POPULAR INC

All statements

contained herein

not clearly

historical in

nature are

forward-looking, and

the words

“anticipate,” “believe,”

“continues,” “expect,”

“estimate,” “intend,”

“project” and

similar expressions

and future

or conditional

verbs such

as “will,”

“would,”

“should,” “could,” “might,” “can,” “may” or similar

expressions are generally intended to identify

forward-looking statements.

Various factors, some of which

are beyond Popular’s control, could cause actual results to differ materially from those expressed in,

or implied by, such forward-looking statements. Factors that might cause such a

difference include, but are not limited to:

●

the

rate

of

growth

or

decline

in

the

economy

and

employment

levels,

as

well

as

general

and

conditions

in

the

geographic

areas

we

serve

and,

in

particular,

in

the

Commonwealth

of

Puerto

Rico

(the

“Commonwealth” or “Puerto Rico”), where a significant

portion of our business is concentrated;

●

adverse

economic conditions,

including high

levels

of

inflation, that

adversely affect

housing

prices, the

job

market,

consumer confidence

and spending

habits which

may affect

in turn,

among other

things, our

assets, charge-offs and provision expense;

●

changes in interest rates and market liquidity,

which may reduce interest margins, impact funding sources, reduce loan

originations, affect

our ability

to originate

and distribute

financial products

in the

primary and

secondary markets

and

impact the value of our investment portfolio and

our ability to return capital to our shareholders;

●

the

impact

of

bank

failures

or

adverse

developments

at

other

banks

and

related

media

coverage

of

the

banking industry in general on investor and depositor

sentiment regarding the stability and liquidity of

banks;

●

the impact of the current fiscal and economic challenges of Puerto Rico and

the measures taken and to be taken by the

Puerto

Rico

and

the

Federally-appointed

oversight

board

on

the

economy,

our

and

our

business;

●

the impact of the pending debt

restructuring proceedings under Title III of the

Puerto Rico Oversight, Management and

Economic

Stability

Act

(“PROMESA”)

and

of

other

actions

taken

or

to

be

taken

to

address

Puerto

fiscal

challenges on the value of our portfolio of Puerto Rico government securities and

loans to governmental entities and of

our

commercial,

and

loan

where

private

could

be

directly

by

governmental action;

●

the

deposits held

at

the Corporation,

whose future

balances are

uncertain and

difficult

to

predict

and

may

be

by

factors

such

as

the

amount

of

Federal

funds

by

the

P.R.

and

the

rate

of

expenditure

of

such

funds,

as

well

as

the

condition,

and

cash

management practices of the Puerto Rico Government

and its instrumentalities;

●

unforeseen

or

catastrophic

events,

extreme

weather

events,

hurricanes,

other

natural

disasters,

man-made disasters, acts of violence or war or pandemics,

epidemics and other health-related crises,

or the fear of any

such event

occurring, any of

which could cause

adverse consequences for

our business, including,

but not

limited to,

disruptions in our operations;

●

our ability to

achieve the expected

benefits from our

transformation initiative, including

our ability to

achieve projected

earnings, efficiencies and our targeted sustainable return on

tangible common equity of 14% by the end of 2025;

●

risks related to Popular’s acquisition of certain information technology and related assets formerly used by Evertec, Inc.

to

service certain

of Banco

Popular de

Puerto Rico’s

key channels,

as well

as the

entry into

amended and

restated

commercial agreements (the “Evertec Business Acquisition

Transaction”);

●

the fiscal and monetary policies of the federal government

and its agencies;

●

federal

bank regulatory

and supervisory

policies, including

required levels

of

capital, liquidity,

resolution-

related requirements and the impact of other proposed

capital standards on our capital ratios;

●

additional Federal Deposit Insurance Corporation (“FDIC”) assessments,

such as the special assessment

implemented

by the FDIC to recover the losses to the deposit insurance fund (“DIF”)

resulting from the receiverships of Silicon Valley

Bank and Signature Bank;

●

regulatory approvals

that may

be necessary

to undertake

certain actions

or consummate

strategic transactions,

such

as acquisitions and dispositions;

●

the

relative strength

or

weakness

of

the

consumer and

commercial credit

sectors

and

of

the

real

estate markets

in

Puerto Rico and the other markets in which

our borrowers are located;

●

a deterioration in the credit quality of our

clients, customers and counterparties;

●

the performance of the stock and bond markets;

●

competition in the financial services industry;

●

possible legislative, tax or regulatory changes;

●

a failure

in or

breach of

our operational

or security

systems or

infrastructure or

those of

Evertec, Inc.,

our provider

of

core financial

transaction processing and

information technology services,

or of

third parties

providing services

to us,

as

a

result

of

cyberattacks,

e-fraud,

denial-of-services

and

computer

intrusion,

resulting

in,

among

other

things, loss or breach of customer data, disruption

of services, reputational damage or additional

costs to Popular;

●

changes in market rates and prices which may

adversely impact the value of financial assets

and liabilities;

●

potential judgments,

claims, damages,

penalties, fines,

enforcement actions

and

reputational damage

resulting from

pending or future litigation and regulatory or government

investigations or actions;

●

changes in accounting standards, rules and interpretations;

●

our ability to grow our core businesses;

●

decisions to downsize, sell or close branches or business

units or otherwise change our business mix;

and

●

management’s ability to identify and manage these and

other risks.

Moreover,

the

outcome

of

legal

and

proceedings,

as

discussed

in

“Part

II,

Item

Legal

Proceedings,”

is

inherently

uncertain and depends on judicial interpretations of law and the findings of regulators, judges and/or juries. Investors should refer to

the Corporation’s Annual

Report on Form

10-K for the

year ended December 31,

2023 (the “2023

Form 10-K”), as

well as “Part

II,

Item 1A” of this report for a discussion of

such factors and certain risks and uncertainties to which

the Corporation is subject.

All forward-looking

statements included

in this

Form 10-Q

are based

upon information

available to

Popular as

of the

date of

this

Form 10-Q, and other than as

required by law, including the

requirements of applicable securities laws, we assume no

obligation to

update or revise any such forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date

of such statements.

OF FINANCIAL CONDITION

[UNAUDITED]

(In thousands, except share information)

Assets:

$

320,486

$

420,462

Money market investments:

Time deposits with other banks

Total money market investments

Trading account debt securities, at fair value:

Other trading account debt securities

27,308

31,568

Debt securities available-for-sale, at fair

value:

Pledged securities with creditors’ right to repledge

41,261

72,827

Other debt securities available-for-sale

17,976,663

16,656,217

18,017,924

Less – Allowance for credit losses

Debt securities available-for-sale, net

Debt securities held-to-maturity, at amortized cost:

Pledged securities with creditors’ right to repledge

27,372

27,083

Other debt securities held-to-maturity

8,055,788

8,167,252

Debt securities held-to-maturity (fair

value 2024 - $

; 2023 - $

)

8,083,160

8,194,335

Less – Allowance for credit losses

5,731

5,780

Debt securities held-to-maturity, net

Equity securities (realizable value 2024 -

$

196,324

; 2023 - $

194,641

)

195,747

193,726

Loans held-for-sale, at fair value

5,352

4,301

35,486,161

35,420,879

Less – Unearned income

367,423

355,908

739,544

729,341

Total loans held-in-portfolio, net

34,379,194

34,335,630

Premises and equipment, net

588,708

565,284

Other real estate

80,542

80,416

Accrued income receivable

266,908

263,433

Mortgage servicing rights, at fair value

114,964

118,109

2,120,902

2,014,564

Goodwill

804,428

804,428

Other intangible assets

8,969

9,764

$

$

Liabilities and Stockholders’ Equity

Liabilities:

Non-interest bearing

$

15,492,050

$

15,419,624

Interest bearing

48,316,734

48,198,619

66,090

91,384

966,303

986,948

918,448

914,627

Total liabilities

65,759,625

65,611,202

Commitments and contingencies (Refer

to Note 20)

Stockholders’ equity:

Preferred stock,

30,000,000

shares authorized;

885,726

shares issued and outstanding (2023 -

885,726

)

22,143

22,143

Common stock, $

0.01

par value;

170,000,000

shares authorized;

104,790,485

shares issued (2023 -

104,767,348

) and

shares outstanding (2023 -

72,153,621

)

1,048

1,048

Surplus

4,847,466

4,843,399

Retained earnings

4,253,030

4,194,851

Treasury stock - at cost,

32,505,610

shares (2023 -

32,613,727

)

(2,013,187)

(2,018,957)

Accumulated other comprehensive loss, net

of tax

(1,895,531)

Total stockholders’ equity

Total liabilities and stockholders’ equity

$

$

OF OPERATIONS

Interest income:

Loans

$

638,730

$

541,210

88,516

65,724

166,895

132,088

Total interest income

894,141

739,022

Interest expense:

329,496

193,215

Short-term borrowings

1,192

2,885

Long-term debt

12,709

11,266

Total interest expense

343,397

207,366

550,744

531,656

72,598

47,637

Net interest income after provision for credit losses

478,146

484,019

Non-interest income:

37,442

34,678

Other service fees

94,272

90,076

Mortgage banking activities (Refer to Note 9)

4,360

7,400

Net gain, including impairment on equity securities

1,103

1,100

Net gain on trading account debt securities

Adjustments to indemnity reserves on loans sold

(237)

Other operating income

26,517

27,717

Total non-interest income

163,818

161,961

Operating expenses:

Personnel costs

215,377

198,760

Net occupancy expenses

28,041

26,039

Equipment expenses

9,567

8,412

Other taxes

14,375

16,291

Professional fees

28,918

33,431

Technology and software expenses

79,462

68,559

Processing and transactional services

34,194

33,909

Communications

4,557

4,088

Business promotion

20,989

18,871

Deposit insurance

23,887

8,865

Other real estate owned (OREO) income

(5,321)

