       Commercial   Construction    Mortgage     Lease financing   Consumer        Total
------------------------------------------------------------------------------------------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
Allowance for credit losses:                                                                                                                                
  Specific ALLL non-covered loans                                                       $42,375                                $-                         $42,428                                 $535                         $23,185                         $108,523
  General ALLL non-covered loans                                     147,311          1,353      100,892             7,127      102,778       359,461
-------------------- ------------------------------------------------------------- -------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
ALLL - non-covered loans                                                                189,686          1,353      143,320             7,662      125,963       467,984
------------------------------------------------------------------------------------------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
                     Specific ALLL covered loans                                                                 -                                 -                               -                                    -                               -                                -
  General ALLL covered loans                                               -              -       30,159                 -          191        30,350
-------------------- ------------------------------------------------------------- -------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
ALLL - covered loans                                                                          -              -       30,159                 -          191        30,350
------------------------------------------------------------------------------------------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
Total ALLL                                                                             $189,686         $1,353     $173,479            $7,662     $126,154      $498,334
------------------------------------------------------------------------------------------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
Loans held-in-portfolio:
                     Impaired non-covered loans                                                           $338,422                                $-                        $497,488                               $1,817                        $106,615                         $944,342
  Non-covered loans held-in-portfolio, excluding impaired loans    6,863,795         85,558    5,419,012           701,076    3,154,641    16,224,082
-------------------- ------------------------------------------------------------- -------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
Non-covered loans held-in-portfolio                                                   7,202,217         85,558    5,916,500           702,893    3,261,256    17,168,424
------------------------------------------------------------------------------------------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
                     Impaired covered loans                                                                      -                                 -                               -                                    -                               -                                -
  Covered loans held-in-portfolio, excluding impaired loans                -              -      556,570                 -       16,308       572,878
-------------------- ------------------------------------------------------------- -------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
Covered loans held-in-portfolio                                                               -              -      556,570                 -       16,308       572,878
------------------------------------------------------------------------------------------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
Total loans held-in-portfolio                                                        $7,202,217        $85,558   $6,473,070          $702,893   $3,277,564   $17,741,302
------------------------------------------------------------------------------------------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                            
                                                                                                                                         30-Sep-16
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                        Puerto Rico
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                                       Commercial   Construction     Mortgage   Lease financing     Consumer         Total
------------------------------------------------------------------------------------------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
Allowance for credit losses:
                     Specific ALLL non-covered loans                                                       $58,527                                $-                         $43,567                                 $540                         $23,708                         $126,342
  General ALLL non-covered loans                                     151,847          2,114       91,761             7,375      104,604       357,701
-------------------- ------------------------------------------------------------- -------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
ALLL - non-covered loans                                                                210,374          2,114      135,328             7,915      128,312       484,043
------------------------------------------------------------------------------------------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
                     Specific ALLL covered loans                                                                 -                                 -                               -                                    -                               -                                -
  General ALLL covered loans                                               -              -       30,135                 -          127        30,262
-------------------- ------------------------------------------------------------- -------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
ALLL - covered loans                                                                          -              -       30,135                 -          127        30,262
------------------------------------------------------------------------------------------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
Total ALLL                                                                             $210,374         $2,114     $165,463            $7,915     $128,439      $514,305
------------------------------------------------------------------------------------------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
Loans held-in-portfolio:
                     Impaired non-covered loans                                                           $328,868                                $-                        $487,972                               $1,899                        $108,341                         $927,080
  Non-covered loans held-in-portfolio, excluding impaired loans    6,925,290         81,054    5,476,876           680,911    3,185,490    16,349,621
-------------------- ------------------------------------------------------------- -------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
Non-covered loans held-in-portfolio                                                   7,254,158         81,054    5,964,848           682,810    3,293,831    17,276,701
------------------------------------------------------------------------------------------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
                     Impaired covered loans                                                                      -                                 -                               -                                    -                               -                                -
  Covered loans held-in-portfolio, excluding impaired loans                -              -      571,349                 -       16,862       588,211
-------------------- ------------------------------------------------------------- -------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
Covered loans held-in-portfolio                                                               -              -      571,349                 -       16,862       588,211
------------------------------------------------------------------------------------------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
Total loans held-in-portfolio                                                        $7,254,158        $81,054   $6,536,197          $682,810   $3,310,693   $17,864,912
---------------------------------------------------------------------------------  -------------------- ---------- -------------------- ------------ -------------------- ---------- -------------------- --------------- -------------------- ---------- -------------------- -----------
                                                                                                                                                                                                                                                                                            
