Popular, Inc.: Form 10-Q for the period ended Sep 30, 2025
Filed with the SEC on Nov 10, 2025 and accepted by EDGAR at Nov 10, 2025, 15:14 ET.
Management's discussion and analysis
As filed, 136,210 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
This report includes management’s discussion and analysis (“MD&A”) of the consolidated financial position and financial
performance of Popular, Inc. (the “Corporation” or “Popular”). All accompanying tables, financial statements and notes included
elsewhere in this report should be considered an integral part of this analysis.
The Corporation is a diversified, publicly owned financial holding company subject to the supervision and regulation of the Board of
Governors of the Federal Reserve System. The Corporation has operations in Puerto Rico, the United States (“U.S.”) mainland and
the U.S. and British Virgin Islands. In Puerto Rico, the Corporation provides retail, mortgage, commercial banking services and auto
and equipment leasing and financing through its principal banking subsidiary, Banco Popular de Puerto Rico (“BPPR”), as well as
broker-dealer and insurance services through specialized subsidiaries. In the U.S. mainland, the Corporation provides retail and
commercial banking services, as well as equipment leasing and financing, through its New York-chartered banking subsidiary,
Popular Bank (“PB” or “Popular U.S.”), which has branches located in New York, New Jersey and Florida. Note 28 to the
Consolidated Financial Statements presents information about the Corporation’s business segments.
As a financial services company, the Corporation’s earnings are significantly affected by general business and economic conditions
in the markets which we serve. Lending and deposit activities and fee income generation are influenced by the level of business
spending and investment, consumer income, spending and savings, capital market activities, competition, customer preferences,
interest rate conditions and prevailing market rates on competing products.
The Corporation operates in a highly regulated environment and may be adversely affected by changes in federal and local laws
and regulations. Also, competition with other financial institutions, as well as with non-traditional financial service providers and
technology companies that provide electronic and internet-based financial solutions and services, could adversely affect its
profitability.
The Corporation continuously monitors general business and economic conditions, industry-related indicators and trends,
competition, interest rate volatility, credit quality indicators, loan, and deposit demand, operational and systems efficiencies, revenue
enhancements and changes in the regulation of financial services companies.
The description of the Corporation’s business contained in Item 1 of the 2024 Form 10-K, while not all inclusive, discusses additional
information about the business of the Corporation. Readers should also refer to “Part I - Item 1A” of the 2024 Form 10-K and “Part II
- Item 1A” of this Form 10-Q for a discussion of certain risks and uncertainties to which the Corporation is subject, many beyond the
Corporation’s control that, in addition to the other information in this Form 10-Q, readers should consider.
The Corporation’s common stock is traded on the NASDAQ Global Select Market under the symbol BPOP.
OVERVIEW
Financial highlights for the quarter ended September 30, 2025
The Corporation’s net income for the quarter ended September 30, 2025 amounted to $211.3 million, an increase of $56.0 million
when compared to a net income of $155.3 million for the quarter ended September 30, 2024. Higher net income was mainly driven
by higher net interest income, offset in part by an increase in operating expense.
Financial highlights for the quarter ended September 30, 2025 include:
Net interest income amounted to $646.5 million, an increase of $74.0 million when compared to the quarter ended
September 30, 2024, driven by lower cost of deposits, investments in U.S. Treasury securities at higher yields and loan
growth. Net interest income on a taxable equivalent basis for the third quarter of 2025 was $720.8 million, an increase of
$107.9 million. Net interest margin expanded by 27 bps to 3.51%. On a taxable equivalent basis, net interest margin
expanded by 43 basis points to 3.90%.
The provision for credit losses amounted to $75.1 million for the quarter ended September 30, 2025, an increase of $3.7
million when compared to the quarter ended September 30, 2024, driven by higher reserves in the commercial loans portfolio, mainly due to two unrelated NPL inflows during the quarter, partially offset by a lower provision for the consumer loans portfolio due to improvements in credit quality.
Non-interest income amounted to $171.2 million, an increase of $7.1 million when compared to the quarter ended
September 30, 2024, mainly driven by higher credit and debit card fee income, a favorable valuation adjustment of equity
securities held for deferred compensation plans, higher other operating income due to a retroactive charge to a tenant for
energy supplied in prior years, and higher investment management fees.
Operating expenses amounted to $495.3 million for the quarter, reflecting an increase of $28.0 million when compared to
the quarter ended September 30, 2024. The increase was mainly driven by higher personnel costs, primarily due to profit
sharing accrual and higher incentives, and a non-cash goodwill impairment charge related to our U.S. based leasing
subsidiary, partially offset by lower insurance claims and operational losses reserves and lower equipment expenses.
Income tax expense of $36.0 million with an effective tax rate (“ETR”) of 14.5% during the quarter ended September 30,
2025, compared to an income tax expense of $42.5 million with an ETR of 21.5% for the quarter ended September 30,
2024 due to higher tax-exempt income and tax credit purchases during 2025.
At September 30, 2025, the Corporation’s total assets amounted to $75.1 billion, compared to $73.0 billion at December
31, 2024. The increase of $2.1 billion is primarily due to higher balance in the available-for-sale (“AFS”) securities
portfolio, mainly driven by higher U.S. Treasury securities, and an increase across most loan portfolios, mainly in
commercial, mortgage, and construction, partially offset by lower balance in the money market investments, held-to-
maturity (“HTM”) investment securities, and a decrease in other assets.
Deposits amounted to $66.5 billion at September 30, 2025, an increase of $1.6 billion from December 31, 2024, driven by
an increase in high-cost deposits, mainly time deposits at PB, and P.R. public deposits.
Stockholders’ equity amounted to $6.1 billion at September 30, 2025, compared to $5.6 billion at December 31, 2024. The
Corporation and its banking subsidiaries continue to be well capitalized. As of September 30, 2025, the Corporation’s
tangible book value per common share was $79.12, an increase of $10.96 from December 31, 2024. The Common Equity
Tier 1 Capital ratio at September 30, 2025 was 15.79%, compared to 16.03% at December 31, 2024.
Refer to Table 1 for selected financial data for the quarters ended September 30, 2025 and September 30, 2024.
Table 1 - Financial Highlights
Financial Condition Highlights
Ending balances at
Average for the nine months ended
(In thousands)
September 30,
2025
December 31,
2024
Variance
September
30, 2025
September
30, 2024
Variance
Money market investments
4,754,391
6,380,948
(1,626,557)
6,205,101
6,663,967
(458,866)
Investment securities
28,371,673
26,244,977
2,126,696
28,758,022
27,701,911
1,056,111
Loans
[1]
38,694,941
37,113,075
1,581,866
37,692,744
35,411,807
2,280,937
Earning assets
71,821,005
69,739,000
2,082,005
72,655,867
69,777,685
2,878,182
Total assets
75,065,798
73,045,383
2,020,415
75,776,756
72,851,597
2,925,159
Deposits
66,513,404
64,884,345
1,629,059
66,452,057
64,521,953
1,930,104
Borrowings
1,246,807
1,176,126
70,681
1,145,836
1,039,130
106,706
Total liabilities
68,950,126
67,432,317
1,517,809
68,584,814
66,530,111
2,054,703
Stockholders’ equity
6,115,672
5,613,066
502,606
7,191,941
6,321,486
870,455
Note: Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-
sale to held-to-maturity.
Operating Highlights
Quarters ended September 30,
Nine months ended September 30,
(In thousands, except per share information)
2025
2024
Variance
2025
2024
Variance
Net interest income
646,505
572,473
74,032
1,883,651
1,691,529
192,122
Provision for credit losses
(benefit)
75,125
71,448
3,677
188,147
190,840
(2,693)
Non-interest income
171,195
164,082
7,113
491,733
494,206
(2,473)
Operating expenses
495,287
467,321
27,966
1,459,060
1,420,010
39,050
Income before income tax
247,288
197,786
49,502
728,177
574,885
153,292
Income tax expense
35,971
42,463
(6,492)
128,918
138,490
(9,572)
Net income
211,317
155,323
55,994
599,259
436,395
162,864
Net income applicable to common stock
210,964
154,970
55,994
598,200
435,336
162,864
Net income per common share – basic
3.15
2.16
0.99
8.78
6.06
2.72
Net income per common share – diluted
3.14
2.16
0.98
8.78
6.05
2.73
Dividends declared per common share
0.75
0.62
0.13
2.15
1.86
0.29
Quarters ended September 30,
Nine months ended September 30,
Selected Statistical Information
2025
2024
2025
2024
Common Stock Data
End market price
129.10
100.27
129.10
100.27
Book value per common share at period end
91.00
80.35
91.00
80.35
Profitability Ratios
Return on assets
1.09
0.84
1.06
0.79
Return on common equity
11.60
8.82
11.15
8.43
Net interest spread (non-taxable equivalent basis)
2.87
2.43
2.81
2.41
Net interest spread (taxable equivalent) - Non-GAAP
3.26
2.66
3.18
2.65
Net interest margin (non-taxable equivalent basis)
3.51
3.24
3.46
3.20
Net interest margin (taxable equivalent) - Non-GAAP
3.90
3.47
3.83
3.44
Capitalization Ratios
Average equity to average assets
9.46
8.86
9.49
8.68
Common equity Tier 1 capital
15.79
16.42
15.79
16.42
Tangible common book value per common share (non-GAAP)
[2]
79.12
69.04
79.12
69.04
Return on average tangible common equity
[2]
13.06
9.98
12.57
9.56
Tier I capital
15.84
16.48
15.84
16.48
Total capital
17.58
18.24
17.58
18.24
Tier 1 leverage
8.48
8.67
8.48
8.67
[1]
Includes loans held-for-sale.
[2]
Refer to Table 10 for reconciliation to GAAP financial measures.
Non-GAAP Financial Measures
This Form 10-Q contains financial information prepared under accounting principles generally accepted in the United States (“U.S.
GAAP”) and non-GAAP financial measures. Management uses non-GAAP financial measures when it is determined that these
measures provide meaningful information about the underlying performance of the Corporation’s ongoing operations. Non-GAAP
financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other
companies.
Adjusted net income - Non-GAAP Financial Measure
In addition to analyzing the Corporation’s results on a reported basis, management monitors whether the impact of certain non-
recurring or infrequent transactions need to be excluded from the results of operations to present what is then considered to be
“adjusted net income” of the Corporation. Management believes that the “adjusted net income” provides meaningful information
about the underlying performance of the Corporation’s ongoing operations. The “adjusted net income” is a non-GAAP financial
measure.
The following table presents the adjusted net income for the nine months ended September 30, 2024. There were no non-GAAP
adjustments for the nine months ended September 30, 2025.
Table 2 - Adjusted Net Income for the Nine Months Ended September 30, 2024 (Non-GAAP)
(In thousands)
Income before
income tax
Income tax
expense
(benefit)
Total
U.S. GAAP Net income
$574,885
$138,490
$436,395
Non-GAAP Adjustments:
FDIC Special Assessment [1]
14,287
(5,234)
9,053
Adjustments related to intercompany distributions [2]
6,400
16,483
22,883
Adjusted net income (Non-GAAP)
$595,572
$127,241
$468,331
[1] Expense recorded during the first quarter of 2024 to increase the estimate recognized during the fourth quarter of 2023 related to the November 16,
2023 FDIC Special Assessment to recover the losses to the deposit insurance fund used by the FDIC in connection with the receiverships of several
failed banks. The special assessment amount and collection period may change if the estimated loss is periodically adjusted or if the total amount
collected varies.
[2] Income tax expense and other related expenses from prior periods related to withholding taxes on certain distributions from U.S. subsidiaries.
Net interest income on a taxable equivalent basis – Non-GAAP Financial Measure
Net interest income, on a taxable equivalent basis, is presented with its different components in Table s 3 and 4 for the quarter and
nine months ended September 30, 2025, as compared with the same period in 2024, segregated by major categories of interest
earning assets and interest-bearing liabilities.
The main sources of tax-exempt interest income are certain loans and investments in obligations of the U.S. Government, its
agencies and sponsored entities, and certain obligations of the Commonwealth of Puerto Rico and its agencies and assets held by
the Corporation’s international banking entities. On tables 3 and 4, the interest income has been converted to a taxable equivalent
basis, using the applicable statutory income tax rates for each period net of interest expense that the Puerto Rico tax law requires to
be disallowed, based on an equal proportion of tax-exempt assets to total assets, and by an allocation of general and administrative
expenses attributable to exempt income, reducing the benefit of the tax-exempt income. The effective yield, on a taxable equivalent
basis, will vary depending on the level of these expenses that are attributable to the available exempt income. Under Puerto Rico
tax law, the exempt interest can be deducted up to the amount of taxable income. Management believes that this presentation
provides meaningful information since it facilitates the comparison of revenues arising from taxable and exempt sources.
Tangible Common Equity and Tangible Assets
Tangible common equity, tangible common equity ratio, tangible assets and tangible book value per common share are non-GAAP
financial measures. Tangible common equity ratio and tangible book value per common share should be used in conjunction with
more traditional bank capital ratios commonly used by banks and analysts to compare the capital adequacy of banking
organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase
accounting method for mergers and acquisitions. Tangible common equity, tangible assets and other related measures should not
be used in isolation or as a substitute for stockholders' equity, total assets or any other measure calculated in accordance with
GAAP. Moreover, the way the Corporation calculates its tangible common equity, tangible assets and other related measures may
differ from that of other companies reporting measures with similar names.
Table 10 provides a reconciliation of total stockholders’ equity to tangible common equity and total assets to tangible assets as of
September 30, 2025 and December 31, 2024.
CRITICAL ACCOUNTING POLICIES / ESTIMATES
The accounting and reporting policies followed by the Corporation and its subsidiaries conform to U.S. GAAP and general practices
within the financial services industry. Various elements of the Corporation’s accounting policies, by their nature, are inherently
subject to estimation techniques, valuation assumptions and other subjective assessments.
Management has discussed the development and selection of the critical accounting estimates with the Corporation’s Audit
Committee. The Corporation has identified as critical accounting estimates those related to: (i) Fair Value Measurement of Financial
Instruments; (ii) Loans and Allowance for Credit Losses; (iii) Income Taxes; (iv) Goodwill and Other Intangible Assets; and (v)
Pension and Postretirement Benefit Obligations. For a summary of these critical accounting estimates, refer to the MD&A included
in the 2024 Form 10-K. Also, refer to Note 2 to the Consolidated Financial Statements included in the 2024 Form 10-K for a
summary of the Corporation’s significant accounting policies and to Note 3 to the Consolidated Financial Statements included in this
Form 10-Q for information on recently adopted accounting standard updates.
STATEMENT OF OPERATIONS ANALYSIS
NET INTEREST INCOME
Net interest income (“NII”) for the quarter ended September 30, 2025 was $646.5 million an increase of $74.0 million, compared to
the same quarter in 2024. The increase in net interest income was supported by lower cost of deposits, mainly P.R. public deposits,
higher income from investments in U.S. Treasury securities at higher yields, and from loan growth. Net interest income on a taxable
equivalent basis for the third quarter of 2025 was $720.8 million, an increase of $107.9 million.
Net interest margin (“NIM”) for the quarter was 3.51%, an increase of 27 basis points when compared to the third quarter of 2024.
On a taxable equivalent basis, net interest margin for the third quarter of 2025 was 3.90%, an increase of 43 basis points when
compared to the third quarter of 2024, driven by higher level of tax-exempt securities and loans. NIM expansion, when compared to
the same quarter of the previous year, was mainly attributable to lower deposit costs driven as a result of the repricing of high-cost
deposits that are market-linked, mainly those of P.R. public deposits, and higher yields on U.S. Treasury securities. Total cost of
deposits decreased 37 basis points to 1.79%.
On a taxable equivalent basis, the main drivers of the increase for the third quarter of 2025 were:
higher income from investment securities and money market investments by $17.5 million, mainly driven by higher income
from U.S. Treasury securities by $49.3 million or 57 basis points, due to higher re-investment activity at higher yields
partially offset by lower income from money market securities by $29.2 million as a result of the deployment of funds to
loan growth and the purchase of U.S. Treasury securities. During the third quarter of 2025, the Corporation purchased
approximately $2.5 billion of U.S. Treasury notes with an average duration of 1.4 years and a yield of approximately
3.65%, through a combination of approximately $1.0 billion in maturing U.S. Treasuries and a reduction of approximately
$1.5 billion in overnight Fed funds;
higher income from loans by $45.6 million driven by loan growth most notably in the commercial, construction and
mortgage portfolios, including certain tax-exempt loans in BPPR, partially offset by lower yields by 7 basis points, mainly
from adjustable rate commercial and construction portfolios due to short-term market rates decline; and
lower interest expense on deposits by $47.6 million, or 37 basis points, when compared to the same period in 2024. The
cost of interest-bearing deposits decreased by 52 basis points, mainly due to the repricing of market-linked P.R. public
deposits which decreased by 105 basis points to 3.19%, and a decrease in the cost of deposits in Popular U.S.,
particularly in time deposits and those captured through online channels.
Table 3 - Analysis of Levels & Yields on a Taxable Equivalent Basis (Non-GAAP)
Quarter ended September 30,
Variance
Average Volume
Average Yields / Costs
Interest
Attributable to
2025
2024
Variance
2025
2024
Variance
2025
2024
Variance
Rate
Volume
(In millions)
(In thousands)
5,990
7,033
(1,043)
4.43
5.43
(1.00)
Money market
investments
66,867
96,061
(29,194)
(16,107)
(13,087)
28,957
27,569
1,388
3.42
2.92
0.50
Investment securities [1]
249,071
202,317
46,754
32,970
13,784
28
30
(2)
5.43
5.87
(0.44)
Trading securities
391
436
(45)
(31)
(14)
Total money market,
investment and
trading
34,975
34,632
343
3.59
3.43
0.16
securities
316,329
298,814
17,515
16,832
683
Loans:
19,229
17,798
1,431
6.72
6.90
(0.18)
Commercial
325,869
308,734
17,135
(7,239)
24,374
1,549
1,129
420
8.24
8.85
(0.61)
Construction
32,184
25,102
7,082
(1,732)
8,814
1,981
1,851
130
7.26
6.97
0.29
Leasing
35,957
32,241
3,716
1,378
2,338
8,484
7,911
573
5.96
5.73
0.23
Mortgage
126,352
113,409
12,943
4,523
8,420
3,257
3,211
46
13.80
14.08
(0.28)
Consumer
113,280
112,423
857
(787)
1,644
3,945
3,879
66
9.15
8.94
0.21
Auto
91,006
87,189
3,817
2,338
1,479
38,445
35,779
2,666
7.49
7.56
(0.07)
Total loans
724,648
679,098
45,550
(1,519)
47,069
73,420
70,411
3,009
5.63
5.53
0.10
Total earning assets
1,040,977
977,912
63,065
15,313
47,752
Interest bearing
deposits:
8,184
7,387
797
1.77
2.04
(0.27)
NOW and money
market
36,421
37,857
(1,436)
(4,891)
3,455
14,529
14,318
211
0.81
0.92
(0.11)
Savings
29,772
33,134
(3,362)
(3,981)
619
8,825
8,366
459
3.16
3.45
(0.29)
Time deposits
70,196
72,503
(2,307)
(6,096)
3,789
20,766
19,468
1,298
3.19
4.24
(1.05)
P.R. public deposits
167,043
207,491
(40,448)
(52,899)
12,451
52,304
49,539
2,765
2.30
2.82
(0.52)
Total interest bearing
deposits
303,432
350,985
(47,553)
(67,867)
20,314
14,846
14,968
(122)
Non-interest bearing
demand deposits
67,150
64,507
2,643
1.79
2.16
(0.37)
Total deposits
303,432
350,985
(47,553)
(67,867)
20,314
405
101
304
4.52
5.62
(1.10)
Short-term borrowings
4,616
1,430
3,186
(267)
3,453
Other medium and
812
950
(138)
5.98
5.32
0.66
long-term debt
12,096
12,560
(464)
226
(690)
Total interest bearing
53,521
50,590
2,931
2.37
2.87
(0.50)
liabilities (excluding
demand deposits)
320,144
364,975
(44,831)
(67,908)
23,077
Other sources of funds
5,053
4,853
200
73,420
70,411
3,009
1.73
2.06
(0.33)
Total source of funds
320,144
364,975
(44,831)
(67,908)
23,077
Net interest margin/
income on a taxable
equivalent basis (Non-
GAAP)
3.90
3.47
0.43
720,833
612,937
107,896
83,221
24,675
3.26
2.66
0.60
Net interest spread
Taxable equivalent
adjustment
74,328
40,464
33,864
Net interest margin/
income non-taxable
equivalent basis (GAAP)
3.51
3.24
0.27
646,505
572,473
74,032
Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the change in each category.
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from
available-for-sale to held-to-maturity.
Net Interest income for the nine-month period ended September 30, 2025 was $1.9 billion, or $192.1 million higher than the same
period in 2024. Taxable equivalent net interest income was $2.1 billion, an increase of $264.6 million when compared to the same
period in 2024. NIM was 3.46%, an increase of 26 basis points when compared to 3.20% in 2024. NIM, on a taxable equivalent
basis, for the nine months ended September 30, 2025 was 3.83%, an increase of 39 basis points compared to the same period of
The main drivers of the variances in net interest income on a taxable equivalent basis for the nine-month period ended September
30, 2025 were:
higher income from investment securities and money market investments by $29.3 million driven by higher income from
U.S. Treasury securities by $103.2 million mainly due to higher yields by 47 basis points and higher average volume by
$1.1 billion, as the Corporation continues to re-invest U.S. Treasury Notes maturities at higher yields, as well as use of
funds for the purchase of U.S. Treasury securities, partially offset by lower income from money market investments by
$66.3 million, or 102 basis points, mainly due money market investments lower yield due to the decline in short-term
market rates and the use of funds for loan growth and investments in U.S. Treasury securities , as discussed above;
higher income from loans by $117.2 million resulting from higher average balances by $2.3 billion, reflected across most
portfolios, most notably in the commercial, construction and mortgage loan portfolios, partially offset by lower loan yield by
three basis points driven by adjustable-rate construction and commercial portfolios due to the decline in market rates; and
lower deposit cost by $124.1 million mainly due to the repricing of market linked P.R. public deposits, which declined by
96 basis points, and the repricing of high-cost deposits at Popular U.S.
Table 4 – Analysis of Levels & Yields on a Taxable Equivalent Basis from Continuing Operations (Non-GAAP)
Period ended September 30,
Variance
Average Volume
Average Yields / Costs
Interest
Attributable to
2025
2024
Variance
2025
2024
Variance
2025
2024
Variance
Rate
Volume
(In millions)
(In thousands)
6,205
6,664
(459)
4.45
5.47
(1.02)
Money market
investments
206,565
272,893
(66,328)
(48,483)
(17,845)
28,729
28,271
458
3.28
2.88
0.40
Investment securities
[1]
705,879
610,341
95,538
79,281
16,257
29
30
(1)
5.74
5.02
0.72
Trading securities
1,237
1,114
123
155
(32)
Total money market,
investment and
trading
34,963
34,965
(2)
3.49
3.38
0.11
securities
913,681
884,348
29,333
30,953
(1,620)
Loans:
18,802
17,707
1,095
6.72
6.87
(0.15)
Commercial
945,330
910,241
35,089
(20,306)
55,395
1,440
1,064
376
8.19
8.97
(0.78)
Construction
88,179
71,426
16,753
(6,722)
23,475
1,961
1,794
167
7.18
6.86
0.32
Leasing
105,650
92,292
13,358
4,501
8,857
8,331
7,818
513
5.89
5.67
0.22
Mortgage
368,141
332,626
35,515
13,125
22,390
3,224
3,209
15
14.10
13.94
0.16
Consumer
339,880
334,818
5,062
3,058
2,004
3,935
3,820
115
9.00
8.86
0.14
Auto
264,905
253,511
11,394
3,760
7,634
37,693
35,412
2,281
7.49
7.52
(0.03)
Total loans
2,112,085
1,994,914
117,171
(2,584)
119,755
72,656
70,377
2,279
5.57
5.46
0.11
Total earning assets
3,025,766
2,879,262
146,504
28,369
118,135
Interest bearing
deposits:
8,077
7,558
519
1.73
2.00
(0.27)
NOW and money
market
104,711
113,405
(8,694)
(14,883)
6,189
14,547
14,579
(32)
0.84
0.93
(0.09)
Savings
91,430
101,008
(9,578)
(9,213)
(365)
8,587
8,142
445
3.17
3.35
(0.18)
Time deposits
203,909
204,014
(105)
(11,631)
11,526
20,464
19,168
1,296
3.24
4.20
(0.96)
P.R. public deposits
496,303
601,993
(105,690)
(144,853)
39,163
51,675
49,447
2,228
2.32
2.76
(0.44)
Total interest bearing
deposits
896,353
1,020,420
(124,067)
(180,580)
56,513
14,778
15,075
(297)
Non-interest bearing
demand deposits
66,453
64,522
1,931
1.80
2.11
(0.31)
Total deposits
896,353
1,020,420
(124,067)
(180,580)
56,513
333
89
244
4.55
5.65
(1.10)
Short-term
borrowings
11,342
3,748
7,594
(669)
8,263
Other medium and
835
975
(140)
5.79
5.18
0.61
long-term debt
36,173
37,799
(1,626)
3,875
(5,501)
Total interest bearing
52,843
50,511
2,332
2.39
2.81
(0.42)
liabilities (excluding
demand deposits)
943,868
1,061,967
(118,099)
(177,374)
59,275
5,035
4,791
244
Other sources of
funds
72,656
70,377
2,279
1.74
2.02
(0.28)
Total source of funds
943,868
1,061,967
(118,099)
(177,374)
59,275
3.83
3.44
0.39
Net interest margin/
income on a taxable
equivalent basis
(Non-GAAP)
2,081,898
1,817,295
264,603
205,743
58,860
3.18
2.65
0.53
Net interest spread
Taxable equivalent
adjustment
198,247
125,766
72,481
3.46
3.20
0.26
Net interest margin/
income non-taxable
equivalent basis
(GAAP)
1,883,651
1,691,529
192,122
Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the change in each category.
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred
from available-for-sale to held-to-maturity.
Provision for Credit Losses - Loans Held-in-Portfolio and Unfunded Commitments
For the quarter ended September 30, 2025, the Corporation recorded a provision for credit losses of $75.1 million, an increase of
$3.7 million when compared to the same quarter of the previous year. The provision for loan and lease losses was $74.5 million, an
increase of $1.7 million, and the provision for unfunded commitments was $0.8 million, an unfavorable variance of $1.3 million,
mainly driven by higher unfunded commitments at the BPPR segment. The provision release for HTM was $0.2 million, an increase
of $0.6 million when compared to the same quarter of the previous year.
As discussed in Note 8 to the Consolidated Financial Statements, the Corporation estimates the ACL by weighting the outputs of
optimistic, baseline, and pessimistic scenarios. During the first quarter of 2025, in response to the economic uncertainty, the
Corporation increased the probability assigned to the pessimistic scenario making it equal to the baseline scenario. Subsequently, in
the second quarter of 2025, the probability assigned to the pessimistic scenario was moderately reduced based on the changes in
the economic outlook and a reassessment of uncertainty compared to the previous quarter. The net impact of these two events on
the ACL levels for the nine months ended September 30, 2025 was $13.7 million in additional reserves. There were no changes to
the probability weights during the third quarter of 2025. The probability weight for the pessimistic scenario remains above the levels
observed in 2024, given the ongoing economic uncertainty.
The major drivers of the changes in the provision for loan losses during the quarter by business segment when compared to the
same quarter in 2024, were as follows:
In the BPPR segment, the provision for loans losses was $72.6 million, a decrease of $4.5 million when compared to the
same quarter in 2024, driven by lower reserves for the consumer portfolio of $30.6 million, mainly in auto loans and credit
cards, due to improvements in credit quality and lower net charge-offs. The favorable variance was partially offset by
higher reserves in the commercial portfolio by $21.7 million due to a specific reserve recognized for a $158.3 million
commercial and industrial facility and a $13.5 million charge-off recognized during the quarter for a $30.1 million
commercial real estate facility, both classified as NPLs during the quarter.
In the Popular U.S. segment, the provision for loans losses was $1.9 million, an increase of $6.3 million when compared
to the same quarter in 2024, mainly driven higher qualitative reserves for the commercial real estate portfolios, partially
offset by lower net charge-offs mainly in consumer portfolios.
For the nine months ended September 30, 2025, the provision for credit losses amounted to $188.1 million, a decrease of $2.7
million, compared to the nine months ended September 30, 2024. The provision for the loan portfolio was $189.3 million, flat when
compared to the nine months ended September 30, 2024. The provision release related to unfunded commitments was $1.6 million,
a decrease of $3.0 million, mainly driven by the reduction in unfunded commitments within the U.S. construction portfolio. The
provision for HTM was $0.5 million, an increase of $0.9 million when compared to the same period of the previous year. The major
drivers of the provision for loan losses during the nine months ended September 30, 2025, by business segment when compared to
the same period in 2024, were as follows:
In the BPPR segment, the provision for loan losses for the nine months ended September 30, 2025 was $168.5 million, a
decrease of $18.3 million when compared to the same period in 2024, driven by improvement in credit quality in the
consumer portfolio, mainly in credit cards, and the stable performance of the lease portfolio for which a qualitative reserve
was established in 2024, partially offset by an increase in provisions for the mortgage portfolio, driven by lower recoveries
and changes in macroeconomic forecasts and credit quality.
In the Popular U.S. segment, the provision for loan losses was $20.8 million, an increase of $18.2 million, driven by
changes in credit quality within the commercial portfolio, partially offset by lower net charge-offs within the consumer
portfolios.
At September 30, 2025, the total allowance for credit losses for loans held-in-portfolio amounted to $786.2 million, compared to
$746.0 million as of December 31, 2024. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.03% at
September 30, 2025, compared to 2.01% at December 31, 2024. Refer to Note 8 to the Consolidated Financial Statements for
additional information on the Corporation’s methodology to estimate its ACL. Refer to the Credit Risk section of this MD&A for a
detailed analysis of net charge-offs, non-performing assets, the allowance for credit losses and selected loan losses statistics.
Non-Interest Income
Non-interest income amounted to $171.2 million for the third quarter of 2025, an increase of $7.1 million when compared with the
same quarter for the previous year. This variance was primarily due to:
higher gains from equity securities by $2.7 million mainly due to the valuation of securities held for deferred compensation
plans, which have an offsetting effect on personnel cost;
higher other service fees by $2.6 million mainly due to higher credit and debit card fee income by $3.3 million, due to
higher volume of costumer transactions, and higher investment management fees by $1.1 million, driven by a higher
assets under management, partially offset by lower insurance fees by $2.4 million; and
higher other operating income by $2.1 million mainly due to income of $5.3 million related to a retroactive charge billed to
a tenant for energy supplied in prior years and higher income from investments accounted under the equity method by
$4.1 million, partially offset by lower daily car rental revenue by $5.0 million and gains from the sale of car rental units by
$1.4 million, associated with the car rental business sold in the fourth quarter of 2024;
Non-interest income amounted to $491.7 million for the nine months ended September 30, 2025, a decrease of $2.5 million when
compared to the same period of the previous year. The main factors that contributed to the variance were:
lower other operating income by $13.6 million mainly due to lower daily car rental revenue by $14.9 million and gains from
the sale of car rental units by $7.7 million during the nine months ended September 30, 2025 associated with the car
rental business sold in the fourth quarter of 2024, partially offset by income of $5.3 million related to a retroactive charge
billed to a tenant for energy supplied in prior years and $3.3 million of income related to the reimbursement of excess
interest paid to the U.S. Internal Revenue Service (the “IRS”) for late payment penalties related to tax withholdings on
intercompany distributions for the years 2014-2024 as disclosed in 2024; and
lower mortgage banking activities by $1.4 million mainly due to a decrease in mortgage servicing fees due to portfolio
runoff;
partially offset by:
higher other service fees by $6.5 million due to higher credit and debit card fee income by $7.3 million, due to higher
volume of transactions, higher investment management fees by $3.8 million, due to higher assets under management,
and higher merchant membership fees by $1.2 million, partially offset by lower insurance fees by $6.5 million;
higher service charges on deposit accounts by $3.7 million mainly due to higher non-balance compensation fees in
commercial deposits; and
an impairment on equity securities of $2.3 million recognized during 2024.
Operating Expenses
Operating expenses amounted to $495.3 million for the quarter ended September 30, 2025, an increase of $28.0 million when
compared with the same quarter of 2024. The variance in operating expenses was mainly driven by:
higher personnel costs by $31.1 million mainly due to higher incentives, including $13.0 million related to the profit-sharing plan
which is tied to the Corporation’s financial performance and $9.0 million in other performance-based incentives, higher salaries
expense by $3.4 million, due to a higher headcount and annual merit increases, and a $3.4 million increase in other personnel
costs mainly related to the valuation of securities held for deferred compensation plans, higher payroll taxes, and employee
termination benefits resulting from ongoing efforts to improve our profitability, including the decision to exit the U.S. residential
mortgage origination business and close four underperforming branches in the New York metro area at Popular U.S.;
a non-cash goodwill impairment of $13.0 million in our U.S. based equipment leasing subsidiary due to lower projected
earnings for the forecasted period; and
higher processing and transactional services expenses by $4.1 million mainly due to higher credit and debit card processing
expense as a result of higher transactional volumes;
partially offset by:
lower other operating expenses by $12.9 million mainly driven by a reversal in the third quarter of 2025 of a $4.8 million claim
reserve established during the second quarter of 2025 and lower accruals for reserves for operational losses by $4.1 million
mainly related to the mortgage servicing business; and
lower equipment expenses by $4.0 million, mainly due to the elimination of the car rental fleet depreciation expense, related to
the car rental business sold in 2024.
Operating expenses amounted to $1.5 billion for the nine months ended September 30, 2025, an increase of $39.1 million when
compared with the same period of 2024. Excluding the $6.4 million interest accrued related to prior period tax withholdings and the
$14.3 million impact of the FDIC Special Assessment recorded in 2024, total operating expenses for the nine months ended
September 30, 2025, increased by $59.7 million, when compared with the same period of 2024. The main drivers of the increase
were:
higher personnel costs by $60.4 million mainly due to higher incentives, including $26.0 million related to the profit-sharing plan
which is tied to the Corporation’s financial performance and $18.3 million in other performance-based incentives, higher
salaries expenses by $9.1 million due to a higher headcount and annual merit increases and a $5.7 million increase in other
personnel costs mainly related to the valuation of securities held for deferred compensation plans and higher payroll taxes;
a non-cash goodwill impairment of $13.0 million in our U.S. based equipment leasing subsidiary as discussed above;
higher other taxes expense by $7.9 million mainly due to higher regulatory fees and an increase in municipal license tax in
Puerto Rico;
higher technology and software expenses, including software cost amortization, by $7.8 million related to investments in the
Corporation’s cloud infrastructure, among other continuing investments in technology and transformation initiatives;
higher processing and transactional services expenses by $6.4 million mainly due to higher credit and debit card and
merchant processing expenses as a result of higher transactional volumes; and
higher business promotion expenses by $5.3 million mainly due to higher customer rewards programs expense in our credit
card business;
partially offset by:
lower other operating expenses by $17.3 million mainly driven by, lower accruals for reserves for operational losses by $9.7
million and lower pension plan cost by $3.3 million due to changes in actuarial assumptions;
lower professional fees by $12.6 million mainly due to lower costs associated with regulatory compliance activities; and
lower equipment expenses by $12.2 million, mainly due to the depreciation of car rental units during 2024 associated with units
sold as part of the daily car rental transaction during the fourth quarter of 2024.
Table 5 - Operating Expenses
Quarters ended September 30,
Nine months ended September 30,
(In thousands)
2025
2024
Variance
2025
2024
Variance
Personnel costs:
Salaries
139,350
135,983
3,367
403,052
394,001
9,051
Commissions, incentives, and other bonuses
35,309
26,350
8,959
113,846
95,587
18,259
Profit sharing
13,000
13,000
26,000
26,000
Pension, postretirement, and medical insurance
18,749
16,387
2,362
51,773
50,391
1,382
Other personnel costs, including payroll taxes
26,580
23,136
3,444
80,385
74,678
5,707
Total personnel costs
232,988
201,856
31,132
675,056
614,657
60,399
Net occupancy expenses
26,083
28,031
(1,948)
82,441
83,764
(1,323)
Equipment expenses
5,313
9,349
(4,036)
16,404
28,578
(12,174)
Other taxes
17,967
17,757
210
55,324
47,465
7,859
Professional fees
25,808
26,708
(900)
80,741
93,370
(12,629)
Technology and software expenses
87,117
88,452
(1,335)
255,481
247,666
7,815
Processing and transactional services:
Credit and debit cards
14,728
11,761
2,967
40,698
37,644
3,054
Other processing and transactional services
23,680
22,559
1,121
73,352
69,966
3,386
Total processing and transactional services
38,408
34,320
4,088
114,050
107,610
6,440
Communications
4,836
5,229
(393)
14,750
14,143
607
Business promotion:
Rewards and customer loyalty programs
17,656
16,533
1,123
52,068
46,995
5,073
Other business promotion
9,648
9,104
544
25,296
25,080
216
Total business promotion
27,304
25,637
1,667
77,364
72,075
5,289
Deposit insurance
10,873
10,433
440
30,315
44,901
(14,586)
Other real estate owned (OREO) income
(3,408)
(2,674)
(734)
(10,862)
(13,745)
2,883
Other operating expenses:
Operational losses
1,634
5,769
(4,135)
13,957
21,153
(7,196)
All other
6,980
15,750
(8,770)
39,673
56,140
(16,467)
Total other operating expenses
8,614
21,519
(12,905)
53,630
77,293
(23,663)
Amortization of intangibles
384
704
(320)
1,366
2,233
(867)
Goodwill impairment
13,000
13,000
13,000
13,000
Total operating expenses
495,287
467,321
27,966
1,459,060
1,420,010
39,050
Income Taxes
For the quarter and nine months ended September 30, 2025, the Corporation recorded an income tax expense of $36.0 million and
$128.9 million, respectively, with an effective tax rate (“ETR”) of 14.5% and 17.7%, respectively, compared to $42.5 million and
$138.5 million, respectively, with an ETR of 21.5% and 24.1% for the respective periods of year 2024.
The lower income tax expense of $6.5 million for the third quarter, when compared to the same quarter of 2024, is mainly attributed
to the higher net exempt income. For the nine-months period ended September 30, 2025, the lower income tax expense of $9.6
million reflects the impact of the tax withholding expense of $22.9 million recorded during the first quarter of year 2024, in
connection with intercompany distributions for years 2014-2024, as disclosed in Note 34 to the Consolidated Financial Statements in
the 2024 Form 10-K, and the benefit of $5.2 million related to the FDIC Special Assessment expense; excluding this combined
impact, the adjusted increase of $8.1 million was due to higher income before tax, net of higher exempt income.
