Fair value of financial instruments

The fair value of financial instruments is the amount at which an asset or obligation could be exchanged in a current transaction between

willing parties, other than in a forced or liquidation sale. For those financial instruments with no quoted market prices available, fair values

have been estimated using present value calculations or other valuation techniques, as well as management’s best judgment with respect to

current economic conditions, including discount rates, estimates of future cash flows, and prepayment assumptions. Many of these

estimates involve various assumptions and may vary significantly from amounts that could be realized in actual transactions.

The fair values reflected herein have been determined based on the prevailing rate environment at June 30, 2026 and December 31, 2025,

as applicable. In different interest rate environments, fair value estimates can differ significantly, especially for certain fixed rate financial

instruments. In addition, the fair values presented do not attempt to estimate the value of the Corporation’s fee generating businesses and

anticipated future business activities, that is, they do not represent the Corporation’s value as a going concern. There have been no

changes in the Corporation’s valuation methodologies and inputs used to estimate the fair values for each class of financial assets and

liabilities not measured at fair value.

The following tables present the carrying amount and estimated fair values of financial instruments with their corresponding level in the fair

value hierarchy. The aggregate fair value amounts of the financial instruments disclosed do not represent management’s estimate of the

underlying value of the Corporation.


	June 30, 2026
	Carrying				Measured
(In thousands)	amount	Level 1	Level 2	Level 3	at NAV	Fair value
Financial Assets:
Cash and due from banks	$365,013	$365,013	$-	$-	$-	$365,013
Money market investments	4,555,489	4,545,508	9,981	-	-	4,555,489
Trading account debt securities, excluding derivatives [1]	31,168	3,405	27,590	173	-	31,168
Debt securities available-for-sale [1]	24,792,835	10,040,663	14,751,294	878	-	24,792,835
Debt securities held-to-maturity:
U.S. Treasury securities	$6,154,728	$-	$6,133,383	$-	$-	$6,133,383
Obligations of Puerto Rico, States and political subdivisions	35,619	-	-	36,338	-	36,338
Collateralized mortgage obligation-federal agency	1,483	-	1,295	-	-	1,295
Securities in wholly owned statutory business trusts	5,960	-	5,960	-	-	5,960
Total debt securities held-to-maturity	$6,197,790	$-	$6,140,638	$36,338	$-	$6,176,976
Equity securities:
FHLB stock	$67,428	$-	$67,428	$-	$-	$67,428
FRB stock	104,788	-	104,788	-	-	104,788
Other investments	64,458	-	56,041	7,068	1,386	64,495
Total equity securities	$236,674	$-	$228,257	$7,068	$1,386	$236,711
Loans held-for-sale	$88,579	$-	$88,579	$-	$-	$88,579
Loans held-in-portfolio	38,965,030	-	-	38,117,234	-	38,117,234
Mortgage servicing rights	94,485	-	-	94,485	-	94,485
Derivatives	28,518	-	28,518	-	-	28,518


	June 30, 2026
	Carrying				Measured
(In thousands)	amount	Level 1	Level 2	Level 3	at NAV	Fair value
Financial Liabilities:
Deposits:
Demand deposits	$60,328,037		$60,328,037	$-	$-	$60,328,037
Time deposits	9,905,078		9,672,021	-	-	9,672,021
Total deposits	$70,233,115	$-	$70,000,058	$-	$-	$70,000,058
Assets sold under agreements to repurchase	$77,521	$-	$106,441	$-	$-	$106,441
Other short-term borrowings [2]	675,000	-	675,000	-	-	$675,000
Notes payable:
FHLB advances	$114,620	$-	$112,942	$-	$-	$112,942
Unsecured senior debt securities	397,277	-	414,004	-	-	414,004
Junior subordinated deferrable interest debentures (related to trust preferred securities)	198,413	-	198,452	-	-	198,452
Total notes payable	$710,310	$-	$725,398	$-	$-	$725,398
Derivatives	$26,953	$-	$26,953	$-	$-	$26,953

[1]Refer to Note 19 to the Consolidated Financial Statements for the fair value by class of financial asset and its hierarchy level.

[2]Refer to Note 12 to the Consolidated Financial Statements for the composition of other short-term borrowings.


	December 31, 2025
	Carrying				Measured
(In thousands)	amount	Level 1	Level 2	Level 3	at NAV	Fair value
Financial Assets:
Cash and due from banks	$402,755	$402,755	$-	$-	$-	$402,755
Money market investments	4,626,506	4,616,272	10,234	-	-	4,626,506
Trading account debt securities, excluding derivatives [1]	36,569	12,450	23,936	183	-	36,569
Debt securities available-for-sale [1]	20,574,972	6,576,313	13,997,504	1,155	-	20,574,972
Debt securities held-to-maturity:
U.S. Treasury securities	$7,268,967	$-	$7,309,991	$-	$-	$7,309,991
Obligations of Puerto Rico, States and political subdivisions	45,295	-	6,766	39,564	-	46,330
Collateralized mortgage obligation-federal agency	1,495	-	1,306	-	-	1,306
Securities in wholly owned statutory business trusts	5,960	-	5,960	-	-	5,960
Total debt securities held-to-maturity	$7,321,717	$-	$7,324,023	$39,564	$-	$7,363,587
Equity securities:
FHLB stock	$68,422	$-	$68,422	$-	$-	$68,422
FRB stock	102,665	-	102,665	-	-	102,665
Other investments	58,761	-	50,632	7,817	852	59,301
Total equity securities	$229,848	$-	$221,719	$7,817	$852	$230,388
Loans held-for-sale	$9,998	$-	$9,998	$-	$-	$9,998
Loans held-in-portfolio	38,519,462	-	-	37,858,044	-	37,858,044
Mortgage servicing rights	96,356	-	-	96,356	-	96,356
Derivatives	27,913	-	27,913	-	-	27,913


	December 31, 2025
	Carrying				Measured
(In thousands)	amount	Level 1	Level 2	Level 3	at NAV	Fair value
Financial Liabilities:
Deposits:
Demand deposits	$56,710,732	$-	$56,710,732	$-	$-	$56,710,732
Time deposits	9,479,361	-	9,305,980	-	-	9,305,980
Total deposits	$66,190,093	$-	$66,016,712	$-	$-	$66,016,712
Assets sold under agreements to repurchase	$39,001	$-	$39,004	$-	$-	$39,004
Other short-term borrowings [2]	650,000	-	650,000	-	-	650,000
Notes payable:
FHLB advances	$164,620	$-	$163,417	$-	$-	$163,417
Unsecured senior debt securities	396,558	-	419,300	-	-	419,300
Junior subordinated deferrable interest debentures (related to trust preferred securities)	198,399	-	191,909	-	-	191,909
Total notes payable	$759,577	$-	$774,626	$-	$-	$774,626
Derivatives	$25,740	$-	$25,740	$-	$-	$25,740

[1]Refer to Note 19 to the Consolidated Financial Statements for the fair value by class of financial asset and its hierarchy level.

[2]Refer to Note 12 to the Consolidated Financial Statements for the composition of other short-term borrowings.

Refer to Note 16 to the Consolidated Financial Statements for the notional amount of commitments to extend credit, which represents the

unused portion of credit facilities granted to customers, and letters of credit, which represent the contractual amount that is required to be

paid in the event of nonperformance, at June 30, 2026 and December 31, 2025. The fair value of commitments to extend credit and letters

of credit, which are based on the fees charged to enter into those agreements, are not material to Popular’s financial statements.