                                                                    
-------------------- ------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                   Variance
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                                                 Commercial           Construction               Mortgage        Lease financing               Consumer                  Total
------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Allowance for credit losses:                                                                                                                                                                           
  Specific ALLL non-covered loans                                                               $(16,152)                                        $-                                  $(1,139)                                      $(5)                                    $(523)                                 $(17,819)
  General ALLL non-covered loans                                               (4,536)                  (761)                  9,131                  (248)                (1,826)                  1,760
-------------------- ------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
ALLL - non-covered loans                                                                         (20,688)                  (761)                  7,992                  (253)                (2,349)               (16,059)
------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                     Specific ALLL covered loans                                                                           -                                         -                                         -                                         -                                         -                                         -
  General ALLL covered loans                                                         -                      -                     24                      -                     64                     88
-------------------- ------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
ALLL - covered loans                                                                                    -                      -                     24                      -                     64                     88
------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total ALLL                                                                                      $(20,688)                 $(761)                 $8,016                 $(253)               $(2,285)              $(15,971)
------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Loans held-in-portfolio:
                     Impaired non-covered loans                                                                       $9,554                                        $-                                    $9,516                                     $(82)                                  $(1,726)                                   $17,262
  Non-covered loans held-in-portfolio, excluding impaired loans               (61,495)                  4,504               (57,864)                 20,165               (30,849)              (125,539)
-------------------- ------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Non-covered loans held-in-portfolio                                                              (51,941)                  4,504               (48,348)                 20,083               (32,575)              (108,277)
------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                     Impaired covered loans                                                                                -                                         -                                         -                                         -                                         -                                         -
  Covered loans held-in-portfolio, excluding impaired loans                          -                      -               (14,779)                      -                  (554)               (15,333)
-------------------- ------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Covered loans held-in-portfolio                                                                         -                      -               (14,779)                      -                  (554)               (15,333)
------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total loans held-in-portfolio                                                                   $(51,941)                 $4,504              $(63,127)                $20,083              $(33,129)             $(123,610)
------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                
Popular, Inc.
Financial Supplement to Fourth Quarter 2016 Earnings Release
Table M - Allowance for Loan Losses - Breakdown of General and
Specific Reserves - U.S. MAINLAND OPERATIONS
(Unaudited)
 
                                                                                                                                                             31-Dec-16
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                           U.S. Mainland
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                                     Commercial           Construction                 Legacy               Mortgage               Consumer                  Total
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Allowance for credit losses:                                                                                                                                                               
  Specific ALLL                                                                            $-                                        $-                                        $-                                    $2,182                                      $672                                    $2,854
  General ALLL                                                      12,968                  8,172                  1,343                  2,432                 14,548                 39,463
-------------------- ------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total ALLL                                                                            $12,968                 $8,172                 $1,343                 $4,614                $15,220                $42,317
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Loans held-in-portfolio:
                     Impaired loans                                                                           $-                                        $-                                        $-                                    $8,876                                    $2,839                                   $11,715
  Loans held-in-portfolio, excluding impaired loans              3,596,290                690,742                 45,293                770,985                490,298              5,593,608
-------------------- ------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total loans held-in-portfolio                                                      $3,596,290               $690,742                $45,293               $779,861               $493,137             $5,605,323
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                             30-Sep-16
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                           U.S. Mainland
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                                     Commercial           Construction                 Legacy               Mortgage               Consumer                  Total
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Allowance for credit losses:
                     Specific ALLL                                                                            $-                                        $-                                        $-                                    $1,990                                      $725                                    $2,715
  General ALLL                                                      13,792                  7,828                  1,682                  2,210                 13,323                 38,835
-------------------- ------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total ALLL                                                                            $13,792                 $7,828                 $1,682                 $4,200                $14,048                $41,550
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Loans held-in-portfolio:
                     Impaired loans                                                                           $-                                        $-                                        $-                                    $8,896                                    $2,588                                   $11,484
  Loans held-in-portfolio, excluding impaired loans              3,283,022                650,298                 47,914                800,763                525,790              5,307,787
-------------------- ------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total loans held-in-portfolio                                                      $3,283,022               $650,298                $47,914               $809,659               $528,378             $5,319,271
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                      
                                                        
