Popular, Inc. Announces First Quarter Financial Results

Net income of $85.0 million for the first quarter of 2016
Stable net interest margin of 4.43%, compared to 4.42%, or 4.39% on an adjusted basis, in Q4 2015
Credit Quality (excluding covered loans):
- Non-performing loans held-in-portfolio (NPLs) decreased by $2.3 million from Q4 2015; NPLs to loans ratio remained flat at 2.7% from Q4 2015;
- Net charge-offs (NCOs) at 0.76% of average loans held-in-portfolio vs. 1.48% in Q4 2015; NCOs decreased by $40.4 million quarter over quarter;
- Allowance for loan losses of $508.4 million vs. $502.9 million in Q4 2015; Allowance for loan losses to loans held-in-portfolio at 2.26% vs. 2.25% in Q4 2015;
- Allowance for loan losses to NPLs at 84.8% vs. 83.6% in Q4 2015.
Common Equity Tier 1 ratio of 15.79% and Tangible Book Value per Share of $43.55 at March 31, 2016

Popular, Inc. (the “Corporation” or “Popular”) (NASDAQ:BPOP) reported net income of $85.0 million for the quarter ended March 31, 2016, compared to net income of $137.4 million and an adjusted net income of $98.3 million for the quarter ended December 31, 2015.

Mr. Richard L. Carrión, Chairman of the Board and Chief Executive Officer, said: “Despite the challenging conditions in Puerto Rico we delivered solid results for the quarter reflecting stability in our key revenue, expense and credit metrics. We are pleased that we have been able to maintain and strengthen our leadership position in Puerto Rico and remain encouraged by the continued growth of our U.S. franchise.”

Earnings Highlights (Unaudited) Quarters ended (Dollars in thousands, except per share information) 31-Mar-16 31-Dec-15 31-Mar-15 Net interest income $352,412 $352,500 $343,195 Provision for loan losses – non-covered loans 47,940 57,711 29,711 Provision (reversal of provision) for loan losses – covered loans [1] (3,105 ) 820 10,324 Net interest income after provision for loan losses 307,577 293,969 303,160

FDIC loss share (expense) income

(3,146 ) (4,359 ) 4,139 Other non-interest income 114,776 136,797 111,096 Operating expenses 301,943 305,808 312,342 Income from continuing operations before income tax 117,264 120,599 106,053 Income tax expense (benefit) 32,265 (16,827 ) 32,568 Income from continuing operations 84,999 137,426 73,485 Income from discontinued operations, net of tax - - 1,341 Net income $84,999 $137,426 $74,826 Net income applicable to common stock $84,068 $136,495 $73,896 Net income per common share from continuing operations - Basic $0.81 $1.32 $0.71 Net income per common share from continuing operations - Diluted $0.81 $1.32 $0.71 Net income per common share from discontinued operations - Basic $- $- $0.01 Net income per common share from discontinued operations - Diluted $- $- $0.01 [1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreement.

Adjusted results – Non GAAP

The Corporation prepared its Consolidated Financial Statement using accounting principles generally accepted in the U.S. (“U.S. GAAP” or the “reported basis”). In addition to analyzing the Corporation’s results on a reported basis, management monitors the performance of the Corporation on an “adjusted basis” and excludes the impact of certain transactions on the results of its operations. Management believes that the “adjusted basis” provides meaningful information about the underlying performance of the Corporation’s ongoing operations. The “adjusted basis” is a non-GAAP financial measure.

The following tables reflect the results of operations for the first quarter of 2016 compared to the results of the fourth quarter of 2015, with adjustments to exclude the impact of certain events during the fourth quarter of 2015. No adjustments are reflected for the first quarter of 2016 results.

Quarters ended (Unaudited)

Adjusted ResultsNon-GAAP

(In thousands) 31-Mar-16 31-Dec-15 Variance Net interest income $352,412 $350,548 $1,864 Provision for loan losses – non-covered loans 47,940 46,795 1,145 Provision (reversal) for loan losses – covered loans [1] (3,105 ) 820 (3,925 ) Net interest income after provision for loan losses 307,577 302,933 4,644 Mortgage banking activities 10,551 22,597 (12,046 ) FDIC loss-share expense (3,146 ) (4,359 ) 1,213 Other non-interest income 104,225 113,367 (9,142 ) Total non-interest income 111,630 131,605 (19,975 ) Personnel costs 127,091 119,221 7,870 Net occupancy expenses 20,430 20,616 (186 ) Equipment expenses 14,548 16,035 (1,487 ) Professional fees 75,459 77,854 (2,395 ) Communications 6,320 6,759 (439 ) Business promotion 11,110 15,162 (4,052 ) Other real estate owned (OREO) expenses 9,141 9,997 (856 ) Amortization of intangibles 3,114 3,150 (36 ) Other operating expenses 34,730 36,638 (1,908 ) Total operating expenses 301,943 305,432 (3,489 ) Income before income tax 117,264 129,106 (11,842 ) Income tax expense 32,265 30,802 1,463 Net income $84,999 $98,304 $(13,305 )

[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss-sharing agreement.

Quarter ended (Unaudited) 31-Dec-15 (In thousands) Actual Results (U.S. GAAP) BPNA Reorganization [2] Doral Transaction Remeasurement [3] Bulk Loan Sale [4] Impairment of Loans Under Proposed Portfolio Sale [5] Reversal of DTA - U.S. Operations [6] Adjusted Results (Non-GAAP) Net interest income $352,500 $- $1,952 $- $- $- $350,548 Provision for loan losses – non-covered loans 57,711 - - 5,852 5,064 - 46,795 Provision for loan losses – covered loans [1] 820 - - - - - 820 Net interest income after provision for loan losses 293,969 - 1,952 (5,852 ) (5,064 ) - 302,933 Mortgage banking activities 23,430 - 833 - - - 22,597 FDIC loss-share expense (4,359 ) - - - - - (4,359 ) Other non-interest income 113,367 - - - - - 113,367 Total non-interest income 132,438 - 833 - - - 131,605 Personnel costs 119,221 - - - - - 119,221 Net occupancy expenses 20,616 - - - - - 20,616 Equipment expenses 16,035 - - - - - 16,035 Professional fees 77,854 - - - - - 77,854 Communications 6,759 - - - - - 6,759 Business promotion 15,162 - - - - - 15,162 Other real estate owned (OREO) expenses 9,997 - - - - - 9,997 Amortization of intangibles 2,522 - (628 ) - - - 3,150 Restructuring costs 1,004 1,004 - - - - - Other operating expenses 36,638 - - - -

36,638 Total operating expenses 305,808 1,004 (628 ) - - - 305,432 Income before income tax 120,599 (1,004 ) 3,413 (5,852 ) (5,064 ) - 129,106 Income tax (benefit) expense (16,827 ) - 731 (2,282 ) (1,975 ) (44,103 ) 30,802 Net income $137,426 $(1,004 ) $2,682 $(3,570 ) $(3,089 ) $44,103 $98,304

[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under an FDIC loss-sharing agreement.

[2] Represents restructuring charges associated with the reorganization of BPNA.

[3] Represents the impact of the fair value adjustments, identified during the remeasurement period as defined by U.S. GAAP, related to the Doral Bank transaction. The remeasurement adjustments impacted the fair value of the loan portfolio, deposit premium and the core deposit intangible, all of which were recorded against goodwill. During the fourth quarter of 2015, the related amortization of the loan discounts, deposit premium and the core deposit intangible were adjusted to reflect the balance as if the revised estimates of fair value were applied as of the Doral Bank transaction date.

[4] Represents the impact of a bulk sale of loans at the BPPR segment, which had a book value of approximately $34.4 million.

[5] Represents additional impairment based on the estimated fair value of loans in the Westernbank transaction, that the Corporation has the intent to sell and are subject to the ongoing arbitration with the FDIC.

[6] Represents the partial reversal of the valuation allowance of a portion of the deferred tax asset at the U.S. operations.

Net interest income

For the quarter ended March 31, 2016, the Corporation had net interest income of $352.4 million, compared to net interest income of $352.5 million, or $350.6 million on an adjusted basis, for the previous quarter. The net interest margin was 4.43% for the quarter, compared to 4.42%, or 4.39% on an adjusted basis for the previous quarter. Refer to the Adjusted Results – Non-GAAP section for additional information on the adjusted net interest income for the quarter ended December 31, 2015. The impact of having one less day in the quarter ended March 31, 2016 compared to the previous quarter lowered net interest income by approximately $2.5 million.

The increase of $1.8 million in the adjusted net interest income is mainly related to:

Higher income from investment securities by $3.9 million, or 12 basis points, due mainly to higher volumes of mortgage backed securities, partially offset by lower volume of money market investments and trading securities, as part of the Corporation’s investment strategy.
Higher income from commercial loans by $3.2 million, or 20 basis points, mainly due to higher yields at BPPR due to the impact of the change in the prime rate for variable rate loans and higher loan prepayment fees coupled with U.S. commercial and consumer loans portfolio growth. The impact in the interest income from commercial loans of one less day in the quarter is approximately $1.2 million.