(1,694)

28,272

24,361

Total operating expenses

483,113

440,687

Income before income tax

158,851

205,293

55,568

46,314

Net Income

$

103,283

$

158,979

Net Income Applicable to Common Stock

$

102,930

$

158,626

Net Income per Common Share - Basic

$

1.43

$

2.22

Net Income per Common Share - Diluted

$

1.43

$

2.22

OF COMPREHENSIVE (LOSS) INCOME

$

103,283

$

158,979

Other comprehensive (loss) income before tax:

Foreign currency translation adjustment

(4,020)

(5,245)

Amortization of net losses of pension and

3,618

4,813

Unrealized holding (losses) gains on debt securities arising

during the period

(73,030)

213,318

Amortization of unrealized losses of debt securities

transfer from available-for-sale to held-to-

44,009

42,040

Unrealized net gains (losses) on cash flow hedges

(30)

Reclassification adjustment for net gains included

in net income

(41)

Other comprehensive (loss) income before tax

(29,423)

254,855

(8,232)

(31,752)

Total other comprehensive (loss) income, net of tax

223,103

Comprehensive income, net of tax

$

65,628

$

382,082

Tax effect allocated to each component of other comprehensive income

(loss):

Amortization of net losses of pension and

(1,356)

(1,805)

Unrealized holding (losses) gains on debt securities arising

during the period

1,926

(21,566)

Amortization of unrealized losses of debt securities

transfer from available-for-sale to held-to-

(8,802)

(8,407)

Unrealized net gains (losses) on cash flow hedges

Reclassification adjustment for net gains included

in net income

$

(8,232)

$

(31,752)

OF CHANGES IN STOCKHOLDERS’ EQUITY

other

Common

Preferred

Retained

comprehensive

stock

stock

Surplus

stock

(loss) Income

Total

Balance at December 31, 2022

$

1,047

$

22,143

$

4,790,993

$

3,834,348

$

(2,030,178)

$

(2,524,928)

$

4,093,425

Cumulative effect of accounting change

28,752

28,752

158,979

158,979

1,567

1,567

Dividends declared:

Common stock

[1]

(39,586)

(39,586)

(353)

(353)

Common stock purchases

(2,970)

(2,970)

Stock based compensation

7,749

7,808

Other comprehensive income, net of tax

223,103

223,103

Balance at March 31, 2023

$

1,047

$

22,143

$

4,792,619

$

3,982,140

$

(2,025,399)

$

(2,301,825)

$

4,470,725

Balance at December 31, 2023

$

1,048

$

22,143

$

4,843,399

$

4,194,851

$

(2,018,957)

$

(1,895,531)

$

103,283

103,283

1,799

1,799

Dividends declared:

Common stock

[1]

(44,751)

(44,751)

(353)

(353)

Common stock purchases

(3,576)

(3,576)

Stock based compensation

2,268

9,346

11,614

Other comprehensive loss, net of tax

Balance at March 31, 2024

$

1,048

$

22,143

$

4,847,466

$

4,253,030

$

(2,013,187)

$

$

[1]

Dividends declared per common share during the quarter

ended March 31, 2024 - $

0.62

(2023 - $

0.55

).

OF CHANGES IN STOCKHOLDERS’ EQUITY

For the quarter ended

Disclosure of changes in number of shares:

Preferred Stock:

Balance at beginning and end of period

885,726

885,726

Common Stock – Issued:

104,767,348

104,657,522

23,137

25,488

Balance at end of period

104,790,485

104,683,010

Treasury stock

(32,505,610)

(32,717,026)

Common Stock – Outstanding

71,965,984

The accompanying notes are an integral part of these Consolidated

OF CASH FLOWS

Cash flows from operating activities:

$

103,283

$

158,979

Adjustments to reconcile net income to net cash provided

by operating activities:

72,598

47,637

Depreciation and amortization of premises and equipment

15,361

13,842

Net accretion of discounts and amortization of premiums and

deferred fees

(51,360)

(2,276)

Interest capitalized on loans subject to the temporary payment

moratorium or loss mitigation alternatives

(1,641)

(2,876)

Share-based compensation

11,479

7,873

Fair value adjustments on mortgage servicing rights

3,439

1,376

Adjustments to indemnity reserves on loans sold

(612)

Earnings from investments under the equity method, net

of dividends or distributions

(11,792)

(8,621)

Deferred income tax expense (benefit)

9,513

(2,064)

Gain on:

Disposition of premises and equipment and other productive

assets

(3,412)

(2,423)

Sale of loans, including valuation adjustments on loans

held-for-sale and mortgage banking activities

(74)

(264)

Sale of foreclosed assets, including write-downs

(4,447)

(5,228)

Acquisitions of loans held-for-sale

(324)

(2,861)

Proceeds from sale of loans held-for-sale

8,283

9,148

Net originations on loans held-for-sale

(11,056)

(21,790)

Net decrease (increase) in:

Trading debt securities

6,465

(1,055)

(1,995)

(3,731)

Accrued income receivable

(22,719)

38,702

25,072

Net (decrease) increase in:

Interest payable

(10,799)

(2,846)

Pension and other postretirement benefits obligation

4,038

10,111

(59,381)

Total adjustments

58,280

(5,933)

Net cash provided by operating activities

161,563

153,046

Cash flows from investing activities:

Net decrease (increase) in money market investments

1,070,973

(483,178)

Purchases of investment securities:

Available-for-sale

(8,161,525)

(3,960,443)

Equity

(971)

(11,927)

Proceeds from calls, paydowns, maturities and redemptions

of investment securities:

Available-for-sale

6,728,665

4,909,334

Held-to-maturity

154,009

3,818

Proceeds from sale of investment securities:

Equity

25,595

Net repayments (disbursements) on loans

2,354

(155,538)

Proceeds from sale of loans

15,356

3,276

Acquisition of loan portfolios

(141,730)

(145,735)

Return of capital from equity method investments

Acquisition of premises and equipment and other productive

assets

(53,889)

(36,062)

Proceeds from sale of:

Premises and equipment and other productive assets

1,632

1,972

Foreclosed assets

26,773

21,417

Net cash (used in) provided by investing activities

(357,408)

172,778

Cash flows from financing activities:

Net increase (decrease) in:

190,477

(293,780)

(25,294)

(25,110)

Other short-term borrowings

(365,000)

Payments of notes payable

(21,000)

(1,000)

Principal payments of finance leases

(881)

(804)

Proceeds from issuance of notes payable

394,178

Proceeds from issuance of common stock

1,799

1,567

Dividends paid

(44,976)

(39,878)

Net payments for repurchase of common stock

(314)

(282)

Payments related to tax withholding for share-based compensation

(3,262)

(2,688)

Net cash provided by (used in) financing activities

96,549

(332,797)

Net decrease in cash and due from banks, and restricted

cash

(99,296)

(6,973)

Cash and due from banks, and restricted cash at beginning

of period

427,575

476,159

Cash and due from banks, and restricted cash at the end of

the period

$

328,279

$

469,186

The accompanying notes are an integral part of these Consolidated

Notes to Consolidated Financial

(Unaudited)

Note 1 -

Nature of operations

Note 2 -

Basis of presentation

Note 3 -

New accounting pronouncements

Note 4 -

Restrictions on cash and due from banks and

certain securities

Note 5 -

Note 6 -

Debt securities held-to-maturity

Note 7 -

Loans

Note 8 -

Allowance for credit losses – loans held-in-

Note 9 -

Note 10 -

Transfers of financial assets and mortgage

servicing assets

Note 11 -

Note 12 -

Note 13 -

Goodwill and other intangible assets

Note 14 -

Note 15 -

Note 16 -

Note 17 -

Note 18 -

Other comprehensive income (loss)

Note 19 -

Guarantees

Note 20 -

Commitments and contingencies

Note 21-

Non-consolidated variable interest entities

Note 22 -

Related party transactions

Note 23 -

Fair value measurement

Note 24 -

Fair value of financial instruments

Note 25 -

Net income per common share

Note 26 -

Revenue from contracts with customers

Note 27 -

Leases

Note 28 -

Pension and postretirement benefits

Note 29 -

Stock-based compensation

Note 30 -

Income taxes

Note 31 -

Supplemental disclosure on the consolidated

statements of cash flows

Note 32 -

Segment reporting

Note 1 – Nature of Operations

Inc. (the

“Corporation” or

“Popular”) is

a diversified,

publicly-owned financial

holding company

the supervision

and

regulation

of

the

Board

of

Governors

of

the

Federal

Reserve

System.

The

has

in

Puerto

Rico,

the

mainland United

States (“U.S.”)

and the

U.S. and

British Virgin

Islands. In

provides retail,

mortgage,

and

banking

services,

through

its

banking

Banco

Popular

de

Puerto

Rico

(“BPPR”),

as

well

as

banking,

broker-dealer,

auto

and

leasing

and

and

through

specialized

subsidiaries. In

mainland, the

Corporation provides

retail, mortgage,

commercial banking

services, as

well as

leasing

and

through

its

New

York-chartered

banking

Popular

Bank

(“PB”

or

“Popular

U.S.”),

which

has

branches located in New York, New Jersey, and Florida.

Note 2 – Basis of Presentation

Basis of Presentation

The (unaudited) interim Consolidated Financial Statements are, in the opinion of management, a fair statement of the results

for the

periods reported

and include

all necessary

adjustments, all

of a

normal recurring

nature, for

a fair

statement of

such results.

The

consolidated statement of financial

condition presented as of

December 31, 2023 was

derived from audited Consolidated Financial

Statements of the Corporation for the year ended

December 31, 2023.

