Allowance for credit losses - loans held-in-portfolio

6 Months Ended

Jun. 30, 2021

Allowance for credit losses [Abstract]

Allowance for credit losses

Note 8 – Allowance for credit losses – loans held-in-portfolio

The Corporation follows the current expected credit loss (“CECL”) model, to establish and evaluate the adequacy of the allowance for credit losses (“ACL”) to provide for expected losses in the loan portfolio. This model establishes a forward-looking methodology that reflects the expected credit losses over the lives of financial assets, starting when such assets are first acquired or originated. In addition, CECL provides that the initial ACL on purchased credit deteriorated (“PCD”) financial assets be recorded as an increase to the purchase price, with subsequent changes to the allowance recorded as a credit loss expense. The provision for credit losses charged to current operations is based on this methodology. Loan losses are charged and recoveries are credited to the ACL.

At June 30, 2021, the Corporation estimated the ACL by weighting the outputs of optimistic, baseline, and pessimistic scenarios. Among the three scenarios used to estimate the ACL, the baseline is assigned the highest probability, followed by the pessimistic scenario given the uncertainties in the economic outlook and downside risk. The weights applied are subject to evaluation on a quarterly basis as part of the ACL’s governance process. The current baseline forecast continues to show a favorable economic scenario. The 2021 forecasted GDP growth is now at 6.8% for U.S. and 3.8% for P.R., compared to 4.9% and 3.4%, respectively, in the previous quarter’s forecast. The forecasted U.S. unemployment rate average for 2021 is now 5.43%. This is an improvement over the previous estimate of 6.09%. In the case of P.R., the forecasted unemployment rate average for 2021 of 8.43% was slightly higher than the previous forecast of 7.98%. However, unemployment rate levels in P.R. are expected to continue declining through 2022. The P.R. forecasted average unemployment rate for 2022 of 7.25% is lower than the previous forecast of 7.52%.

The following tables present the changes in the ACL of loans held-in-portfolio and unfunded commitments for the quarters and six months ended June 30, 2021 and 2020.

For the quarter ended June 30, 2021
Puerto Rico
(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses - loans:
Beginning balance		$	197,111	$	260	$	185,805	$	12,687	$	285,793	$	681,656
	Provision for credit losses (benefit)		(20,204)		481		(19,264)		5,257		11,242		(22,488)
	Initial allowance for credit losses - PCD Loans		-		-		1,202		-		-		1,202
	Charge-offs		(2,035)		-		(5,047)		(1,135)		(17,366)		(25,583)
	Recoveries		11,912		479		4,112		742		9,821		27,066
Ending balance		$	186,784	$	1,220	$	166,808	$	17,551	$	289,490	$	661,853
Allowance for credit losses - unfunded commitments:
Beginning balance		$	3,913	$	245	$	-	$	-	$	-	$	4,158
	Provision for credit losses (benefit)		(661)		1,160		-		-		-		499
Ending balance - unfunded commitments [1]		$	3,252	$	1,405	$	-	$	-	$	-	$	4,657
[1]	Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

For the quarter ended June 30, 2021
Popular U.S.
(In thousands)		Commercial		Construction		Mortgage			Consumer	Total
Allowance for credit losses - loans:
Beginning balance		$	79,108	$	8,935	$	16,321	$	14,777	$	119,141
	Provision for credit losses (benefit)		4,839		1,194		(933)		(112)		4,988
	Charge-offs		(690)		(523)		-		(2,374)		(3,587)
	Recoveries		1,103		430		423		1,439		3,395
Ending balance		$	84,360	$	10,036	$	15,811	$	13,730	$	123,937
Allowance for credit losses - unfunded commitments:
Beginning balance		$	1,443	$	3,903	$	-	$	65	$	5,411
	Provision for credit losses (benefit)		116		(231)		-		(17)		(132)
Ending balance - unfunded commitments [1]		$	1,559	$	3,672	$	-	$	48	$	5,279
[1]	Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

For the quarter ended June 30, 2021
Popular, Inc.
(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses - loans:
Beginning balance		$	276,219	$	9,195	$	202,126	$	12,687	$	300,570	$	800,797
	Provision for credit losses (benefit)		(15,365)		1,675		(20,197)		5,257		11,130		(17,500)
	Initial allowance for credit losses - PCD Loans		-		-		1,202		-		-		1,202
	Charge-offs		(2,725)		(523)		(5,047)		(1,135)		(19,740)		(29,170)
	Recoveries		13,015		909		4,535		742		11,260		30,461
Ending balance		$	271,144	$	11,256	$	182,619	$	17,551	$	303,220	$	785,790
Allowance for credit losses - unfunded commitments:
Beginning balance		$	5,356	$	4,148	$	-	$	-	$	65	$	9,569
	Provision for credit losses (benefit)		(545)		929		-		-		(17)		367
Ending balance - unfunded commitments [1]		$	4,811	$	5,077	$	-	$	-	$	48	$	9,936
[1]	Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

For the six months ended June 30, 2021
Puerto Rico
(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses - loans:
Beginning balance		$	225,323	$	4,871	$	195,557	$	16,863	$	297,136	$	739,750
	Provision for credit losses (benefit)		(49,850)		1,787		(22,069)		1,199		6,469		(62,464)
	Initial allowance for credit losses - PCD Loans		-		-		2,558		-		-		2,558
	Charge-offs		(4,918)		(6,619)		(15,428)		(2,193)		(41,395)		(70,553)
	Recoveries		16,229		1,181		6,190		1,682		27,280		52,562
Ending balance - loans		$	186,784	$	1,220	$	166,808	$	17,551	$	289,490	$	661,853
Allowance for credit losses - unfunded commitments:
Beginning balance		$	4,913	$	4,610	$	-	$	-	$	-	$	9,523
	Provision for credit losses (benefit)		(1,661)		(3,205)		-		-		-		(4,866)
Ending balance - unfunded commitments [1]		$	3,252	$	1,405	$	-	$	-	$	-	$	4,657
[1]	Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

For the six months ended June 30, 2021
Popular U.S.
(In thousands)		Commercial		Construction		Mortgage		Consumer		Total
Allowance for credit losses - loans:
Beginning balance		$	108,057	$	9,366	$	20,159	$	18,918	$	156,500
	Provision for credit losses (benefit)		(24,094)		763		(4,851)		(2,633)		(30,815)
	Charge-offs		(1,073)		(523)		(1)		(5,630)		(7,227)
	Recoveries		1,470		430		504		3,075		5,479
Ending balance - loans		$	84,360	$	10,036	$	15,811	$	13,730	$	123,937
Allowance for credit losses - unfunded commitments:
Beginning balance		$	1,753	$	4,469	$	-	$	106	$	6,328
	Provision for credit losses (benefit)		(194)		(797)		-		(58)		(1,049)
Ending balance - unfunded commitments [1]		$	1,559	$	3,672	$	-	$	48	$	5,279
[1]	Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

For the six months ended June 30, 2021
Popular, Inc.
(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses - loans:
Beginning balance		$	333,380	$	14,237	$	215,716	$	16,863	$	316,054	$	896,250
	Provision for credit losses (benefit)		(73,944)		2,550		(26,920)		1,199		3,836		(93,279)
	Initial allowance for credit losses - PCD Loans		-		-		2,558		-		-		2,558
	Charge-offs		(5,991)		(7,142)		(15,429)		(2,193)		(47,025)		(77,780)
	Recoveries		17,699		1,611		6,694		1,682		30,355		58,041
Ending balance - loans		$	271,144	$	11,256	$	182,619	$	17,551	$	303,220	$	785,790
Allowance for credit losses - unfunded commitments:
Beginning balance		$	6,666	$	9,079	$	-	$	-	$	106	$	15,851
	Provision for credit losses (benefit)		(1,855)		(4,002)		-		-		(58)		(5,915)
Ending balance - unfunded commitments [1]		$	4,811	$	5,077	$	-	$	-	$	48	$	9,936
[1]	Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