-------------------- ------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                             Variance
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                                     Commercial           Construction                 Legacy               Mortgage               Consumer                  Total
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Allowance for credit losses:
                     Specific ALLL                                                                            $-                                        $-                                        $-                                      $192                                     $(53)                                      $139
  General ALLL                                                       (824)                    344                  (339)                    222                  1,225                    628
-------------------- ------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total ALLL                                                                             $(824)                   $344                 $(339)                   $414                 $1,172                   $767
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Loans held-in-portfolio:
                     Impaired loans                                                                           $-                                        $-                                        $-                                     $(20)                                      $251                                      $231
  Loans held-in-portfolio, excluding impaired loans                313,268                 40,444                (2,621)               (29,778)               (35,492)                285,821
-------------------- ------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total loans held-in-portfolio                                                        $313,268                $40,444               $(2,621)              $(29,798)              $(35,241)               $286,052
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                    
Popular, Inc.                                                                                                                                  
Financial Supplement to Fourth Quarter 2016 Earnings Release
Table N - Reconciliation to GAAP Financial Measures
(Unaudited)
                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                        
(In thousands, except share or per share information)     31-Dec-16         30-Sep-16         31-Dec-15    
----------------------------------------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- --------------------
Total stockholders’ equity                       $5,197,957                                                                 $5,380,395                                                                 $5,105,324
Common shares outstanding at end of period                                 103,790,932                                                                103,762,596                                                                103,618,976
Book value per common share                                  $50.08            $51.85            $49.27
----------------------------------------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- -----------
                                                                                                                                                                                                                                                                                        
Total stockholders’ equity                       $5,197,957                                                                 $5,380,395                                                                 $5,105,324
Less: Preferred stock                                                         (50,160)                                                                   (50,160)                                                                   (50,160)
Less: Goodwill                                                               (627,294)                                                                  (627,294)                                                                  (626,388)
Less: Other intangibles                                    (45,050)          (47,886)          (58,109)    
----------------------------------------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- --------------------
Total tangible common equity                             $4,475,453        $4,655,055        $4,370,667    
----------------------------------------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- --------------------
Total assets                                                               $38,661,609                                                                $39,054,296                                                                $35,761,733
Less: Goodwill                                                               (627,294)                                                                  (627,294)                                                                  (626,388)
Less: Other intangibles                                    (45,050)          (47,886)          (58,109)    
----------------------------------------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- --------------------
Total tangible assets                                   $37,989,265       $38,379,116       $35,077,236    
----------------------------------------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- --------------------
Tangible common equity to tangible assets                                        11.78                      %                                               12.13                      %                                               12.46                      %
Common shares outstanding at end of period                                 103,790,932                                                                103,762,596                                                                103,618,976
Tangible book value per common share                         $43.12            $44.86            $42.18    
----------------------------------------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- --------------------
                                                                                                                                                                                                                                                                                        
Popular, Inc.                                                                                  
Financial Supplement to Fourth Quarter 2016 Earnings Release
Table O - Financial Information - Westernbank Loans
(Unaudited)
                                                                                                                                                                    
                                                                                                                                                                    
Revenues (Expenses)
                                                                                                        Quarters ended
(In thousands)                                                          31-Dec-16   30-Sep-16    Variance
------------------------------------------------------------------------------------------ --------- -------------------- --------- -------------------- ---------
Interest income on WB loans                                               $39,642     $40,867    $(1,225)
------------------------------------------------------------------------------------------ --------- -------------------- --------- -------------------- ---------
FDIC loss-share expense:
Amortization of indemnification asset                                                          (864)                        (1,259)                            395
80% mirror accounting on credit impairment losses (reversal) [1]                                 720                            659                             61
80% mirror accounting on reimbursable expenses                                                 1,395                            853                            542
80% mirror accounting on recoveries on covered assets, including
rental income on OREOs,
                                 subject to reimbursement to the FDIC                       (26,215)                          (522)                       (25,693)
Change in true-up payment obligation                                                        (18,671)                        (6,611)                       (12,060)
Arbitration award expense                                                                   (81,273)                       (54,924)                       (26,349)
Other                                                                     (5,426)          81     (5,507)
------------------------------------------------------------------------------------------ --------- -------------------- --------- -------------------- ---------
              Total FDIC loss-share expense          (130,334)    (61,723)    (68,611)
-------------------------------- ------------------------------------ -------------------- --------- -------------------- --------- -------------------- ---------
Total expense                                                            (90,692)    (20,856)    (69,836)
------------------------------------------------------------------------------------------ --------- -------------------- --------- -------------------- ---------
Provision (reversal) for loan losses- WB loans                            (2,292)       6,612     (8,904)
------------------------------------------------------------------------------------------ --------- -------------------- --------- -------------------- ---------
Total expense less provision (reversal) for loan losses                 $(88,400)   $(27,468)   $(60,932)
------------------------------------------------------------------------------------------ --------- -------------------- --------- -------------------- ---------
[1]                              Reductions in expected cash flows for ASC 310-30 loans, which may
                                 impact the provision for loan losses, may consider reductions in
                                 both principal and interest cash flow expectations. The amount
                                 covered under the FDIC loss-sharing agreement for interest not
                                 collected from borrowers is limited under the agreement
                                 (approximately 90 days); accordingly, these amounts are not
                                 subject fully to the 80% mirror accounting.
-------------------------------- ---------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                    
                                                                                                                                                                    
