Segment reporting

6 Months Ended

Jun. 30, 2026

Segment Reporting [Abstract]

Segment reporting

Segment reporting

The Corporation’s corporate structure consists of two reportable segments – Banco Popular de Puerto Rico and Popular U.S. Management

determined the reportable segments based on the internal reporting used to evaluate performance and to assess where to allocate

resources. The segments were determined based on the organizational structure, which focuses primarily on the markets the segments

serve, as well as on the products and services offered by the segments.

The chief operating decision maker (“CODM”) of the Corporation is the Chief Executive Officer (“CEO") who utilizes net income as one of

the segment profitability measures, to evaluate the performance of each reportable segment and assess where to allocate resources

effectively. The CEO receives profitability reports that include net income per segment, net interest income and other income and expense

categories. The CODM uses the segment’s net income and components of net income, including segment revenues and expenses to

assess performance and to manage important aspects by each reportable segments, such as human capital, investment in technology,

making budget allocations, as well as other strategic decisions.

Banco Popular de Puerto Rico:

The Banco Popular de Puerto Rico reportable segment includes commercial, consumer and retail banking operations, as well as mortgage

and auto lending operations conducted at BPPR, including U.S. based activities conducted through its New York Branch. Other financial

services within the BPPR segment include the trust service units of BPPR, asset management services of Popular Asset Management and

the brokerage operations of Popular Securities, and the insurance agency and reinsurance businesses of Popular Insurance, Popular Risk

Services, Popular Life Re, and Popular Re.

Popular U.S.:

Popular U.S. reportable segment consists of the banking operations of Popular Bank (PB), Popular Insurance Agency, U.S.A., and PEF. PB

operates through a retail branch network in the U.S. mainland under the name of Popular, and equipment leasing and financing services

through PEF. Popular Insurance Agency, U.S.A. offers investment and insurance services across the PB branch network.

The Corporate group consists primarily of the holding companies Popular, Inc., Popular North America, Popular International Bank and

certain of the Corporation’s investments accounted for under the equity method, including BHD.

The accounting policies of the individual operating segments are the same as those of the Corporation. Transactions between reportable

segments are primarily conducted at market rates, resulting in profits that are eliminated for reporting consolidated results of operations.

Assets representing transactions between reportable segments or the Corporate group are also eliminated in the tables presented below.

The tables that follow present the results of operations and total assets by reportable segments:

2026
For the quarter ended June 30, 2026
(In thousands)	BPPR	Popular U.S.	Intersegment Eliminations
Interest income	$779,759	$201,358	$-
Interest expense	189,836	88,282	-
Net interest income	589,923	113,076	-
Provision for credit losses	63,156	2,752	-
Non-interest income	155,700	7,296	(22)
Personnel costs	165,537	27,461	(22)
Professional fees	14,075	1,751	-
Technology and software expenses	67,349	11,008	-
Processing and transactional services	36,695	533	-
Amortization of intangibles	239	145	-
Depreciation expense	11,886	2,146	-
Other operating expenses [1]	122,034	23,697	-
Total operating expenses	417,815	66,741	(22)
Income before income tax	264,652	50,879	-
Income tax expense	31,748	14,293	-
Net income	$232,904	$36,586	$-
Segment assets	$63,517,017	$15,032,815	$(38,964)
[1] Other operating expenses includes net occupancy expenses, equipment expense, excluding depreciation, other operating taxes, communications expense, business promotion expenses, deposit insurance costs and OREO expenses.

For the quarter ended June 30, 2026
(In thousands)	Reportable Segments	Corporate	Eliminations	Total Popular, Inc.
Interest income	$981,117	$1,144	$(622)	$981,639
Interest expense	278,118	10,724	(622)	288,220
Net interest income (expense)	702,999	(9,580)	-	693,419
Provision for credit losses (benefit)	65,908	(35)	-	65,873
Non-interest income	162,974	18,354	(783)	180,545
Personnel costs	192,976	36,084	(29)	229,031
Professional fees	15,826	8,977	(319)	24,484
Technology and software expenses	78,357	12,614	-	90,971
Processing and transactional services	37,228	38	-	37,266
Amortization of intangibles	384	-	-	384
Depreciation expense	14,032	376	-	14,408
Other operating expenses [1]	145,731	(57,802)	(343)	87,586
Total operating expenses	484,534	287	(691)	484,130
Income before income tax	315,531	8,522	(92)	323,961
Income tax expense	46,041	(294)	-	45,747
Net income	$269,490	$8,816	$(92)	$278,214
Segment assets	$78,510,868	$5,690,030	$(5,228,598)	$78,972,300
[1] Other operating expenses includes net occupancy expenses, equipment expense, excluding depreciation, other operating taxes, communications expense, business promotion expenses, deposit insurance costs and OREO expenses.

