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

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

customers

and

our

business;

●

the impact of the pending debt

restructuring proceedings under Title III of the

Puerto Rico Oversight, Management and

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

public sector

deposits held

at

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

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

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 our

Quarterly Reports

on Form

10-Q 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:

$

427,594

$

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

30,843

31,568

Debt securities available-for-sale, at fair

value:

Pledged securities with creditors’ right to repledge

31,500

72,827

Other debt securities available-for-sale

17,154,623

16,656,217

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

Pledged securities with creditors’ right to repledge

27,154

27,083

Other debt securities held-to-maturity

7,838,140

8,167,252

Debt securities held-to-maturity (fair

value 2024 - $

; 2023 - $

)

7,865,294

8,194,335

Less – Allowance for credit losses

5,430

5,780

Debt securities held-to-maturity, net

Equity securities (realizable value 2024 -

$

198,920

; 2023 - $

194,641

)

198,191

193,726

Loans held-for-sale, at fair value

5,509

4,301

36,599,612

35,420,879

Less – Unearned income

404,645

355,908

744,320

729,341

Total loans held-in-portfolio, net

35,450,647

34,335,630

Premises and equipment, net

624,376

565,284

Other real estate

63,028

80,416

Accrued income receivable

257,406

263,433

Mortgage servicing rights, at fair value

108,827

118,109

1,767,919

2,014,564

804,428

804,428

Other intangible assets

7,531

9,764

$

$

Liabilities and Stockholders’ Equity

Liabilities:

Non-interest bearing

$

$

Interest bearing

48,392,430

48,198,619

55,360

91,384

918,376

986,948

890,323

914,627

Total liabilities

65,532,560

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;

104,832,712

shares issued (2023 -

104,767,348

) and

shares outstanding (2023 -

72,153,621

)

1,048

1,048

Surplus

4,843,399

Retained earnings

4,194,851

Treasury stock - at cost,

33,045,363

shares (2023 -

32,613,727

)

(2,018,957)

Accumulated other comprehensive loss, net

of tax

(1,895,531)

Total stockholders’ equity

Total liabilities and stockholders’ equity

$

$

The accompanying notes are an integral part of

these Consolidated Financial Statements.

OF OPERATIONS

Interest income:

Loans

$

664,731

$

596,886

$

1,952,200

$

1,708,216

96,061

99,286

272,893

265,785

176,656

148,614

528,403

403,814

Total interest income

937,448

844,786

2,753,496

2,377,815

Interest expense:

350,985

294,121

730,824

1,430

1,478

3,748

5,987

Long-term debt

12,560

15,167

37,799

43,660

Total interest expense

364,975

310,766

780,471

572,473

534,020

71,448

45,117

190,840

129,946

Net interest income after provision for credit losses

501,025

488,903

1,500,689

1,467,398

Non-interest income:

38,315

37,318

113,283

109,777

Other service fees

98,748

93,407

289,883

277,748

Mortgage banking activities (Refer to Note 9)

2,670

5,393

12,753

15,109

Net (loss) gain, including impairment on equity securities

(546)

(1,319)

1,165

Net gain on trading account debt securities

1,455

Net loss on sale of loans on loans held-for-sale, including

valuation adjustments

(44)

(44)

Adjustments to indemnity reserves on loans sold

(187)

(31)

Other operating income

23,270

24,762

75,173

77,625

Total non-interest income

164,082

159,549

494,206

481,981

Operating expenses:

Personnel costs

201,856

193,152

614,657

583,380

Net occupancy expenses

28,031

28,100

83,764

81,304

Equipment expenses

9,349

8,905

28,578

26,878

Other taxes

17,757

8,590

47,465

41,290

Professional fees

26,708

38,514

93,370

122,077

Technology and software expenses

88,452

72,930

247,666

213,843

Processing and transactional services

34,320

37,899

107,610

108,609

Communications

5,229

4,220

14,143

12,483

Business promotion

25,637

23,075

72,075

67,029

Deposit insurance

10,433

8,932

44,901

24,600

Other real estate owned (OREO) income

(2,674)

(5,189)

(13,745)

(10,197)

21,519

23,061

77,293

70,274

2,233

2,385

23,000

23,000

Total operating expenses

467,321

465,984

Income before income tax

197,786

182,468

574,885

582,424

42,463

45,859

138,490

135,676

Net Income

$

155,323

$

136,609

$

436,395

$

446,748

Net Income Applicable to Common Stock

$

154,970

$

136,256

$

435,336

$

445,689

Net Income per Common Share – Basic

$

2.16

$

1.90

$

6.06

$

6.22

Net Income per Common Share – Diluted

$

2.16

$

1.90

$

6.05

$

6.21

The accompanying notes are an integral part of

these Consolidated Financial Statements.

OF COMPREHENSIVE INCOME (LOSS)

Quarters ended,

Nine months ended,

$

155,323

$

136,609

$

436,395

$

446,748

Other comprehensive income (loss) before

tax:

Foreign currency translation adjustment

(976)

(3,240)

(220)

Amortization of net losses of pension and

3,618

4,814

10,854

14,440

Unrealized holding gains (losses) on debt securities

arising during the period

380,927

(234,827)

330,319

(99,360)

Amortization of unrealized losses of debt

securities transfer from available-for-

45,331

43,783

133,761

128,726

Unrealized net gains (losses) on cash flow

hedges

(30)

Reclassification adjustment for net gains( losses)

included in net income

(41)

Other comprehensive income (loss) before

tax

430,491

(187,206)

471,694

43,515

(65,203)

(18,301)

(89,157)

(52,529)

Total other comprehensive income (loss), net of tax

365,288

382,537

(9,014)

Comprehensive income (loss), net of tax

$

520,611

$

(68,898)

$

818,932

$

437,734

Tax effect allocated to each component of other comprehensive

income (loss):

Nine months ended,

Adjustment of pension and postretirement

benefit plans

$

$

$

$

Amortization of net losses of pension and

(1,357)

(1,805)

(4,070)

(5,415)

Unrealized holding losses on debt securities

arising during the period

(54,779)

(7,740)

(58,334)

(21,396)

Amortization of unrealized losses of debt

securities transfer from available-for-

(9,067)

(8,756)

(26,753)

(25,744)

Unrealized net (losses) gains on cash flow

hedges

Reclassification adjustment for net (gains)

losses included in net income

$

(65,203)

$

(18,301)

$

(89,157)

$

(52,529)

The accompanying notes are an integral

part of the Consolidated Financial Statements.