Non-personnel operating expenses
                                                                                                     Quarters ended [1][2]
(In thousands)                                                          31-Dec-16   30-Sep-16    Variance
------------------------------------------------------------------------------------------ --------- -------------------- --------- -------------------- ---------
Professional fees                                                                             $6,936                         $4,501                         $2,435
OREO expenses                                                                                  2,766                          2,702                             64
Other operating expenses                                                    1,619       1,738       (119)
------------------------------------------------------------------------------------------ --------- -------------------- --------- -------------------- ---------
Total operating expenses                                                  $11,321      $8,941      $2,380
------------------------------------------------------------------------------------------ --------- -------------------- --------- -------------------- ---------
[1]                              Includes expenses related to loans subject, and not subject, to
                                 the FDIC loss-sharing agreements.
[2]                              Expense reimbursements from the FDIC may be recorded with a time
                                 lag, since these are claimed upon the event of loss or charge-off of
                                 the loans which may occur in a subsequent period.
-------------------------------- ---------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                    
                                                                                                                                                                    
Quarterly average assets
                                                                                                        Quarters ended
(In millions)                                                           31-Dec-16   30-Sep-16    Variance
------------------------------------------------------------------------------------------ --------- -------------------- --------- -------------------- ---------
Loans                                                                                         $1,845                         $1,881                          $(36)
FDIC loss-share asset                                                         126         192        (66)
------------------------------------------------------------------------------------------ --------- -------------------- --------- -------------------- ---------
 
Activity in the carrying amount and accretable yield of loans                                                                                                                                             
accounted for under ASC 310-30
                                                                                                                          
                                                                                                                                                                  Quarters ended
                                                                     31-Dec-16                                                   30-Sep-16
---------------------------------- -------------------------------------------- -------------------- ------------------------------------------------------------------------------ ----------------------------------------------------------
(In thousands)                                                                      Accretable yield      Carrying amount    Accretable yield      Carrying amount
                                                                                                                                                   of loans                                                                       of loans
------------------------------------------------------------------------------  -------------------- -------------------- -------------------- --------------- -------------------- -------------------- -------------------- ---------------
Beginning balance                                                                                              $1,038,692        $1,767,539                                $1,071,680                           $1,799,943
Accretion                                                                                                        (38,149)                               38,149                                  (39,590)                               39,590
Changes in expected cash flows                                                                                      9,544                                    -                                     6,602                                    -
Collections / loan sales / charge-offs                                                               -          (67,359)                      -          (71,994)
---------------------------------------------------------------------------------------------------- -------------------- -------------------- --------------- -------------------- -------------------- -------------------- ---------------
Ending balance [1]                                                                                              1,010,087                            1,738,329                                 1,038,692                            1,767,539
                Allowance for loan losses - ASC 310-30 loans                      -          (68,877)                      -          (69,571)
---------------------------------- -------------------------------------------- -------------------- -------------------- -------------------- --------------- -------------------- -------------------- -------------------- ---------------
Ending balance, net of allowance for loan losses                                            $1,010,087        $1,669,452             $1,038,692        $1,697,968
---------------------------------------------------------------------------------------------------- -------------------- -------------------- --------------- -------------------- -------------------- -------------------- ---------------
                                                                                                                                                                                                                                               
[1] The carrying amount of loans acquired from Westernbank and
accounted for under ASC 310-30 which remain subject to the
loss-sharing agreement with the FDIC amounted to approximately $563
million as of December 31, 2016 and $578 million as of September 30,
2016.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
Activity in the carrying amount of the FDIC indemnity asset
                                                                                                                                                                                                                                               
