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

and

our

business;

●

the impact of the pending debt

restructuring proceedings under Title III of the

Puerto Rico Oversight, Management and

Economic

Stability

Act

(“PROMESA”)

and

of

other

actions

taken

or

to

be

taken

to

address

Puerto

fiscal

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

loans to governmental entities and of

our

commercial,

and

loan

where

private

could

be

directly

by

governmental action;

●

the

deposits held

at

the Corporation,

whose future

balances are

uncertain and

to

predict

and

may

be

by

factors

such

as

the

amount

of

Federal

funds

by

the

P.R.

and

the

rate

of

expenditure

of

such

funds,

as

well

as

the

condition,

and

cash

management practices of the Puerto Rico Government

and its instrumentalities;

●

unforeseen

or

catastrophic

events,

extreme

weather

events,

hurricanes,

other

natural

disasters,

man-made disasters, acts of violence or war or

pandemics, epidemics and other health-related

crises, or the fear of any

such event

occurring, any of

which could cause

adverse consequences for

our business, including,

but not

limited to,

disruptions in our operations;

●

our ability to

achieve the expected

benefits from our

transformation initiative, including

our ability to

achieve projected

earnings, efficiencies and our targeted sustainable return on

tangible common equity of 14% by the end

of 2025;

●

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

to

service certain

of Banco

Popular de

Puerto Rico’s

key channels,

as well

as the

entry into

amended and

restated

commercial agreements (the “Evertec Business Acquisition

Transaction”);

●

the fiscal and monetary policies of the federal government

and its agencies;

●

federal

bank regulatory

and supervisory

policies, including

required levels

of

capital, liquidity,

resolution-

related requirements and the impact of other proposed

capital standards on our capital ratios;

●

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

such as the special assessment implemented

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

resulting from the receiverships of Silicon Valley

Bank and Signature Bank;

●

regulatory approvals

that may

be necessary

to undertake

certain actions

or consummate

strategic transactions,

such

as acquisitions and dispositions;

●

the

relative strength

or

weakness

of

the

consumer and

commercial credit

sectors

and

of

the

real

estate markets

in

Puerto Rico and the other markets in which

our borrowers are located;

●

a deterioration in the credit quality of our

clients, customers and counterparties;

●

the performance of the stock and bond markets;

●

competition in the financial services industry;

●

possible legislative, tax or regulatory changes;

●

a failure

in or

breach of

our operational

or security

systems or

infrastructure or

those of

Evertec, Inc.,

our provider

of

core financial

transaction processing and

information technology services,

or of

third parties

providing services

to us,

as

a

result

of

cyberattacks,

e-fraud,

denial-of-services

and

computer

intrusion,

resulting

in,

among

other

things, loss or breach of customer data, disruption

of services, reputational damage or additional

costs to Popular;

●

changes in market rates and prices which may

adversely impact the value of financial assets

and liabilities;

●

potential judgments,

claims, damages,

penalties, fines,

enforcement actions

and

reputational damage

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

regulatory

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

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:

$

359,973

$

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

28,045

31,568

Debt securities available-for-sale, at fair

value:

Pledged securities with creditors’ right to repledge

82,233

72,827

Other debt securities available-for-sale

18,461,046

16,656,217

18,543,279

Less – Allowance for credit losses

Debt securities available-for-sale, net

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

Pledged securities with creditors’ right to repledge

26,742

27,083

Other debt securities held-to-maturity

7,948,782

8,167,252

Debt securities held-to-maturity (fair

value 2024 - $

; 2023 - $

)

7,975,524

8,194,335

Less – Allowance for credit losses

6,251

5,780

Debt securities held-to-maturity, net

Equity securities (realizable value 2024 -

$

196,482

; 2023 - $

194,641

)

195,791

193,726

Loans held-for-sale, at fair value

8,225

4,301

35,978,602

35,420,879

Less – Unearned income

386,982

355,908

730,077

729,341

Total loans held-in-portfolio, net

34,861,543

34,335,630

Premises and equipment, net

599,058

565,284

Other real estate

70,225

80,416

Accrued income receivable

260,162

263,433

Mortgage servicing rights, at fair value

113,386

118,109

2,172,555

2,014,564

Goodwill

804,428

804,428

Other intangible assets

8,235

9,764

$

$

Liabilities and Stockholders’ Equity

Liabilities:

Non-interest bearing

$

15,470,082

$

15,419,624

Interest bearing

50,060,780

48,198,619

105,684

91,384

941,580

986,948

894,268

914,627

Total liabilities

67,472,394

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;

104,811,971

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,

32,446,045

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

$

648,739

$

570,120

$

1,287,469

$

1,111,330

88,316

100,775

176,832

166,499

184,852

123,112

351,747

255,200

Total interest income

921,907

794,007

1,816,048

1,533,029

Interest expense:

339,939

243,488

669,435

436,703

1,126

1,624

2,318

4,509

Long-term debt

12,530

17,227

25,239

28,493

Total interest expense

353,595

262,339

696,992

469,705

568,312

531,668

46,794

37,192

119,392

84,829

Net interest income after provision for credit losses

521,518

494,476

999,664

978,495

Non-interest income:

37,526

37,781

74,968

72,459

Other service fees

96,863

94,265

191,135

184,341

Mortgage banking activities (Refer to Note 9)

5,723

2,316

10,083

9,716

Net gain, including impairment on equity securities

1,384

1,422

2,484

Net gain

on trading account debt securities

Adjustments to indemnity reserves on loans sold

(456)

(25)

Other operating income

25,386

25,146

51,903

52,863

Total non-interest income

166,306

160,471

330,124

322,432

Operating expenses:

Personnel costs

197,424

191,468

412,801

390,228

Net occupancy expenses

27,692

27,165

55,733

53,204

Equipment expenses

9,662

9,561

19,229

17,973

Other taxes

15,333

16,409

29,708

32,700

Professional fees

37,744

50,132

66,662

83,563

Technology and software expenses

79,752

72,354

159,214

140,913

Processing and transactional services

39,096

36,801

73,290

70,710

Communications

4,357

4,175

8,914

8,263

Business promotion

25,449

25,083

46,438

43,954

Deposit insurance

10,581

6,803

34,468

15,668

Other real estate owned (OREO) income

(5,750)

(3,314)

(11,071)

(5,008)

27,502

22,852

55,774

47,213

1,529

1,590

Total operating expenses

469,576

460,284

952,689

900,971

Income before income tax

218,248

194,663

377,099

399,956

40,459

43,503

96,027

89,817

Net Income

$

177,789

$

151,160

$

281,072

$

310,139

Net Income Applicable to Common Stock

$

177,436

$

150,807

$

280,366

$

309,433

Net Income per Common Share – Basic

$

2.47

$

2.10

$

3.90

$

4.32

Net Income per Common Share – Diluted

$

2.46

$

2.10

$

3.90

$

4.32

The accompanying notes are an integral part of

these Consolidated Financial Statements.