For the six months ended June 30, 2026
(In thousands)	BPPR	Popular U.S.	Intersegment Eliminations
Interest income	$1,528,260	$399,606	$-
Interest expense	370,391	174,823	-
Net interest income	1,157,869	224,783	-
Provision for credit losses	136,689	5,135	-
Non-interest income	300,477	15,248	(43)
Personnel costs	318,171	52,608	(43)
Professional fees	26,041	4,400	-
Technology and software expenses	133,070	20,542	-
Processing and transactional services	75,152	1,140	-
Amortization of intangibles	479	289	-
Depreciation expense	22,852	4,335	-
Other operating expenses [1]	244,359	48,986	-
Total operating expenses	820,124	132,300	(43)
Income before income tax	501,533	102,596	-
Income tax expense	64,259	29,045	-
Net income	$437,274	$73,551	$-
Segment assets	$63,517,017	$15,032,815	$(38,964)

For the six months ended June 30, 2026
(In thousands)	Reportable Segments	Corporate	Eliminations	Total Popular, Inc.
Interest income	$1,927,866	$2,470	$(1,481)	$1,928,855
Interest expense	545,214	21,523	(1,481)	565,256
Net interest income (expense)	1,382,652	(19,053)	-	1,363,599
Provision for credit losses (benefit)	141,824	(65)	-	141,759
Non-interest income	315,682	32,198	(1,709)	346,171
Personnel costs	370,736	74,422	(58)	445,100
Professional fees	30,441	20,324	(728)	50,037
Technology and software expenses	153,612	26,498	-	180,110
Processing and transactional services	76,292	61	-	76,353
Amortization of intangibles	768	-	-	768
Depreciation expense	27,187	759	-	27,946
Operating expenses [1]	293,345	(121,464)	(755)	171,126
Total operating expenses	952,381	600	(1,541)	951,440
Income before income tax	604,129	12,610	(168)	616,571
Income tax expense	93,304	(621)	-	92,683
Net income (loss)	$510,825	$13,231	$(168)	$523,888
Segment assets	$78,510,868	$5,690,030	$(5,228,598)	$78,972,300
[1] Other operating expenses includes net occupancy expenses, equipment expense, excluding depreciation, other operating taxes, communications expense, business promotion expenses, deposit insurance costs and OREO expenses.

.

2025
For the quarter ended June 30, 2025
(In thousands)	BPPR	Popular U.S.	Intersegment Eliminations
Interest income	$748,712	$195,668	$(1,041)
Interest expense	210,237	93,474	(1,041)
Net interest income	538,475	102,194	-
Provision for credit losses (benefit)	42,452	6,532	-
Non-interest income	145,685	7,421	-
Personnel costs	164,794	27,387	-
Professional fees	13,025	2,450	-
Technology and software expenses	64,226	10,345	-
Processing and transactional services	37,276	582	-
Amortization of intangibles	240	145	-
Depreciation expense	10,344	2,266	-
Other operating expenses[1]	132,004	28,021	-
Total operating expenses	421,909	71,196	-
Income before income tax	219,799	31,887	-
Income tax expense	35,256	9,280	-
Net income	$184,543	$22,607	$-
Segment assets	$60,926,458	$14,865,364	$(120,633)

For the quarter ended June 30, 2025
(In thousands)	Reportable Segments	Corporate	Eliminations	Total Popular, Inc.
Interest income	943,339	1,578	(1,045)	943,872
Interest expense	302,670	10,698	(1,045)	312,323
Net interest income (expense)	$640,669	$(9,120)	$-	$631,549
Provision for credit losses (benefit)	48,984	(43)	-	48,941
Non-interest income	153,106	16,107	(736)	168,477
Personnel costs	192,181	37,174	-	229,355
Professional fees	15,475	12,887	(254)	28,108
Technology and software expenses	74,571	10,125	-	84,696
Processing and transactional services	37,858	3	-	37,861
Amortization of intangibles	385	-	-	385
Depreciation expense	12,610	429	-	13,039
Other operating expenses[1]	160,025	(60,181)	(527)	99,317
Total operating expenses	493,105	437	(781)	492,761
Income before income tax	251,686	6,593	45	258,324
Income tax expense (benefit)	44,536	3,277	71	47,884
Net income	$207,150	$3,316	$(26)	$210,440
Segment assets	$75,671,189	$5,786,893	$(5,392,992)	$76,065,090

[1]Other operating expenses includes net occupancy expenses, equipment expense, excluding depreciation, other operating taxes, communications

expense, business promotion expenses, deposit insurance costs and OREO expenses.