                                                                                                                                                                                       Quarters ended
(In thousands)                                                                              31-Dec-16             30-Sep-16
---------------------------------------------------------------------------------------------------- -------------------- -------------------- --------------- -------------------- -------------------- -------------------- ---------------
Balance at beginning of period                                                                                                                        $152,467                                                                       $214,029
Amortization                                                                                                                                             (864)                                                                        (1,259)
Credit impairment losses (reversal) to be covered under loss-sharing                                                                                       720                                                                            659
agreements
Reimbursable expenses to be covered under loss-sharing agreements                                                                                        1,395                                                                            853
Net payments from FDIC under loss-sharing agreements                                                                                                   (3,111)                                                                        (6,819)
Arbitration award expense                                                                                                                             (81,273)                                                                       (54,924)
Other adjustments attributable to FDIC loss-sharing agreements                                      -                  (72)
---------------------------------------------------------------------------------------------------- -------------------- -------------------- --------------- -------------------- -------------------- -------------------- ---------------
Balance at end of period                                                                      $69,334              $152,467
---------------------------------------------------------------------------------------------------- -------------------- -------------------- --------------- -------------------- -------------------- -------------------- ---------------
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
Activity in the remaining FDIC loss-share asset amortization
                                                                                                                                                                                                                                               
                                                                                                                                                                                       Quarters ended
(In thousands)                                                                              31-Dec-16             30-Sep-16
---------------------------------------------------------------------------------------------------- -------------------- -------------------- --------------- -------------------- -------------------- -------------------- ---------------
Balance at beginning of period                                                                                                                          $7,305                                                                        $23,191
Amortization                                                                                                                                             (864)                                                                        (1,259)
Impact of change in projected losses                                                          (1,629)              (14,627)
---------------------------------------------------------------------------------------------------- -------------------- -------------------- --------------- -------------------- -------------------- -------------------- ---------------
Balance at end of period                                                                       $4,812                $7,305
---------------------------------------------------------------------------------------------------- -------------------- -------------------- --------------- -------------------- -------------------- -------------------- ---------------
Popular, Inc.
Financial Supplement to Fourth Quarter 2016 Earnings Release
Table P - Adjusted Net Income for the Years Ended December 31,
2016 and 2015 (Non-GAAP)
(Unaudited)
 