OF CHANGES IN STOCKHOLDERS’ EQUITY

other

Common

Preferred

Retained

stock

stock

Surplus

stock

(loss) income

Total

Balance at June 30, 2023

$

1,047

$

22,143

$

4,795,581

$

4,093,284

$

(2,018,611)

$

(2,328,435)

$

4,565,009

136,609

136,609

1,599

1,600

[1]

(39,675)

(39,675)

(353)

(353)

(250)

(250)

(9)

Other comprehensive loss, net of tax

$

1,048

$

22,143

$

4,797,364

$

4,189,865

$

(2,018,870)

$

$

4,457,608

Balance at June 30, 2024

$

1,048

$

22,143

$

4,852,747

$

4,385,522

$

(2,010,500)

$

(1,878,282)

$

5,372,678

155,323

155,323

1,704

1,704

[1]

(44,614)

(44,614)

(353)

(353)

(59,147)

(59,147)

(582)

(365)

Other comprehensive income, net of tax

365,288

365,288

$

1,048

$

22,143

$

$

$

$

$

[1]

Dividends declared per common share during the quarter

ended September 30, 2024 - $

0.62

0.55

).

OF CHANGES IN STOCKHOLDERS’ EQUITY

other

Common

Preferred

Retained

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

446,748

446,748

4,716

4,717

[1]

(118,924)

(118,924)

(1,059)

(1,059)

(4,491)

(4,491)

1,655

15,799

17,454

Other comprehensive loss, net of tax

(9,014)

(9,014)

$

1,048

$

22,143

$

4,797,364

$

4,189,865

$

(2,018,870)

$

$

4,457,608

Balance at December 31, 2023

$

1,048

$

22,143

$

4,843,399

$

4,194,851

$

(2,018,957)

$

(1,895,531)

$

436,395

436,395

5,271

5,271

[1]

(134,309)

(134,309)

(1,059)

(1,059)

(65,923)

(65,923)

5,199

15,450

20,649

Other comprehensive income, net of tax

382,537

382,537

$

1,048

$

22,143

$

$

$

$

$

[1]

Dividends declared per common share during the nine months

ended September 30, 2024 - $

1.86

1.65

).

For the period 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

65,364

82,789

Balance at end of period

104,832,712

104,740,311

Treasury stock

(33,045,363)

(32,612,716)

Common Stock – Outstanding

72,127,595

The accompanying notes are an integral part of these Consolidated

OF CASH FLOWS

Cash flows from operating activities:

$

436,395

$

446,748

Adjustments to reconcile net income to net cash provided

by operating activities:

190,840

129,946

23,000

2,233

2,385

Depreciation and amortization of premises and equipment

46,720

43,180

Net accretion of discounts and amortization of premiums and

deferred fees

(196,221)

(22,495)

Interest capitalized on loans subject to the temporary payment

moratorium or loss mitigation alternatives

(5,933)

(7,956)

Share-based compensation

17,853

15,079

Fair value adjustments on mortgage servicing rights

10,280

11,135

Adjustments to indemnity reserves on loans sold

(783)

Earnings from investments under the equity method, net

of dividends or distributions

(12,723)

(17,387)

Deferred income tax expense (benefit)

19,247

(13,539)

(Gain) loss on:

Disposition of premises and equipment and other productive

assets

(7,651)

(9,744)

Proceeds from insurance claims

(145)

Sale of loans, including valuation adjustments on loans

held-for-sale and mortgage banking activities

(396)

Sale of foreclosed assets, including write-downs

(13,590)

(18,137)

Acquisitions of loans held-for-sale

(5,810)

(6,678)

Proceeds from sale of loans held-for-sale

28,697

35,286

Net originations on loans held-for-sale

(31,284)

(60,285)

Net decrease (increase) in:

Trading debt securities

10,445

29,415

(7,337)

(7,481)

Accrued income receivable

6,032

(17,638)

15,425

(981)

Net (decrease) increase in:

Interest payable

(4,785)

8,009

Pension and other postretirement benefits obligation

5,937

11,985

(28,352)

(100,887)

Total adjustments

38,844

26,275

Net cash provided by operating activities

475,239

473,023

Cash flows from investing activities:

Net decrease (increase) in money market investments

469,042

(775,597)

Purchases of investment securities:

Available-for-sale

(24,469,345)

(12,665,449)

Held-to-maturity

(8,615)

Equity

(2,370)

(18,279)

Proceeds from calls, paydowns, maturities and redemptions

of investment securities:

Available-for-sale

24,670,995

13,138,765

Held-to-maturity

508,511

308,129

Proceeds from sale of investment securities:

Equity

5,242

30,926

Net disbursements on loans

(833,899)

(1,609,387)

Proceeds from sale of loans

18,266

133,078

Acquisition of loan portfolios

(510,556)

(556,659)

Return of capital from equity method investments

Payments to acquire equity method investments

(1,250)

(1,500)

Acquisition of premises and equipment and other productive

assets

(153,085)

(133,598)