These positive variances in net interest income were offset in part by:

Lower income from Westernbank loans (“WB loans”) by $3.0 million, or 6 basis points, due mainly to lower balances as the portfolio continues its expected run-off.
Higher interest expense on deposits by $1.5 million, or 3 basis points, principally due to higher balances and cost of time deposits mainly in the U.S. to fund loan growth and the re-pricing of individual retirement accounts at BPPR, partially offset by a lower volume of brokered CDs.

BPPR’s net interest income amounted to $305.4 million for the quarter ended March 31, 2016, compared to $305.1 million for the previous quarter. The adjusted net interest income for the previous quarter was $304.3 million. The increase of $1.1 million in the adjusted net interest income was mainly due to higher income on investment securities and higher yield on commercial loans, partially offset by lower income from covered loans and higher cost of deposits, as discussed above. The impact of having one less day in the quarter in P.R. is a lower net interest income of approximately $2 million. Net interest margin increased to 4.87% from 4.82% in the previous quarter, or 4.80% on an adjusted basis, mainly driven by higher yields on commercial loans as explained above. Earning assets in P.R. yielded 5.27% up from 5.20% in the last quarter of 2015 while the cost of interest bearing liabilities was relatively flat at 0.57% compared to 0.56% in the previous quarter.

BPNA’s net interest income was $62.3 million, compared to $62.9 million for the previous quarter. The adjusted net interest income for the previous quarter was $61.7 million. The increase of $0.6 million in the adjusted net interest income is mainly driven by higher volume from the commercial and consumer loan portfolios, partially offset by higher interest expense on deposits, as discussed above. Net interest margin was 3.70% compared to 3.86% for the previous quarter. The adjusted net interest margin for the previous quarter was 3.79%. The decrease of 9 basis points is related to a lower yield on construction loans and higher cost of deposits. U.S. earning assets yielded 4.36%, flat when compared to the previous quarter, while interest bearing liabilities increased by 8 basis points to 0.85%.

Non-interest income

Non-interest income was $111.6 million for the first quarter of 2016, a decrease of $20.8 million when compared with the fourth quarter of 2015. Excluding the impact of the transaction detailed in the Adjusted Results Non-GAAP tables above, non-interest income decreased by $20.0 million when compared to the fourth quarter of 2015, driven primarily by the following:

Lower other service fees by $13.5 million mainly due to lower insurance fees by $11.0 million as a result of annual contingent insurance commission revenues recorded during fourth quarter of 2015, including approximately $3.7 million from the portfolio acquired from the Doral insurance agency. Refer to Table F for a breakdown of other service fees.
Lower income from mortgage banking activities by $12.0 million due to higher unfavorable fair value adjustments on mortgage servicing rights by $6.4 million, lower net gain on sale of loans by $4.1 million mostly due to lower volume from mortgage securitization transactions, and higher trading account loss by $2.6 million from higher realized losses on closed derivative positions.

These decreases were partially offset by:

Favorable variance in adjustments to indemnity reserves by $4.5 million mostly due to lower provision for loans previously sold with credit recourse due to lower estimated losses and a lower portfolio balance.
Lower FDIC loss share expense by $1.2 million mainly due to lower recoveries on assets to be shared with the FDIC under the recovery period by $5.9 million, offset by an unfavorable change in the fair value of the true-up payment obligation.

Refer to Table B for further details.

Financial Impact of the 2010 FDIC-Assisted Transaction (Unaudited) Quarters ended (In thousands) 31-Mar-16 31-Dec-15 31-Mar-15

Income Statement

Interest income on WB loans $44,904 $47,870 $57,431

Total FDIC loss-share (expense) income

(3,146 ) (4,359 ) 4,139 Provision (reversal) for loan losses- WB loans (356 ) 7,817 10,324 Total revenues less provision (reversal) for loan losses $42,114 $35,694 $51,246

Balance Sheet

WB loans $2,071,191 $2,113,440 $2,520,535 FDIC loss-share asset 219,448 310,221 409,844 FDIC true-up payment obligation 120,188 119,745 125,140

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

Operating expenses

Operating expenses amounted to $301.9 million for the first quarter of 2016, a decline of $3.9 million when compared with the fourth quarter of 2015. Excluding the impact of the transactions detailed in the Adjusted Results Non-GAAP tables above, operating expenses decreased by $3.5 million compared to the fourth quarter of 2015, driven primarily by:

Lower business promotion expenses by $4.1 million mainly at BPPR due to lower seasonal advertising expense and lower credit card rewards program expenses.
Lower other operating expenses by $3.8 million mainly due to lower sundry losses from mortgage servicing activities at BPPR.
Lower professional fees expense by $2.4 million mainly at BPPR due to lower legal, application processing, hosting and other technology related services expenses.
Lower equipment expense by $1.5 million mainly due to lower software and maintenance expenses at BPPR.

These decreases were partially offset by:

Higher personnel cost by $7.9 million mainly due to the grant of employee restricted stock and performance shares awards during the quarter, higher unemployment and social security tax, higher medical plan expense and higher pension cost due to changes in actuarial assumptions.

Non-personnel credit-related costs, which include collections, appraisals, credit related fees, and OREO expenses, amounted to $13.6 million for the first quarter of 2016, compared with $14.4 million for the fourth quarter of 2015. The decrease was principally due to lower mortgage OREO write-downs at BPPR.

Full-time equivalent employees were 7,812 as of March 31, 2016, compared with 7,810 as of December 31, 2015.

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

Income taxes

For the quarter ended March 31, 2016, the Corporation recorded an income tax expense of $32.3 million, compared to a benefit of $16.8 million for the previous quarter. During the fourth quarter of 2015, the Corporation recorded a partial reversal of the valuation allowance on its deferred tax assets from the U.S. operations for approximately $44.1 million. On an adjusted basis, the income tax expense for the fourth quarter of 2015 was $30.8 million.

The effective income tax rate for the first quarter of 2016 was 28%, compared to 24% on an adjusted basis, for the previous quarter. The effective tax rate is impacted by the composition and source of the taxable income. For the first quarter 2016, after taking effect for the partial deferred tax asset valuation reversal recorded in 2015, the effective tax rate for the U.S. operations was approximately 47%.

Credit Quality

The Corporation continued to exhibit a stable credit performance despite a challenging operating environment in Puerto Rico. The Corporation continues to be attentive to changes in credit quality trends and is focused on taking measures to minimize risks. The U.S. operation continued to reflect strong credit quality with low level of charge-offs and non-performing loans.

Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $8.9 million quarter over quarter, mainly driven by a $10.5 million commercial borrower in the BPNA segment. In the BPPR segment, inflows decreased by $2.5 million driven by lower mortgage inflows of $6.5 million, offset by an increase of $3.9 million in the commercial NPL inflows.
Non-performing loans held-in-portfolio decreased by $2.3 million from the fourth quarter of 2015, mainly driven by lower mortgage NPLs of $16.6 million, offset by higher commercial NPLs of $15.8 million. Mortgage NPLs decrease was mostly driven by improvements in the BPPR mortgage portfolio due to the improved collections efforts. This decrease was offset in part by an increase in commercial NPLs mainly driven by the abovementioned $10.5 million relationship at BPNA. At March 31, 2016, NPLs to total loans held-in-portfolio remained flat at 2.7% from December 31, 2015.
Net charge-offs decreased by $40.4 million during the first quarter of 2016, as the prior quarter included $31.1 million in charge-offs related to commercial relationships that had been reserved in prior quarters. Excluding this impact, the $9.3 million reduction was mostly related to lower impairment on the Westernbank loans. The ratio of net charge-offs to average non-covered loans held-in-portfolio decreased to 0.76% on an annualized basis from 1.48% in the fourth quarter of 2015. Excluding the effect of commercial relationships reserved in prior quarters, the net charge-off ratio decreased to 0.76% from 0.93% in the prior quarter driven by lower commercial losses in the BPPR segment. Refer to Table J for further information on net charge-offs and related ratios.
The allowance for loan losses increased by $5.5 million from the fourth quarter 2015 to $508.4 million. The general and specific reserves related to non-covered loans totaled $384.4 million and $124.0 million, respectively, at quarter-end, compared with $384.8 million and $118.1 million, respectively, as of December 31, 2015. The ratio of the allowance for loan losses to loans held-in-portfolio was 2.26% in the first quarter of 2016, compared to 2.25% from the previous quarter.
The ratio of the allowance for loan losses to NPLs held-in-portfolio stood at 84.8%, compared to 83.6% in the previous quarter.
The provision for loan losses for the first quarter of 2016 amounted to $47.9 million, decreasing by $9.8 million from the previous quarter. The provision for the fourth quarter of 2015 included $5.8 million provision impact related to the bulk sale of commercial loans and a $5.1 million impairment on the Westernbank loans that the Corporation has the intent to sell. Compared to an adjusted provision of $46.8 million in the fourth quarter of 2015, the provision for the first quarter remained stable, increasing slightly by $1.1 million. The provision to net charge-offs ratio was 112.9% compared to 69.6% in the fourth quarter of 2015. The fourth quarter included the previously mentioned $31.1 million in charge-offs of previously reserved commercial loans. Excluding this impact from the total net charge-offs base, the provision for the fourth quarter represented 90.3% of net charge-offs.