Certain

and

notes

to

the

which

would

normally

be

in

prepared in

accordance

with Accounting

Principles

Generally Accepted

in

the

United

States

of

America

(US

GAAP), have

been

condensed or omitted from the unaudited financial statements pursuant

to the rules and regulations of the

Securities and Exchange

Commission.

Accordingly,

these

should

be

read

in

conjunction

with

the

audited

Statements of

for the

year ended

2023,

included in

Form 10-K.

Operating results

for the

interim periods disclosed herein are not necessarily

indicative of the results that may be expected

for a full year or any future period.

Tax impact on Intercompany Distributions

The net

income for

included $

22.9

expenses, of

which $

16.5

million is

income tax expense and $

6.4

million is reflected in other operating expenses, related to an out-of-period adjustment associated with

the Corporation’s U.S. subsidiary’s non-payment of taxes on certain intercompany distributions

to the Bank Holding Company (BHC)

Rico, a

foreign corporation

for U.S.

tax purposes.

The adjustment

corrected errors

for income

that should

have been recognized of $

5.5

5.4

million in the years 2023 and 2022, respectively,

and an aggregate of $

5.6

million, in

the years prior to 2022. The $

6.4

million recognized as other operating expense corresponded to interest due

up to March 31, 2024

on the related late payment of the withholding tax, of which approximately $

3.0

million correspond to years prior to 2022. As a result

of

this

adjustment, the

asset related

to

NOL of

the BHC

and

its

related valuation

allowance was

reduced by

$

53.7

million. The

Corporation evaluated the

impact of

the out-of-period

adjustment and

concluded it

was not

material to

any previously

issued

interim or

annual consolidated

financial statements

and the

adjustment is

not expected

to

be material

to

the year

ending

December 31, 2024.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial

statements in conformity with

accounting principles generally accepted in

the United States

of America

requires management to make

estimates and assumptions that

affect the reported

amounts of assets and

liabilities and contingent

assets

and

at

the

date

of

the

statements,

and

the

amounts

of

and

during

the

reporting period. Actual results could differ from those estimates.

Note 3 - New accounting pronouncements

Recently Adopted Accounting Standards Updates

FASB ASU 2023-02,

Investments—Equity

Method and Joint

Ventures (Topic 323) -

Accounting for

Investments in Tax Credit

Structures Using the

Proportional Amortization

Method

The

Financial Accounting

Standards Board

("FASB")

issued

Accounting

Update ("ASU") 2023-02 in March

2023, which

amends Accounting Standards

Codification ("ASC") Topic 323 by

permitting the election to apply the

proportional amortization method to account

for tax equity investments that generate

income tax credits through investment in

low-income-housing tax credit (LIHTC)

structures and other tax credit programs if

certain conditions are met. The ASU also

eliminates the application of the ASC

Subtopic 323-740 to LIHTC investments not

accounted for using the proportional

amortization method and instead requires

the use of other guidance.

The

was

not

by

the

adoption of

this

ASU

since

it does

not

hold

in

tax

equity

investments.

FASB ASU 2023-01,

Leases (Topic 842) -

Common Control

Arrangements

The FASB issued ASU 2023-01 in March

2023, which amends ASC Topic 842 and

requires the amortization leasehold

improvements associated with common

control leases over the useful life of the

leasehold improvements to the common

control group as long as the lessee controls

the use of the underlying assets through a

lease. In addition, the ASU requires

companies to account for leasehold

improvements associated with common

control leases as a transfer between entities

under common control through an

adjustments to equity if, and when, the

lessee no longer controls the use

of the

underlying asset.

The

was

not

by

the

adoption of

this

ASU

since

it does

not

hold

common

control

leasehold

improvements, however, it

will consider

this

to

determine

the

amortization

period for

and

treatment

of

leasehold

improvements

associated with common control

leases

acquired on or after the effective date.

FASB ASU 2022-03, Fair

Value Measurement

(Topic 820) - Fair Value

Measurement of Equity

Securities Subject to

Contractual Sale

Restriction

The FASB issued ASU 2022-03 in June

2022, which clarifies that a contractual

restriction that prohibits the sale of an equity

security is not considered part of the unit of

account of the equity security, therefore, is

not considered in measuring its fair value.

The ASU also provides enhanced

disclosures for equity securities subject to a

contractual sale restriction.

The

was

not

by

the

of

this

pronouncement

since

it

does

not

hold

equity securities measured at

with sale restrictions.

Accounting Standards Updates Not Yet Adopted

FASB ASU 2024-02,

Improvements—

Amendments to Remove

References to the

Concepts Statements

The

FASB

issued

ASU

2024-02

in

March

2024, which

removes various

references to

concept

from

the

FASB

Accounting

Standards

Codification.

The

ASU

intends

to

simplify

the

and

distinguish

between

nonauthoritative

and authoritative guidance.

any

impact

that

the

of

this

will

have

on

its

and

and

FASB ASU 2024-01,

Compensation - Stock

Compensation (Topic 718)

• Scope Application of

Profits Interest and Similar

Awards

The FASB issued ASU 2024-01 in March

2024, which amends ASC Topic 718 by

including an illustrative example to

demonstrate how an entity would apply the

scope guidance in paragraph 718-10-15-3

to determine whether profits interest awards

should be accounted for in accordance with

ASC

Topic

The

ASU

is

intended

to

reduce complexity and diversity in practice.

any

impact

that

the

of

this

will

have

on

its

and

and

FASB ASU 2023-09,

Income Tax ( Topic

Improvements to Income

Tax Disclosures

The

FASB

issued

ASU

2023-09

in

December 2023,

which amends

ASC Topic

by

enhancing

regarding

rate

reconciliation

and

the

disclosure of

income taxes paid, income (or

loss)

from

before

income

tax

expense

and

income

tax

expense

disaggregated

by

national,

state

and foreign level. Disclosures that no longer

were considered

cost

beneficial or

relevant

were removed from ASC Topic 740.

any

impact

that

the

of

this

will

have

on

its

and

and

FASB ASU 2023-08,

Intangibles - Goodwill and

Other - Crypto Assets

(Subtopic 350-60) -

Accounting for and

Disclosure of Crypto

Assets

The

FASB

issued

ASU

2023-08

in

2023,

which

amends

ASC

Subtopic

350-60

by

that

crypto

assets

are

measured

at

fair

value

in

the

statement

of

each

reporting

period

with

changes

from

remeasurement

being

in

net

income.

The

ASU

also

requires

enhanced

for

both

annual

and

interim

reporting

periods

to

provide

investors

with

relevant information

to

analyze and

assess

the

and

risk

of

individual crypto asset holdings.

The Corporation does not expect to be

impacted by the adoption of this ASU

since it

hold crypto-assets

for

its platform users.

FASB ASU 2023-07,

Segment Reporting (Topic

280. • Improvements to

Reportable Segment

Disclosures

The

FASB

issued

ASU

2023-07

in

November 2023,

which amends

ASC Topic

by

about significant segment expenses.

For fiscal years

beginning on

For interim periods

within fiscal years

beginning after

any

impact

that

the

of

this

will

have

on

its

and

and

Accounting Standards Updates Not Yet Adopted

FASB ASU 2023-06,

Disclosure Improvements -

Codification Amendments

in Response to the SEC’s

Disclosure Update and

Simplification Initiative

The FASB

issued ASU

2023-06 in

October

which

modifies

the

disclosure

or

of

various

subtopics

in

the

with

the

purpose

of

aligning

U.S.

GAAP

with

those

of

the

SEC

under

Regulation S-X and S-K.

The date on which

the SEC removes

related disclosure

requirements from

Regulation S-X or

Regulation S-K. If by

June 30, 2027, the

SEC has not

removed the

requirements from

Regulation S-X or

Regulation S-K, the

pending content of

the related

amendment will be

removed from the

Codification and will

not become

effective for any

entity.

expect to

be

by

the

of

this

ASU

since

it

is

subject

to

SEC's

current

disclosure

and

requirements under Regulation S-X and

S-K.

FASB ASU 2023-05,

Business Combinations -

Joint Venture Formations

(Subtopic 805-60) -

Recognition and initial

measurement

The

FASB

issued

ASU

2023-05

in

August

2023, which

amends ASC

Subtopic 805-60

to include specific

guidance about how

joint

ventures

should

recognize

and

initially

measure

assets

contributed

and

assumed.

The

amendments

require

that

a

joint venture, upon formation, recognize and

initially

measure

its

assets

and

liabilities at

fair value.

Upon

of

this

ASU,

the

Corporation will

consider this

for

the

initial

measure

of

assets

and

of

newly

created

joint

ventures.

Note 4 - Restrictions on cash and due from

banks and certain securities

BPPR is

required by

regulatory agencies

to maintain

average reserve

balances with

Reserve Bank

of New

York

(the

“Fed”) or other banks.

Those required average reserve balances amounted

to $

2.8

billion at March 31, 2024

$

2.7

billion). Cash

and due

from banks,

as well

as other

highly liquid

securities, are

used to

cover the

required average

reserve

balances.

held $

million in restricted

assets in the

form of funds

deposited in money

market accounts,

debt

for

sale

and

equity

31,

$

The

assets

held

in

debt

securities available for sale and equity securities consist primarily of assets

held for the Corporation’s non-qualified retirement plans

and fund deposits guaranteeing possible liens or encumbrances

over the title of insured properties.

Note 5 – Debt securities available-for-sale

The following tables present

the amortized cost, gross

unrealized gains and losses,

approximate fair value, weighted average

yield

and contractual maturities of debt securities available-for-sale

at March 31, 2024 and December 31, 2023.