For the quarter ended June 30, 2020
Puerto Rico
(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses - loans:
Beginning balance		$	207,850	$	419	$	202,800	$	12,589	$	333,277	$	756,935
	Provision for credit losses (benefit)		8,174		(260)		3,437		3,894		45,178		60,423
	Initial allowance for credit losses - PCD Loans		-		-		567		-		-		567
	Charge-offs		(2,746)		-		(9,417)		(3,949)		(57,902)		(74,014)
	Recoveries		1,649		195		1,863		559		7,605		11,871
Ending balance		$	214,927	$	354	$	199,250	$	13,093	$	328,158	$	755,782
Allowance for credit losses - unfunded commitments:
Beginning balance		$	1,977	$	178	$	-	$	-	$	-	$	2,155
	Provision for credit losses (benefit)		297		(33)		-		-		-		264
Ending balance - unfunded commitments [1]		$	2,274	$	145	$	-	$	-	$	-	$	2,419
[1]	Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

For the quarter ended June 30, 2020
Popular U.S.
(In thousands)		Commercial		Construction		Mortgage		Consumer		Total
Allowance for credit losses - loans:
Beginning balance		$	99,167	$	2,229	$	24,287	$	37,098	$	162,781
	Provision for credit losses (benefit)		2,088		3,876		(1,319)		(1,964)		2,681
	Charge-offs		(391)		-		(7)		(4,873)		(5,271)
	Recoveries		1,175		-		26		1,260		2,461
Ending balance - loans		$	102,039	$	6,105	$	22,987	$	31,521	$	162,652
Allowance for credit losses - unfunded commitments:
Beginning balance		$	1,111	$	1,141	$	-	$	59	$	2,311
	Provision for credit losses		455		1,530		-		2		1,987
Ending balance - unfunded commitments [1]			1,566		2,671		-		61		4,298
[1]	Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statement of Financial Condition.

For the quarter ended June 30, 2020
Popular, Inc.
(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses - loans:
Beginning balance		$	307,017	$	2,648	$	227,087	$	12,589	$	370,375	$	919,716
	Provision for credit losses		10,262		3,616		2,118		3,894		43,214		63,104
	Initial allowance for credit losses - PCD Loans		-		-		567		-		-		567
	Charge-offs		(3,137)		-		(9,424)		(3,949)		(62,775)		(79,285)
	Recoveries		2,824		195		1,889		559		8,865		14,332
Ending balance		$	316,966	$	6,459	$	222,237	$	13,093	$	359,679	$	918,434
Allowance for credit losses - loans:
Beginning balance		$	3,088	$	1,319	$	-	$	-	$	59	$	4,466
	Provision for credit losses		752		1,497		-		-		2		2,251
Ending balance - unfunded commitments [1]		$	3,840	$	2,816	$	-	$	-	$	61	$	6,717
[1]	Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

For the six months ended June 30, 2020
Puerto Rico
(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses - loans:
Beginning balance		$	131,063	$	574	$	116,281	$	10,768	$	173,965	$	432,651
	Impact of adopting CECL		62,393		115		86,081		(713)		122,492		270,368
	Provision for credit losses (benefit)		23,148		(549)		8,984		9,735		132,109		173,427
	Initial allowance for credit losses - PCD Loans		-		-		996		-		-		996
	Charge-offs		(5,740)		-		(17,723)		(7,724)		(115,986)		(147,173)
	Recoveries		4,063		214		4,631		1,027		15,578		25,513
Ending balance - loans		$	214,927	$	354	$	199,250	$	13,093	$	328,158	$	755,782
Allowance for credit losses - unfunded commitments:
Beginning balance		$	678	$	294	$	-	$	-	$	7,467	$	8,439
	Impact of adopting CECL		1,158		(185)		-		-		(7,467)		(6,494)
	Provision for credit losses		438		36		-		-		-		474
Ending balance - unfunded commitments [1]		$	2,274	$	145	$	-	$	-	$	-	$	2,419
[1]	Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

For the six months ended June 30, 2020
Popular U.S.
(In thousands)		Commercial		Construction		Mortgage		Consumer		Total
Allowance for credit losses - loans:
Beginning balance		$	16,557	$	4,266	$	4,827	$	19,407	$	45,057
	Impact of adopting CECL		29,537		(3,038)		10,431		7,809		44,739
	Provision for credit losses		55,160		4,722		7,709		11,081		78,672
	Charge-offs		(968)		-		(16)		(9,811)		(10,795)
	Recoveries		1,753		155		36		3,035		4,979
Ending balance - loans		$	102,039	$	6,105	$	22,987	$	31,521	$	162,652
Allowance for credit losses - unfunded commitments:
Beginning balance		$	152	$	125	$	-	$	1	$	278
	Impact of adopting CECL		453		582		-		(1)		1,034
	Provision for credit losses		961		1,964		-		61		2,986
Ending balance - unfunded commitments [1]		$	1,566	$	2,671	$	-	$	61	$	4,298
[1]	Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

For the six months ended June 30, 2020
Popular, Inc.
(In thousands)		Commercial		Construction		Mortgage		Leasing		Consumer		Total
Allowance for credit losses - loans:
Beginning balance		$	147,620	$	4,840	$	121,108	$	10,768	$	193,372	$	477,708
	Impact of adopting CECL		91,930		(2,923)		96,512		(713)		130,301		315,107
	Provision for credit losses		78,308		4,173		16,693		9,735		143,190		252,099
	Initial allowance for credit losses - PCD Loans		-		-		996		-		-		996
	Charge-offs		(6,708)		-		(17,739)		(7,724)		(125,797)		(157,968)
	Recoveries		5,816		369		4,667		1,027		18,613		30,492
Ending balance - loans		$	316,966	$	6,459	$	222,237	$	13,093	$	359,679	$	918,434
Allowance for credit losses - unfunded commitments:
Beginning balance		$	830	$	419	$	-	$	-	$	7,468	$	8,717
	Impact of adopting CECL		1,611		397		-		-		(7,468)		(5,460)
	Provision for credit losses		1,399		2,000		-		-		61		3,460
Ending balance - unfunded commitments [1]		$	3,840	$	2,816	$	-	$	-	$	61	$	6,717
[1]	Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

Modifications

A modification of a loan constitutes a troubled debt restructuring when a borrower is experiencing financial difficulty and the modification constitutes a concession. For a summary of the accounting policy related to troubled debt restructurings (“TDRs”), refer to the Summary of Significant Accounting Policies included in Note 2 to the 2020 Form 10-K.

The outstanding balance of loans classified as TDRs amounted to $1.7 billion at June 30, 2021 (December 31, 2020 - $1.7 billion). The amount of outstanding commitments to lend additional funds to debtors owing receivables whose terms have been modified in TDRs amounted to $7 million related to the commercial loan portfolio at June 30, 2021 (December 31, 2020 - $14 million).