At September 30, 2025, the Corporation had a net deferred tax asset amounting to $835.5 million, net of a valuation allowance of
$465.0 million. The net deferred tax asset related to the U.S. operations was $238.5 million, net of a valuation allowance of $386.9
million.
Upon an amendment to the Puerto Rico internal revenue code during the third quarter of 2025, the Corporation elected to treat
certain single members LLCs as disregarded entities, as allowed by this amendment, on its 2024 corporate income tax return filed
subsequent to the quarter end in October. It is expected that this election will lower our income tax expense by approximately $7.7
million during the fourth quarter of 2025.
Refer to Note 26 to the Consolidated Financial Statements for a reconciliation of the statutory income tax rate to the effective tax
rate and additional information on the income tax expense and deferred tax asset balances.
REPORTABLE SEGMENT RESULTS
The Corporation’s reportable segments for managerial reporting purposes consist of Banco Popular de Puerto Rico and Popular
U.S. A Corporate group has also been defined to support the reportable segments.
For a description of the Corporation’s reportable segments, including additional financial information and the underlying
management accounting process, refer to Note 28 to the Consolidated Financial Statements.
The corporate group reported a net income of $4.6 million for the quarter ended September 30, 2025, compared with a net income
of $0.5 million for the same quarter of the previous year, mainly due to higher income from equity method investments. For the nine
months ended September 30, 2025, the corporate group reported net income of $4.3 million, compared to a net loss of $21.1 million
for the same period of the previous year. The loss in 2024 was mainly attributable to the expense related to the $22.9 million
adjustment recorded in the first quarter of 2024 to recognize the tax impact associated with prior period intercompany distributions
and the additional $6.5 million expense for the tax impact of intercompany distributions paid during the first quarter of 2024. A
positive adjustment of $3.9 million was recorded during the second quarter of 2025, resulting from reimbursements received from
the IRS related to interest paid for these intercompany distributions. There were no intercompany distributions between the U.S.
subsidiaries and the bank holding companies during 2025. Higher income from equity method investments and lower expenses,
driven by professional services, also contributed to the positive variance for the nine months, partially offset by lower income from
money market investments due to a decrease in rates.
Highlights on the earnings results for the reportable segments are discussed below:
Banco Popular de Puerto Rico
The Banco Popular de Puerto Rico reportable segment’s net income amounted to $189.0 million for the quarter ended September
30, 2025, compared with a net income of $125.8 million for the same quarter of the previous year. The factors that contributed to the
variance in the financial results included the following:
net interest income of $550.7 million was higher by $62.7 million primarily driven by lower interest expense on deposits,
mainly from the re-pricing of P.R. public funds which are market-linked, higher income from U.S. Treasury securities with
higher yields and higher income from the loan portfolio driven by loan growth, partially offset by lower income from money
market investments due to decline in short-term market rates. The net interest margin for the quarter ended September
30, 2025 was 3.71%, an increase of 30 basis points, compared to 3.41% for the same quarter in the previous year. The
increase in the margin was mainly impacted by lower deposit costs and higher yield from investment securities, as well
loan growth, partially offset by lower rates on money market investments;
the provision for loan losses of $72.7 million was lower by $4.5 million mainly driven by lower reserves for the consumer
loan portfolios due to improvements in credit quality, partially offset by a higher provision in the commercial portfolio,
mainly attributable to reserves for two unrelated exposures with an aggregate balance of 188.4 million, which entered into
NPL status during the third quarter of 2025;
higher non-interest income by $1.6 million mainly due to higher service fees by $2.7 million mainly due to higher debit and
credit fees due to higher volume of transactions and higher assets under management, the income of $5.3 million related
to a retroactive charge billed to a tenant for energy supplied in prior years, partially offset by lower daily car rental revenue
by $5.0 million and gains from the sale of car rental units by $1.4 million, associated with the car rental business sold in
the fourth quarter of 2024;
higher operating expenses by $9.2 million mostly due to higher personnel costs by $21.0 million, mainly due to the profit-
sharing expense accrual and other performance-related incentives, and higher processing and transactional fees
expenses by $4.0 million, offset by lower operational losses by $6.2 million, mainly related to mortgage servicing, lower
occupancy expense by $4.3 million driven by a favorable reassessment of the real property tax estimate for certain
properties in Puerto Rico, and lower equipment expenses by $3.7 million mainly related to the daily car rental business
sold in the fourth quarter of 2024; and
lower income tax expense by $4.0 million due mainly to higher exempt income.
For the nine months ended September 30, 2025, the BPPR segment recorded net income of $539.5 million compared to a net
income of $404.3 million for the same period of the previous year. The factors that contributed to the variance in the financial results
included the following:
net interest income of $1.6 billion was higher by $161.5 million primarily driven by lower interest expense on deposits,
mainly from the re-pricing of P.R. public funds, higher income from investment securities, mainly U.S. Treasury securities,
and higher income from loans due to portfolio growth, partially offset by lower income from money market investments
reflecting the decline in short-term market rates. The net interest margin for the nine months ending September 30, 2025,
was 3.66%, 28 basis points higher when compared with 3.38% for the same period of the previous year. The increase in
the margin was mainly impacted by lower cost of deposits, mainly P.R. public deposits, higher yield from investment
securities and loan growth, partially offset by lower rates from money market investments and lower balances as funds
are deployed for loan growth and purchasing U.S. Treasury securities;
the provision for loan losses of $168.6 million was lower by $18.2 million mainly attributable to improvement in credit
quality for the credit cards portfolios, lower balance of personal loans and lower reserves in the leases portfolio, partially
offset by an increase in the provision expense for the mortgage portfolio, driven by lower net recoveries, changes in
macroeconomic forecasts, and changes in credit quality;
lower non-interest income by $13.3 million mainly due to lower daily car rental revenue by $14.9 million and gains from
the sale of car rental units by $7.7 million associated with the car rental business sold in the fourth quarter of 2024,
partially offset by the above mentioned retroactive income of $5.3 million, higher service fees by $4.1 million due to credit
and debit card income, from higher volume of transactions and, higher investment management fees and higher charges
on deposit accounts by $3.3 million mainly due to non-balance compensation in commercial deposits;
higher operating expenses by $28.3 million mostly due to higher personnel costs by $38.3 million, including profit sharing
expense by $21.2 million and higher salaries expense by $15.5 million due to annual merit increases and a higher
headcount, higher regulatory examination fees, municipal license tax and higher technology expenses, partially offset by
lower equipment expenses related to the daily rental business sold and lower FDIC expense due to the FDIC Special
Assessment recorded in 2024; and
higher income tax expense by $4.0 million mainly due to higher income before tax, net of higher tax exempt income.
Popular U.S.
For the quarter ended September 30, 2025, the reportable segment of Popular U.S. reported a net income of $17.8 million,
compared with a net income of $28.8 million for the same quarter of the previous year. The factors that contributed to the variance in
the financial results included the following:
net interest income of $105.2 million, higher by $12.1 million due to higher income from loans by $16.5 million, mainly
from growth in the commercial and construction portfolios, and lower cost of deposits by $9.3 million due to the repricing
of high-cost deposits, partially offset by lower income from money market investments due to lower average balances and
lower yields reflecting the decrease in short-term rates. The net interest margin for the quarter ended September 30, 2025
was 2.94% compared to 2.73% for the same quarter in the previous year driven by lower cost of deposits;
the provision for loan losses was $1.9 million, reflecting a higher provision for the commercial portfolio, offset by lower
provision for the consumer portfolio, compared to a release of $6.1 million in 2024, which was mainly related to
improvements in commercial credit quality;
higher operating expenses by $19.0 million, reflecting the goodwill impairment charge related to our U.S. based
equipment leasing subsidiary of $13.0 million recorded during the third quarter of 2025, higher personnel costs driven by
incentives and profit sharing; and higher occupancy expense; and lower income tax expense by $3.7 million due to lower income before tax.
For the nine months ended September 30, 2025, the reportable segment of Popular U.S. recorded net income of $55.2 million,
compared with net income of $53.6 million for the same period of the previous year. The factors that contributed to the variance in
the financial results included the following:
higher net interest income by $36.5 million due to higher income from the loans portfolio mainly related to growth in the
commercial and construction portfolios and lower interest expense from deposits, due to the repricing of high-cost
deposits mentioned above, partially offset by lower income from money market investments due to decline in short-term
market rates. The net interest margin for the nine months ended September 30, 2025 was 2.87% compared to 2.64% for
the same period of the previous year driven by lower cost of deposits;
the provision for loan losses of $20.8 million was higher by $18.2 million driven by higher qualitative reserves and
changes in credit quality for the commercial real estate portfolio, partially offset by lower reserves for the consumer loans;
higher operating expenses by $17.4 million reflecting the goodwill impairment charge related to our U.S. based equipment
leasing subsidiary of $13.0 million recorded in 2025; and higher personnel costs and consulting fees; offset by lower FDIC
expense due to FDIC Special Assessment recorded in 2024 and lower professional fees; and
higher income tax expense by $0.8 million due to higher income before tax.
STATEMENT OF FINANCIAL CONDITION ANALYSIS
Assets
The Corporation’s total assets were $75.1 billion at September 30, 2025, compared to $73.0 billion at December 31, 2024. The
variance in total assets of $2.1 billion was driven by an increase in AFS securities and loan growth across most portfolios at both
BPPR and PB segments, partially offset by a decrease in money market investments, HTM securities, and other assets. Refer to the
Consolidated Statements of Financial Condition included in this report and to the following narrative for additional information.
Money market investments and investment securities
Money market investments decreased by $1.6 billion as of September 30, 2025, when compared to December 31, 2024, driven by
funds used for loan growth and to purchase U.S. Treasury securities. AFS securities increased $2.4 billion, mainly due to investment
in U.S. Treasury securities and the decrease in the unrealized losses of AFS securities of $338.6 million, partially offset by
maturities and principal paydowns. HTM securities decreased by $324.9 million driven by maturities and principal paydowns,
partially offset by the amortization of $138.7 million of the discount related to U.S. Treasury securities previously reclassified from
the AFS to HTM. Refer to Note 5 and to Note 6 to the Consolidated Financial Statements for additional information with respect to
the Corporation’s debt securities available-for-sale and held-to-maturity.
Loans
Refer to Table 6 for a breakdown of the Corporation’s loan portfolio. Also, refer to Note 7 in the Consolidated Financial Statements
for detailed information about the Corporation’s loan portfolio composition and loan purchases and sales.
Loans held-in-portfolio increased by $1.6 billion to $38.7 billion at September 30, 2025, compared to December 31, 2024. In the
BPPR segment loan balances increased by $982.8 million across most portfolios, most notably in the commercial, construction,
mortgage, auto loans and leasing portfolios. Commercial loans included the origination of a $265.0 million commercial loan during
the second quarter of 2025, which represents the Corporation’s portion of a $425.0 million issuance in which BPPR acted as the
lead bank and administrative agent. Origination activity supported the growth in the mortgage, auto loans, and leasing portfolios,
despite the uncertainty about the economic outlook which may continue to have an impact on customer behavior. The PB segment
also increased by $596.7 million, mainly driven by commercial and construction lending.
At September 30, 2025, the Corporation’s loans to non-depository financial institutions (‘’NDFIs’’) amounted to $443.6 million, an
increase of $48.8 million, compared to December 31, 2024. The increase was mainly related to a loan to an insurance company in
Puerto Rico for general corporate purposes, offset by a decrease in other exposures, mainly to consumer intermediaries. At
September 30, 2025, the Corporation’s exposure to NDFIs was composed of approximately $272.4 million to insurance companies
for general corporate purposes unrelated to lending activities, $85.6 million related to mortgage credit intermediaries, and $85.6
million to consumer and commercial credit intermediaries. All loans to NDFIs are current in their contractual payments and carry a
‘pass’ rating.
Table 6 - Loans Ending Balances
(In thousands)
September 30, 2025
December 31, 2024
Variance
Loans held-in-portfolio:
Commercial
Commercial multi-family
2,489,589
2,399,620
89,969
Commercial real estate non-owner occupied
5,462,580
5,363,235
99,345
Commercial real estate owner occupied
3,090,724
3,157,746
(67,022)
Commercial and industrial
8,245,639
7,741,562
504,077
Total Commercial
19,288,532
18,662,163
626,369
Construction
1,604,612
1,263,792
340,820
Mortgage
8,558,408
8,114,183
444,225
Leasing
1,998,651
1,925,405
73,246
Consumer
Credit cards
1,225,567
1,218,079
7,488
Home equity lines of credit
78,890
73,571
5,319
Personal
1,900,325
1,855,244
45,081
Auto
3,850,953
3,823,437
27,516
Other
181,220
171,778
9,442
Total Consumer
7,236,955
7,142,109
94,846
Total loans held-in -portfolio
38,687,158
37,107,652
1,579,506
Loans held-for-sale:
Mortgage
7,783
5,423
2,360
Total loans held-for-sale
7,783
5,423
2,360
Total loans
38,694,941
37,113,075
1,581,866
Other assets
Other assets amounted to $1.7 billion at September 30, 2025, a decrease of $52.9 million when compared to $1.8 billion at
December 31, 2024. The variance was mainly driven by a decrease in net deferred tax assets of $89.0 million due to a positive
variance in the valuation of AFS securities, a reduction in unsettled trade receivables of $13.8 million related to proceeds from
maturities of U.S. Treasury securities, and lower principal, interest and escrow servicing advances of $12.6 million, partially offset by
an increase in capitalized software costs of $45.8 million mainly related to technology modernization, higher prepaid taxes of $11.5
million, and higher trades receivable from brokers and counterparties of $9.1 million. Refer to Note 10 to the Consolidated Financial
Statements for a breakdown of the principal categories that comprise the caption of “Other Assets” in the Consolidated Statements
of Financial Condition at September 30, 2025 and December 31, 2024.
Liabilities
The Corporation’s total liabilities were $69.0 billion at September 30, 2025, an increase of $1.5 billion, when compared to December
31, 2024. The following is a discussion of the significant changes in liabilities.
Deposits and Borrowings
Total Deposits
The Corporation’s deposits totaled $66.5 billion as of September 30, 2025, compared to $64.9 billion as of December 31, 2024.
Ending deposit balances increased by $1.6 billion, while average quarterly balances grew by $2.9 billion. The average deposit
balance, excluding P.R. public deposits, increased by $1.5 billion. Non-interest-bearing deposits remained flat when compared to
December 31, 2024, demonstrating the impact of the Corporation’s continued focus on deposit retention strategies. At the end of the
third quarter of 2025, Puerto Rico public deposits were $20.1 billion, an increase of $612.7 million when compared to December 31,
2024. P.R public deposits represent 30% of total deposits and are expected to continue to range in the short term between $18
billion and $20 billion. However, the rate at which public deposit balances may change is uncertain and difficult to predict. The
amount and timing of any such change is likely to be impacted by, for example, the level of federal assistance and speed at which it
is distributed, the use of local funds to cover federal assistance programs during the U.S. government shutdown, the financial
condition, liquidity and cash management practices of the Puerto Rico Government and its instrumentalities, and the implementation
of fiscal and debt adjustment plans approved pursuant to PROMESA or other actions mandated by the Fiscal Oversight and
Management Board for Puerto Rico (the “Oversight Board”). Additionally, the Trump Administration is conducting a review of federal
funding, which could entail a reduction in federal funding available for Puerto Rico. P.R public deposits costs are generally indexed
to changes in short-term market rates with a one-quarter lag, in accordance with contractual terms. As a result, these deposits’ costs
have typically lagged variable asset repricing. These deposits require that the bank pledge high credit quality securities as collateral;
therefore, liquidity risks arising from deposit outflows are lower.
At BPPR, excluding Puerto Rico public deposits, ending deposits increased by $178 million, while at PB segment ending deposit
balances increased by $616 million, net of intercompany activity.
The volume and cost of P.R. public deposits and the proportion of high-cost deposits in the U.S, directly impact the balance and mix
of earning assets and therefore represent a key factor in the Corporation’s ability to expand its net interest margin.
Refer to Table 7 for a breakdown of the Corporation’s deposits at September 30, 2025 and December 31, 2024.
Table 7 - Deposits Ending Balances
(In thousands)
September 30, 2025
December 31, 2024
Variance
Deposits excluding P.R. public deposits:
Demand deposits
14,874,026
15,139,555
(265,529)
Savings, NOW and money market deposits (non-brokered)
21,739,958
21,177,506
562,452
Savings, NOW and money market deposits (brokered)
883,471
736,225
147,246
Time deposits (non-brokered)
8,014,080
7,476,924
537,156
Time deposits (brokered CDs)
925,761
890,704
35,057
Sub-total deposits excluding P.R. public deposits
46,437,296
45,420,914
1,016,382
P.R. public deposits:
Demand deposits
[1]
12,487,246
11,730,273
756,973
Savings, NOW and money market deposits (non-brokered)
6,907,309
7,087,904
(180,595)
Time deposits (non-brokered)
681,553
645,254
36,299
Sub-total P.R. public deposits
20,076,108
19,463,431
612,677
Total deposits
66,513,404
64,884,345
1,629,059
[1] Includes interest bearing demand deposits.
Borrowings
The Corporation’s borrowings totaled $1.2 billion at September 30, 2025 an increase of $70.7 million when compared to December
31, 2024. The increase was mainly related to higher FHLB advances by $67.6 million, mainly at PB. Refer to Note 13 to the
Consolidated Financial Statements for detailed information on the Corporation’s borrowings. Also, refer to the Liquidity section in
this MD&A for additional information on the Corporation’s funding sources.
Stockholders’ Equity
Stockholders’ equity totaled $6.1 billion at September 30, 2025, an increase of $502.6 million when compared to December 31,
2024. The increase was principally due to net income for the nine months ended September 30, 2025 of $599.3 million, coupled with
the after-tax effect of the decrease in net unrealized losses in the portfolio of AFS securities of $283.4 million and the amortization of
unrealized losses from securities previously reclassified to HTM of $
111
.0 million, partially offset by an increase in treasury stock of
$346.0 million, mainly due to common stock repurchases and the common and preferred dividends declared of $147.7 million. Refer
to the Consolidated Statements of Financial Condition, Comprehensive Income and Changes in Stockholders’ Equity for information
on the composition of stockholders’ equity.
During the quarter and nine months ended September 30, 2025, Popular repurchased 1,000,862 shares of common stock for
$119.4 million at an average price of $119.33 per share and 3,407,821 shares of common stock for $353.7 million at an average
price of $103.78 per share respectively, as part of the 2024 and 2025 common stock repurchase programs previously announced.
As of September 30, 2025, $429.0 million remained available for stock repurchase under the active repurchase authorization.
During the third quarter of 2025, the Corporation declared a common stock dividend of $0.75 per share, an increase from the
common stock dividend of $0.70 per share.
The composition of the Corporation’s financing to total assets at September 30, 2025 and December 31, 2024 is included in Table 8.
Table 8 - Financing to Total Assets
September 30,
December 31,
% (decrease) increase
% of total assets
(Dollars in millions)
2025
2024
from 2024 to 2025
2025
2024
Non-interest-bearing core deposits
14,874
15,139
(1.8)
19.8
20.7
Interest-bearing core deposits
46,020
44,622
3.1
61.3
61.1
Interest-bearing other deposits
5,619
5,123
9.7
7.5
7.0
Repurchase agreements
57
55
3.6
0.1
0.1
Other short-term borrowings
400
225
77.8
0.5
0.3
Notes payable
790
896
(11.8)
1.1
1.2
Other liabilities
1,190
1,372
(13.3)
1.6
1.9
Stockholders’ equity
6,116
5,613
9.0
8.1
7.7
CAPITAL
Regulatory Capital
The Corporation, BPPR and PB are subject to regulatory capital requirements established by the Federal Reserve Board. The risk-
based capital standards applicable to the Corporation, BPPR and PB (“Basel III capital rules”) are based on the final capital
framework for strengthening international capital standards, known as Basel III, of the Basel Committee on Banking Supervision. As
of September 30, 2025, the Corporation’s, BPPR’s and PB’s capital ratios continue to exceed the minimum requirements for being
“well-capitalized”.
The risk-based capital ratios presented in Table 9, which include common equity tier 1, Tier 1 capital, total capital and leverage
capital as of September 30, 2025 and December 31, 2024.
Table 9 - Capital Adequacy Data
(Dollars in thousands)
September 30, 2025
December 31, 2024
Common equity tier 1 capital:
Common stockholders' equity - U.S. GAAP basis
6,093,529
5,590,923
CECL transitional amount
[1]
42,375
AOCI related adjustments due to opt-out election
1,191,224
1,589,875
Goodwill, net of associated deferred tax liability (DTL)
(641,809)
(657,181)
Intangible assets, net of associated DTLs
(5,460)
(6,826)
Deferred tax assets and other deductions
(223,648)
(296,374)
Common equity tier 1 capital
6,413,836
6,262,792
Additional tier 1 capital:
Preferred stock
22,143
22,143
Additional tier 1 capital
22,143
22,143
Tier 1 capital
6,435,979
6,284,935
Tier 2 capital:
Trust preferred securities subject to phase in as tier 2
192,674
192,674
Other inclusions (deductions), net
511,230
490,594
Tier 2 capital
703,904
683,268
Total risk-based capital
7,139,883
6,968,203
Minimum total capital requirement to be well capitalized
4,062,200
3,907,346
Excess total capital over minimum well capitalized
3,077,683
3,060,857
Total risk-weighted assets
40,621,998
39,073,462
Total assets for leverage ratio
75,897,616
72,593,464
Risk-based capital ratios:
Common equity tier 1 capital
15.79
16.03
Tier 1 capital
15.84
16.08
Total capital
17.58
17.83
Tier 1 leverage
8.48
8.66
[1] The CECL transitional amount includes the impact of Popular's adoption of the new CECL accounting standard on January 1, 2020.
The Basel III capital rules provide that a depository institution is deemed to be well capitalized if it maintains a leverage ratio of at
least 5%, a common equity Tier 1 ratio of at least 6.5%, a Tier 1 capital ratio of at least 8% and a total risk-based ratio of at least
10%. The Corporation, BPPR and PB leverage ratio, common equity Tier 1 ratio and Tier 1 capital ratio, respectively as of
September 30, 2025, continue to exceed the minimum requirements for being “well-capitalized” under the Basel III capital rules.
Pursuant to the adoption of the CECL accounting standard on January 1, 2020, the Corporation elected to use the five-year
transition period option as provided in the final interim regulatory capital rules effective March 31, 2020. The five-year transition
period provision delayed for two years the estimated impact of CECL on regulatory capital, followed by a three-year transition period
to phase out the aggregate amount of the capital benefit provided during the initial two-year delay. During the first quarter of 2025,
the Corporation phased-in all the cumulative CECL deferral over the three-year transition period.
The decrease in the common equity Tier I capital ratio, Tier I capital ratio, total capital ratio, and leverage ratio as of September 30,
2025 as compared to December 31, 2024 was mainly due to the repurchase of common stock, common stock dividends, and higher
risk weighted assets driven by the increase in loans held-in-portfolio and higher non-performing loans held-in-portfolio, partially
offset by the nine-month period’s earnings.
Reconciliation to Tangible Common Equity and Tangible Assets
Table 10 provides a reconciliation of total stockholders’ equity to tangible common equity and total assets to tangible assets as of
September 30, 2025, and December 31, 2024.
Table 10 - Reconciliation of Tangible Common Equity and Tangible Assets
(In thousands, except share or per share information)
September 30, 2025
December 31, 2024
Total stockholders’ equity
6,115,672
5,613,066
Less: Preferred stock
(22,143)
(22,143)
Less: Goodwill
(789,954)
(802,954)
Less: Other intangibles
(5,460)
(6,826)
Total tangible common equity
5,298,115
4,781,143
Total assets
75,065,798
73,045,383
Less: Goodwill
(789,954)
(802,954)
Less: Other intangibles
(5,460)
(6,826)
Total tangible assets
74,270,384
72,235,603
Tangible common equity to tangible assets
7.13
6.62
Common shares outstanding at end of period
66,959,866
70,141,291
Tangible book value per common share
79.12
68.16
Quarterly average
Total stockholders’ equity [1]
6,943,541
6,620,766
Average unrealized (gains) losses on AFS securities transferred to HTM
296,934
505,791
Adjusted total stockholder's equity
7,240,475
7,126,557
Less: Preferred Stock
(22,143)
(22,143)
Less: Goodwill
(802,812)
(804,411)
Less: Other intangibles
(5,714)
(7,288)
Total tangible common equity
6,409,806
6,292,715
Return on average tangible common equity
13.06
11.22
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale.
RISK MANAGEMENT
Market / Interest Rate Risk
The Corporation’s assets that are mainly subject to market valuation risk are debt securities classified as available-for-sale. Refer to
Notes 5 and 6 to the Consolidated Financial Statements for further information on the debt securities available-for-sale and held-to-
maturity portfolios. Debt securities classified as available-for-sale and held-to-maturity amounted to $20.7 billion and $7.4 billion,
respectively, as of September 30, 2025. Other assets subject to market risk include mortgage servicing rights ("MSRs") with a fair
value of $99.5 million as of September 30, 2025.
Interest Rate Risk (“IRR”)
The Corporation’s net interest income is subject to various categories of interest rate risk, including repricing, basis, yield curve and
option risks. In managing interest rate risk, management may alter the mix of floating and fixed rate assets and liabilities, change
pricing schedules, adjust maturities through sales and purchases of investment securities, and enter into derivative contracts,
among other alternatives.
Management utilizes various tools to assess IRR, including Net Interest Income (“NII”) simulation modeling, static gap analysis, and
Economic Value of Equity (“EVE”) to monitor the risk arising from the dynamic characteristics of assets and liabilities subject to IRR.
The three methodologies complement each other and are used jointly in the evaluation of the Corporation’s IRR. NII simulation
modeling, by legal entity and on a consolidated basis, is prepared for a five-year period, which in conjunction with the EVE analysis,
provides management a better view of long-term IRR.
The Corporation processes NII simulations under interest rate scenarios in which the yield curve is assumed to rise and decline by
the same magnitude (parallel shifts). The rate scenarios considered in these market risk simulations include instantaneous parallel
changes of -100, -200, +100, and +200 basis points during the succeeding twelve-month period. Assumptions included in these
analyses include that the balance sheet remains flat, relative levels of market interest rates across all yield curve points and
indexes, interest rate spreads, loan prepayments and deposit elasticity. Thus, they should not be relied upon as indicative of actual
results and do not contemplate actions that management may engage in as a response to future changes in interest rates.
Additionally, the Corporation is also subject to the risk inherent in the use of different rate indexes for the repricing of assets and
liabilities, as well the risk of pricing lags due to contractual or timing differences between the market and management response to
changes in the rate environment. These forward-looking computations are management’s best estimate based on known and
available information and actual results may differ.
The following table presents the results of the simulations at September 30, 2025 and December 31, 2024, assuming a static
balance sheet and parallel changes over flat spot rates over a one-year time horizon:
Table 11 - Net Interest Income Sensitivity (One Year Projection)
September 30, 2025
December 31, 2024
(Dollars in thousands)
Amount Change
Percent Change
Amount Change
Percent Change
Change in interest rate
+200 basis points
(10,760)
(0.41)
44,747
1.78
+100 basis points
(6,125)
(0.23)
22,917
0.91
-100 basis points
2,953
0.11
9,157
0.36
-200 basis points
17,319
0.66
588
0.02
As of September 30, 2025, NII simulations showed a shift in the Corporation’s sensitivity position to become liability sensitive.
Compared to the results as of December 31, 2024, the variation in sensitivity and the resulting profile was mainly due to an increase
in asset duration driven by the extension of U.S. Treasury Notes and a decline in U.S. Treasury Bills and excess reserves at the
FRB as part of a decision to reduce sensitivity to declining rate scenarios. In rising rate scenarios, Popular’s net interest income
would decrease due to the lower volume of short-term assets as a result of the investment portfolio extension strategy combined
with higher deposits costs due to BPPR’s large proportion of market-linked Puerto Rico public sector deposits, this would be partially
offset by variable rate loan repricing and intermediate maturity assets coming due within one year. Changes in the balance sheet
during the quarter that contributed to the variance in sensitivity include the purchase of $2.5 billion in U.S. Treasury Notes with an
average maturity of approximately 1.4 years, in addition to higher fixed rate loan balances.
The Corporation’s loan and investment portfolios are subject to prepayment risk. Prepayment risk also could have a significant
impact on the duration of mortgage-backed securities and collateralized mortgage obligations.
Trading
The Corporation engages in trading activities in the ordinary course of business at its subsidiaries, BPPR and Popular Securities.
Popular Securities’ trading activities consist primarily of market-making activities to meet expected customers’ needs related to its
retail brokerage business, and purchases and sales of U.S. Government and government sponsored securities with the objective of
realizing gains from expected short-term price movements. BPPR’s trading activities consist primarily of holding U.S. Government
sponsored mortgage-backed securities and economic hedges of the related market risk with “TBA” (to-be-announced) market
transactions. In addition, BPPR uses forward contracts or TBAs that have characteristics similar to that of the forecasted security
and its conversion timeline to hedge its securitization pipeline.
At September 30, 2025, the Corporation held trading securities with a fair value of $33.1 million, representing 0.04% of the
Corporation’s total assets, compared with $32.8 million and 0.05%, respectively, at December 31, 2024. The trading portfolio
consists principally of investment grade securities such as mortgage-backed securities of $24.3 million with a weighted average
yield of 5.23% and U.S. Treasuries of $8.0 million with a weighted average yield of 2.57% at September 30, 2025 and $29.1 million
with a yield of 5.54% and $2.8 million with a yield of 3.28%, respectively, as of December 31, 2024.
The Corporation’s trading activities are limited by internal policies. For each of the two subsidiaries, the market risk assumed under
trading activities is measured by the 5-day net value-at-risk (“VAR”), with a confidence level of 99%. The VAR measures the
maximum estimated loss that may occur over a 5-day holding period, given a 99% probability.
The Corporation’s trading portfolio had a 5-day VAR of $0.4 million for the last week of September 2025. VAR models include
assumptions and estimates thus actual results could differ from the outputs from these models and assumptions. Back-testing is
performed on model results to compare actual results against maximum estimated losses, in order to evaluate model and
assumptions accuracy.
In the opinion of management, the size and composition of the trading portfolio does not represent a significant source of market risk
for the Corporation.
Liquidity
Liquidity Risk Management Process
The Corporation has adopted policies and limits to monitor the Corporation’s liquidity position and that of its banking subsidiaries.
Refer to the Enterprise Risk Management section of Management’s Discussion and Analysis included in the 2024 Form 10-K for
information on the framework in place to monitor, review, and approve policies to measure, limit and manage funding activities and
strategies impacting liquidity risk. Additionally, contingency funding plans are used to model various stress events of different
magnitudes that affect different time horizons, to assist management in evaluating the size of the liquidity buffers needed if those
events occur. However, such models may not predict accurately how the market and customers might react to every event and are
dependent on many assumptions. The objective of effective liquidity management is to ensure that the Corporation has sufficient
liquidity to meet all its financial obligations, finance expected future growth, fund planned capital distributions and maintain a
reasonable safety margin for cash needs under both normal and stressed market conditions.
Sources of Liquidity
Deposits, including customer deposits, brokered deposits and public funds deposits, continue to be the most significant source of
funds for the Corporation, representing 89% of funding of the Corporation’s total assets at September 30, 2025 and December 31,
2024. The ratio of total ending loans to deposits was 58% and 57% at September 30, 2025 and December 31, 2024, respectively.
In addition to traditional deposits, the Corporation maintains borrowing arrangements, which amounted to $1.2 billion in outstanding
balances at September 30, 2025 (December 31, 2024 - $1.2 billion). A detailed description of the Corporation’s borrowings,
including their terms, is included in Note 13 to the Consolidated Financial Statements. Also, the Consolidated Statements of Cash
Flows in the accompanying Consolidated Financial Statements provide information on the Corporation’s cash inflows and outflows.
The following sections provide further information on the Corporation’s major funding activities and needs, as well as the risks
involved in these activities.
Banking Subsidiaries
Primary sources of funding for the Corporation’s banking subsidiaries (BPPR and PB or, collectively, “the banking subsidiaries”)
include retail, commercial and public sector deposits, brokered deposits, unpledged investment securities, mortgage loan
securitization and, to a lesser extent, loan sales. In addition, the Corporation maintains borrowing facilities with the FHLB and at the
discount window of the Federal Reserve Bank of New York (the “FRB”) and has a considerable amount of collateral pledged that
can be used to raise funds under these facilities.
During the second quarter of 2025, BPPR was able to increase its available liquidity by approximately $2.9 billion after the merger of
Popular Auto, LLC with and into BPPR, effective on May 1, 2025, that allowed BPPR to pledge auto loans and leases as collateral
under the federal reserve’s discount window. At September 30, 2025, the Corporation’s available liquidity increased to $25.8 billion
from $21.6 billion on December 31, 2024. During the third quarter of 2025, the Corporation had no material incremental use of its
available liquidity sources. The liquidity sources of the Corporation at September 30, 2025 are presented in Table 12 below:
Table 12 - Liquidity Sources
September 30, 2025
December 31, 2024
(In thousands)
BPPR
Popular U.S.
Total
BPPR
Popular U.S.
Total
Unpledged securities and unused funding
sources:
Money market (excess funds at the
Federal Reserve Bank)
3,719,430
1,024,811
4,744,241
4,882,358
1,488,857
6,371,215
Unpledged securities
4,658,303
1,010,386
5,668,689
3,806,066
522,869
4,328,935
FHLB borrowing capacity
3,134,633
1,023,693
4,158,326
2,777,090
1,058,921
3,836,011
Discount window of the Federal Reserve
Bank borrowing capacity
7,833,348
3,375,793
11,209,141
4,839,388
2,178,646
7,018,034
Total available liquidity
19,345,714
6,434,683
25,780,397
16,304,902
5,249,293
21,554,195
Refer to Note 13 to the Consolidated Financial Statements for additional information of the Corporation’s borrowing facilities
available through its banking subsidiaries.
The principal uses of funds for the banking subsidiaries include loan originations, investment portfolio purchases, loan purchases
and repurchases, repayment of outstanding obligations (including deposits), advances on certain serviced portfolios and operational
expenses. Also, the banking subsidiaries assume liquidity risk related to collateral posting requirements for certain activities mainly
in connection with contractual commitments, recourse provisions, servicing advances, derivatives and credit card licensing
agreements.
The banking subsidiaries maintain sufficient funding capacity to address large increases in funding requirements such as deposit
outflows. The Corporation has established liquidity guidelines that require the banking subsidiaries to have sufficient liquidity to
cover all short-term borrowings and a portion of deposits.
Deposits are a key source of funding. Refer to Table 7 for a breakdown of deposits by major types. Core deposits are generated
from a large base of consumer, corporate and public sector customers. Core deposits include certificates of deposit under $250,000,
all interest-bearing transactional deposit accounts, non-interest-bearing deposits, and savings deposits. Core deposits exclude
brokered deposits and certificates of deposit over $250,000. Core deposits, excluding P.R. public funds, which are fully
collateralized, have historically provided the Corporation with a sizable source of relatively stable and low-cost funds. P.R. public
funds, while linked to market interest rates, provide a stable source of funding with an attractive earning spread. As of September
30, 2025, total Puerto Rico public sector deposits were $20.1 billion, compared to $19.5 billion at December 31, 2024.
Core deposits represent 92% of total deposits at $60.9 billion, as of September 30, 2025, compared with 92% at $59.9 billion as of
December 31, 2024. Core deposits financed 85% of the Corporation’s earning assets at September 30, 2025, compared to 86% at
December 31, 2024.
The distribution by maturity of certificates of deposit with denominations of $250,000 and over at September 30, 2025 is presented
in the table that follows:
Table 13 - Distribution by Maturity of Certificates of Deposit of $250,000 and Over
(In thousands)
3 months or less
2,374,866
Over 3 to 12 months
1,102,624
Over 1 year to 3 years
278,729
Over 3 years
147,806
Total
3,904,025
The Corporation had $1.8 billion in brokered deposits at September 30, 2025, which financed approximately 2% of its total assets
(December 31, 2024 - $1.6 billion and 2%, respectively).
As of September 30, 2025, the banking subsidiaries had sufficient current and projected liquidity sources to meet their anticipated
cash flow obligations, as well as special needs and off-balance sheet commitments, in the ordinary course of business and have
sufficient liquidity resources to address a stress event. Although the banking subsidiaries have historically been able to replace
maturing deposits and advances, no assurance can be given that they would be able to replace those funds in the future if the
Corporation’s financial condition or general market conditions were to deteriorate. The Corporation’s financial flexibility would be
severely constrained if the banking subsidiaries are unable to maintain access to funding or if adequate funding is not available to
accommodate future financing needs at acceptable interest rates. The banking subsidiaries also are required to deposit cash or
qualifying securities to meet margin requirements on repurchase agreements, deposit agreements and other collateralized
borrowing facilities. To the extent that the value of securities previously pledged as collateral declines because of market changes,
the Corporation will be required to deposit additional cash or securities to meet its margin or collateral requirements and would need
to rely more heavily on alternative funding sources. In these scenarios, the Corporation’s financial flexibility and ability to grow
revenues may not increase proportionately to cover costs and profitability would be adversely affected.
The Corporation considers balances in excess of $250,000 to have a higher potential liquidity risk. Table 14 reflects the aggregate
balance in deposit accounts in excess of $250,000, including collateralized public funds and deposits outside of the U.S. and its
territories. Collateralized public funds, as presented in Table 14, represent public deposit balances from governmental entities in the
U.S. and its territories, including Puerto Rico and the United States Virgin Islands, collateralized based on such jurisdictions’
applicable collateral requirements.
Table 14 - Deposits
30-Sep-25
Popular, Inc.
(Dollars in thousands)
BPPR
% of Total
Popular U.S.
% of Total
(Consolidated)
% of Total
Deposits:
Deposits balances under $250,000 [1]
23,610,775
43
8,523,789
70
32,134,564
48
Transactional deposits balances over
$250,000
8,203,843
15
2,096,865
17
10,300,708
16
Time deposits balances over $250,000
2,013,907
4
925,802
8
2,939,709
4
Uninsured foreign deposits
399,980
1
399,980
1
Collateralized public funds
20,422,015
37
316,428
3
20,738,443
31
Intercompany deposits
227,477
298,714
2
Total deposits
54,877,997
100
12,161,598
100
66,513,404
100
[1] Includes the first $250,000 in balances of transactional and time deposit accounts with balances in excess of $250,000.
31-Dec-24
Popular, Inc.
(Dollars in thousands)
BPPR
% of Total
Popular U.S.