Gross

Gross

Fair

average

cost

losses

gains

losses

value

yield

$

9,394,716

$

$

60,864

$

9,333,920

3.90

%

2,825,336

140,775

2,684,561

1.32

307,174

36,444

270,730

1.63

12,527,226

238,083

12,289,211

3.26

15,883

15,070

1.54

19,189

1,337

17,852

2.29

104,671

10,006

94,686

2.55

mortgage obligations - federal agencies

139,743

12,156

127,608

2.40

Mortgage-backed securities - federal agencies

2.06

78,628

3,683

74,951

2.36

817,332

56,576

760,937

2.33

5,897,090

1,135,279

4,762,260

1.65

securities - federal agencies

6,793,507

1,195,543

5,598,600

1.74

Other

1,005

4.00

1,500

1,500

8.50

Total other

2,505

2,005

6.69

[1]

$

19,462,981

$

$

1,445,782

$

2.72

%

[1]

11.8

billion pledged to secure government and trust deposits, assets

sold under agreements to repurchase, credit facilities

and loan servicing

agreements that the secured parties are not permitted

to sell or repledge the collateral, of which $

.0 billion serve as collateral for public funds.

The

Corporation had unpledged Available for Sale securities

with a fair value of

$

6.2

billion that could be used to increase its borrowing

facilities.

Gross

Gross

Fair

average

cost

gains

losses

value

yield

$

7,103,518

$

$

59,415

$

7,044,629

3.51

%

3,598,209

170,209

3,428,084

1.35

307,512

33,164

274,348

1.63

11,009,239

262,788

10,747,061

2.75

17,899

17,061

1.55

20,503

1,321

19,184

2.28

108,280

9,868

98,441

2.54

mortgage obligations - federal agencies

146,682

12,027

134,686

2.38

Mortgage-backed securities - federal agencies

3.72

82,310

3,536

78,785

2.34

792,431

48,250

744,256

2.28

6,067,353

1,046,909

5,021,111

1.64

securities - federal agencies

6,942,731

1,098,698

5,844,786

1.72

Other

1,011

1,011

4.00

1,500

1,500

8.50

Total other

2,511

2,511

6.69

[1]

$

18,101,163

$

1,394

$

1,373,513

$

2.35

%

[1]

billion pledged to secure government and trust deposits,

assets sold under agreements to repurchase, credit facilities

and loan

servicing agreements that the secured parties are not permitted

to sell or repledge the collateral, of which $

11.1

billion serve as collateral for

public funds. The Corporation had unpledged Available

for Sale securities with a fair value of

$

4.6

billion that could be used to increase its

borrowing facilities.

The weighted

average yield

on debt

securities available-for-sale

is based

on amortized

cost; therefore,

it

give

effect to

changes in fair value.

Debt

not

due

on

a

single

date,

such

as

and

obligations, are classified

in the period

of final contractual

maturity. The

expected maturities of

collateralized mortgage obligations,

mortgage-backed securities and certain other securities may

differ from their contractual maturities

because they may be subject to

prepayments or may be called by the issuer.

At March 31, 2024, the Corporation did not intend

to sell or believed it was more

likely than not that it would be

required to sell debt

securities classified as available-for-sale. There were

no

debt securities sold during the quarters ended March 31,

2024 and 2023.

The

tables

present

the

fair

value

and

gross

losses

of

debt

available-for-sale,

aggregated by investment category and length of

time that individual securities have been in a continuous

unrealized loss position at

Less than 12 months

12 months or more

Total

Gross

Gross

Gross

Fair

Fair

Fair

value

losses

value

losses

value

losses

$

4,845,109

$

3,713

$

5,809,606

$

234,370

$

10,654,715

$

238,083

2,127

123,238

12,154

125,365

12,156

45,988

5,523,133

1,195,115

5,569,121

1,195,543

available-for-sale in an unrealized loss position

$

4,893,224

$

4,143

$

11,455,977

$

1,441,639

$

16,349,201

$

1,445,782

Less than 12 months

12 months or more

Total

Gross

Gross

Gross

Fair

Fair

Fair

value

losses

value

losses

value

losses

$

244,925

$

5,126

$

6,550,941

$

257,662

$

6,795,866

$

262,788

5,234

124,930

11,992

130,164

12,027

37,118

5,779,260

1,098,293

5,816,378

1,098,698

available-for-sale in an unrealized loss position

$

287,277

$

5,566

$

12,455,131

$

1,367,947

$

12,742,408

$

1,373,513

As of March 31, 2024, the

portfolio of available-for-sale debt securities reflects gross

unrealized losses of $

1.4

billion, driven mainly

by

which

have

been

by

a

decline

in

fair

value

as

a

result

of

the

rising

rate

environment.

The portfolio of

available-for-sale debt securities is comprised

mainly of U.S Treasuries

and obligations from the

U.S.

Government, its

agencies or

government sponsored

entities, including

Federal National

Mortgage Association

(“FNMA”), Federal

Home Loan Mortgage Corporation (“FHLMC”) and Government National Mortgage Association (“GNMA”). As discussed in Note 2 of

Form 10-K,

these securities

carry an

explicit or

implicit guarantee

U.S. Government,

are highly

rated by

major

rating agencies, and have a long history of

no credit losses. Accordingly, the Corporation applies a zero-credit loss assumption.

Note 6 –Debt securities held-to-maturity

the amortized

cost, allowance

losses, gross

unrealized gains

and losses,

approximate fair

value, weighted

average yield

and contractual

held-to-maturity at

Value

Gross

Gross

Book

[1]

for Credit

Net of

Fair

average

cost

Value

Losses

gains

losses

value

yield

$

597,620

$

597,620

$

$

597,620

$

$

7,857

$

589,763

2.61

%

8,030,813

7,416,332

7,416,332

111,295

7,305,037

1.37

8,628,433

119,152

1.46

Obligations of Puerto Rico, States and

3,055

3,055

3,044

3,045

6.23

18,615

18,615

18,480

18,418

3.60

5.80

39,197

39,197

5,557

33,640

2,890

2,636

33,894

1.42

Total obligations of

Puerto Rico, States and

61,712

61,712

5,731

55,981

2,993

2,772

56,202

2.38

1,536

1,536

1,536

1,364

2.87

mortgage obligations -

federal agencies

1,536

1,536

1,536

1,364

2.87

Securities in wholly owned statutory business

trusts

5,960

5,960

5,960

5,960

6.33

Total securities

in wholly owned statutory

business trusts

5,960

5,960

5,960

5,960

6.33

held-to-maturity [2]

$

8,697,641

$

8,083,160

$

5,731

$

$

2,993

$

122,096

$

1.47

%

[1]

Book value includes $

million of net unrealized loss which remains in

Accumulated other comprehensive (loss) income

(AOCI) related to

certain securities previously transferred from available-for-sale

securities portfolio to the held-to-maturity securities portfolio.

[2]

.0 billion pledged to secure public and trust deposits

that the secured parties are not permitted to sell

or repledge the collateral.

The

Corporation had unpledged held-to-maturities securities with

a fair value of $

69.3

million that could be used to increase its borrowing facilities.

Value

Gross

Gross

Book

[1]

for Credit

Net of

Fair

average

cost

Value

Losses

gains

losses

value

yield

$

597,768

$

597,768

$

$

597,768

$

$

7,526

$

590,242

2.58

%

7,971,072

7,335,159

7,335,159

21,996

7,313,800

1.39

211,061

188,484

188,484

188,297

1.50

8,779,901

29,709

1.47

Obligations of Puerto Rico, States and

`

4,820

4,820

4,811

4,814

6.17

%

20,171

20,171

20,024

19,995

3.80

5.80

39,572

39,572

5,596

33,976

2,814

2,766

34,024

1.41

Total obligations of

Puerto Rico, States and

65,408

65,408

5,780

59,628

2,941

2,891

59,678

2.55

6.44

1,543

1,543

1,543

1,395

2.87

mortgage obligations -

federal agencies

1,556

1,556

1,556

1,408

2.90

Securities in wholly owned statutory business

trusts

5,960

5,960

5,960

5,960

6.33

Total securities

in wholly owned statutory

business trusts

5,960

5,960

5,960

5,960

6.33

held-to-maturity [2]

$

8,852,825

$

8,194,335

$

5,780

$

$

3,578

$

32,748

$

1.48

%

[1]

Book value includes $

million of net unrealized loss which remains in Accumulated

other comprehensive (loss) income (AOCI)

related to certain

securities transferred from available-for-sale securities

portfolio to the held-to-maturity securities portfolio as discussed

in Note 6 of the 2023 Form

10-K.

[2]

8.1

billion pledged to secure public and trust deposits that

the secured parties are not permitted to sell or repledge

the collateral. The

Corporation had unpledged held-to-maturities securities with

a fair value of

$

67.3

million that could be used to increase its

borrowing facilities.

Debt securities not due on a single contractual maturity date,

such as collateralized mortgage obligations, are classified in the period

of final

contractual maturity.

The expected

collateralized mortgage

obligations and

certain other

securities may

differ

from their contractual maturities because they may be

subject to prepayments or may be called

by the issuer.

Credit Quality Indicators

The following describes the credit quality indicators by major security

type that the Corporation considers to develop the

estimate of

the allowance for credit losses for investment securities

held-to-maturity.

As

discussed in

Note

of

2023 Form

10-K,

carry

an

explicit

guarantee from

the

are

highly rated by major rating

agencies and have a long

history of no credit losses. Accordingly,

the Corporation applies a zero-credit

loss assumption and no allowance for credit losses

(“ACL”) for these

securities has been established.

and December 31, 2023, the

“Obligations of Puerto Rico, States and

political subdivisions” classified as held-to-

maturity,

issued by

of

Puerto

Rico

that

are

generally

not

rated

by

a

credit

rating

agency.