In response to the COVID-19 pandemic, the Corporation implemented a relief program in March 2020 to work with eligible customers in mortgage, personal loans, credit cards, auto loans and leases and certain commercial credit facilities, comprised mainly of payment deferrals of up to six months, subject to certain terms and conditions. In addition, certain participating clients impacted by the seismic activity in the Southern region of the island also benefitted from other loan payment moratoriums offered by the Corporation since mid-January 2020. These loan modifications do not affect the asset quality measures as the deferred payments are not deemed to be delinquent and the Corporation continues to accrue interest on these loans. The Puerto Rico Legislative Assembly enacted legislation in April 2020 that required financial institutions to offer through June 2020 moratoriums on consumer financial products to clients impacted by the COVID-19 pandemic and extended relief with respect to mortgage products through August 2020. Additionally, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), signed by the President of the United States as part of an economic stimulus package, provides relief related to U.S. GAAP requirements for loan modifications related to COVID-19 relief measures. This relief was subsequently extended until the earlier of January 1, 2022 or 60 days after the national COVID-19 emergency ends. In addition, the Federal Reserve, along with other U.S. banking regulators, also issued interagency guidance to financial institutions that offers some practical expedients for evaluating whether loan modifications that occur in response to the COVID-19 pandemic are TDRs. According to the interagency guidance, COVID-19 related short-term modifications (i.e., six months or less) granted to consumer or commercial loans that were current as of the date of the loan modification are not TDRs, since the lender can conclude that the borrower is current on their loan and thus not experiencing financial difficulties and furthermore the period of the deferral granted does not represent a more than insignificant concession on the part of the lender. In addition, a modification or deferral program that is mandated by the federal government or a state government (e.g., a state program that requires all institutions within that state to suspend mortgage payments for a specified period) does not represent a TDR. As of June 30, 2021, approximately $34 million of loan payment moratoriums granted under the COVID-19 relief program have been classified as TDRs. In making this determination, the Corporation considered the criteria of whether the borrower was in financial difficulty at the time of the deferral and whether the deferral period was more than insignificant.

The following table presents the outstanding balance of loans classified as TDRs according to their accruing status and the related allowance at June 30, 2021 and December 31, 2020.

	June 30, 2021								December 31, 2020
(In thousands)		Accruing		Non-Accruing		Total		Related Allowance		Accruing		Non-Accruing		Total		Related Allowance
Loans held-in-portfolio:
Commercial	$	247,125	$	100,449	$	347,574	$	25,707	$	259,246	$	103,551	$	362,797	$	15,236
Construction		-		14,877		14,877		-		-		21,497		21,497		4,397
Mortgage[1]		1,118,845		117,755		1,236,600		65,044		1,060,193		135,772		1,195,965		71,018
Leases		497		87		584		101		392		218		610		150
Consumer		70,556		11,176		81,732		19,433		74,707		12,792		87,499		22,508
Loans held-in-portfolio	$	1,437,023	$	244,344	$	1,681,367	$	110,285	$	1,394,538	$	273,830	$	1,668,368	$	113,309
[1] At June 30, 2021, accruing mortgage loan TDRs include $691 million guaranteed by U.S. sponsored entities at BPPR, compared to $655 million at December 31, 2020.

The following tables present the loan count by type of modification for those loans modified in a TDR during the quarters and six months ended June 30, 2021 and 2020. Loans modified as TDRs for the U.S. operations are considered insignificant to the Corporation.

	Popular, Inc.
	For the quarter ended June 30, 2021				For the six months ended June 30, 2021
	Reduction in interest rate	Extension of maturity date	Combination of reduction in interest rate and extension of maturity date	Other	Reduction in interest rate	Extension of maturity date	Combination of reduction in interest rate and extension of maturity date	Other
Commercial multi-family	-	-	1	-	-	1	1	-
Commercial real estate non-owner occupied	-	-	-	-	-	9	-	-
Commercial real estate owner occupied	1	3	3	2	3	23	3	2
Commercial and industrial	1	-	-	6	1	8	-	6
Mortgage	14	39	458	-	22	79	818	-
Leasing	-	-	-	-	-	-	1	-
Consumer:
Credit cards	37	-	1	13	89	-	1	27
HELOCs	-	1	-	-	-	1	1	-
Personal	59	61	-	2	120	63	1	2
Auto	-	1	-	-	-	2	2	-
Other	2	-	-	-	6	-	-	-
Total	114	105	463	23	241	186	828	37

	Popular, Inc.
	For the quarter ended June 30, 2020				For the six months ended June 30, 2020
	Reduction in interest rate	Extension of maturity date	Combination of reduction in interest rate and extension of maturity date	Other	Reduction in interest rate	Extension of maturity date	Combination of reduction in interest rate and extension of maturity date	Other
Commercial multi-family	-	1	-	-	-	1	-	-
Commercial real estate non-owner occupied	-	1	-	-	-	2	-	1
Commercial real estate owner occupied	-	13	-	-	-	19	-	-
Commercial and industrial	-	15	-	-	1	26	-	-
Mortgage	-	-	14	72	2	26	161	72
Leasing	-	-	-	11	-	-	3	11
Consumer:
Credit cards	404	-	-	52	552	-	-	65
HELOCs	-	1	-	-	-	1	1	-
Personal	78	1	-	-	178	2	-	1
Auto	-	-	-	8	-	1	2	8
Other	1	-	-	-	2	-	-	-
Total	483	32	14	143	735	78	167	158

The following tables present by class, quantitative information related to loans modified as TDRs during the quarters and six months ended June 30, 2021 and 2020.

For the quarter ended June 30, 2021
(Dollars in thousands)	Loan count	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Increase (decrease) in the allowance for loan losses as a result of modification
Commercial multi-family	1	$	159	$	125	$	22
Commercial real estate owner occupied	9		51,050		50,472		564
Commercial and industrial	7		491		489		57
Mortgage	511		58,094		61,522		2,105
Consumer:
Credit cards	51		730		628		7
HELOCs	1		113		112		26
Personal	122		1,620		1,619		328
Auto	1		16		16		5
Other	2		5		5		1
Total	705	$	112,278	$	114,988	$	3,115

For the quarter ended June 30, 2020
(Dollars in thousands)	Loan count	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Increase (decrease) in the allowance for loan losses as a result of modification
Commercial multi-family	1	$	993	$	976	$	(19)
Commercial real estate non-owner occupied	1		179		179		-
Commercial real estate owner occupied	13		2,593		2,574		1
Commercial and industrial	15		849		845		2
Mortgage	86		14,448		8,954		833
Leasing	11		232		232		-
Consumer:
Credit cards	456		4,200		4,181		178
HELOCs	1		37		33		8
Personal	79		1,160		1,160		194
Auto	8		60		60		-
Other	1		4		4		1
Total	672	$	24,755	$	19,198	$	1,198

Popular, Inc.
For the six months ended June 30, 2021
(Dollars in thousands)	Loan count	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Increase (decrease) in the allowance for credit losses as a result of modification
Commercial multi-family	2	$	246	$	211	$	26
Commercial real estate non-owner occupied	9		3,295		3,281		141
Commercial real estate owner occupied	31		80,800		79,956		1,136
Commercial and industrial	15		713		707		65
Mortgage	919		105,748		111,251		3,151
Leasing	1		32		32		4
Consumer:
Credit cards	117		1,554		1,482		34
HELOCs	2		176		228		54
Personal	186		2,682		2,681		632
Auto	4		64		69		15
Other	6		11		11		2
Total	1,292	$	195,321	$	199,909	$	5,260

Popular, Inc.
For the six months ended June 30, 2020
(Dollars in thousands)	Loan count	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Increase (decrease) in the allowance for credit losses as a result of modification
Commercial multi-family	1	$	993	$	976	$	(19)
Commercial real estate non-owner occupied	3		3,418		3,418		(748)
Commercial real estate owner occupied	19		6,499		6,476		106
Commercial and industrial	27		1,784		1,778		25
Mortgage	261		34,763		26,894		2,845
Leasing	14		326		327		6
Consumer:
Credit cards	617		5,460		5,454		262
HELOCs	2		369		298		862
Personal	181		3,021		3,019		491
Auto	11		146		147		12
Other	2		24		24		6
Total	1,138	$	56,803	$	48,811	$	3,848

The following tables present, by class, TDRs that were subject to payment default and that had been modified as a TDR during the twelve months preceding the default date. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or charged-off, whichever occurs first. The recorded investment as of period end is inclusive of all partial paydowns and charge-offs since the modification date. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported.

