Exhibit 99.1

Popular, Inc. Announces Second Quarter 2018 Financial Results

• Net income of $279.8 million and adjusted net income of $121.3 million for the second quarter of 2018, compared to a net income of $91.3 million for Q1 2018
• Net interest margin of 3.81% in Q2 2018, compared to 3.89% in Q1 2018
• Credit Quality (excluding loans previously classified as covered loans in prior period):
  • Non-performing loans held-in-portfolio (“NPLs”) increased by $36.4 million from Q1 2018; NPLs to loans ratio at 2.6% vs. 2.5% in Q1 2018;
  • Net charge-offs (“NCOs”) increased by $5.1 million; NCOs at 0.95% of average loans held-in-portfolio vs. 0.90% in Q1 2018;
  • Provision expense of $60.1 million vs. $69.3 million in Q1 2018;
  • Allowance for loan losses of $643.0 million vs. $607.0 million in Q1 2018, including the reclassification in Q2 of $33.6 million from the covered portfolio;
  • Allowance for loan losses to loans held-in-portfolio at 2.61% vs. 2.52% in Q1 2018; and
  • Allowance for loan losses to NPLs flat at 100.0%.
• Common Equity Tier 1 ratio of 17.46%, Common Equity per Share of $51.22 and Tangible Book Value per Share of $44.78 at June 30, 2018

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--July 23, 2018--Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported a net income of $279.8 million and an adjusted net income of $121.3 million for the second quarter ended June 30, 2018, compared to a net income of $91.3 million for the quarter ended March 31, 2018.

Ignacio Alvarez, President and Chief Executive Officer, said: “We are very pleased with the results for the second quarter. In addition to achieving a successful termination of our shared-loss agreements with the FDIC, we produced excellent financial results. These results were primarily driven by strong top line revenue growth in our Puerto Rico franchise, where the economy continues to recover from the impact of Hurricane Maria. We look forward to closing the acquisition of Wells Fargo’s auto loan business in Puerto Rico in the third quarter, which will contribute favorably to our earnings in the second half of the year.”

Significant Events

Early Termination of FDIC Shared-Loss Agreements

On May 22, 2018, Banco Popular de Puerto Rico, (“Banco Popular” or “BPPR”), Popular’s Puerto Rico banking subsidiary, entered into a Termination Agreement (the “Termination Agreement”) with the Federal Deposit Insurance Corporation (the “FDIC”) to terminate all Shared-Loss Agreements in connection with the acquisition of certain assets and assumption of certain liabilities of Westernbank Puerto Rico through an FDIC-assisted transaction in 2010 (the “FDIC Transaction”).

As a result of the Termination Agreement, assets that were covered by the Shared-Loss Agreements, including covered loans in the amount of approximately $514.6 million and covered real estate owned assets in the amount of approximately $15.3 million as of March 31, 2018, were reclassified as non-covered. Banco Popular now recognizes entirely all credit losses, expenses, gains, and recoveries related to the formerly covered assets with no offset due to or from the FDIC.

As of March 31, 2018, the Corporation had an FDIC Loss Share Asset in its financial statements of $44.5 million related to the covered assets. Additionally, as part of the Shared-Loss Agreements, Banco Popular also had agreed to make a true-up payment to the FDIC on the date that is 45 days following the last day of the final shared-loss month, or upon the final disposition of all covered assets under the Shared-Loss Agreements, in the event losses on the Shared-Loss Agreements failed to reach expected levels. The estimated fair value of such true-up payment obligation at March 31, 2018 was approximately $171.0 million.

Under the terms of the Termination Agreement, Banco Popular made a payment of approximately $23.7 million, (the “Termination Payment”) to the FDIC as consideration for the termination of the Shared-Loss Agreements. Popular recorded a pre-tax gain of approximately $94.6 million, calculated based on the difference between the Termination Payment and the net amount of the true-up payment obligation and the FDIC Loss Share Asset, less related professional and advisory fees associated with the Termination Agreement. Net of income tax expense of $45.0 million, the Termination Agreement contributed $49.6 million to net income.