% of Total
(Consolidated)
% of Total
Deposits
Deposits balances under $250,000 [1]
23,588,937
44
7,961,334
68
31,550,271
49
Transactional deposits balances over
$250,000
8,046,175
15
1,944,674
16
9,990,849
15
Time deposits balances over $250,000
1,991,934
4
813,424
7
2,805,358
4
Uninsured foreign deposits
450,068
1
450,068
1
Collateralized public funds
19,771,083
36
316,716
3
20,087,799
31
Intercompany deposits
205,839
667,839
6
Total deposits
54,054,036
100
11,703,987
100
64,884,345
100
[1] Includes the first $250,000 in balances of transactional and time deposit accounts with balances in excess of $250,000.
Bank Holding Companies
The principal sources of funding for the BHCs, which are Popular, Inc. (holding company only) and PNA, include cash on hand,
investment securities, dividends received from banking and non-banking subsidiaries, asset sales, credit facilities available from
affiliate banking subsidiaries and proceeds from potential securities offerings. Dividends from banking and non-banking subsidiaries
are subject to various regulatory limits and authorization requirements imposed by banking regulators, including the FED and the
NYDFS, that may limit the ability of those subsidiaries to act as a source of funding to the BHCs.
The principal uses of these funds include the repayment of debt, interest payments to holders of senior debt and junior subordinated
deferrable interest debentures (related to trust preferred securities), the payment of dividends to common stockholders, repurchases
of the Corporation’s securities and capitalizing its subsidiaries.
The outstanding balance of notes payable at the BHCs amounted to $595 million at September 30, 2025 and $594 million at
December 31, 2024.
The contractual maturities of the BHCs notes payable at September 30, 2025 are presented in Table 15.
Table 15 - Distribution of BHC's Notes Payable by Contractual Maturity
Year
(In thousands)
2028
396,249
Later years
198,393
Total
594,642
As of September 30, 2025, the BHCs had cash and money markets investments totaling $484 million and borrowing potential of
$165 million from its secured facility with BPPR. The BHCs’ liquidity position continues to be adequate with sufficient cash on hand,
investments and other sources of liquidity that are expected to be sufficient to meet all interest payments and dividend obligations
for the foreseeable future. Additionally, the Corporation’s latest quarterly paid dividend was $0.70 per share or approximately $47
million per quarter.
The BHCs have in the past borrowed in the corporate debt market primarily to finance their non-banking subsidiaries and refinance
debt obligations. These sources of funding are more costly given that two out of three principal credit rating agencies rate the
Corporation’s debt securities below “investment grade”. The Corporation has a shelf registration statement filed and effective with
the Securities and Exchange Commission, which permits the Corporation to issue an unspecified amount of debt or equity
securities.
Non-Banking Subsidiaries
The principal sources of funding for the non-banking subsidiaries include internally generated cash flows from operations, loan
sales, repurchase agreements, capital injections and borrowed funds from their direct parent companies or the holding companies.
The principal uses of funds for the non-banking subsidiaries include repayment of maturing debt, operational expenses and payment
of dividends to the BHCs.
Dividends
During the third quarter of 2025, the Corporation declared a quarterly common stock dividend of $0.75 per common share, an
increase from $0.70 per common share in the previous quarter. During the nine months ended September 30, 2025, the Corporation
declared cash dividends of $2.15 per common share outstanding ($146.6 million in the aggregate). The dividends for the
Corporation’s Series A preferred stock amounted to $1.1 million.
During the nine months ended September 30, 2025, the BHCs received dividends and distributions amounting to $350 million from
BPPR, $23 from Popular International Bank, Inc. (“PIBI”) and $22 million from its other non-banking subsidiaries. Dividends from
BPPR constitute Popular, Inc.’s primary source of liquidity. In addition, during the nine months ended September 30, 2025, PIBI, a
wholly owned subsidiary of Popular, Inc., received $20.0 million in cash dividends and $5.3 million in stock dividends from its
investment in BHD.
In addition to regulatory limits previously discussed, the ability of a bank subsidiary to up-stream dividends to its BHC could be
impacted by its financial performance and capital, including tangible and regulatory capital, thus potentially limiting the amount of
cash up streamed to the BHCs from the banking subsidiaries. This could, in turn, affect BHC’s ability to declare dividends on its
outstanding common and preferred stock, repurchase its securities or meet its debt obligations. At September 30, 2025, BPPR
could declare a dividend of up to approximately $237 million without prior approval of the Federal Reserve Board due to its retained
income, declared dividend activity and transfers to statutory reserves over the measurement period. In addition, pursuant to the FRB
requirements, PB may not declare or pay a dividend without the prior approval of the Federal Reserve Board and the NYSDFS.
Other Funding Sources and Capital
In addition to cash reserves held at the FRB that totaled $4.7 billion at September 30, 2025, the debt securities portfolio provides an
additional source of liquidity, which may be realized through either securities sales, collateralized borrowings or repurchase
agreements. The Corporation’s debt securities portfolio consists primarily of liquid U.S. government debt securities and U.S.
government sponsored agency mortgage-backed securities that can be used to raise funds in the repo markets. The availability of
repurchase agreements would be subject to having sufficient unpledged collateral available at the time the transactions are
consummated, in addition to overall liquidity and risk appetite of the various counterparties. Refer to Table 12 for details of the
Corporation’s unpledged debt securities and available credit facilities with the FHLB and the discount window of the Federal
Reserve Bank. A substantial portion of these debt securities could be used to raise financing in the U.S. money markets or from
secured lending sources, subject to changes in their fair market value and customary adjustments (haircuts).
Additional liquidity may be provided through loan maturities, prepayments and sales. The loan portfolio provides a source of
collateral to secure the available credit facilities with the FHLB and the discount window of the Federal Reserve Bank. The loan
portfolio can also be used to obtain funding in the capital markets. Mortgage loans and some types of consumer loans, have
secondary markets which the Corporation could use.
Off-Balance Sheet Arrangements and Other Commitments
In the ordinary course of business, the Corporation engages in financial transactions that are not recorded on the balance sheet or
may be recorded on the balance sheet in amounts that are different than the full contract or notional amount of the transaction. As a
provider of financial services, the Corporation routinely enters into commitments with off-balance sheet risk to meet the financial
needs of its customers. Refer to Note 18 to the Consolidated Financial Statements for information on the Corporation’s
commitments to extent credit and other non-credit commitments.
Other types of off-balance sheet arrangements that the Corporation enters in the ordinary course of business include derivatives,
operating leases and provision of guarantees, indemnifications, and representation and warranties. Refer to Note 17 to the
Consolidated Financial Statements for a detailed discussion related to the Corporation’s guarantees, indemnifications obligations,
and representation and warranties arrangements.
The Corporation monitors its cash requirements, including its contractual obligations and debt commitments.
Financial Information of Guarantor and Issuers of Registered Guaranteed Securities
The principal sources of funding for Popular, Inc. Holding Company (“PIHC”) and Popular North America, Inc. (“PNA”) have included
dividends received from their banking and non-banking subsidiaries subject to statutory provisions that limit dividends paid by the
banking subsidiary without regulatory approval, asset sales and proceeds from the issuance of debt and equity.
The Corporation ("PIHC") is the parent holding company of Popular North America (“PNA”) and operates financial services through
its subsidiaries. PNA, a wholly owned subsidiary of Popular, Inc., manages entities such as Equity One, Inc., and PB, including PB’s
subsidiaries: Popular Equipment Finance, LLC, Popular Insurance Agency, U.S.A., and E-LOAN, Inc.
PNA has issued junior subordinated debentures guaranteed by PIHC (the “obligor group”), purchased by statutory trusts established
by the Corporation using proceeds from trust preferred securities (“capital securities”) and common securities of the trusts.
PIHC guarantees the junior subordinated debentures issued by PNA. If PIHC fails to make interest payments on the debentures
held by the trust, the trust will not distribute payments on the capital securities. The guarantee ranks subordinate and junior in right
of payment to all other liabilities of PIHC and equally with all other PIHC-issued guarantees, allowing direct legal action against
PIHC without involving other entities.
Funding for PIHC and PNA includes dividends from subsidiaries, asset sales, and proceeds from debt and equity issuance.
Statutory provisions limit the dividends an insured depository institution can pay to its holding company without regulatory approval.
The summarized financial information below shows the combined financial position of the obligor group as of September 30, 2025,
and December 31, 2024, and the results of their operations for the nine-month periods ended September 30, 2025, and September
30, 2024. Excluded are investments and equity in earnings from subsidiaries and affiliates outside the obligor group.
Intercompany balances and transactions within the obligor group have been eliminated. Material amounts due from, due to, and
transactions with subsidiaries and affiliates are shown separately. Related party transactions are also presented separately.
Table 16 - Summarized Statement of Condition
(In thousands)
September 30, 2025
December 31, 2024
Assets
Cash and money market investments
484,141
634,809
Investment securities
37,618
35,150
Accounts receivables from non-obligor subsidiaries
14,541
14,602
Other loans (net of allowance for credit losses of $163 (2024 - $281))
24,486
25,381
Investment in equity method investees
5,265
5,279
Other assets
95,829
65,483
Total assets
661,880
780,704
Liabilities and Stockholders' equity
Accounts payable to non-obligor subsidiaries
5,839
12,163
Notes payable
594,642
593,571
Other liabilities
131,489
126,718
Stockholders' (deficit) equity
(70,090)
48,252
Total liabilities and stockholders' equity
661,880
780,704
Table 17 - Summarized Statement of Operations
For the period ended
(In thousands)
September 30, 2025
September 30, 2024
Income:
Dividends from non-obligor subsidiaries
371,500
473,000
Interest income from non-obligor subsidiaries and affiliates
3,125
8,489
(Losses) earnings from investments in equity method investees
(14)
29
Other operating income
8,027
3,116
Total income
382,638
484,634
Expenses:
Services provided by non-obligor subsidiaries and affiliates (net of
reimbursement by subsidiaries for services provided by parent of
$188,825 (2024 - $172,449))
13,390
9,654
Other expenses
19,492
30,000
Income tax expense
[1]
7,075
21,934
Total expenses
39,957
61,588
Net income
342,681
423,046
[1] The net income for the nine months ended September 30, 2024, included $22.9 million of expenses, of which $16.5 million was reflected
in income tax expense and $6.4 million was reflected in other operating expenses, related to an out-of-period adjustment associated with the
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.
In addition to the dividend income reflected in the Statement of Operations table above, during the nine months ended
September 30, 2025, the obligor group recorded a $23.0 million of dividend distributions from non-obligor subsidiary which
was recorded as a reduction to the investment (2024 - $67.4 million).
Risk to Liquidity
The Corporation’s liquidity may come under pressure if it experiences significant unexpected cash outflows due to deposit
withdrawals, which could arise from various factors like economic conditions, loss of depositor confidence, competition, exogenous
events, regulatory requirements or changes, a downgrade in credit rating, or other events causing counterparties to avoid exposure.
Investors should refer to Liquidity Risks section of “Part I, Item 1A” of 2024 Form 10-K for an additional discussion of liquidity risks to
which the Corporation is subject.
Credit Risk
Geographic and Government Risk
The Corporation is exposed to geographic and government risk. The Corporation’s assets and revenue composition by geographical
area and by business segment reporting are presented in Note 32 to the Consolidated Financial Statements. Readers should refer
to Economic and Market Risk section and Business Risk Section of “Part I, Item 1A” of the 2024 Form 10-K for an additional
discussion on how the Corporation is impacted by global and local economic and market conditions, including weakness in the
economy, particularly in Puerto Rico, where a significant portion of our business is concentrated. This section also addresses how
our credit risk and credit losses can increase to the extent our loans are concentrated on borrowers engaged in the same or similar
activities or in borrowers who as a group may be uniquely or disproportionately affected by certain economic or market conditions.
Commonwealth of Puerto Rico
A significant portion of our financial activities and credit exposure is concentrated in the Commonwealth of Puerto Rico (“Puerto
Rico”) which has faced severe economic and fiscal challenges in the past and may face additional challenges in the future.
Economic Performance
The latest estimates from the Puerto Rico Planning Board (the “Planning Board”) indicate that real GNP grew by 2.1% during fiscal
year 2024 (July 2023-June 2024) and by 1.1% in fiscal year 2025 (July 2024-June 2025). For fiscal year 2026 (July 2025-June
2026), the Planning Board forecasts more modest GNP growth of 0.5%. Meanwhile, the Puerto Rico Economic Activity Index
showed a 0.9% year-over-year decline and a 0.2% month-over-month decline in June 2025. While this index is not a direct measure
of real GNP, it serves as an indicator of ongoing economic activity.
In 2021 and 2022, inflation rose sharply in the U.S. and Puerto Rico due to post-pandemic demand and supply chain issues.
Inflation began to decrease by mid-2022 as the Federal Reserve raised interest rates, largely stabilizing by September 2024,
leading to a series of rate reductions by the Federal Reserve for the first time in four years. As of September 2025, the U.S.
Consumer Price Index showed a 3.0% year-over-year increase, which is significantly lower than peak 2022 inflation levels but still
above the Federal Reserve’s 2% target. In Puerto Rico, the Consumer Price Index increased by 1.9% over the same period.
Moreover, since October 1, 2025, a congressional impasse over fiscal year 2026 appropriations has triggered a partial shutdown of
numerous U.S. federal agencies and services. The shutdown has disrupted, and may continue to disrupt, federal payments to U.S.
government employees, beneficiaries of federal programs and transfers to the Puerto Rico government. While these disruptions
could adversely affect our customers and the broader Puerto Rico economy, the overall impact remains uncertain and will depend
largely on the shutdown’s duration and scope.
Fiscal Challenges of Puerto Rico and its Municipalities
As Puerto Rico’s economy contracted in the 2000s, public debt increased rapidly due to borrowing to cover deficits to pay debt
service, pension benefits, and other expenditures. By 2016, the government had over $120 billion in combined debt and unfunded
pension liabilities, lost access to capital markets, and faced a fiscal crisis.
In response, the U.S. Congress enacted PROMESA in June 2016. PROMESA established an Oversight Board with significant
control over Puerto Rico’s fiscal and economic affairs, including those of its public corporations, instrumentalities and municipalities
(collectively, “PR Government Entities”).
In August 2025, President Donald J. Trump dismissed six of the seven members of the Oversight Board, reportedly due to inefficient
leadership and excessive spending. Three of the dismissed members subsequently filed suit in federal court challenging the legality
of their dismissal. On October 3, 2025, the court issued a preliminary injunction that effectively reinstated such members and barred
the seating of replacement members while the case proceeds. Such ruling remains subject to potential appeal. It is still too early to
determine what impact these developments may have on Puerto Rico’s fiscal and economic affairs.
Under PROMESA, the Oversight Board will remain in place until market access is restored and balanced budgets are achieved for
at least four consecutive years. PROMESA also established two mechanisms for the restructuring of the obligations of PR
Government Entities: (a) Title III, an in-court process akin to that of the U.S. Bankruptcy Code and which permits adjustment of a
broad range of obligations, and (b) Title VI, a largely out-of-court process through which a supermajority of creditors can accept
modifications to debt and bind holdouts.
Since 2017, Puerto Rico and several of its instrumentalities have availed themselves of these mechanisms. The Puerto Rico
government exited Title III in March 2022, and several instrumentalities, such as the Government Development Bank and the Puerto
Rico Highways and Transportation Authority have also completed debt restructurings under Titles III or VI of PROMESA. However,
the Puerto Rico Electric Power Authority is still undergoing its debt restructuring.
Puerto Rico's economic difficulties have also impacted its municipalities. Historically, the central government provided significant
municipal subsidies. However, these have decreased pursuant to fiscal measures required by the Oversight Board. This decline has
been partly offset by federal disaster and COVID-relief funding received by municipalities in recent years. The latest Puerto Rico
fiscal plan proposes a restructured grant system to enhance municipal services and encourage accountability through performance
metrics.
Municipalities are subject to PROMESA, and the Oversight Board has required certain municipalities to submit fiscal plans and
annual budgets for review and approval. Municipalities are also required to seek Oversight Board approval to issue, guarantee or
modify their debts and to enter into significant contracts. To date no municipality has availed itself of the debt restructuring
mechanisms available to them under PROMESA.
Exposure of the Corporation
The credit quality of BPPR’s loan portfolio is closely tied to the economic conditions in Puerto Rico. Deterioration in the Puerto Rico
economy could potentially increase delinquencies and charge-offs, thereby impacting the Corporation’s financial health. The
Corporation has direct exposure to P.R. Government Entities, which are mainly concentrated in obligations from various Puerto Rico
municipalities. Additionally, the Corporation holds loans and securities insured by P.R. Government Entities, such as the Housing
Finance Authority, whose ability to honor guarantees depends on its financial condition. BPPR’s commercial, mortgage, and
consumer loan portfolios are also exposed to risks from private borrowers who are service providers or have other relationships with
the Puerto Rico government and government employees who could be negatively affected by Puerto Rico’s fiscal challenges. For
further discussion of the Corporation’s direct and indirect exposure to the Puerto Rico government and its instrumentalities and
municipalities, please refer to Note 18 – Commitments and Contingencies to the Consolidated Financial Statements.
The Corporation also maintains significant deposits from P.R. Government Entities, with future balances subject to various
uncertainties. Further information on Puerto Rico Government deposits is included in Note 12 – Deposits to the Consolidated
Financial Statements.
United States Virgin Islands
The Corporation has operations in the United States Virgin Islands (“USVI”) and has credit exposure to USVI government entities.
Non-Performing Assets
During the third quarter of 2025, the Corporation’s credit quality metrics were affected by two significant unrelated commercial
exposures, resulting in a $188.4 million increase in NPLs. The determination of classifying these loans as NPLs was driven by
factors specific to the individual borrowers and are not believed to be indicative of a broader decline in portfolio credit quality.
The first loan classified as NPL is a $158.3 million commercial and industrial facility issued to a telecommunications company in
Puerto Rico experiencing reduced revenue due to operational challenges following a business acquisition and client attrition. The second loan classified as NPL is a $30.1 million commercial real estate facility, following a $13.5 million charge-off during the quarter, and is secured by a hotel property in Florida.
Excluding these cases, credit quality metrics were stable. The Corporation continues to closely monitor the economic landscape and
borrower performance, as economic uncertainty remains a key consideration. The Corporation’s experience managing credit risk
under different macroeconomic and operating environments and, more recently, the steps taken around credit tightening supports
management’s view that exposure to riskier borrowers is adequately managed. Nonetheless, carefully monitoring the performance
of our loan portfolio and its response to the environment will continue to be a priority.
Total NPAs of $545.2 million as of September 30, 2025, increased by $137.1 million when compared with December 31, 2024. Total
NPLs of $502.2 million increased by $151.4 million from December 31, 2024. BPPR’s NPLs increased by $161.3 million, primarily
due to the classification of the two commercial exposures with book values of $158.3 million and $30.1 million as NPLs, partly offset
by lower mortgage NPLs by $18.5 million. Popular U.S. NPLs decreased by $9.9 million, mostly driven by decreases of $6.9 million
and $2.1 million in commercial and mortgage NPLs, respectively.
On September 30, 2025, the ratio of NPLs to total loans held-in-portfolio was 1.30%, compared to 0.95% on December 31, 2024.
Other real estate owned loans (“OREOs”) totaled $43.0 million, a decrease of $14.3 million from December 31, 2024. On September
30, 2025, NPLs secured by real estate amounted to $211 million in the Puerto Rico operations and $47 million in Popular U.S,
compared with $200 million and $56 million, respectively, on December 31, 2024.
The Corporation’s commercial loan portfolio secured by real estate (“CRE”) amounted to $11.0 billion on September 30, 2025, with
$3.1 billion secured by owner-occupied properties (December 31, 2024 - $10.9 billion and $3.2 billion, respectively).
CRE NPLs amounted to $78.4 million on September 30, 2025, compared with $53.7 million on December 31, 2024. The CRE NPL
ratios for the BPPR and Popular U.S. segments were 1.31% and 0.25%, respectively, on September 30, 2025, compared with
0.64% and 0.37%, respectively, on December 31, 2024.
The non-owner occupied CRE portfolio was $5.5 billion at September 30, 2025, split between $3.3 billion in BPPR and $2.2 billion in
Popular U.S. This portfolio is diversified across sectors: retail (33%), hotels (19%), and office space (13%) which together represent
two-thirds of total non-owner occupied CRE exposure. Specifically, office space leasing accounts for just 1.8% ($713.4 million) of
the total loan portfolio, mainly comprising mid-rise properties with an average loan size of $2.5 million, and is well diversified by
tenant type.
Within CRE, the commercial multi-family portfolio is $2.5 billion (approximately 6% of total loans), concentrated in New York Metro
($1.5 billion), South Florida ($672.2 million) and Puerto Rico ($199.6 million) regions. In the New York Metro, there is no exposure to
rent-controlled buildings and rent-stabilized units make up less than 40% of total units, with most originated after 2019.
In addition to the NPLs included in Table 18, on September 30, 2025, there were $724 million of performing loans, mostly
commercial loans, which in management’s opinion, are currently subject to potential future classification as non-performing
(December 31, 2024 - $596 million).
The following table presents the Corporation’s NPAs as of September 30, 2025 and December 31, 2024:
Table 18 - Non-Performing Assets
September 30, 2025
December 31, 2024
(Dollars in thousands)
BPPR
Popular
U.S.
Popular,
Inc.
As a % of
loans HIP
by
category
BPPR
Popular
U.S.
Popular,
Inc.
As a % of
loans HIP
by
category
Commercial
Commercial multi-family
174
8,467
8,641
0.3
79
8,700
8,779
0.4
Commercial real estate non-owner
occupied
37,043
7,083
44,126
0.8
6,429
8,015
14,444
0.3
Commercial real estate owner
occupied
25,619
25,619
0.8
25,258
5,191
30,449
1.0
Commercial and industrial
173,245
1,246
174,491
2.1
19,335
1,748
21,083
0.3
Total Commercial
236,081
16,796
252,877
1.3
51,101
23,654
74,755
0.4
Mortgage
139,958
27,809
167,767
2.0
158,442
29,890
188,332
2.3
Leasing
7,747
7,747
0.4
9,588
9,588
0.5
Consumer
Home equity lines of credit
3,257
3,257
4.1
3,393
3,393
4.6
Personal
18,375
941
19,316
1.0
20,269
1,741
22,010
1.2
Auto
49,432
49,432
1.3
51,792
51,792
1.4
Other
1,776
30
1,806
1.0
899
11
910
0.5
Total Consumer
69,583
4,228
73,811
1.0
72,960
5,145
78,105
1.1
Total non-performing loans held-in-
portfolio
453,369
48,833
502,202
1.3
292,091
58,689
350,780
0.9
Other real estate owned (“OREO”)
42,446
504
42,950
57,197
71
57,268
Total non-performing assets
[1]
495,815
49,337
545,152
349,288
58,760
408,048
Accruing loans past due 90 days or
more
[2]
205,168
188
205,356
242,250
190
242,440
Ratios:
Non-performing assets to total assets
0.84
0.30
0.73
0.61
0.37
0.56
Non-performing loans held-in-portfolio
to loans held-in-portfolio
1.67
0.42
1.30
1.12
0.54
0.95
Allowance for credit losses to loans
held-in-portfolio
2.56
0.79
2.03
2.56
0.69
2.01
Allowance for credit losses to non-
performing loans, excluding held-for-
sale
153.38
186.07
156.55
229.61
128.40
212.68
[1] There were no non-performing loans held-for-sale as of September 30, 2025 and December 31, 2024.
[2] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90
days or more as opposed to non-performing since the principal repayment is insured. These balances include $49 million of residential mortgage
loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of September 30, 2025 (December 31, 2024 - $65 million).
Furthermore, the Corporation has $29 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 (December 31, 2024 -
$31 million).
For the quarter ended September 30, 2025, total inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $187.0
million, when compared to the inflows for the same period in 2024. Inflows of NPLs held-in-portfolio at the BPPR segment increased
by $205.2 million, compared to the same period in 2024, mainly driven by the two commercial exposures that were classified as
NPLs during the quarter. Inflows of NPLs held-in-portfolio at the Popular U.S. segment decreased by $18.2 million from the same
period in 2024, driven by lower mortgage NPL inflows by $17.4 million.
Tables 19 to 25 present the Corporation’s inflows to NPLs for the quarters and nine months ended September 30, 2025 and 2024.
Table 19 - Activity in Non -Performing Loans Held-in-Portfolio (Excluding Consumer Loans)
For the quarter ended September 30, 2025
For the nine months ended September 30, 2025
(Dollars in thousands)
BPPR
Popular U.S.
Popular, Inc.
BPPR
Popular U.S.
Popular, Inc.
Beginning balance
189,630
49,763
239,393
209,543
53,544
263,087
Plus:
New non-performing loans
241,745
4,786
246,531
310,973
21,853
332,826
Advances on existing non-performing loans
48
48
86
86
Less:
Non-performing loans transferred to OREO
(2,333)
(2,333)
(7,273)
(433)
(7,706)
Non-performing loans charged-off
(13,854)
(13,854)
(15,571)
(1,713)
(17,284)
Loans returned to accrual status / loan collections
(39,149)
(9,992)
(49,141)
(121,633)
(28,732)
(150,365)
Ending balance NPLs
376,039
44,605
420,644
376,039
44,605
420,644
Table 20 - Activity in Non -Performing Loans Held-in-Portfolio (Excluding Consumer Loans)
For the quarter ended September 30, 2024
For the nine months ended September 30, 2024
(Dollars in thousands)
BPPR
Popular U.S.
Popular, Inc.
BPPR
Popular U.S.
Popular, Inc.
Beginning balance
219,960
49,317
269,277
254,476
22,354
276,830
Plus:
New non-performing loans
36,585
22,968
59,553
111,128
84,248
195,376
Advances on existing non-performing loans
32
32
352
352
Less:
Non-performing loans transferred to OREO
(4,016)
(4,016)
(12,665)
(24)
(12,689)
Non-performing loans charged-off
(4,031)
(82)
(4,113)
(17,930)
(1,050)
(18,980)
Loans returned to accrual status / loan collections
(36,759)
(5,325)
(42,084)
(123,270)
(38,970)
(162,240)
Ending balance NPLs
211,739
66,910
278,649
211,739
66,910
278,649
Table 21 - Activity in Non -Performing Commercial Loans Held-in-Portfolio
For the quarter ended September 30, 2025
For the nine months ended September 30, 2025
(Dollars in thousands)
BPPR
Popular U.S.
Popular, Inc.
BPPR
Popular U.S.
Popular, Inc.
Beginning balance
42,166
21,711
63,877
51,101
23,654
74,755
Plus:
New non-performing loans
211,193
1,775
212,968
218,742
12,820
231,562
Advances on existing non-performing loans
48
48
85
85
Less:
Non-performing loans transferred to OREO
(260)
(260)
Non-performing loans charged-off
(13,779)
(13,779)
(14,921)
(1,713)
(16,634)
Loans returned to accrual status / loan
collections
(3,499)
(6,738)
(10,237)
(18,581)
(18,050)
(36,631)
Ending balance NPLs
236,081
16,796
252,877
236,081
16,796
252,877
Table 22 - Activity in Non -Performing Commercial Loans Held-in-Portfolio
For the quarter ended September 30, 2024
For the nine months ended September 30, 2024
(Dollars in thousands)
BPPR
Popular U.S.
Popular, Inc.
BPPR
Popular U.S.
Popular, Inc.
Beginning balance
56,170
37,763
93,933
72,992
11,163
84,155
Plus:
New non-performing loans
4,460
2,582
7,042
12,834
39,561
52,395
Advances on existing non-performing loans
3
3
305
305
Less:
Non-performing loans transferred to OREO
(280)
(280)
Non-performing loans charged-off
(4,085)
(82)
(4,167)
(17,784)
(1,032)
(18,816)
Loans returned to accrual status / loan collections
(2,726)
(1,790)
(4,516)
(13,943)
(11,521)
(25,464)
Ending balance NPLs
53,819
38,476
92,295
53,819
38,476
92,295
Table 23 - Activity in Non -Performing Construction Loans Held-in-Portfolio
For the quarter ended September 30, 2024
For the nine months ended September 30, 2024
(Dollars in thousands)
BPPR
Popular U.S.
Popular, Inc.
BPPR
Popular U.S.
Popular, Inc.
Beginning balance
6,378
6,378
Less:
Loans returned to accrual status / loan collections
(6,378)
(6,378)
Ending balance NPLs
Table 24 - Activity in Non -Performing Mortgage Loans Held-in-Portfolio
For the quarter ended September 30, 2025
For the nine months ended September 30, 2025
(Dollars in thousands)
BPPR
Popular U.S.
Popular, Inc.
BPPR
Popular U.S.
Popular, Inc.
Beginning balance
147,464
28,052
175,516
158,442
29,890
188,332
Plus:
New non-performing loans
30,552
3,011
33,563
92,231
9,033
101,264
Advances on existing non-performing loans
1
1
Less:
Non-performing loans transferred to OREO
(2,333)
(2,333)
(7,013)
(433)
(7,446)
Non-performing loans charged-off
(75)
(75)
(650)
(650)
Loans returned to accrual status / loan collections
(35,650)
(3,254)
(38,904)
(103,052)
(10,682)
(113,734)
Ending balance NPLs
139,958
27,809
167,767
139,958
27,809
167,767
Table 25 - Activity in Non -Performing Mortgage Loans Held-in-Portfolio
For the quarter ended September 30, 2024
For the nine months ended September 30, 2024
(Dollars in thousands)
BPPR
Popular U.S.
Popular, Inc.
BPPR
Popular U.S.
Popular, Inc.
Beginning balance
163,790
11,554
175,344
175,106
11,191
186,297
Plus:
New non-performing loans
32,125
20,386
52,511
98,294
44,687
142,981
Advances on existing non-performing loans
29
29
47
47
Less:
Non-performing loans transferred to OREO
(4,016)
(4,016)
(12,385)
(24)
(12,409)
Non-performing loans charged-off
54
54
(146)
(18)
(164)
Loans returned to accrual status / loan collections
(34,033)
(3,535)
(37,568)
(102,949)
(27,449)
(130,398)
Ending balance NPLs
157,920
28,434
186,354
157,920
28,434
186,354
Loan Delinquencies
Another key measure used to evaluate and monitor the Corporation’s asset quality is loan delinquencies. Loans delinquent 30 days
or more, as a percentage of their related portfolio category on September 30, 2025 and December 31, 2024, are presented below.
Table 26 - Loan Delinquencies
(Dollars in thousands)
September 30, 2025
December 31, 2024
Loans delinquent
30 days or more
Total loans
Total delinquencies
as a percentage
of total loans
Loans delinquent
30 days or more
Total loans
Total delinquencies
as a percentage
of total loans
Commercial
Commercial multi-family
12,637
2,489,589
0.51
15,826
2,399,620
0.66
Commercial real estate
non-owner occupied
61,924
5,462,580
1.13
24,925
5,363,235
0.46
Commercial real estate
owner occupied
43,163
3,090,724
1.40
42,311
3,157,746
1.34
Commercial and industrial
200,876
8,245,639
2.44
49,942
7,741,562
0.65
Total Commercial
318,600
19,288,532
1.65
133,004
18,662,163
0.71
Construction
4,589
1,604,612
0.29
1,039
1,263,792
0.08
Mortgage
[1]
718,940
8,558,408
8.40
798,130
8,114,183
9.84
Leasing
36,656
1,998,651
1.83
39,641
1,925,405
2.06
Consumer
Credit cards
49,098
1,225,567
4.01
59,078
1,218,079
4.85
Home equity lines of credit
3,987
78,890
5.05
5,054
73,571
6.87
Personal
52,491
1,900,325
2.76
57,835
1,855,244
3.12
Auto
179,213
3,850,953
4.65
191,008
3,823,437
5.00
Other
5,377
181,220
2.97
3,930
171,778
2.29
Total Consumer
290,166
7,236,955
4.01
316,905
7,142,109
4.44
Loans held-for-sale
7,783
5,423
Total
1,368,951
38,694,941
3.54
1,288,719
37,113,075
3.47
[1] Loans delinquent 30 days or more includes $0.4 billion of residential mortgage loans insured by FHA or guaranteed by the VA as of September
30, 2025 (December 31, 2024 - $0.4 billion). Refer to Note 7 to the Consolidated Financial Statements for additional information of guaranteed loans.
Allowance for Credit Losses Loans Held-in-Portfolio
The ACL represents management’s estimate of expected credit losses through the remaining contractual life of the different loan
segments, impacted by expected prepayments. The ACL is maintained at a sufficient level to provide for estimated credit losses on
collateral dependent loans as well as loans modified for borrowers with financial difficulties separately from the remainder of the loan
portfolio. Refer to Note 8 to the Consolidated Financial Statements, for additional information on the Corporation’s methodology to
estimate its ACL.
At September 30, 2025, the ACL increased by $40.2 million from December 31, 2024 to $786.2 million. The increase in ACL was
mainly driven by a combination of changes in the economic scenario probability weights, increases in qualitative reserves in
response to the current economic environment uncertainty, higher loan volumes, and a specific reserve recognized for the $158.3
million commercial NPL inflow described above. These increases were offset in part by the net effect of changes in credit quality and
NCOs during the period. Given that any economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to
estimate its ACL. Prior to the first quarter of 2025, the Corporation assigned the baseline scenario the highest probability among the
scenarios used to estimate the ACL, followed by the pessimistic scenario given the uncertainties in the economic outlook and
downside risk, and the optimistic scenario had the lowest probability. During the first quarter of 2025, the Corporation modified the
weight assigned to the pessimistic scenario to be equal to the baseline scenario in response to the current economic uncertainty,
resulting in an increase of $18.2 million in the reserves. In the second quarter of 2025, the probability weight for the pessimistic scenario was moderately decreased based on changes in the economic outlook and a reassessment of uncertainty compared to the previous quarter. This change resulted in a $4.5 million reduction in ACL reserve levels, for a $13.7 million net increase from
December 31, 2024. The probability weight for the pessimistic scenario remains above the levels observed in 2024, given the
ongoing economic uncertainty.
At September 30, 2025, the ACL for BPPR increased by $24.7 million from December 31, 2024, driven by changes in the probability
weights that resulted in a $8.8 million net ACL increase, higher loan volumes, and a specific reserve recognized for the $158.3
million commercial NPL inflow described above. These increases were partially offset by improvements in credit quality and NCOs
during the period. In PB, the ACL increased by $15.5 million, when compared to December 31, 2024. This increase was mainly
driven by higher qualitative reserves for the CRE portfolio in response to current market volatility and economic uncertainty, coupled
with changes in the probability weights that resulted in a $4.9 million net increase.
The Corporation’s ratio of the allowance for credit losses to loans held-in-portfolio was 2.03% on September 30, 2025, compared to
2.01% on December 31, 2024. The ratio of the ACL to NPLs held-in-portfolio stood at 156.6%, compared to 212.7% on December
31, 2024.
Tables 27 and 28 detail the allowance for credit losses by loan categories and the percentage it represents of total loans held-in-
portfolio and NPLs. The breakdown is made for analytical purposes, and it is not necessarily indicative of the categories in which
future loan losses may occur.
Table 27 - Allowance for Credit Losses - Loan Portfolios
September 30, 2025
(Dollars in thousands)
Total ACL
Total loans held-
in-portfolio
ACL to loans held-
in-portfolio
Total non-
performing loans
held-in-portfolio
ACL to non-
performing loans
held-in-portfolio
Commercial
Commercial multi-family
16,582
2,489,589
0.67
8,641
191.90
Commercial real estate non-owner occupied
58,845
5,462,580
1.08
44,126
133.36
Commercial real estate owner occupied
49,191
3,090,724
1.59
25,619
192.01
Commercial and industrial
169,307
8,245,639
2.05
174,491
97.03
Total Commercial
293,925
19,288,532
1.52
252,877
116.23
Construction
11,104
1,604,612
0.69
Mortgage
86,981
8,558,408
1.02
167,767
51.85
Leasing
19,220
1,998,651
0.96
7,747
248.10
Consumer
Credit cards
87,208
1,225,567
7.12
Home equity lines of credit
1,548
78,890
1.96
3,257
47.53
Personal
100,238
1,900,325
5.27
19,316
518.94
Auto
177,819
3,850,953
4.62
49,432
359.72
Other
8,177
181,220
4.51
1,806
452.77
Total Consumer
374,990
7,236,955
5.18
73,811
508.04
Total
786,220
38,687,158
2.03
502,202
156.55
Table 28 - Allowance for Credit Losses - Loan Portfolios
December 31, 2024
(Dollars in thousands)
Total ACL
Total loans held-
in-portfolio
ACL to loans held-
in-portfolio
Total non-
performing loans
held-in-portfolio
ACL to non-
performing loans
held-in-portfolio
Commercial
Commercial multi-family
9,236
2,399,620
0.38
8,779
105.21
Commercial real estate non-owner occupied
54,494
5,363,235
1.02
14,444
377.28
Commercial real estate owner occupied
49,828
3,157,746
1.58
30,449
163.64
Commercial and industrial
146,006
7,741,562
1.89
21,083
692.53
Total Commercial
259,564
18,662,163
1.39
74,755
347.22
Construction
11,264
1,263,792
0.89
Mortgage
82,409
8,114,183
1.02
188,332
43.76
Leasing
16,419
1,925,405
0.85
9,588
171.25
Consumer
Credit cards
99,130
1,218,079
8.14
Home equity lines of credit
1,503
73,571
2.04
3,393
44.30
Personal
102,736
1,855,244
5.54
22,010
466.77
Auto
165,995
3,823,437
4.34
51,792
320.50
Other
7,004
171,778
4.08
910
769.67
Total Consumer
376,368
7,142,109
5.27
78,105
481.87
Total
746,024
37,107,652
2.01
350,780
212.68
Annualized net charge-offs (recoveries)
The following table presents annualized net charge-offs (recoveries) to average loans held-in-portfolio (“HIP”) by loan category for
the quarters and nine months ended September 30, 2025 and 2024.
Table 29 - Annualized Net Charge -offs (Recoveries) to Average Loans Held-in-Portfolio
Quarters ended
September 30, 2025
September 30, 2024
BPPR
Popular U.S.
Popular Inc.
BPPR
Popular U.S.
Popular Inc.
Commercial
0.50
0.03
0.29
0.13
0.02
0.08
Construction
(2.33)
(0.37)
Mortgage
(0.12)
(0.01)
(0.11)
(0.24)
(0.01)
(0.20)
Leasing
0.41
0.41
0.49
0.49
Consumer
2.48
1.69
2.46
3.14
7.17
3.26
Total annualized net charge-offs
(recoveries) to average loans held-in-
portfolio
0.84
0.04
0.60
0.86
0.15
0.65
Nine months ended
September 30, 2025
September 30, 2024
BPPR
Popular U.S.