Popular, Inc.
	Defaulted during the quarter ended June 30, 2021			Defaulted during the six months ended June 30, 2021
(Dollars in thousands)	Loan count		Recorded investment as of first default date	Loan count		Recorded investment as of first default date
Commercial real estate non-owner occupied	4	$	8,421	4	$	8,421
Commercial real estate owner occupied	-		-	2		3,754
Commercial and industrial	3		93	5		317
Mortgage	24		3,279	47		5,011
Consumer:
Credit cards	23		280	60		751
Personal	11		212	14		472
Total	65	$	12,285	132	$	18,726

Popular, Inc.
	Defaulted during the quarter ended June 30, 2020			Defaulted during the six months ended June 30, 2020
(Dollars in thousands)	Loan count		Recorded investment as of first default date	Loan count		Recorded investment as of first default date
Commercial real estate non-owner occupied	1	$	1,700	1	$	1,700
Commercial real estate owner occupied	3		603	5		846
Commercial and industrial	1		57	3		97
Mortgage	101		9,582	148		16,089
Consumer:
Credit cards	82		652	123		866
HELOCs	1		31	1		31
Personal	48		579	83		1,364
Other	1		1	2		1
Total	238	$	13,205	366	$	20,994

Commercial, consumer and mortgage loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, the ACL may be increased or partial charge-offs may be taken to further write-down the carrying value of the loan.

Credit Quality

The risk rating system provides for the assignment of ratings at the obligor level based on the financial condition of the borrower. The risk rating analysis process is performed at least once a year or more frequently if events or conditions change which may deteriorate the credit quality. In the case of consumer and mortgage loans, these loans are classified considering their delinquency status at the end of the reporting period.

The following tables present the amortized cost basis, net of unearned income, of loans held-in-portfolio based on the Corporation’s assignment of obligor risk ratings as defined at June 30, 2021 and December 31, 2020 by vintage year. For the definitions of the obligor risk ratings, refer to the Credit Quality section of Note 8 to the Consolidated Financial Statements included in the Corporation’s Form 10-K for the year ended December 31, 2020.

June 30, 2021
				Term Loans													Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis
				Amortized Cost Basis by Origination Year
(In thousands)					2021		2020		2019		2018		2017		Prior Years						Total
Puerto Rico
	Commercial:
		Commercial multi-family
			Watch	$	-	$	-	$	-	$	-	$	-	$	550	$	-	$	-	$	550
			Special mention		-		-		-		-		-		4,036		-		-		4,036
			Substandard		-		-		-		-		-		1,294		100		-		1,394
			Pass		2,830		21,454		35,982		25,722		2,086		57,521		208		-		145,803
		Total commercial multi-family		$	2,830	$	21,454	$	35,982	$	25,722	$	2,086	$	63,401	$	308	$	-	$	151,783
		Commercial real estate non-owner occupied
			Watch	$	12,128	$	230,138	$	72,070	$	26,805	$	40,235	$	250,211	$	1,937	$	-	$	633,524
			Special Mention		18,447		-		26,647		123,317		31,469		34,444		-		-		234,324
			Substandard		28,179		41,886		50,426		26,417		2,830		126,363		-		-		276,101
			Pass		60,855		88,822		27,331		22,430		46,986		598,086		4,970		-		849,480
		Total commercial real estate non-owner occupied		$	119,609	$	360,846	$	176,474	$	198,969	$	121,520	$	1,009,104	$	6,907	$	-	$	1,993,429
		Commercial real estate owner occupied
			Watch	$	4,906	$	7,138	$	15,301	$	11,824	$	4,824	$	130,351	$	150	$	-	$	174,494
			Special Mention		49,375		1,239		6,529		233		8,365		110,290		-		-		176,031
			Substandard		2,820		1,308		1,874		36,635		2,366		148,660		-		-		193,663
			Doubtful		-		-		-		-		-		1,155		-		-		1,155
			Pass		69,677		207,787		46,589		30,253		58,539		494,212		12,029		-		919,086
		Total commercial real estate owner occupied		$	126,778	$	217,472	$	70,293	$	78,945	$	74,094	$	884,668	$	12,179	$	-	$	1,464,429

	Commercial and industrial
		Watch	$	196,174	$	29,332	$	79,155	$	128,884	$	43,317	$	220,678	$	138,827	$	-	$	836,367
		Special Mention		17,466		14,064		14,752		42,942		55,802		53,366		22,998		-		221,390
		Substandard		18,203		8,564		3,627		34,648		28,735		56,905		58,818		-		209,500
		Doubtful		-		-		-		-		-		66		-		-		66
		Loss		-		-		-		-		-		-		8		-		8
		Pass		895,255		535,724		360,587		102,625		140,673		425,330		293,873		-		2,754,067
	Total commercial and industrial		$	1,127,098	$	587,684	$	458,121	$	309,099	$	268,527	$	756,345	$	514,524	$	-	$	4,021,398
Construction
		Watch	$	-	$	-	$	4,202	$	-	$	-	$	-	$	-	$	-	$	4,202
		Substandard		-		-		-		-		14,877		-		-		-		14,877
		Pass		10,047		34,488		19,295		3,316		35,663		-		21,059		-		123,868
Total construction			$	10,047	$	34,488	$	23,497	$	3,316	$	50,540	$	-	$	21,059	$	-	$	142,947
Mortgage
		Substandard	$	-	$	2,293	$	1,560	$	1,699	$	2,796	$	141,652	$	-	$	-	$	150,000
		Pass		174,183		252,640		208,348		149,696		200,787		5,379,503		-		-		6,365,157
Total mortgage			$	174,183	$	254,933	$	209,908	$	151,395	$	203,583	$	5,521,155	$	-	$	-	$	6,515,157
Leasing
		Substandard	$	-	$	198	$	1,032	$	369	$	359	$	313	$	-	$	-	$	2,271
		Loss		-		-		-		-		-		15		-		-		15
		Pass		347,851		380,635		268,577		168,996		84,270		45,313		-		-		1,295,642
Total leasing			$	347,851	$	380,833	$	269,609	$	169,365	$	84,629	$	45,641	$	-	$	-	$	1,297,928

June 30, 2021
				Term Loans													Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis
				Amortized Cost Basis by Origination Year
(In thousands)					2021		2020		2019		2018		2017		Prior Years						Total
Puerto Rico
	Consumer:
		Credit cards
			Substandard	$	-	$	-	$	-	$	-	$	-	$	-	$	8,021	$	-	$	8,021
			Pass		-		-		-		-		-		-		872,109		-		872,109
	Total credit cards			$	-	$	-	$	-	$	-	$	-	$	-	$	880,130	$	-	$	880,130
		HELOCs
			Pass	$	-	$	-	$	-	$	-	$	-	$	-	$	3,489	$	-	$	3,489
	Total HELOCs			$	-	$	-	$	-	$	-	$	-	$	-	$	3,489	$	-	$	3,489
		Personal
			Substandard	$	62	$	710	$	1,672	$	1,035	$	770	$	18,331	$	-	$	1,280	$	23,860
			Loss		-		13		1		-		-		-		-		-		14
			Pass		266,327		263,734		311,100		125,243		74,084		157,658		1,977		41,295		1,241,418
	Total Personal			$	266,389	$	264,457	$	312,773	$	126,278	$	74,854	$	175,989	$	1,977	$	42,575	$	1,265,292
		Auto
			Substandard	$	267	$	3,804	$	6,401	$	4,404	$	2,084	$	1,826	$	-	$	-	$	18,786
			Loss		-		46		10		-		-		-		-		-		56
			Pass		679,718		929,832		757,510		519,933		235,230		147,962		-		-		3,270,185
	Total Auto			$	679,985	$	933,682	$	763,921	$	524,337	$	237,314	$	149,788	$	-	$	-	$	3,289,027
		Other consumer
			Substandard	$	-	$	120	$	-	$	337	$	-	$	122	$	900	$	-	$	1,479
			Loss		-		-		-		799		239		490		11,281		-		12,809
			Pass		13,616		12,441		12,275		7,450		4,232		1,600		57,124		-		108,738
	Total Other consumer			$	13,616	$	12,561	$	12,275	$	8,586	$	4,471	$	2,212	$	69,305	$	-	$	123,026
Total Puerto Rico				$	2,868,386	$	3,068,410	$	2,332,853	$	1,596,012	$	1,121,618	$	8,608,303	$	1,509,878	$	42,575	$	21,148,035