In June 2012, the Puerto Rico Department of the Treasury and the Corporation entered into a Tax Closing Agreement (the “Tax Closing Agreement”) to clarify the tax treatment related to the loans acquired in the FDIC Transaction in accordance with the provisions of the Puerto Rico Tax Code. The Tax Closing Agreement provides that these loans are capital assets and any principal amount collected in excess of the amount paid for such loans will be taxed as a capital gain. The Tax Closing Agreement further provides that the Corporation’s tax liability upon the termination of the Shared-Loss Agreements be calculated based on the “deemed sale” of the underlying loans. As a result, the Corporation recognized an income tax benefit of $108.9 million during the second quarter of 2018. This income tax benefit is composed of an increase in the deferred tax asset balance of $158.7 million related to the increase in tax basis as a result of the “deemed sale”, net of the additional income tax expense of $49.8 million associated with the “deemed sale” incremental tax liability at the capital gains rate per the Tax Closing Agreement.

The combined effect of the Termination Agreement and the Tax Closing Agreement was a contribution of $158.5 million to net income for the quarter ended June 30, 2018.

Acquisition of Wells Fargo’s Auto Finance Business in Puerto Rico

On February 14, 2018, Popular announced that Banco Popular agreed to acquire certain assets and liabilities related to Wells Fargo’s auto finance business in Puerto Rico. On May 31, 2018 Popular filed a notice with the Board of Governors of the Federal Reserve System in order for Popular Auto, LLC, BPPR’s direct, wholly-owned subsidiary, to be permitted to consummate the transaction. On July 5, 2018, Popular announced the completion of such regulatory clearance process. Popular also announced that the parties have agreed to close the transaction on August 1, 2018, subject to the satisfaction or waiver of customary closing conditions.

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 the reported basis, management monitors the “Adjusted net income” of the Corporation and excludes the impact of certain transactions on the results of its operations. Management believes that “Adjusted net income” provides meaningful information to investors about the underlying performance of the Corporation’s ongoing operations. “Adjusted net income” is a non-GAAP financial measure.

No adjustments are reflected for the first quarter of 2018.

Net interest income

Net interest income for the quarter ended June 30, 2018 was $414.1 million, compared to $393.0 million for the previous quarter. Net interest margin was 3.81% for the quarter compared to 3.89% for the previous quarter. The presentation of net interest income has been adjusted for the second quarter of 2018 to present the income from the loans acquired from Westernbank (“WB Loans”) in their respective loan segments. Previously, the Corporation presented the income associated with the WB Loans aggregated into a single line in its analysis of average balances and yields (Tables D and E). The presentation for prior periods has been adjusted accordingly, for comparative purposes.

The increase of $21.1 million in net interest income was mainly the result of the following:

Positive variances:

• Higher income from money market, trading and investments by $15.1 million due to a higher average volume of funds available to invest as a result of higher balance of deposits at BPPR, from public, retail and commercial depositors, and a higher yield by 6 basis points as a result of the increase in interest rates by 25 basis points late in the first quarter and in mid-June 2018
• higher income from commercial loans by $4.7 million, or 6 basis points, due to higher yields, mostly in variable rate loans, as a result of increases in market interest rates, loan growth in Popular Bank (“Popular U.S.”) in a higher interest rate environment and one additional day in the quarter
• higher income from mortgage loans by $1.9 million, or 8 basis points, due mainly to higher yields related to fees collected on delayed loans payments that had been forgiven last quarter due to the moratorium granted as part of the Corporation’s hurricane relief efforts; and
• higher income from consumer loans by $5.0 million, or 42 basis points, due to the reserve for uncollectible interest and fees of $3.5 million recorded for credit cards during the first quarter and higher average balances and yields in the auto loan portfolio.