Proceeds from insurance claims

Proceeds from sale of:

Premises and equipment and other productive assets

5,570

6,620

Foreclosed assets

82,986

84,446

Net cash used in investing activities

(209,614)

(2,066,726)

Cash flows from financing activities:

Net increase (decrease) in:

46,924

2,085,956

(36,024)

(55,538)

Other short-term borrowings

(365,000)

Payments of notes payable

(69,570)

(321,000)

Principal payments of finance leases

(2,717)

(3,557)

Proceeds from issuances of notes payable

437,411

Proceeds from issuances of common stock

5,271

4,716

Dividends paid

(135,495)

(119,715)

Net payments for repurchase of common stock

(59,556)

(414)

Payments related to tax withholding for share-based compensation

(6,367)

(4,077)

Net cash (used in) provided by financing activities

(257,534)

1,658,782

Net increase in cash and due from banks, and restricted

cash

8,091

65,079

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

$

435,666

$

541,238

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 -

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 U.S.

and British Virgin

Islands. In Puerto

Rico, the Corporation

provides retail, mortgage,

and

commercial banking services,

through its principal

banking subsidiary,

Banco Popular de

Puerto Rico (“BPPR”),

as well as

broker-

dealer,

auto and

and financing,

and insurance

services through

specialized subsidiaries.

In the

U.S. mainland,

the

Corporation provides

retail, mortgage,

commercial banking

services, as

well as

and

financing, 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

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.

these

should

be

read

in

conjunction

with

the

audited

Statements of

for the

year ended

2023,

included in

the 2023

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 the

included $

22.9

expenses, of

which $

16.5

million

was

reflected in income

tax expense and

$

6.4

million was 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)

in

Puerto

Rico,

a

foreign

corporation

for

U.S.

tax

purposes.

The

corrected

errors

for

income

tax

expense

that

should

have

been

of

$

5.5

million

and

$

5.4

million

in

the

years

and

2022,

and

an

of

$

5.6

in

the

years

prior

to

The

$

6.4

million

as

other

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

deferred tax

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

revenues

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

Update

("ASU")

2023-02

in

March

2023,

which

amends

("ASC")

Topic

by

permitting the election to apply the

proportional amortization method to account

for

tax

equity

that

generate

income

tax

credits

through

in

low-income-housing

tax

credit

(LIHTC)

structures

and

other

tax

credit

programs

if

certain

are

met.

The

ASU

also

eliminates

the

application

of

the

ASC

Subtopic 323-740 to LIHTC investments not

accounted

for

using

the

proportional

method

and

instead

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

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 2024-03,

Income Statement—

Reporting Comprehensive

Income—Expense

Disaggregation

Disclosures (Subtopic

220-40): Disaggregation of

Income Statement

Expenses

The

FASB

issued

ASU

2024-03

in

2024,

which

public

to

disclose

about

specific

expense

categories

in

the

notes to

financial statements

at interim

and

annual

periods

to

improve

financial transparency.

January 1, 2027

For interim periods

within fiscal years

beginning after

January 1, 2028

any

impact

that

the

of

this

will

have

on

its

and

and

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

Codification.

The

ASU

intends

to

simplify

the

and

distinguish

between

nonauthoritative

and authoritative guidance.

be

by

the

of

this

ASU

since it does

not provide for accounting

changes

or

new

or

requirements.

The

ASU

eliminated

references

within

the

to

the

concept

statements,

which

is

considered non-authoritative guidance.

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.

be

by

the

of

this

ASU

since the performance

share awards of

the

continue

to

meet

the

requirements of ASC 718-10-15-3.

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

at

fair

value

in

the

statement

of

each

period

with

changes

from

remeasurement

being

in

net

income.

The

ASU

also

enhanced

for

both

annual

and

interim

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 does not hold crypto-assets.

Accounting Standards Updates Not Yet Adopted

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 interim periods

within fiscal years

beginning after

any

impact

that

the

of

this

will

have

on

its

and

and

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

or

requirements

of

various

subtopics

in

the

with

the

purpose

of

aligning

U.S.

GAAP

requirements

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.

be

by

the

of

this

ASU

since

it

is

subject

to

SEC's

current

and

requirements under Regulation S-X and

S-K.

FASB ASU 2023-05,

Business Combinations -

Joint Venture Formations

(Subtopic 805-60) -

Recognition and initial

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.

be

by

the

of

this

ASU

but it

will consider this

guidance for the

initial

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.

Average reserve

balances in BPPR

amounted to $

2.1

billion at

$

2.7

billion). Cash and

due from banks,

as well

as other highly

liquid securities, are

used to cover

these required average

reserve

At

30,

2024,

the

held

$

million

in

assets

in

the

form

of

funds

deposited

in

money

market

accounts, debt

securities available for

sale and

equity securities (December

• $

The restricted

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

tables

present

the

amortized

cost,

gross

gains

and

losses,

fair

value,

weighted

average

yield

and

contractual maturities of debt securities available-for-sale

at September 30, 2024 and December 31,

Gross

Gross

Fair

average

cost

gains

losses

value

yield

$

8,914,560

$

1,555

$

45,154

$

8,870,961

3.77

%

2,715,749

3,393

65,673

2,653,469

2.35

11,630,309

4,948

110,827

11,524,430

3.44

12,176

11,783

1.54

16,512

15,749

2.25

107,656

7,038

101,021

2.76

mortgage obligations - federal agencies

136,344

8,194

128,553

2.59

Mortgage-backed securities - federal agencies

1,393

1,379

1.69

74,263

1,993

72,281

2.39

781,628

33,408

748,464

2.36

5,603,282

1,480

895,746

4,709,016

1.67

securities - federal agencies

6,460,566

1,735

931,161

5,531,140

1.76

Other

4.00

1,500

1,500

8.50

Total other

2,000

2,000

7.38

[1]

$

18,229,219

$

7,086

$

1,050,182

$

2.84

%

[1]

12.9

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 $

12.1

billion serve as collateral for

public funds.