June 30, 2021
				Term Loans													Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis
				Amortized Cost Basis by Origination Year
(In thousands)					2021		2020		2019		2018		2017		Prior Years						Total
Popular U.S.
	Commercial:
		Commercial multi-family
			Watch	$	-	$	41,841	$	33,914	$	46,483	$	48,047	$	75,464	$	-	$	-	$	245,749
			Special mention		-		15,500		11,249		4,229		17,725		55,412		-		-		104,115
			Substandard		-		-		92,782		25,090		-		30,612		-		-		148,484
			Pass		126,692		259,714		239,599		150,114		59,495		396,902		8,189		-		1,240,705
		Total commercial multi-family		$	126,692	$	317,055	$	377,544	$	225,916	$	125,267	$	558,390	$	8,189	$	-	$	1,739,053
		Commercial real estate non-owner occupied
			Watch	$	-	$	8,593	$	25,904	$	37,153	$	41,440	$	140,278	$	972	$	-	$	254,340
			Special Mention		-		-		3,247		9,894		9,276		17,701		500		-		40,618
			Substandard		-		764		18,512		36,343		10,747		84,207		-		-		150,573
			Pass		178,613		380,906		230,063		259,776		258,664		371,833		6,848		-		1,686,703
		Total commercial real estate non-owner occupied		$	178,613	$	390,263	$	277,726	$	343,166	$	320,127	$	614,019	$	8,320	$	-	$	2,132,234
		Commercial real estate owner occupied
			Watch	$	-	$	242	$	7,925	$	7,136	$	1,913	$	19,345	$	4,222	$	-	$	40,783
			Special Mention		-		-		-		-		-		2,456		-		-		2,456
			Substandard		-		-		1,161		2,913		-		21,082		-		-		25,156
			Pass		38,538		47,387		44,828		36,901		26,558		71,713		5,864		-		271,789
		Total commercial real estate owner occupied		$	38,538	$	47,629	$	53,914	$	46,950	$	28,471	$	114,596	$	10,086	$	-	$	340,184

	Commercial and industrial
		Watch	$	1,856	$	13,439	$	1,473	$	-	$	9	$	7,853	$	6,704	$	-	$	31,334
		Special Mention		2,415		10,627		-		-		97		8,416		184		-		21,739
		Substandard		521		270		5,717		-		-		3,754		3,030		-		13,292
		Pass		156,944		367,910		193,045		186,850		126,472		375,668		122,168		-		1,529,057
	Total commercial and industrial		$	161,736	$	392,246	$	200,235	$	186,850	$	126,578	$	395,691	$	132,086	$	-	$	1,595,422
Construction
		Watch	$	-	$	15,050	$	22,131	$	36,270	$	52,837	$	2,005	$	-	$	-	$	128,293
		Special Mention		-		-		-		-		-		13,413		-		-		13,413
		Substandard		-		-		348		21,792		-		9,786		-		-		31,926
		Pass		30,074		130,878		231,564		79,932		63,662		12,424		-		-		548,534
Total construction			$	30,074	$	145,928	$	254,043	$	137,994	$	116,499	$	37,628	$	-	$	-	$	722,166
Mortgage
		Substandard	$	-	$	467	$	2,047	$	1,163	$	-	$	9,645	$	-	$	-	$	13,322
		Pass		212,449		294,712		239,685		78,085		8,317		316,751		-		-		1,149,999
Total mortgage			$	212,449	$	295,179	$	241,732	$	79,248	$	8,317	$	326,396	$	-	$	-	$	1,163,321

June 30, 2021
				Term Loans													Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis
				Amortized Cost Basis by Origination Year
(In thousands)					2021		2020		2019		2018		2017		Prior Years						Total
Popular U.S.
	Consumer:
		Credit cards
			Pass	$	-	$	-	$	-	$	-	$	-	$	-	$	31	$	-	$	31
	Total credit cards			$	-	$	-	$	-	$	-	$	-	$	-	$	31	$	-	$	31
		HELOCs
			Substandard	$	-	$	-	$	-	$	-	$	-	$	3,708	$	-	$	1,196	$	4,904
			Loss		-		-		-		-		-		365		-		1,108		1,473
			Pass		-		-		-		-		-		13,390		39,528		22,643		75,561
	Total HELOCs			$	-	$	-	$	-	$	-	$	-	$	17,463	$	39,528	$	24,947	$	81,938
		Personal
			Substandard	$	-	$	76	$	335	$	131	$	8	$	154	$	1	$	-	$	705
			Loss		-		-		34		22		4		67		-		-		127
			Pass		7,718		29,217		72,402		13,980		5,774		6,938		136		-		136,165
	Total Personal			$	7,718	$	29,293	$	72,771	$	14,133	$	5,786	$	7,159	$	137	$	-	$	136,997
		Other consumer
			Pass	$	-	$	-	$	-	$	-	$	-	$	-	$	3,236	$	-	$	3,236
	Total Other consumer			$	-	$	-	$	-	$	-	$	-	$	-	$	3,236	$	-	$	3,236
Total Popular U.S.				$	755,820	$	1,617,593	$	1,477,965	$	1,034,257	$	731,045	$	2,071,342	$	201,613	$	24,947	$	7,914,582

June 30, 2021
				Term Loans													Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis
				Amortized Cost Basis by Origination Year
(In thousands)					2021		2020		2019		2018		2017		Prior Years						Total
Popular, Inc.
	Commercial:
		Commercial multi-family
			Watch	$	-	$	41,841	$	33,914	$	46,483	$	48,047	$	76,014	$	-	$	-	$	246,299
			Special mention		-		15,500		11,249		4,229		17,725		59,448		-		-		108,151
			Substandard		-		-		92,782		25,090		-		31,906		100		-		149,878
			Pass		129,522		281,168		275,581		175,836		61,581		454,423		8,397		-		1,386,508
		Total commercial multi-family		$	129,522	$	338,509	$	413,526	$	251,638	$	127,353	$	621,791	$	8,497	$	-	$	1,890,836
		Commercial real estate non-owner occupied
			Watch	$	12,128	$	238,731	$	97,974	$	63,958	$	81,675	$	390,489	$	2,909	$	-	$	887,864
			Special Mention		18,447		-		29,894		133,211		40,745		52,145		500		-		274,942
			Substandard		28,179		42,650		68,938		62,760		13,577		210,570		-		-		426,674
			Pass		239,468		469,728		257,394		282,206		305,650		969,919		11,818		-		2,536,183
		Total commercial real estate non-owner occupied		$	298,222	$	751,109	$	454,200	$	542,135	$	441,647	$	1,623,123	$	15,227	$	-	$	4,125,663
		Commercial real estate owner occupied
			Watch	$	4,906	$	7,380	$	23,226	$	18,960	$	6,737	$	149,696	$	4,372	$	-	$	215,277
			Special Mention		49,375		1,239		6,529		233		8,365		112,746		-		-		178,487
			Substandard		2,820		1,308		3,035		39,548		2,366		169,742		-		-		218,819
			Doubtful		-		-		-		-		-		1,155		-		-		1,155
			Pass		108,215		255,174		91,417		67,154		85,097		565,925		17,893		-		1,190,875
		Total commercial real estate owner occupied		$	165,316	$	265,101	$	124,207	$	125,895	$	102,565	$	999,264	$	22,265	$	-	$	1,804,613
		Commercial and industrial
			Watch	$	198,030	$	42,771	$	80,628	$	128,884	$	43,326	$	228,531	$	145,531	$	-	$	867,701
			Special Mention		19,881		24,691		14,752		42,942		55,899		61,782		23,182		-		243,129
			Substandard		18,724		8,834		9,344		34,648		28,735		60,659		61,848		-		222,792
			Doubtful		-		-		-		-		-		66		-		-		66
			Loss		-		-		-		-		-		-		8		-		8
			Pass		1,052,199		903,634		553,632		289,475		267,145		800,998		416,041		-		4,283,124
		Total commercial and industrial		$	1,288,834	$	979,930	$	658,356	$	495,949	$	395,105	$	1,152,036	$	646,610	$	-	$	5,616,820