Popular Inc.
BPPR
Popular U.S.
Popular Inc.
Commercial
0.14
0.02
0.08
0.21
0.03
0.13
Construction
(0.82)
(0.01)
(0.14)
Mortgage
(0.14)
(0.03)
(0.12)
(0.25)
(0.01)
(0.21)
Leasing
0.55
0.55
0.64
0.64
Consumer
2.53
3.23
2.54
2.93
7.43
3.07
Total annualized net charge-offs
(recoveries) to average loans held-in-
portfolio
0.73
0.06
0.53
0.86
0.18
0.66
NCOs for the quarter ended September 30, 2025, amounted to $57.8 million, decreasing by $0.7 million when compared to the
same period in 2024. The BPPR segment increased by $2.0 million, mainly driven by an increase of $9.9 million and $1.7 million in
commercial and mortgage NCOs, respectively, mostly due to a $13.5 million charge-off related to the $30.1 million commercial NPL
inflow, partially offset by a decrease of $10.5 million in consumer NCOs. The PB segment NCOs decreased by $2.7 million, mainly
driven by lower consumer NCOs by $3.0 million
NCOs for the nine months ended September 30, 2025, amounted to $149.1 million, decreasing by $25.3 million when compared to
the same period in 2024. The BPPR segment decreased by $16.6 million, mainly driven by a decrease of $17.5 million in consumer
NCOs. The PB segment NCOs decreased by $8.6 million, mainly driven by lower consumer NCOs by $7.9 million.
Loan Modifications
For the quarter ended September 30, 2025, modified loans to borrowers with financial difficulty amounted to $156.0 million, of which
$146.8 million were in accruing status. The BPPR segment’s modifications to borrowers with financial difficulty amounted to $154.5
million, mainly comprised of commercial and mortgage loans of $130.1 million and $17.7 million, respectively. A total of $12.9 million
of the mortgage modifications were related to government guaranteed loans. The Popular U.S. segment’s modifications to
borrowers with financial difficulty amounted to $1.4 million, mostly comprised of commercial loans.
Refer to Note 8 to the Consolidated Financial Statements for additional information on modifications made to borrowers
experiencing financial difficulties.
ADOPTION OF NEW ACCOUNTING STANDARDS AND ISSUED BUT NOT YET EFFECTIVE ACCOUNTING STANDARDS
Refer to Note 3, “New Accounting Pronouncements” to the Consolidated Financial Statements.
Market risk
As filed, 218 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
Quantitative and qualitative disclosures for the current period can be found in the Market Risk section of this report, which includes
changes in market risk exposures from disclosures presented in the 2024 Form 10-K.
Controls and procedures
As filed, 1,396 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
Disclosure Controls and Procedures
The Corporation’s management, with the participation of the Corporation’s Chief Executive Officer and Chief Financial Officer, has
evaluated the effectiveness of the Corporation’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”) as of the end of the period covered by this report. Based
on such evaluation, the Corporation’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such
period, the Corporation’s disclosure controls and procedures are effective in recording, processing, summarizing and reporting, on a
timely basis, information required to be disclosed by the Corporation in the reports that it files or submits under the Exchange Act
and such information is accumulated and communicated to management, as appropriate, to allow timely decisions regarding
required disclosures.
Internal Control Over Financial Reporting
There have been no changes in the Corporation’s internal control over financial reporting (as such term is defined in Rules 13a-15(f)
and 15d-15(f) under the Exchange Act) that occurred during the quarter ended September 30, 2025 that have materially affected, or
are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.
Risk factors
As filed, 252,452 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
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.
POPULAR, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
[UNAUDITED]
September 30,
December 31,
(In thousands, except share information)
2025
2024
Assets:
Cash and due from banks
377,079
419,638
Money market investments:
Time deposits with other banks
4,754,391
6,380,948
Total money market investments
4,754,391
6,380,948
Trading account debt securities, at fair value
33,122
32,831
Debt securities available-for-sale, at fair value:
Pledged securities with creditors’ right to repledge
40,352
30,486
Other debt securities available-for-sale
20,646,071
18,215,417
Debt securities available-for-sale
20,686,423
18,245,903
Debt securities held-to-maturity, at amortized cost:
Pledged securities with creditors’ right to repledge
18,525
27,405
Other debt securities held-to-maturity
7,414,610
7,730,672
Debt securities held-to-maturity (fair value 2025 - $
7,459,488
; 2024 - $
7,682,664
7,433,135
7,758,077
Less – Allowance for credit losses
5,837
5,317
Debt securities held-to-maturity, net
7,427,298
7,752,760
Equity securities (realizable value 2025 - $
219,599
; 2024 - $
208,663
218,993
208,166
Loans held-for-sale, at fair value
7,783
5,423
Loans held-in-portfolio
39,111,956
37,522,995
Less – Unearned income
424,798
415,343
Allowance for credit losses
786,220
746,024
Total loans held-in-portfolio, net
37,900,938
36,361,628
Premises and equipment, net
679,651
601,787
Other real estate
42,950
57,268
Accrued income receivable
297,347
263,389
Mortgage servicing rights, at fair value
99,523
108,103
Other assets
1,744,886
1,797,759
Goodwill
789,954
802,954
Other intangible assets
5,460
6,826
Total assets
75,065,798
73,045,383
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing
14,874,026
15,139,555
Interest bearing
51,639,378
49,744,790
Total deposits
66,513,404
64,884,345
Assets sold under agreements to repurchase
56,853
54,833
Other short-term borrowings
400,000
225,000
Notes payable
789,954
896,293
Other liabilities
1,189,915
1,371,846
Total liabilities
68,950,126
67,432,317
Commitments and contingencies (Refer to Note 18)
Stockholders’ equity:
Preferred stock,
30,000,000
shares authorized;
885,726
shares issued and outstanding (2024 -
885,726
22,143
22,143
Common stock, $
0.01
par value;
170,000,000
shares authorized;
104,906,144
shares issued (2024 -
104,849,460
) and
66,959,866
shares outstanding (2024 -
70,141,291
1,049
1,048
Surplus
4,920,767
4,908,693
Retained earnings
5,022,546
4,570,957
Treasury stock - at cost,
37,946,278
shares (2024 -
34,708,169
(2,574,573)
(2,228,535)
Accumulated other comprehensive loss, net of tax
(1,276,260)
(1,661,240)
Total stockholders’ equity
6,115,672
5,613,066
Total liabilities and stockholders’ equity
75,065,798
73,045,383
The accompanying notes are an integral part of these Consolidated Financial Statements.
POPULAR, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Quarters ended September 30,
Nine months ended September 30,
(In thousands, except per share information)
2025
2024
2025
2024
Interest income:
Loans
702,039
664,731
2,053,299
1,952,200
Money market investments
66,867
96,061
206,565
272,893
Investment securities
197,743
176,656
567,655
528,403
Total interest income
966,649
937,448
2,827,519
2,753,496
Interest expense:
Deposits
303,432
350,985
896,353
1,020,420
Short-term borrowings
4,616
1,430
11,342
3,748
Long-term debt
12,096
12,560
36,173
37,799
Total interest expense
320,144
364,975
943,868
1,061,967
Net interest income
646,505
572,473
1,883,651
1,691,529
Provision for credit losses
75,125
71,448
188,147
190,840
Net interest income after provision for credit losses
571,380
501,025
1,695,504
1,500,689
Non-interest income:
Service charges on deposit accounts
39,077
38,315
116,957
113,283
Other service fees
101,376
98,748
296,406
289,883
Mortgage banking activities
2,771
2,670
11,332
12,753
Net gain (loss), including impairment on equity securities
2,197
(546)
3,645
876
Net gain on trading account debt securities
398
817
1,456
1,455
Adjustments to indemnity reserves on loans sold
36
808
329
783
Other operating income
25,340
23,270
61,608
75,173
Total non-interest income
171,195
164,082
491,733
494,206
Operating expenses:
Personnel costs
232,988
201,856
675,056
614,657
Net occupancy expenses
26,083
28,031
82,441
83,764
Equipment expenses
5,313
9,349
16,404
28,578
Other taxes
17,967
17,757
55,324
47,465
Professional fees
25,808
26,708
80,741
93,370
Technology and software expenses
87,117
88,452
255,481
247,666
Processing and transactional services
38,408
34,320
114,050
107,610
Communications
4,836
5,229
14,750
14,143
Business promotion
27,304
25,637
77,364
72,075
Deposit insurance
10,873
10,433
30,315
44,901
Other real estate owned (OREO) income
(3,408)
(2,674)
(10,862)
(13,745)
Other operating expenses
8,614
21,519
53,630
77,293
Amortization of intangibles
384
704
1,366
2,233
Goodwill impairment
13,000
13,000
Total operating expenses
495,287
467,321
1,459,060
1,420,010
Income before income tax
247,288
197,786
728,177
574,885
Income tax expense
35,971
42,463
128,918
138,490
Net Income
211,317
155,323
599,259
436,395
Net Income Applicable to Common Stock
210,964
154,970
598,200
435,336
Net Income per Common Share – Basic
3.15
2.16
8.78
6.06
Net Income per Common Share – Diluted
3.14
2.16
8.78
6.05
The accompanying notes are an integral part of these Consolidated Financial Statements.
POPULAR, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Quarters ended,
Nine months ended,
September 30,
September 30,
(In thousands)
2025
2024
2025
2024
Net income
211,317
155,323
599,259
436,395
Other comprehensive income (loss) before tax:
Foreign currency translation adjustment
(14,524)
615
(13,670)
(3,240)
Amortization of net losses of pension and postretirement benefit plans
2,272
3,618
6,817
10,854
Unrealized holding gains (losses) on debt securities arising during the period
110,430
380,927
335,388
330,319
Amortization of unrealized losses of debt securities transfer from available-for-
sale to held-to-maturity
47,191
45,331
138,743
133,761
Other comprehensive income before tax
145,369
430,491
467,278
471,694
Income tax expense
(25,972)
(65,203)
(82,298)
(89,157)
Total other comprehensive income, net of tax
119,397
365,288
384,980
382,537
Comprehensive income, net of tax
330,714
520,611
984,239
818,932
Tax effect allocated to each component of other comprehensive income:
Quarters ended
Nine months ended,
September 30,
September 30,
(In thousands)
2025
2024
2025
2024
Amortization of net losses of pension and postretirement benefit plans
851
1,357
2,555
4,070
Unrealized holding losses on debt securities arising during the period
(15,683)
(54,779)
(51,994)
(58,334)
Amortization of unrealized losses of debt securities transfer from available-for-
sale to held-to-maturity
(9,438)
(9,067)
(27,749)
(26,753)
Income tax expense
(25,972)
(65,203)
(82,298)
(89,157)
The accompanying notes are an integral part of the Consolidated Financial Statements.
POPULAR, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Accumulated
other
Common
Preferred
Retained
Treasury
comprehensive
(In thousands)
stock
stock
Surplus
earnings
stock
loss
Total
Balance at June 30, 2024
1,048
22,143
4,852,747
4,385,522
(2,010,500)
(1,878,282)
5,372,678
Net income
155,323
155,323
Issuances of common stock
1,704
1,704
Dividends declared:
Common stock
[1]
(44,614)
(44,614)
Preferred stock
(353)
(353)
Common stock purchases
[2]
(59,147)
(59,147)
Stock based compensation
(582)
217
(365)
Other comprehensive income, net of tax
365,288
365,288
Balance at September 30, 2024
1,048
22,143
4,853,869
4,495,878
(2,069,430)
(1,512,994)
5,790,514
Balance at June 30, 2025
1,049
22,143
4,919,950
4,861,958
(2,455,425)
(1,395,657)
5,954,018
Net income
211,317
211,317
Issuances of common stock
1,764
1,764
Dividends declared:
Common stock
[1]
(50,376)
(50,376)
Preferred stock
(353)
(353)
Common stock purchases
[3]
(119,697)
(119,697)
Stock based compensation
(947)
549
(398)
Other comprehensive income, net of tax
119,397
119,397
Balance at September 30, 2025
1,049
22,143
4,920,767
5,022,546
(2,574,573)
(1,276,260)
6,115,672
[1]
Dividends declared per common share during the quarter ended September 30, 2025 - $
0.75
(2024 - $
0.62
[2]
Includes common stock repurchases of $
58.8
million as part of the 2024 common stock repurchase program. Refer to Note 15 for additional
information.
[3]
Includes common stock repurchases of $
119.4
million as part of the 2024 and 2025 common stock repurchase programs previously announced
by the Corporation. Refer to Note 15 for additional information.
POPULAR, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Accumulated
other
Common
Preferred
Retained
Treasury
comprehensive
(In thousands)
stock
stock
Surplus
earnings
stock
loss
Total
Balance at December 31, 2023
1,048
22,143
4,843,399
4,194,851
(2,018,957)
(1,895,531)
5,146,953
Net income
436,395
436,395
Issuances of common stock
5,271
5,271
Dividends declared:
Common stock
[1]
(134,309)
(134,309)
Preferred stock
(1,059)
(1,059)
Common stock purchases
[2]
(65,923)
(65,923)
Stock based compensation
5,199
15,450
20,649
Other comprehensive income, net of tax
382,537
382,537
Balance at September 30, 2024
1,048
22,143
4,853,869
4,495,878
(2,069,430)
(1,512,994)
5,790,514
Balance at December 31, 2024
1,048
22,143
4,908,693
4,570,957
(2,228,535)
(1,661,240)
5,613,066
Net income
599,259
599,259
Issuances of common stock
1
5,293
5,294
Dividends declared:
Common stock
[1]
(146,611)
(146,611)
Preferred stock
(1,059)
(1,059)
Common stock purchases
[3]
(362,752)
(362,752)
Stock based compensation
6,781
16,714
23,495
Other comprehensive income, net of tax
384,980
384,980
Balance at September 30, 2025
1,049
22,143
4,920,767
5,022,546
(2,574,573)
(1,276,260)
6,115,672
[1]
Dividends declared per common share during the nine months ended September 30, 2025 - $
2.15
(2024 - $
1.86
[2]
Includes common stock repurchases of $
58.8
million as part of the 2024 common stock repurchase program. Refer to Note 15 for additional
information.
[3]
Includes common stock repurchases of $
353.7
million as part of the 2024 and 2025 common stock repurchase programs previously announced
by the Corporation. Refer to Note 15 for additional information.
For the nine months ended
September 30,
September 30,
Disclosure of changes in number of shares:
2025
2024
Preferred Stock:
Balance at beginning and end of period
885,726
885,726
Common Stock – Issued:
Balance at beginning of period
104,849,460
104,767,348
Issuances of common stock
56,684
65,364
Balance at end of period
104,906,144
104,832,712
Treasury stock
(37,946,278)
(33,045,363)
Common Stock – Outstanding
66,959,866
71,787,349
The accompanying notes are an integral part of these Consolidated Financial Statements.
POPULAR, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended September 30,
(In thousands)
2025
2024
Cash flows from operating activities:
Net income
599,259
436,395
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses
188,147
190,840
Goodwill impairment charge
13,000
Amortization of intangibles
1,366
2,233
Depreciation and amortization of premises and equipment
38,901
46,720
Net accretion of discounts and amortization of premiums and deferred fees
(203,871)
(196,221)
Interest capitalized on loans subject to the temporary payment moratorium or loss mitigation alternatives
(4,729)
(5,933)
Share-based compensation
23,574
17,853
Fair value adjustments on mortgage servicing rights
9,359
10,280
Adjustments to indemnity reserves on loans sold
(329)
(783)
Earnings from investments under the equity method, net of dividends or distributions
(13,760)
(12,723)
Deferred income tax expense
26,666
19,247
Gain on:
Disposition of premises and equipment and other productive assets
(31)
(7,651)
Sale of loans, including valuation adjustments on loans held-for-sale and mortgage banking activities
(103)
(396)
Sale of equity method investment
(1,226)
Sale of foreclosed assets, including write-downs
(8,722)
(13,590)
Acquisitions of loans held-for-sale
(4,135)
(5,810)
Proceeds from sale of loans held-for-sale
26,924
28,697
Net originations on loans held-for-sale
(22,184)
(31,284)
Net decrease (increase) in:
Trading debt securities
6,561
10,445
Equity securities
(4,827)
(7,337)
Accrued income receivable
(33,921)
6,032
Other assets
(4,008)
15,425
Net increase (decrease) in:
Interest payable
(7,042)
(4,785)
Pension and other postretirement benefits obligation
3,372
5,937
Other liabilities
(18,266)
(28,352)
Total adjustments
10,716
38,844
Net cash provided by operating activities
609,975
475,239
Cash flows from investing activities:
Net decrease in money market investments
1,626,969
469,042
Purchases of investment securities:
Available-for-sale
(28,253,550)
(24,469,345)
Equity
(37,006)
(2,370)
Proceeds from calls, paydowns, maturities and redemptions of investment securities:
Available-for-sale
26,178,815
24,670,995
Held-to-maturity
456,532
508,511
Proceeds from sale of investment securities:
Equity
32,506
5,242
Net disbursements on loans
(1,342,325)
(833,899)
Proceeds from sale of loans
61,379
18,266
Acquisition of loan portfolios
(480,793)
(510,556)
Return of capital from equity method investments
2
279
Payments to acquire equity method investments
(687)
(1,250)
Net proceeds from sale of equity method investment
1,226
Acquisition of premises and equipment and other productive assets
(150,079)
(153,085)
Proceeds from sale of:
Premises and equipment and other productive assets
494
5,570
Foreclosed assets
67,911
82,986
Net cash used in investing activities
(1,838,606)
(209,614)
Cash flows from financing activities:
Net increase in:
Deposits
1,626,359
46,924
Assets sold under agreements to repurchase
2,020
(36,024)
Other short-term borrowings
175,000
Payments of notes payable
(113,522)
(69,570)
Principal payments of finance leases
(2,894)
(2,717)
Proceeds from issuances of notes payable
6,112
Proceeds from issuances of common stock
5,294
5,271
Dividends paid
(146,840)
(135,495)
Net payments for repurchase of common stock
(356,975)
(59,556)
Payments related to tax withholding for share-based compensation
(8,070)
(6,367)
Net cash provided by financing activities
1,186,484
(257,534)
Net (decrease) increase in cash and due from banks, and restricted cash
(42,147)
8,091
Cash and due from banks, and restricted cash at beginning of period
429,406
427,575
Cash and due from banks, and restricted cash at the end of the period
387,259
435,666
The accompanying notes are an integral part of these Consolidated Financial Statements.
Notes to Consolidated Financial
Statements (Unaudited)
Note 1 -
Nature of operations
13
Note 2 -
Basis of presentation
14
Note 3 -
New accounting pronouncements
15
Note 4 -
Restrictions on cash and due from banks and
certain securities
20
Note 5 -
Debt securities available-for-sale
21
Note 6 -
Debt securities held-to-maturity
24
Note 7 -
Loans
27
Note 8 -
Allowance for credit losses – loans held-in-
portfolio
35
Note 9 -
Other real estate owned
78
Note 10 -
Other assets
79
Note 11 -
Goodwill and other intangible assets
81
Note 12 -
Deposits
84
Note 13 -
Borrowings
85
Note 14 -
Other liabilities
87
Note 15 -
Stockholders’ equity
88
Note 16 -
Other comprehensive income (loss)
89
Note 17 -
Guarantees
91
Note 18 -
Commitments and contingencies
92
Note 19-
Non-consolidated variable interest entities
95
Note 20 -
Related party transactions
97
Note 21 -
Fair value measurement
98
Note 22 -
Fair value of financial instruments
106
Note 23 -
Net income per common share
109
Note 24 -
Revenue from contracts with customers
110
Note 25 -
Stock-based compensation
111
Note 26 -
Income taxes
114
Note 27 -
Supplemental disclosure on the consolidated
statements of cash flows
118
Note 28 -
Segment reporting
Note 1 – Nature of Operations
Popular, Inc. (the “Corporation” or “Popular”) is a diversified, publicly owned financial holding company subject to the supervision
and regulation of the Board of Governors of the Federal Reserve System. The Corporation has operations in Puerto Rico, the
mainland United States (“U.S.”) and the U.S. and British Virgin Islands. In Puerto Rico, the Corporation provides retail, mortgage,
and commercial banking services, and auto and equipment leasing and financing through its principal banking subsidiary, Banco
Popular de Puerto Rico (“BPPR”), as well as broker-dealer and insurance services through specialized subsidiaries. In the U.S.
mainland, the Corporation provides retail and commercial banking services, as well as equipment leasing and financing, through its
New York-chartered banking subsidiary, 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. The consolidated statement of financial condition presented as of December 31, 2024 was derived from audited
Consolidated Financial Statements of the Corporation for the year ended December 31, 2024.
Certain information and notes to the financial statements disclosures which would normally be included in financial statements
prepared in accordance with Accounting Principles Generally Accepted in the United States of America (U.S. 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 financial statements should be read in conjunction with the audited Consolidated Financial
Statements of the Corporation for the year ended December 31, 2024, included in the 2024 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.
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 liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Note 3 - New accounting pronouncements
Recently Adopted Accounting Standards Updates
Description
Date of adoption
Effect on the financial statements
FASB ASU 2025-02,
Liabilities (Topic 405) -
Amendments to SEC
Paragraphs Pursuant to
SEC Staff Accounting
Bulletin No. 122
The Financial Accounting Standards Board
("FASB") issued Accounting Standard
Update ("ASU") 2025-02 in March 2025,
which amends the guidance in Accounting
Standards Codification ("ASC") 450-10-
S99-1 by removing the interpretative
guidance of Section FF of Topic 5 in the
Staff Accounting Bulletin Series ("SAB") text
that addressed the accounting for
obligations to safeguard crypto-assets held
by platform users to align the ASC with the
latest SAB 112 directive, ensuring
consistency and clarity.
March 18, 2025
The Corporation was not impacted by
the adoption of this ASU since it does
not currently hold crypto-assets.
FASB ASU 2024-02,
Codification Improvements
- Amendments to Remove
References to the
Concepts Statements
The FASB issued ASU 2024-02 in March
2024, which removes various references to
concept statements from the ASC. The ASU
intends to simplify the Codification and
distinguish between nonauthoritative and
authoritative guidance.
January 1, 2025
The Corporation was not impacted by
the adoption of this ASU since it did not
provide for accounting changes or new
presentation or disclosure
requirements. The ASU eliminated
references within the ASC to the
concept statements, which is
considered non-authoritative guidance.
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 718. The ASU is intended to
reduce complexity and diversity in practice.
January 1, 2025
The Corporation was not impacted by
the adoption of this ASU since the
performance share awards of the
Corporation continue to meet the
requirements of ASC 718-10-15-3.
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
December 2023, which amends ASC
Subtopic 350-60 by requiring that crypto
assets are measured at fair value in the
statement of financial position each
reporting period with changes from
remeasurement being recognized in net
income. The ASU also requires enhanced
disclosures for both annual and interim
reporting periods to provide investors with
relevant information to analyze and assess
the exposure and risk of significant
individual crypto asset holdings.
January 1, 2025
The Corporation was not impacted by
the adoption of this ASU since it does
not currently hold crypto-assets.
Recently Adopted Accounting Standards Updates
Description
Date of adoption
Effect on the financial statements
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 liabilities
assumed. The amendments require that a
joint venture, upon formation, recognize and
initially measure its assets and liabilities at
fair value.
January 1, 2025
The Corporation was not impacted at
the time of adoption of this ASU since it
elected to prospectively apply the
standard. The Corporation will consider
this guidance for the initial
measurement of assets and liabilities of
joint ventures created after the date of
adoption.
Accounting Standards Updates Not Yet Adopted
Description
Date of adoption
Effect on the financial statements
FASB ASU 2025-07,
Derivatives and Hedging
(Topic 815) and Revenue
from Contracts with
Customers (Topic 606) -
Derivatives Scope
Refinements and Scope
Clarification for Share-
Based Noncash
Consideration from a
Customer in a Revenue
Contract
The FASB issued ASU 2025-07 in
September 2025, which refines the scope of
derivative accounting under ASC Topic 815
and clarifies the treatment of share-based
noncash consideration under ASC Topic
606. The update excludes certain non-
exchange traded contracts with underlyings
based on the operations of one of the
parties from derivative accounting, aiming to
better reflect the nature of these
arrangements and reduce complexity. It
also confirms that share-based noncash
consideration from a customer should be
accounted for under ASC Topic 606 until
the right to receive or retain such non-cash
consideration becomes unconditional,
promoting consistency in revenue
recognition practices.
January 1, 2027
The Corporation is currently evaluating
any impact that the adoption of this
guidance will have on its financial
statements and presentation and
disclosures.
FASB ASU 2025-06,
Intangibles - Goodwill and
Other - Internal-Use
Software (Subtopic 350-
40) - Targeted
Improvements to the
Accounting for Internal-
Use Software
The FASB issued ASU 2025-06 in
September 2025, which seeks to modernize
the accounting for internal-use software
under ASC Subtopic 350-40, Intangibles—
Goodwill and Other—Internal-Use Software.
The update replaces the traditional stage-
based model (preliminary, development,
post-implementation) with a principles-
based framework that better reflects current
software development practices, including
agile and cloud-based approaches.
January 1, 2028
The Corporation is currently evaluating
the impact that the adoption of this
guidance will have on our accounting
for internal use software considering
our development practices which may
include agile and cloud based
approaches. Given the recent issuance
of this guidance it is too early to tell
whether the impact will be material in
our financial statements and
presentation and disclosures.
FASB ASU 2025-05,
Financial Instruments -
Credit Losses (Topic 326)
- Measurement of Credit
Losses for Accounts
Receivables and Contract
Assets
The FASB issued ASU 2025-05 in July
2025, which permits entities to elect a
practical expedient when accounting for
current accounts receivable and current
contract assets arising from transactions
accounted for under ASC Topic 606,
Revenue from Contracts with Customers.
This practical expedient establishes that, in
developing reasonable and supportable
forecasts as part of estimating expected
credit losses, entities assume that current
conditions as of the balance sheet date do
not change for the remaining life of the
asset.
January 1, 2026
The Corporation does not expect that
the adoption of this standard will have a
significant impact on its financial
statements.
FASB ASU 2025-04,
Compensation - Stock
Compensation (Topic 718)
and Revenue from
Contracts with Customers
(Topic 606) - Clarifications
to Share-Based
Consideration Payable to
a Customer
The FASB issued ASU 2025-04 in May
2025, which clarifies the accounting for
share-based awards granted as
consideration payable to a customer. The
ASU expands the definition of performance
condition for share-based consideration
under ASC 718 and eliminates the forfeiture
policy election for service conditions. It also
confirms that the variable consideration
constraint in ASC 606 does not apply to
such awards.
January 1, 2027
The Corporation does not expect to be
impacted by the adoption of this ASU
since it does not grant share-based
payment awards to customers.
Accounting Standards Updates Not Yet Adopted
Description
Date of adoption
Effect on the financial statements
FASB ASU 2025-03,
Business Combinations
(Topic 805) and
Consolidation (Topic 810)
- Determining the
Accounting Acquirer in the
Acquisition of a Variable
Interest Entity
The FASB issued ASU 2025-03 in May
2025 which requires that an entity consider
the factors in paragraphs 805-10-55-12
through 55-15 when it is involved in an
acquisition transaction effected primarily by
exchanging equity interests when the legal
acquiree is a variable interest entity ("VIE")
that meets the definition of a business to
determine which entity is the accounting
acquirer. This replaces the previous
requirement that the primary beneficiary
always is the acquirer.
January 1, 2027
The Corporation is currently evaluating
any impact that the adoption of this
guidance will have on its financial
statements and presentation and
disclosures.
FASB ASU 2024-04, Debt
- Debt with Conversion
and Other Options
(Subtopic 470- 20) -
Induced Conversions of
Convertible Debt
Instruments
The FASB issued ASU 2024-04 in
November 2024, which clarifies the
requirements for determining whether
certain settlements of convertible debt
instruments should be accounted for as an
induced conversion. Also it makes
additional clarifications to assist
stakeholders in applying the guidance. The
ASU clarifies that the incorporation,
elimination, or modification of a volume-
weighted average price ("VWAP") formula
does not automatically cause a settlement
to be accounted for as an extinguishment
and that the induced conversion guidance
applies to a convertible debt instrument that
is not currently convertible as long as it had
a substantive conversion feature as of both
its issuance date and the date the
inducement offer is accepted.
January 1, 2026
The Corporation is currently evaluating
any impact that the adoption of this
guidance will have on its financial
statements and presentation and
disclosures.
FASB ASU 2024-03,
Income Statement -
Reporting Comprehensive
Income - Expense
Disaggregation
Disclosures (Subtopic
220-40) - Disaggregation
of Income Statement
Expenses (As updated by
ASU 2025-01)
The FASB issued ASU 2024-03 in
November 2024, which requires public
entities to disclose additional information
about specific expense categories in the
notes to financial statements at interim and
annual reporting periods to improve
financial transparency.
For fiscal years
beginning on
January 1, 2027
For interim periods
within fiscal years
beginning after
January 1, 2028
The Corporation is currently evaluating
the impact that the adoption of this
guidance will have on its financial
statements and presentation and
disclosures.
FASB ASU 2023-09,
Income Tax (Topic 740) -
Improvements to Income
Tax Disclosures
The FASB issued ASU 2023-09 in
December 2023, which amends ASC Topic
740 by enhancing disclosures regarding
rate reconciliation and requiring the
disclosure of income taxes paid, income (or
loss) 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.
January 1, 2026
The Corporation will prospectively
adopt ASU 2023-09 for it's
Consolidated Financial Statements in
the 2025 Form 10-K. The adoption of
this standard will result in the inclusion
of certain new categories in the
effective income tax rate and income
tax expense tabular disclosures, as well
as the disclosure of income taxes paid,
within the income taxes note.
Accounting Standards Updates Not Yet Adopted
Description
Date of adoption
Effect on the financial statements
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
2023 which modifies the disclosure or
presentation requirements of various
subtopics in the Codification with the
purpose of aligning U.S. GAAP
requirements with those of the SEC under
Regulation S-X and S-K.
The date on which
the SEC removes
related disclosure
requirements. If by
June 30, 2027 the
SEC has not
removed the
applicable
requirements, the
standard will not
become
effective.
The Corporation does not expect to be
impacted by the adoption of this ASU
since it is subject to SEC's current
disclosure and presentation
requirements under Regulation S-X and
S-K.
Note 4 - Restrictions on cash and due from banks and certain securities
BPPR is required by regulatory agencies to maintain average reserve balances with the Federal Reserve Bank of New York (the
“Fed”) or other banks. Required average reserve balances in BPPR amounted to $
2.6
billion at September 30, 2025 (December 31,
2024 - $
2.6
billion). Cash and due from banks, as well as other highly liquid securities, are used to cover these required average
reserve balances.
At September 30, 2025, the Corporation held $
63
million in restricted assets in the form of funds deposited in money market
accounts, debt securities available for sale and equity securities (December 31, 2024 - $
61
million). The restricted 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, fair value, weighted average yield and
contractual maturities of debt securities available-for-sale at September 30, 2025 and December 31, 2024.
At September 30, 2025
Gross
Gross
Weighted
Amortized
unrealized
unrealized
Fair
average
(In thousands)
cost
gains
losses
value
yield
U.S. Treasury securities
Within 1 year
10,182,136
2,162
8,399
10,175,899
3.68
After 1 to 5 years
5,531,033
23,619
23,786
5,530,866
3.73
Total U.S. Treasury securities
15,713,169
25,781
32,185
15,706,765
3.70
Collateralized mortgage obligations - federal agencies
After 1 to 5 years
6,213
135
6,078
1.52
After 5 to 10 years
12,050
549
11,501
2.51
After 10 years
93,542
119
6,540
87,121
2.92
Total collateralized mortgage obligations - federal agencies
111,805
119
7,224
104,700
2.80
Mortgage-backed securities - federal agencies
Within 1 year
15,380
78
15,302
2.23
After 1 to 5 years
82,670
8
2,102
80,576
2.30
After 5 to 10 years
836,304
247
48,922
787,629
2.10
After 10 years
4,859,779
907
869,985
3,990,701
1.70
Total mortgage-backed securities - federal agencies
5,794,133
1,162
921,087
4,874,208
1.77
Other
Within 1 year
500
500
4.33
After 1 to 5 years
250
250
4.79
Total other
750
750
4.48
Total debt securities available-for-sale
[1]
21,619,857
27,062
960,496
20,686,423
3.18
[1]
Includes $
14.9
billion pledged to secure government and trust deposits, credit facilities and loan servicing agreements that the secured parties
are not permitted to sell or repledge the collateral, of which $
13.9
billion serve as collateral for public funds. The Corporation had unpledged
Available for Sale securities with a fair value of $
5.7
billion that could be used to increase its borrowing facilities.
At December 31, 2024
Gross
Gross
Weighted
Amortized
unrealized
unrealized
Fair
average
(In thousands)
cost
gains
losses
value
yield
U.S. Treasury securities
Within 1 year
10,555,397
1,282
46,275
10,510,404
3.33
After 1 to 5 years
2,547,936
151
63,381
2,484,706
3.07
Total U.S. Treasury securities
13,103,333
1,433
109,656
12,995,110
3.28
Collateralized mortgage obligations - federal agencies
After 1 to 5 years
10,538
345
10,193
1.53
After 5 to 10 years
15,334
904
14,430
2.24
After 10 years
104,168
132
8,639
95,661
2.76
Total collateralized mortgage obligations - federal agencies
130,040
132
9,888
120,284
2.60
Mortgage-backed securities - federal agencies
Within 1 year
776
5
771
1.65
After 1 to 5 years
79,542
8
2,700
76,850
2.35
After 5 to 10 years
733,506
82
45,078
688,510
2.37
After 10 years
5,468,448
337
1,106,657
4,362,128
1.67
Total mortgage-backed securities - federal agencies
6,282,272
427
1,154,440
5,128,259
1.75
Other
Within 1 year
500
500
5.00
After 1 to 5 years
1,750
1,750
5.50
Total other
2,250
2,250
5.39
Total debt securities available-for-sale
[1]
19,517,895
1,992
1,273,984
18,245,903
2.78
[1]
Includes $
13.9
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 $
12.9
billion serve as collateral for
public funds. The Corporation had unpledged Available for Sale securities with a fair value of $
4.3
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 does not give effect to
changes in fair value.
Securities not due on a single contractual maturity date, such as mortgage-backed securities and collateralized mortgage
obligations, are classified based on the period of final contractual maturity. The expected maturities of collateralized mortgage
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.
At September 30, 2025, the Corporation did not intend to sell and did not believe that it was more likely than not that it would be
required to sell debt securities classified as available-for-sale. There were
no
sales of debt securities classified as available-for-sale
during the nine months ended September 30, 2025 and 2024.
The following tables present the Corporation’s fair value and gross unrealized losses of debt securities available-for-sale,
aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at
September 30, 2025 and December 31, 2024.
At September 30, 2025
Less than 12 months
12 months or more
Total
Gross
Gross
Gross
Fair
unrealized
Fair
unrealized
Fair
unrealized
(In thousands)
value
losses
value
losses
value
losses
U.S. Treasury securities
4,241,874
9,041
1,656,231
23,144
5,898,105
32,185
Collateralized mortgage obligations - federal agencies
6,506
9
87,499
7,215
94,005
7,224
Mortgage-backed securities -federal agencies
18,000
480
4,798,315
920,607
4,816,315
921,087
Total debt securities available-for-sale in an unrealized loss position
4,266,380
9,530
6,542,045
950,966
10,808,425
960,496
At December 31, 2024
Less than 12 months
12 months or more
Total
Gross
Gross
Gross
Fair
unrealized
Fair
unrealized
Fair
unrealized
(In thousands)
value
losses
value
losses
value
losses
U.S. Treasury securities
2,309,894
24,646
3,638,092
85,010
5,947,986
109,656
Collateralized mortgage obligations - federal agencies
4,878
27
102,160
9,861
107,038
9,888
Mortgage-backed securities - federal agencies
70,777
3,175
5,031,414
1,151,265
5,102,191
1,154,440
Total debt securities available-for-sale in an unrealized loss position
2,385,549
27,848
8,771,666
1,246,136
11,157,215
1,273,984
As of September 30, 2025, the portfolio of available-for-sale debt securities reflects gross unrealized losses of $
1.0
billion
(December 31, 2024 - $
1.3
billion), driven mainly by mortgage-backed securities, impacted by the higher-interest rate environment
and the portfolio’s longer duration. 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”). These securities carry an explicit or implicit guarantee from the 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 following tables present the amortized cost, allowance for credit losses, gross unrealized gains and losses, approximate fair
value, weighted average yield and contractual maturities of debt securities held-to-maturity at September 30, 2025 and December
31, 2024.
At September 30, 2025
Allowance
Carrying
Value
Gross
Gross
Weighted
Amortized
Book
[1]
for Credit
Net of
unrealized
unrealized
Fair
average
(In thousands)
cost
Value
Losses
Allowance
gains
losses
value
yield
U.S. Treasury securities
Within 1 year
2,107,187
2,071,286
2,071,286
2,554
762
2,073,078
1.50
After 1 to 5 years
5,607,069
5,302,786
5,302,786
29,216
5,332,002
1.24
Total U.S. Treasury securities
7,714,256
7,374,072
7,374,072
31,770
762
7,405,080
1.31
Obligations of Puerto Rico, States and
political subdivisions
Within 1 year
2,605
2,605
9
2,596
7
2,603
6.43
After 1 to 5 years
12,530
12,530
44
12,486
28
80
12,434
3.48
After 5 to 10 years
450
450
15
435
15
450
5.81
After 10 years
36,012
36,012
5,769
30,243
3,205
1,802
31,646
1.42
Total obligations of Puerto Rico, States and
political subdivisions
51,597
51,597
5,837
45,760
3,255
1,882
47,133
2.21
Collateralized mortgage obligations - federal
agencies
After 10 years
1,506
1,506
1,506
191
1,315
2.87
Total collateralized mortgage obligations -
federal agencies
1,506
1,506
1,506
191
1,315
2.87
Securities in wholly owned statutory business
trusts
After 5 to 10 years
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
Total debt securities held-to-maturity [2]
7,773,319
7,433,135
5,837
7,427,298
35,025
2,835
7,459,488
1.32
[1]
Book value includes $
340
million of 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]
Includes $
7.3
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 $
89.7
million that could be used to increase its borrowing facilities.