The Corporation had unpledged Available

for Sale securities with a fair value of

$

4.2

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.

Securities

not

due

on

a

single

date,

such

as

and

obligations,

are

based

on

the

period

of

final

maturity.

The

of

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 September 30, 2024, the Corporation did

not intend to sell or believed

it was more likely than not

that it would be required to

sell

available-for-sale. There were

no

available-for-sale sold during

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

September 30, 2024 and December 31, 2023.

Less than 12 months

12 months or more

Total

Gross

Gross

Gross

Fair

Fair

Fair

value

losses

value

losses

value

losses

$

651,502

$

2,369

$

4,457,595

$

108,458

$

5,109,097

$

110,827

1,909

109,743

8,192

111,652

8,194

27,420

5,428,612

930,592

5,456,032

931,161

available-for-sale in an unrealized loss position

$

680,831

$

2,940

$

9,995,950

$

1,047,242

$

10,676,781

$

1,050,182

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

30,

2024,

the

of

debt

gross

losses

of

$

1.1

billion

(December 31,

2023 -

$

1.4

billion), driven

mainly by

mortgage-backed securities,

which have

been impacted

by a

decline in

fair

value as a result of the rising interest rate

environment.

The portfolio of available-for-sale debt securities is comprised mainly of U.S

Treasuries

and obligations

U.S. Government,

its agencies

or government

including Federal

National

Association

(“FNMA”),

Federal

Home

Loan

(“FHLMC”)

and

National

Association (“GNMA”). As

Note 2

of the

2023 Form

10-K, these securities

carry an

explicit or

implicit guarantee from

the

U.S.

Government,

are

highly

rated

by

major

rating

agencies,

and

have

a

long

history

of

no

credit

losses.

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 maturities

of debt

securities held-to-maturity

Value

Gross

Gross

Book

[1]

for Credit

Net of

Fair

average

cost

Value

Losses

gains

losses

value

yield

$

599,518

$

599,518

$

$

599,518

$

$

4,538

$

594,980

2.70

%

7,725,178

7,200,448

7,200,448

62,265

2,958

7,259,755

1.31

8,324,696

62,265

7,496

1.41

Obligations of Puerto Rico, States and

2,440

2,440

2,433

2,435

6.39

16,474

16,474

16,390

16,369

3.69

5.81

38,276

38,276

5,317

32,959

3,561

2,144

34,376

1.42

Total obligations of

Puerto Rico, States and

57,845

57,845

5,430

52,415

3,649

2,229

53,835

2.33

1,523

1,523

1,523

1,398

2.87

mortgage obligations -

federal agencies

1,523

1,523

1,523

1,398

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]

$

8,390,024

$

7,865,294

$

5,430

$

$

65,914

$

9,850

$

1.42

%

[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]

7.8

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 $

.0 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

maturities of

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

Note

of

2023 Form

10-K,

U.S. Treasury

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.

At

2023, the

“Obligations of

Puerto Rico,

States and

political subdivisions”

held-to-maturity,

includes securities

issued by

municipalities of

generally not

rated by

a credit

rating agency.

This includes

$

general and

special obligation

bonds issued

by three

municipalities of

Puerto Rico,

payable

primarily from certain property

taxes imposed by the

issuing municipality (December 31,

million). 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

associated with

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

$

1,555

$

2,255

Pass

11,060

16,565

Total

$

12,615

$

18,820

the portfolio

of “Obligations

of Puerto

Rico, States

and political

subdivisions” also

includes $

issued

by

the

Puerto

Rico

Housing

Finance

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

31, 2023 -

$

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

borrowers. As

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

consider

the

when

estimating

the

credit

losses

associated with this portfolio.

A

deterioration of

or

of

the fiscal

health of

the

Government of

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

for additional

exposure to

Rico Government.

2024 and December 31,

2023, the portfolio of

“Obligations of Puerto Rico,

States and political subdivisions”

also

$

million

in securities

issued

by the

HFA

for

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 September 30, 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

for the quarters and nine months ended

September 30, 2024 and September 30, 2023:

For the quarters ended September 30,

Obligations of Puerto Rico, States and political subdivisions

Allowance for credit losses:

$

6,251

$

6,145

(821)

(88)

Securities charged-off

$

5,430

$

6,057

For the nine months ended September 30,

Obligations of Puerto Rico, States and political subdivisions

Allowance for credit losses:

$

5,780

$

6,911

(350)

(854)

Securities charged-off

$

5,430

$

6,057

The

for

credit

losses

for

the

Obligations

of

Puerto

Rico,

States

and

political

$

0.1

million

for

securities issued by municipalities of

Puerto Rico, and $

5.3

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 related

to

loans, interest

recognition and

allowance for

credit

losses

refer to

Note

–

Summary of Significant Accounting Policies of the 2023

Form 10-K.

quarter and

recorded purchases

(including repurchases)

of

loans

to

$

million

and

$

30,

$

million

and

$

respectively). The

Corporation did

no

t purchase

consumer loans

quarter and

(during the quarter and nine months ended September 30, 2023 - $

million, respectively). During the quarter and

purchased $

$

million commercial

loans, respectively

(September 30, 2023 - $

The Corporation performed whole-loan sales involving approximately $

million of residential mortgage loans during

the

quarter

and

nine

months

ended

30,

2024,

30,

$

million

and

$

respectively). During the

nine months ended

September 30, 2024,

the Corporation performed

sales of commercial

loans, including

loan participations

$

million. The

Corporation did

no

t perform

sales of

commercial loans

September 30, 2024 (during the quarter and nine

months ended September 30, 2023 - $

During the quarter and nine months ended September 30, 2024, the Corporation

securitized approximately $

of

loans

into

GNMA

30,

$

million

and

$

respectively), and $

million, respectively, of

mortgage loans into FNMA mortgage-backed securities (September 30,

Delinquency status

The following tables present the

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

September 30, 2024 and December 31, 2023.

