Note 24 – Fair value of financial instruments

The fairvalue offinancial instrumentsis theamount atwhich anasset orobligation couldbe exchangedin acurrent transaction

betweenwillingparties,otherthaninaforcedorliquidationsale.Forthosefinancialinstrumentswithnoquotedmarketprices

available, fair values havebeen estimated using presentvalue calculations or othervaluation techniques, as wellas management’s

best judgment with respect to current economicconditions, including discount rates, estimatesof future cash flows, and prepayment

assumptions. Many ofthese estimates involvevarious assumptions andmay vary significantlyfrom amounts thatcould be realized

in actual transactions.

The fair valuesreflected herein havebeen determined basedon the prevailingrate environment atMarch 31, 2025and December

31, 2024, as applicable. In different interest rate environments, fair value estimates candiffer significantly, especiallyfor certain fixed

ratefinancialinstruments.Inaddition,thefairvaluespresenteddonotattempttoestimatethevalueoftheCorporation’sfee

generating businessesand anticipatedfuture businessactivities, thatis, theydo notrepresent theCorporation’s valueas agoing

concern. There havebeen no changesin the Corporation’svaluation methodologies andinputs used toestimate the fairvalues for

each class of financial assets and liabilities not measured at fair value.

The following tablespresent the carryingamount and estimatedfair values offinancial instruments withtheir corresponding levelin

the fairvalue hierarchy.The aggregatefair valueamounts ofthe financialinstruments discloseddo notrepresent management’s

estimate of the underlying value of the Corporation.

March 31, 2025

Carrying

Measured

(In thousands)

amount

Level 1

Level 2

Level 3

at NAV

Fair value

Financial Assets:

Cash and due from banks

$

380,165

$

380,165

$

-

$

-

$

-

$

380,165

Money market investments

6,195,028

6,184,571

10,457

-

-

6,195,028

Trading account debt securities, excluding derivatives

[1]

28,477

8,524

19,742

211

-

28,477

Debt securities available-for-sale

[1]

19,493,180

8,601,447

10,890,526

1,207

-

19,493,180

Debt securities held-to-maturity:

U.S. Treasury securities

$

7,586,169

$

-

$

7,583,514

$

-

$

-

$

7,583,514

Obligations of Puerto Rico, States and political

subdivisions

49,594

-

6,853

43,030

-

49,883

Collateralized mortgage obligation-federal agency

1,514

-

1,329

-

-

1,329

Securities in wholly owned statutory business trusts

5,960

-

5,960

-

-

5,960

Total debt securities held-to-maturity

$

7,643,237

$

-

$

7,597,656

$

43,030

$

-

$

7,640,686

Equity securities:

FHLB stock

$

51,428

$

-

$

51,428

$

-

$

-

$

51,428

FRB stock

100,526

-

100,526

-

-

100,526

Other investments

53,067

-

45,129

8,025

407

53,561

Total equity securities

$

205,021

$

-

$

197,083

$

8,025

$

407

$

205,515

Loans held-for-sale

$

5,077

$

-

$

5,077

$

-

$

-

$

5,077

Loans held-in-portfolio

36,491,884

-

-

35,777,886

-

35,777,886

Mortgage servicing rights

104,743

-

-

104,743

-

104,743

Derivatives

20,828

-

20,828

-

-

20,828

March 31, 2025

Carrying

Measured

(In thousands)

amount

Level 1

Level 2

Level 3

at NAV

Fair value

Financial Liabilities:

Deposits:

Demand deposits

$

56,651,118

$

-

$

56,651,118

$

-

$

-

$

56,651,118

Time deposits

9,168,137

-

8,929,129

-

-

8,929,129

Total deposits

$

65,819,255

$

-

$

65,580,247

$

-

$

-

$

65,580,247

Assets sold under agreements to repurchase

$

57,268

$

-

$

57,274

$

-

$

-

$

57,274

Other short-term borrowings

[2]

200,000

-

200,000

-

-

200,000

Notes payable:

FHLB advances

$

239,199

$

-

$

234,299

$

-

$

-

$

234,299

Unsecured senior debt securities

395,570

-

415,132

-

-

415,132

Junior subordinated deferrable interest debentures

(related to trust preferred securities)

198,380

-

189,227

-

-

189,227

Total notes payable

$

833,149

$

-

$

838,658

$

-

$

-

$

838,658

Derivatives

$

19,523

$

-

$

19,523

$

-

$

-

$

19,523

[1]

Refer to Note 23 to the Consolidated Financial Statements for the fair value by class of financial asset and its hierarchylevel.

[2]

Refer to Note 15 to the Consolidated Financial Statements for the composition of other short-term borrowings.

RefertoNote20totheConsolidatedFinancialStatementsforthenotionalamountofcommitmentstoextendcredit,which

represents the unused portion of credit facilitiesgranted to customers,andletters of credit, which represent the contractual amount

thatisrequiredtobepaidintheeventofnonperformance,atMarch31,2025andDecember31,2024.Thefairvalueof

commitments toextend creditand lettersof credit,which arebased onthe feescharged toenter intothose agreements,are not

material to Popular’s financial statements.