At December 31, 2024
Allowance
Carrying
Value
Gross
Gross
Weighted
Amortized
Book
[1]
for Credit
Net of
unrealized
unrealized
Fair
average
(In thousands)
cost
Value
Losses
Allowance
gains
losses
value
yield
U.S. Treasury securities
Within 1 year
599,910
599,910
599,910
4,498
595,412
2.76
After 1 to 5 years
7,572,435
7,093,508
7,093,508
65,096
7,028,412
1.28
Total U.S. Treasury securities
8,172,345
7,693,418
7,693,418
69,594
7,623,824
1.39
Obligations of Puerto Rico, States and
political subdivisions
Within 1 year
2,440
2,440
5
2,435
3
2,438
6.39
After 1 to 5 years
16,454
16,454
80
16,374
47
80
16,341
3.69
After 5 to 10 years
655
655
22
633
20
653
5.81
After 10 years
37,633
37,633
5,210
32,423
2,318
2,596
32,145
1.42
Total obligations of Puerto Rico, States and
political subdivisions
57,182
57,182
5,317
51,865
2,388
2,676
51,577
2.34
Collateralized mortgage obligations - federal
agencies
After 10 years
1,518
1,518
1,518
214
1,304
2.87
Total collateralized mortgage obligations -
federal agencies
1,518
1,518
1,518
214
1,304
2.87
Securities in wholly owned statutory business
trusts
After 5 to 10 years
5,959
5,959
5,959
5,959
6.33
Total securities in wholly owned statutory
business trusts
5,959
5,959
5,959
5,959
6.33
Total debt securities held-to-maturity [2]
8,237,004
7,758,077
5,317
7,752,760
2,388
72,484
7,682,664
1.40
[1]
Book value includes $
479
million of 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.
[2]
Includes $
7.6
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 $
139.9
million that could be used to increase its borrowing facilities.
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 2 of the 2024 Form 10-K, 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. Accordingly, the Corporation applies a zero-credit
loss assumption and no allowance for credit losses (“ACL”) for these securities has been established.
At September 30, 2025 and December 31, 2024, the “Obligations of Puerto Rico, States and political subdivisions” classified as
held-to-maturity, included securities issued by municipalities of Puerto Rico that are generally not rated by a credit rating agency.
The Corporation performs periodic credit quality reviews of these securities and internally assigns standardized credit risk ratings
based on its evaluation. For the definitions of the obligor risk ratings, refer to the Credit Quality section of Note 8 to the Consolidated
Financial Statements. This includes $
8.7
million of general and special obligation bonds issued by three municipalities of Puerto
Rico, of which $
7.9
million have a “Pass” rating, that are payable primarily from certain property taxes imposed by the issuing
municipality (compared to $
13
million and $
11.1
million, respectively, at December 31, 2024).
At September 30, 2025, the portfolio of “Obligations of Puerto Rico, States and political subdivisions” also included $
36
million in
securities issued by the Puerto Rico Housing Finance Authority (“HFA”), a government instrumentality, for which the underlying
source of payment is second mortgage loans in Puerto Rico residential properties (not the government), but for which HFA, provides
a guarantee in the event of default and upon the satisfaction of certain other conditions (December 31, 2024 - $
million). These securities are not rated by a credit rating agency. Refer to Note 18 to the Consolidated Financial Statements for additional information on the Corporation’s exposure to the Puerto Rico Government
The Corporation assesses the credit risk associated with these securities by evaluating the refreshed FICO scores of a
representative sample of the underlying borrowers. As of September 30, 2025, the average refreshed FICO score for the sample,
comprised of
76
% of the nominal value of the securities, used for the loss estimate was of
676
(compared to
72
% and
674
respectively, at December 31, 2024). The loss estimates for this portfolio was based on the methodology established under CECL
for similar loan obligations. The Corporation does not consider the government guarantee when estimating the credit losses
associated with this portfolio.
A
deterioration of the Puerto Rico economy or of the fiscal health of the Government of Puerto Rico and/or its instrumentalities
(including if any of the issuing municipalities become subject to a debt restructuring proceeding under the Puerto Rico Oversight
Management and Economic Stability Act (“PROMESA”) could adversely affect the value of these securities, resulting in losses to the
Corporation.
At September 30, 2025 and December 31, 2024, the portfolio of “Obligations of Puerto Rico, States and political subdivisions” also
included $
6.9
million in securities issued by the HFA for which the underlying source of payment is U.S. Treasury securities. 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.
Delinquency status
At September 30, 2025 and December 31, 2024, 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 allowance for credit losses related to the Obligations of Puerto Rico and the States and Political subdivisions securities at
September 30, 2025 was $
5.8
million (December 31, 2024 - $
5.3
million).
Note 7 – Loans
For a summary of the accounting policies related to loans, interest recognition and allowance for credit losses refer to Note 2 –
Summary of Significant Accounting Policies of the 2024 Form 10-K.
The following table presents the Corporation's loan purchases (including repurchases) for the quarters and nine months ended
September 30, 2025 and 2024 by class of loans:
Quarters ended September 30,
Nine months ended September 30,
(In thousands)
2025
2024
2025
2024
Commercial
40,797
32,484
115,683
247,906
Mortgage
122,452
97,586
369,049
268,239
Ending balance
163,249
130,070
484,732
516,145
The following table presents the Corporation’s whole-loan sales for the quarters and nine months ended September 30, 2025 and
2024 by class of loans:
Quarters ended September 30,
Nine months ended September 30,
(In thousands)
2025
2024
2025
2024
Commercial
19,998
47,347
Construction
9,338
11,656
Mortgage
11,393
9,126
26,780
32,882
Ending balance
31,391
9,126
83,465
44,538
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
September 30, 2025 and December 31, 2024.
September 30, 2025
BPPR
Past due
Past due 90 days or more
30-59
60-89
90 days
Total
Non-accrual
Accruing
(In thousands)
days
days
or more
past due
Current
Loans HIP
loans
loans
Commercial multi-family
1,357
1
174
1,532
300,834
302,366
174
Commercial real estate:
Non-owner occupied
17,422
292
37,043
54,757
3,247,988
3,302,745
37,043
Owner occupied
2,004
152
25,619
27,775
1,167,509
1,195,284
25,619
Commercial and industrial
4,237
2,032
178,224
184,493
5,567,505
5,751,998
173,245
4,979
Construction
2,898
1,691
4,589
299,364
303,953
Mortgage
252,650
118,092
314,103
684,845
6,548,261
7,233,106
139,958
174,145
Leasing
23,537
5,372
7,747
36,656
1,961,995
1,998,651
7,747
Consumer:
Credit cards
13,556
9,917
25,625
49,098
1,176,469
1,225,567
25,625
Home equity lines of credit
1,693
1,693
Personal
19,826
11,353
18,375
49,554
1,773,594
1,823,148
18,375
Auto
107,907
21,874
49,432
179,213
3,671,740
3,850,953
49,432
Other
2,907
245
2,195
5,347
166,980
172,327
1,776
419
Total
448,301
171,021
658,537
1,277,859
25,883,932
27,161,791
453,369
205,168
September 30, 2025
Popular U.S.
Past due
Past due 90 days or more
30-59
60-89
90 days
Total
Non-accrual
Accruing
(In thousands)
days
days
or more
past due
Current
Loans HIP
loans
loans
Commercial multi-family
2,638
8,467
11,105
2,176,118
2,187,223
8,467
Commercial real estate:
Non-owner occupied
84
7,083
7,167
2,152,668
2,159,835
7,083
Owner occupied
15,171
217
15,388
1,880,052
1,895,440
Commercial and industrial
14,949
1,434
16,383
2,477,258
2,493,641
1,246
188
Construction
1,300,659
1,300,659
Mortgage
1,298
4,988
27,809
34,095
1,291,207
1,325,302
27,809
Consumer:
Home equity lines of
credit
395
335
3,257
3,987
73,210
77,197
3,257
Personal
1,006
990
941
2,937
74,240
77,177
941
Other
30
30
8,863
8,893
30
Total
32,903
9,168
49,021
91,092
11,434,275
11,525,367
48,833
September 30, 2025
Popular, Inc.
Past due
Past due 90 days or more
30-59
60-89
90 days
Total
Non-accrual
Accruing
(In thousands)
days
days
or more
past due
Current
Loans HIP
[2] [3]
loans
loans
Commercial multi-family
1,357
2,639
8,641
12,637
2,476,952
2,489,589
8,641
Commercial real estate:
Non-owner occupied
17,506
292
44,126
61,924
5,400,656
5,462,580
44,126
Owner occupied
17,175
369
25,619
43,163
3,047,561
3,090,724
25,619
Commercial and industrial
19,186
2,032
179,658
200,876
8,044,763
8,245,639
174,491
5,167
Construction
2,898
1,691
4,589
1,600,023
1,604,612
Mortgage
[1]
253,948
123,080
341,912
718,940
7,839,468
8,558,408
167,767
174,145
Leasing
23,537
5,372
7,747
36,656
1,961,995
1,998,651
7,747
Consumer:
Credit cards
13,556
9,917
25,625
49,098
1,176,469
1,225,567
25,625
Home equity lines of credit
395
335
3,257
3,987
74,903
78,890
3,257
Personal
20,832
12,343
19,316
52,491
1,847,834
1,900,325
19,316
Auto
107,907
21,874
49,432
179,213
3,671,740
3,850,953
49,432
Other
2,907
245
2,225
5,377
175,843
181,220
1,806
419
Total
481,204
180,189
707,558
1,368,951
37,318,207
38,687,158
502,202
205,356
[1]
At September 30, 2025, mortgage loans held-in-portfolio include $
3
.0 billion of loans that carry certain guarantees from the FHA or the VA, for
which the Corporation’s policy is to exclude them from non-performing status, of which $
174
million are 90 days or more past due. The portfolio of
guaranteed loans includes $
49
million of residential mortgage loans in Puerto Rico that are no longer accruing interest as of September 30, 2025.
The Corporation has $
29
million in reverse mortgage loans in Puerto Rico which are guaranteed by FHA, but which are currently not accruing
interest at September 30, 2025.
[2]
Loans held-in-portfolio are net of $
425
million in unearned income and exclude $
8
million in loans held-for-sale.
[3]
Includes $
21.9
billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral,
of which $
7.5
billion were pledged at the Federal Home Loan Bank ("FHLB") as collateral for borrowings and $
14.4
billion at the Federal Reserve
Bank ("FRB") for discount window borrowings. As of September 30, 2025, the Corporation had an available borrowing facility with the FHLB and
the discount window of FRB of $
4.2
billion and $
11.2
billion, respectively.
December 31, 2024
BPPR
Past due
Past due 90 days or more
30-59
60-89
90 days
Total
Non-accrual
Accruing
(In thousands)
days
days
or more
past due
Current
Loans HIP
loans
loans
Commercial multi-family
1,491
113
79
1,683
306,318
308,001
79
Commercial real estate:
Non-owner occupied
3,103
586
6,429
10,118
3,236,385
3,246,503
6,429
Owner occupied
11,054
808
25,258
37,120
1,338,791
1,375,911
25,258
Commercial and industrial
5,738
2,712
23,895
32,345
5,314,549
5,346,894
19,335
4,560
Construction
1,039
1,039
211,251
212,290
Mortgage
262,222
116,694
365,759
744,675
6,065,206
6,809,881
158,442
207,317
Leasing
23,991
6,062
9,588
39,641
1,885,764
1,925,405
9,588
Consumer:
Credit cards
17,399
11,719
29,960
59,078
1,158,975
1,218,053
29,960
Home equity lines of credit
16
129
145
1,895
2,040
Personal
19,503
13,005
20,269
52,777
1,697,600
1,750,377
20,269
Auto
111,358
27,858
51,792
191,008
3,632,429
3,823,437
51,792
Other
1,816
277
1,312
3,405
156,824
160,229
899
413
Total
458,730
179,963
534,341
1,173,034
25,005,987
26,179,021
292,091
242,250
December 31, 2024
Popular U.S.
Past due
Past due 90 days or more
30-59
60-89
90 days
Total
Non-accrual
Accruing
(In thousands)
days
days
or more
past due
Current
Loans HIP
loans
loans
Commercial multi-family
5,443
8,700
14,143
2,077,476
2,091,619
8,700
Commercial real estate:
Non-owner occupied
6,792
8,015
14,807
2,101,925
2,116,732
8,015
Owner occupied
5,191
5,191
1,776,644
1,781,835
5,191
Commercial and industrial
10,336
5,323
1,938
17,597
2,377,071
2,394,668
1,748
190
Construction
1,051,502
1,051,502
Mortgage
18,148
5,417
29,890
53,455
1,250,847
1,304,302
29,890
Consumer:
Credit cards
26
26
Home equity lines of credit
530
986
3,393
4,909
66,622
71,531
3,393
Personal
1,808
1,509
1,741
5,058
99,809
104,867
1,741
Other
514
11
525
11,024
11,549
11
Total
38,128
18,678
58,879
115,685
10,812,946
10,928,631
58,689
December 31, 2024
Popular, Inc.
Past due
Past due 90 days or more
30-59
60-89
90 days
Total
Non-accrual
Accruing
(In thousands)
days
days
or more
past due
Current
Loans HIP
[2] [3]
loans
loans
Commercial multi-family
1,491
5,556
8,779
15,826
2,383,794
2,399,620
8,779
Commercial real estate:
Non-owner occupied
9,895
586
14,444
24,925
5,338,310
5,363,235
14,444
Owner occupied
11,054
808
30,449
42,311
3,115,435
3,157,746
30,449
Commercial and industrial
16,074
8,035
25,833
49,942
7,691,620
7,741,562
21,083
4,750
Construction
1,039
1,039
1,262,753
1,263,792
Mortgage
[1]
280,370
122,111
395,649
798,130
7,316,053
8,114,183
188,332
207,317
Leasing
23,991
6,062
9,588
39,641
1,885,764
1,925,405
9,588
Consumer:
Credit cards
17,399
11,719
29,960
59,078
1,159,001
1,218,079
29,960
Home equity lines of credit
546
1,115
3,393
5,054
68,517
73,571
3,393
Personal
21,311
14,514
22,010
57,835
1,797,409
1,855,244
22,010
Auto
111,358
27,858
51,792
191,008
3,632,429
3,823,437
51,792
Other
2,330
277
1,323
3,930
167,848
171,778
910
413
Total
496,858
198,641
593,220
1,288,719
35,818,933
37,107,652
350,780
242,440
[1]
At December 31, 2024 mortgage loans held-in-portfolio include $
2.6
billion of loans that carry certain guarantees from the FHA or the VA, for
which the Corporation’s policy is to exclude them from non-performing status, of which $
207
million are 90 days or more past due. The portfolio of
guaranteed loans includes $
65
million of residential mortgage loans in Puerto Rico that are no longer accruing interest as of December 31, 2024.
The Corporation has $
31
million in reverse mortgage loans in Puerto Rico which are guaranteed by FHA, but which are currently not accruing
interest at December 31, 2024.
[2]
Loans held-in-portfolio are net of $
415
million in unearned income and exclude $
5
million in loans held-for-sale.
[3]
Includes $
16.8
billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral,
of which $
7.3
billion were pledged at the FHLB as collateral for borrowings and $
9.5
billion at the FRB for discount window borrowings. As of
December 31, 2024, the Corporation had an available borrowing facility with the FHLB and the discount window of FRB of $
3.8
billion and $
7
.0
billion, respectively.
The following tables present the amortized cost basis of non-accrual loans as of September 30, 2025 and December 31, 2024 by
class of loans:
September 30, 2025
BPPR
Popular U.S.
Popular, Inc.
(In thousands)
Non-accrual
with no
allowance
Non-accrual
with
allowance
Non-accrual
with no
allowance
Non-accrual
with
allowance
Non-accrual
with no
allowance
Non-accrual
with
allowance
Commercial multi-family
174
8,137
330
8,137
504
Commercial real estate non-owner occupied
34,986
2,057
6,994
89
41,980
2,146
Commercial real estate owner occupied
16,618
9,001
16,618
9,001
Commercial and industrial
6,504
166,741
1,246
6,504
167,987
Mortgage
62,445
77,513
1,117
26,692
63,562
104,205
Leasing
602
7,145
602
7,145
Consumer:
HELOCs
3,257
3,257
Personal
3,264
15,111
941
3,264
16,052
Auto
2,263
47,169
2,263
47,169
Other
363
1,413
30
363
1,443
Total
127,045
326,324
16,248
32,585
143,293
358,909
December 31, 2024
BPPR
Popular U.S.
Popular, Inc.
(In thousands)
Non-accrual
with no
allowance
Non-accrual
with
allowance
Non-accrual
with no
allowance
Non-accrual
with
allowance
Non-accrual
with no
allowance
Non-accrual
with
allowance
Commercial multi-family
79
8,700
8,700
79
Commercial real estate non-owner occupied
3,450
2,979
7,115
900
10,565
3,879
Commercial real estate owner occupied
17,767
7,491
4,957
234
22,724
7,725
Commercial and industrial
9,020
10,315
1,748
9,020
12,063
Mortgage
66,176
92,266
1,069
28,821
67,245
121,087
Leasing
500
9,088
500
9,088
Consumer:
HELOCs
3,393
3,393
Personal
2,960
17,309
1,741
2,960
19,050
Auto
1,992
49,800
1,992
49,800
Other
899
11
910
Total
101,865
190,226
21,841
36,848
123,706
227,074
The Corporation has designated loans classified as collateral dependent for which the ACL is measured based on the fair value of
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 fair value of the collateral is based on
appraisals, which may be adjusted due to their age, 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 September 30, 2025 include $
143
million in collateral dependent loans (December
31, 2024 - $
124
million). The Corporation recognized $
3
million in interest income on non-accrual loans during the nine months
ended September 30, 2025 (September 30, 2024 - $
3
million).
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 September 30, 2025 and December 31,
2024:
September 30, 2025
(In thousands)
Real Estate
Auto
Equipment
Accounts
Receivables
Other
Total
BPPR
Commercial multi-family
1,221
1,221
Commercial real estate:
Non-owner occupied
128,209
128,209
Owner occupied
23,060
23,060
Commercial and industrial
2,409
4,404
1,383
2,781
10,977
Mortgage
70,547
70,547
Leasing
1,597
1,597
Consumer:
Personal
3,724
3,724
Auto
16,694
16,694
Other
8
363
371
Total BPPR
229,170
18,299
4,404
1,383
3,144
256,400
Popular U.S.
Commercial multi-family
13,915
13,915
Commercial real estate:
Non-owner occupied
65,645
65,645
Mortgage
1,651
1,651
Total Popular U.S.
81,211
81,211
Popular, Inc.
Commercial multi-family
15,136
15,136
Commercial real estate:
Non-owner occupied
193,854
193,854
Owner occupied
23,060
23,060
Commercial and industrial
2,409
4,404
1,383
2,781
10,977
Mortgage
72,198
72,198
Leasing
1,597
1,597
Consumer:
Personal
3,724
3,724
Auto
16,694
16,694
Other
8
363
371
Total Popular, Inc.
310,381
18,299
4,404
1,383
3,144
337,611
December 31, 2024
(In thousands)
Real Estate
Auto
Equipment
Other
Total
BPPR
Commercial multi-family
1,278
1,278
Commercial real estate:
Non-owner occupied
145,974
145,974
Owner occupied
23,361
23,361
Commercial and industrial
2,754
11,593
14,347
Construction
576
576
Mortgage
77,910
77,910
Leasing
1,437
1
1,438
Consumer:
Personal
3,347
3,347
Auto
15,782
15,782
Other
16
16
Total BPPR
255,200
17,219
1
11,609
284,029
Popular U.S.
Commercial multi-family
14,517
14,517
Commercial real estate:
Non-owner occupied
7,116
7,116
Owner occupied
4,956
4,956
Commercial and industrial
18
1,154
1,172
Mortgage
1,430
1,430
Total Popular U.S.
28,019
18
1,154
29,191
Popular, Inc.
Commercial multi-family
15,795
15,795
Commercial real estate:
Non-owner occupied
153,090
153,090
Owner occupied
28,317
28,317
Commercial and industrial
2,754
18
12,747
15,519
Construction
576
576
Mortgage
79,340
79,340
Leasing
1,437
1
1,438
Consumer:
Personal
3,347
3,347
Auto
15,782
15,782
Other
16
16
Total Popular, Inc.
283,219
17,219
19
12,763
313,220
Note 8 – Allowance for credit losses – loans held-in-portfolio
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 expected
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 financial assets be recorded as an increase to the purchase price, with subsequent changes to the
allowance recorded as a credit loss expense. The provision for credit losses recorded in current operations 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 factors which include the impact of loan modifications, with macroeconomic
expectations to derive the lifetime expected loss.
At September 30, 2025, the Corporation estimated the ACL by weighting the outputs of optimistic, baseline, and pessimistic
scenarios. The weightings applied are subject to evaluation on a quarterly basis as part of the ACL’s governance process. During
the first quarter of 2025, the Corporation assigned equal probability weights to the baseline and pessimistic scenarios in response to
economic uncertainty, the optimistic scenario being the lowest of probabilities. During the second quarter of 2025, the Corporation
moderately reduced the probability weight for the pessimistic scenario based on changes in the economic outlook and a
reassessment of uncertainty compared to the first quarter. The net impact of these two changes in the assigned weights on the ACL
levels for the nine months ended September 30, 2025 was $
13.7
million in additional reserves. There were no changes to the
probability weights during the third quarter of 2025. The probability weight for the pessimistic scenario remains above the levels
observed in 2024, given the ongoing economic uncertainty.
The following tables present the changes in the ACL of loans held-in-portfolio and unfunded commitments for the quarters and nine
months ended September 30, 2025 and 2024.
For the quarter ended September 30, 2025
BPPR
Allowance for
Beginning
credit losses
credit losses -
Ending
(In thousands)
Balance
(benefit)
PCD Loans
Charge-offs
Recoveries
Balance
Allowance for credit losses - loans:
Commercial
Commercial multi-family
3,696
(177)
2
3,521
Commercial real estate non-owner occupied
43,139
10,931
(13,490)
876
41,456
Commercial real estate owner occupied
35,848
(2,211)
947
34,584
Commercial and industrial
123,202
30,220
(2,801)
1,334
151,955
Total Commercial
205,885
38,763
(16,291)
3,159
231,516
Construction
3,075
370
3,445
Mortgage
74,966
337
6
(585)
2,801
77,525
Leasing
20,040
1,234
(4,017)
1,963
19,220
Consumer
Credit cards
92,306
10,212
(18,139)
2,829
87,208
Home equity lines of credit
54
(95)
89
48
Personal
92,891
13,195
(19,218)
3,533
90,401
Auto
182,274
7,581
(19,175)
7,139
177,819
Other
7,758
1,042
(759)
132
8,173
Total Consumer
375,283
31,935
(57,291)
13,722
363,649
Total - Loans
679,249
72,639
6
(78,184)
21,645
695,355
Allowance for credit losses - unfunded commitments:
Commercial
5,876
943
6,819
Construction
1,869
(127)
1,742
Ending balance - unfunded commitments [1]
7,745
816
8,561
[1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.
For the quarter ended September 30, 2025
Popular U.S.
Beginning
credit losses
Ending
(In thousands)
Balance
(benefit)
Charge-offs
Recoveries
Balance
Allowance for credit losses - loans:
Commercial
Commercial multi-family
13,085
(84)
60
13,061
Commercial real estate non-owner occupied
15,978
1,411
17,389
Commercial real estate owner occupied
13,203
1,388
16
14,607
Commercial and industrial
18,160
(148)
(722)
62
17,352
Total Commercial
60,426
2,567
(722)
138
62,409
Construction
7,504
155
7,659
Mortgage
10,209
(789)
36
9,456
Consumer
Home equity lines of credit
1,330
(253)
423
1,500
Personal
10,763
183
(1,629)
520
9,837
Other
4
15
(25)
10
4
Total Consumer
12,097
(55)
(1,654)
953
11,341
Total - Loans
90,236
1,878
(2,376)
1,127
90,865
Allowance for credit losses - unfunded commitments:
Commercial
1,935
(7)
1,928
Construction
3,289
(100)
3,189
Consumer
84
61
145
Ending balance - unfunded commitments [1]
5,308
(46)
5,262
[1]
Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.
For the quarter ended September 30, 2025
Popular Inc.
Allowance for
Beginning
credit losses
credit losses -
Ending
(In thousands)
Balance
(benefit)
PCD Loans
Charge-offs
Recoveries
Balance
Allowance for credit losses - loans:
Commercial
Commercial multi-family
16,781
(261)
62
16,582
Commercial real estate non-owner occupied
59,117
12,342
(13,490)
876
58,845
Commercial real estate owner occupied
49,051
(823)
963
49,191
Commercial and industrial
141,362
30,072
(3,523)
1,396
169,307
Total Commercial
266,311
41,330
(17,013)
3,297
293,925
Construction
10,579
525
11,104
Mortgage
85,175
(452)
6
(585)
2,837
86,981
Leasing
20,040
1,234
(4,017)
1,963
19,220
Consumer
Credit cards
92,306
10,212
(18,139)
2,829
87,208
Home equity lines of credit
1,384
(348)
512
1,548
Personal
103,654
13,378
(20,847)
4,053
100,238
Auto
182,274
7,581
(19,175)
7,139
177,819
Other
7,762
1,057
(784)
142
8,177
Total Consumer
387,380
31,880
(58,945)
14,675
374,990
Total - Loans
769,485
74,517
6
(80,560)
22,772
786,220
Allowance for credit losses - unfunded commitments:
Commercial
7,811
936
8,747
Construction
5,158
(227)
4,931
Consumer
84
61
145
Ending balance - unfunded commitments [1]
13,053
770
13,823
[1]
Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.
For the nine months ended September 30, 2025
BPPR
Allowance for
Beginning
credit losses
credit losses -
Ending
(In thousands)
Balance
(benefit)
PCD Loans
Charge-offs
Recoveries
Balance
Allowance for credit losses - loans:
Commercial
Commercial multi-family
2,783
728
10
3,521
Commercial real estate non-owner occupied
44,852
8,172
(13,576)
2,008
41,456
Commercial real estate owner occupied
37,355
(5,129)
(103)
2,461
34,584
Commercial and industrial
130,136
23,194
(8,579)
7,204
151,955
Total Commercial
215,126
26,965
(22,258)
11,683
231,516
Construction
2,743
702
3,445
Mortgage
72,901
(2,533)
15
(1,570)
8,712
77,525
Leasing
16,419
10,863
(12,543)
4,481
19,220
Consumer
Credit cards
99,130
37,128
(57,015)
7,965
87,208
Home equity lines of credit
54
(516)
(25)
535
48
Personal
91,296
48,904
(60,724)
10,925
90,401
Auto
165,995
43,904
(53,649)
21,569
177,819
Other
7,002
3,062
(2,339)
448
8,173
Total Consumer
363,477
132,482
(173,752)
41,442
363,649
Total - Loans
670,666
168,479
15
(210,123)
66,318
695,355
Allowance for credit losses - unfunded commitments:
Commercial
6,725
94
6,819
Construction
1,663
79
1,742
Ending balance - unfunded commitments [1]
8,388
173
8,561
[1]
Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.
For the nine months ended September 30, 2025
Popular U.S.
Beginning
credit losses
Ending
(In thousands)
Balance
(benefit)
Charge-offs
Recoveries
Balance
Allowance for credit losses - loans:
Commercial
Commercial multi-family
6,453
7,110
(563)
61
13,061
Commercial real estate non-owner occupied
9,642
7,747
17,389
Commercial real estate owner occupied
12,473
1,581
(26)
579
14,607
Commercial and industrial
15,870
2,862
(1,918)
538
17,352
Total Commercial
44,438
19,300
(2,507)
1,178
62,409
Construction
8,521
(862)
7,659
Mortgage
9,508
(305)
253
9,456
Consumer
Home equity lines of credit
1,449
(1,188)
(46)
1,285
1,500
Personal
11,440
3,800
(7,175)
1,772
9,837
Other
2
50
(67)
19
4
Total Consumer
12,891
2,662
(7,288)
3,076
11,341
Total - Loans
75,358
20,795
(9,795)
4,507
90,865
Allowance for credit losses - unfunded commitments:
Commercial
1,662
266
1,928
Construction
5,409
(2,220)
3,189
Consumer
11
134
145
Ending balance - unfunded commitments [1]
7,082
(1,820)
5,262
[1]
Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.
For the nine months ended September 30, 2025
Popular Inc.
Allowance for
Beginning
credit losses
credit losses -
Ending
(In thousands)
Balance
(benefit)
PCD Loans
Charge-offs
Recoveries
Balance
Allowance for credit losses - loans:
Commercial
Commercial multi-family
9,236
7,838
(563)
71
16,582
Commercial real estate non-owner occupied
54,494
15,919
(13,576)
2,008
58,845
Commercial real estate owner occupied
49,828
(3,548)
(129)
3,040
49,191
Commercial and industrial
146,006
26,056
(10,497)
7,742
169,307
Total Commercial
259,564
46,265
(24,765)
12,861
293,925
Construction
11,264
(160)
11,104
Mortgage
82,409
(2,838)
15
(1,570)
8,965
86,981
Leasing
16,419
10,863
(12,543)
4,481
19,220
Consumer
Credit cards
99,130
37,128
(57,015)
7,965
87,208
Home equity lines of credit
1,503
(1,704)
(71)
1,820
1,548
Personal
102,736
52,704
(67,899)
12,697
100,238
Auto
165,995
43,904
(53,649)
21,569
177,819
Other
7,004
3,112
(2,406)
467
8,177
Total Consumer
376,368
135,144
(181,040)
44,518
374,990
Total - Loans
746,024
189,274
15
(219,918)
70,825
786,220
Allowance for credit losses - unfunded commitments:
Commercial
8,387
360
8,747
Construction
7,072
(2,141)
4,931
Consumer
11
134
145
Ending balance - unfunded commitments [1]
15,470
(1,647)
13,823
[1]
Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.
For the quarter ended September 30, 2024
BPPR
Allowance for
Beginning
credit losses
credit losses -
Ending
(In thousands)
Balance
(benefit)
PCD Loans
Charge-offs
Recoveries
Balance
Allowance for credit losses - loans:
Commercial
Commercial multi-family
3,303
(417)
2,886
Commercial real estate non-owner occupied
53,386
3,344
(69)
59
56,720
Commercial real estate owner occupied
39,375
(2,418)
(2)
1,556
38,511
Commercial and industrial
111,263
16,597
(6,190)
1,461
123,131
Total Commercial
207,327
17,106
(6,261)
3,076
221,248
Construction
3,638
(970)
1,036
3,704
Mortgage
73,900
(5,221)
3
(208)
4,102
72,576
Leasing
14,385
3,725
(3,630)
1,374
15,854
Consumer
Credit cards
86,313
21,238
(17,503)
2,646
92,694
Home equity lines of credit
83
(90)
(82)
158
69
Personal
94,021
20,232
(24,712)
2,526
92,067
Auto
157,449
20,765
(23,011)
6,110
161,313
Other
6,489
362
(728)
526
6,649
Total Consumer
344,355
62,507
(66,036)
11,966
352,792
Total - Loans
643,605
77,147
3
(76,135)
21,554
666,174
Allowance for credit losses - unfunded commitments:
Commercial
5,540
816
6,356
Construction
2,095
373
2,468
Ending balance - unfunded commitments [1]
7,635
1,189
8,824
[1]
Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.
For the quarter ended September 30, 2024
Popular U.S.
Beginning
credit losses
Ending
(In thousands)
Balance
(benefit)
Charge-offs
Recoveries
Balance
Allowance for credit losses - loans:
Commercial
Commercial multi-family
7,877
(1,126)
5
6,756
Commercial real estate non-owner occupied
10,849
53
(54)
62
10,910
Commercial real estate owner occupied
18,815
(4,430)
19
14,404
Commercial and industrial
15,219
(1,617)
(613)
241
13,230
Total Commercial
52,760
(7,120)
(667)
327
45,300
Construction
9,251
259
9,510
Mortgage
9,389
(361)
46
9,074
Consumer
Home equity lines of credit
1,643
22
(4)
124
1,785
Personal
13,427
2,799
(4,442)
691
12,475
Other
2
23
(28)
5
2
Total Consumer
15,072
2,844
(4,474)
820
14,262
Total - Loans
86,472
(4,378)
(5,141)
1,193
78,146
Allowance for credit losses - unfunded commitments:
Commercial
2,850
(1,080)
1,770
Construction
8,399
(609)
7,790
Ending balance - unfunded commitments [1]
11,249
(1,689)
9,560
[1]
Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.
For the quarter ended September 30, 2024
Popular Inc.
Allowance for
Beginning
credit losses
credit losses -
Ending
(In thousands)
Balance
(benefit)
PCD Loans
Charge-offs
Recoveries
Balance
Allowance for credit losses - loans:
Commercial
Commercial multi-family
11,180
(1,543)
5
9,642
Commercial real estate non-owner occupied
64,235
3,397
(123)
121
67,630
Commercial real estate owner occupied
58,190
(6,848)
(2)
1,575
52,915
Commercial and industrial
126,482
14,980
(6,803)
1,702
136,361
Total Commercial
260,087
9,986
(6,928)
3,403
266,548
Construction
12,889
(711)
1,036
13,214
Mortgage
83,289
(5,582)
3
(208)
4,148
81,650
Leasing
14,385
3,725
(3,630)
1,374
15,854
Consumer
Credit cards
86,313
21,238
(17,503)
2,646
92,694
Home equity lines of credit
1,726
(68)
(86)
282
1,854
Personal
107,448
23,031
(29,154)
3,217
104,542
Auto
157,449
20,765
(23,011)
6,110
161,313
Other
6,491
385
(756)
531
6,651
Total Consumer
359,427
65,351
(70,510)
12,786
367,054
Total - Loans
730,077
72,769
3
(81,276)
22,747
744,320
Allowance for credit losses - unfunded commitments:
Commercial
8,390
(264)
8,126
Construction
10,494
(236)
10,258
Ending balance - unfunded commitments [1]
18,884
(500)
18,384
[1]
Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.
For the nine months ended September 30, 2024
BPPR
Allowance for
Beginning
credit losses
credit losses -
Ending
(In thousands)
Balance
(benefit)
PCD Loans
Charge-offs
Recoveries
Balance
Allowance for credit losses - loans:
Commercial
Commercial multi-family
3,614
(729)
1
2,886
Commercial real estate non-owner occupied
53,754
2,607
(69)
428
56,720
Commercial real estate owner occupied
40,637
(2,567)
(2,787)
3,228
38,511
Commercial and industrial
107,577
31,413
(20,931)
5,072
123,131
Total Commercial
205,582
30,724
(23,787)
8,729
221,248
Construction
5,294
(2,626)
1,036
3,704
Mortgage
72,440
(11,959)
26
(999)
13,068
72,576
Leasing
9,708
14,787
(12,321)
3,680
15,854
Consumer
Credit cards
80,487
54,734
(50,318)
7,791
92,694
Home equity lines of credit
103
35
(373)
304
69
Personal
101,181
55,987
(72,354)
7,253
92,067
Auto
157,931
44,386
(59,787)
18,783
161,313
Other
7,132
672
(2,072)
917
6,649
Total Consumer
346,834
155,814
(184,904)
35,048
352,792
Total - Loans
639,858
186,740
26
(222,011)
61,561
666,174
Allowance for credit losses - unfunded commitments:
Commercial
5,062
1,294
6,356
Construction
1,618
850
2,468
Ending balance - unfunded commitments [1]
6,680
2,144
8,824
[1]
Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.
For the nine months ended September 30, 2024
Popular U.S.
Beginning
credit losses
Ending
(In thousands)
Balance
(benefit)
Charge-offs
Recoveries
Balance
Allowance for credit losses - loans:
Commercial
Commercial multi-family
10,126
(2,939)
(441)
10
6,756
Commercial real estate non-owner occupied
11,699
(903)
(54)
168
10,910
Commercial real estate owner occupied
16,227
(1,925)
102
14,404
Commercial and industrial
14,779
219
(2,372)
604
13,230
Total Commercial
52,831
(5,548)
(2,867)
884
45,300
Construction
7,392
2,018
100
9,510
Mortgage
10,774
(1,788)
(18)
106
9,074
Consumer
Home equity lines of credit
1,875
(741)
(25)
676
1,785
Personal
16,609
8,585
(14,750)
2,031
12,475
Other
2
46
(77)
31
2
Total Consumer
18,486
7,890
(14,852)
2,738
14,262
Total - Loans
89,483
2,572
(17,737)
3,828
78,146
Allowance for credit losses - unfunded commitments:
Commercial
1,851
(81)
1,770
Construction
8,446
(656)
7,790
Consumer
29
(29)
Ending balance - unfunded commitments [1]
10,326
(766)
9,560
[1]
Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.
For the nine months ended September 30, 2024
Popular Inc.
Allowance for
Beginning
credit losses
credit losses -
Ending
(In thousands)
Balance
(benefit)
PCD Loans
Charge-offs
Recoveries
Balance
Allowance for credit losses - loans:
Commercial
Commercial multi-family
13,740
(3,668)
(441)
11
9,642
Commercial real estate non-owner occupied
65,453
1,704
(123)
596
67,630
Commercial real estate owner occupied
56,864
(4,492)
(2,787)
3,330
52,915
Commercial and industrial
122,356
31,632
(23,303)
5,676
136,361
Total Commercial
258,413
25,176
(26,654)
9,613
266,548
Construction
12,686
(608)
1,136
13,214
Mortgage
83,214
(13,747)
26
(1,017)
13,174
81,650
Leasing
9,708
14,787
(12,321)
3,680
15,854
Consumer
Credit cards
80,487
54,734
(50,318)
7,791
92,694
Home equity lines of credit
1,978
(706)
(398)
980
1,854
Personal
117,790
64,572
(87,104)
9,284
104,542
Auto
157,931
44,386
(59,787)
18,783
161,313
Other
7,134
718
(2,149)
948
6,651
Total Consumer
365,320
163,704
(199,756)
37,786
367,054
Total - Loans
729,341
189,312
26
(239,748)
65,389
744,320
Allowance for credit losses - unfunded commitments:
Commercial
6,913
1,213
8,126
Construction
10,064
194
10,258
Consumer
29
(29)
Ending balance - unfunded commitments [1]
17,006
1,378
18,384
[1]
Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial
Condition.
Modifications
A modification constitutes a change in loan terms in the form of principal forgiveness, an interest 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 modified during the nine months ended September 30, 2025 amounted to $
148
million (during the year ended December
31, 2024 - $
75
million), 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 nine months
ended September 30, 2025 and 2024. Loans modified to borrowers experiencing financial difficulties that were fully paid down,
charged-off or foreclosed upon by period end are not reported.
