Note 22 – Fair value of financial instruments

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

betweenwillingparties,otherthaninaforcedorliquidationsale.Forthosefinancialinstrumentswithnoquotedmarketprices

available, fair values have been estimated using presentvalue calculations or other valuation techniques, as wellas management’s

best judgment with respect to current economic conditions, including discount rates, estimates of future cash flows, and prepayment

assumptions. Many of theseestimates involve various assumptions andmay vary significantly fromamounts that could berealized

in actual transactions.

The fair valuesreflected herein have beendetermined based on theprevailing rate environment atMarch 31, 2026and December

31, 2025, as applicable. In different interest rate environments,fair value estimates can differ significantly, especially for certain fixed

ratefinancialinstruments.Inaddition,thefairvaluespresenteddonotattempttoestimatethevalueoftheCorporation’sfee

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

concern. There have beenno changes in theCorporation’s valuation methodologies and inputsused to estimate thefair values for

each class of financial assets and liabilities not measuredat fair value.

The following tables present thecarrying amount and estimated fairvalues of financial instruments with theircorresponding level in

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

estimate of the underlying value of the Corporation.

March 31, 2026

Carrying

Measured

(In thousands)

amount

Level 1

Level 2

Level 3

at NAV

Fair value

Financial Assets:

Cash and due from banks

$

384,922

$

384,922

$

-

$

-

$

-

$

384,922

Money market investments

4,655,699

4,645,897

9,802

-

-

4,655,699

Trading account debt securities, excludingderivatives

[1]

30,410

3,790

26,440

180

-

30,410

Debt securities available-for-sale

[1]

21,733,269

6,996,073

14,736,063

1,133

-

21,733,269

Debt securities held-to-maturity:

U.S. Treasury securities

$

6,913,002

$

-

$

6,918,757

$

-

$

-

$

6,918,757

Obligations of Puerto Rico, States and political

subdivisions

36,306

-

-

37,205

-

37,205

Collateralized mortgage obligation-federal agency

1,491

-

1,301

-

-

1,301

Securities in wholly owned statutory business trusts

5,960

-

5,960

-

-

5,960

Total debt securitiesheld-to-maturity

$

6,956,759

$

-

$

6,926,018

$

37,205

$

-

$

6,963,223

Equity securities:

FHLB stock

$

53,796

$

-

$

53,796

$

-

$

-

$

53,796

FRB stock

103,759

-

103,759

-

-

103,759

Other investments

59,611

-

51,198

7,808

1,135

60,141

Total equity securities

$

217,166

$

-

$

208,753

$

7,808

$

1,135

$

217,696

Loans held-for-sale

$

5,603

$

-

$

5,603

$

-

$

-

$

5,603

Loans held-in-portfolio

38,465,973

-

-

37,793,368

-

37,793,368

Mortgage servicing rights

94,232

-

-

94,232

-

94,232

Derivatives

23,956

-

23,956

-

-

23,956

March 31, 2026

Carrying

Measured

(In thousands)

amount

Level 1

Level 2

Level 3

at NAV

Fair value

Financial Liabilities:

Deposits:

Demand deposits

$

57,865,386

$

-

$

57,865,386

$

-

$

-

$

57,865,386

Time deposits

9,745,930

-

9,528,676

-

-

9,528,676

Total deposits

$

67,611,316

$

-

$

67,394,062

$

-

$

-

$

67,394,062

Assets sold under agreements to repurchase

$

34,576

$

-

$

34,580

$

-

$

-

$

34,580

Other short-term borrowings

[2]

350,000

-

350,000

-

-

350,000

Notes payable:

FHLB advances

$

139,620

$

-

$

138,189

$

-

$

-

$

138,189

Unsecured senior debt securities

396,955

-

418,624

-

-

418,624

Junior subordinated deferrable interest debentures

(related to trust preferred securities)

198,406

-

199,020

-

-

199,020

Total notes payable

$

734,981

$

-

$

755,833

$

-

$

-

$

755,833

Derivatives

$

22,820

$

-

$

22,820

$

-

$

-

$

22,820

[1]

Refer to Note 21 to the Consolidated Financial Statementsfor the fair value by class of financial asset and its hierarchylevel.

[2]

Refer to Note 13 to the Consolidated Financial Statementsfor the composition of other short-term borrowings.

RefertoNote18totheConsolidatedFinancialStatementsforthenotionalamountofcommitmentstoextendcredit,which

represents the unused portion ofcredit facilities granted to customers,and letters of credit,which represent the contractual amount

thatisrequiredtobepaidintheeventofnonperformance,atMarch31,2026andDecember31,2025.Thefairvalueof

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

material to Popular’s financial statements.