OF COMPREHENSIVE INCOME (LOSS)

Quarters ended,

Six months ended,

$

177,789

$

151,160

$

281,072

$

310,139

Other comprehensive income (loss) before

tax:

Foreign currency translation adjustment

6,001

(3,855)

Amortization of net losses of pension and

3,618

4,813

7,236

9,626

Unrealized holding gains (losses) on debt securities

arising during the period

22,422

(77,851)

(50,608)

135,467

Amortization of unrealized losses of debt

securities transfer from available-for-

44,421

42,903

88,430

84,943

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

70,626

(24,134)

41,203

230,721

(15,722)

(2,476)

(23,954)

(34,228)

Total other comprehensive income (loss), net of tax

54,904

17,249

196,493

Comprehensive income, net of tax

$

232,693

$

124,550

$

298,321

$

506,632

Tax effect allocated to each component of other comprehensive

income (loss):

Six months ended,

Adjustment of pension and postretirement

benefit plans

$

$

$

$

Amortization of net losses of pension and

(1,357)

(1,805)

(2,714)

(3,610)

Unrealized holding losses on debt securities

arising during the period

(5,481)

7,910

(3,555)

(13,656)

Amortization of unrealized losses of debt

securities transfer from available-for-

(8,884)

(8,581)

(17,685)

(16,988)

Unrealized net (losses) gains on cash flow

hedges

Reclassification adjustment for net (gains)

losses included in net income

$

(15,722)

$

(2,476)

$

(23,954)

$

(34,228)

The accompanying notes are an integral

part of the Consolidated Financial Statements.

OF CHANGES IN STOCKHOLDERS’ EQUITY

other

Common

Preferred

Retained

comprehensive

stock

stock

Surplus

stock

(loss) income

Total

Balance at March 31, 2023

$

1,047

$

22,143

$

4,792,619

$

3,982,140

$

(2,025,399)

$

(2,301,825)

$

4,470,725

151,160

151,160

1,550

1,550

[1]

(39,663)

(39,663)

(353)

(353)

(1,271)

(1,271)

1,412

8,059

9,471

Other comprehensive loss, net of tax

$

1,047

$

22,143

$

4,795,581

$

4,093,284

$

(2,018,611)

$

$

4,565,009

Balance at March 31, 2024

$

1,048

$

22,143

$

4,847,466

$

4,253,030

$

(2,013,187)

$

(1,933,186)

$

5,177,314

177,789

177,789

1,768

1,768

[1]

(44,944)

(44,944)

(353)

(353)

(3,200)

(3,200)

3,513

5,887

9,400

54,904

54,904

$

1,048

$

22,143

$

$

$

$

$

[1]

Dividends declared per common share during the quarter

ended June 30, 2024 - $

0.62

0.55

).

OF CHANGES IN STOCKHOLDERS’ EQUITY

other

Common

Preferred

Retained

comprehensive

stock

stock

Surplus

stock

(loss) income

Total

Balance at December 31, 2022

$

1,047

$

22,143

$

4,790,993

$

3,834,348

$

(2,030,178)

$

(2,524,928)

$

4,093,425

Cumulative effect of accounting change

28,752

28,752

310,139

310,139

3,117

3,117

[1]

(79,249)

(79,249)

(706)

(706)

(4,241)

(4,241)

1,471

15,808

17,279

196,493

196,493

$

1,047

$

22,143

$

4,795,581

$

4,093,284

$

(2,018,611)

$

$

4,565,009

Balance at December 31, 2023

$

1,048

$

22,143

$

4,843,399

$

4,194,851

$

(2,018,957)

$

(1,895,531)

$

281,072

281,072

3,567

3,567

[1]

(89,695)

(89,695)

(706)

(706)

(6,776)

(6,776)

5,781

15,233

21,014

17,249

17,249

$

1,048

$

22,143

$

$

$

$

$

[1]

Dividends declared per common share during the six months

ended June 30, 2024 - $

1.24

1.10

).

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

44,623

54,908

Balance at end of period

104,811,971

104,712,430

Treasury stock

(32,446,045)

(32,608,461)

Common Stock – Outstanding

72,103,969

The accompanying notes are an integral part of these Consolidated

OF CASH FLOWS

Cash flows from operating activities:

$

281,072

$

310,139

Adjustments to reconcile net income to net cash provided

by operating activities:

119,392

84,829

1,529

1,590

Depreciation and amortization of premises and equipment

31,249

27,957

Net accretion of discounts and amortization of premiums and

deferred fees

(127,770)

1,568

Interest capitalized on loans subject to the temporary payment

moratorium or loss mitigation alternatives

(4,047)

(5,275)

Share-based compensation

16,391

13,331

Fair value adjustments on mortgage servicing rights

5,384

8,342

Adjustments to indemnity reserves on loans sold

(156)

Earnings from investments under the equity method, net

of dividends or distributions

(2,871)

(6,540)

Deferred income tax expense (benefit)

19,702

(1,007)

Gain on:

Disposition of premises and equipment and other productive

assets

(6,295)

(5,643)

Sale of loans, including valuation adjustments on loans

held-for-sale and mortgage banking activities

(76)

(202)

Sale of foreclosed assets, including write-downs

(10,575)

(11,674)

Acquisitions of loans held-for-sale

(1,767)

(6,153)

Proceeds from sale of loans held-for-sale

19,358

24,808

Net originations on loans held-for-sale

(22,580)

(45,005)

Net decrease (increase) in:

Trading debt securities

6,735

17,484

(4,445)

(7,962)

Accrued income receivable

(17,340)

(8,463)

17,306

Net increase (decrease) in:

Interest payable

3,145

16,815

Pension and other postretirement benefits obligation

3,732

7,983

(59,481)

(91,321)

Total adjustments

(39,068)

41,213

Net cash provided by operating activities

242,004

351,352

Cash flows from investing activities:

Net decrease (increase) in money market investments

147,650

(2,979,482)

Purchases of investment securities:

Available-for-sale

(17,231,900)

(7,257,079)

Held-to-maturity

(6,037)

Equity

(1,667)

(15,999)

Proceeds from calls, paydowns, maturities and redemptions

of investment securities:

Available-for-sale

15,375,714

8,067,613

Held-to-maturity

304,653

204,587

Proceeds from sale of investment securities:

Equity

4,046

27,442

Net disbursements on loans

(287,684)

(776,383)

Proceeds from sale of loans

17,640

40,759

Acquisition of loan portfolios

(384,479)

(322,512)

Return of capital from equity method investments

Acquisition of premises and equipment and other productive

assets

(95,412)

(85,341)

Proceeds from sale of:

Premises and equipment and other productive assets

4,409

3,200

Foreclosed assets

58,979

57,226

Net cash used in investing activities

(2,087,772)

(3,041,757)

Cash flows from financing activities:

Net increase (decrease) in:

1,912,286

2,754,305

14,300

(25,405)

Other short-term borrowings

(365,000)

Payments of notes payable

(46,000)

(21,000)

Principal payments of finance leases

(1,774)

(2,645)

Proceeds from issuance of notes payable

437,631

Proceeds from issuance of common stock

3,567

3,117

Dividends paid

(90,151)

(79,816)

Net payments for repurchase of common stock

(452)

(364)

Payments related to tax withholding for share-based compensation

(6,324)

(3,877)

Net cash provided by financing activities

1,785,452

2,696,946

Net (decrease) increase in cash and due from banks, and

restricted cash

(60,316)

6,541

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

$

367,259

$

482,700

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 the

U.S. and

Islands. In

Puerto Rico,

provides retail,

mortgage,

and

banking

through

its

banking

Banco

Popular

de

Puerto

Rico

(“BPPR”),

as

well

as

banking,

broker-dealer,

auto

and

leasing

and

and

through

specialized

subsidiaries. In

mainland, the

Corporation provides

retail, mortgage,

commercial banking

services, as

well as

leasing

and

through

its

New

York-chartered

banking

Popular

Bank

(“PB”

or

“Popular

U.S.”),

which

has

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

Note 2 – Basis of Presentation

Basis of Presentation

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

for the

periods reported

and include

all necessary

adjustments, all

of a

normal recurring

nature, for

a fair

statement of

such results.