June 30, 2021
			Term Loans													Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis
			Amortized Cost Basis by Origination Year
(In thousands)				2021		2020		2019		2018		2017		Prior Years						Total
Popular, Inc.
	Construction
		Watch	$	-	$	15,050	$	26,333	$	36,270	$	52,837	$	2,005	$	-	$	-	$	132,495
		Special Mention		-		-		-		-		-		13,413		-		-		13,413
		Substandard		-		-		348		21,792		14,877		9,786		-		-		46,803
		Pass		40,121		165,366		250,859		83,248		99,325		12,424		21,059		-		672,402
	Total construction		$	40,121	$	180,416	$	277,540	$	141,310	$	167,039	$	37,628	$	21,059	$	-	$	865,113
	Mortgage
		Substandard	$	-	$	2,760	$	3,607	$	2,862	$	2,796	$	151,297	$	-	$	-	$	163,322
		Pass		386,632		547,352		448,033		227,781		209,104		5,696,254		-		-		7,515,156
	Total mortgage		$	386,632	$	550,112	$	451,640	$	230,643	$	211,900	$	5,847,551	$	-	$	-	$	7,678,478
	Leasing
		Substandard	$	-	$	198	$	1,032	$	369	$	359	$	313	$	-	$	-	$	2,271
		Loss		-		-		-		-		-		15		-		-		15
		Pass		347,851		380,635		268,577		168,996		84,270		45,313		-		-		1,295,642
	Total leasing		$	347,851	$	380,833	$	269,609	$	169,365	$	84,629	$	45,641	$	-	$	-	$	1,297,928

June 30, 2021
				Term Loans													Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis
				Amortized Cost Basis by Origination Year
(In thousands)					2021		2020		2019		2018		2017		Prior Years						Total
Popular, Inc.
	Consumer:
		Credit cards
			Substandard	$	-	$	-	$	-	$	-	$	-	$	-	$	8,021	$	-	$	8,021
			Pass		-		-		-		-		-		-		872,140		-		872,140
	Total credit cards			$	-	$	-	$	-	$	-	$	-	$	-	$	880,161	$	-	$	880,161
		HELOCs
			Substandard	$	-	$	-	$	-	$	-	$	-	$	3,708	$	-	$	1,196	$	4,904
			Loss		-		-		-		-		-		365		-		1,108		1,473
			Pass		-		-		-		-		-		13,390		43,017		22,643		79,050
	Total HELOCs			$	-	$	-	$	-	$	-	$	-	$	17,463	$	43,017	$	24,947	$	85,427
		Personal
			Substandard	$	62	$	786	$	2,007	$	1,166	$	778	$	18,485	$	1	$	1,280	$	24,565
			Loss		-		13		35		22		4		67		-		-		141
			Pass		274,045		292,951		383,502		139,223		79,858		164,596		2,113		41,295		1,377,583
	Total Personal			$	274,107	$	293,750	$	385,544	$	140,411	$	80,640	$	183,148	$	2,114	$	42,575	$	1,402,289
		Auto
			Substandard	$	267	$	3,804	$	6,401	$	4,404	$	2,084	$	1,826	$	-	$	-	$	18,786
			Loss		-		46		10		-		-		-		-		-		56
			Pass		679,718		929,832		757,510		519,933		235,230		147,962		-		-		3,270,185
	Total Auto			$	679,985	$	933,682	$	763,921	$	524,337	$	237,314	$	149,788	$	-	$	-	$	3,289,027
		Other consumer
			Substandard	$	-	$	120	$	-	$	337	$	-	$	122	$	900	$	-	$	1,479
			Loss		-		-		-		799		239		490		11,281		-		12,809
			Pass		13,616		12,441		12,275		7,450		4,232		1,600		60,360		-		111,974
	Total Other consumer			$	13,616	$	12,561	$	12,275	$	8,586	$	4,471	$	2,212	$	72,541	$	-	$	126,262
Total Popular Inc.				$	3,624,206	$	4,686,003	$	3,810,818	$	2,630,269	$	1,852,663	$	10,679,645	$	1,711,491	$	67,522	$	29,062,617

December 31, 2020
				Term Loans													Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis
				Amortized Cost Basis by Origination Year
(In thousands)					2020		2019		2018		2017		2016		Prior Years						Total
Puerto Rico
	Commercial:
		Commercial multi-family
			Watch	$	-	$	-	$	-	$	-	$	-	$	460	$	-	$	-	$	460
			Special mention		-		-		-		-		-		4,160		-		-		4,160
			Substandard		-		-		-		-		-		400		100		-		500
			Pass		5,216		36,433		26,051		2,106		2,563		74,791		-		-		147,160
		Total commercial multi-family		$	5,216	$	36,433	$	26,051	$	2,106	$	2,563	$	79,811	$	100	$	-	$	152,280
		Commercial real estate non-owner occupied
			Watch	$	160,960	$	73,561	$	27,592	$	40,654	$	33,277	$	197,912	$	2,100	$	-	$	536,056
			Special Mention		-		26,331		124,560		29,711		19,895		62,839		836		-		264,172
			Substandard		43,399		74,303		26,799		4,932		29,974		130,218		95		-		309,720
			Pass		88,324		53,385		39,814		60,585		124,643		527,282		3,352		-		897,385
		Total commercial real estate non-owner occupied		$	292,683	$	227,580	$	218,765	$	135,882	$	207,789	$	918,251	$	6,383	$	-	$	2,007,333
		Commercial real estate owner occupied
			Watch	$	96,046	$	10,319	$	14,412	$	9,760	$	9,584	$	146,445	$	2,627	$	-	$	289,193
			Special Mention		850		6,638		249		6,571		282		172,078		-		-		186,668
			Substandard		1,774		2,181		37,686		1,878		27,094		145,193		-		-		215,806
			Doubtful		-		-		-		-		-		1,714		-		-		1,714
			Pass		204,840		54,274		31,917		57,854		128,392		417,376		10,861		-		905,514
		Total commercial real estate owner occupied		$	303,510	$	73,412	$	84,264	$	76,063	$	165,352	$	882,806	$	13,488	$	-	$	1,598,895