Non-Performing Assets (Unaudited) (In thousands) 31-Mar-16 31-Dec-15 31-Mar-15 Total non-performing loans held-in-portfolio, excluding covered loans $599,526 $601,799 $664,953 Non-performing loans held-for-sale 42,743 45,169 8,404 Other real estate owned (“OREO”), excluding covered OREO 165,960 155,231 128,170 Total non-performing assets, excluding covered assets 808,229 802,199 801,527 Covered loans and OREO 39,916 40,571 133,211 Total non-performing assets $848,145 $842,770 $934,738 Net charge-offs for the quarter (excluding covered loans) $42,448 $82,870 $35,886 Ratios (excluding covered loans): Non-covered loans held-in-portfolio $22,507,737 $22,346,115 $21,012,930 Non-performing loans held-in-portfolio to loans held-in-portfolio 2.66 % 2.69 % 3.16 % Allowance for loan losses to loans held-in-portfolio 2.26 2.25 2.46 Allowance for loan losses to non-performing loans, excluding loans held-for-sale 84.80 83.57 77.63 Refer to Table H for additional information. Provision for Loan Losses (Unaudited) Quarters ended (In thousands) 31-Mar-16 31-Dec-15 31-Mar-15 Provision (reversal) for loan losses: BPPR $43,871 $55,635 $31,913 BPNA 4,069 2,076 (2,202 ) Total provision for loan losses- non-covered loans $47,940 $57,711 $29,711 Provision (reversal) for loan losses - covered loans (3,105 ) 820 10,324 Total provision for loan losses $44,835 $58,531 $40,035 Credit Quality by Segment (Unaudited) (In thousands) Quarters ended BPPR 31-Mar-16 31-Dec-15 31-Mar-15 Provision for loan losses $43,871 $55,635 $31,913 Net charge-offs 40,647 82,011 36,772 Total non-performing loans held-in-portfolio, excluding covered loans 561,612 574,834 638,017 Allowance / non-covered loans held-in-portfolio 2.70 % 2.67 % 2.92 % Quarters ended BPNA 31-Mar-16 31-Dec-15 31-Mar-15 Provision (reversal) for loan losses $4,069 $2,076 $(2,202 ) Net charge-offs (recoveries) 1,801 859 (886 ) Total non-performing loans held-in-portfolio 37,914 26,965 26,936 Allowance / non-covered loans held-in-portfolio 0.71 % 0.69 % 0.72 % Financial Condition Highlights (Unaudited) (In thousands) 31-Mar-16 31-Dec-15 31-Mar-15 Money market, trading and investment securities $8,901,814 $8,587,894 $8,254,845 Loans not covered under loss-sharing agreements with the FDIC 22,507,737 22,346,115 21,012,930 Loans covered under loss-sharing agreements with the FDIC 625,130 646,115 2,456,552 Total assets 36,147,009 35,761,733 35,615,447 Deposits 27,526,593 27,209,723 27,273,689 Borrowings 2,349,992 2,425,853 2,881,763 Liabilities from discontinued operations 1,815 1,815 1,930 Total liabilities 30,896,709 30,656,409 31,238,327 Stockholders’ equity 5,250,300 5,105,324 4,377,120

Total assets increased by $385.3 million from the fourth quarter of 2015 driven by:

An increase of $313.9 million in money market, trading and investment securities mainly at BPPR by $362.7 million mostly due to purchases of mortgage-backed agency pools and U.S. Treasury securities, partially offset by a decrease at BPNA of $48.9 million mainly due to lower balances with the Federal Reserve Bank; and
An increase of $161.6 million in non-covered loans held in portfolio mainly at BPNA by $206.8 million, driven by growth in the commercial and consumer loan portfolios, which includes consumer loan portfolio purchases of $85.7 million, partially offset by a decrease of $45.2 million at BPPR mainly due to lower originations of credit cards and residential mortgages.

These increases were partially offset by:

A decrease of approximately $90.8 million in the FDIC Loss Share Asset mainly due to collections from the FDIC of $88.6 million.

Total liabilities increased by $240.3 million from the fourth quarter of 2015, driven by:

An increase of $316.9 million in deposits mainly at BPPR by $189.1 million largely due to increases in government deposit accounts and at BPNA by $127.8 million mainly from money market accounts and time deposits growth. Refer to Table G for additional information on deposits.

This increase was partially offset by:

A decrease of $79.0 million in notes payable mainly due to maturities of advances from the Federal Home Loan Bank (“FHLB”).

Stockholders’ equity increased by approximately $145.0 million from the fourth quarter of 2015, mainly as a result of net income for the quarter of $85.0 million, a favorable variance of $73.4 million in unrealized gains on securities available-for-sale, partially offset by payments of dividends of $15.5 million on common stock of $0.15 per share and $0.9 million in dividends on preferred stock.

Common equity tier-1 ratio ("CET1") and tangible book value per share were 15.79% and $43.55, respectively, at March 31, 2016 compared to 16.21% and $42.18 at December 31, 2015. The major drivers of the decrease of 42 basis points in the CET1 ratio were the anticipated phase-in provisions of Basel III, including the complete phase out of the trust preferred securities from Tier 1 capital and additional exclusion of DTA balances from CET1, that were effective on January 1, 2016. Refer to Table A for capital ratios.

Forward-Looking Statements

The information contained in this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that may cause the Corporation's actual results to differ materially from any future results expressed or implied by such forward-looking statements. Please refer to our Annual Report on Form 10-K for the year ended December 31, 2015 and our other filings with the SEC for a discussion of those factors that could impact our future results. Other than to the extent required by applicable law, the Corporation undertakes no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances after the date of such statements.

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

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

Popular will hold a conference call to discuss the financial results today Monday, April 25, 2016 at 11:00 a.m. Eastern Daylight Time. The call will be broadcast live over the Internet and can be accessed through the investor relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 1-866-235-1201 or 1-412-902-4127.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Wednesday, May 25, 2016. The replay dial in is 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10083310.

Popular, Inc. Financial Supplement to First Quarter 2016 Earnings Release Table A - Selected Ratios and Other Information Table B - Consolidated Statement of Operations Table C - Consolidated Statement of Financial Condition Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER Table E - Intentionally Left Blank (Consolidated Average Balances and Yield / Rate Analysis - YTD) Table F - Mortgage Banking Activities & Other Service Fees Table G - Loans and Deposits Table H - Non-Performing Assets Table I - Activity in Non-Performing Loans Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS Table N - Reconciliation to GAAP Financial Measures Table O - Financial Information - Westernbank Covered Loans POPULAR, INC. Financial Supplement to First Quarter 2016 Earnings Release Table A - Selected Ratios and Other Information (Unaudited) Quarters ended 31-Mar-16 31-Dec-15 31-Mar-15 Basic EPS from continuing operations $0.81 $1.32 $0.71 Basic EPS from discontinued operations $- $- $0.01 Total Basic EPS $0.81 $1.32 $0.72 Diluted EPS from continuing operations $0.81 $1.32 $0.71 Diluted EPS from discontinued operations $- $- $0.01 Total Diluted EPS $0.81 $1.32 $0.72 Average common shares outstanding 103,188,815 103,098,249 102,939,928 Average common shares outstanding - assuming dilution 103,269,813 103,259,503 103,136,309 Common shares outstanding at end of period 103,670,005 103,618,976 103,486,927 Market value per common share $28.61 $28.34 $34.39 Market capitalization - (In millions) $2,966 $2,937 $3,559 Return on average assets 0.95% 1.53% 0.90% . . Return on average common equity 6.58% 10.77% 7.02% Net interest margin [1] 4.43% 4.39% 4.57% Common equity per share $50.16 $48.79 $41.81 Tangible common book value per common share (non-GAAP) $43.55 $42.18 $36.33 Tangible common equity to tangible assets (non-GAAP) 12.73% 12.46% 10.73% Tier 1 capital

15.79%

16.21% 16.11% Total capital

18.78%

18.78% 18.71% Tier 1 leverage

11.46%

11.82% 11.80%

Common Equity Tier 1 capital

15.79%

16.21% 15.74%

[1] Not on a taxable equivalent basis. For the quarter ended December 31, 2015 excludes the impact of $1.9 million of Doral fair value remeasurement adjustment. U.S. GAAP net interest margin was 4.42% for the quarter ended December 31, 2015. Refer to Table D for reconciliation.