The

consolidated statement of financial

condition presented as of

December 31, 2023 was

derived from audited Consolidated Financial

Statements of the Corporation for the year ended

Certain

and

notes

to

the

which

would

normally

be

in

prepared in

accordance

with Accounting

Principles

Generally Accepted

in

the

United

States

of

America

(US

GAAP), have

been

condensed or omitted from the unaudited financial statements pursuant

to the rules and regulations of the

Securities and Exchange

Commission.

Accordingly,

these

should

be

read

in

conjunction

with

the

audited

Statements of

for the

year ended

2023,

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 six months

ended June 30, 2024, included $

22.9

million of expenses, of which $

16.5

million was reflected in

expense and $

6.4

million was

reflected in

other operating expenses,

related to an

out-of-period adjustment associated

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

adjustment corrected

errors for

expense that

should have

been recognized

of $

5.5

$

5.4

the years

2023 and

2022, respectively,

and an

aggregate of

$

5.6

million, in the years prior to 2022. The $

6.4

million recognized as other operating expense corresponded to interest due up to March

31, 2024 on

the related late

payment of the

withholding tax, of which

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

The

evaluated

the

impact

of

the

out-of-period

and

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

Standards

("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

amortization

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

amortization

period for

and

treatment

of

leasehold

improvements

associated with common control

leases

acquired on or after the effective date.

FASB ASU 2022-03, Fair

Value Measurement

(Topic 820) - Fair Value

Measurement of Equity

Securities Subject to

Contractual Sale

Restriction

The FASB issued ASU 2022-03 in June

2022, which clarifies that a contractual

restriction that prohibits the sale of an equity

security is not considered part of the unit of

account of the equity security, therefore, is

not considered in measuring its fair value.

The ASU also provides enhanced

disclosures for equity securities subject to a

contractual sale restriction.

The

was

not

by

the

of

this

pronouncement

since

it

does

not

hold

equity securities measured at

with sale restrictions.

Accounting Standards Updates Not Yet Adopted

FASB ASU 2024-02,

Improvements—

Amendments to Remove

References to the

Concepts Statements

The

FASB

issued

ASU

2024-02

in

March

2024, which

removes various

references to

concept

from

the

FASB

Standards

Codification.

The

ASU

intends

to

simplify

the

and

distinguish

between

nonauthoritative

and authoritative guidance.

any

impact

that

the

of

this

will

have

on

its

and

and

FASB ASU 2024-01,

Compensation - Stock

Compensation (Topic 718)

• Scope Application of

Profits Interest and Similar

Awards

The FASB issued ASU 2024-01 in March

2024, which amends ASC Topic 718 by

including an illustrative example to

demonstrate how an entity would apply the

scope guidance in paragraph 718-10-15-3

to determine whether profits interest awards

should be accounted for in accordance with

ASC

Topic

The

ASU

is

intended

to

reduce complexity and diversity in practice.

any

impact

that

the

of

this

will

have

on

its

and

and

FASB ASU 2023-09,

Income Tax (Topic

Improvements to Income

Tax Disclosures

The

FASB

issued

ASU

2023-09

in

December 2023,

which amends

ASC Topic

by

enhancing

regarding

rate

reconciliation

and

the

disclosure of

income taxes paid, income (or

loss)

from

before

income

tax

expense

and

income

tax

expense

disaggregated

by

national,

state

and foreign level. Disclosures that no longer

were considered

cost

beneficial or

relevant

were removed from ASC Topic 740.

any

impact

that

the

of

this

will

have

on

its

and

and

FASB ASU 2023-08,

Intangibles - Goodwill and

Other - Crypto Assets

(Subtopic 350-60) -

Accounting for and

Disclosure of Crypto

Assets

The

FASB

issued

ASU

2023-08

in

2023,

which

amends

ASC

Subtopic

350-60

by

that

crypto

assets

are

measured

at

fair

value

in

the

statement

of

each

reporting

period

with

changes

from

remeasurement

being

in

net

income.

The

ASU

also

enhanced

for

both

annual

and

interim

reporting

periods

to

provide

investors

with

relevant information

to

analyze and

assess

the

and

risk

of

individual crypto asset holdings.

The Corporation does not expect to be

impacted by the adoption of this ASU

since it does not hold crypto-assets.

FASB ASU 2023-07,

Segment Reporting (Topic

280. • Improvements to

Reportable Segment

Disclosures

The

FASB

issued

ASU

2023-07

in

November 2023,

which amends

ASC Topic

by

about significant segment expenses.

For fiscal years

beginning on

For interim periods

within fiscal years

beginning after

any

impact

that

the

of

this

will

have

on

its

and

and

Accounting Standards Updates Not Yet Adopted

FASB ASU 2023-06,

Disclosure Improvements -

Codification Amendments

in Response to the SEC’s

Disclosure Update and

Simplification Initiative

The FASB

issued ASU

2023-06 in

October

which

modifies

the

disclosure

or

of

various

subtopics

in

the

with

the

purpose

of

aligning

U.S.

GAAP

with

those

of

the

SEC

under

Regulation S-X and S-K.

The date on which

the SEC removes

related disclosure

requirements from

Regulation S-X or

Regulation S-K. If by

June 30, 2027, the

SEC has not

removed the

requirements from

Regulation S-X or

Regulation S-K, the

pending content of

the related

amendment will be

removed from the

Codification and will

not become

effective for any

entity.

expect to

be

by

the

of

this

ASU

since

it

is

subject

to

SEC's

current

disclosure

and

requirements under Regulation S-X and

S-K.

FASB ASU 2023-05,

Business Combinations -

Joint Venture Formations

(Subtopic 805-60) -

Recognition and initial

measurement

The

FASB

issued

ASU

2023-05

in

August

2023, which

amends ASC

Subtopic 805-60

to include specific

guidance about how

joint

ventures

should

recognize

and

initially

measure

assets

contributed

and

assumed.

The

amendments

require

that

a

joint venture, upon formation, recognize and

initially

measure

its

assets

and

liabilities at

fair value.

Upon

of

this

ASU,

the

Corporation will

consider this

for

the

initial

measure

of

assets

and

of

newly

created

joint

ventures.

Note 4 - Restrictions on cash and due from

banks and certain securities

BPPR is

required by

regulatory agencies

to maintain

average reserve

balances with

Reserve Bank

of New

York

(the

“Fed”) or

other banks.

Average reserve

balances in

BPPR amounted

to $

2.7

2024 (December

• $

2.7

Cash

and

due

from

banks,

as

well

as

other

highly

liquid

are

used

to

cover

these

average

reserve

balances.