Loan Modifications Made to Borrowers Experiencing Financial Difficulty for the quarter ended September 30, 2025
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2025
% of total class
of Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Commercial and industrial
742
0.01
742
0.01
Consumer:
Credit cards
202
0.02
202
0.02
Personal
713
0.04
713
0.04
Total
1,657
0.01
1,657
Term Extension
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2025
% of total class
of Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
CRE non-owner occupied
1,670
0.05
1,670
0.03
CRE owner occupied
13,618
1.14
13,618
0.44
Commercial and industrial
8,172
0.14
925
0.04
9,097
0.11
Mortgage
15,194
0.21
466
0.04
15,660
0.18
Consumer:
Personal
149
0.01
8
0.01
157
0.01
Auto
92
92
Total
38,895
0.14
1,399
0.01
40,294
0.10
Other-Than-Insignificant Payment Delays
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2025
% of total class
of Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
CRE owner occupied
22,889
1.91
22,889
0.74
Commercial and industrial
79,734
1.39
79,734
0.97
Mortgage
303
303
Total
102,926
0.38
102,926
0.27
Combination - Term Extension and Interest Rate Reduction
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2025
% of total class
of Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
CRE owner occupied
166
0.01
166
0.01
Commercial and industrial
2,739
0.05
2,739
0.03
Mortgage
2,153
0.03
2,153
0.03
Consumer:
Personal
2,925
0.16
39
0.05
2,964
0.16
Auto
27
27
Total
8,010
0.03
39
8,049
0.02
Combination - Other-Than-Insignificant Payment Delays and Interest Rate Reduction
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2025
% of total class
of Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Commercial and industrial
371
0.01
371
Consumer:
Credit cards
2,666
0.22
2,666
0.22
Total
3,037
0.01
3,037
0.01
Loan Modifications Made to Borrowers Experiencing Financial Difficulty for the nine months ended September 30, 2025
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Commercial and industrial
2,692
0.05
2,692
0.03
Mortgage
69
69
Consumer:
Credit cards
617
0.05
617
0.05
Personal
2,782
0.15
2,782
0.15
Other
5
5
Total
6,165
0.02
6,165
0.02
Term Extension
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
CRE non-owner occupied
1,773
0.05
58,652
2.72
60,425
1.11
CRE owner occupied
18,854
1.58
18,854
0.61
Commercial and industrial
16,163
0.28
925
0.04
17,088
0.21
Mortgage
37,568
0.52
1,130
0.09
38,698
0.45
Consumer:
Personal
630
0.03
8
0.01
638
0.03
Auto
179
179
Total
75,167
0.28
60,715
0.53
135,882
0.35
Other-Than-Insignificant Payment Delays
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
CRE owner occupied
29,763
2.49
29,763
0.96
Commercial and industrial
165,360
2.87
165,360
2.01
Mortgage
721
0.01
721
0.01
Total
195,844
0.72
195,844
0.51
Combination - Term Extension and Interest Rate Reduction
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
CRE owner occupied
166
0.01
166
0.01
Commercial and industrial
2,837
0.05
2,837
0.03
Mortgage
9,202
0.13
9,202
0.11
Consumer:
Personal
9,187
0.50
154
0.20
9,341
0.49
Auto
43
43
Total
21,435
0.08
154
21,589
0.06
Combination - Other-Than-Insignificant Payment Delays and Interest Rate Reduction
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2025
% of total class of
Financing
Receivable
Commercial and industrial
1,157
0.02
1,157
0.01
Consumer:
Credit cards
7,175
0.59
7,175
0.59
Total
8,332
0.03
8,332
0.02
Loan Modifications Made to Borrowers Experiencing Financial Difficulty for the quarter ended September 30, 2024
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2024
% of total class
of Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
CRE owner occupied
147
0.01
147
Commercial and industrial
693
0.01
693
0.01
Consumer:
Credit cards
213
0.02
213
0.02
Personal
830
0.05
830
0.04
Total
1,883
0.01
1,883
0.01
Term Extension
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2024
% of total class
of Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Commercial multi-family
10,570
0.50
10,570
0.44
CRE non-owner occupied
13,108
0.42
13,108
0.25
CRE owner occupied
764
0.05
764
0.02
Commercial and industrial
20,966
0.41
20,966
0.28
Construction
768
0.40
768
0.07
Mortgage
11,850
0.18
429
0.03
12,279
0.15
Consumer:
Personal
148
0.01
148
0.01
Total
47,604
0.19
10,999
0.11
58,603
0.16
Other-Than-Insignificant Payment Delays
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2024
% of total class
of Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
CRE non-owner occupied
139
139
CRE owner occupied
4,993
0.36
4,993
0.16
Commercial and industrial
71,867
1.39
71,867
0.97
Consumer:
Credit cards
5
5
Total
77,004
0.30
77,004
0.21
Combination - Term Extension and Interest Rate Reduction
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2024
% of total class
of Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
CRE owner occupied
202
0.01
202
0.01
Commercial and industrial
44
44
Mortgage
4,728
0.07
4,728
0.06
Consumer:
Personal
2,569
0.15
65
0.05
2,634
0.14
Total
7,543
0.03
65
7,608
0.02
Combination - Other-Than-Insignificant Payment Delays and Interest Rate Reduction
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2024
% of total class
of Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Commercial and industrial
23
23
Consumer:
Credit cards
862
0.07
862
0.07
Total
885
885
Loan Modifications Made to Borrowers Experiencing Financial Difficulty for the nine months ended September 30, 2024
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
CRE owner occupied
175
0.01
175
0.01
Commercial and industrial
2,756
0.05
2,756
0.04
Mortgage
42
42
Consumer:
Credit cards
721
0.06
721
0.06
Personal
1,873
0.11
1,873
0.10
Other
24
0.02
24
0.01
Total
5,591
0.02
5,591
0.02
Term Extension
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Commercial multi-family
10,570
0.50
10,570
0.44
CRE non-owner occupied
55,655
1.77
55,655
1.07
CRE owner occupied
11,482
0.82
6,033
0.36
17,515
0.57
Commercial and industrial
23,837
0.46
23,837
0.32
Construction
768
0.40
768
0.07
Mortgage
41,649
0.62
1,075
0.08
42,724
0.53
Consumer:
Personal
537
0.03
537
0.03
Auto
53
53
Total
133,981
0.52
17,678
0.17
151,659
0.42
Other-Than-Insignificant Payment Delays
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
CRE non-owner occupied
139
139
CRE owner occupied
20,591
1.47
20,591
0.67
Commercial and industrial
75,231
1.45
75,231
1.02
Mortgage
127
127
Consumer:
Credit cards
5
5
Total
96,093
0.37
96,093
0.27
Combination - Term Extension and Interest Rate Reduction
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
CRE non-owner occupied
889
0.03
889
0.02
CRE owner occupied
202
0.01
202
0.01
Commercial and industrial
615
0.01
615
0.01
Mortgage
13,404
0.20
67
0.01
13,471
0.17
Consumer:
Personal
5,755
0.33
312
0.26
6,067
0.32
Total
20,865
0.08
379
21,244
0.06
Combination - Other-Than-Insignificant Payment Delays and Interest Rate Reduction
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at
September 30,
2024
% of total class of
Financing
Receivable
Commercial and industrial
110
110
Consumer:
Credit cards
1,335
0.11
1,335
0.11
Total
1,445
0.01
1,445
The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulties:
For the quarter ended September 30, 2025
Loan Type
Financial Effect
CRE Owner occupied
Reduced weighted-average contractual interest rate from
10
.0% to
7.5
Commercial and industrial
Reduced weighted-average contractual interest rate from
14.4
% to
8
.0%.
Mortgage
Reduced weighted-average contractual interest rate from
6.9
% to
5.4
Consumer:
Credit cards
Reduced weighted-average contractual interest rate from
20.6
% to
8.5
Personal
Reduced weighted-average contractual interest rate from
20.1
% to
11.6
Auto
Reduced weighted-average contractual interest rate from
8.2
0% to
8.19
Term extension
Loan Type
Financial Effect
CRE Non-owner occupied
Added a weighted-average of
5
months to the life of loans.
CRE Owner occupied
Added a weighted-average of
3
years to the life of loans.
Commercial and industrial
Added a weighted-average of
7
years to the life of loans.
Mortgage
Added a weighted-average of
12
years to the life of loans.
Consumer:
Personal
Added a weighted-average of
6
years to the life of loans.
Auto
Added a weighted-average of
21
months to the life of loans.
Other than insignificant payment delays
Loan Type
Financial Effect
CRE Owner occupied
Added a weighted-average of
9
months to the life of loans.
Commercial and industrial
Added a weighted-average of
14
months to the life of loans.
Mortgage
Added a weighted-average of
22
months to the life of loans.
Consumer:
Credit cards
Added a weighted-average of
months to the life of loans.
For the nine months ended September 30, 2025
Loan Type
Financial Effect
CRE Owner occupied
Reduced weighted-average contractual interest rate from
10.0
% to
7.5
Commercial and industrial
Reduced weighted-average contractual interest rate from
18.6
% to
8.7
Mortgage
Reduced weighted-average contractual interest rate from
6.8
% to
5.5
Consumer:
Credit cards
Reduced weighted-average contractual interest rate from
20.9
% to
8.4
Personal
Reduced weighted-average contractual interest rate from
21.1
% to
11.7
Auto
Reduced weighted-average contractual interest rate from
11.86
% to
11.85
Other
Reduced weighted-average contractual interest rate from
18
.0% to
0
.0%.
Term extension
Loan Type
Financial Effect
CRE Non-owner occupied
Added a weighted-average of
2
years to the life of loans.
CRE Owner occupied
Added a weighted-average of
3
years to the life of loans.
Commercial and industrial
Added a weighted-average of
5
years to the life of loans.
Mortgage
Added a weighted-average of
13
years to the life of loans.
Consumer:
Personal
Added a weighted-average of
5
years to the life of loans.
Auto
Added a weighted-average of
2
years to the life of loans.
Other than insignificant payment delay
Loan Type
Financial Effect
CRE Owner occupied
Added a weighted-average of
11
months to the life of loans.
Commercial and industrial
Added a weighted-average of
12
months to the life of loans.
Mortgage
Added a weighted-average of
21
months to the life of loans.
Consumer:
Credit cards
Added a weighted-average of
months to the life of loans.
For the quarter ended September 30, 2024
Loan Type
Financial Effect
CRE Owner occupied
Reduced weighted-average contractual interest rate from
10.5
% to
6.6
Commercial and industrial
Reduced weighted-average contractual interest rate from
25.8
% to
10.2
Mortgage
Reduced weighted-average contractual interest rate from
5.9
% to
4.3
Consumer:
Credit cards
Reduced weighted-average contractual interest rate from
21.5
% to
8
.0%.
Personal
Reduced weighted-average contractual interest rate from
19.5
% to
10.4
Term extension
Loan Type
Financial Effect
Commercial multi-family
Added a weighted-average of
4
months to the life of loans.
CRE Non-owner occupied
Added a weighted-average of
7
months to the life of loans.
CRE Owner occupied
Added a weighted-average of
5
years to the life of loans.
Commercial and industrial
Added a weighted-average of
1
year to the life of loans.
Construction
Added a weighted-average of
2
months to the life of loans.
Mortgage
Added a weighted-average of
12
years to the life of loans.
Consumer:
Personal
Added a weighted-average of
5
years to the life of loans.
Other than insignificant payment delay
Loan Type
Financial Effect
CRE Non-owner occupied
Added a weighted-average of
14
months to the life of loans.
CRE Owner occupied
Added a weighted-average of
7
months to the life of loans.
Commercial and industrial
Added a weighted-average of
7
months to the life of loans.
Consumer:
Credit cards
Added a weighted-average of
months to the life of loans.
For the nine months ended September 30, 2024
Loan Type
Financial Effect
CRE Non-owner occupied
Reduced weighted-average contractual interest rate from
10.1
% to
8.3
CRE Owner occupied
Reduced weighted-average contractual interest rate from
10.6
% to
6.5
Commercial and industrial
Reduced weighted-average contractual interest rate from
20.6
% to
9.6
Mortgage
Reduced weighted-average contractual interest rate from
6.1
% to
4.4
Consumer:
Credit cards
Reduced weighted-average contractual interest rate from
20.9
% to
6.5
Personal
Reduced weighted-average contractual interest rate from
19.1
% to
10
.0%.
Other
Reduced weighted-average contractual interest rate from
18
.0% to
0
.0%.
Term extension
Loan Type
Financial Effect
Commercial multi-family
Added a weighted-average of
4
months to the life of loans.
CRE Non-owner occupied
Added a weighted-average of
9
months to the life of loans.
CRE Owner occupied
Added a weighted-average of
11
months to the life of loans.
Commercial and industrial
Added a weighted-average of
2
years to the life of loans.
Construction
Added a weighted-average of
2
months to the life of loans.
Mortgage
Added a weighted-average of
12
years to the life of loans.
Consumer:
Personal
Added a weighted-average of
8
years to the life of loans.
Auto
Added a weighted-average of
4
years to the life of loans.
Other than insignificant payment delay
Loan Type
Financial Effect
CRE Non-owner occupied
Added a weighted-average of
14
months to the life of loans.
CRE Owner occupied
Added a weighted-average of
10
months to the life of loans.
Commercial and industrial
Added a weighted-average of
7
months to the life of loans.
Mortgage
Added a weighted-average of
30
months to the life of loans.
Consumer:
Credit cards
Added a weighted-average of
months to the life of loans.
The following tables present, by class, the performance of loans that have been modified during the twelve months preceding
September 30, 2025. The past due 90 days or more categories include all loans modified classified as non-accruing at the time of
the modification. These loans will continue in non-accrual status, and presented as past due 90 days or more, until the borrower has
demonstrated a willingness and ability to make the restructured loan payments (at least six months of sustained performance after
the modification or one year for loans providing for quarterly or semi-annual payments) and management has concluded that it is
probable that the borrower would not be in payment default in the foreseeable future.
BPPR
September 30, 2025
Past Due 90 days or more [1]
(In thousands)
30-59 days
60-89 days
Past due 90
days or more
Total past
due
Current
Total
With Payment
Default
Without
Payment Default
CRE non-owner occupied
2,084
2,084
2,084
311
1,773
CRE owner occupied
135
2,572
2,707
56,062
58,769
63
2,509
Commercial and industrial
175
171
3,055
3,401
187,480
190,881
520
2,535
Mortgage
5,717
2,960
20,001
28,678
30,224
58,902
6,851
13,150
Consumer:
Credit cards
760
670
1,319
2,749
6,811
9,560
1,135
184
Personal
585
340
2,211
3,136
13,210
16,346
356
1,855
Auto
254
254
Other
5
5
Total
7,372
4,141
31,242
42,755
294,046
336,801
9,236
22,006
[1] Loans that were in non-accrual status at the time of modification are presented as past due until the borrower has demonstrated a willingness and ability
to make the restructured loan payments. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or
charged-off, whichever occurs first. The recorded investment as of period end is inclusive of all partial paydowns and charge-offs since the modification
date. Loans modified with financial difficulty that were fully paid down, charged-off or foreclosed upon by period end are not reported.
Popular U.S.
September 30, 2025
Past Due 90 days or more [1]
(In thousands)
30-59 days
60-89 days
Past due 90
days or more
Total past
due
Current
Total
With Payment
Default
Without
Payment Default
CRE non-owner occupied
58,652
58,652
Commercial and industrial
1,422
1,422
Mortgage
1,519
1,519
Consumer:
Personal
28
13
41
164
205
13
Total
28
13
41
61,757
61,798
13
[1] Loans that were in non-accrual status at the time of modification are presented as past due until the borrower has demonstrated a willingness and ability
to make the restructured loan payments. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or
charged-off, whichever occurs first. The recorded investment as of period end is inclusive of all partial paydowns and charge-offs since the modification
date. Loans modified with financial difficulty that were fully paid down, charged-off or foreclosed upon by period end are not reported.
Popular Inc.
September 30, 2025
Past Due 90 days or more [1]
(In thousands)
30-59 days
60-89 days
Past due 90
days or more
Total past
due
Current
Total
With Payment
Default
Without
Payment Default
CRE non-owner occupied
2,084
2,084
58,652
60,736
311
1,773
CRE owner occupied
135
2,572
2,707
56,062
58,769
63
2,509
Commercial and industrial
175
171
3,055
3,401
188,902
192,303
520
2,535
Mortgage
5,717
2,960
20,001
28,678
31,743
60,421
6,851
13,150
Consumer:
Credit cards
760
670
1,319
2,749
6,811
9,560
1,135
184
Personal
613
340
2,224
3,177
13,374
16,551
369
1,855
Auto
254
254
Other
5
5
Total
7,400
4,141
31,255
42,796
355,803
398,599
9,249
22,006
[1] Loans that were in non-accrual status at the time of modification are presented as past due until the borrower has demonstrated a willingness and ability
to make the restructured loan payments. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or
charged-off, whichever occurs first. The recorded investment as of period end is inclusive of all partial paydowns and charge-offs since the modification
date. Loans modified with financial difficulty that were fully paid down, charged-off or foreclosed upon by period end are not reported.
The following tables present, by class, the performance of loans that have been modified during the twelve months preceding
September 30, 2024.
BPPR
September 30, 2024
Past Due 90 days or more [1]
(In thousands)
30-59 days
60-89 days
Past due 90
days or more
Total past
due
Current
Total
With Payment
Default
Without
Payment Default
Commercial multi-family
63
63
63
63
CRE non-owner occupied
2,798
2,798
55,766
58,564
2,798
CRE owner occupied
92
2,232
2,324
36,355
38,679
89
2,143
Commercial and industrial
12,359
26
4,817
17,202
86,203
103,405
96
4,721
Construction
768
768
Mortgage
5,649
4,359
24,206
34,214
40,358
74,572
6,609
17,597
Consumer:
Credit cards
205
81
283
569
1,715
2,284
197
86
Personal
286
51
1,914
2,251
6,854
9,105
210
1,704
Auto
34
34
69
103
34
Other
24
24
4
28
Total
18,615
4,517
36,347
59,479
228,092
287,571
7,201
29,146
[1] Loans that were in non-accrual status at the time of modification are presented as past due until the borrower has demonstrated a willingness and ability
to make the restructured loan payments. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or
charged-off, whichever occurs first. The recorded investment as of period end is inclusive of all partial paydowns and charge-offs since the modification
date. Loans modified with financial difficulty that were fully paid down, charged-off or foreclosed upon by period end are not reported.
Popular U.S.
September 30, 2024
Past Due 90 days or more [1]
(In thousands)
30-59 days
60-89 days
Past due 90
days or more
Total past
due
Current
Total
With Payment
Default
Without
Payment Default
Commercial multi-family
10,570
10,570
CRE owner occupied
39,855
39,855
Mortgage
795
795
407
1,202
795
Consumer:
Personal
29
85
114
216
330
85
Total
29
880
909
51,048
51,957
880
[1] Loans that were in non-accrual status at the time of modification are presented as past due until the borrower has demonstrated a willingness and ability
to make the restructured loan payments. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or
charged-off, whichever occurs first. The recorded investment as of period end is inclusive of all partial paydowns and charge-offs since the modification
date. Loans modified with financial difficulty that were fully paid down, charged-off or foreclosed upon by period end are not reported.
Popular Inc.
September 30, 2024
Past Due 90 days or more [1]
(In thousands)
30-59 days
60-89 days
Past due 90
days or more
Total past
due
Current
Total
With Payment
Default
Without
Payment Default
Commercial multi-family
63
63
10,570
10,633
63
CRE non-owner occupied
2,798
2,798
55,766
58,564
2,798
CRE owner occupied
92
2,232
2,324
76,210
78,534
89
2,143
Commercial and industrial
12,359
26
4,817
17,202
86,203
103,405
96
4,721
Construction
768
768
Mortgage
5,649
4,359
25,001
35,009
40,765
75,774
6,609
18,392
Consumer:
Credit cards
205
81
283
569
1,715
2,284
197
86
Personal
315
51
1,999
2,365
7,070
9,435
210
1,789
Auto
34
34
69
103
34
Other
24
24
4
28
Total
18,644
4,517
37,227
60,388
279,140
339,528
7,201
30,026
[1] Loans that were in non-accrual status at the time of modification are presented as past due until the borrower has demonstrated a willingness and ability
to make the restructured loan payments. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or
charged-off, whichever occurs first. The recorded investment as of period end is inclusive of all partial paydowns and charge-offs since the modification
date. Loans modified with financial difficulty that were fully paid down, charged-off or foreclosed upon by period end are not reported.
Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or charged-off,
whichever occurs first.
The following tables provide the outstanding balance of loans modified for borrowers under financial
difficulties that were subject to payment default and that had been modified during the twelve months prior to default.
Amortized Cost Basis of Modified Financing Receivables That Subsequently Defaulted During the Quarter Ended September 30, 2025
(In thousands)
Interest Rate
Reduction
Term Extension
Other-Than-
Insignificant
Payment Delays
Combination - Term
Extension and Interest
Rate Reduction
Combination - Other-
Than-Insignificant
Payment Delays and
Interest Rate
Reduction
Total
CRE non-owner occupied
311
311
Commercial and industrial
110
131
122
150
513
Mortgage
6,021
236
569
6,826
Consumer:
Credit cards
270
938
1,208
Personal
353
68
421
Total
733
6,152
669
637
1,088
9,279
Amortized Cost Basis of Modified Financing Receivables That Subsequently Defaulted During the Nine Months Ended September 30, 2025
(In thousands)
Interest Rate
Reduction
Term Extension
Other-Than-
Insignificant
Payment Delays
Combination - Term
Extension and Interest
Rate Reduction
Combination - Other-
Than-Insignificant
Payment Delays and
Interest Rate
Reduction
Total
CRE non-owner occupied
438
438
CRE owner occupied
176
176
Commercial and industrial
166
131
122
339
758
Mortgage
12,784
236
1,835
14,855
Consumer:
Credit cards
440
1,298
1,738
Personal
410
45
105
560
Total
1,016
12,960
972
1,940
1,637
18,525
Amortized Cost Basis of Modified Financing Receivables That Subsequently Defaulted During the Quarter Ended September 30, 2024
(In thousands)
Interest Rate
Reduction
Term Extension
Other-Than-
Insignificant
Payment Delays
Combination - Term
Extension and Interest
Rate Reduction
Combination - Other-
Than-Insignificant
Payment Delays and
Interest Rate
Reduction
Total
CRE owner occupied
89
89
Commercial and industrial
6
45
51
Mortgage
5,911
127
919
6,957
Consumer:
Credit cards
223
19
242
Personal
186
42
118
346
Total
415
5,998
216
1,037
19
7,685
Amortized Cost Basis of Modified Financing Receivables That Subsequently Defaulted During the Nine Months Ended September 30, 2024
(In thousands)
Interest Rate
Reduction
Term Extension
Other-Than-
Insignificant
Payment Delays
Combination - Term
Extension and Interest
Rate Reduction
Combination - Other-
Than-Insignificant
Payment Delays and
Interest Rate
Reduction
Total
CRE owner occupied
536
89
625
Commercial and industrial
6
9,130
11
50
9,197
Mortgage
12,281
127
2,177
14,585
Consumer:
Credit cards
285
54
339
Personal
260
42
258
560
Total
551
21,989
227
2,435
104
25,306
Credit Quality
The risk rating system provides for the assignment of ratings at the obligor level based on the financial condition of the borrower.
The risk rating analysis process is performed at least once a year or more frequently if events or conditions change which may
deteriorate the credit quality. In the case of consumer and mortgage loans, these loans are classified considering their delinquency
status at the end of the reporting period.
The following tables present the amortized cost basis, net of unearned income, of loans held-in-portfolio based on the Corporation’s
assignment of obligor risk ratings as defined at September 30, 2025 and December 31, 2024 and the gross write-offs recorded by
vintage year. For the definitions of the obligor risk ratings, refer to the Credit Quality section of Note 8 to the Consolidated Financial
Statements included in the 2024 Form 10-K:
September 30, 2025
Term Loans
Revolving
Loans
Amortized
Cost Basis
Revolving
Loans
Converted to
Term Loans
Amortized
Cost Basis
Amortized Cost Basis by Origination Year
(In thousands)
2025
2024
2023
2022
2021
Prior
Years
Total
BPPR
Commercial:
Commercial multi-family
Pass
5,767
33,483
36,660
133,261
20,611
47,906
107
277,795
Watch
15,880
528
948
17,356
Special Mention
219
75
3,122
3,416
Substandard
3,799
3,799
Total commercial
multi-family
5,986
49,363
36,660
133,789
20,686
55,775
107
302,366
Commercial real estate non-owner occupied
Pass
307,242
440,086
275,057
796,328
517,382
708,490
7,907
3,052,492
Watch
9,391
9,750
18,744
5,153
24,694
55,619
123,351
Special Mention
23,362
147
19,146
42,655
Substandard
729
8,627
30,379
26,020
18,492
84,247
Total commercial
real estate non-
owner occupied
316,633
450,565
325,790
832,007
568,096
801,747
7,907
3,302,745
Year-to-Date gross
write-offs
13,356
134
86
13,576
Commercial real estate owner occupied
Pass
59,045
135,482
73,688
95,839
171,002
316,767
3,961
855,784
Watch
2,105
11,092
5,455
29,058
29,571
74,965
1,886
154,132
Special Mention
1,793
16,062
796
15,956
1,499
36,106
Substandard
13,441
351
1,414
39,420
9,189
70,920
14,448
149,183
Doubtful
79
79
Total commercial
real estate owner
occupied
74,591
146,925
82,350
180,379
210,558
478,687
21,794
1,195,284
Year-to-Date gross
write-offs
103
103
Commercial and industrial
Pass
932,284
666,483
775,714
489,942
205,112
359,273
1,380,285
4,809,093
Watch
5,888
98,918
14,605
8,809
3,748
21,330
166,902
320,200
Special Mention
20,525
22,327
9,475
62,104
475
2,897
15,186
132,989
Substandard
12,269
12,994
53,950
76,399
158,743
19,757
155,604
489,716
Total commercial
and industrial
970,966
800,722
853,744
637,254
368,078
403,257
1,717,977
5,751,998
Year-to-Date gross
write-offs
845
332
209
389
21
212
6,571
8,579
Construction
Pass
18,405
119,700
77,544
9,379
2,925
10,269
49,038
287,260
Watch
16,615
78
16,693
Total construction
18,405
119,700
94,159
9,379
3,003
10,269
49,038
303,953
Mortgage
Pass
752,769
885,122
691,353
390,170
383,945
4,058,832
7,162,191
Substandard
354
2,527
2,037
874
65,123
70,915
Total mortgage
752,769
885,476
693,880
392,207
384,819
4,123,955
7,233,106
Year-to-Date gross
write-offs
31
1
1,538
1,570
September 30, 2025
Term Loans
Revolving
Loans
Amortized
Cost Basis
Revolving
Loans
Converted to
Term Loans
Amortized
Cost Basis
Amortized Cost Basis by Origination Year
(In thousands)
2025
2024
2023
2022
2021
Prior
Years
Total
BPPR
Leasing
Pass
553,617
571,841
385,290
277,696
154,797
47,637
1,990,878
Substandard
256
1,156
2,254
2,271
1,176
593
7,706
Loss
33
34
67
Total leasing
553,873
572,997
387,544
280,000
156,007
48,230
1,998,651
Year-to-Date gross
write-offs
520
3,244
3,717
3,778
1,284
12,543
Consumer:
Credit cards
Pass
1,199,942
1,199,942
Substandard
25,622
25,622
Loss
3
3
Total credit cards
1,225,567
1,225,567
Year-to-Date gross
write-offs
57,015
57,015
HELOCs
Pass
1,693
1,693
Total HELOCs
1,693
1,693
Year-to-Date gross
write-offs
25
25
Personal
Pass
667,332
496,053
307,971
157,341
61,363
85,216
29,114
1,804,390
Substandard
671
2,548
3,519
2,104
847
6,692
2,213
18,594
Loss
61
58
5
22
18
164
Total Personal
668,003
498,662
311,548
159,450
62,232
91,926
31,327
1,823,148
Year-to-Date gross
write-offs
586
12,216
26,518
14,121
3,709
1,631
1,943
60,724
Auto
Pass
899,264
1,068,559
762,480
513,010
357,768
191,541
3,792,622
Substandard
2,250
15,673
14,283
11,662
7,750
6,535
58,153
Loss
17
103
37
21
178
Total Auto
901,514
1,084,249
776,866
524,709
365,518
198,097
3,850,953
Year-to-Date gross
write-offs
3,122
21,282
15,163
9,159
3,657
1,266
53,649
Other consumer
Pass
28,822
25,904
23,307
16,942
8,217
3,455
63,479
170,126
Substandard
216
104
22
52
419
813
Loss
1,025
363
1,388
Total Other
consumer
28,822
25,904
23,523
18,071
8,602
3,507
63,898
172,327
Year-to-Date gross
write-offs
30
191
226
181
313
1,398
2,339
Total BPPR
4,291,562
4,634,563
3,586,064
3,167,245
2,147,599
6,215,450
3,087,981
31,327
27,161,791
September 30, 2025
Term Loans
Revolving
Loans
Amortized
Cost Basis
Revolving
Loans
Converted to
Term Loans
Amortized
Cost Basis
Amortized Cost Basis by Origination Year
(In thousands)
2025
2024
2023
2022
2021
Prior
Years
Total
Popular U.S.
Commercial:
Commercial multi-family
Pass
296,771
141,317
151,040
464,528
297,074
652,853
7,077
2,010,660
Watch
15,589
24,021
100,470
140,080
Special Mention
7,882
2,503
10,385
Substandard
1,781
2,736
21,581
26,098
Total commercial
multi-family
296,771
141,317
152,821
490,735
321,095
777,407
7,077
2,187,223
Year-to-Date gross
write-offs
563
563
Commercial real estate non-owner occupied
Pass
152,036
184,351
312,258
472,285
174,416
632,757
4,585
1,932,688
Watch
10,300
8,834
10,841
11,285
52,924
94,184
Substandard
13,023
7,430
112,510
132,963
Total commercial
real estate non-
owner occupied
162,336
193,185
323,099
496,593
181,846
798,191
4,585
2,159,835
Commercial real estate owner occupied
Pass
321,250
251,751
246,753
263,185
242,063
286,643
9,556
1,621,201
Watch
13,500
25,247
7,799
2,284
48,409
1,600
98,839
Special Mention
18,001
11,055
29,056
Substandard
2,715
54,030
2,308
87,291
146,344
Total commercial
real estate owner
occupied
321,250
285,967
272,000
325,014
246,655
433,398
11,156
1,895,440
Year-to-Date gross
write-offs
26
26
Commercial and industrial
Pass
193,963
327,871
277,660
327,177
280,585
661,457
264,838
2,333,551
Watch
1,706
9,462
29,796
22,081
63,952
4,295
131,292
Special Mention
4,454
180
342
207
810
5,993
Substandard
5,670
864
4,464
152
1,457
10,198
22,805
Total commercial
and industrial
193,963
335,247
292,440
361,617
303,160
727,073
280,141
2,493,641
Year-to-Date gross
write-offs
100
1,106
599
5
108
1,918
Construction
Pass
229,225
420,979
427,419
85,358
6,030
12,333
1,181,344
Watch
741
5,007
47,416
47,642
6,999
107,805
Special Mention
2,908
2,908
Substandard
8,602
8,602
Total construction
229,966
425,986
477,743
141,602
13,029
12,333
1,300,659
Mortgage
Pass
94,885
84,091
85,278
207,578
262,878
562,783
1,297,493
Substandard
644
217
26,948
27,809
Total mortgage
94,885
84,091
85,922
207,578
263,095
589,731
1,325,302
September 30, 2025
Term Loans
Revolving
Loans
Amortized
Cost Basis
Revolving
Loans
Converted to
Term Loans
Amortized
Cost Basis
Amortized Cost Basis by Origination Year
(In thousands)
2025
2024
2023
2022
2021
Prior
Years
Total
Popular U.S.
Consumer:
HELOCs
Pass
5,580
58,047
10,311
73,938
Substandard
1,423
13
763
2,199
Loss
165
895
1,060
Total HELOCs
7,168
58,060
11,969
77,197
Year-to-Date gross
write-offs
46
46
Personal
Pass
16,107
20,115
14,538
19,843
4,249
1,384
76,236
Substandard
82
74
171
259
16
269
871
Loss
22
48
70
Total Personal
16,189
20,189
14,731
20,102
4,265
1,701
77,177
Year-to-Date gross
write-offs
1,665
1,845
3,051
577
37
7,175
Other consumer
Pass
8,863
8,863
Substandard
30
30
Total Other
consumer
8,893
8,893
Year-to-Date gross
write-offs
67
67
Total Popular U.S.
1,315,360
1,485,982
1,618,756
2,043,241
1,320,116
3,347,698
382,245
11,969
11,525,367
September 30, 2025
Term Loans
Revolving
Loans
Amortized
Cost Basis
Revolving
Loans
Converted to
Term Loans
Amortized
Cost Basis
Amortized Cost Basis by Origination Year
(In thousands)
2025
2024
2023
2022
2021
Prior
Years
Total
Popular, Inc.
Commercial:
Commercial multi-family
Pass
302,538
174,800
187,700
597,789
317,685
700,759
7,184
2,288,455
Watch
15,880
16,117
24,021
101,418
157,436
Special Mention
219
7,882
75
5,625
13,801
Substandard
1,781
2,736
25,380
29,897
Total commercial
multi-family
302,757
190,680
189,481
624,524
341,781
833,182
7,184
2,489,589
Year-to-Date gross
write-offs
563
563
Commercial real estate non-owner occupied
Pass
459,278
624,437
587,315
1,268,613
691,798
1,341,247
12,492
4,985,180
Watch
19,691
18,584
29,585
16,438
24,694
108,543
217,535
Special Mention
23,362
147
19,146
42,655
Substandard
729
8,627
43,402
33,450
131,002
217,210
Total commercial
real estate non-
owner occupied
478,969
643,750
648,889
1,328,600
749,942
1,599,938
12,492
5,462,580
Year-to-Date gross
write-offs
13,356
134
86
13,576
Commercial real estate owner occupied
Pass
380,295
387,233
320,441
359,024
413,065
603,410
13,517
2,476,985
Watch
2,105
24,592
30,702
36,857
31,855
123,374
3,486
252,971
Special Mention
18,001
1,793
16,062
796
27,011
1,499
65,162
Substandard
13,441
3,066
1,414
93,450
11,497
158,211
14,448
295,527
Doubtful
79
79
Total commercial
real estate owner
occupied
395,841
432,892
354,350
505,393
457,213
912,085
32,950
3,090,724
Year-to-Date gross
write-offs
129
129
Commercial and industrial
Pass
1,126,247
994,354
1,053,374
817,119
485,697
1,020,730
1,645,123
7,142,644
Watch
5,888
100,624
24,067
38,605
25,829
85,282
171,197
451,492
Special Mention
20,525
22,327
13,929
62,284
817
3,104
15,996
138,982
Substandard
12,269
18,664
54,814
80,863
158,895
21,214
165,802
512,521
Total commercial
and industrial
1,164,929
1,135,969
1,146,184
998,871
671,238
1,130,330
1,998,118
8,245,639
Year-to-Date gross
write-offs
945
1,438
209
389
620
217
6,679
10,497
September 30, 2025
Term Loans
Revolving
Loans
Amortized
Cost Basis
Revolving
Loans
Converted to
Term Loans
Amortized
Cost Basis
Amortized Cost Basis by Origination Year
(In thousands)
2025
2024
2023
2022
2021
Prior
Years
Total
Popular, Inc.
Construction
Pass
247,630
540,679
504,963
94,737
2,925
16,299
61,371
1,468,604
Watch
741
5,007
64,031
47,642
78
6,999
124,498
Special Mention
2,908
2,908
Substandard
8,602
8,602
Total construction
248,371
545,686
571,902
150,981
3,003
23,298
61,371
1,604,612
Mortgage
Pass
847,654
969,213
776,631
597,748
646,823
4,621,615
8,459,684
Substandard
354
3,171
2,037
1,091
92,071
98,724
Total mortgage
847,654
969,567
779,802
599,785
647,914
4,713,686
8,558,408
Year-to-Date gross
write-offs
31
1
1,538
1,570
Leasing
Pass
553,617
571,841
385,290
277,696
154,797
47,637
1,990,878
Substandard
256
1,156
2,254
2,271
1,176
593
7,706
Loss
33
34
67
Total leasing
553,873
572,997
387,544
280,000
156,007
48,230
1,998,651
Year-to-Date gross
write-offs
520
3,244
3,717
3,778
1,284
12,543
September 30, 2025
Term Loans
Revolving
Loans
Amortized
Cost Basis
Revolving
Loans
Converted to
Term Loans
Amortized
Cost Basis
Amortized Cost Basis by Origination Year
(In thousands)
2025
2024
2023
2022
2021
Prior
Years
Total
Popular, Inc.
Consumer:
Credit cards
Pass
1,199,942
1,199,942
Substandard
25,622
25,622
Loss
3
3
Total credit cards
1,225,567
1,225,567
Year-to-Date gross
write-offs
57,015
57,015
HELOCs
Pass
5,580
59,740
10,311
75,631
Substandard
1,423
13
763
2,199
Loss
165
895
1,060
Total HELOCs
7,168
59,753
11,969
78,890
Year-to-Date gross
write-offs
71
71
Personal
Pass
683,439
516,168
322,509
177,184
65,612
86,600
29,114
1,880,626
Substandard
753
2,622
3,690
2,363
863
6,961
2,213
19,465
Loss
61
80
5
22
66
234
Total Personal
684,192
518,851
326,279
179,552
66,497
93,627
31,327
1,900,325
Year-to-Date gross
write-offs
586
13,881
28,363
17,172
4,286
1,668
1,943
67,899
Auto
Pass
899,264
1,068,559
762,480
513,010
357,768
191,541
3,792,622
Substandard
2,250
15,673
14,283
11,662
7,750
6,535
58,153
Loss
17
103
37
21
178
Total Auto
901,514
1,084,249
776,866
524,709
365,518
198,097
3,850,953
Year-to-Date gross
write-offs
3,122
21,282
15,163
9,159
3,657
1,266
53,649
Other consumer
Pass
28,822
25,904
23,307
16,942
8,217
3,455
72,342
178,989
Substandard
216
104
22
52
449
843
Loss
1,025
363
1,388
Total Other
consumer
28,822
25,904
23,523
18,071
8,602
3,507
72,791
181,220
Year-to-Date gross
write-offs
30
191
226
181
313
1,398
67
2,406
Total Popular Inc.