This

includes $

million of general and special obligation bonds issued by three municipalities of Puerto Rico, that

are payable primarily

from

certain

property

taxes

imposed

by

the

issuing

31,

$

In

the

case

of

general

obligations, they

also benefit

from a

pledge of

the full

faith, credit

and unlimited

taxing power

of the

issuing municipality,

which is

required by law to levy property taxes in an amount sufficient for the payment of

debt service on such general obligation bonds. The

Corporation performs periodic credit quality

reviews of these securities and

internally assigns standardized credit risk ratings based

on its evaluation. The

Corporation considers these ratings in

its estimate to develop the

allowance for credit losses

these

For

the

definitions

of

the

obligor

risk

ratings,

refer

to

the

Credit

Quality

section

of

Note

to

the

The

the

amortized

cost

basis

of

held

by

the

issued

by

of

Puerto

Rico

aggregated by the internally assigned standardized

credit risk rating:

Securities issued by Puerto Rico municipalities

Watch

$

2,255

$

2,255

Pass

13,265

16,565

Total

$

15,520

$

18,820

At

March

31,

2024,

the

of

“Obligations

of

Puerto

Rico,

States

and

subdivisions”

also

$

million

in

issued

by

the

Puerto

Rico

Housing

Finance

(“HFA”),

a

instrumentality,

for

which

the

source of payment is second mortgage loans in Puerto Rico residential

properties (not the government), but for which HFA, provides

a guarantee

in the

event of default

and upon the

satisfaction of certain

other conditions (December

$

million). These

securities are not rated by a credit rating agency.

The

assesses

the

credit

risk

with

these

by

the

refreshed

FICO

scores

of

a

representative

sample

of

the

borrowers.

As

of

March

31,

2024,

the

average

refreshed

FICO

score

for

the

sample,

of

%

of

the

nominal

value

of

the

used

for

the

loss

was

of

(compared

to

%

and

,

respectively, at

December 31, 2023).

The loss estimates

for this portfolio

was based on

the methodology established

under CECL

for

similar

loan

obligations.

The

does

not

the

when

estimating

the

credit

losses

associated with this portfolio.

A

deterioration of

or

of

the fiscal

health of

the

Government of

Puerto

Rico

and/or

its

(including if any

of the issuing municipalities

become subject to a

debt restructuring proceeding under

PROMESA) could adversely

affect the value of these securities, resulting in losses to

the Corporation.

Note 20

to the

Rico Government.

At

March

31,

and

2023,

the

of

“Obligations

of

Puerto

Rico,

States

and

subdivisions”

also

$

million

in securities

issued

by the

HFA

for

which the

underlying source

of

payment

is U.S.

The

Corporation applies a

zero

-credit loss assumption for

these securities, and no

ACL has been

established for these securities

given

that U.S. Treasury

securities carry an

explicit guarantee from the

U.S. Government, are

highly rated by

major rating agencies,

and

have a long history of no credit losses. Refer

to Note 2 of 2023 Form 10-K for further details.

Delinquency status

At March 31, 2024 and December 31, 2023, there were

no

securities held-to-maturity in past due or non-performing

status.

Allowance for credit losses on debt securities held-to-maturity

The following table provides the

activity in the allowance for

credit losses related to debt securities

held-to-maturity by security type

at March 31, 2024 and March 31, 2023:

For the quarters ended March 31,

Obligations of Puerto Rico, States and political subdivisions

Allowance for credit losses:

Beginning balance

$

5,780

$

6,911

(49)

(119)

Securities charged-off

$

5,731

$

6,792

The

for

credit

losses

for

the

Obligations

of

Puerto

Rico,

States

and

$

0.2

million

for

securities issued by municipalities of

Puerto Rico, and $

5.6

million for bonds issued by

the Puerto Rico HFA,

which are secured by

second mortgage loans on

Puerto Rico residential properties (compared to

$

0.2

5.6

million, respectively, at

31, 2023).

Note 7 – Loans

For

a

summary

of the

accounting policies

loans, interest

recognition

and

allowance for

credit

losses

refer to

Note

Summary of Significant Accounting Policies of the 2023

Form 10-K.

Corporation recorded purchases

(including repurchases)

of mortgage

loans of

$

and

loans

of

$

million;

to

(including

repurchases)

of

loans

of

$

consumer loans of $

million, and commercial loans of $

million during the quarter ended March 31, 2023.

performed whole-loan

sales involving

residential mortgage loans,

and $

commercial and construction loans

during the quarter ended

March 31, 2024 (March

$

million of residential mortgage

loans

and

$

million

of

and

construction

loans).

Also,

during

the

quarter

ended

March

31,

2024,

the

securitized approximately $

million of mortgage loans into GNMA mortgage-backed

securities and $

million of mortgage loans into

FNMA mortgage-backed securities, compared to $

million, respectively, during the quarter ended March 31, 2023.

Delinquency status

amortized cost basis of loans

held-in-portfolio (“HIP”), net of unearned

income, by past due status,

and by loan class including those that are in non-performing status or that are accruing

interest but are past due 90 days or more at

BPPR

30-59

60-89

90 days

Total

days

days

or more

Current

loans

loans

$

19,384

$

2,027

$

$

21,517

$

282,134

$

303,651

$

$

2,378

3,278

7,922

13,578

2,982,907

2,996,485

7,922

6,628

26,124

33,184

1,392,908

1,426,092

26,124

3,020

8,552

33,741

45,313

4,699,810

4,745,123

29,171

4,570

162,724

162,724

254,008

107,224

385,062

746,294

5,737,257

6,483,551

166,473

218,589

Leasing

19,936

4,752

7,267

31,955

1,733,458

7,267

13,034

9,528

23,858

46,420

1,095,716

23,858

2,336

2,569

19,822

12,169

19,092

51,083

1,695,410

1,746,493

19,092

Auto

82,957

18,420

41,807

143,184

3,563,670

41,807

Other

1,022

2,111

151,567

153,678

Total

$

422,189

$

166,758

$

545,925

$

1,134,872

$

23,499,897

$

24,634,769

$

298,594

$

247,331

30-59

60-89

90 days

Total

days

days

or more

Current

loans

loans

$

3,434

$

$

8,700

$

12,134

$

2,068,850

$

2,080,984

$

8,700

$

1,364

2,407

4,511

2,056,063

2,060,574

2,407

6,107

19,009

3,877

28,993

1,662,759

1,691,752

3,877

9,961

6,634

17,223

2,263,137

2,280,360

6,423

8,825

8,825

837,754

846,579

25,558

28,071

54,162

1,245,949

1,300,111

28,071

Home equity lines of

credit

3,986

5,222

58,926

64,148

3,986

2,142

1,695

2,068

5,905

144,612

150,517

2,068

Other

8,926

8,927

Total

$

57,613

$

23,619

$

55,744

$

136,976

$

10,346,993

$

10,483,969

$

55,533

$

30-59

60-89

90 days

Total

days

days

or more

Current

[2] [3]

loans

loans

$

22,818

$

2,027

$

8,806

$

33,651

$

2,350,984

$

$

8,806

$

3,118

4,642

10,329

18,089

5,038,970

10,329

12,735

19,441

30,001

62,177

3,055,667

30,001

12,981

9,180

40,375

62,536

6,962,947

35,594

4,781

8,825

8,825

1,000,478

[1]

279,566

107,757

413,133

800,456

6,983,206

194,544

218,589

Leasing

19,936

4,752

7,267

31,955

1,733,458

7,267

13,034

9,528

23,858

46,420

1,095,733

23,858

3,993

5,455

61,262

66,717

3,986

21,964

13,864

21,160

56,988

1,840,022

21,160

Auto

82,957

18,420

41,807

143,184

3,563,670

41,807

Other

1,022

2,112

160,493

162,605

Total

$

479,802

$

190,377

$

601,669

$

1,271,848

$

33,846,890

$

$

354,127

$

247,542

[1]

It is the Corporation’s policy to report delinquent residential

mortgage loans insured by Federal Housing Administration

(“FHA”) or guaranteed by

the U.S. Department of Veterans Affairs

(“VA”) as accruing loans past

due 90 days or more as opposed to non-performing

since the principal

repayment is insured.

These balances include $

million of residential mortgage loans insured by FHA

or guaranteed by the VA

that are no

longer accruing interest as of March 31, 2024. Furthermore, as

of March 31, 2024, the Corporation had approximately

$

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.

[2]

Loans held-in-portfolio are net of $

million in unearned income and exclude $

million in loans held-for-sale.

[3]

billion pledged to secure credit facilities and public

funds that the secured parties are not permitted to sell

or repledge the collateral,

of which $

7.0

billion were pledged at the Federal Home Loan Bank

("FHLB") as collateral for borrowings and $

billion at the Federal Reserve

Bank ("FRB") for discount window borrowings. As of

March 31, 2024, the Corporation had an available borrowing

facility with the FHLB and the

discount window of Federal Reserve Bank of New York

of $

3.8

4.6

billion, respectively.