At June

held $

restricted assets

in the

form of

funds deposited

in money

market accounts,

debt

for

sale

and

equity

31,

$

The

assets

held

in

debt

securities available for sale and equity securities consist primarily of assets

held for the Corporation’s non-qualified retirement plans

and fund deposits guaranteeing possible liens or encumbrances

over the title of insured properties.

Note 5 – Debt securities available-for-sale

The following tables present

the amortized cost, gross

unrealized gains and losses,

approximate fair value, weighted average

yield

and contractual maturities of debt securities available-for-sale

at June 30, 2024 and December 31, 2023.

Gross

Gross

Fair

average

cost

losses

gains

losses

value

yield

$

10,828,370

$

$

$

61,019

$

10,767,385

4.00

%

2,275,875

123,554

2,152,372

1.33

99,526

11,897

87,629

1.72

13,203,771

196,470

13,007,386

3.52

14,014

13,345

1.54

17,931

1,214

16,717

2.30

111,701

10,001

101,791

2.76

mortgage obligations - federal agencies

143,646

11,884

131,853

2.59

Mortgage-backed securities - federal agencies

1,323

1,302

1.75

73,250

3,403

69,852

2.40

828,760

57,755

771,145

2.35

5,712,046

1,153,028

4,559,241

1.64

securities - federal agencies

6,615,379

1,214,207

5,401,540

1.74

Other

1,000

5.00

1,500

1,500

8.50

Total other

2,500

2,000

7.10

[1]

$

19,965,296

$

$

$

1,422,561

$

2.92

%

[1]

13.8

billion pledged to secure government and trust deposits, assets

sold under agreements to repurchase, credit facilities

and loan servicing

agreements that the secured parties are not permitted

to sell or repledge the collateral, of which $

12.8

billion serve as collateral for public funds.

The

Corporation had unpledged Available for Sale securities

with a fair value of

$

4.7

billion that could be used to increase its borrowing

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.

2024, the Corporation did not

intend to sell or

believed it was more

likely than not that

it would be required

to sell debt

securities classified

as available-for-sale.

no

available-for-sale sold

30, 2024 and 2023.

The

tables

present

the

fair

value

and

gross

losses

of

debt

available-for-sale,

aggregated by investment category and length of

time that individual securities have been in a continuous

unrealized loss position at

June 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

$

6,003,623

$

4,122

$

5,111,232

$

192,348

$

11,114,855

$

196,470

6,982

116,418

11,858

123,400

11,884

43,617

5,337,896

1,213,545

5,381,513

1,214,207

available-for-sale in an unrealized loss position

$

6,054,222

$

4,810

$

10,565,546

$

1,417,751

$

16,619,768

$

1,422,561

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

the portfolio of

available-for-sale debt securities

reflects gross unrealized

losses of $

1.4

billion, driven mainly

by

which

have

been

by

a

decline

in

fair

value

as

a

result

of

the

rising

rate

environment.

The portfolio of

available-for-sale debt securities is comprised

mainly of U.S Treasuries

and obligations from the

U.S.

Government, its

agencies or

government sponsored

entities, including

Federal National

Mortgage Association

(“FNMA”), Federal

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

Form 10-K,

these securities

carry an

explicit or

implicit guarantee

U.S. Government,

are highly

rated by

major

rating agencies, and have a long history of

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

Note 6 –Debt securities held-to-maturity

the amortized

cost, allowance

losses, gross

unrealized gains

and losses,

approximate fair

value,

weighted average

yield

and contractual

maturities of

held-to-maturity at

and

Value

Gross

Gross

Book

[1]

for Credit

Net of

Fair

average

cost

Value

Losses

gains

losses

value

yield

$

598,695

$

598,695

$

$

598,695

$

$

7,917

$

590,778

2.66

%

7,878,042

7,307,981

7,307,981

128,694

7,179,287

1.34

8,476,737

136,611

1.43

Obligations of Puerto Rico, States and

3,055

3,055

3,049

3,051

6.23

18,595

18,595

18,483

18,387

3.60

5.80

38,866

38,866

6,105

32,761

2,781

1,967

33,575

1.42

Total obligations of

Puerto Rico, States and

61,361

61,361

6,251

55,110

2,855

2,115

55,850

2.38

1,527

1,527

1,527

1,341

2.87

mortgage obligations -

federal agencies

1,527

1,527

1,527

1,341

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]

$

8,545,585

$

7,975,524

$

6,251

$

$

2,855

$

138,912

$

1.44

%

[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]

7.9

billion pledged to secure public and trust deposits that

the secured parties are not permitted to sell or repledge

the collateral.

The

Corporation had unpledged held-to-maturities securities with

a fair value of $

69.7

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

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

discussed in

Note

of

2023 Form

10-K,

carry

an

explicit

guarantee from

the

are

highly rated by major rating

agencies and have a long

history of no credit losses. Accordingly,

the Corporation applies a zero-credit

loss assumption and no allowance for credit losses

(“ACL”) for these securities has been established.

At June

2023, the “Obligations

Rico, States and

political subdivisions” classified

as held-to-

maturity,

issued by

of

Puerto

Rico

that

are

generally

not

rated

by

a

credit

rating

agency.

This

includes $

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

are payable primarily

from

certain

property

taxes

imposed

by

the

issuing

31,

$

In

the

case

of

general

obligations, they

also benefit

from a

pledge of

the full

faith, credit

and unlimited

taxing power

of the

issuing municipality,

which is

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

debt service on such general obligation bonds. The

Corporation performs periodic credit quality

reviews of these securities and internally

assigns standardized credit risk ratings based

on its evaluation. The

Corporation considers these ratings in

its estimate to develop the

allowance for credit losses

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

$

2,255

$

2,255

Pass

13,265

16,565

Total

$

15,520

$

18,820

At June 30, 2024, the portfolio of “Obligations of Puerto Rico, States

and political subdivisions” also includes $

million in securities

issued

by

the

Puerto

Rico

Housing Finance

(“HFA”),

a

instrumentality,

for

which the

underlying source

of

payment

is

second

loans

in

Puerto

Rico

properties

(not

the

government),

but

for

which

HFA,

a

guarantee in

of default

the satisfaction

of certain

other conditions

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

the

borrowers.

As

of

June

30,

2024,

the

average

refreshed

FICO

score

for

the

sample,

of

%

of

the

nominal

value

of

the

used

for

the

loss

was

of

(compared

to

%

and

,

respectively, at

December 31, 2023).

The loss estimates

for this portfolio

was based on

the methodology established

under CECL

for

similar

loan

obligations.

The

does

not

the

when

estimating

the

credit

losses

associated with this portfolio.

A

deterioration of

or

of

the fiscal

health of

the

Government of

and/or

its

instrumentalities

(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

Note 20

to the

for additional

Rico Government.

At

June

30,

and

31,

2023,

the

of

“Obligations

of

Puerto

Rico,

States

and

subdivisions”

also

$

million

in securities

issued

by the

HFA

for

which the

underlying source

of

payment

is U.S.