                                                                                        31-Dec-16
-------------------------------------- -------------------- --------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                  Pre-tax              Income tax             Impact on net
                                                                                                             effect                                                                           income
-------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------
U.S. GAAP Net income                                                                            $216,691
Non-GAAP Adjustments:
Impact of EVERTEC Restatement [1]                                          2,173                                         -                                                                        2,173
Bulk Sale of WB loans and OREO [2]                                         (891)                                    347[4]                                                     (544)
FDIC arbitration award[3]                                                171,757                               (41,108)[4]                                                   130,649
Goodwill impairment charge[5]                                              3,801                                         -                                                                        3,801
Other FDIC - LSA adjustments[6]                                            8,806                                (2,380)[4]                                                     6,426
Income from discontinued operations[7]                (2,015)                    880             (1,135)
-------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------
Adjusted net income (Non-GAAP)                            $358,061
-------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------
[1]Represents Popular Inc.’s proportionate share of the
cumulative impact of EVERTEC restatement and other corrective
adjustments to its financial statements, as disclosed in EVERTEC’s
2015 Annual Report on Form 10K. Due to the preferential tax rate
on the income from EVERTEC, the tax effect of this transaction was
insignificant to the Corporation.
[2]Represents the impact of the bulk sale of Westernbank
loans and OREO.
[3]Represents the arbitration decision denying BPPR’s
request for reimbursement in certain shared loss claims.
[4]Gains and losses related to assets acquired from
Westernbank as part of the FDIC assisted transaction are subject
to the capital gains tax rate of 20%. Other items related to the
FDIC loss-sharing agreements are subject to the statutory tax rate
of 39%.
[5]Represents goodwill impairment charge in the
Corporation’s securities subsidiary. The securities subsidiary is a
limited liability company with a partnership election. Accordingly,
its earnings flow through Popular, Inc., holding company, for income
tax purposes. Since Popular, Inc. has a full valuation allowance on
its deferred tax assets, this results in an effective tax rate of 0%.
[6]Additional adjustments, including prior period
recoveries, related to restructured commercial loans to reduce the
indemnification asset to its expected realizable value.
[7]Represents income from discontinued operations
associated with the BPNA reorganization.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                         
                                                                                           31-Dec-15
---------------------------------------------------- -------------------- -----------------------------------------------------------------------------------------------------------------
(In thousands)                                                Pre-tax              Income tax           Impact on net
                                                                                                                           effect                                                      income
---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------
U.S. GAAP Net income                                                                                        $895,344
Non-GAAP Adjustments:
BPNA Reorganization[1]                                                                  17,065                                         -                                                  17,065
Doral Transaction[2]                                                                    25,576                                   (7,690)                                                  17,886
OTTI[3]                                                                                 14,445                                   (2,486)                                                  11,959
Reversal DTA - PNA[4]                                                                        -                                 (589,030)                                               (589,030)
Loss on Bulk Sale of Covered OREOs[5]                                                    4,391                                   (1,712)                                                   2,679
Adjustment to FDIC Indemnification Asset[6]                                             10,887                                   (2,177)                                                   8,710
MSR’s Acquired[7]                                                                      (4,378)                                     1,707                                                 (2,671)
Impairment of Loans Under Proposed Portfolio Sale[8]                                    15,190                                   (5,924)                                                   9,266
Bulk Sale[9]                                                          5,852                (2,282)             3,570
---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------
Adjusted Net income (Non-GAAP)                                        $374,778
---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------
[1]Represents restructuring charges associated with the
reorganization of BPNA. The impact of the partial reversal of the
valuation allowance of the deferred tax asset at BPNA corresponding
to the income for the year 2015 was reflected in the effective tax
rate, effectively reducing the income tax expense by the benefit of
such reversal.
[2]Includes approximately $0.8 million of fees charged
for loan servicing cost to the FDIC, $2.1 million of fees charged
for services provided to the alliance co-bidders, personnel costs
related to former Doral Bank employees retained on a temporary basis
and incentive compensation for an aggregate of $7.1 million,
building rent expense of Doral Bank’s administrative offices for
$4.1 million, professional fees and business promotion expenses
directly associated with the Doral Bank Transaction and systems
conversion for $16.0 million and other expenses, including
equipment, business promotions and communications, of $1.3 million.
Includes items corresponding to BPPR, which were taxed at 39% and
items corresponding to BPNA, which had an effective tax rate of 0%
due to the impact of the partial reversal of the valuation
allowance, mentioned above.
[3]Represents an other than temporary impairment ("OTTI")
recorded on Puerto Rico government investment securities available-
for- sale. These securities had an amortized cost of approximately
$41.1 million and a market value of $26.6 million. Based on the
fiscal and economic situation in Puerto Rico, together with the
government’s announcements regarding its ability to pay its debt,
the Corporation determined that the unrealized loss, a portion of
which had been in an unrealized loss for a period exceeding twelve
months, was other than temporary. The tax effect of this impairment
is reflected at the capital gains rate of 20%, except for entities
which had a full valuation allowance on its deferred tax asset.
[4]Represents the partial reversal of the valuation
allowance of a portion of the deferred tax asset amounting to
approximately $1.2 billion, at the U.S. operations.
[5]Represents the loss on a bulk sale of covered OREOs
completed in the second quarter and the related mirror accounting of
the 80% reimbursable from the FDIC.
[6]The quarter’s negative amortization of the FDIC’s
Indemnification Asset included a $10.9 million expense related to
losses incurred by the corporation that were not claimed to the FDIC
before the expiration of the loss-share portion of the agreement on
June 30, 2015, and that are not subject to the ongoing arbitrations.
Gains and losses related to assets acquired from Westernbank as part
of the FDIC assisted transaction are subject to the capital gains
tax rate of 20%.
[7]Represents the fair value of mortgage servicing rights
acquired for a portfolio previously serviced by Doral Bank, for
which the Corporation acted as a backup servicer, under a
pre-existing contract.
[8]Represents impairment based on the estimated fair
value of loans acquired from Westernbank, that the Corporation has
the intent to sell and are subject to the ongoing arbitration with
the FDIC.
[9]Represents the impact of a bulk sale of loans at the
BPPR segment, which had a book value of approximately $34.4 million.
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http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170124005427r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170124005427/en/

SOURCE: Popular, Inc.

Popular, Inc. 
Investor Relations: 
Brett Scheiner, 212-417-6721 
Investor Relations Officer 
BScheiner@BPOP.com 
or 
Media Relations: 
Teruca Rullan, 787-281-5170 or Mobile: 917-679-3596 
Senior Vice President, Corporate Communications


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