POPULAR, INC. Financial Supplement to First Quarter 2016 Earnings Release Table B - Consolidated Statement of Operations (Unaudited) Quarters ended Variance Quarter ended Variance (In thousands, except per share information) 31-Mar-16 31-Dec-15

Q1 2016vs. Q4 2015

31-Mar-15

Q1 2016vs. Q1 2015

Interest income: Loans $363,197 $364,484 $(1,287 ) $355,631 $7,566 Money market investments 2,863 1,949 914 1,446 1,417 Investment securities 36,271 32,795 3,476 30,301 5,970 Trading account securities 1,689 2,129 (440 ) 2,696 (1,007 ) Total interest income 404,020 401,357 2,663 390,074 13,946 Interest expense: Deposits 29,874 27,054 2,820 25,864 4,010 Short-term borrowings 1,861 1,693 168 1,734 127 Long-term debt 19,873 20,110 (237 ) 19,281 592 Total interest expense 51,608 48,857 2,751 46,879 4,729 Net interest income 352,412 352,500 (88 ) 343,195 9,217 Provision for loan losses - non-covered loans 47,940 57,711 (9,771 ) 29,711 18,229 Provision (reversal) for loan losses - covered loans (3,105 ) 820 (3,925 ) 10,324 (13,429 ) Net interest income after provision for loan losses 307,577 293,969 13,608 303,160 4,417 Service charges on deposit accounts 39,862 39,993 (131 ) 39,017 845 Other service fees 53,382 66,928 (13,546 ) 53,626 (244 ) Mortgage banking activities 10,551 23,430 (12,879 ) 12,852 (2,301 ) Trading account (loss) profit (162 ) (1,631 ) 1,469 414 (576 ) Net loss on sale of loans, including valuation adjustments on loans held-for-sale (304 ) (60 ) (244 ) (79 ) (225 ) Adjustments (expense) to indemnity reserves on loans sold (4,098 ) (8,647 ) 4,549 (4,526 ) 428 FDIC loss-share (expense) income (3,146 ) (4,359 ) 1,213 4,139 (7,285 ) Other operating income 15,545 16,784 (1,239 ) 9,792 5,753 Total non-interest income 111,630 132,438 (20,808 ) 115,235 (3,605 ) Operating expenses: Personnel costs Salaries 77,298 77,578 (280 ) 72,394 4,904 Commissions, incentives and other bonuses 20,769 18,015 2,754 18,458 2,311 Pension, postretirement and medical insurance 13,111 10,393 2,718 12,013 1,098 Other personnel costs, including payroll taxes 15,913 13,235 2,678 13,593 2,320 Total personnel costs 127,091 119,221 7,870 116,458 10,633 Net occupancy expenses 20,430 20,616 (186 ) 21,709 (1,279 ) Equipment expenses 14,548 16,035 (1,487 ) 13,411 1,137 Other taxes 10,195 10,159 36 8,574 1,621 Professional fees 75,459 77,854 (2,395 ) 75,528 (69 ) Communications 6,320 6,759 (439 ) 6,176 144 Business promotion 11,110 15,162 (4,052 ) 10,813 297 FDIC deposit insurance 7,370 5,386 1,984 6,398 972 Other real estate owned (OREO) expenses 9,141 9,997 (856 ) 23,069 (13,928 ) Credit and debit card processing, volume, interchange and other expenses 5,722 5,822 (100 ) 4,821 901 Other operating expenses 11,443 15,271 (3,828 ) 12,528 (1,085 ) Amortization of intangibles 3,114 2,522 592 2,104 1,010 Restructuring costs - 1,004 (1,004 ) 10,753 (10,753 ) Total operating expenses 301,943 305,808 (3,865 ) 312,342 (10,399 ) Income from continuing operations before income tax 117,264 120,599 (3,335 ) 106,053 11,211 Income tax expense (benefit) 32,265 (16,827 ) 49,092 32,568 (303 ) Income from continuing operations 84,999 137,426 (52,427 ) 73,485 11,514 Income from discontinued operations, net of tax - - - 1,341 (1,341 ) Net income $84,999 $137,426 $(52,427 ) $74,826 $10,173 Net income applicable to common stock $84,068 $136,495 $(52,427 ) $73,896 $10,172 Net income per common share - basic: Net income from continuing operations $0.81 $1.32 $(0.51 ) $0.71 $0.10 Net income from discontinued operations - - - 0.01 (0.01 ) Net income per common share - basic $0.81 $1.32 $(0.51 ) $0.72 $0.09 Net income per common share - diluted: Net income from continuing operations $0.81 $1.32 $(0.51 ) $0.71 $0.10 Net income from discontinued operations - - - 0.01 (0.01 ) Net income per common share - diluted $0.81 $1.32 $(0.51 ) $0.72 $0.09 Dividends Declared per Common Share $0.15 $0.15 $- $- $0.15 Popular, Inc. Financial Supplement to First Quarter 2016 Earnings Release Table C - Consolidated Statement of Financial Condition (Unaudited) Variance Q1 2016 vs. (In thousands) 31-Mar-16 31-Dec-15 31-Mar-15 Q4 2015 Assets: Cash and due from banks $409,623 $363,674 $495,776 $45,949 Money market investments 1,917,460 2,180,092 2,307,215 (262,632 ) Trading account securities, at fair value 71,284 71,659 134,294 (375 ) Investment securities available-for-sale, at fair value 6,649,830 6,062,992 5,548,703 586,838 Investment securities held-to-maturity, at amortized cost 99,216 100,903 101,595 (1,687 ) Other investment securities, at lower of cost or realizable value 164,024 172,248 163,038 (8,224 ) Loans held-for-sale, at lower of cost or fair value 125,315 137,000 160,602 (11,685 ) Loans held-in-portfolio: Loans not covered under loss-sharing agreements with the FDIC 22,618,488 22,453,813 21,110,147 164,675 Loans covered under loss-sharing agreements with the FDIC 625,130 646,115 2,456,552 (20,985 ) Less: Unearned income 110,751 107,698 97,217 3,053 Allowance for loan losses 538,472 537,111 588,697 1,361 Total loans held-in-portfolio, net 22,594,395 22,455,119 22,880,785 139,276 FDIC loss-share asset 219,448 310,221 409,844 (90,773 ) Premises and equipment, net 527,493 502,611 492,291 24,882 Other real estate not covered under loss-sharing agreements with the FDIC 165,960 155,231 128,170 10,729 Other real estate covered under loss-sharing agreements with the FDIC 36,397 36,685 113,557 (288 ) Accrued income receivable 120,308 124,234 129,639 (3,926 ) Mortgage servicing assets, at fair value 205,051 211,405 149,024 (6,354 ) Other assets 2,156,030 2,193,162 1,834,031 (37,132 ) Goodwill 631,095 626,388 507,820 4,707 Other intangible assets 54,080 58,109 59,063 (4,029 ) Total assets $36,147,009 $35,761,733 $35,615,447 $385,276 Liabilities and Stockholders’ Equity: Liabilities: Deposits: Non-interest bearing $6,384,093 $6,401,515 $6,285,202 $(17,422 ) Interest bearing 21,142,500 20,808,208 20,988,487 334,292 Total deposits 27,526,593 27,209,723 27,273,689 316,870 Federal funds purchased and assets sold under agreements to repurchase 760,154 762,145 1,132,643 (1,991 ) Other short-term borrowings 6,370 1,200 1,200 5,170 Notes payable 1,583,468 1,662,508 1,747,920 (79,040 ) Other liabilities 1,018,309 1,019,018 1,080,945 (709 ) Liabilities from discontinued operations 1,815 1,815 1,930 - Total liabilities 30,896,709 30,656,409 31,238,327 240,300 Stockholders’ equity: Preferred stock 50,160 50,160 50,160 - Common stock 1,039 1,038 1,037 1 Surplus 4,231,233 4,229,156 4,197,932 2,077 Retained earnings 1,156,476 1,087,957 327,613 68,519 Treasury stock (6,858 ) (6,101 ) (5,222 ) (757 ) Accumulated other comprehensive loss (181,750 ) (256,886 ) (194,400 ) 75,136 Total stockholders’ equity 5,250,300 5,105,324 4,377,120 144,976 Total liabilities and stockholders’ equity $36,147,009 $35,761,733 $35,615,447 $385,276 Popular, Inc. Financial Supplement to First Quarter 2016 Earnings Release Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER (Unaudited) Quarter ended Quarter ended Quarter ended Variance Variance 31-Mar-16 31-Dec-15 31-Mar-15 Q1 2016 vs. Q4 2015 Q1 2016 vs. Q1 2015 ($ amounts in millions; yields not on a taxable equivalent basis) Average balance