The

Corporation applies a

zero

-credit loss assumption for

these securities, and no

ACL has been

established for these securities

given

that U.S. Treasury

securities carry an

explicit guarantee from the

U.S. Government, are

highly rated by

major rating agencies,

and

have a long history of no credit losses. Refer

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

Delinquency status

At June 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 six months ended June 30,

2024 and June 30, 2023:

For the quarters ended June 30,

Obligations of Puerto Rico, States and political subdivisions

Allowance for credit losses:

$

5,731

$

6,792

(647)

Securities charged-off

$

6,251

$

6,145

For the six months ended June 30,

Obligations of Puerto Rico, States and political subdivisions

Allowance for credit losses:

$

5,780

$

6,911

(766)

Securities charged-off

$

6,251

$

6,145

The

for

credit

losses

for

the

Obligations

of

Puerto

Rico,

States

and

$

0.2

million

for

securities issued by municipalities of

Puerto Rico, and $

6.1

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.

During the quarter

and six months ended

June 30, 2024, the

Corporation recorded purchases (including repurchases)

of mortgage

loans

amounting

to

$

million

and

$

respectively

(June 30,

$

million

and

$

respectively). The

Corporation did

no

t purchase

consumer loans

period ended

2024 (during

and six

June 30, 2023 - $

million, respectively). During the quarter and six months ended June

30, 2024, the Corporation

recorded purchases

of $

$

respectively (June

• $

million

and $

respectively), in

commercial loans.

The

performed

whole-loan

sales

involving

$

million

and

$

million

of

loans

respectively (June

• $

$

million, respectively).

six

months

the

Corporation performed

sales of

commercial loans,

including loan

participations

amounting

to

$

The

Corporation did

no

t

perform

sales

of

loans

during

the

quarter

ended

June

30,

(during the

• $

$

million, respectively).

Also, during

the six

months

ended

June

30,

2024,

the

securitized

$

million

of

loans

into

GNMA

and

$

million

of

loans

into

FNMA

to

$

million

and

$

respectively, during the six months ended June 30, 2023.

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

June 30, 2024 and December 31, 2023.

BPPR

30-59

60-89

90 days

Total

days

days

or more

Current

loans

loans

$

$

$

$

$

304,235

$

304,911

$

$

1,713

7,484

9,197

2,970,430

2,979,627

7,484

1,770

25,285

27,287

1,389,825

1,417,112

25,285

5,387

2,097

26,560

34,044

4,968,740

5,002,784

22,958

3,602

5,479

5,479

178,460

183,939

287,468

105,266

373,306

766,040

5,824,480

6,590,520

163,790

209,516

Leasing

20,631

5,071

7,059

32,761

1,795,287

7,059

15,032

9,436

23,931

48,399

1,114,140

23,931

2,216

2,216

21,535

12,755

19,650

53,940

1,690,933

1,744,873

19,650

Auto

103,873

24,943

39,333

168,149

3,605,143

39,333

Other

1,207

2,441

151,092

153,533

Total

$

464,097

$

160,058

$

524,258

$

1,148,413

$

23,994,981

$

25,143,394

$

286,887

$

237,371

30-59

60-89

90 days

Total

days

days

or more

Current

loans

loans

$

2,962

$

$

8,700

$

11,662

$

2,067,907

$

2,079,569

$

8,700

$

2,494

2,783

1,025

6,302

2,018,543

2,024,845

1,025

17,095

22,256

39,351

1,687,354

1,726,705

22,256

5,181

5,992

11,477

2,181,096

2,192,573

5,782

921,820

921,820

1,309

23,479

11,554

36,342

1,256,864

1,293,206

11,554

Home equity lines of

credit

3,780

5,132

61,644

66,776

3,780

1,770

1,689

1,851

5,310

129,436

134,746

1,851

Other

1,204

1,204

6,764

7,968

Total

$

15,810

$

45,812

$

55,158

$

116,780

$

10,331,446

$

10,448,226

$

54,948

$

30-59

60-89

90 days

Total

days

days

or more

Current

[2] [3]

loans

loans

$

3,195

$

$

9,143

$

12,338

$

2,372,142

$

$

9,143

$

4,207

2,783

8,509

15,499

4,988,973

8,509

1,770

17,327

47,541

66,638

3,077,179

47,541

10,568

2,401

32,552

45,521

7,149,836

28,740

3,812

5,479

5,479

1,100,280

[1]

288,777

128,745

384,860

802,382

7,081,344

175,344

209,516

Leasing

20,631

5,071

7,059

32,761

1,795,287

7,059

15,032

9,436

23,931

48,399

1,114,158

23,931

3,780

5,132

63,860

68,992

3,780

23,305

14,444

21,501

59,250

1,820,369

21,501

Auto

103,873

24,943

39,333

168,149

3,605,143

39,333

Other

2,180

1,207

3,645

157,856

161,501

Total

$

479,907

$

205,870

$

579,416

$

1,265,193

$

34,326,427

$

$

341,835

$

237,581

[1]

It is the Corporation’s policy to report delinquent residential

mortgage loans insured by Federal Housing Administration

(“FHA”) or guaranteed by

the U.S. Department of Veterans Affairs

(“VA”) as accruing loans past

due 90 days or more as opposed to non-performing

since the principal

repayment is insured.

These balances include $

million of residential mortgage loans insured by FHA

or guaranteed by the VA

that are no

longer accruing interest as of June 30, 2024. Furthermore,

as of June 30, 2024, the Corporation had approximately

$

million in reverse

mortgage loans which are guaranteed by FHA, but which

are currently not accruing interest. Due to the guaranteed

nature of the loans, it is the

Corporation’s policy to exclude these balances from

non-performing assets.

[2]

Loans held-in-portfolio are net of $

million in unearned income and exclude $

million in loans held-for-sale.

[3]

13.6

billion pledged to secure credit facilities and public funds

that the secured parties are not permitted to sell or repledge

the collateral,

7.2

billion were pledged at the Federal Home Loan Bank

("FHLB") as collateral for borrowings and $

6.4

billion at the Federal Reserve

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

30, 2024, the Corporation had an available borrowing

facility with the FHLB and the

discount window of Federal Reserve Bank of New York

of $

3.9

4.7

billion, respectively.

BPPR

30-59

60-89

90 days

Total

days

days

or more

Current

loans

loans

$

$

$

1,991

$

2,515

$

289,427

$

291,942

$

1,991

$

5,510

8,745

14,332

2,990,922

3,005,254

8,745

2,726

29,430

32,405

1,365,978

1,398,383

29,430

6,998

3,352

36,210

46,560

4,749,666

4,796,226

32,826

3,384

6,378

6,378

163,479

169,857

6,378

260,897

114,282

416,528

791,707

5,600,117

6,391,824

175,106

241,422

Leasing

20,140

6,719

8,632

35,491

1,696,318

8,632

13,243

9,912

23,281

46,436

1,089,292

23,281

2,392

2,648

19,065

14,611

19,031

52,707

1,723,603

1,776,310

19,031

Auto

100,061

27,443

45,615

173,119

3,487,661

45,615

Other

1,641

1,213

3,058

147,104

150,162

Total

$

431,035

$

176,849

$

597,080

$

1,204,964

$

23,305,959

$

24,510,923

$

328,718

$

268,362

30-59

60-89

90 days

Total

days

days

or more

Current

loans

loans

$

9,141

$

2,001

$

$

11,142

$

2,112,536

$

2,123,678

$

$

1,036

1,117

2,719

2,079,448

2,082,167

1,117

30,560

6,274

36,834

1,645,418

1,682,252

6,274

7,815

3,881

12,393

2,317,502

2,329,895

3,772

789,423

789,423

48,818

7,821

11,191

67,830

1,236,263

1,304,093

11,191

1,472

3,733

5,209

58,096

63,305

3,733

2,222

1,948

2,805

6,975

161,962

168,937

2,805

Other

10,274

10,279

Total

$

100,598

$

13,507

$

29,002

$

143,107

$

10,410,941

$

10,554,048

$

28,893

$

30-59

60-89

90 days

Total

days

days

or more

Current

[2]