	Commercial and industrial
		Watch	$	131,556	$	77,821	$	182,776	$	40,318	$	63,968	$	267,856	$	243,335	$	-	$	1,007,630
		Special Mention		28,310		10,297		19,220		45,861		910		28,507		86,263		-		219,368
		Substandard		32,941		2,180		26,921		26,769		1,824		55,220		49,036		-		194,891
		Doubtful		-		67		-		1		-		54		1		-		123
		Loss		-		-		-		-		-		-		13		-		13
		Pass		1,181,399		492,778		119,709		168,174		105,442		218,716		520,865		-		2,807,083
	Total commercial and industrial		$	1,374,206	$	583,143	$	348,626	$	281,123	$	172,144	$	570,353	$	899,513	$	-	$	4,229,108
Construction
		Watch	$	-	$	105	$	4,895	$	-	$	-	$	-	$	960	$	-	$	5,960
		Substandard		-		-		-		21,497		-		-		-		-		21,497
		Pass		15,723		22,408		3,423		63,582		-		-		24,513		-		129,649
Total construction			$	15,723	$	22,513	$	8,318	$	85,079	$	-	$	-	$	25,473	$	-	$	157,106
Mortgage
		Substandard	$	754	$	903	$	1,172	$	3,129	$	4,374	$	159,359	$	-	$	-	$	169,691
		Pass		263,473		224,390		177,537		212,650		225,824		5,496,578		-		-		6,600,452
Total mortgage			$	264,227	$	225,293	$	178,709	$	215,779	$	230,198	$	5,655,937	$	-	$	-	$	6,770,143
Leasing
		Substandard	$	200	$	822	$	748	$	913	$	617	$	136	$	-	$	-	$	3,436
		Pass		480,964		315,022		209,340		109,708		63,955		15,236		-		-		1,194,225
Total leasing			$	481,164	$	315,844	$	210,088	$	110,621	$	64,572	$	15,372	$	-	$	-	$	1,197,661

December 31, 2020
				Term Loans													Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis
				Amortized Cost Basis by Origination Year
(In thousands)					2020		2019		2018		2017		2016		Prior Years						Total
Puerto Rico
	Consumer:
		Credit cards
			Substandard	$	-	$	-	$	-	$	-	$	-	$	-	$	12,798	$	-	$	12,798
			Pass		-		-		-		-		-		-		907,137		-		907,137
	Total credit cards			$	-	$	-	$	-	$	-	$	-	$	-	$	919,935	$	-	$	919,935
		HELOCs
			Pass	$	-	$	-	$	-	$	-	$	-	$	540	$	3,639	$	-	$	4,179
	Total HELOCs			$	-	$	-	$	-	$	-	$	-	$	540	$	3,639	$	-	$	4,179
		Personal
			Substandard	$	1,288	$	4,782	$	1,741	$	1,022	$	971	$	18,647	$	152	$	1,545	$	30,148
			Pass		323,170		413,973		168,142		99,768		57,319		137,693		2,144		45,390		1,247,599
	Total Personal			$	324,458	$	418,755	$	169,883	$	100,790	$	58,290	$	156,340	$	2,296	$	46,935	$	1,277,747
		Auto
			Substandard	$	1,975	$	6,029	$	3,612	$	1,760	$	1,369	$	990	$	-	$	-	$	15,735
			Pass		1,064,082		881,343		628,657		299,677		168,157		74,577		-		-		3,116,493
	Total Auto			$	1,066,057	$	887,372	$	632,269	$	301,437	$	169,526	$	75,567	$	-	$	-	$	3,132,228
		Other consumer
			Substandard	$	-	$	16	$	1,376	$	240	$	174	$	13,075	$	-	$	-	$	14,881
			Pass		16,912		15,698		13,158		4,966		2,828		3,785		54,437		-		111,784
	Total Other consumer			$	16,912	$	15,714	$	14,534	$	5,206	$	3,002	$	16,860	$	54,437	$	-	$	126,665
Total Puerto Rico				$	4,144,156	$	2,806,059	$	1,891,507	$	1,314,086	$	1,073,436	$	8,371,837	$	1,925,264	$	46,935	$	21,573,280

December 31, 2020
				Term Loans													Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis
				Amortized Cost Basis by Origination Year
(In thousands)					2020		2019		2018		2017		2016		Prior Years						Total
Popular U.S.
	Commercial:
		Commercial multi-family
			Watch	$	1,643	$	16,787	$	39,980	$	39,713	$	52,989	$	61,369	$	-	$	-	$	212,481
			Special mention		3,122		30,708		4,380		19,593		37,745		20,463		-		-		116,011
			Substandard		-		17,376		21,771		1,755		20,085		6,247		-		-		67,234
			Pass		326,008		289,652		163,812		100,555		132,400		332,709		2,849		-		1,347,985
		Total commercial multi-family		$	330,773	$	354,523	$	229,943	$	161,616	$	243,219	$	420,788	$	2,849	$	-	$	1,743,711
		Commercial real estate non-owner occupied
			Watch	$	10,057	$	23,877	$	76,629	$	56,112	$	49,166	$	62,766	$	1,055	$	-	$	279,662
			Special Mention		-		4,760		15,304		14,623		70,224		20,028		350		-		125,289
			Substandard		771		18,642		36,495		11,007		40,528		28,984		-		-		136,427
			Pass		397,686		231,904		224,256		236,008		142,432		214,495		5,651		-		1,452,432
		Total commercial real estate non-owner occupied		$	408,514	$	279,183	$	352,684	$	317,750	$	302,350	$	326,273	$	7,056	$	-	$	1,993,810
		Commercial real estate owner occupied
			Watch	$	393	$	8,266	$	7,941	$	4,060	$	16,689	$	16,108	$	4,222	$	-	$	57,679
			Special Mention		-		-		192		-		-		1,467		-		-		1,659
			Substandard		-		1,152		2,361		-		1,348		20,305		-		-		25,166
			Pass		48,684		47,484		47,451		28,761		18,296		68,739		461		-		259,876
		Total commercial real estate owner occupied		$	49,077	$	56,902	$	57,945	$	32,821	$	36,333	$	106,619	$	4,683	$	-	$	344,380

	Commercial and industrial
		Watch	$	16,126	$	1,973	$	30	$	3,621	$	1,196	$	8,488	$	3,972	$	-	$	35,406
		Special Mention		14,056		-		-		1,634		4,807		4,756		1,637		-		26,890
		Substandard		2,029		6,568		-		-		-		5,980		2,394		-		16,971
		Pass		410,349		196,958		198,249		132,993		123,762		300,846		102,369		-		1,465,526
	Total commercial and industrial		$	442,560	$	205,499	$	198,279	$	138,248	$	129,765	$	320,070	$	110,372	$	-	$	1,544,793
Construction
		Watch	$	8,451	$	-	$	-	$	37,015	$	-	$	2,065	$	-	$	-	$	47,531
		Special Mention		-		-		-		3,089		-		30,083		-		-		33,172
		Substandard		-		-		20,655		9,372		7,560		-		-		-		37,587
		Pass		79,489		288,865		168,411		99,814		8,392		5,841		-		-		650,812
Total construction			$	87,940	$	288,865	$	189,066	$	149,290	$	15,952	$	37,989	$	-	$	-	$	769,102
Mortgage
		Substandard	$	29	$	-	$	1,221	$	-	$	328	$	13,287	$	-	$	-	$	14,865
		Pass		356,839		275,289		103,160		9,337		9,530		351,517		-		-		1,105,672
Total mortgage			$	356,868	$	275,289	$	104,381	$	9,337	$	9,858	$	364,804	$	-	$	-	$	1,120,537