Income/Expense

Yield/Rate

Average balance

Income/Expense

Yield/Rate

Average balance

Income/Expense

Yield/Rate

Average balance

Income/Expense

Yield/Rate

Average balance

Income/Expense

Yield/Rate

Assets: Interest earning assets: Money market, trading and investment securities $8,951 $40.8 1.83 % $8,602 $36.9 1.71 % $7,767 $34.4 1.78 % $349 $3.9 0.12

$1,184 $6.4 0.05

Loans not covered under loss-sharing agreements with the FDIC: Commercial 8,957 110.6 4.97 8,936 107.4 4.77 8,383 100.9 4.88 21 3.2 0.20 574 9.7 0.09 Construction 704 9.3 5.30 662 9.8 5.88 435 6.1 5.67 42 (0.5 ) (0.58 ) 269 3.2 (0.37 ) Mortgage 6,830 89.7 5.25 6,947 90.6 5.22 6,733 85.9 5.10 (117 ) (0.9 ) 0.03 97 3.8 0.15 Consumer 3,807 98.0 10.35 3,819 97.6 10.13 3,845 95.4 10.07 (12 ) 0.4 0.22 (38 ) 2.6 0.28 Lease financing 630 10.7 6.78 611 10.6 6.97 569 10.0 7.01 19 0.1 (0.19 ) 61 0.7 (0.23 ) Total loans (excluding WB loans) 20,928 318.3 6.11 20,975 316.0 5.99 19,965 298.3 6.03 (47 ) 2.3 0.12 963 20.0 0.08 WB loans 2,058 44.9 8.76 2,156 47.9 8.82 2,540 57.4 9.14 (98 ) (3.0 ) (0.06 ) (482 ) (12.5 ) (0.38 ) Total loans 22,986 363.2 6.34 23,131 363.9 6.26 22,505 355.7 6.38 (145 ) (0.7 ) 0.08 481 7.5 (0.04 ) Total interest earning assets 31,937 $404.0 5.08 % 31,733 $400.8 5.02 % 30,272 $390.1 5.20 % 204 $3.2 0.06

1,665 $13.9 (0.12 ) % Allowance for loan losses (536 ) (573 ) (609 ) 37 73 Other non-interest earning assets 4,491 4,416 4,143 75 348 Total average assets $35,892 $35,576 $33,806 $316 $2,086 Liabilities and Stockholders' Equity: Interest bearing deposits: NOW and money market $5,712 $5.6 0.39 % $5,547 $5.1 0.36 % $4,983 $4.2 0.34 % $165 $0.5 0.03

$729 $1.4 0.05

Savings 7,275 4.3 0.23 7,119 4.1 0.23 6,892 3.9 0.23 156 0.2 - 383 0.4 - Time deposits 8,058 20.0 1.00 8,192 19.2 0.93 7,747 17.8 0.93 (134 ) 0.8 0.07 311 2.2 0.07 Total interest bearing deposits 21,045 29.9 0.57 20,858 28.4 0.54 19,622 25.9 0.53 187 1.5 0.03 1,423 4.0 0.04 Borrowings 2,441 21.7 3.58 2,439 21.8 3.57 2,877 21.0 2.93 2 (0.1 ) 0.01 (436 ) 0.7 0.65 Total interest bearing liabilities 23,486 51.6 0.88 23,297 50.2 0.86 22,499 46.9 0.84 189 1.4 0.02 987 4.7 0.04 Net interest spread 4.20 % 4.16 % 4.36 % 0.04

(0.16 ) % Non-interest bearing deposits 6,293 6,246 5,963 47 330 Other liabilities 920 953 1,021 (33 ) (101 ) Liabilities from discontinued operations 2 2 3 - (1 ) Stockholders' equity 5,191 5,078 4,320 113 871 Total average liabilities and stockholders' equity $35,892 $35,576 $33,806 $316 $2,086 Adjusted net interest income / margin non-taxable equivalent basis $352.4 4.43 % $350.6 4.39 % $343.2 4.57 % $1.8 0.04

$9.2 (0.14 ) % Doral fair value remeasurement adjustment - 1.9 - (1.9 ) - Net interest income / margin non-taxable equivalent basis $352.4 4.43 % $352.5 4.42 % $343.2 4.57 % ($0.1 ) 0.01

$9.2 (0.14 ) % Popular, Inc. Financial Supplement to First Quarter 2016 Earnings Release Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE

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Popular, Inc. Financial Supplement to First Quarter 2016 Earnings Release Table F - Mortgage Banking Activities and Other Service Fees (Unaudited) Mortgage Banking Activities Variance Quarters ended Q1 2016 vs. Q1 2016 vs. (In thousands) 31-Mar-16 31-Dec-15 31-Mar-15 Q4 2015 Q1 2015 Mortgage servicing fees, net of fair value adjustments: Mortgage servicing fees $14,802 $15,504 $12,248 $(702 ) $2,554 Mortgage servicing rights fair value adjustments (8,477 ) (2,096 ) (4,929 ) (6,381 ) (3,548 ) Total mortgage servicing fees, net of fair value adjustments 6,325 13,408 7,319 (7,083 ) (994 ) Net gain on sale of loans, including valuation on loans held-for-sale 7,110 10,337 7,280 (3,227 ) (170 ) Trading account loss: Unrealized (losses) gains on outstanding derivative positions (80 ) 27 17 (107 ) (97 ) Realized losses on closed derivative positions (2,804 ) (342 ) (1,764 ) (2,462 ) (1,040 ) Total trading account loss (2,884 ) (315 ) (1,747 ) (2,569 ) (1,137 ) Total mortgage banking activities $10,551 $23,430 $12,852 $(12,879 ) $(2,301 ) Other Service Fees Variance Quarters ended Q1 2016 vs. Q1 2016 vs. (In thousands) 31-Mar-16 31-Dec-15 31-Mar-15 Q4 2015 Q1 2015 Other service fees: Debit card fees $11,287 $11,768 $11,125 $(481 ) $162 Insurance fees 12,850 23,813 12,041 (10,963 ) 809 Credit card fees 16,858 17,528 16,149 (670 ) 709 Sale and administration of investment products 4,839 5,578 5,930 (739 ) (1,091 ) Trust fees 4,235 4,947 4,602 (712 ) (367 ) Other fees 3,313 3,294 3,779 19 (466 ) Total other service fees $53,382 $66,928 $53,626 $(13,546 ) $(244 ) Popular, Inc. Financial Supplement to First Quarter 2016 Earnings Release Table G - Loans and Deposits (Unaudited) Loans - Ending Balances Variance (In thousands) 31-Mar-16 31-Dec-15 31-Mar-15

Q1 2016 vs.Q4 2015

Q1 2016 vs.Q1 2015

Loans not covered under FDIC loss-sharing agreements: Commercial $10,228,389 $10,099,163 $8,653,561 $129,226 $1,574,828 Construction 734,858 681,106 690,728 53,752 44,130 Legacy [1] 61,044 64,436 77,675 (3,392 ) (16,631 ) Lease financing 643,142 627,650 581,119 15,492 62,023 Mortgage 6,979,201 7,036,081 7,189,227 (56,880 ) (210,026 ) Consumer 3,861,103 3,837,679 3,820,620 23,424 40,483 Total non-covered loans held-in-portfolio $22,507,737 $22,346,115 $21,012,930 $161,622 $1,494,807 Loans covered under FDIC loss-sharing agreements 625,130 646,115 2,456,552 (20,985 ) (1,831,422 ) Total loans held-in-portfolio $23,132,867 $22,992,230 $23,469,482 $140,637 $(336,615 ) Loans held-for-sale: Commercial $42,771 $45,074 $8,240 $(2,303 ) $34,531 Construction 2 95 - (93 ) 2 Mortgage 82,542 91,831 152,362 (9,289 ) (69,820 ) Total loans held-for-sale $125,315 $137,000 $160,602 $(11,685 ) $(35,287 ) Total loans $23,258,182 $23,129,230 $23,630,084 $128,952 $(371,902 )

[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.