5,606,922
6,120,545
5,204,820
5,210,486
3,467,715
9,563,148
3,470,226
43,296
38,687,158
December 31, 2024
Term Loans
Revolving
Loans
Amortized
Cost Basis
Revolving
Loans
Converted to
Term Loans
Amortized
Cost Basis
Amortized Cost Basis by Origination Year
(In thousands)
2024
2023
2022
2021
2020
Prior
Years
Total
BPPR
Commercial:
Commercial multi-family
Pass
50,384
37,211
136,093
20,939
20,134
34,009
105
298,875
Watch
541
1,601
2,142
Special Mention
3,161
3,161
Substandard
3,823
3,823
Total commercial
multi-family
50,384
37,211
136,634
20,939
20,134
42,594
105
308,001
Commercial real estate non-owner occupied
Pass
419,200
322,998
828,404
547,674
335,060
525,088
6,159
2,984,583
Watch
26,097
2,296
654
5,349
28,832
50,924
72
114,224
Special Mention
7,018
41,274
156
406
46,390
95,244
Substandard
1,002
110
26,430
1,954
22,956
52,452
Total commercial
real estate non-
owner occupied
452,315
367,570
829,324
579,859
365,846
645,358
6,231
3,246,503
Year-to-Date gross
write-offs
69
59
128
Commercial real estate owner occupied
Pass
131,449
79,109
94,008
214,520
46,206
309,791
7,214
882,297
Watch
14,002
2,637
64,735
7,225
4,890
85,580
3
179,072
Special Mention
1,209
19,436
19,288
15,872
1,499
57,304
Substandard
455
1,651
20,528
3,872
140,579
77,098
13,021
257,204
Doubtful
34
34
Total commercial
real estate owner
occupied
145,906
84,606
198,707
244,905
191,675
488,375
21,737
1,375,911
Year-to-Date gross
write-offs
2,793
2,793
Commercial and industrial
Pass
790,273
910,355
602,454
304,227
66,395
331,493
1,495,490
4,500,687
Watch
124,987
24,935
49,497
6,394
3,465
31,609
135,811
376,698
Special Mention
5,519
7,316
1,895
157,627
53
30,360
28,171
230,941
Substandard
6,063
30,496
37,558
4,203
14,776
23,135
122,275
238,506
Doubtful
11
11
Loss
51
51
Total commercial
and industrial
926,842
973,102
691,404
472,451
84,689
416,608
1,781,798
5,346,894
Year-to-Date gross
write-offs
1,099
707
331
122
2,838
11,841
7,617
24,555
Construction
Pass
63,107
53,070
33,423
14,908
9,483
1,011
16,782
191,784
Watch
13,872
13,872
Special Mention
6,058
6,058
Substandard
576
576
Total construction
63,107
66,942
33,423
21,542
9,483
1,011
16,782
212,290
Mortgage
Pass
879,075
724,383
409,133
401,113
234,486
4,085,088
6,733,278
Substandard
1,961
1,331
1,675
347
71,289
76,603
Total mortgage
879,075
726,344
410,464
402,788
234,833
4,156,377
6,809,881
Year-to-Date gross
write-offs
9
8
1,067
1,084
December 31, 2024
Term Loans
Revolving
Loans
Amortized
Cost Basis
Revolving
Loans
Converted to
Term Loans
Amortized
Cost Basis
Amortized Cost Basis by Origination Year
(In thousands)
2024
2023
2022
2021
2020
Prior
Years
Total
BPPR
Leasing
Pass
731,053
477,226
362,426
217,537
104,812
22,762
1,915,816
Substandard
1,195
2,280
2,834
1,885
920
402
9,516
Loss
73
73
Total leasing
732,248
479,506
365,260
219,422
105,732
23,237
1,925,405
Year-to-Date gross
write-offs
1,733
4,842
5,373
3,281
694
1,052
16,975
Consumer:
Credit cards
Pass
1,188,093
1,188,093
Substandard
29,960
29,960
Total credit cards
1,218,053
1,218,053
Year-to-Date gross
write-offs
69,731
69,731
HELOCs
Pass
2,040
2,040
Total HELOCs
2,040
2,040
Year-to-Date gross
write-offs
380
380
Personal
Pass
722,949
499,604
262,011
101,155
29,078
91,004
23,802
1,729,603
Substandard
924
4,965
3,561
1,221
271
8,205
1,626
20,773
Loss
1
1
Total Personal
723,873
504,569
265,572
102,377
29,349
99,209
25,428
1,750,377
Year-to-Date gross
write-offs
2,362
39,193
38,077
10,822
2,708
3,525
1,982
98,669
Auto
Pass
1,277,016
938,769
665,431
494,529
254,621
133,054
3,763,420
Substandard
7,239
16,876
13,579
10,775
6,377
5,131
59,977
Loss
14
15
2
9
40
Total Auto
1,284,269
955,660
679,010
505,306
260,998
138,194
3,823,437
Year-to-Date gross
write-offs
11,229
36,992
20,486
9,997
4,965
1,731
85,400
Other consumer
Pass
28,543
29,585
20,021
10,129
4,588
3,364
62,678
158,908
Substandard
228
44
29
57
413
771
Loss
550
550
Total Other
consumer
28,543
29,813
20,065
10,679
4,617
3,421
63,091
160,229
Year-to-Date gross
write-offs
29
213
130
96
128
2,205
2,801
Total BPPR
5,286,562
4,225,323
3,629,863
2,580,268
1,307,356
6,014,384
3,109,837
25,428
26,179,021
December 31, 2024
Term Loans
Revolving
Loans
Amortized
Cost Basis
Revolving
Loans
Converted to
Term Loans
Amortized
Cost Basis
Amortized Cost Basis by Origination Year
(In thousands)
2024
2023
2022
2021
2020
Prior
Years
Total
Popular U.S.
Commercial:
Commercial multi-family
Pass
139,370
148,423
491,750
313,610
207,327
560,891
5,700
1,867,071
Watch
10,974
27,441
26,679
10,668
114,419
190,181
Special Mention
8,004
8,004
Substandard
2,761
23,602
26,363
Total commercial
multi-family
139,370
159,397
529,956
340,289
217,995
698,912
5,700
2,091,619
Year-to-Date gross
write-offs
441
441
Commercial real estate non-owner occupied
Pass
178,355
368,597
480,055
167,839
193,309
456,689
8,588
1,853,432
Watch
12,932
17,125
13,138
45,864
64,390
300
153,749
Special Mention
594
594
Substandard
2,657
2,741
5,758
97,801
108,957
Total commercial
real estate non-
owner occupied
178,355
381,529
499,837
183,718
244,931
619,474
8,888
2,116,732
Year-to-Date gross
write-offs
54
54
Commercial real estate owner occupied
Pass
304,778
257,586
244,811
279,419
35,459
246,158
7,669
1,375,880
Watch
25,614
13,531
32,132
16,301
54,877
142,455
Special Mention
488
69,505
34,428
27,406
10,825
142,652
Substandard
17,101
2,596
3,678
97,473
120,848
Total commercial
real estate owner
occupied
304,778
283,688
344,948
348,575
82,844
409,333
7,669
1,781,835
Year-to-Date gross
write-offs
154
December 31, 2024
Term Loans
Revolving
Loans
Amortized
Cost Basis
Revolving
Loans
Converted to
Term Loans
Amortized
Cost Basis
Amortized Cost Basis by Origination Year
(In thousands)
2024
2023
2022
2021
2020
Prior
Years
Total
Popular U.S.
Commercial and industrial
Pass
260,479
275,971
318,564
322,697
268,591
506,973
273,222
2,226,497
Watch
11,420
48,953
28,138
9,521
35,498
15,050
148,580
Special Mention
58
5,270
568
255
3,835
9,986
Substandard
2,276
195
45
1,610
5,479
9,605
Total commercial
and industrial
262,813
287,391
372,787
351,598
278,157
544,336
297,586
2,394,668
Year-to-Date gross
write-offs
1,103
1,571
190
300
211
480
123
3,978
Construction
Pass
259,194
512,428
155,268
765
927,655
Watch
1,541
36,264
7,172
24,691
69,668
Special Mention
4,897
6,367
11,264
Substandard
8,104
25,473
9,338
42,915
Total construction
259,194
518,866
206,003
33,410
34,029
1,051,502
Mortgage
Pass
98,345
88,788
215,600
272,908
216,025
382,746
1,274,412
Substandard
644
106
860
28,280
29,890
Total mortgage
98,345
89,432
215,706
273,768
216,025
411,026
1,304,302
Year-to-Date gross
write-offs
18
December 31, 2024
Term Loans
Revolving
Loans
Amortized
Cost Basis
Revolving
Loans
Converted to
Term Loans
Amortized
Cost Basis
Amortized Cost Basis by Origination Year
(In thousands)
2024
2023
2022
2021
2020
Prior
Years
Total
Popular U.S.
Consumer:
Credit cards
Pass
26
26
Total credit cards
26
26
HELOCs
Pass
5,914
50,533
11,691
68,138
Substandard
1,657
15
700
2,372
Loss
122
899
1,021
Total HELOCs
7,693
50,548
13,290
71,531
Year-to-Date gross
write-offs
53
53
Personal
Pass
28,083
23,084
41,182
8,618
651
1,507
103,125
Substandard
157
399
627
134
7
302
1,626
Loss
53
10
5
48
116
Total Personal
28,293
23,493
41,809
8,757
658
1,857
104,867
Year-to-Date gross
write-offs
802
4,536
10,869
2,458
231
307
19,203
Other consumer
Pass
11,537
11,537
Substandard
12
12
Total Other
consumer
11,549
11,549
Year-to-Date gross
write-offs
101
101
Total Popular U.S.
1,271,148
1,743,796
2,211,046
1,506,705
1,040,610
2,726,041
415,995
13,290
10,928,631
December 31, 2024
Term Loans
Revolving
Loans
Amortized
Cost Basis
Revolving
Loans
Converted to
Term Loans
Amortized
Cost Basis
Amortized Cost Basis by Origination Year
(In thousands)
2024
2023
2022
2021
2020
Prior
Years
Total
Popular, Inc.
Commercial:
Commercial multi-family
Pass
189,754
185,634
627,843
334,549
227,461
594,900
5,805
2,165,946
Watch
10,974
27,982
26,679
10,668
116,020
192,323
Special Mention
8,004
3,161
11,165
Substandard
2,761
27,425
30,186
Total commercial
multi-family
189,754
196,608
666,590
361,228
238,129
741,506
5,805
2,399,620
Year-to-Date gross
write-offs
441
441
Commercial real estate non-owner occupied
Pass
597,555
691,595
1,308,459
715,513
528,369
981,777
14,747
4,838,015
Watch
26,097
15,228
17,779
18,487
74,696
115,314
372
267,973
Special Mention
7,018
41,274
156
406
46,984
95,838
Substandard
1,002
2,767
29,171
7,712
120,757
161,409
Total commercial
real estate non-
owner occupied
630,670
749,099
1,329,161
763,577
610,777
1,264,832
15,119
5,363,235
Year-to-Date gross
write-offs
69
113
182
Commercial real estate owner occupied
Pass
436,227
336,695
338,819
493,939
81,665
555,949
14,883
2,258,177
Watch
14,002
28,251
78,266
39,357
21,191
140,457
3
321,527
Special Mention
1,697
88,941
53,716
27,406
26,697
1,499
199,956
Substandard
455
1,651
37,629
6,468
144,257
174,571
13,021
378,052
Doubtful
34
34
Total commercial
real estate owner
occupied
450,684
368,294
543,655
593,480
274,519
897,708
29,406
3,157,746
Year-to-Date gross
write-offs
2,947
2,947
Commercial and industrial
Pass
1,050,752
1,186,326
921,018
626,924
334,986
838,466
1,768,712
6,727,184
Watch
124,987
36,355
98,450
34,532
12,986
67,107
150,861
525,278
Special Mention
5,577
7,316
7,165
158,195
53
30,615
32,006
240,927
Substandard
8,339
30,496
37,558
4,398
14,821
24,745
127,754
248,111
Doubtful
11
11
Loss
51
51
Total commercial
and industrial
1,189,655
1,260,493
1,064,191
824,049
362,846
960,944
2,079,384
7,741,562
Year-to-Date gross
write-offs
2,202
2,278
521
422
3,049
12,321
7,740
28,533
December 31, 2024
Term Loans
Revolving
Loans
Amortized
Cost Basis
Revolving
Loans
Converted to
Term Loans
Amortized
Cost Basis
Amortized Cost Basis by Origination Year
(In thousands)
2024
2023
2022
2021
2020
Prior
Years
Total
Popular, Inc.
Construction
Pass
322,301
565,498
188,691
14,908
9,483
1,776
16,782
1,119,439
Watch
15,413
36,264
7,172
24,691
83,540
Special Mention
4,897
6,367
6,058
17,322
Substandard
8,104
576
25,473
9,338
43,491
Total construction
322,301
585,808
239,426
21,542
9,483
34,421
50,811
1,263,792
Mortgage
Pass
977,420
813,171
624,733
674,021
450,511
4,467,834
8,007,690
Substandard
2,605
1,437
2,535
347
99,569
106,493
Total mortgage
977,420
815,776
626,170
676,556
450,858
4,567,403
8,114,183
Year-to-Date gross
write-offs
9
8
1,085
1,102
Leasing
Pass
731,053
477,226
362,426
217,537
104,812
22,762
1,915,816
Substandard
1,195
2,280
2,834
1,885
920
402
9,516
Loss
73
73
Total leasing
732,248
479,506
365,260
219,422
105,732
23,237
1,925,405
Year-to-Date gross
write-offs
1,733
4,842
5,373
3,281
694
1,052
16,975
December 31, 2024
Term Loans
Revolving
Loans
Amortized
Cost Basis
Revolving
Loans
Converted to
Term Loans
Amortized
Cost Basis
Amortized Cost Basis by Origination Year
(In thousands)
2024
2023
2022
2021
2020
Prior
Years
Total
Popular, Inc.
Consumer:
Credit cards
Pass
1,188,119
1,188,119
Substandard
29,960
29,960
Total credit cards
1,218,079
1,218,079
Year-to-Date gross
write-offs
69,731
69,731
HELOCs
Pass
5,914
52,573
11,691
70,178
Substandard
1,657
15
700
2,372
Loss
122
899
1,021
Total HELOCs
7,693
52,588
13,290
73,571
Year-to-Date gross
write-offs
433
433
Personal
Pass
751,032
522,688
303,193
109,773
29,729
92,511
23,802
1,832,728
Substandard
1,081
5,364
4,188
1,355
278
8,507
1,626
22,399
Loss
53
10
6
48
117
Total Personal
752,166
528,062
307,381
111,134
30,007
101,066
25,428
1,855,244
Year-to-Date gross
write-offs
3,164
43,729
48,946
13,280
2,939
3,832
1,982
117,872
Auto
Pass
1,277,016
938,769
665,431
494,529
254,621
133,054
3,763,420
Substandard
7,239
16,876
13,579
10,775
6,377
5,131
59,977
Loss
14
15
2
9
40
Total Auto
1,284,269
955,660
679,010
505,306
260,998
138,194
3,823,437
Year-to-Date gross
write-offs
11,229
36,992
20,486
9,997
4,965
1,731
85,400
Other consumer
Pass
28,543
29,585
20,021
10,129
4,588
3,364
74,215
170,445
Substandard
228
44
29
57
425
783
Loss
550
550
Total Other
consumer
28,543
29,813
20,065
10,679
4,617
3,421
74,640
171,778
Year-to-Date gross
write-offs
29
213
130
96
128
2,205
101
2,902
Total Popular Inc.
6,557,710
5,969,119
5,840,909
4,086,973
2,347,966
8,740,425
3,525,832
38,718
37,107,652
Note 9 – Other real estate owned
The following tables present the activity related to Other Real Estate Owned (“OREO”), for the quarters and nine months ended
September 30, 2025 and 2024.
For the quarter ended September 30, 2025
OREO
OREO
(In thousands)
Commercial/Construction
Mortgage
Total
Balance at beginning of period
5,897
40,229
46,126
Write-downs in value
(70)
(344)
(414)
Additions
152
8,731
8,883
Sales
(323)
(11,343)
(11,666)
Other adjustments
21
21
Ending balance
5,656
37,294
42,950
For the quarter ended September 30, 2024
OREO
OREO
(In thousands)
Commercial/Construction
Mortgage
Total
Balance at beginning of period
9,428
60,797
70,225
Write-downs in value
(39)
(549)
(588)
Additions
1,125
7,966
9,091
Sales
(588)
(15,112)
(15,700)
Ending balance
9,926
53,102
63,028
For the nine months ended September 30, 2025
OREO
OREO
(In thousands)
Commercial/Construction
Mortgage
Total
Balance at beginning of period
8,424
48,844
57,268
Write-downs in value
(934)
(2,059)
(2,993)
Additions
723
25,428
26,151
Sales
(2,557)
(34,717)
(37,274)
Other adjustments
(202)
(202)
Ending balance
5,656
37,294
42,950
For the nine months ended September 30, 2024
OREO
OREO
(In thousands)
Commercial/Construction
Mortgage
Total
Balance at beginning of period
11,189
69,227
80,416
Write-downs in value
(1,103)
(1,260)
(2,363)
Additions
6,985
32,748
39,733
Sales
(7,145)
(47,548)
(54,693)
Other adjustments
(65)
(65)
Ending balance
9,926
53,102
63,028
Note 10 − Other assets
The caption of other assets in the Consolidated Statements of Financial Condition consists of the following major categories:
(In thousands)
September 30, 2025
December 31, 2024
Net deferred tax assets (net of valuation allowance)
837,375
926,329
Investments under the equity method
249,139
251,537
Prepaid taxes
54,447
42,909
Other prepaid expenses
34,639
28,376
Capitalized software costs
182,204
136,442
Derivative assets
27,700
25,975
Trades receivable from brokers and counterparties
9,670
588
Receivables from investments maturities
800
14,600
Principal, interest and escrow servicing advances
31,226
43,793
Guaranteed mortgage loan claims receivable
10,654
17,226
Operating ROU assets
99,384
93,389
Finance ROU assets
23,706
19,174
Assets for pension benefit
35,137
33,233
Others
148,805
164,188
Total other assets
1,744,886
1,797,759
The Corporation regularly incurs in capitalizable costs associated with software development or licensing which are recorded within
the Other Assets line item in the accompanying Consolidated Statements of Financial Condition. In addition, the Corporation incurs
costs associated with hosting arrangements that are service contracts that are also recorded within Other Assets. The hosting
arrangements can include capitalizable implementation costs that are amortized during the term of the hosting arrangement.
The
following table summarizes the composition of acquired or developed software costs as well as costs related to hosting
arrangements:
Gross Carrying
Accumulated
Net Carrying
(In thousands)
Amount
Amortization
Value
September 30, 2025
Software development costs
89,878
34,203
55,675
Software license costs
59,845
32,476
27,369
Cloud computing arrangements
110,472
11,312
99,160
Total Capitalized software costs [1] [2]
260,195
77,991
182,204
December 31, 2024
Software development costs
79,233
23,057
56,176
Software license costs
42,234
21,459
20,775
Cloud computing arrangements
65,797
6,306
59,491
Total Capitalized software costs [1] [2]
187,264
50,822
136,442
[1]
Software intangible assets are presented as part of Other Assets in the Consolidated Statements of Financial Condition.
[2]
The tables above exclude assets that have been fully amortized.
Total amortization expense for all capitalized software and hosting arrangement cost, reflected as part of technology and software
expenses in the consolidated statement of operations, is as follows:
Quarters ended September 30,
Nine months ended September 30,
(In thousands)
2025
2024
2025
2024
Software development and license costs
22,157
21,118
66,139
57,431
Cloud computing arrangements
2,500
1,514
5,328
3,052
Total amortization expense
24,657
22,632
71,467
60,483
Note 11 – Goodwill and other intangible assets
Goodwill
The following table shows the changes in the carrying amount of goodwill for the nine months ended September 30, 2025 and 2024,
by reportable segments (refer to Note 32 for the definition of the Corporation’s reportable segment):
September 30, 2025
Balance at
Goodwill
Balance at
(In thousands)
January 1, 2025
impairment
September 30, 2025
Banco Popular de Puerto Rico
434,909
434,909
Popular U.S.
368,045
(13,000)
355,045
Total Popular, Inc.
802,954
(13,000)
789,954
September 30, 2024
Balance at
Goodwill
Balance at
(In thousands)
January 1, 2024
impairment
September 30, 2024
Banco Popular de Puerto Rico
436,383
436,383
Popular U.S.
368,045
368,045
Total Popular, Inc.
804,428
804,428
Other Intangible Assets
The following table reflects the components of other intangible assets subject to amortization:
Gross Carrying
Accumulated
Net Carrying
(In thousands)
Amount
Amortization
Value
September 30, 2025
Core deposits
12,810
12,810
Other customer relationships
14,286
9,586
4,700
Total other intangible assets
27,096
22,396
4,700
December 31, 2024
Core deposits
12,810
12,595
215
Other customer relationships
14,286
8,435
5,851
Total other intangible assets
27,096
21,030
6,066
During the quarter ended September 30, 2025, the Corporation recognized $
0.4
million in amortization expense related to other
intangible assets with definite useful lives (September 30, 2024 - $
0.7
million). During the nine months ended September 30, 2025,
the Corporation recognized $
1.4
million in amortization related to other intangible assets with definite useful lives (September 30,
2024 - $
2.2
million).
The following table presents the estimated amortization of the intangible assets with definite useful lives for each of the following
periods:
(In thousands)
Remaining 2025
384
Year 2026
1,440
Year 2027
959
Year 2028
959
Year 2029
958
Results of the Annual Goodwill Impairment Test
The Corporation’s goodwill and other identifiable intangible assets having an indefinite useful life are tested for impairment, at least
annually and on a more frequent basis if events or circumstances indicate impairment could have taken place. Such events could
include, among others, a significant adverse change in the business climate, an adverse action by a regulator, an unanticipated
change in the competitive environment and a decision to change the operations or dispose of a reporting unit.
Management monitors events or changes in circumstances between annual tests to determine if these events or changes in
circumstances would more likely than not reduce the fair value of its reporting units below their carrying amounts.
The reporting units evaluated are one level below the business segments and correspond to the legal entities within each reportable
segment. In accordance with push-down accounting, all goodwill is assigned to the reporting units following a business combination.
When evaluating goodwill for impairment, the Corporation may decide to first perform a qualitative assessment, or “Step Zero”
impairment test, to determine whether it is more likely than not that impairment has occurred. The qualitative assessment includes a
review of macroeconomic conditions, industry and market considerations, internal cost factors, and our own overall financial and
share price performance, among other factors. If it is determined that it is more likely than not that the carrying amounts of our
reporting units exceed their fair value, the Corporation will perform a quantitative assessment and calculate the estimated fair value
of the respective reporting unit. If the carrying amount of a reporting unit’s goodwill exceeds the fair value of that goodwill, an
impairment loss is recognized.
To assess a reporting unit’s fair value, the Corporation generally uses a combination of methods such as discounted cash flow
analysis and market multiples. The financial projections used in the discounted cash flow (“DCF”) valuation analysis are based on
the most recent (as of the valuation date) projections presented to the Corporation’s Asset / Liability Management Committee
(“ALCO”). These projections reflect management’s expectations for the reporting unit’s financial prospects considering economic
and industry conditions. The Corporation evaluates the results obtained under the valuation methodology to identify and understand
the key value drivers, to ascertain that the results obtained are reasonable and appropriate under the circumstances. Elements
considered include current market and economic conditions, developments in specific lines of business, and any particular features
of the individual reporting units.
The Corporation completed its annual goodwill impairment evaluation during the third quarter of 2025, using July 31, 2025 as the
evaluation date. Through a qualitative analysis, Step Zero, the Corporation determined that for all reporting units, except for the
Popular Equipment Finance (‘’PEF’’) reporting unit, it is more-likely-than-not that the fair value exceeded the carrying value. As a
result, the Corporation performed a quantitative test to assess PEF’s goodwill impairment.
The results of the PEF annual goodwill impairment test as of July 31, 2025, indicated that the estimated fair value was below it’s
carrying amount. Accordingly, the Corporation recognized a goodwill impairment charge of $
13.0
million, which was mainly driven by
lower projected earnings for the forecasted period, primarily due to lower lending activity.
The following tables present the gross amount of goodwill and accumulated impairment losses by reportable segments.
September 30, 2025
Balance at
Balance at
September 30,
Accumulated
September 30,
2025
impairment
2025
(In thousands)
(gross amounts)
losses
(net amounts)
Banco Popular de Puerto Rico
438,710
3,801
434,909
Popular U.S.
564,456
209,411
355,045
Total Popular, Inc.
1,003,166
213,212
789,954
December 31, 2024
Balance at
Balance at
December 31,
Accumulated
December 31,
2024
impairment
2024
(In thousands)
(gross amounts)
losses
(net amounts)
Banco Popular de Puerto Rico
438,710
3,801
434,909
Popular U.S.
564,456
196,411
368,045
Total Popular, Inc.
1,003,166
200,212
802,954
Note 12 – Deposits
Total deposits as of the end of the periods presented consisted of:
(In thousands)
September 30, 2025
December 31, 2024
Savings accounts
14,411,671
14,224,271
NOW, money market and other interest -bearing demand deposits
27,606,313
26,507,637
Total savings, NOW, money market and other interest-bearing demand deposits
42,017,984
40,731,908
Certificates of deposit:
Under $250,000
5,717,369
5,383,331
$250,000 and over
3,904,025
3,629,551
Total certificates of deposit
9,621,394
9,012,882
Total interest-bearing deposits
51,639,378
49,744,790
Non- interest-bearing deposits
14,874,026
15,139,555
Total deposits
66,513,404
64,884,345
A summary of certificates of deposits by maturity at September 30, 2025 follows:
(In thousands)
2025
3,400,879
2026
3,671,826
2027
935,141
2028
697,796
2029
436,147
2030 and thereafter
479,605
Total certificates of deposit
9,621,394
At September 30, 2025, the Corporation had brokered deposits amounting to $
1.8
billion (December 31, 2024 - $
1.6
billion).
The aggregate amount of overdrafts in demand deposit accounts that were reclassified to loans was $
8.4
million at September 30,
2025 (December 31, 2024 - $
10.4
million).
At September 30, 2025, Puerto Rico government deposits amounted to $
20.1
billion. Puerto Rico government deposits are interest
bearing accounts, which are indexed to short-term market rates and fluctuate in cost with changes in those rates, in accordance with
contractual terms.
Note 13 – Borrowings
Assets sold under agreements to repurchase
Assets sold under agreements to repurchase amounted to $
57
million at September 30, 2025 and $
55
million at December 31,
The Corporation’s repurchase transactions are overcollateralized with the securities detailed in the table below. The Corporation’s
repurchase agreements have a right of set-off with the respective counterparty under the supplemental terms of the master
repurchase agreements. In an event of default, each party has a right of set-off against the other party for amounts owed in the
related agreement and any other amount or obligation owed in respect of any other agreement or transaction between them.
Pursuant to the Corporation’s accounting policy, the repurchase agreements are not offset with other repurchase agreements held
with the same counterparty.
The following table presents information related to the Corporation’s repurchase transactions accounted for as secured borrowings
that are collateralized with debt securities available-for-sale, debt securities held-to-maturity, and other assets held-for-trading
purposes or which have been obtained under agreements to resell. It is the Corporation’s policy to maintain effective control over
assets sold under agreements to repurchase; accordingly, such securities continue to be carried on the Consolidated Statements of
Financial Condition.
Repurchase agreements accounted for as secured borrowings
September 30, 2025
December 31, 2024
Repurchase
Repurchase
(In thousands)
liability
liability
U.S. Treasury securities
Within 30 days
28,378
22,591
After 30 to 90 days
24,065
13,813
Total U.S. Treasury securities
52,443
36,404
Mortgage-backed securities
Within 30 days
4,410
4,924
After 30 to 90 days
13,505
Total mortgage-backed securities
4,410
18,429
Total
56,853
54,833
Repurchase agreements in this portfolio are generally short-term, often overnight. As such our risk is very limited. We manage the
liquidity risks arising from secured funding by sourcing funding globally from a diverse group of counterparties, providing a range of
securities collateral and pursuing longer durations, when appropriate.
Other short-term borrowings
At September 30, 2025 and December 31, 2024, other short-term borrowings consisted of $
400
million and $
225
million,
respectively, in FHLB Advances.
Notes Payable
The following table presents the composition of notes payable at September 30, 2025 and December 31, 2024.
(In thousands)
September 30, 2025
December 31, 2024
Advances with the FHLB with maturities ranging from
2025
through
2029
paying interest at
monthly
fixed rates ranging from
0.57
% to
4.17
195,312
302,722
Unsecured senior debt securities maturing on
2028
paying interest
semi-annually
at a fixed rate of
7.25
%, net of debt issuance costs of $
3,751
396,249
395,198
Junior subordinated deferrable interest debentures (related to trust preferred securities) maturing on
2034
with fixed interest rates ranging from
6.125
% to
6.564
%, net of debt issuance costs of $
241
198,393
198,373
Total notes payable
789,954
896,293
Note: Refer to the 2024 Form 10-K for rates information at December 31, 2024.
A breakdown of borrowings by contractual maturities at September 30, 2025 is included in the table below.
Assets sold under
Short-term
(In thousands)
agreements to
repurchase
borrowings
Notes payable
Total
2025
56,853
400,000
30,692
487,545
2026
74,500
74,500
2027
6,112
6,112
2028
440,599
440,599
2029
39,658
39,658
Later years
198,393
198,393
Total borrowings
56,853
400,000
789,954
1,246,807
At September 30, 2025 and December 31, 2024, the Corporation had FHLB borrowing facilities whereby the Corporation could
borrow up to $
4.8
billion and $
4.7
billion, respectively, of which $
0.6
billion and $
0.5
billion, respectively, were used. In addition, at
December 31, 2024, the Corporation had placed $
0.3
billion of the available FHLB credit facility as collateral for municipal letters of
credit to secure deposits. The FHLB borrowing facilities are collateralized with securities and loans held-in-portfolio, and do not have
restrictive covenants or callable features.
Also, at September 30, 2025, the Corporation had borrowing facilities at the discount window of the Federal Reserve Bank of New
York amounting to $
11.2
billion (December 31, 2024 - $
7.0
billion), which remained unused at September 30, 2025 and December
31, 2024. The facilities are a collateralized source of credit that is highly dependable even under difficult market conditions.
Note 14 − Other liabilities
The caption of other liabilities in the Consolidated Statements of Financial Condition consists of the following major categories:
(In thousands)
September 30, 2025
December 31, 2024
Accrued expenses
332,204
334,145
Accrued interest payable
53,682
60,723
Accounts payable
99,649
91,218
Dividends payable
50,376
49,546
Trades payable
306,775
495,139
Liability for GNMA loans sold with an option to repurchase
9,389
9,108
Reserves for loan indemnifications
2,240
2,779
Reserve for operational losses
23,279
29,465
Operating lease liabilities
109,328
103,198
Finance lease liabilities
27,524
23,141
Pension benefit obligation
5,618
5,816
Postretirement benefit obligation
97,828
99,172
Others
72,023
68,396
Total other liabilities
1,189,915
1,371,846
Note 15 – Stockholders’ equity
As of September 30, 2025, stockholders’ equity totaled $
6.1
billion. During the nine months ended September 30, 2025, the
Corporation declared cash dividends of $
2.15
(2024 - $
1.86
) per common share amounting to $
146.6
million (2024 - $
134.3
million).
The quarterly dividend of $
0.75
per share declared to stockholders of record as of the close of business on
September 12, 2025
was
paid on
October 1, 2025
During the quarter ended September 30, 2024, the Corporation completed the repurchase of
599,096
shares of common stock for
58.8
million at an average price of $
98.11
per share under the 2024 common stock repurchase program. During the quarter and
nine months ended September 30, 2025, the Corporation repurchased
1,000,862
shares of common stock for $
119.4
million at an
average price of $
119.33
per share, and
3,407,821
shares of common stock for $
353.7
million at an average price of $
103.78
, per
share, respectively, as part of the 2024 and 2025 common stock repurchases programs. As of September 30, 2025, $
429.0
million
remained available for stock repurchase under the active repurchase authorization.
Note 16 – Other comprehensive income (loss)
The following table presents changes in accumulated other comprehensive income (loss) by component for the quarters and nine
months ended September 30, 2025 and 2024.
Changes in Accumulated Other Comprehensive Loss by Component [1]
Quarters ended
Nine months ended
September 30,
September 30,
(In thousands)
2025
2024
2025
2024
Foreign currency translation
Beginning Balance
(70,512)
(68,383)
(71,365)
(64,528)
Other comprehensive (loss) income
(14,524)
615
(13,670)
(3,240)
Net change
(14,524)
615
(13,670)
(3,240)
Ending balance
(85,036)
(67,768)
(85,035)
(67,768)
Adjustment of pension and
postretirement benefit plans
Beginning Balance
(91,851)
(113,371)
(94,692)
(117,894)
Amounts reclassified from accumulated other
comprehensive loss for amortization of net losses
1,421
2,261
4,262
6,784
Net change
1,421
2,261
4,262
6,784
Ending balance
(90,430)
(111,110)
(90,430)
(111,110)
Unrealized net holding losses
on debt securities
Beginning Balance
(1,233,294)
(1,696,528)
(1,495,183)
(1,713,109)
Other comprehensive income
94,747
326,148
283,394
271,985
Amounts reclassified from accumulated other
comprehensive loss for amortization of net unrealized
losses of debt securities transferred from available-for-
sale to held-to-maturity
37,753
36,264
110,994
107,008
Net change
132,500
362,412
394,388
378,993
Ending balance
(1,100,794)
(1,334,116)
(1,100,795)
(1,334,116)
Total accumulated other comprehensive loss
(1,276,260)
(1,512,994)
(1,276,260)
(1,512,994)
[1]
All amounts presented are net of tax.
The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss)
during the quarters and nine months ended September 30, 2025 and 2024.
Reclassifications Out of Accumulated Other Comprehensive Loss
Quarters ended
Nine months ended
Affected Line Item in the
September 30,
September 30,
(In thousands)
Consolidated Statements of Operations
2025
2024
2025
2024
Adjustment of pension and postretirement benefit plans
Amortization of net losses
Other operating expenses
(2,272)
(3,618)
(6,817)
(10,854)
Total before tax
(2,272)
(3,618)
(6,817)
(10,854)
Income tax benefit
851
1,357
2,555
4,070
Total net of tax
(1,421)
(2,261)
(4,262)
(6,784)
Unrealized net holding losses on debt securities
Amortization of unrealized net losses of debt
securities transferred to held-to-maturity
Interest income from investment securities
(47,191)
(45,331)
(138,743)
(133,761)
Total before tax
(47,191)
(45,331)
(138,743)
(133,761)
Income tax expense
9,438
9,067
27,749
26,753
Total net of tax
(37,753)
(36,264)
(110,994)
(107,008)
Total reclassification adjustments, net of tax
(39,174)
(38,525)
(115,256)
(113,792)
Note 17 – Guarantees
The Corporation has obligations upon the occurrence of certain events under financial guarantees provided in certain contractual
agreements. Also, from time to time, the Corporation securitized mortgage loans into guaranteed mortgage-backed securities
subject, in certain instances, to lifetime credit recourse on the loans that serve as collateral for the mortgage-backed securities. The
Corporation has not sold any mortgage loans subject to credit recourse since 2009. Also, from time to time, the Corporation may
sell, in bulk sale transactions, residential mortgage loans and Small Business Administration (“SBA”) commercial loans subject to
credit recourse or to certain representations and warranties from the Corporation to the purchaser. These representations and
warranties may relate, for example, to borrower creditworthiness, loan documentation, collateral, prepayment and early payment
defaults. The Corporation may be required to repurchase the loans under the credit recourse agreements or representation and
warranties
At September 30, 2025, the Corporation serviced $
445
million (December 31, 2024 - $
495
million) in residential mortgage loans
subject to credit recourse provisions, principally loans associated with FNMA and FHLMC residential mortgage loan securitization
programs. In the event of any customer default, pursuant to the credit recourse provided, the Corporation is required to repurchase
the loan or reimburse the third-party investor for the loss incurred. During the quarter and nine months ended September 30, 2025,
the Corporation repurchased $
0.2
million and $
1.1
million, respectively, of unpaid principal balance in mortgage loans subject to the
credit recourse provisions (September 30, 2024
0.5
million and $
1.5
million, respectively). At September 30, 2025, the
Corporation’s liability established to cover the estimated credit loss exposure related to loans sold or serviced with credit recourse
amounted to $
2
million (December 31, 2024 - $
3
million).
From time to time, the Corporation sells loans and agrees to indemnify the purchaser for credit losses or any breach of certain
representations and warranties made in connection with the sale.
Servicing agreements relating to the mortgage-backed securities programs of FNMA, FHLMC and GNMA, and to mortgage loans
sold or serviced to certain other investors, including FHLMC, require the Corporation to advance funds to make scheduled payments
of principal, interest, taxes and insurance, if such payments have not been received from the borrowers. At September 30, 2025, the
Corporation serviced $
8.4
billion in mortgage loans for third parties, including the loans serviced with credit recourse (December 31,
2024 - $
9.0
billion). The Corporation generally recovers funds advanced pursuant to these arrangements from the mortgage owner,
from liquidation proceeds when the mortgage loan is foreclosed or, in the case of FHA/VA loans, under the applicable FHA and
VA
insurance and guarantees programs. However, in the meantime, the Corporation must absorb the cost of the funds it advances
during the time the advance is outstanding. The Corporation must also bear the costs of attempting to collect on delinquent and
defaulted mortgage loans. In addition, if a defaulted loan is not cured, the mortgage loan would be canceled as part of the
foreclosure proceedings and the Corporation would not receive any future servicing income with respect to that loan. At September
30, 2025, the outstanding balance of funds advanced by the Corporation under such mortgage loan servicing agreements was $
31
million (December 31, 2024 - $
44
million). To the extent the mortgage loans underlying the Corporation’s servicing portfolio
experience increased delinquencies, the Corporation would be required to dedicate additional cash resources to comply with its
obligation to advance funds as well as incur additional administrative costs related to increases in collection efforts.
Popular, Inc. Holding Company (“PIHC”) fully and unconditionally guarantees certain borrowing obligations issued by certain of its
100
% owned consolidated subsidiaries amounting to $
94
million at September 30, 2025 and December 31, 2024, respectively. In
addition, at both September 30, 2025 and December 31, 2024, PIHC fully and unconditionally guaranteed on a subordinated basis
193
million of capital securities (trust preferred securities) issued by wholly-owned issuing trust entities to the extent set forth in the
applicable guarantee agreement. Refer to Note 17 to the Consolidated Financial Statements in the 2024 Form 10-K for further
information on the trust preferred securities.
Note 18 – Commitments and contingencies
Off-balance sheet risk
The Corporation is a party to financial instruments with off-balance sheet credit risk in the normal course of business to meet the
financial needs of its customers. These financial instruments include loan commitments, letters of credit and standby letters of credit.
These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the
Consolidated Statements of Financial Condition.
The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for
commitments to extend credit, standby letters of credit and financial guarantees is represented by the contractual notional amounts
of those instruments. The Corporation uses the same credit policies in making these commitments and conditional obligations as it
does for those reflected on the Consolidated Statements of Financial Condition.