BPPR

30-59

60-89

90 days

Total

days

days

or more

Current

loans

loans

$

$

$

1,991

$

2,515

$

289,427

$

291,942

$

1,991

$

5,510

8,745

14,332

2,990,922

3,005,254

8,745

2,726

29,430

32,405

1,365,978

1,398,383

29,430

6,998

3,352

36,210

46,560

4,749,666

4,796,226

32,826

3,384

6,378

6,378

163,479

169,857

6,378

260,897

114,282

416,528

791,707

5,600,117

6,391,824

175,106

241,422

Leasing

20,140

6,719

8,632

35,491

1,696,318

8,632

13,243

9,912

23,281

46,436

1,089,292

23,281

2,392

2,648

19,065

14,611

19,031

52,707

1,723,603

1,776,310

19,031

Auto

100,061

27,443

45,615

173,119

3,487,661

45,615

Other

1,641

1,213

3,058

147,104

150,162

Total

$

431,035

$

176,849

$

597,080

$

1,204,964

$

23,305,959

$

24,510,923

$

328,718

$

268,362

30-59

60-89

90 days

Total

days

days

or more

Current

loans

loans

$

9,141

$

2,001

$

$

11,142

$

2,112,536

$

2,123,678

$

$

1,036

1,117

2,719

2,079,448

2,082,167

1,117

30,560

6,274

36,834

1,645,418

1,682,252

6,274

7,815

3,881

12,393

2,317,502

2,329,895

3,772

789,423

789,423

48,818

7,821

11,191

67,830

1,236,263

1,304,093

11,191

1,472

3,733

5,209

58,096

63,305

3,733

2,222

1,948

2,805

6,975

161,962

168,937

2,805

Other

10,274

10,279

Total

$

100,598

$

13,507

$

29,002

$

143,107

$

10,410,941

$

10,554,048

$

28,893

$

30-59

60-89

90 days

Total

days

days

or more

Current

[2]

[3]

loans

loans

$

9,665

$

2,001

$

1,991

$

13,657

$

2,401,963

$

$

1,991

$

6,076

1,113

9,862

17,051

5,070,370

9,862

33,286

35,704

69,239

3,011,396

35,704

14,813

4,049

40,091

58,953

7,067,168

36,598

3,493

6,378

6,378

952,902

959,280

6,378

[1]

309,715

122,103

427,719

859,537

6,836,380

186,297

241,422

Leasing

20,140

6,719

8,632

35,491

1,696,318

8,632

13,243

9,912

23,281

46,436

1,089,311

23,281

1,702

3,759

5,465

60,488

65,953

3,733

21,287

16,559

21,836

59,682

1,885,565

21,836

Auto

100,061

27,443

45,615

173,119

3,487,661

45,615

Other

1,645

1,214

3,063

157,378

160,441

Total

$

531,633

$

190,356

$

626,082

$

1,348,071

$

33,716,900

$

$

357,611

$

268,471

[1]

It is the Corporation’s policy to report delinquent residential

mortgage loans insured by FHA or guaranteed

by the VA as accruing loans

90 days or more as opposed to non-performing since

the principal repayment is insured.

These balances include $

million of residential

mortgage loans insured by FHA or guaranteed by the VA

that are no longer accruing interest as of December

31, 2023. Furthermore, as of

December 31, 2023, the Corporation had approximately

$

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.

[2]

Loans held-in-portfolio are net of $

million in unearned income and exclude $

million in loans held-for-sale.

[3]

14.2

billion pledged to secure credit facilities and public funds

that the secured parties are not permitted to sell or repledge

the collateral,

of which $

7.0

billion were pledged at the Federal Home Loan Bank

(FHLB) as collateral for borrowings and $

7.2

billion at the Federal Reserve

Bank (FRB) for discount window borrowings. As of December

31, 2023, the Corporation had an available borrowing

facility with the FHLB and the

discount window of Federal Reserve Bank of New York

of $

3.5

4.4

billion, respectively.

Recognition of interest income on mortgage loans is generally discontinued when loans are 90 days or more in arrears on payments

of principal or interest. The Corporation discontinues the recognition of interest income on residential mortgage loans insured by the

FHA or guaranteed by the VA when 15 months

delinquent as to principal or interest, since the principal repayment on these loans is

insured.

31, 2024, mortgage

loans held-in-portfolio include

$

2.3

billion (December 31,

2023 -

$

2.2

billion) of loans

insured by the

FHA, or

guaranteed by

the VA

$

218.7

million (December

• $

241.6

million) are

90 days

or more

past due.

The

portfolio of guaranteed loans includes $

million of residential mortgage loans in Puerto Rico

that are no longer accruing interest as

of March 31, 2024 (December 31, 2023 - $

million). The Corporation has approximately $

million in reverse mortgage loans in

which are guaranteed

by FHA,

but which

are currently not

accruing interest at

2024 (December 31,

2023 -

$

Loans with a delinquency status of 90 days past due as of March 31, 2024 include $

million in loans previously pooled into GNMA

31,

$

Under

the

GNMA

program,

issuers

such

as

BPPR

have

the

option

but

not

the

obligation to repurchase loans

that are 90

past due. For

accounting purposes, these loans

subject to the

option

are

be

reflected on

the

financial statements

of BPPR

with

an

offsetting

liability.

Loans

in

our

GNMA

portfolio benefit

from payment

forbearance programs

but continue

to reflect

the contractual

delinquency until

the borrower

repays

deferred payments or completes a payment deferral

modification or other borrower assistance alternative.

The following tables present the amortized cost basis

of non-accrual loans as of March 31, 2024

and December 31, 2023 by class of

loans:

BPPR

with no

with

with no

with

with no

with

$

$

$

8,700

$

$

8,700

$

3,635

4,287

1,344

1,063

4,979

5,350

17,541

8,583

3,877

21,418

8,583

18,914

10,257

6,423

18,914

16,680

82,843

83,630

27,881

83,033

111,511

Leasing

6,814

6,814

HELOCs

3,986

3,986

3,458

15,634

2,068

3,458

17,702

Auto

1,809

39,998

1,809

39,998

Other

Total

$

128,916

$

169,678

$

14,111

$

41,422

$

143,027

$

211,100

BPPR

with no

with

with no

with

with no

with

$

$

1,991

$

$

$

$

1,991

3,695

5,050

1,117

3,695

6,167

20,432

8,998

3,877

2,397

24,309

11,395

6,991

25,835

3,772

6,991

29,607

6,378

6,378

84,677

90,429

11,071

84,797

101,500

Leasing

8,151

8,151

HELOCs

3,733

3,733

3,589

15,442

2,805

3,589

18,247

Auto

1,833

43,782

1,833

43,782

Other

Total

$

121,961

$

206,757

$

3,997

$

24,896

$

125,958

$

231,653

The Corporation has

designated loans classified as

collateral dependent for

which the ACL

is measured based

on the fair

the collateral less

cost to sell,

when foreclosure is

probable or when

the repayment is

expected to be

provided substantially by the

sale or

operation of

the collateral

and the

borrower is

experiencing financial

difficulty.

The fair

the collateral

is based

on

appraisals, which may be

adjusted due to their

age, and the

type, location, and condition

of the property

or area or general

market

conditions to reflect the expected change in value between the effective date

of the appraisal and the measurement date. Appraisals

are updated every one to two years depending on

the type of loan and the total exposure of

the borrower.

Loans in non-accrual status with

no allowance at March 31,

2024 include $

million in collateral dependent loans

million). The Corporation recognized $

million in interest income on non-accrual loans during the quarter ended March

31, 2024 (March 31, 2023 - $

The following tables present the amortized cost basis

of collateral-dependent loans, for which the ACL was measured

based on the

fair value of the collateral less cost to sell, by class

of loans and type of collateral as of March

31, 2024 and December 31, 2023:

Real Estate

Auto

Equipment

Accounts

Receivables

Other

Total

BPPR

$

1,325

$

$

$

$

1,325

159,712

159,712

22,840

22,840

1,130

2,172

23,693

26,995

80,487

80,487

Leasing

1,257

1,257

3,708

3,708

Auto

13,910

13,910

Other

$

269,202

$

15,167

$

$

2,172

23,996

$

310,537

$

8,700

$

$

$

$

8,700

1,344

$

1,344

3,877

$

3,877

2,297

2,367

1,040

1,040

$

14,961

$

$

$

2,297

$

17,328

$

10,025

$

$

$

$

10,025

161,056

161,056

26,717

26,717

1,130

2,172

25,990

29,362

81,527

81,527

Leasing

1,257

1,257

3,708

3,708

Auto

13,910

13,910

Other

Inc.

$

284,163

$

15,167

$

$

2,172

26,293

$

327,865

Real Estate

Auto

Equipment

Other

Total

BPPR

$

1,339

$

$

$

$

1,339

160,555

160,555

25,848

25,848

1,103

30,287

31,390

6,378

6,378

85,113

85,113

Leasing

1,373

1,373

4,338

4,338

Auto

12,965

12,965

Other

$

284,674

$

14,338

$

$

30,592

$

329,604

3,877

3,877

5,990

5,990

1,303

1,303

$

11,170

$

$

$

$

11,675

$

1,339

$

$

$

$

1,339

160,555

160,555

29,725

29,725

1,103

30,687

31,895

12,368

12,368

86,416

86,416

Leasing

1,373

1,373

4,338

4,338

Auto

12,965

12,965

Other

Inc.

$

295,844

$

14,338

$

$

30,992

$

341,279

Purchased Credit Deteriorated (PCD) Loans

The Corporation has purchased loans during

the quarter for which there was, at acquisition, evidence

of more than insignificant

deterioration of credit quality since origination. The

carrying amount of those loans is as follows:

Purchase price of loans at acquisition

$

$

Allowance for credit losses at acquisition

Non-credit discount / (premium) at acquisition

Par value of acquired loans at acquisition

$

$

Note 8 – Allowance for credit losses – loans

The

Corporation follows

the current

expected credit

loss (“CECL”)

model, to

establish and

evaluate the

adequacy of

the ACL

to

provide for

expected losses

in the

loan portfolio.

This model

establishes a forward-looking

methodology that

reflects the

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 PCD

assets be

recorded as

an

increase to

the

purchase price,

with subsequent

changes to

the

as

a

credit

loss

expense.