Deposits - Ending Balances Variance (In thousands) 31-Mar-16 31-Dec-15 31-Mar-15 Q1 2016 vs. Q4 2015 Q1 2016 vs.Q1 2015 Demand deposits [1] $7,324,982 $7,221,238 $7,163,635 $103,744 $161,347 Savings, NOW and money market deposits (non-brokered) 11,940,103 11,440,693 10,932,870 499,410 1,007,233 Savings, NOW and money market deposits (brokered) 383,745 382,424 409,113 1,321 (25,368 ) Time deposits (non-brokered) 7,348,132 7,274,157 7,243,414 73,975 104,718 Time deposits (brokered CDs) 529,631 891,211 1,524,657 (361,580 ) (995,026 ) Total deposits $27,526,593 $27,209,723 $27,273,689 $316,870 $252,904 [1] Includes interest and non-interest bearing demand deposits. Popular, Inc. Financial Supplement to First Quarter 2016 Earnings Release Table H - Non-Performing Assets (Unaudited) Variance As a % of As a % of As a % of

loans

HIP by

Q1 2016 vs. Q1 2016 vs. (Dollars in thousands) 31-Mar-16 category 31-Dec-15 category 31-Mar-15 category Q4 2015 Q1 2015 Non-accrual loans: Commercial $197,631 1.9 % $181,816 1.8 % $274,438 3.2 % $15,815 $(76,807 ) Construction 3,941 0.5 3,550 0.5 13,214 1.9 391 (9,273 ) Legacy [1] 4,046 6.6 3,649 5.7 2,288 2.9 397 1,758 Lease financing 3,419 0.5 3,009 0.5 2,506 0.4 410 913 Mortgage 334,907 4.8 351,471 5.0 328,615 4.6 (16,564 ) 6,292 Consumer 55,582 1.4 58,304 1.5 43,892 1.1 (2,722 ) 11,690 Total non-performing loans held- in-portfolio, excluding covered loans 599,526 2.7 % 601,799 2.7 % 664,953 3.2 % (2,273 ) (65,427 )

Non-performing loans

held-for-sale [2] 42,743 45,169 8,404 (2,426 ) 34,339 Other real estate owned (“OREO”), excluding covered OREO 165,960 155,231 128,170 10,729 37,790 Total non-performing assets, excluding covered assets 808,229 802,199 801,527 6,030 6,702 Covered loans and OREO 39,916 40,571 133,211 (655 ) (93,295 ) Total non-performing assets $848,145 $842,770 $934,738 $5,375 $(86,593 ) Accruing loans past due 90 days or more [3] $426,437 $446,725 $451,035 $(20,288 ) $(24,598 ) Ratios excluding covered loans: Non-performing loans held-in- portfolio to loans held-in- portfolio 2.66 % 2.69 % 3.16 % Allowance for loan losses to loans held-in-portfolio 2.26 2.25 2.46 Allowance for loan losses to non-performing loans, excluding loans held-for-sale 84.80 83.57 77.63 Ratios including covered loans: Non-performing assets to total assets 2.35 % 2.36 % 2.62 % Non-performing loans held-in- portfolio to loans held-in- portfolio 2.61 2.63 2.92 Allowance for loan losses to loans held-in-portfolio 2.33 2.34 2.51 Allowance for loan losses to non-performing loans, excluding loans held-for-sale 89.29 88.68 85.99

[2] Non-performing loans held-for-sale as of March 31, 2016 consisted of $42.7 million in commercial loans and $2 thousand in construction loans (December 31, 2015 - $45 million in commercial loans and $95 thousand in construction loans; March 31, 2015 - $225 thousand in mortgage loans and $8.2 million in commercial loans.)

[3] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These balances include $161 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2016 (December 31, 2015 - $164 million; March 31, 2015 - $134 million). Furthermore, the Corporation has approximately $68 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (December 31, 2015 - $70 million; March 31, 2015 - $69 million).

Popular, Inc. Financial Supplement to First Quarter 2016 Earnings Release Table I - Activity in Non-Performing Loans (Unaudited) Commercial loans held-in-portfolio: Quarter ended Quarter ended 31-Mar-16 31-Dec-15 (In thousands) BPPR BPNA Popular, Inc. BPPR BPNA Popular, Inc. Beginning balance NPLs $177,902 $3,914 $181,816 $235,895 $3,502 $239,397 Plus: New non-performing loans 21,657 15,064 36,721 17,771 3,339 21,110 Advances on existing non-performing loans - 1 1 - - - Less: Non-performing loans transferred to OREO (1,103 ) - (1,103 ) (852 ) - (852 ) Non-performing loans charged-off (4,949 ) (381 ) (5,330 ) (44,423 ) (232 ) (44,655 ) Loans returned to accrual status / loan collections (10,868 ) (3,606 ) (14,474 ) (9,144 ) (2,222 ) (11,366 ) Loans transferred to held-for-sale - - - - (473 ) (473 ) Non-performing loans sold - - - (21,345 ) - (21,345 ) Ending balance NPLs $182,639 $14,992 $197,631 $177,902 $3,914 $181,816 Construction loans held-in-portfolio: Quarter ended Quarter ended 31-Mar-16 31-Dec-15 (In thousands) BPPR BPNA Popular, Inc. BPPR BPNA Popular, Inc. Beginning balance NPLs $3,550 $- $3,550 $3,605 $- $3,605 Plus: New non-performing loans 207 671 878 30 1,106 1,136 Less: Non-performing loans transferred to OREO (304 ) - (304 ) - - - Non-performing loans charged-off (110 ) - (110 ) (47 ) - (47 ) Loans returned to accrual status / loan collections (73 ) - (73 ) (38 ) (1,106 ) (1,144 ) Ending balance NPLs $3,270 $671 $3,941 $3,550 $- $3,550 Mortgage loans held-in-portfolio: Quarter ended Quarter ended 31-Mar-16 31-Dec-15 (In thousands) BPPR BPNA Popular, Inc. BPPR BPNA Popular, Inc. Beginning balance NPLs $337,933 $13,538 $351,471 $331,022 $12,388 $343,410 Plus: New non-performing loans 78,679 6,920 85,599 85,208 7,208 92,416 Less: Non-performing loans transferred to OREO (9,226 ) - (9,226 ) (8,860 ) (452 ) (9,312 ) Non-performing loans charged-off (10,889 ) (276 ) (11,165 ) (9,142 ) (300 ) (9,442 ) Loans returned to accrual status / loan collections (73,659 ) (8,113 ) (81,772 ) (60,295 ) (5,306 ) (65,601 ) Ending balance NPLs $322,838 $12,069 $334,907 $337,933 $13,538 $351,471 Legacy loans held-in-portfolio: Quarter ended Quarter ended 31-Mar-16 31-Dec-15 (In thousands) BPPR BPNA Popular, Inc. BPPR BPNA Popular, Inc. Beginning balance NPLs $- $3,649 $3,649 $- $4,059 $4,059 Plus: New non-performing loans - 604 604 - 247 247 Advances on existing non-performing loans - 2 2 - 9 9 Less: Non-performing loans charged-off - - - - (151 ) (151 ) Loans returned to accrual status / loan collections - (209 ) (209 ) - (515 ) (515 ) Ending balance NPLs $- $4,046 $4,046 $- $3,649 $3,649 Total non-performing loans held-in-portfolio (excluding consumer and covered loans): Quarter ended Quarter ended 31-Mar-16 31-Dec-15 (In thousands) BPPR BPNA Popular, Inc. BPPR BPNA Popular, Inc. Beginning balance NPLs $519,385 $21,101 $540,486 $570,522 $19,949 $590,471 Plus: New non-performing loans 100,543 23,259 123,802 103,009 11,900 114,909 Advances on existing non-performing loans - 3 3 - 9 9 Less: Non-performing loans transferred to OREO (10,633 ) - (10,633 ) (9,712 ) (452 ) (10,164 ) Non-performing loans charged-off (15,948 ) (657 ) (16,605 ) (53,612 ) (683 ) (54,295 ) Loans returned to accrual status / loan collections (84,600 ) (11,928 ) (96,528 ) (69,477 ) (9,149 ) (78,626 ) Loans transferred to held-for-sale - - - - (473 ) (473 ) Non-performing loans sold - - - (21,345 ) - (21,345 ) Ending balance NPLs $508,747 $31,778 $540,525 $519,385 $21,101 $540,486 Popular, Inc. Financial Supplement to First Quarter 2016 Earnings Release Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios (Unaudited) Quarter ended Quarter ended Quarter ended 31-Mar-16 31-Dec-15 31-Mar-15 (Dollars in thousands) Non-covered loans Covered loans Total Non-covered loans Covered loans Total Non-covered loans Covered loans Total Balance at beginning of period $502,935 $34,176 $537,111 $536,005 $34,509 $570,514 $519,719 $82,073 $601,792 Provision (reversal of provision) for loan losses 47,940 (3,105 ) 44,835 57,711 820 58,531 29,711 10,324 40,035 550,875 31,071 581,946 593,716 35,329 629,045 549,430 92,397 641,827 Net loans charged-off (recovered): BPPR Commercial 2,704 - 2,704 42,857 - 42,857 4,802 11,599 16,401 Construction 311 - 311 2,966 - 2,966 (2,925 ) 5,771 2,846 Lease financing 1,638 - 1,638 667 - 667 769 - 769 Mortgage 14,696 996 15,692 14,255 1,168 15,423 10,473 3,281 13,754 Consumer 21,298 30 21,328 21,266 (15 ) 21,251 23,653 (727 ) 22,926 Total BPPR 40,647 1,026 41,673 82,011 1,153 83,164 36,772 19,924 56,696 BPNA Commercial 205 - 205 (525 ) - (525 ) (479 ) - (479 ) Legacy [1] (247 ) - (247 ) (359 ) - (359 ) (1,828 ) - (1,828 ) Mortgage 230 - 230 162 - 162 154 - 154 Consumer 1,613 - 1,613 1,581 - 1,581 1,267 - 1,267 Total BPNA 1,801 - 1,801 859 - 859 (886 ) - (886 ) Total loans charged-off - Popular, Inc. 42,448 1,026 43,474 82,870 1,153 84,023 35,886 19,924 55,810 Net (write-downs) recoveries [2] - - - (7,911 ) - (7,911 ) 2,680 - 2,680 Balance at end of period $508,427 $30,045 $538,472 $502,935 $34,176 $537,111 $516,224 $72,473 $588,697 POPULAR, INC. Annualized net charge-offs to average loans held-in- portfolio 0.76 % 0.76 % 1.48 % 1.46 % 0.72 % 1.00 % Provision for loan losses to net charge-offs [3] 1.13 x 1.03 x 0.70 x 0.70 x 0.83 x 0.72 x BPPR Annualized net charge-offs to average loans held-in- portfolio 0.93 % 0.92 % 1.86 % 1.82 % 0.92 % 1.22 % Provision for loan losses to net charge-offs [3] 1.08 x 0.98 x 0.68 x 0.68 x 0.87 x 0.74 x BPNA Annualized net charge-offs (recoveries) to average loans held-in-portfolio 0.15 % 0.07 % (0.09) % Provision for loan losses to net charge-offs 2.26 2.42 N.M.