Negative variance:

• higher cost of interest-bearing deposits by $6.5 million, or 4 basis points, due mainly to higher average balances in NOW and money market and savings accounts, impacted primarily by public sector deposits and U.S. deposits to fund loan growth, partially offset by lower cost of time deposits.

BPPR’s net interest income amounted to $352.7 million for the quarter ended June 30, 2018, compared to $332.3 million in the previous quarter. The increase of $20.4 million in net interest income was mainly due to higher income from money market, trading and investment securities resulting from higher volumes and yields, as previously stated. Higher yields on the commercial and mortgage loan portfolios were mostly due to the increase in market rates and the end of the moratorium period during the first quarter. Higher income from the credit cards portfolio, due to the reserve for uncollectible interests and fees recorded in the first quarter, also contributed to the increase. These positive results were partially offset by higher interest expense on deposits. The net interest margin for the second quarter of 2018 was 4.07%, a decline of 7 basis points when compared to 4.14% for the previous quarter. The decrease in net interest margin was due to the composition of earning assets, which has shifted towards lower yielding assets as a result of higher balances of Fed Funds and investment securities. BPPR’s earning assets yielded 4.43%, compared to 4.49% in the previous quarter, while the cost of interest bearing deposits was 0.49%, or two basis points higher than the 0.47% reported in the previous quarter.

Net interest income for Popular U.S. was $75.5 million, for the quarter ended June 30, 2018, compared to $75.0 million during the previous quarter. The increase of $0.5 million in net interest income was mainly due to higher volume and yields on commercial and construction loans, partially offset by the related funding costs. Net interest margin for the quarter decreased 14 basis points to 3.47%, compared to 3.61% for the previous quarter. The decrease in net interest margin was mostly due to higher cost of deposits by $3.5 million, or 17 basis points as a result of an increase in deposits mostly raised through the U.S. online deposit platform. Popular U.S. earning assets yielded 4.44%, compared to 4.45% in the previous quarter, while the cost of interest bearing deposits was 1.17%, compared to 1.00% in the previous quarter.

Non-interest income

Non-interest income amounted to $234.8 million for the quarter ended June 30, 2018, compared to $113.5 million for the previous quarter. The increase of $121.3 million was mainly due to the gain of $102.8 million recorded during the second quarter as a result of the Termination Agreement with the FDIC. Excluding the favorable variance on the FDIC loss-share income (expense) of $110.8 million, non-interest income increased by $10.5 million primarily driven by:

• Higher other service fees by $2.3 million, mainly at BPPR, resulting from higher credit card interchange income due to higher transactional volumes and higher insurance fees due to policy renewals;
• favorable variance in adjustments to indemnity reserves of $2.4 million related to loans previously sold with credit recourse at BPPR; and
• higher other operating income by $6.1 million mainly due to modification fees received from FNMA for the successful completion of loss mitigation alternatives related to hurricane relief measures of $2.7 million and higher net earnings from the portfolio of investments under the equity method by $3.3 million.

These positive variances were partially offset by:

• Lower income on mortgage banking activities by $2.0 million mainly due to lower realized gains on closed derivatives positions by $3.3 million, partially offset by higher gains on securitization transactions by $1.4 million.

Refer to Table B for further details.

Operating expenses

Operating expenses amounted to $337.7 million for the second quarter of 2018, an increase of $15.7 million when compared to the first quarter of 2018. The most notable variances within operating expenses were the following:

• Higher professional fees by $10.9 million mainly due to professional and advisory expenses associated with the Termination Agreement with the FDIC of $8.1 million;
• higher business promotions by $4.8 million due to higher customer reward program expense and higher advertising costs at BPPR; and
• higher credit and debit card processing, volume, interchange and other expenses by $5.0 million as a result of a contingent incentive payment received by BPPR during the first quarter of 2018 for exceeding volume targets.

These increases were partially offset by:

• Lower personnel cost by $1.5 million due to lower commission, incentives and other bonuses; and
• lower other operating expenses by $4.1 million mainly due to lower provision for unused commitments by $2.6 million and lower sundry losses.