[3]

loans

loans

$

9,665

$

2,001

$

1,991

$

13,657

$

2,401,963

$

$

1,991

$

6,076

1,113

9,862

17,051

5,070,370

9,862

33,286

35,704

69,239

3,011,396

35,704

14,813

4,049

40,091

58,953

7,067,168

36,598

3,493

6,378

6,378

952,902

959,280

6,378

[1]

309,715

122,103

427,719

859,537

6,836,380

186,297

241,422

Leasing

20,140

6,719

8,632

35,491

1,696,318

8,632

13,243

9,912

23,281

46,436

1,089,311

23,281

1,702

3,759

5,465

60,488

65,953

3,733

21,287

16,559

21,836

59,682

1,885,565

21,836

Auto

100,061

27,443

45,615

173,119

3,487,661

45,615

Other

1,645

1,214

3,063

157,378

160,441

Total

$

531,633

$

190,356

$

626,082

$

1,348,071

$

33,716,900

$

$

357,611

$

268,471

[1]

It is the Corporation’s policy to report delinquent residential

mortgage loans insured by FHA or guaranteed

by the VA as accruing loans

90 days or more as opposed to non-performing since

the principal repayment is insured.

These balances include $

million of residential

mortgage loans insured by FHA or guaranteed by the VA

that are no longer accruing interest as of December

31, 2023. Furthermore, as of

December 31, 2023, the Corporation had approximately

$

million in reverse mortgage loans which are guaranteed

by FHA, but which are

currently not accruing interest. Due to the guaranteed nature

of the loans, it is the Corporation’s policy to exclude

these balances from non-

performing assets.

[2]

Loans held-in-portfolio are net of $

million in unearned income and exclude $

million in loans held-for-sale.

[3]

14.2

billion pledged to secure credit facilities and public funds

that the secured parties are not permitted to sell or repledge

the collateral,

7.0

billion were pledged at the Federal Home Loan Bank

(FHLB) as collateral for borrowings and $

7.2

billion at the Federal Reserve

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

31, 2023, the Corporation had an available borrowing

facility with the FHLB and the

discount window of Federal Reserve Bank of New York

of $

3.5

4.4

billion, respectively.

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

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

FHA or guaranteed by the VA when 15 months

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

insured.

2024, mortgage loans held-in-portfolio include

$

2.4

billion (December 31, 2023 -

$

2.2

billion) of loans that

carry certain

guarantees from the FHA or the VA of which $

209.7

million (December 31, 2023 - $

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

2024 (December 31, 2023 -

$

million). The Corporation has

million in reverse mortgage

loans in

Puerto Rico which are guaranteed by FHA, but which are currently not accruing interest at June 30, 2024 (December 31, 2023 - $

Loans with a delinquency status of

90 days past due as

of June 30, 2024 include

$

million in loans previously pooled into GNMA

31,

$

Under

the

GNMA

program,

issuers

such

as

BPPR

have

the

option

but

not

the

obligation to repurchase loans

that are 90

past due. For

accounting purposes, these loans

subject to the

option

are

be

reflected on

the

financial statements

of BPPR

with

an

offsetting

liability.

Loans

in

our

GNMA

portfolio benefit

from payment

forbearance programs

but continue

to reflect

the contractual

delinquency until

the borrower

repays

deferred payments or completes a payment deferral

modification or other borrower assistance alternative.

The following tables present the amortized cost basis

of non-accrual loans as of June 30, 2024 and

December 31, 2023 by class of

loans:

BPPR

with no

with

with no

with

with no

with

$

$

$

8,700

$

$

8,700

$

3,574

3,910

1,025

3,574

4,935

16,822

8,463

22,256

39,078

8,463

13,512

9,446

5,782

13,512

15,228

72,290

91,500

11,086

72,758

102,586

Leasing

6,469

6,469

HELOCs

3,780

3,780

3,715

15,935

1,851

3,715

17,786

Auto

1,898

37,435

1,898

37,435

Other

Total

$

112,401

$

174,486

$

31,424

$

23,524

$

143,825

$

198,010

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 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 June

30, 2024 include

$

collateral dependent loans

2023 -

$

Corporation recognized $

on non-accrual

loans during

the six

June 30, 2024 (June 30, 2023 - $

The following tables present the amortized cost basis

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

based on the

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

of loans and type of collateral as of June 30,

2024 and December 31, 2023:

Real Estate

Auto

Equipment

Other

Total

BPPR

$

1,309

$

$

$

$

1,309

213,560

213,560

22,581

22,581

3,332

16,949

20,281

71,670

71,670

Leasing

1,668

1,669

3,791

3,791

Auto

14,577

14,577

Other

$

316,243

$

16,245

$

$

16,987

$

349,476

$

8,700

$

$

$

$

8,700

22,256

$

22,256

3,072

3,125

1,065

1,065

$

32,021

$

$

$

3,072

$

35,146

$

10,009

$

$

$

$

10,009

213,560

213,560

44,837

44,837

3,332

20,021

23,406

72,735

72,735

Leasing

1,668

1,669

3,791

3,791

Auto

14,577

14,577

Other

Inc.

$

348,264

$

16,245

$

$

20,059

$

384,622

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 six months ended June 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 six months

ended June 30, 2024

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 six months

ended June 30, 2023

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

which

include

the

impact

of

loan

modifications,

with

macroeconomic

expectations to derive the lifetime expected loss.

At June

estimated the

ACL by

weighting the

outputs of

optimistic, baseline,

and pessimistic

scenarios.

Among the

three scenarios used

to estimate

the ACL, the

baseline is

assigned the highest

probability,

followed by the

pessimistic

scenario given the

uncertainties in the

economic outlook and

downside risk. The

weightings applied are

evaluation on a

quarterly basis as

part of the

ACL’s governance

process. The Corporation evaluates,

at least on

an annual basis, the

tied to the CECL accounting framework. These

include the reasonable and supportable period

as well as the reversion window.

the changes

in the

ACL of

and unfunded

commitments for

and six

months ended June 30, 2024 and 2023.