The

for

credit

losses

in

current

is

based

on

this

methodology.

Loan losses

are charged,

and recoveries

are credited

to the

ACL. The

Corporation’s modeling

framework includes

competing risk

models that

generate lifetime

default and

prepayment estimates as

well as

other loan

level techniques

to estimate

loss

severity.

These

models

combine

credit

risk

factors,

which

include

the

impact

of

loan

modifications,

with

macroeconomic

expectations to derive the lifetime expected loss.

31,2024, the

Corporation estimated

the ACL

by weighting

the outputs

of optimistic,

baseline, and

pessimistic scenarios.

Among the

three scenarios used

to estimate

the ACL, the

baseline is

assigned the highest

probability,

followed by the

pessimistic

scenario given the

uncertainties in the

economic outlook and

downside risk. The

weightings applied are

evaluation on a

quarterly basis as

part of the

ACL’s governance

process. The Corporation evaluates,

at least on

an annual basis, the

tied to the CECL accounting framework. These

include the reasonable and supportable period

as well as the reversion window.

The

annualized GDP

the

improved to

2.0%

and

2.3%

for

Puerto

Rico

and

the

United

States,

respectively, compared to 1.2% and 1.7%

in the previous quarter. The 2024 forecasted average unemployment rate for

and the United States remained stable at 6.5%

and 3.9%, respectively, compared to 6.8% and 4.0% in previous forecast.

the changes

in the

ACL of

loans held-in-portfolio

and unfunded

commitments for

ended

March 31, 2024 and 2023.

BPPR

Ending

Balance

Balances

$

3,614

$

(48)

$

$

$

$

3,567

53,754

(413)

53,666

40,637

5,147

(2,785)

43,537

107,577

(6,669)

1,560

102,844

205,582

5,062

(9,454)

2,424

203,614

5,294

(2,180)

3,114

72,440

(319)

(765)

5,191

76,564

Leasing

9,708

2,968

(4,850)

1,165

8,991

80,487

21,640

(16,396)

2,438

88,169

(197)

101,181

20,263

(24,349)

2,409

99,504

Auto

157,931

13,371

(20,167)

6,321

157,456

Other

7,132

(664)

6,808

346,834

55,477

(61,773)

11,501

352,039

$

639,858

$

61,008

$

$

(76,842)

$

20,281

$

644,322

$

5,062

$

(120)

$

$

$

$

4,942

1,618

(177)

1,441

$

6,680

$

(297)

$

$

$

$

6,383

[1] Allowance for credit losses of unfunded commitments

is presented as part of Other Liabilities in the Consolidated

Ending

Balance

Balance

$

10,126

$

(510)

$

(441)

$

$

9,176

11,699

11,958

16,227

4,019

20,270

14,779

3,203

(564)

17,574

52,831

6,907

(1,005)

58,978

7,392

8,025

10,774

(925)

9,874

1,875

(253)

(7)

1,770

16,609

4,991

(5,712)

16,573

Other

(31)

18,486

4,763

(5,750)

18,345

$

89,483

$

11,378

$

(6,755)

$

1,116

$

95,222

$

1,851

$

$

$

$

2,542

8,446

(609)

7,837

(24)

$

10,326

$

$

$

$

10,384

[1]

for

Ending

Balance

Balance

$

13,740

$

(558)

$

$

(441)

$

$

12,743

65,453

(218)

65,624

56,864

9,166

(2,785)

63,807

122,356

3,579

(7,233)

1,716

120,418

258,413

11,969

(10,459)

2,669

262,592

12,686

(1,547)

11,139

83,214

(1,244)

(765)

5,216

86,438

Leasing

9,708

2,968

(4,850)

1,165

8,991

80,487

21,640

(16,396)

2,438

88,169

1,978

(150)

(204)

1,872

117,790

25,254

(30,061)

3,094

116,077

Auto

157,931

13,371

(20,167)

6,321

157,456

Other

7,134

(695)

6,810

365,320

60,240

(67,523)

12,347

370,384

$

729,341

$

72,386

$

$

(83,597)

$

21,397

$

739,544

$

6,913

$

$

$

$

$

7,484

10,064

(786)

9,278

(24)

$

17,006

$

(239)

$

$

$

$

16,767

[1]

BPPR

Ending

Balance

Balance

$

5,210

$

$

(454)

$

$

$

$

4,756

52,475

1,284

53,894

48,393

(1,161)

(2,730)

(3)

1,510

46,009

68,217

(552)

9,819

(1,607)

1,165

77,042

174,295

(1,713)

7,919

(1,610)

2,810

181,701

2,978

3,072

117,344

(33,556)

1,267

(846)

4,800

89,077

Leasing

20,618

(35)

(1,417)

1,090

20,990

58,670

15,570

(8,676)

2,389

67,953

(39)

(33)

96,369

(7,020)

11,104

(13,580)

1,535

88,408

Auto

129,735

(21)

8,319

(12,118)

4,914

130,829

Other

15,433

(11,007)

4,877

300,310

(7,041)

35,189

(45,414)

9,123

292,167

$

615,545

$

(42,345)

$

45,203

$

$

(49,287)

$

17,823

$

587,007

$

4,336

$

$

$

$

$

$

4,900

2,022

(76)

1,946

$

6,358

$

$

$

$

$

$

6,846

[1]

Ending

Balance

Balance

$

21,101

$

$

(493)

$

$

$

20,610

19,065

(2,961)

1,852

17,956

8,688

(224)

8,488

12,227

2,528

(499)

15,224

61,081

(1,150)

(499)

2,846

62,278

1,268

(10)

1,258

17,910

(2,098)

(426)

15,400

(1)

2,439

(712)

(143)

1,853

22,057

(1,140)

4,191

(4,170)

21,321

Other

(53)

24,498

(1,140)

3,529

(4,367)

23,177

$

104,757

$

(3,238)

$

1,943

$

(4,866)

$

3,517

$

102,113

$

1,175

$

$

$

$

$

1,229

1,184

1,278

(26)

$

2,447

$

$

$

$

$

2,569

[1]

Ending

Balance

Balance

$

26,311

$

$

(947)

$

$

$

$

25,366

71,540

(1,677)

1,987

71,850

57,081

(1,161)

(2,954)

(3)

1,534

54,497

80,444

(552)

12,347

(2,106)

2,133

92,266

235,376

(1,713)

6,769

(2,109)

5,656

243,979

4,246

4,330

135,254

(35,654)

(846)

4,814

104,477

Leasing

20,618

(35)

(1,417)

1,090

20,990

58,670

15,571

(8,677)

2,389

67,953

2,542

(751)

(176)

1,953

118,426

(8,160)

15,295

(17,750)

1,918

109,729

Auto

129,735

(21)

8,319

(12,118)

4,914

130,829

Other

15,435

(11,060)

4,880

324,808

(8,181)

38,718

(49,781)

9,780

315,344

$

720,302

$

(45,583)

$

47,146

$

$

(54,153)

$

21,340

$

689,120

$

5,511

$

$

$

$

$

$

6,129

3,206

3,224

(26)

$

8,805

$

$

$

$

$

$

9,415

[1]

Modifications

A

modification

constitutes

a

change

in

loan

terms

in

the

form

of

forgiveness,

an

rate

reduction,

other

than-

insignificant payment delay, term extension or combination of the above made

to a borrower experiencing financial difficulty.

The amount of outstanding commitments to lend additional funds to debtors with financial difficulties owing receivables whose terms

have

been

31,

and

March

31,

to

$

4.2

million

and

$

7.0

respectively, related to the commercial loan portfolios.

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

the reporting period disaggregated by class of financing receivable

and type of concession granted for the quarters ended March

31,

and

March

31,

Loans

to

under

difficulties

that

were

fully

paid

down,

charged-off

or

foreclosed upon by period end are not reported.

Loan Modifications Made to Borrowers Experiencing Financial

Difficulty for the quarter ended March 31,2024

Interest Rate Reduction

BPPR

31,2024

31,2024

31,2024

$

0.01

%

$

%

$

0.01

%

0.01

%

%

0.01

%

0.01

%

%

0.01

%

Total

$

%

$

%

$

%

Term Extension

BPPR

31,2024

31,2024

31,2024

$

36,718

1.23

%

$

%

$

36,718

0.73

%

16,366

1.15

%

%

16,366

0.52

%

2,494

0.05

%

%

2,494

0.04

%

12,979

0.20

%

%

12,979

0.17

%

0.01

%

%

0.01

%

Total

$

68,756

0.28

%

$

%

$

68,761

0.20

%

Other-Than-Insignificant Payment Delays

BPPR

31,2024

31,2024

31,2024

$

10,312

0.72

%

$

%

$

10,312

0.33

%

5,920

0.12

%

%

5,920

0.08

%

Total

$

16,232

0.07

%

$

%

$

16,232

0.05

%

Combination - Term extension

and Interest Rate Reduction

BPPR

31,2024

31,2024

31,2024

$

0.03

%

$

%

$

0.02

%

%

%

%

3,422

0.05

%

%

3,460

0.04

%

1,056

0.06

%

0.10

%

1,201

0.06

%

Total

$

5,470

0.02

%

$

%

$

5,653

0.02

%

Combination -

Other-Than-Insignificant Payment Delays and Interest Rate

Reduction

31,2024

31,2024

31,2024

$

%

$

%

$

%

0.03

%

%

0.03

%

Total

$

%

$

%

$

%

Loan Modifications Made to Borrowers Experiencing Financial

Difficulty for the quarter ended March 31,2023

Interest Rate Reduction

BPPR

31,2023

31,2023

31,2023

$

%

$

%

$

%

0.05

%

%

0.05

%

0.01

%

%

0.01

%

Other

%

%

%

Total

$

%

$

%

$

%

Term Extension

BPPR

31,2023

31,2023

31,2023

$

1,754

0.12

%

$

%

$

1,754

0.06

%

3,705

0.09

%

%

3,705

0.06

%

%

3,518

0.65

%

3,518

0.50

%

14,521

0.24

%

1,853

0.14

%

16,374

0.22

%

%

0.02

%

%

Total

$

20,006

0.09

%

$

5,425

0.06

%

$

25,431

0.08

%

Other-Than-Insignificant Payment Delays

BPPR

31,2023

31,2023

31,2023

$

1,751

0.06

%

$

%

$

1,751

0.04

%

13,156

0.88

%

13,744

0.90

%

26,900

0.89

%

1,411

0.04

%

0.04

%

2,275

0.04

%

Other

0.03

%

%

0.02

%

Total

$

16,351

0.07

%

$

14,608

0.15

%

$

30,959

0.10

%

Combination - Term extension

and Interest Rate Reduction

BPPR

31,2023

31,2023

31,2023

$

0.01

%

$

%

$

%

10,473

0.17

%

0.03

%

10,801

0.15

%

0.03

%

%

0.02

%

Auto

%

%

%

Total

$

11,025

0.05

%

$

%

$

11,353

0.04

%

The following tables describe the financial effect of the

modifications made to borrowers experiencing

financial difficulties:

Interest rate reduction

10.13

% to

8.25

%.