December 31, 2020
				Term Loans													Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis
				Amortized Cost Basis by Origination Year
(In thousands)					2020		2019		2018		2017		2016		Prior Years						Total
Popular U.S.
	Consumer:
		Credit cards
			Pass	$	-	$	-	$	-	$	-	$	-	$	-	$	31	$	-	$	31
	Total credit cards			$	-	$	-	$	-	$	-	$	-	$	-	$	31	$	-	$	31
		HELOCs
			Substandard	$	-	$	-	$	-	$	-	$	-	$	112	$	-	$	357	$	469
			Loss		-		-		-		-		-		156		-		6,867		7,023
			Pass		-		-		-		-		-		11,907		39,366		35,806		87,079
	Total HELOCs			$	-	$	-	$	-	$	-	$	-	$	12,175	$	39,366	$	43,030	$	94,571
		Personal
			Substandard	$	83	$	784	$	165	$	74	$	18	$	6	$	-	$	-	$	1,130
			Loss		-		17		63		12		6		244		2		-		344
			Pass		40,539		109,606		27,693		9,623		1,855		8,256		192		-		197,764
	Total Personal			$	40,622	$	110,407	$	27,921	$	9,709	$	1,879	$	8,506	$	194	$	-	$	199,238
		Other consumer
			Substandard	$	-		-		-		-		-		-		20		-		20
			Pass	$	-	$	-	$	-	$	-	$	-	$	-	$	1,723	$	-	$	1,723
	Total Other consumer			$	-	$	-	$	-	$	-	$	-	$	-	$	1,743	$	-	$	1,743
Total Popular U.S.				$	1,716,354	$	1,570,668	$	1,160,219	$	818,771	$	739,356	$	1,597,224	$	166,294	$	43,030	$	7,811,916

December 31, 2020
				Term Loans													Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis
				Amortized Cost Basis by Origination Year
(In thousands)					2020		2019		2018		2017		2016		Prior Years						Total
Popular, Inc.
	Commercial:
		Commercial multi-family
			Watch	$	1,643	$	16,787	$	39,980	$	39,713	$	52,989	$	61,829	$	-	$	-	$	212,941
			Special mention		3,122		30,708		4,380		19,593		37,745		24,623		-		-		120,171
			Substandard		-		17,376		21,771		1,755		20,085		6,647		100		-		67,734
			Pass		331,224		326,085		189,863		102,661		134,963		407,500		2,849		-		1,495,145
		Total commercial multi-family		$	335,989	$	390,956	$	255,994	$	163,722	$	245,782	$	500,599	$	2,949	$	-	$	1,895,991
		Commercial real estate non-owner occupied
			Watch	$	171,017	$	97,438	$	104,221	$	96,766	$	82,443	$	260,678	$	3,155	$	-	$	815,718
			Special Mention		-		31,091		139,864		44,334		90,119		82,867		1,186		-		389,461
			Substandard		44,170		92,945		63,294		15,939		70,502		159,202		95		-		446,147
			Pass		486,010		285,289		264,070		296,593		267,075		741,777		9,003		-		2,349,817
		Total commercial real estate non-owner occupied		$	701,197	$	506,763	$	571,449	$	453,632	$	510,139	$	1,244,524	$	13,439	$	-	$	4,001,143
		Commercial real estate owner occupied
			Watch	$	96,439	$	18,585	$	22,353	$	13,820	$	26,273	$	162,553	$	6,849	$	-	$	346,872
			Special Mention		850		6,638		441		6,571		282		173,545		-		-		188,327
			Substandard		1,774		3,333		40,047		1,878		28,442		165,498		-		-		240,972
			Doubtful		-		-		-		-		-		1,714		-		-		1,714
			Pass		253,524		101,758		79,368		86,615		146,688		486,115		11,322		-		1,165,390
		Total commercial real estate owner occupied		$	352,587	$	130,314	$	142,209	$	108,884	$	201,685	$	989,425	$	18,171	$	-	$	1,943,275
		Commercial and industrial
			Watch	$	147,682	$	79,794	$	182,806	$	43,939	$	65,164	$	276,344	$	247,307	$	-	$	1,043,036
			Special Mention		42,366		10,297		19,220		47,495		5,717		33,263		87,900		-		246,258
			Substandard		34,970		8,748		26,921		26,769		1,824		61,200		51,430		-		211,862
			Doubtful		-		67		-		1		-		54		1		-		123
			Loss		-		-		-		-		-		-		13		-		13
			Pass		1,591,748		689,736		317,958		301,167		229,204		519,562		623,234		-		4,272,609
		Total commercial and industrial		$	1,816,766	$	788,642	$	546,905	$	419,371	$	301,909	$	890,423	$	1,009,885	$	-	$	5,773,901

December 31, 2020
			Term Loans													Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis
			Amortized Cost Basis by Origination Year
(In thousands)				2020		2019		2018		2017		2016		Prior Years						Total
Popular, Inc.
	Construction
		Watch	$	8,451	$	105	$	4,895	$	37,015	$	-	$	2,065	$	960	$	-	$	53,491
		Special Mention		-		-		-		3,089		-		30,083		-		-		33,172
		Substandard		-		-		20,655		30,869		7,560		-		-		-		59,084
		Pass		95,212		311,273		171,834		163,396		8,392		5,841		24,513		-		780,461
	Total construction		$	103,663	$	311,378	$	197,384	$	234,369	$	15,952	$	37,989	$	25,473	$	-	$	926,208
	Mortgage
		Substandard	$	783	$	903	$	2,393	$	3,129	$	4,702	$	172,646	$	-	$	-	$	184,556
		Pass		620,312		499,679		280,697		221,987		235,354		5,848,095		-		-		7,706,124
	Total mortgage		$	621,095	$	500,582	$	283,090	$	225,116	$	240,056	$	6,020,741	$	-	$	-	$	7,890,680
	Leasing
		Substandard	$	200	$	822	$	748	$	913	$	617	$	136	$	-	$	-	$	3,436
		Pass		480,964		315,022		209,340		109,708		63,955		15,236		-		-		1,194,225
	Total leasing		$	481,164	$	315,844	$	210,088	$	110,621	$	64,572	$	15,372	$	-	$	-	$	1,197,661

December 31, 2020
				Term Loans													Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis
				Amortized Cost Basis by Origination Year
(In thousands)					2020		2019		2018		2017		2016		Prior Years						Total
Popular, Inc.
	Consumer:
		Credit cards
			Substandard	$	-	$	-	$	-	$	-	$	-	$	-	$	12,798	$	-	$	12,798
			Pass		-		-		-		-		-		-		907,168		-		907,168
	Total credit cards			$	-	$	-	$	-	$	-	$	-	$	-	$	919,966	$	-	$	919,966
		HELOCs
			Substandard	$	-	$	-	$	-	$	-	$	-	$	112	$	-	$	357	$	469
			Loss		-		-		-		-		-		156		-		6,867		7,023
			Pass		-		-		-		-		-		12,447		43,005		35,806		91,258
	Total HELOCs			$	-	$	-	$	-	$	-	$	-	$	12,715	$	43,005	$	43,030	$	98,750
		Personal
			Substandard	$	1,371	$	5,566	$	1,906	$	1,096	$	989	$	18,653	$	152	$	1,545	$	31,278
			Loss		-		17		63		12		6		244		2		-		344
			Pass		363,709		523,579		195,835		109,391		59,174		145,949		2,336		45,390		1,445,363
	Total Personal			$	365,080	$	529,162	$	197,804	$	110,499	$	60,169	$	164,846	$	2,490	$	46,935	$	1,476,985
		Auto
			Substandard	$	1,975	$	6,029	$	3,612	$	1,760	$	1,369	$	990	$	-	$	-	$	15,735
			Pass		1,064,082		881,343		628,657		299,677		168,157		74,577		-		-		3,116,493
	Total Auto			$	1,066,057	$	887,372	$	632,269	$	301,437	$	169,526	$	75,567	$	-	$	-	$	3,132,228
		Other consumer
			Substandard	$	-	$	16	$	1,376	$	240	$	174	$	13,075	$	20	$	-	$	14,901
			Pass		16,912		15,698		13,158		4,966		2,828		3,785		56,160		-		113,507
	Total Other consumer			$	16,912	$	15,714	$	14,534	$	5,206	$	3,002	$	16,860	$	56,180	$	-	$	128,408
Total Popular Inc.				$	5,860,510	$	4,376,727	$	3,051,726	$	2,132,857	$	1,812,792	$	9,969,061	$	2,091,558	$	89,965	$	29,385,196