[2] Net write-downs are related to loans sold or reclassified to held-for-sale.

[3] Excluding provision for loan losses and net write-down related to loans sold or reclassified to held-for-sale.

N.M. - Not meaningful.

Popular, Inc. Financial Supplement to First Quarter 2016 Earnings Release Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED (Unaudited) 31-Mar-16 (Dollars in thousands) Commercial Construction Legacy [3] Mortgage Lease financing Consumer

Total [2]

Specific ALLL $55,098 $172 $- $43,252 $608 $24,907 $124,037 Impaired loans [1] $338,980 $2,020 $- $479,092 $2,391 $112,167 $934,650 Specific ALLL to impaired loans [1] 16.25 % 8.51 % - % 9.03 % 25.43 % 22.21 % 13.27 % General ALLL $152,079 $8,804 $2,484 $86,347 $10,427 $124,249 $384,390 Loans held-in-portfolio, excluding impaired loans [1] $9,889,409 $732,838 $61,044 $6,500,109 $640,751 $3,748,936 $21,573,087 General ALLL to loans held-in-portfolio, excluding impaired loans [1] 1.54 % 1.20 % 4.07 % 1.33 % 1.63 % 3.31 % 1.78 % Total ALLL $207,177 $8,976 $2,484 $129,599 $11,035 $149,156 $508,427 Total non-covered loans held-in-portfolio [1] $10,228,389 $734,858 $61,044 $6,979,201 $643,142 $3,861,103 $22,507,737 ALLL to loans held-in-portfolio [1] 2.03 % 1.22 % 4.07 % 1.86 % 1.72 % 3.86 % 2.26 % [1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.

[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of March 31, 2016 the general allowance on the covered loans amounted to $30.0 million.

[3] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.

31-Dec-15 (Dollars in thousands) Commercial Construction Legacy [3] Mortgage Lease financing Consumer

Total [2]

Specific ALLL $49,243 $264 $- $44,029 $573 $23,963 $118,072 Impaired loans [1] $337,133 $2,481 $- $471,932 $2,404 $111,836 $925,786 Specific ALLL to impaired loans [1] 14.61 % 10.64 % - % 9.33 % 23.84 % 21.43 % 12.75 % General ALLL $147,590 $8,605 $2,687 $89,283 $10,420 $126,278 $384,863 Loans held-in-portfolio, excluding impaired loans [1] $9,762,030 $678,625 $64,436 $6,564,149 $625,246 $3,725,843 $21,420,329 General ALLL to loans held-in-portfolio, excluding impaired loans [1] 1.51 % 1.27 % 4.17 % 1.36 % 1.67 % 3.39 % 1.80 % Total ALLL $196,833 $8,869 $2,687 $133,312 $10,993 $150,241 $502,935 Total non-covered loans held-in-portfolio [1] $10,099,163 $681,106 $64,436 $7,036,081 $627,650 $3,837,679 $22,346,115 ALLL to loans held-in-portfolio [1] 1.95 % 1.30 % 4.17 % 1.89 % 1.75 % 3.91 % 2.25 % [1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.

[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of December 31, 2015 the general allowance on the covered loans amounted to $34.2 million.