25.53

% to

9.83

%.

5.88

% to

4.5

0%.

21.05

% to

6.23

%.

18.06

% to

9.68

%.

Term extension

year to the life of loans.

Other than insignificant payment delay

Interest rate reduction

6.00

% to

5.25

%.

5.69

% to

4.17

%.

17.76

% to

4.47

%.

16.97

% to

9.11

%.

Auto

12.64

% to

12.62

%.

Other

17.99

% to

%.

Term extension

Auto

Other than insignificant payment delay

Other

The following tables present, by class, the performance of loans that have been modified during the twelve months preceding March

31,

The

past

due

days

or

more

categories

all

loans

as

non-accruing

at

the

time

of

the

modification. These

loans will

continue in

non-accrual status,

and presented

as past

due 90

days or

more, until

the borrower

has

demonstrated a willingness and

ability to make

the restructured loan payments

(at least six

months of sustained

performance after

the modification

or one

year for

loans providing

for quarterly

or semi-annual

payments) and

management has

concluded that

it is

probable that the borrower would not be in payment

default in the foreseeable future.

BPPR

due

Current

Total

Default

Without

$

$

$

$

$

$

$

$

3,278

2,918

6,375

60,491

66,866

2,918

1,969

2,780

189,327

192,107

1,432

16,492

17,118

32,511

49,629

2,774

13,718

5,970

3,954

23,151

33,075

49,225

82,300

3,525

19,626

1,017

1,397

1,058

1,205

3,071

4,276

1,007

Auto

Other

Total

$

7,754

$

7,368

$

45,889

$

61,011

$

335,716

$

396,727

$

7,046

$

38,843

due

Current

Total

Default

Without

$

$

$

$

$

57,550

$

57,550

$

$

3,403

3,727

Total

$

$

$

$

$

61,077

$

61,561

$

$

due

Current

Total

Default

Without

$

$

$

$

$

$

$

$

3,278

2,918

6,375

60,491

66,866

2,918

1,969

2,780

246,877

249,657

1,432

16,492

17,118

32,511

49,629

2,774

13,718

5,970

3,954

23,475

33,399

52,628

86,027

3,525

19,950

1,017

1,397

1,218

1,365

3,195

4,560

1,167

Auto

Other

Total

$

7,754

$

7,368

$

46,373

$

61,495

$

396,793

$

458,288

$

7,046

$

39,327

to make the restructured loan payments.

Payment default is defined as a restructured loan becoming

90 days past due after being modified, foreclosed

or

charged-off, whichever occurs first. The recorded inve

stment as of period end is inclusive of all partial

paydowns and charge-offs since the modification

The following tables present, by class, the performance

of loans that have been modified during the quarter

ended March 31, 2023.

BPPR

due

Current

Total

Default

Without

$

$

$

$

$

1,751

$

1,751

$

$

1,803

1,803

13,208

15,011

1,594

4,974

5,116

1,202

7,518

8,900

16,321

25,221

7,518

Auto

Other

Total

$

1,229

$

$

9,824

$

11,279

$

37,002

$

48,281

$

$

9,491

due

Current

Total

Default

Without

$

$

$

$

$

13,744

$

13,744

$

$

3,518

3,518

2,077

2,181

Total

$

$

$

$

$

20,203

$

20,361

$

$

due

Current

Total

Default

Without

$

$

$

$

$

1,751

$

1,751

$

$

1,803

1,803

26,952

28,755

1,594

5,838

5,980

3,518

3,518

1,202

7,622

9,004

18,398

27,402

7,622

Auto

Other

Total

$

1,229

$

$

9,982

$

11,437

$

57,205

$

68,642

$

$

9,649

to make the restructured loan payments.

Payment default is defined as a restructured loan becoming

90 days past due after being modified, foreclosed

or

charged-off, whichever occurs first. The recorded inve

stment as of period end is inclusive of all partial

paydowns and charge-offs since the modification

Payment

default

is

defined

as

a

restructured

loan

becoming

days

past

due

after

being

modified,

foreclosed

or

charged-off,

whichever occurs

first. During

31,2024, the

of

loans modified

for borrowers

under

financial difficulties that were subject to payment default and that had been modified during the

twelve months preceding the default

date was $

million. The amount was not considered material

for the quarter ended March 31, 2023.

For the quarter ended March 31,2024, extension of maturity and the combination of interest rate reduction and extension of maturity

to

$

million

and

$

of

the

of

loans modified

for borrowers

under financial

difficulties that were subject to payment default during

the year preceding the default date.

Credit Quality

The risk

rating system

provides for

the assignment

of ratings

at the

obligor level

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

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

March

31,

and

31,

and

the

gross

by

vintage year. For

the definitions of the obligor risk ratings,

refer to the Credit Quality section of

Note 9 to the Consolidated Financial

Statements included in the 2023 Form 10-K:

Loans

Loans

Prior

Years

Total

BPPR

Pass

$

41,585

$

37,808

$

138,013

$

21,271

$

20,401

$

28,387

$

$

$

287,465

Watch

6,112

6,112

4,743

5,297

4,777

4,777

$

41,585

$

37,808

$

138,567

$

21,271

$

20,401

$

44,019

$

$

$

303,651

Pass

$

24,000

$

308,584

$

854,075

$

558,216

$

356,421

$

594,172

$

3,896

$

$

2,699,364

Watch

2,590

5,144

21,840

39,832

70,133

42,111

6,879

24,626

73,034

146,650

1,011

1,260

2,164

71,074

4,650

80,338

$

24,000

$

354,296

$

862,941

$

588,165

$

380,425

$

778,112

$

8,546

$

$

2,996,485

Pass

$

56,699

$

94,564

$

154,134

$

224,909

$

49,919

$

369,657

$

8,083

$

$

957,965

Watch

1,965

44,450

9,048

4,556

61,509

1,003

122,780

21,683

20,611

1,101

41,356

85,693

1,238

15,848

4,962

142,903

80,416

14,017

259,545

$

57,109

$

98,709

$

236,115

$

259,530

$

198,479

$

553,047

$

23,103

$

$

1,426,092

$

$

$

$

$

$

2,785

$

$

$

2,785

Pass

$

142,966

$

975,917

$

627,072

$

339,891

$

236,641

$

368,158

$

1,202,822

$

$

3,893,467

Watch

4,012

66,951

55,844

162,005

3,730

77,782

216,159

586,483

5,472

36,829

2,867

41,837

73,721

161,409

1,051

2,182

8,570

15,962

31,756

43,282

103,221

Loss

$

147,819

$

1,049,391

$

721,927

$

510,726

$

259,254

$

519,565

$

1,536,441

$

$

4,745,123

$

$

$

$

$

$

5,131

$

1,332

$

$

6,669

Pass

$

$

29,488

$

24,618

$

19,243

$

10,696

$

1,766

$

37,970

$

$

123,781

Watch

17,187

11,801

$

8,917

37,905

1,038

1,038

$

$

29,488

$

41,805

$

32,082

$

10,696

$

1,766

$

46,887

$

$

162,724

Pass

$

192,679

$

759,057

$

432,327

$

415,791

$

255,350

$

4,355,912

$

$

$

6,411,116

1,181

70,206

72,435

$

192,679

$

760,238

$

432,646

$

416,170

$

255,700

$

4,426,118

$

$

$

6,483,551

$

$

$

$

$

$

$

$

$

Loans

Loans

Prior

Years

Total

BPPR

Leasing

Pass

$

210,843

$

570,183

$

456,718

$

287,444

$

148,154

$

84,804

$

$

$

1,758,146

1,980

2,580

1,129

7,169

Loss

$

210,843

$

571,166

$

458,698

$

290,024

$

148,732

$

85,950

$

$

$

$

$

1,071

$

1,966

$

1,082

$

$

$

$

$

4,850

Pass

$

$

$

$

$

$

$

1,118,278

$

$

1,118,278

23,837

23,837

Loss

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

16,396

$

$

16,396

HELOCs

Pass

$

$

$

$

$

$

$

2,562

$

$

2,562

$

$

$

$

$

$

$

2,569

$

$

2,569

$

$

$

$

$

$

$

$

$

Pass

$

200,218

$

745,798

$

417,333

$

158,860

$

48,662

$

134,930

$

$

21,077

$

1,726,878

2,864

4,243

1,551

9,452

1,033