BPPR

30-59

60-89

90 days

Total

days

days

or more

Current

loans

loans

$

1,866

$

$

$

1,953

$

303,581

$

305,534

$

$

7,493

7,837

3,140,418

3,148,255

7,493

1,544

1,681

26,600

29,825

1,374,025

1,403,850

26,600

19,074

6,694

23,819

49,587

5,126,538

5,176,125

19,639

4,180

190,343

190,343

246,220

122,592

359,986

728,798

5,966,619

6,695,417

157,920

202,066

Leasing

19,840

4,661

7,367

31,868

1,855,184

7,367

16,210

11,415

27,214

54,839

1,132,050

27,214

2,131

2,131

21,726

13,153

21,007

55,886

1,698,195

1,754,081

20,992

Auto

104,363

26,090

47,828

178,281

3,640,326

47,828

Other

1,188

2,415

154,775

157,190

Total

$

431,740

$

186,960

$

522,589

$

1,141,289

$

24,584,185

$

25,725,474

$

288,815

$

233,774

30-59

60-89

90 days

Total

days

days

or more

Current

loans

loans

$

1,060

$

$

8,700

$

9,760

$

2,090,008

$

2,099,768

$

8,700

$

10,330

3,013

2,282

15,625

2,021,501

2,037,126

2,282

1,825

22,248

24,323

1,664,220

1,688,543

22,248

11,478

2,312

5,443

19,233

2,205,195

2,224,428

5,246

34,349

34,349

888,615

922,964

3,640

28,434

32,973

1,264,958

1,297,931

28,434

Home equity lines of

credit

3,834

4,892

62,668

67,560

3,834

1,696

2,015

1,837

5,548

113,546

119,094

1,837

Other

11,555

12,075

Total

$

25,797

$

48,646

$

72,780

$

147,223

$

10,322,270

$

10,469,493

$

72,583

$

30-59

60-89

90 days

Total

days

days

or more

Current

[2] [3]

loans

loans

$

2,926

$

$

8,787

$

11,713

$

2,393,589

$

$

8,787

$

10,500

3,187

9,775

23,462

5,161,919

9,775

1,794

3,506

48,848

54,148

3,038,245

48,848

30,552

9,006

29,262

68,820

7,331,733

24,885

4,377

34,349

34,349

1,078,958

[1]

247,119

126,232

388,420

761,771

7,231,577

186,354

202,066

Leasing

19,840

4,661

7,367

31,868

1,855,184

7,367

16,210

11,415

27,214

54,839

1,132,054

27,214

3,834

4,892

64,799

69,691

3,834

23,422

15,168

22,844

61,434

1,811,741

22,829

Auto

104,363

26,090

47,828

178,281

3,640,326

47,828

Other

1,008

1,190

2,935

166,330

169,265

Total

$

457,537

$

235,606

$

595,369

$

1,288,512

$

34,906,455

$

$

361,398

$

233,971

[1]

At September 30, 2024, mortgage loans held-in-portfolio

include $

2.5

billion of loans that carry certain guarantees from

the FHA or the VA, for

which the Corporation’s policy is to exclude them

from non-performing status, of which $

202.2

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 September

30,

2024. The Corporation has approximately $

million in reverse mortgage loans in Puerto Rico

which are guaranteed by FHA, but which are

currently not accruing interest at September 30, 2024.

[2]

Loans held-in-portfolio are net of $

million in unearned income and exclude $

million in loans held-for-sale.

[3]

14.7

billion pledged to secure credit facilities and public funds

that the secured parties are not permitted to sell or repledge

the collateral,

7.3

billion were pledged at the Federal Home Loan Bank

("FHLB") as collateral for borrowings and $

7.4

billion at the Federal Reserve

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

30, 2024, the Corporation had an available borrowing

facility with the FHLB and

the discount window of Federal Reserve Bank of New York

of $

.0 billion and $

5.8

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]

At December 31, 2023, mortgage loans held-in-portfolio

include $

2.2

billion of loans that carry certain guarantees from

the FHA or the VA, for

which the Corporation’s policy is to exclude them

from non-performing status, of which $

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 December

31,

2023. The Corporation has approximately $

million in reverse mortgage loans in Puerto Rico

which are guaranteed by FHA, but which are

currently not accruing interest at December 31, 2023.

[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,

7.0

billion were pledged at the FHLB as collateral for borrowings

and $

7.2

billion at the 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 FRB 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.

Loans with

a delinquency

status of

90 days

as of

2024 include

$

loans previously

pooled into

GNMA securities (December 31, 2023 -

$

million). 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

serviced

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 September 30, 2024

and December 31, 2023 by

class of loans:

BPPR

with no

with

with no

with

with no

with

$

$

$

8,700

$

$

8,700

$

3,514

3,979

1,332

4,846

4,929

17,870

8,730

22,248

40,118

8,730

9,020

10,619

5,246

9,020

15,865

68,248

89,672

28,228

68,454

117,900

Leasing

6,922

6,922

HELOCs

3,834

3,834

3,649

17,343

1,837

3,649

19,180

Auto

2,077

45,751

2,077

45,751

Other

Total

$

104,823

$

183,992

$

32,486

$

40,097

$

137,309

$

224,089

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 September 30, 2024 include $

million in collateral dependent loans (December

31,

2023 -

$

$

on non-accrual

loans during

months

ended September 30, 2024 (September 30, 2023

• $

The following tables present the amortized cost basis

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

based on the

of the

collateral less

cost to

sell, by

class of

loans and

type of

collateral as

of September

31,

2023:

Real Estate

Auto

Equipment

Other

Total

BPPR

$

1,293

$

$

$

$

1,293

168,887

168,887

23,683

23,683

3,304

12,177

15,481

75,374

75,374

Leasing

1,367

1,368

3,961

3,961

Auto

15,173

15,173

Other

$

277,270

$

16,540

$

$

12,213

$

306,024

$

19,270

$

$

$

$

19,270

1,332

1,332

22,248

22,248

1,529

1,529

$

44,379

$

$

$

$

44,414

$

20,563

$

$

$

$

20,563

170,219

170,219

45,931

45,931

3,304

12,177

15,516

76,903

76,903

Leasing

1,367

1,368

3,961

3,961

Auto

15,173

15,173

Other

Inc.

$

321,649

$

16,540

$

$

12,213

$

350,438

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 and nine months ended September 30,

2024 and 2023, 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:

For the quarter ended

For the nine months

Purchase price of loans at acquisition

$

$

Allowance for credit losses at acquisition

Par value of acquired loans at acquisition

$

$

For the quarter ended

For the nine months

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.

At

30,

2024,

the

the

ACL

by

weighting

the

outputs

of

optimistic,

baseline,

and

scenarios. Among

the three

scenarios used

to estimate

the ACL,

the baseline

is assigned

the highest

probability,

followed by

the

scenario

given

the

uncertainties

in

the

outlook

and

downside

risk.

The

weightings

applied

are

subject

to

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

framework.

These

include

the

reasonable

and

supportable

period

as

well

as

the

reversion window.

The following tables

present the changes in

the ACL of

loans held-in-portfolio and

unfunded commitments for the

quarter and nine

months ended September 30, 2024 and 2023.

BPPR

Ending

Balance

Balances

$

3,303

$

(417)

$

$

$

$

2,886

53,386

3,344

(69)

56,720

39,375

(2,418)

(2)

1,556

38,511

111,263

16,597

(6,190)

1,461

123,131

207,327

17,106

(6,261)

3,076

221,248

3,638

(970)

1,036

3,704

73,900

(5,221)

(208)

4,102

72,576

Leasing

14,385

3,725

(3,630)

1,374

15,854

86,313

21,238

(17,503)

2,646

92,694

(90)

(82)

94,021

20,232

(24,712)

2,526

92,067

Auto

157,449

20,765

(23,011)

6,110

161,313

Other

6,489

(728)

6,649

344,355

62,507

(66,036)

11,966

352,792

$

643,605

$

77,147

$

$

(76,135)

$

21,554

$

666,174

$

5,540

$

$

$

$

$

6,356

2,095

2,468

$

7,635

$

1,189

$

$

$

$

8,824

[1] Allowance for credit losses of unfunded commitments

is presented as part of Other Liabilities in the Consolidated

Ending

Balance

Balance

$

7,877

$

(1,126)

$

$

$

6,756

10,849

(54)

10,910

18,815

(4,430)

14,404

15,219

(1,617)

(613)

13,230

52,760

(7,120)

(667)

45,300

9,251

9,510

9,389

(361)

9,074

1,643

(4)

1,785

13,427

2,799

(4,442)

12,475

Other

(28)

15,072

2,844

(4,474)

14,262

$

86,472

$

(4,378)

$

(5,141)

$

1,193

$

78,146

$

2,850

$

(1,080)

$

$

$

1,770

8,399

(609)

7,790

$

11,249

$

(1,689)

$

$

$

9,560

[1]

Ending

Balance

Balance

$

11,180

$

(1,543)

$

$

$

$

9,642

64,235

3,397

(123)

67,630

58,190

(6,848)

(2)

1,575

52,915

126,482

14,980

(6,803)

1,702

136,361

260,087

9,986

(6,928)

3,403

266,548

12,889

(711)

1,036

13,214

83,289

(5,582)

(208)

4,148

81,650

Leasing

14,385

3,725

(3,630)

1,374

15,854

86,313

21,238

(17,503)

2,646

92,694

1,726

(68)

(86)

1,854

107,448

23,031

(29,154)

3,217

104,542

Auto

157,449

20,765

(23,011)

6,110

161,313

Other

6,491

(756)

6,651

359,427

65,351

(70,510)

12,786

367,054

$

730,077

$

72,769

$

$

(81,276)

$

22,747

$

744,320

$

8,390

$

(264)

$

$

$

$

8,126

10,494

(236)

10,258

$

18,884

$

(500)

$

$

$

$

18,384

[1]

BPPR

Ending

Balance

Charge-off

Balance

$

3,614

$

(729)

$

$

$

$

2,886

53,754

2,607

(69)

56,720

40,637

(2,567)

(2,787)

3,228

38,511

107,577

31,413

(20,931)

5,072

123,131

205,582

30,724

(23,787)

8,729

221,248

5,294

(2,626)

1,036

3,704

72,440

(11,959)

(999)

13,068

72,576

Leasing

9,708

14,787

(12,321)

3,680

15,854

80,487

54,734

(50,318)

7,791

92,694

(373)

101,181

55,987

(72,354)

7,253

92,067

Auto

157,931

44,386

(59,787)

18,783

161,313

Other

7,132

(2,072)

6,649

346,834

155,814

(184,904)

35,048

352,792

$

639,858

$

186,740

$

$

(222,011)

$

61,561

$

666,174

$

5,062

$

1,294

$

$

$

$

6,356

1,618

2,468

$

6,680

$

2,144

$

$

$

$

8,824

[1]

Ending

Balance

Balance

$

10,126

$

(2,939)

$

(441)