Variance (Dollars in thousands) Commercial Construction Legacy Mortgage Lease financing Consumer Total Specific ALLL $5,855 $(92 ) $- $(777 ) $35 $944 $5,965 Impaired loans $1,847 $(461 ) $- $7,160 $(13 ) $331 $8,864 General ALLL $4,489 $199 $(203 ) $(2,936 ) $7 $(2,029 ) $(473 ) Loans held-in-portfolio, excluding impaired loans $127,379 $54,213 $(3,392 ) $(64,040 ) $15,505 $23,093 $152,758 Total ALLL $10,344 $107 $(203 ) $(3,713 ) $42 $(1,085 ) $5,492 Total non-covered loans held-in-portfolio $129,226 $53,752 $(3,392 ) $(56,880 ) $15,492 $23,424 $161,622 Popular, Inc. Financial Supplement to First Quarter 2016 Earnings Release Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS (Unaudited) 31-Mar-16 Puerto Rico (In thousands) Commercial Construction Mortgage Lease financing Consumer Total Allowance for credit losses: Specific ALLL non-covered loans $55,098 $172 $41,660 $608 $24,326 $121,864 General ALLL non-covered loans 142,492 4,065 82,840 10,427 111,459 351,283 ALLL - non-covered loans 197,590 4,237 124,500 11,035 135,785 473,147 Specific ALLL covered loans - - - - - - General ALLL covered loans - - 29,822 - 223 30,045 ALLL - covered loans - - 29,822 - 223 30,045 Total ALLL $197,590 $4,237 $154,322 $11,035 $136,008 $503,192 Loans held-in-portfolio: Impaired non-covered loans $338,980 $2,020 $471,183 $2,391 $109,920 $924,494 Non-covered loans held-in-portfolio, excluding impaired loans 7,029,311 103,124 5,628,576 640,751 3,199,171 16,600,933 Non-covered loans held-in-portfolio 7,368,291 105,144 6,099,759 643,142 3,309,091 17,525,427 Impaired covered loans - - - - - - Covered loans held-in-portfolio, excluding impaired loans - - 606,711 - 18,419 625,130 Covered loans held-in-portfolio - - 606,711 - 18,419 625,130 Total loans held-in-portfolio $7,368,291 $105,144 $6,706,470 $643,142 $3,327,510 $18,150,557 31-Dec-15 Puerto Rico (In thousands) Commercial Construction Mortgage Lease financing Consumer Total Allowance for credit losses: Specific ALLL non-covered loans $49,243 $264 $42,965 $573 $23,478 $116,523 General ALLL non-covered loans 137,682 4,693 85,362 10,420 115,243 353,400 ALLL - non-covered loans 186,925 4,957 128,327 10,993 138,721 469,923 Specific ALLL covered loans - - - - - - General ALLL covered loans - - 33,967 - 209 34,176 ALLL - covered loans - - 33,967 - 209 34,176 Total ALLL $186,925 $4,957 $162,294 $10,993 $138,930 $504,099 Loans held-in-portfolio: Impaired non-covered loans $337,133 $2,481 $465,117 $2,404 $109,660 $916,795 Non-covered loans held-in-portfolio, excluding impaired loans 7,031,086 98,467 5,662,374 625,246 3,236,642 16,653,815 Non-covered loans held-in-portfolio 7,368,219 100,948 6,127,491 627,650 3,346,302 17,570,610 Impaired covered loans - - - - - - Covered loans held-in-portfolio, excluding impaired loans - - 627,102 - 19,013 646,115 Covered loans held-in-portfolio - - 627,102 - 19,013 646,115 Total loans held-in-portfolio $7,368,219 $100,948 $6,754,593 $627,650 $3,365,315 $18,216,725 Variance (In thousands) Commercial Construction Mortgage Lease financing Consumer Total Allowance for credit losses: Specific ALLL non-covered loans $5,855 $(92 ) $(1,305 ) $35 $848 $5,341 General ALLL non-covered loans 4,810 (628 ) (2,522 ) 7 (3,784 ) (2,117 ) ALLL - non-covered loans 10,665 (720 ) (3,827 ) 42 (2,936 ) 3,224 Specific ALLL covered loans - - - - - - General ALLL covered loans - - (4,145 ) - 14 (4,131 ) ALLL - covered loans - - (4,145 ) - 14 (4,131 ) Total ALLL $10,665 $(720 ) $(7,972 ) $42 $(2,922 ) $(907 ) Loans held-in-portfolio: Impaired non-covered loans $1,847 $(461 ) $6,066 $(13 ) $260 $7,699 Non-covered loans held-in-portfolio, excluding impaired loans (1,775 ) 4,657 (33,798 ) 15,505 (37,471 ) (52,882 ) Non-covered loans held-in-portfolio 72 4,196 (27,732 ) 15,492 (37,211 ) (45,183 ) Impaired covered loans - - - - - - Covered loans held-in-portfolio, excluding impaired loans - - (20,391 ) - (594 ) (20,985 ) Covered loans held-in-portfolio - - (20,391 ) - (594 ) (20,985 ) Total loans held-in-portfolio $72 $4,196 $(48,123 ) $15,492 $(37,805 ) $(66,168 ) Popular, Inc. Financial Supplement to First Quarter 2016 Earnings Release Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS (Unaudited) 31-Mar-16 U.S. Mainland (In thousands) Commercial Construction Legacy Mortgage Consumer Total Allowance for credit losses: Specific ALLL $- $- $- $1,592 $581 $2,173 General ALLL 9,587 4,739 2,484 3,507 12,790 33,107 Total ALLL $9,587 $4,739 $2,484 $5,099 $13,371 $35,280 Loans held-in-portfolio: Impaired loans $- $- $- $7,909 $2,247 $10,156 Loans held-in-portfolio, excluding impaired loans 2,860,098 629,714 61,044 871,533 549,765 4,972,154 Total loans held-in-portfolio $2,860,098 $629,714 $61,044 $879,442 $552,012 $4,982,310 31-Dec-15 U.S. Mainland (In thousands) Commercial Construction Legacy Mortgage Consumer Total Allowance for credit losses: Specific ALLL $- $- $- $1,064 $485 $1,549 General ALLL 9,908 3,912 2,687 3,921 11,035 31,463 Total ALLL $9,908 $3,912 $2,687 $4,985 $11,520 $33,012 Loans held-in-portfolio: Impaired loans $- $- $- $6,815 $2,176 $8,991 Loans held-in-portfolio, excluding impaired loans 2,730,944 580,158 64,436 901,775 489,201 4,766,514 Total loans held-in-portfolio $2,730,944 $580,158 $64,436 $908,590 $491,377 $4,775,505 Variance (In thousands) Commercial Construction Legacy Mortgage Consumer Total Allowance for credit losses: Specific ALLL $- $- $- $528 $96 $624 General ALLL (321 ) 827 (203 ) (414 ) 1,755 1,644 Total ALLL $(321 ) $827 $(203 ) $114 $1,851 $2,268 Loans held-in-portfolio: Impaired loans $- $- $- $1,094 $71 $1,165 Loans held-in-portfolio, excluding impaired loans 129,154 49,556 (3,392 ) (30,242 ) 60,564 205,640 Total loans held-in-portfolio $129,154 $49,556 $(3,392 ) $(29,148 ) $60,635 $206,805 Popular, Inc. Financial Supplement to First Quarter 2016 Earnings Release Table N - Reconciliation to GAAP Financial Measures (Unaudited) (In thousands, except share or per share information) 31-Mar-16 31-Dec-15 31-Mar-15 Total stockholders’ equity $5,250,300 $5,105,324 $4,377,120 Less: Preferred stock (50,160 ) (50,160 ) (50,160 ) Less: Goodwill (631,095 ) (626,388 ) (507,820 ) Less: Other intangibles (54,080 ) (58,109 ) (59,063 ) Total tangible common equity $4,514,965 $4,370,667 $3,760,077 Total assets $36,147,009 $35,761,733 $35,615,447 Less: Goodwill (631,095 ) (626,388 ) (507,820 ) Less: Other intangibles (54,080 ) (58,109 ) (59,063 ) Total tangible assets $35,461,834 $35,077,236 $35,048,564 Tangible common equity to tangible assets 12.73 % 12.46 % 10.73 % Common shares outstanding at end of period 103,670,005 103,618,976 103,486,927 Tangible book value per common share $43.55 $42.18 $36.33 Popular, Inc. Financial Supplement to First Quarter 2016 Earnings Release Table O - Financial Information - Westernbank Loans (Unaudited) Revenues Quarters ended (In thousands) 31-Mar-16 31-Dec-15 Variance Interest income on WB loans $44,904 $47,870 $(2,966 ) FDIC loss-share expense: Amortization of indemnification asset (4,042 ) (3,926 ) (116 ) 80% mirror accounting on credit impairment losses (reversal) [1] (2,093 ) (52 ) (2,041 ) 80% mirror accounting on reimbursable expenses 3,950 2,654 1,296

80% mirror accounting on recoveries on covered assets, including rental income on OREOs, subject to reimbursement to the FDIC

(645 ) (6,014 ) 5,369 Change in true-up payment obligation (443 ) 2,782 (3,225 ) Other 127 197 (70 ) Total FDIC loss-share expense (3,146 ) (4,359 ) 1,213 Total revenues 41,758 43,511 (1,753 ) Provision (reversal) for loan losses- WB loans (356 ) 7,817 (8,173 ) Total revenues less provision (reversal) for loan losses $42,114 $35,694 $6,420

[1] Reductions in expected cash flows for ASC 310-30 loans, which may impact the provision for loan losses, may consider reductions in both principal and interest cash flow expectations. The amount covered under the FDIC loss-sharing agreements for interest not collected from borrowers is limited under the agreements (approximately 90 days); accordingly, these amounts are not subject fully to the 80% mirror accounting.

Non-personnel operating expenses Quarters ended [2] (In thousands) [1] 31-Mar-16 31-Dec-15 Variance Professional fees $3,316 $6,315 $(2,999 ) OREO expenses 2,205 1,911 294 Other operating expenses 1,971 2,603 (632 ) Total operating expenses $7,492 $10,829 $(3,337 )

[1] Includes expenses related to loans subject, and not subject, to the FDIC loss-sharing agreement.

[2] Expense reimbursements from the FDIC may be recorded with a time lag, since these are claimed upon the event of loss or charge-off of the loans which may occur in a subsequent period.

Quarterly average assets Quarters ended (In millions) 31-Mar-16 31-Dec-15 Variance Loans $2,058 $2,156 $(98 ) FDIC loss-share asset 233 303 (70 ) Activity in the carrying amount and accretable yield of loans accounted for under ASC 310-30 Quarters ended 31-Mar-16 31-Dec-15 (In thousands) Accretable yield Carrying amount of loans Accretable yield Carrying amount of loans Beginning balance $1,112,458 $1,974,501 $1,145,449 $2,076,012 Accretion

(43,533

)

43,533

(46,582 ) 46,582 Changes in expected cash flows 59,883 - 13,591 - Collections / charge-offs - (82,593 ) - (148,093 ) Ending balance

1,128,808

1,935,441

1,112,458 1,974,501 Allowance for loan losses - ASC 310-30 loans - (62,967 ) - (63,563 ) Ending balance, net of allowance for loan losses

$1,128,808

$1,872,474

$1,112,458 $1,910,938 The carrying amount of loans acquired from Westernbank and accounted for under ASC 310-30 which remain subject to the loss-sharing agreement with the FDIC amounted to approximately $615 million as of March 31, 2016 and $636 million as of December 31, 2015. Activity in the carrying amount of the FDIC indemnity asset Quarters ended (In thousands) 31-Mar-16 31-Dec-15 Balance at beginning of period $310,221 $311,946 Amortization (4,042 ) (3,926 ) Credit impairment losses (reversal) to be covered under loss-sharing agreements (2,093 ) (52 ) Reimbursable expenses to be covered under loss-sharing agreements 3,950 2,654 Net payments from FDIC under loss-sharing agreements (88,588 ) (2,560 ) Other adjustments attributable to FDIC loss-sharing agreements - 2,159 Balance at end of period $219,448 $310,221 Activity in the remaining FDIC loss-share asset amortization Quarters ended (In thousands) 31-Mar-16 31-Dec-15 Balance at beginning of period $26,100 $27,367 Amortization (4,042 ) (3,926 ) Impact of lower projected losses 3,147 2,659 Balance at end of period $25,205 $26,100

View source version on businesswire.com: http://www.businesswire.com/news/home/20160425005186/en/

Popular, Inc.Investor Relations:Brett Scheiner, 212-417-6721Investor Relations OfficerBScheiner@BPOP.comorMedia Relations:Teruca Rullán, 787-281-5170Mobile: 917-679-3596Senior Vice President, Corporate Communications

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