BPPR

Ending

Balance

Balances

$

3,567

$

(264)

$

$

$

$

3,303

53,666

(324)

53,386

43,537

(5,296)

1,134

39,375

102,844

14,440

(8,072)

2,051

111,263

203,614

8,556

(8,072)

3,229

207,327

3,114

3,638

76,564

(6,419)

(26)

3,775

73,900

Leasing

8,991

8,094

(3,841)

1,141

14,385

88,169

11,856

(16,419)

2,707

86,313

(94)

99,504

15,492

(23,293)

2,318

94,021

Auto

157,456

10,250

(16,609)

6,352

157,449

Other

6,808

(680)

6,489

352,039

37,830

(57,095)

11,581

344,355

$

644,322

$

48,585

$

$

(69,034)

$

19,726

$

643,605

$

4,942

$

$

$

$

$

5,540

1,441

2,095

$

6,383

$

1,252

$

$

$

$

7,635

[1] Allowance for credit losses of unfunded commitments

is presented as part of Other Liabilities in the Consolidated

Ending

Balance

Balance

$

9,176

$

(1,303)

$

$

$

7,877

11,958

(1,151)

10,849

20,270

(1,514)

18,815

17,574

(1,367)

(1,195)

15,219

58,978

(5,335)

(1,195)

52,760

8,025

1,126

9,251

9,874

(502)

(18)

9,389

1,770

(510)

(14)

1,643

16,573

(4,596)

13,427

Other

(2)

(18)

18,345

(4,628)

1,072

15,072

$

95,222

$

(4,428)

$

(5,841)

$

1,519

$

86,472

$

2,542

$

$

$

$

2,850

7,837

8,399

(5)

$

10,384

$

$

$

$

11,249

[1]

Ending

Balance

Balance

$

12,743

$

(1,567)

$

$

$

$

11,180

65,624

(1,475)

64,235

63,807

(6,810)

1,193

58,190

120,418

13,073

(9,267)

2,258

126,482

262,592

3,221

(9,267)

3,541

260,087

11,139

1,650

12,889

86,438

(6,921)

(44)

3,810

83,289

Leasing

8,991

8,094

(3,841)

1,141

14,385

88,169

11,856

(16,419)

2,707

86,313

1,872

(488)

(108)

1,726

116,077

16,287

(27,889)

2,973

107,448

Auto

157,456

10,250

(16,609)

6,352

157,449

Other

6,810

(698)

6,491

370,384

38,113

(61,723)

12,653

359,427

$

739,544

$

44,157

$

$

(74,875)

$

21,245

$

730,077

$

7,484

$

$

$

$

$

8,390

9,278

1,216

10,494

(5)

$

16,767

$

2,117

$

$

$

$

18,884

[1]

BPPR

Ending

Balance

Charge-off

Balance

$

3,614

$

(312)

$

$

$

$

3,303

53,754

(737)

53,386

40,637

(149)

(2,785)

1,672

39,375

107,577

14,816

(14,741)

3,611

111,263

205,582

13,618

(17,526)

5,653

207,327

5,294

(1,656)

3,638

72,440

(6,738)

(791)

8,966

73,900

Leasing

9,708

11,062

(8,691)

2,306

14,385

80,487

33,496

(32,815)

5,145

86,313

(291)

101,181

35,755

(47,642)

4,727

94,021

Auto

157,931

23,621

(36,776)

12,673

157,449

Other

7,132

(1,344)

6,489

346,834

93,307

(118,868)

23,082

344,355

$

639,858

$

109,593

$

$

(145,876)

$

40,007

$

643,605

$

5,062

$

$

$

$

$

5,540

1,618

2,095

$

6,680

$

$

$

$

$

7,635

[1]

Ending

Balance

Balance

$

10,126

$

(1,813)

$

(441)

$

$

7,877

11,699

(956)

10,849

16,227

2,505

18,815

14,779

1,836

(1,759)

15,219

52,831

1,572

(2,200)

52,760

7,392

1,759

9,251

10,774

(1,427)

(18)

9,389

1,875

(763)

(21)

1,643

16,609

5,786

(10,308)

1,340

13,427

Other

(49)

18,486

5,046

(10,378)

1,918

15,072

$

89,483

$

6,950

$

(12,596)

$

2,635

$

86,472

$

1,851

$

$

$

$

2,850

8,446

(47)

8,399

(29)

$

10,326

$

$

$

$

11,249

[1]

Ending

Balance

Balance

$

13,740

$

(2,125)

$

$

(441)

$

$

11,180

65,453

(1,693)

64,235

56,864

2,356

(2,785)

1,755

58,190

122,356

16,652

(16,500)

3,974

126,482

258,413

15,190

(19,726)

6,210

260,087

12,686

12,889

83,214

(8,165)

(809)

9,026

83,289

Leasing

9,708

11,062

(8,691)

2,306

14,385

80,487

33,496

(32,815)

5,145

86,313

1,978

(638)

(312)

1,726

117,790

41,541

(57,950)

6,067

107,448

Auto

157,931

23,621

(36,776)

12,673

157,449

Other

7,134

(1,393)

6,491

365,320

98,353

(129,246)

25,000

359,427

$

729,341

$

116,543

$

$

(158,472)

$

42,642

$

730,077

$

6,913

$

1,477

$

$

$

$

8,390

10,064

10,494

(29)

$

17,006

$

1,878

$

$

$

$

18,884

[1]

BPPR

Net Write

Ending

Balance

down

Balance

$

4,756

$

$

$

$

$

$

4,787

53,894

(98)

(609)

53,366

46,009

(4,437)

(76)

41,901

77,042

3,164

(1,061)

2,492

81,637

181,701

(1,341)

(1,746)

3,077

181,691

3,072

6,482

9,554

89,077

(9,572)

(297)

3,681

82,899

Leasing

20,990

(5,470)

(2,540)

13,927

67,953

10,558

(8,457)

1,955

(601)

71,408

(29)

(35)

88,408

20,279

(16,601)

3,960

96,046

Auto

130,829

5,909

(8,099)

5,608

134,247

Other

4,877

1,563

(354)

6,240

292,167

38,280

(33,546)

11,737

(601)

308,037

$

587,007

$

28,379

$

$

(38,129)

$

19,442

$

(601)

$

596,108

$

4,900

$

$

$

$

$

$

5,288

1,946

1,164

3,110

$

6,846

$

1,552

$

$

$

$

$

8,398

[1]

Ending

Balance

Balance

$

20,610

$

$

$

$

21,392

17,956

18,350

8,488

1,174

(177)

9,506

15,224

4,524

(2,081)

18,014

62,278

6,807

(2,258)

67,262

1,258

1,778

15,400

(2,315)

13,194

1,853

(52)

2,074

21,321

2,169

(4,287)

19,782

Other

(47)

23,177

2,270

(4,386)

21,858

$

102,113

$

7,282

$

(6,644)

$

1,341

$

104,092

$

1,229

$

$

$

$

1,348

1,278

1,797

(12)

$

2,569

$

$

$

$

3,195

[1]

Ending

Balance

down

Balance

$

25,366

$

$

$

$

$

$

26,179

71,850

(609)

71,716

54,497

(3,263)

(253)

51,407

92,266

7,688

(3,142)

2,839

99,651

243,979

5,466

(4,004)

3,512

248,953

4,330

7,002

11,332

104,477

(11,887)

(297)

3,790

96,093

Leasing

20,990

(5,470)

(2,540)

13,927

67,953

10,558

(8,457)

1,955

(601)

71,408

1,953

(87)

2,170

109,729

22,448

(20,888)

4,539

115,828

Auto

130,829

5,909

(8,099)

5,608

134,247

Other

4,880

1,609

(401)

6,242

315,344

40,550

(37,932)

12,534

(601)