$

$

6,756

11,699

(903)

(54)

10,910

16,227

(1,925)

14,404

14,779

(2,372)

13,230

52,831

(5,548)

(2,867)

45,300

7,392

2,018

9,510

10,774

(1,788)

(18)

9,074

1,875

(741)

(25)

1,785

16,609

8,585

(14,750)

2,031

12,475

Other

(77)

18,486

7,890

(14,852)

2,738

14,262

$

89,483

$

2,572

$

(17,737)

$

3,828

$

78,146

$

1,851

$

(81)

$

$

$

1,770

8,446

(656)

7,790

(29)

$

10,326

$

(766)

$

$

$

9,560

[1]

Ending

Balance

Balance

$

13,740

$

(3,668)

$

$

(441)

$

$

9,642

65,453

1,704

(123)

67,630

56,864

(4,492)

(2,787)

3,330

52,915

122,356

31,632

(23,303)

5,676

136,361

258,413

25,176

(26,654)

9,613

266,548

12,686

(608)

1,136

13,214

83,214

(13,747)

(1,017)

13,174

81,650

Leasing

9,708

14,787

(12,321)

3,680

15,854

80,487

54,734

(50,318)

7,791

92,694

1,978

(706)

(398)

1,854

117,790

64,572

(87,104)

9,284

104,542

Auto

157,931

44,386

(59,787)

18,783

161,313

Other

7,134

(2,149)

6,651

365,320

163,704

(199,756)

37,786

367,054

$

729,341

$

189,312

$

$

(239,748)

$

65,389

$

744,320

$

6,913

$

1,213

$

$

$

$

8,126

10,064

10,258

(29)

$

17,006

$

1,378

$

$

$

$

18,384

[1]

BPPR

Ending

Balance

Balance

$

4,787

$

(1,306)

$

$

$

$

3,481

53,366

(326)

(27)

53,208

41,901

(242)

(446)

41,493

81,637

(4,605)

(2,311)

12,858

87,579

181,691

(6,479)

(2,784)

13,333

185,761

9,554

(1,486)

(2,611)

5,457

82,899

(6,808)

(62)

3,862

79,900

Leasing

13,927

(2,287)

(2,292)

10,198

71,408

9,773

(10,865)

2,234

72,550

(39)

(43)

96,046

28,964

(19,260)

1,957

107,707

Auto

134,247

30,880

(14,553)

4,862

155,436

Other

6,240

1,499

(494)

7,438

308,037

71,077

(45,215)

9,319

343,218

$

596,108

$

54,017

$

$

(52,964)

$

27,364

$

624,534

$

5,288

$

(400)

$

$

$

$

4,888

3,110

(1,768)

1,342

$

8,398

$

(2,168)

$

$

$

$

6,230

[1]

Ending

Balance

Balance

$

21,392

$

(9,651)

$

$

$

11,742

18,350

(4,475)

13,941

9,506

(1,688)

(1,218)

6,616

18,014

(1,109)

(1,228)

16,006

67,262

(16,923)

(2,446)

48,305

1,778

3,736

5,514

13,194

(1,252)

12,004

2,074

(224)

2,300

19,782

3,659

(5,636)

18,409

Other

(43)

21,858

3,936

(5,903)

20,711

$

104,092

$

(10,503)

$

(8,349)

$

1,294

$

86,534

$

1,348

$

$

$

$

1,545

1,797

3,658

5,455

$

3,195

$

3,859

$

$

$

7,054

[1]

Ending

Balance

Balance

$

26,179

$

(10,957)

$

$

$

$

15,223

71,716

(4,801)

(27)

67,149

51,407

(1,930)

(1,664)

48,109

99,651

(5,714)

(3,539)

13,187

103,585

248,953

(23,402)

(5,230)

13,745

234,066

11,332

2,250

(2,611)

10,971

96,093

(8,060)

(62)

3,924

91,904

Leasing

13,927

(2,287)

(2,292)

10,198

71,408

9,773

(10,865)

2,234

72,550

2,170

(267)

2,387

115,828

32,623

(24,896)

2,561

126,116

Auto

134,247

30,880

(14,553)

4,862

155,436

Other

6,242

1,538

(537)

7,440

329,895

75,013

(51,118)

10,139

363,929

$

700,200

$

43,514

$

$

(61,313)

$

28,658

$

711,068

$

6,636

$

(203)

$

$

$

$

6,433

4,907

1,890

6,797

$

11,593

$

1,691

$

$

$

$

13,284

[1]

BPPR

Impact of

Adopting

Net write

Ending

Balance

down

Balance

$

5,210

$

$

(1,730)

$

$

$

$

$

3,481

52,475

(636)

53,208

48,393

(1,161)

(7,409)

(525)

2,195

41,493

68,217

(552)

8,378

(4,979)

16,515

87,579

174,295

(1,713)

(6,140)

19,220

185,761

2,978

5,090

(2,611)

5,457

117,344

(33,556)

(15,113)

(1,205)

12,343

79,900

Leasing

20,618

(35)

(7,023)

(6,249)

2,887

10,198

58,670

35,901

(27,998)

6,578

(601)

72,550

(107)

(111)

96,369

(7,020)

60,347

(49,441)

7,452

107,707

Auto

129,735

(21)

45,108

(34,770)

15,384

155,436

Other

15,433

3,297

(11,855)

7,438

300,310

(7,041)

144,546

(124,175)

30,179

(601)

343,218

$

615,545

$

(42,345)

$

127,599

$

$

(140,380)

$

64,629

$

(601)

$

624,534

$

4,336

$

$

$

$

$

$

$

4,888

2,022

(680)

1,342

$

6,358

$

$

(128)

$

$

$

$

$

6,230

[1]

Impact of

Adopting

Ending

Balance

Balance

$

21,101

$

$

(9,363)