Full-time equivalent employees were 7,958 as of June 30, 2018, compared to 7,808 as of March 31, 2018. Increase in FTEs mainly related to summer internship programs, post-hurricane loan modification support and retail banking units.

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

Income taxes

For the quarter ended June 30, 2018, the Corporation recorded an income tax benefit of $28.6 million, compared to an income tax expense of $22.2 million for the previous quarter. As previously mentioned, the results for the second quarter include a pre-tax gain of $94.6 million resulting from the Termination Agreement with the FDIC and the related income tax expense of $45.0 million. The results also include an income tax benefit of $108.9 million related to the Tax Closing Agreement entered into in connection with the FDIC Transaction. Excluding the combined impact of these items, the income tax expense for the second quarter was $35.3 million, an effective tax rate of 23%, and an increase of approximately $13.0 million when compared to the first quarter of 2018, mainly due to higher taxable income.

The effective tax rate of the Corporation is impacted by the composition and source of its taxable income. For the year 2018, the Corporation expects its consolidated effective tax rate to be approximately 22%.

Credit Quality

The P.R. market continues to show signs of recovery after the devastation caused by Hurricanes Irma and María approximately 10 months ago. The second quarter results reflect some normalization, with some of the metrics near or better than pre-hurricane levels. Nonetheless, the Corporation continues to closely monitor its loan portfolios and related credit metrics, since uncertainties remain regarding Puerto Rico’s fiscal and economic outlook and the full effect of the hurricanes. The U.S. operation continued to reflect strong growth and favorable credit quality metrics, except for the U.S. taxi medallion portfolio acquired from the FDIC in the assisted sale of Doral Bank, which continues to reflect the pressure on medallion collateral values, particularly in the New York City metro area.

The following presents asset quality results for the second quarter of 2018. These results include the impact of the loans previously classified as “covered” as a result of the Shared-Loss Agreements entered into in connection with the FDIC Transaction and recently terminated pursuant to the Termination Agreement.

• Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $50.8 million quarter-over-quarter, mainly driven by higher inflows in the P.R. commercial and U.S. construction portfolios of $39.3 million and $17.9 million, respectively. The increase in the P.R. commercial portfolio was driven by two borrowers with an aggregate amount of $45.5 million. P.R. mortgage inflows remained stable after experiencing a significant increase in the previous quarter, prompted by the end of the payment moratorium. The increase in the U.S. construction portfolio was driven by a single borrower.
• Total non-performing loans held-in-portfolio increased by $36.4 million from the first quarter of 2018, driven by higher U.S. construction and P.R. mortgage NPLs of $17.9 million and $15.3 million, respectively. The U.S. construction NPL increase was driven by a single borrower. The P.R. mortgage NPLs increase was driven by loans which failed to make a payment after the end of the moratorium. The P.R. mortgage NPLs quarter-over-quarter increase includes $3.4 million related to loans previously classified as covered. At June 30, 2018, the ratio of NPLs to total loans held-in-portfolio was 2.6%, compared to 2.5% in the first quarter of 2018.
• Net charge-offs increased by $5.1 million from the first quarter of 2018, driven by higher P.R. commercial NCOs, mostly related to loans reserved in prior quarters. The Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was at 0.95%, compared to 0.90% in the first quarter of 2018. Refer to Table J for further information on net charge-offs and related ratios.
• The allowance for loan losses increased by $36.1 million from the first quarter of 2018 to $643.0 million. The P.R. segment ALLL increased by $33.6 million, principally driven by the reclassification of the allowance from loans previously classified as covered. The U.S. segment ALLL increased by $2.5 million when compared to the previous quarter, primarily related to the U.S. taxi medallions portfolio.
• The general and specific reserves totaled $523.7 million and $119.3 million, respectively, at quarter-end, compared with $490.0 million and $117.0 million, respectively, as of March 31, 2018. The ratio of the allowance for loan losses to loans held-in-portfolio was 2.61% in the second quarter of 2018, compared to 2.52% from the previous quarter. The ratio of the allowance for loan losses to NPLs held-in-portfolio stood at 100.0%.
• The provision for loan losses for the second quarter of 2018 decreased by $9.3 million. The P.R. provision decreased by $12.3 million, which includes a downward adjustment of $8.6 million to the environmental reserves associated with Hurricane Maria. The U.S. provision increased by $3.0 million from the previous quarter driven by the abovementioned incremental reserve for the U.S. taxi medallion portfolio. The provision to net charge-offs ratio was 104.2% in the second quarter of 2018, compared to 131.9% in the previous quarter.