For the six months ended June 30, 2025
(In thousands)	BPPR	Popular U.S.	Intersegment Eliminations
Interest income	$1,480,600	$382,060	$(2,722)
Interest expense	420,233	186,924	(2,722)
Net interest income	1,060,367	195,136	-
Provision for credit losses	95,964	17,142	-
Non-interest income	283,190	13,564	-
Personnel costs	316,078	52,829	-
Professional fees	26,084	5,189	-
Technology and software expenses	128,377	20,433	-
Processing and transactional services	74,455	1,179	-
Amortization of intangibles	582	400	-
Depreciation expense	20,038	4,463	-
Other operating expenses [1]	260,758	53,640	-
Total operating expenses	826,372	138,133	-
Income before income tax	421,221	53,425	-
Income tax expense	70,699	16,002	-
Net income	$350,522	$37,423	$-
Segment assets	$60,926,458	$14,865,364	$(120,633)

For the six months ended June 30, 2025
(In thousands)	Reportable Segments	Corporate	Eliminations	Total Popular, Inc.
Interest income	$1,859,938	$3,114	$(2,182)	$1,860,870
Interest expense	604,435	21,471	(2,182)	623,724
Net interest income (expense)	1,255,503	(18,357)	-	1,237,146
Provision for credit losses (benefit)	113,106	(84)	-	113,022
Non-interest income	296,754	25,136	(1,352)	320,538
Personnel costs	368,907	73,161	-	442,068
Professional fees	31,273	24,244	(584)	54,933
Technology and software expenses	148,810	19,554	-	168,364
Processing and transactional services	75,634	8	-	75,642
Amortization of intangibles	982	-	-	982
Depreciation expense	24,501	818	-	25,319
Other operating expenses [1]	314,398	(116,583)	(1,350)	196,465
Total operating expenses	964,505	1,202	(1,934)	963,773
Income before income tax	474,646	5,661	582	480,889
Income tax expense (benefit)	86,701	5,952	294	92,947
Net income	$387,945	$(291)	$288	$387,942
Segment assets	$75,671,189	$5,786,893	$(5,392,992)	$76,065,090

[1]Other operating expenses includes net occupancy expenses, equipment expense, excluding depreciation, other operating taxes, communications

expense, business promotion expenses, deposit insurance costs and OREO expenses.

Geographic Information

The following information presents selected financial information based on the geographic location where the Corporation conducts its

business. The banking operations of BPPR are primarily based in Puerto Rico, where it has the largest retail banking franchise. BPPR also

conducts banking operations in the U.S. Virgin Islands, the British Virgin Islands and New York. BPPR’s banking operations in the mainland

United States include commercial lending activities in addition to periodic loan participations with PB. During the six months ended June 30,

2026, BPPR did not participate in loans originated by PB (2025 - $29.0 million). Total assets for the BPPR segment related to its operations

in the United States amounted to $1.2 billion (December 31, 2025 - $1.4 billion), including $101.0 million in multifamily loans (December 31,

2025 - $102.0 million), $378.0 million in commercial real estate loans (December 31, 2025 - $435.0 million), $674.0 million in C&I loans

(December 31, 2025 - $714.0 million), and $23.0 million in unsecured personal loans (December 31, 2025 - $41.0 million). During the six

months ended June 30, 2026, the BPPR segment generated $42.0 million (June 30, 2025 - $51.4 million) in revenues from its operations in

the United States, mainly from net interest income. In the Virgin Islands, the BPPR segment offers banking products, including loans and

deposits. Total assets for the BPPR segment related to its operations in the U.S. and British Virgin Islands amounted to $1.1 billion

(December 31, 2025 -$1.0 billion). The BPPR segment generated $27.7 million in revenues during the six months ended June 30, 2026

(June 30, 2025 - $25.0 million) from its operations in the U.S. and British Virgin Islands.

Geographic Information

	Quarter ended		Six months ended
(In thousands)	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Revenues: [1]
Puerto Rico	$701,488	$636,232	$1,369,559	$1,246,193
United States	139,422	139,274	279,085	266,490
Other	33,054	24,520	61,126	45,001
Total consolidated revenues	$873,964	$800,026	$1,709,770	$1,557,684

[1]Total revenues include net interest income, service charges on deposit accounts, other service fees, mortgage banking activities, net gain (loss),including

impairment, on equity securities, net gain on trading account debt securities, adjustments to indemnity reserves on loans sold, and other operating income.

Selected Balance Sheet Information:

(In thousands)	June 30, 2026	December 31, 2025
Puerto Rico
Total assets	$61,313,912	$57,955,465
Loans	26,370,150	25,853,231
Deposits	56,416,936	52,451,498
United States
Total assets	$16,255,576	$16,101,705
Loans	12,949,579	12,966,468
Deposits	11,891,146	11,987,581
Other
Total assets	$1,402,812	$1,291,097
Loans	518,712	517,817
Deposits [1]	1,925,033	1,751,014

[1]Represents deposits from BPPR operations located in the U.S. and British Virgin Islands.