$

$

$

11,742

19,065

(7,108)

1,984

13,941

8,688

(738)

(1,395)

6,616

12,227

5,943

(3,808)

1,644

16,006

61,081

(11,266)

(5,203)

3,693

48,305

1,268

4,246

5,514

17,910

(2,098)

(3,993)

12,004

(1)

2,439

(419)

(419)

2,300

22,057

(1,140)

10,019

(14,093)

1,566

18,409

Other

(143)

24,498

(1,140)

9,735

(14,656)

2,274

20,711

$

104,757

$

(3,238)

$

(1,278)

$

(19,859)

$

6,152

$

86,534

$

1,175

$

$

$

$

$

1,545

1,184

4,271

5,455

(34)

$

2,447

$

$

4,607

$

$

$

7,054

[1]

Impact

for

of adopting

Net write

Ending

Balance

down

Balance

$

26,311

$

$

(11,093)

$

$

$

$

$

15,223

71,540

(6,248)

(636)

2,493

67,149

57,081

(1,161)

(8,147)

(1,920)

2,256

48,109

80,444

(552)

14,321

(8,787)

18,159

103,585

235,376

(1,713)

(11,167)

(11,343)

22,913

234,066

4,246

9,336

(2,611)

10,971

135,254

(35,654)

(19,106)

(1,205)

12,528

91,904

Leasing

20,618

(35)

(7,023)

(6,249)

2,887

10,198

58,670

35,902

(27,999)

6,578

(601)

72,550

2,542

(526)

(530)

2,387

118,426

(8,160)

70,366

(63,534)

9,018

126,116

Auto

129,735

(21)

45,108

(34,770)

15,384

155,436

Other

15,435

3,431

(11,998)

7,440

324,808

(8,181)

154,281

(138,831)

32,453

(601)

363,929

$

720,302

$

(45,583)

$

126,321

$

$

(160,239)

$

70,781

$

(601)

$

711,068

$

5,511

$

$

$

$

$

$

$

6,433

3,206

3,591

6,797

(34)

$

8,805

$

$

4,479

$

$

$

$

$

13,284

[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

modified during

2023 amounted

to $

65.0

$

17.0

million, 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 and nine months

and September

Loans modified

to borrowers

under financial

difficulties that

were fully

paid

down, charged-off or foreclosed upon by period end

are not reported.

Difficulty for the quarter ended September 30,

BPPR

$

0.01

%

$

%

$

%

0.01

%

%

0.01

%

0.02

%

%

0.02

%

0.05

%

%

0.04

%

Total

$

1,883

0.01

%

$

%

$

1,883

0.01

%

BPPR

$

%

$

10,570

0.50

%

$

10,570

0.44

%

13,108

0.42

%

%

13,108

0.25

%

0.05

%

%

0.02

%

20,966

0.41

%

%

20,966

0.28

%

0.40

%

%

0.07

%

11,850

0.18

%

0.03

%

12,279

0.15

%

0.01

%

%

0.01

%

Total

$

47,604

0.19

%

$

10,999

0.11

%

$

58,603

0.16

%

BPPR

$

%

$

%

$

%

4,993

0.36

%

%

4,993

0.16

%

71,867

1.39

%

%

71,867

0.97

%

%

%

%

Total

$

77,004

0.30

%

$

%

$

77,004

0.21

%

BPPR

$

0.01

%

$

%

$

0.01

%

%

%

%

4,728

0.07

%

%

4,728

0.06

%

2,569

0.15

%

0.05

%

2,634

0.14

%

Total

$

7,543

0.03

%

$

%

$

7,608

0.02

%

Combination -

Other-Than-Insignificant Payment Delays and Interest Rate

Reduction

$

%

$

%

$

%

0.07

%

%

0.07

%

Total

$

%

$

%

$

%

Difficulty for the nine months ended September

BPPR

$

0.01

%

$

%

$

0.01

%

2,756

0.05

%

%

2,756

0.04

%

%

%

%

0.06

%

%

0.06

%

1,873

0.11

%

%

1,873

0.10

%

Other

0.02

%

%

0.01

%

Total

$

5,591

0.02

%

$

%

$

5,591

0.02

%

BPPR

$

%

$

10,570

0.50

%

$

10,570

0.44

%

55,655

1.77

%

%

55,655

1.07

%

11,482

0.82

%

6,033

0.36

%

17,515

0.57

%

23,837

0.46

%

%

23,837

0.32

%

0.40

%

%

0.07

%

41,649

0.62

%

1,075

0.08

%

42,724

0.53

%

0.03

%

%

0.03

%

Auto

%

%

%

Total

$

133,981

0.52

%

$

17,678

0.17

%

$

151,659

0.42

%

BPPR

$

%

$

%

$

%

20,591

1.47

%

%

20,591

0.67

%

75,231

1.45

%

%

75,231

1.02

%

%

%

%

%

%

%

Total

$

96,093

0.37

%

$

%

$

96,093

0.27

%

BPPR

$

0.03

%

$

%

$

0.02

%

0.01

%

%

0.01

%

0.01

%

%

0.01

%

13,404

0.20

%

0.01

%

13,471

0.17

%

5,755

0.33

%

0.26

%

6,067

0.32

%

Total

$

20,865

0.08

%

$

%

$

21,244

0.06

%

$

%

$

%

$

%

1,335

0.11

%

%

1,335

0.11

%

Total

$

1,445

0.01

%

$

%

$

1,445

%

Difficulty for the quarter ended September 30,

BPPR

$

141,807

10.07

%

$

%

$

141,807

4.66

%

%

%

%

%

%

%

0.01

%

%

0.01

%

0.01

%

%

0.01

%

Total

$

142,327

0.60

%

$

%

$

142,327