Total assets increased by $1.8 billion from the first quarter of 2018, driven by:

• A net increase of $1.8 billion in cash and money market investments at BPPR, mainly due to an increase in government demand and commercial checking deposits; and

Total liabilities increased by $1.6 billion from the first quarter of 2018, principally driven by:

• An increase of $2.2 billion in deposits mainly due to an increase in public demand and commercial checking deposits at BPPR. Refer to Table G for additional information on deposits.

Partially offset by:

• A decrease of $0.4 billion in other liabilities at BPPR, mainly due to a decrease in the liability for GNMA loans sold with an option to repurchase by $0.2 billion and the elimination of the true-up payment obligation with the FDIC of $0.2 billion as a result of the Termination Agreement with the FDIC, as previously stated.

Stockholders’ equity increased by approximately $224.8 million from the first quarter of 2018, principally due to net income for the quarter of $279.8 million, partially offset by higher unrealized losses on debt securities available-for-sale by $33.2 million, declared dividends of $25.6 million on common stock and $0.9 million in dividends on preferred stock.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 17.46%, $51.22 and $44.78, respectively, at June 30, 2018, compared to 16.80%, $49.07 and $42.61 at March 31, 2018. Refer to Table A for capital ratios.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about Popular’s business, financial condition, results of operations, plans, objectives, and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include without limitation the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal proceedings and new accounting standards on the Corporation’s financial condition and results of operations, the impact of Hurricanes Irma and Maria on us, our ability to timely and effectively consummate our acquisition and assumption of certain assets and liabilities related to Wells Fargo’s auto finance business in Puerto Rico, as well as the ability to successfully transition and integrate the business, unexpected costs, including, without limitation, costs due to exposure to any unrecorded liabilities or issues not identified during due diligence investigation of the business or that are not subject to indemnification or reimbursement, and risks that the business may suffer as a result of the transaction, including due to adverse effects on relationships with customers, employees and service providers. All statements contained herein that are 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.

More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Annual Report on Form 10-K for the year ended December 31, 2017, the Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 and in our Form 10-Q for the quarter ended June 30, 2018 to be filed with the SEC. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.

Popular, Inc. is the leading financial institution in Puerto Rico, by both assets and deposits, and ranks among the top 50 U.S. bank holding companies by assets. Founded in 1893, Banco Popular de Puerto Rico, Popular’s principal subsidiary, provides retail, mortgage and commercial banking services in Puerto Rico and the U.S. Virgin Islands. Popular also offers auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the mainland United States, Popular provides retail, mortgage and commercial banking services through its New York-chartered banking subsidiary, Popular Bank, which has branches located in New York, New Jersey and Florida.

Conference Call

Popular will hold a conference call to discuss its financial results today Monday, July 23, 2018 at 11:00 a.m. Eastern Time. The call will be open to the public and broadcasted 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. There is no charge to access the call.

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 Thursday, August 23, 2018. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10121650.

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

CONTACT:
Popular, Inc.
Investor Relations:
Brett Scheiner, 212-417-6721
Investor Relations Officer
BScheiner@BPOP.com
or
Media Relations:
Teruca Rullán, 787-281-5170
Mobile: 917-679-3596
Senior Vice President, Corporate Communications