329,895

$

689,120

$

35,661

$

$

(44,773)

$

20,783

$

(601)

$

700,200

$

6,129

$

$

$

$

$

$

6,636

3,224

1,683

4,907

(12)

$

9,415

$

2,178

$

$

$

$

$

11,593

[1]

BPPR

Impact of

Adopting

Ending

Balance

down

Balance

$

5,210

$

$

(424)

$

$

$

$

$

4,787

52,475

1,186

(609)

53,366

48,393

(1,161)

(7,167)

(79)

1,915

41,901

68,217

(552)

12,983

(2,668)

3,657

81,637

174,295

(1,713)

6,578

(3,356)

5,887

181,691

2,978

6,576

9,554

117,344

(33,556)

(8,305)

(1,143)

8,481

82,899

Leasing

20,618

(35)

(4,736)

(3,957)

2,037

13,927

58,670

26,128

(17,133)

4,344

(601)

71,408

(68)

(68)

96,369

(7,020)

31,383

(30,181)

5,495

96,046

Auto

129,735

(21)

14,228

(20,217)

10,522

134,247

Other

15,433

1,798

(11,361)

6,240

300,310

(7,041)

73,469

(78,960)

20,860

(601)

308,037

$

615,545

$

(42,345)

$

73,582

$

$

(87,416)

$

37,265

$

(601)

$

596,108

$

4,336

$

$

$

$

$

$

$

5,288

2,022

1,088

3,110

$

6,358

$

$

2,040

$

$

$

$

$

8,398

[1]

Impact of

Adopting

Ending

Balance

Balance

$

21,101

$

$

$

$

$

21,392

19,065

(2,633)

1,918

18,350

8,688

(177)

9,506

12,227

7,052

(2,580)

1,315

18,014

61,081

5,657

(2,757)

3,281

67,262

1,268

1,778

17,910

(2,098)

(2,741)

13,194

(1)

2,439

(657)

(195)

2,074

22,057

(1,140)

6,360

(8,457)

19,782

Other

(100)

24,498

(1,140)

5,799

(8,753)

1,454

21,858

$

104,757

$

(3,238)

$

9,225

$

(11,510)

$

4,858

$

104,092

$

1,175

$

$

$

$

$

1,348

1,184

1,797

(38)

$

2,447

$

$

$

$

$

3,195

[1]

Impact

for

of adopting

Ending

Balance

Charge-

offs

Recoverie

s

down

Balance

$

26,311

$

$

(136)

$

$

$

$

$

26,179

71,540

(1,447)

(609)

2,232

71,716

57,081

(1,161)

(6,217)

(256)

1,960

51,407

80,444

(552)

20,035

(5,248)

4,972

99,651

235,376

(1,713)

12,235

(6,113)

9,168

248,953

4,246

7,086

11,332

135,254

(35,654)

(11,046)

(1,143)

8,604

96,093

Leasing

20,618

(35)

(4,736)

(3,957)

2,037

13,927

58,670

26,129

(17,134)

4,344

(601)

71,408

2,542

(725)

(263)

2,170

118,426

(8,160)

37,743

(38,638)

6,457

115,828

Auto

129,735

(21)

14,228

(20,217)

10,522

134,247

Other

15,435

1,893

(11,461)

6,242

324,808

(8,181)

79,268

(87,713)

22,314

(601)

329,895

$

720,302

$

(45,583)

$

82,807

$

$

(98,926)

$

42,123

$

(601)

$

700,200

$

5,511

$

$

1,125

$

$

$

$

$

6,636

3,206

1,701

4,907

(38)

$

8,805

$

$

2,788

$

$

$

$

$

11,593

[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

during

the

quarters

ended

June

30,

and

June

30,

to

$

70.2

million

and

$

5.0

respectively, related to the commercial loan portfolios.

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

the reporting period disaggregated by

class of financing receivable and

type of concession granted

for the quarters and

ended June 30, 2024 and June 30, 2023. 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 June 30, 2024

BPPR

$

%

$

%

$

%

1,747

0.03

%

%

1,747

0.02

%

%

%

%

0.04

%

%

0.04

%

0.05

%

%

0.05

%

Other

0.02

%

%

0.02

%

Total

$

3,117

0.01

%

$

%

$

3,117

0.01

%

BPPR

$

3,084

0.10

%

$

%

$

3,084

0.06

%

1,134

0.08

%

6,071

0.35

%

7,205

0.23

%

23,059

0.46

%

%

23,059

0.32

%

16,933

0.26

%

0.05

%

17,575

0.22

%

0.01

%

0.10

%

0.02

%

Auto

%

%

%

Total

$

44,504

0.18

%

$

6,849

0.07

%

$

51,353

0.14

%

BPPR

$

57,071

1.92

%

$

%

$

57,071

1.14

%

6,230

0.44

%

%

6,230

0.20

%

52,124

1.04

%

%

52,124

0.72

%

%

%

%

Total

$

115,552

0.46

%

$

%

$

115,552

0.32

%

BPPR

$

0.01

%

$

%

$

0.01

%

5,246

0.08

%

%

5,277

0.07

%

2,190

0.13

%

%

2,190

0.12

%

Total

$

7,926

0.03

%

$

%

$

7,957

0.02

%

Combination -

Other-Than-Insignificant Payment Delays and Interest Rate

Reduction

$

%

$

%

$

%

0.02

%

%

0.02

%

Total

$

%

$

%

$

%

Difficulty for the six months ended June 30,

BPPR

$

%

$

%

$

%

2,122

0.04

%

%

2,122

0.03

%

%

%

%

0.05

%

%

0.05

%

1,085

0.06

%

%

1,085

0.06

%

Other

0.02

%

%

0.02

%

Total

$

3,856

0.02

%

$

%

$

3,856

0.01

%

BPPR

$

39,484

1.33

%

$

%

$

39,484

0.79

%

11,718

0.83

%

6,071

0.35

%

17,789

0.57

%

23,767

0.48

%

%

23,767

0.33

%

29,868

0.45

%

0.05

%

30,510

0.39

%

0.02

%

0.10

%

0.03

%

Auto

%

%

%

Total

$

105,329

0.42

%

$

6,854

0.07

%

$

112,183

0.32

%

BPPR

$

57,071

1.92

%

$

%

$

57,071

1.14

%

16,207

1.14

%

%

16,207

0.52

%

56,477

1.13

%

%

56,477

0.78

%

%

%

%

Total

$

129,882

0.52

%

$

%

$

129,882

0.36

%

BPPR

$

0.03

%

$

%

$

0.02

%

0.01

%

%

0.01

%

8,655

0.13

%

0.01

%

8,723

0.11

%

3,234

0.19

%

0.11

%

3,378

0.18

%

Total

$

13,365

0.05

%

$

%

$

13,577

0.04

%

Combination - Other-Than-Insignificant Payment Delays

$

%

$

%

$

%

0.05

%

%

0.05

%

Total

$

%

$

%

$

%

Difficulty for the quarter ended June 30, 2023

BPPR

$

0.02

%

$

%

$

0.02

%

0.01

%

%

0.01

%

Total

$

%

$

%

$

%

BPPR

$

24,978

0.86

%

$

%

$

24,978

0.53

%

1,434

0.10

%

15,715