Financial instruments with off-balance sheet credit risk, whose contract amounts represent potential credit risk as of the end of the
periods presented were as follows:
(In thousands)
September 30, 2025
December 31, 2024
Commitments to extend credit:
Credit card lines
6,266,974
5,599,823
Commercial lines of credit
4,422,977
3,971,331
Construction lines of credit
1,126,310
1,131,824
Other consumer unused credit commitments
275,462
260,121
Commercial letters of credit
14,920
5,002
Standby letters of credit
130,856
144,845
Commitments to originate or fund mortgage loans
16,091
29,604
At September 30, 2025 and December 31, 2024, the Corporation maintained a reserve of $
14
million and $
15
million, respectively,
for potential losses associated with unfunded loan commitments related to commercial and construction lines of credit.
Other commitments
At September 30, 2025 and December 31, 2024, the Corporation also maintained other non-credit commitments for $
6
million,
primarily for the acquisition of other investments.
Business concentration
Since the Corporation’s business activities are concentrated primarily in Puerto Rico, its results of operations and financial condition
are dependent upon the general trends of the Puerto Rico economy and, in particular, the residential and commercial real estate
markets. The concentration of the Corporation’s operations in Puerto Rico exposes it to greater risk than other banking companies
with a wider geographic base. Its asset and revenue composition by geographical area is presented in Note 28 to the Consolidated
Financial Statements.
Puerto Rico has faced significant fiscal and economic challenges for over a decade. In response to such challenges, the U.S.
Congress enacted PROMESA in 2016, which, among other things, established the Oversight Board and a framework for the
restructuring of the debts of the Commonwealth, its instrumentalities and municipalities. The Commonwealth and several of its
instrumentalities have availed themselves of debt restructuring proceedings under PROMESA. As of the date of this report, while
municipalities have been designated as covered entities under PROMESA, no municipality has commenced or has been authorized
by the Oversight Board to commence, any such debt restructuring proceeding under PROMESA.
At September 30, 2025, the Corporation’s direct exposure to the Puerto Rico government and its instrumentalities and municipalities
totaled $
391
million, of which $
342
million were outstanding ($
336
million and $
336
million at December 31, 2024). The
Corporation’s exposure at September 30, 2025, included up to $
47.4
million in Automated Clearing House (“ACH”) transaction
settlement exposure, none of which was outstanding. Of the amount outstanding, $
333
million consists of loans and $
9
million are
securities ($
323
million and $
13
million at December 31, 2024). Substantially all of the amount outstanding at September 30, 2025
and December 31, 2024 were obligations from various Puerto Rico municipalities. In most cases, these were “general obligations” of
a municipality, to which the applicable municipality has pledged its good faith, credit and unlimited taxing power, or “special
obligations” of a municipality, to which the applicable municipality has pledged other revenues. At September 30, 2025, approximately
76
% of the Corporation’s exposure to municipal loans and securities was concentrated in the municipalities of San
Juan, Guaynabo, Carolina and Caguas.
The following table details the loans and investments representing the Corporation’s direct exposure to the Puerto Rico government
according to their maturities as of September 30, 2025
(In thousands)
Investment
Portfolio
Loans
Total Outstanding
Total Exposure
Central Government
Within 1 year
47,400
After 10 years
41
41
41
Total Central Government
41
41
47,441
Municipalities
Within 1 year
2,605
11,574
14,179
16,179
After 1 to 5 years
5,660
166,515
172,175
172,175
After 5 to 10 years
450
124,087
124,537
124,537
After 10 years
30,991
30,991
30,991
Total Municipalities
8,715
333,167
341,882
343,882
Total Direct Government Exposure
8,756
333,167
341,923
391,323
In addition, at September 30, 2025, the Corporation had $
208
million in loans insured or securities issued by Puerto Rico
governmental entities but for which the principal source of repayment is non-governmental ($
220
million at December 31, 2024).
These included $
165
million in residential mortgage loans insured by the Puerto Rico Housing Finance Authority (“HFA”), a
governmental instrumentality that has been designated as a covered entity under PROMESA (December 31, 2024 - $
176
million).
These mortgage loans are secured by first mortgages on Puerto Rico residential properties and the HFA insurance covers losses in
the event of a borrower default and upon the satisfaction of certain other conditions. The Corporation also had at September 30,
2025, $
36
million in bonds issued by HFA which are secured by second mortgage loans on Puerto Rico residential properties, and
for which HFA also provides insurance to cover losses in the event of a borrower default and upon the satisfaction of certain other
conditions (December 31, 2024 - $
38
million). In the event that the mortgage loans insured by HFA and held by the Corporation
directly or those serving as collateral for the HFA bonds default and the collateral is insufficient to satisfy the outstanding balance of
these loans, HFA’s ability to honor its insurance will depend, among other factors, on the financial condition of HFA at the time such
obligations become due and payable. The Corporation does not consider the government guarantee when estimating the credit
losses associated with this portfolio. Although the Governor is currently authorized by local legislation to impose a temporary
moratorium on the financial obligations of the HFA, a moratorium on such obligations has not been imposed as of the date hereof.
BPPR’s commercial loan portfolio also includes loans to private borrowers who are service providers, lessors, suppliers or have
other relationships with the government. These borrowers could be negatively affected by the Commonwealth’s fiscal crisis and the
ongoing Title III proceedings under PROMESA. Similarly, BPPR’s mortgage and consumer loan portfolios include loans to
government employees and retirees, which could also be negatively affected by fiscal measures such as employee layoffs or
furloughs or reductions in pension benefits.
In addition, $
2.4
billion of residential mortgages and $
80.9
million commercial loans were insured or guaranteed by the U.S.
Government or its agencies at September 30, 2025 (compared to $
2.1
billion and $
87.4
million, respectively, at December 31,
2024). The Corporation also had U.S. Treasury and obligations from the U.S. Government, its agencies or government sponsored
entities within the portfolio of available-for-sale and held-to-maturity securities as described in Note 5 and 6 to the Consolidated
Financial Statements.
At September 30, 2025, the Corporation had operations in the United States Virgin Islands (the “USVI”) and had $
28
million in direct
exposure to USVI government entities (December 31, 2024 - $
28
million). The USVI has been experiencing a number of fiscal and
economic challenges that could adversely affect the ability of its public corporations and instrumentalities to service their outstanding
debt obligations. PROMESA does not apply to the USVI and, as such, there is currently no federal legislation permitting the
restructuring of the debts of the USVI and its public corporations and instrumentalities.
At September 30, 2025, the Corporation had operations in the British Virgin Islands (“BVI”) and it had a loan portfolio amounting to
193
million comprised of various retail and commercial clients, compared to a loan portfolio of $
196
million at December 31, 2024.
At September 30, 2025, the Corporation had
no
significant exposure to a single borrower in the BVI.
FDIC Special Assessment
On November 16, 2023, the Federal Deposit Insurance Corporation (“FDIC”) imposed a special assessment (the “FDIC Special
Assessment”) amount to recover the losses to the deposit insurance fund resulting from the FDIC’s funds used, in March 2023, in
connection with the systemic risk exception, to the least-cost resolution test, under the Federal Deposit Insurance Act to manage the
receiverships of several failed banks. In connection with this assessment, the Corporation accrued $
71.4
million, $
45.3
million net of
tax, in the fourth quarter of 2023, representing the full amount of the assessment.
During the first quarter of 2024, the Corporation recorded an additional expense of $
14.3
million, $
9.1
million net of tax, to reflect the
FDIC's higher loss estimate communicated by the FDIC. The special assessment amount and collection period may change as the
estimated loss is periodically adjusted or if the total amount collected varies. The last payment for the FDIC special assessment is
projected to be in the third quarter, September 2026.
Legal Proceedings
The nature of Popular’s business ordinarily generates claims, litigation, arbitration, regulatory and governmental investigations, and
legal and administrative cases and proceedings (collectively, “Legal Proceedings”). Popular’s Legal Proceedings may involve
various lines of business and include claims relating to contract, torts, consumer protection, securities, antitrust, employment, tax
and other laws. The recovery sought in Legal Proceedings may include substantial or indeterminate compensatory damages,
punitive damages, injunctive relief, or recovery on a class-wide basis. When the Corporation determines that it has meritorious
defenses to the claims asserted, it vigorously defends itself. The Corporation will consider the settlement of cases (including cases
where it has meritorious defenses) when, in management’s judgment, it is in the best interest of the Corporation and its stockholders
to do so. On at least a quarterly basis, Popular assesses its liabilities and contingencies relating to outstanding Legal Proceedings
utilizing the most current information available. For matters where it is probable that the Corporation will incur a material loss and the
amount can be reasonably estimated, the Corporation establishes an accrual for the loss. Once established, the accrual is adjusted
on at least a quarterly basis to reflect any relevant developments, as appropriate. For matters where a material loss is not probable,
or the amount of the loss cannot be reasonably estimated, no accrual is established.
In certain cases, exposure to loss exists in excess of any accrual to the extent such loss is reasonably possible, but not probable.
Management believes and estimates that the range of reasonably possible losses (with respect to those matters where such limits
may be determined in excess of amounts accrued) for current Legal Proceedings ranged from $
0
to approximately $
7.2
million as of
September 30, 2025. In certain cases, management cannot reasonably estimate the possible loss at this time. Any estimate
involves significant judgment, given the varying stages of the Legal Proceedings (including the fact that many of them are currently
in preliminary stages), the existence of multiple defendants in several of the current Legal Proceedings whose share of liability has
yet to be determined, the numerous unresolved issues in many of the Legal Proceedings, and the inherent uncertainty of the various
potential outcomes of such Legal Proceedings. Accordingly, management’s estimate will change from time-to-time, and actual
losses may be more or less than the current estimate.
While the outcome of Legal Proceedings is inherently uncertain, based on information currently available, advice of counsel, and
available insurance coverage, management believes that the amount it has already accrued is adequate and any incremental
liability arising from the Legal Proceedings in matters in which a loss amount can be reasonably estimated will not have a material
adverse effect on the Corporation’s consolidated financial position. However, in the event of unexpected future developments, it is
possible that the ultimate resolution of these matters in a reporting period, if unfavorable, could have a material adverse effect on
the Corporation’s consolidated financial position for that period.
Note 19 – Non-consolidated variable interest entities
The Corporation is involved with
two
statutory trusts which it created to issue trust preferred securities to the public. These trusts are
deemed to be variable interest entities (“VIEs”) since the equity investors at risk have no substantial decision-making rights. The
Corporation does not hold any variable interest in the trusts, and therefore, cannot be the trusts’ primary beneficiary. Furthermore,
the Corporation concluded that it did not hold a controlling financial interest in these trusts since the decisions of the trusts are
predetermined through the trust documents and the guarantee of the trust preferred securities is irrelevant since in substance the
sponsor is guaranteeing its own debt.
Also, the Corporation is involved with various special purpose entities mainly in guaranteed mortgage securitization transactions,
including GNMA and FNMA.
The Corporation has also engaged in securitization transactions with FHLMC, but considers its
exposure in the form of servicing fees and servicing advances not to be significant
at September 30, 2025
These special purpose
entities are deemed to be VIEs since they lack equity investments at risk. The Corporation’s continuing involvement in these
guaranteed loan securitizations includes owning certain beneficial interests in the form of securities as well as the servicing rights
retained. The Corporation is not required to provide additional financial support to any of the variable interest entities to which it has
transferred the financial assets. The mortgage-backed securities, to the extent retained, are classified in the Corporation’s
Consolidated Statements of Financial Condition as available-for-sale or trading securities. The Corporation concluded that,
essentially, these entities (FNMA and GNMA) control the design of their respective VIEs, dictate the quality and nature of the
collateral, require the underlying insurance, set the servicing standards via the servicing guides and can change them at will, and
can remove a primary servicer with cause, and without cause in the case of FNMA. Moreover, through their guarantee obligations,
agencies (FNMA and GNMA) have the obligation to absorb losses that could be potentially significant to the VIE.
The Corporation holds variable interests in these VIEs in the form of agency mortgage-backed securities and collateralized
mortgage obligations, including those securities originated by the Corporation and those acquired from third parties. Additionally, the
Corporation holds agency mortgage-backed securities and agency collateralized mortgage obligations issued by third party VIEs in
which it has no other form of continuing involvement. Refer to Note 21 to the Consolidated Financial Statements for additional
information on the debt securities outstanding at September 30, 2025 and December 31, 2024, which are classified as available-for-
sale and trading securities in the Corporation’s Consolidated Statements of Financial Condition. In addition, the Corporation holds
variable interests in the form of servicing fees, since it retains the right to service the transferred loans in those government-
sponsored special purpose entities (“SPEs”) and may also purchase the right to service loans in other government-sponsored SPEs
that were transferred to those SPEs by a third-party.
The following table presents the carrying amount and classification of the assets related to the Corporation’s variable interests in
non-consolidated VIEs and the maximum exposure to loss as a result of the Corporation’s involvement as servicer of GNMA and
FNMA loans at September 30, 2025 and December 31, 2024.
(In thousands)
September 30, 2025
December 31, 2024
Assets
Servicing assets:
Mortgage servicing rights
76,673
84,356
Total servicing assets
76,673
84,356
Other assets:
Servicing advances
4,017
6,112
Total other assets
4,017
6,112
Total assets
80,690
90,468
Maximum exposure to loss
80,690
90,468
The size of the non-consolidated VIEs, in which the Corporation has a variable interest in the form of servicing fees, measured as
the total unpaid principal balance of the loans, amounted to $
6.1
billion at September 30, 2025 (December 31, 2024 - $
6.6
billion).
The Corporation determined that the maximum exposure to loss includes the fair value of the MSRs and the assumption that the
servicing advances at September 30, 2025 and December 31, 2024, will not be recovered. The agency debt securities are not
included as part of the maximum exposure to loss since they are guaranteed by the related agencies.
ASU 2009-17 requires that an ongoing primary beneficiary assessment should be made to determine whether the Corporation is the
primary beneficiary of any of the VIEs it is involved with. The conclusion on the assessment of these non-consolidated VIEs has not
changed since their initial evaluation. The Corporation concluded that it is still not the primary beneficiary of these VIEs, and
therefore, these VIEs are not required to be consolidated in the Corporation’s financial statements at September 30, 2025.
Note 20 – Related party transactions
Centro Financiero BHD, S.A.
At September 30, 2025, the Corporation had a
15.63
% equity interest in Centro Financiero BHD, S.A. (“BHD”), one of the largest
banking and financial services groups in the Dominican Republic. During the nine months ended September 30, 2025, the
Corporation recorded $
17.0
million in equity pickup (September 30, 2024 - $
29.6
million), including the net impact of $
33.8
million
from net earnings (September 30, 2024 - $
31.5
million), offset by ($
16.8
) million recorded through Other Comprehensive Income
(September 30, 2024 - ($
1.9
) million) related to foreign currency translation adjustments and changes in the fair value of available
for sale securities. At September 30, 2025, the investment in BHD had a carrying amount of $
236.5
million (December 31, 2024 -
239.5
million) and the Corporation received $
20
million in cash dividend distributions during the nine months ended September 30,
2025 (September 30, 2024 - $
19.4
million).
Note 21 – Fair value measurement
ASC Subtopic 820-10 “Fair Value Measurements and Disclosures” establishes a fair value hierarchy that prioritizes the inputs to
valuation techniques used to measure fair value into three levels in order to increase consistency and comparability in fair value
measurements and disclosures. The hierarchy is broken down into three levels based on the reliability of inputs as follows:
Level 1
- Unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to
access at the measurement date. Valuation on these instruments does not necessitate a significant degree of judgment since
valuations are based on quoted prices that are readily available in an active market.
Level 2
- Quoted prices other than those included in Level 1 that are observable either directly or indirectly. Level 2 inputs
include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in
markets that are not active, or other inputs that are observable or that can be corroborated by observable market data for
substantially the full term of the financial instrument.
Level 3
- Inputs are unobservable and significant to the fair value measurement. Unobservable inputs reflect the Corporation’s
own judgements about assumptions that market participants would use in pricing the asset or liability.
The Corporation maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the
observable inputs be used when available. Fair value is based upon quoted market prices when available. If listed prices or quotes
are not available, the Corporation employs internally-developed models that primarily use market-based inputs including yield
curves, interest rates, volatilities, and credit curves, among others. Valuation adjustments are limited to those necessary to ensure
that the financial instrument’s fair value is adequately representative of the price that would be received or paid in the marketplace.
These adjustments include amounts that reflect counterparty credit quality, the Corporation’s credit standing, constraints on liquidity
and unobservable parameters that are applied consistently. There have been no changes in the Corporation’s methodologies used
to estimate the fair value of assets and liabilities from those disclosed in the 2024 Form 10-K.
The estimated fair value may be subjective in nature and may involve uncertainties and matters of significant judgment for certain
financial instruments. Changes in the underlying assumptions used in calculating fair value could significantly affect the results.
Fair Value on a Recurring and Nonrecurring Basis
The following fair value hierarchy tables present information about the Corporation’s assets and liabilities measured at fair value on
a recurring basis at September 30, 2025 and December 31, 2024:
At September 30, 2025
(In thousands)
Level 1
Level 2
Level 3
Measured at NAV
Total
RECURRING FAIR VALUE MEASUREMENTS
Assets
Debt securities available-for-sale:
U.S. Treasury securities
6,423,246
9,283,519
15,706,765
Collateralized mortgage obligations - federal
agencies
104,700
104,700
Mortgage-backed securities
4,873,777
431
4,874,208
Other
750
750
Total debt securities available-for-sale
6,423,246
14,261,996
1,181
20,686,423
Trading account debt securities, excluding
derivatives:
U.S. Treasury securities
8,026
10
8,036
Obligations of Puerto Rico, States and political
subdivisions
46
46
Collateralized mortgage obligations
595
595
Mortgage-backed securities
24,227
84
24,311
Other
118
118
Total trading account debt securities, excluding
derivatives
8,026
24,878
202
33,106
Equity securities
50,047
825
50,872
Mortgage servicing rights
99,523
99,523
Loans held-for-sale
4,785
4,785
Derivatives
27,716
27,716
Total assets measured at fair value on a
recurring basis
6,431,272
14,369,422
100,906
825
20,902,425
Liabilities
Derivatives
(26,157)
(26,157)
Total liabilities measured at fair value on a
recurring basis
(26,157)
(26,157)
At December 31, 2024
(In thousands)
Level 1
Level 2
Level 3
Measured at NAV
Total
RECURRING FAIR VALUE MEASUREMENTS
Assets
Debt securities available-for-sale:
U.S. Treasury securities
7,512,171
5,482,939
12,995,110
Collateralized mortgage obligations - federal
agencies
120,284
120,284
Mortgage-backed securities
5,127,775
484
5,128,259
Other
2,250
2,250
Total debt securities available-for-sale
7,512,171
10,730,998
2,734
18,245,903
Trading account debt securities, excluding
derivatives:
U.S. Treasury securities
2,814
10
2,824
Obligations of Puerto Rico, States and political
subdivisions
55
55
Collateralized mortgage obligations
655
655
Mortgage-backed securities
29,032
84
29,116
Other
133
133
Total trading account debt securities, excluding
derivatives
2,814
29,752
217
32,783
Equity securities
45,664
381
46,045
Mortgage servicing rights
108,103
108,103
Loans held-for-sale
5,423
5,423
Derivatives
26,023
26,023
Total assets measured at fair value on a
recurring basis
7,514,985
10,837,860
111,054
381
18,464,280
Liabilities
Derivatives
(22,832)
(22,832)
Total liabilities measured at fair value on a
recurring basis
(22,832)
(22,832)
Loans held-for-sale measured at fair value
Loans held-for-sale measured at fair value were priced based on secondary market prices. These loans are classified as Level 2.
The following tables summarize the difference between the aggregate fair value and the aggregate unpaid principal balance for
mortgage loans originated as held-for-sale measured at fair value as of September 30, 2025 and December 31, 2024.
(In thousands)
September 30, 2025
Aggregate Unpaid
Fair Value
Principal Balance
Difference
Loans held for sale
4,785
4,715
70
(In thousands)
December 31, 2024
Aggregate Unpaid
Fair Value
Principal Balance
Difference
Loans held for sale
5,423
5,436
(13)
No
loans held-for-sale were 90 or more days past due or on nonaccrual status as of September 30, 2025 and December 31, 2024.
The fair value information included in the following tables is not as of period end, but as of the date that the fair value measurement
was recorded during the nine months ended September 30, 2025 and 2024 and excludes nonrecurring fair value measurements of
assets no longer outstanding as of the reporting date.
Nine months ended September 30, 2025
(In thousands)
Level 1
Level 2
Level 3
Total
NONRECURRING FAIR VALUE MEASUREMENTS
Assets
Write-downs
Other real estate owned
[1]
3,983
3,983
(1,351)
Other foreclosed assets
[1]
196
196
(51)
Total assets measured at fair value on a nonrecurring basis
4,179
4,179
(1,402)
[1] Represents the fair value of foreclosed real estate and other collateral owned that were written down to their fair value. Costs to sell are
excluded from the reported fair value amount.
Nine months ended September 30, 2024
(In thousands)
Level 1
Level 2
Level 3
Total
NONRECURRING FAIR VALUE MEASUREMENTS
Assets
Write-downs
Loans
[1]
4,166
4,166
(654)
Other real estate owned
[2]
5,749
5,749
(1,889)
Other foreclosed assets
[2]
174
174
(38)
Total assets measured at fair value on a nonrecurring basis
10,089
10,089
(2,581)
[1] Relates mainly to certain impaired collateral dependent loans. The impairment was measured based on the fair value of the collateral, which is
derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations. Costs to sell are
excluded from the reported fair value amount.
[2] Represents the fair value of foreclosed real estate and other collateral owned that were written down to their fair value. Costs to sell are
excluded from the reported fair value amount.
The following tables present the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the quarters
and nine months ended September 30, 2025 and 2024.
Quarter ended September 30, 2025
MBS
Other
MBS
Other
classified
securities
classified
securities
as debt
classified as
as trading
classified
securities
debt securities
account
as trading
Mortgage
available-
available-
debt
account debt
servicing
Total
(In thousands)
for-sale
for-sale
securities
securities
rights
assets
Balance at June 30, 2025
432
750
84
122
103,077
104,465
Gains (losses) included in earnings
(4)
(3,835)
(3,839)
Gains (losses) included in OCI
(1)
(1)
Additions
281
281
Balance at September 30, 2025
431
750
84
118
99,523
100,906
Changes in unrealized gains (losses) included in
earnings relating to assets still held at September
30, 2025
(1,505)
(1,505)
Nine months ended September 30, 2025
MBS
Other
MBS
Other
classified
securities
classified
securities
as debt
classified as
as trading
classified
securities
debt securities
account
as trading
Mortgage
available-
available-
debt
account debt
servicing
Total
(In thousands)
for-sale
for-sale
securities
securities
rights
assets
Balance at January 1, 2025
484
2,250
84
133
108,103
111,054
Gains (losses) included in earnings
(15)
(9,359)
(9,374)
Gains (losses) included in OCI
(3)
(3)
Additions
779
779
Settlements
(50)
(50)
Transfers out of Level 3
(1,500)
(1,500)
Balance at September 30, 2025
431
750
84
118
99,523
100,906
Changes in unrealized gains (losses) included in
earnings relating to assets still held at September
30, 2025
23
(2,482)
(2,459)
Quarter ended September 30, 2024
MBS
Other
Other
classified
securities
MBS
securities
as debt
classified as
classified
classified
securities
debt securities
as trading
as trading
Mortgage
available-
available-
account debt
account debt
servicing
Total
(In thousands)
for-sale
for-sale
securities
securities
rights
assets
Balance at June 30, 2024
581
2,000
84
158
113,386
116,209
Gains (losses) included in earnings
(4)
(4,896)
(4,900)
Gains (losses) included in OCI
2
2
Additions
337
337
Settlements
(25)
(25)
Balance at September 30, 2024
558
2,000
84
154
108,827
111,623
Changes in unrealized gains (losses) included in
earnings relating to assets still held at September
30, 2024
6
(2,577)
(2,571)
Nine months ended September 30, 2024
MBS
Other
Other
classified
securities
CMOs
securities
as debt
classified as
classified
MBS
classified
securities
debt securities
as trading
classified as
as trading
Mortgage
available-
available-
account debt
trading account
account debt
servicing
Total
(In thousands)
for-sale
for-sale
securities
securities
securities
rights
assets
Balance at January 1, 2024
606
2,500
5
112
167
118,109
121,499
Gains (losses) included in earnings
(500)
(13)
(10,280)
(10,793)
Gains (losses) included in OCI
2
2
Additions
998
998
Settlements
(50)
(5)
(28)
(83)
Balance at September 30, 2024
558
2,000
84
154
108,827
111,623
Changes in unrealized gains (losses)
included in earnings relating to assets
still held at September 30, 2024
18
(3,279)
(3,261)
Gains and losses (realized and unrealized) included in earnings for the quarters and nine months ended September 30, 2025 and
2024 for Level 3 assets and liabilities included in the previous tables are reported in the Consolidated Statement of Operations as
follows:
Quarter ended September 30, 2025
Nine months ended September 30, 2025
Changes in unrealized
Changes in unrealized
Total gains
gains (losses) relating to
Total gains
gains (losses) relating to
(losses) included
assets still held at
(losses) included
assets still held at
(In thousands)
in earnings
reporting date
in earnings
reporting date
Mortgage banking activities
(3,835)
(1,505)
(9,359)
(2,482)
Trading account profit (loss)
(4)
(15)
23
Total
(3,839)
(1,505)
(9,374)
(2,459)
Quarter ended September 30, 2024
Nine months ended September 30, 2024
Changes in unrealized
Changes in unrealized
Total gains
gains (losses) relating to
Total gains
gains (losses) relating to
(losses) included
assets still held at
(losses) included
assets still held at
(In thousands)
in earnings
reporting date
in earnings
reporting date
Mortgage banking activities
(4,896)
(2,577)
(10,280)
(3,279)
Trading account profit (loss)
(4)
6
(13)
18
Provision for credit losses
(500)
Total
(4,900)
(2,571)
(10,793)
(3,261)
The following tables include quantitative information about significant unobservable inputs used to derive the fair value of Level 3
instruments, excluding those instruments for which the unobservable inputs were not developed by the Corporation such as prices
of prior transactions and/or unadjusted third-party pricing sources at September 30, 2025 and 2024.
Fair value at
September 30,
(In thousands)
2025
Valuation technique
Unobservable inputs
Weighted average (range) [1]
Other - trading
118
Discounted cash flow model
Weighted average life
2
years
Yield
12
.0%
Prepayment speed
10.8
Other real estate owned
34
[2]
External appraisal
Haircut applied on
external appraisals
20
[1]
Weighted average of significant unobservable inputs used to develop Level 3 fair value measurements were calculated by relative fair value.
[2]
Other real estate owned in which haircuts were not applied to external appraisals were excluded from this table.
Fair value at
September 30,
(In thousands)
2024
Valuation technique
Unobservable inputs
Weighted average (range) [1]
Other - trading
154
Discounted cash flow model
Weighted average life
2.3
years
Yield
12
.0%
Prepayment speed
10.8
Loans held-in-portfolio
4,166
[2]
External appraisal
Haircut applied on
external appraisals
7.5
5
.0% -
10
.0%)
Other real estate owned
16
[3]
External appraisal
Haircut applied on
external appraisals
35
.0%
[1]
Weighted average of significant unobservable inputs used to develop Level 3 fair value measurements were calculated by relative fair value.
[2]
Loans held-in-portfolio in which haircuts were not applied to external appraisals were excluded from this table.
[3]
Other real estate owned in which haircuts were not applied to external appraisals were excluded from this table.
Note 22 – 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 September 30, 2025 and
December 31, 2024, 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.
September 30, 2025
Carrying
Measured
(In thousands)
amount
Level 1
Level 2
Level 3
at NAV
Fair value
Financial Assets:
Cash and due from banks
377,079
377,079
377,079
Money market investments
4,754,391
4,744,211
10,180
4,754,391
Trading account debt securities, excluding derivatives
[1]
33,106
8,026
24,878
202
33,106
Debt securities available-for-sale
[1]
20,686,423
6,423,246
14,261,996
1,181
20,686,423
Debt securities held-to-maturity:
U.S. Treasury securities
7,374,072
7,405,080
7,405,080
Obligations of Puerto Rico, States and political
subdivisions
45,760
6,799
40,334
47,133
Collateralized mortgage obligation-federal agency
1,506
1,315
1,315
Securities in wholly owned statutory business trusts
5,960
5,960
5,960
Total debt securities held-to-maturity
7,427,298
7,419,154
40,334
7,459,488
Equity securities:
FHLB stock
58,552
58,552
58,552
FRB stock
102,038
102,038
102,038
Other investments
58,403
50,047
8,137
825
59,009
Total equity securities
218,993
210,637
8,137
825
219,599
Loans held-for-sale
7,783
7,783
7,783
Loans held-in-portfolio
37,900,938
37,105,428
37,105,428
Mortgage servicing rights
99,523
99,523
99,523
Derivatives
27,716
27,716
27,716
September 30, 2025
Carrying
Measured
(In thousands)
amount
Level 1
Level 2
Level 3
at NAV
Fair value
Financial Liabilities:
Deposits:
Demand deposits
56,892,010
56,892,010
56,892,010
Time deposits
9,621,394
9,419,413
9,419,413
Total deposits
66,513,404
66,311,423
66,311,423
Assets sold under agreements to repurchase
56,853
56,859
56,859
Other short-term borrowings
[2]
400,000
400,000
400,000
Notes payable:
FHLB advances
195,312
193,131
193,131
Unsecured senior debt securities
396,249
420,152
420,152
Junior subordinated deferrable interest debentures
(related to trust preferred securities)
198,393
188,081
188,081
Total notes payable
789,954
801,364
801,364
Derivatives
26,157
26,157
26,157
[1]
Refer to Note 21 to the Consolidated Financial Statements for the fair value by class of financial asset and its hierarchy level.
[2]
Refer to Note 13 to the Consolidated Financial Statements for the composition of other short-term borrowings.
December 31, 2024
Carrying
Measured
(In thousands)
amount
Level 1
Level 2
Level 3
at NAV
Fair value
Financial Assets:
Cash and due from banks
419,638
419,638
419,638
Money market investments
6,380,948
6,371,180
9,768
6,380,948
Trading account debt securities, excluding derivatives
[1]
32,783
2,814
29,752
217
32,783
Debt securities available-for-sale
[1]
18,245,903
7,512,171
10,730,998
2,734
18,245,903
Debt securities held-to-maturity:
U.S. Treasury securities
7,693,418
7,623,824
7,623,824
Obligations of Puerto Rico, States and political
subdivisions
51,865
6,866
44,711
51,577
Collateralized mortgage obligation-federal agency
1,518
1,304
1,304
Securities in wholly owned statutory business trusts
5,959
5,959
5,959
Total debt securities held-to-maturity
7,752,760
7,637,953
44,711
7,682,664
Equity securities:
FHLB stock
55,786
55,786
55,786
FRB stock
100,304
100,304
100,304
Other investments
52,076
45,664
6,528
381
52,573
Total equity securities
208,166
201,754
6,528
381
208,663
Loans held-for-sale
5,423
5,423
5,423
Loans held-in-portfolio
36,361,628
35,652,539
35,652,539
Mortgage servicing rights
108,103
108,103
108,103
Derivatives
26,023
26,023
26,023
December 31, 2024
Carrying
Measured
(In thousands)
amount
Level 1
Level 2
Level 3
at NAV
Fair value
Financial Liabilities:
Deposits:
Demand deposits
55,871,463
55,871,463
55,871,463
Time deposits
9,012,882
8,795,803
8,795,803
Total deposits
64,884,345
64,667,266
64,667,266
Assets sold under agreements to repurchase
54,833
54,845
54,845
Other short-term borrowings
[2]
225,000
225,000
225,000
Notes payable:
FHLB advances
302,722
295,023
295,023
Unsecured senior debt securities
395,198
415,148
415,148
Junior subordinated deferrable interest debentures
(related to trust preferred securities)
198,373
189,758
189,758
Total notes payable
896,293
899,929
899,929
Derivatives
22,832
22,832
22,832
[1]
Refer to Note 21 to the Consolidated Financial Statements for the fair value by class of financial asset and its hierarchy level.
[2]
Refer to Note 13 to the Consolidated Financial Statements for the composition of other short-term borrowings.
Refer to Note 18 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 September 30, 2025 and December 31, 2024. 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.
Note 23 – Net income per common share
The following table sets forth the computation of net income per common share (“EPS”), basic and diluted, for the quarters and nine
months ended September 30, 2025 and 2024:
Quarters ended September 30,
Nine months ended September 30,
(In thousands, except per share information)
2025
2024
2025
2024
Net income
211,317
155,323
599,259
436,395
Preferred stock dividends
(353)
(353)
(1,059)
(1,059)
Net income applicable to common stock
210,964
154,970
598,200
435,336
Average common shares outstanding
67,058,260
71,807,136
68,121,447
71,882,273
Average potential dilutive common shares
35,554
21,266
22,239
29,880
Average common shares outstanding - assuming dilution
67,093,814
71,828,402
68,143,686
71,912,153
Basic EPS
3.15
2.16
8.78
6.06
Diluted EPS
3.14
2.16
8.78
6.05
For the quarters and nine months ended September 30, 2025 and 2024, the Corporation calculated the impact of potential dilutive
common shares under the treasury stock method, consistent with the method used for the preparation of the financial statements for
the year ended December 31, 2024. For a discussion of the calculation under the treasury stock method, refer to Note 30 of the
Consolidated Financial Statements included in the 2024 Form 10-K.
Note 24 – Revenue from contracts with customers
The following table presents the Corporation’s revenue streams from contracts with customers by reportable segment for the
quarters and nine months ended September 30, 2025 and 2024.
Quarter ended September 30,
Nine months ended September 30,
(In thousands)
2025
2025
BPPR
Popular U.S.
BPPR
Popular U.S.
Service charges on deposit accounts
36,392
2,685
109,042
7,915
Other service fees:
Debit card fees
27,868
216
81,809
625
Insurance fees, excluding reinsurance
9,449
1,772
25,849
5,682
Credit card fees, excluding late fees and membership fees
27,846
301
81,376
1,040
Sale and administration of investment products
9,459
27,490
Trust fees
7,279
20,789
Total revenue from contracts with customers [1]
118,293
4,974
346,355
15,262
[1]
The amounts include intersegment transactions of $
0.6
million and $
1.8
million, respectively, for the quarter and nine months ended September 30, 2025.
Quarter ended September 30,
Nine months ended September 30,
(In thousands)
2024
2024
BPPR
Popular U.S.
BPPR
Popular U.S.
Service charges on deposit accounts
35,699
2,616
105,770
7,513
Other service fees:
Debit card fees [2]
25,997
200
78,308
599
Insurance fees, excluding reinsurance
11,702
1,684
33,966
5,130
Credit card fees, excluding late fees and membership fees [2]
26,189
379
76,828
1,205
Sale and administration of investment products
8,387
23,664
Trust fees
6,902
20,810
Total revenue from contracts with customers [1]
114,876
4,879
339,346
14,447
[1]
The amounts include intersegment transactions of $
0.6
million and $
3.9
million, respectively, for the quarter and nine months ended September 30, 2024.
[2]
Effective in the third quarter of 2024, the Corporation reclassified certain interchange fees, which were previously included jointly with credit card fees
from common network activity, as debit card fees. For the nine month period ended September 30, 2024, interchange fees of approximately $
22.2
million,
corresponding to the first and second quarters were reclassified.
Revenue from contracts with customers is recognized when, or as, the performance obligations are satisfied by the Corporation by
transferring the promised services to the customers based on ASC 606 Revenue from Contracts with Customers. Revenue streams
identified from contracts with customers, as listed above, will have certain timing for recognition based on the nature of the contract
including when the obligation is satisfied and/or services are rendered. Service charges on deposit accounts, debit card fees, and
credit card fees are recognized at a point in time, upon the occurrence of an activity or an event. Interchange fees on debit and
credit card transactions are recognized upon settlement of the payment transaction. For more details over nature and timing of
revenue streams from contracts with customers refer to Note 31 on the 2024 Form 10-K for a complete description of the nature and
timing of revenue streams from contracts with customers.
Note 25 - Stock-based compensation
Incentive Plan
On May 12, 2020, the stockholders of the Corporation approved the Popular, Inc. 2020 Omnibus Incentive Plan, which permits the
Corporation to issue several types of stock-based compensation to employees and directors of the Corporation and/or any of its
subsidiaries (the “2020 Incentive Plan”). The 2020 Incentive Plan replaced the Popular, Inc. 2004 Omnibus Incentive Plan, which
was in effect prior to the adoption of the 2020 Incentive Plan (the “2004 Incentive Plan” and, together with the 2020 Incentive Plan,
the “Incentive Plan”). Participants under the Incentive Plan are designated by the Talent and Compensation Committee of the Board
of Directors (or its delegate, as determined by the Board). Under the Incentive Plan, the Corporation has issued restricted stock and
performance shares to its employees and restricted stock and restricted stock units (“RSUs”) to its directors.
The restricted stock granted under the Incentive Plan to employees becomes vested based on the employees’ continued service
with Popular.
Unless otherwise stated in an agreement, the compensation cost associated with the shares of restricted stock
granted prior to 2021 was determined based on a two-prong vesting schedule. These grants include ratable vesting over five or four
years commencing at the date of grant (“the graduated vesting portion”) with a portion vested at termination of employment after
attainment of 55 years of age and 10 years of service or 60 years of age and 5 years of service (“the retirement vesting portion”).
The graduated vesting portion is accelerated at termination of employment after attaining the earlier of 55 years of age and 10 years
of service or 60 years of age and 5 years of service. Restricted stock granted on or after 2021 have ratable vesting in equal annual
installments over a period of 4 years or 3 years, depending on the classification of the employee. The vesting schedule is
accelerated at termination of employment after attaining the earlier of 55 years of age and 10 years of service or 60 years of age
and 5 years of service.
The performance share awards granted under the Incentive Plan consist of the opportunity to receive shares of Popular, Inc.’s
common stock provided that the Corporation achieves certain goals during a three-year performance cycle. The goals will be based
on two metrics weighted equally: the Relative Total Shareholder Return (“TSR”) and the Absolute Return on Average Tangible
Common Equity (“ROATCE”). The TSR metric is a market condition under ASC 718. For equity settled awards based on market
conditions, the fair value is determined as of the grant date and is not subsequently revised based on actual performance. The
ROATCE metric is a performance condition under ASC 718. The fair value is determined based on the probability of achieving the
ROATCE goal as of each reporting period. The TSR and ROATCE metrics are equally weighted and work independently.
The
number of shares that will ultimately vest ranges from 50% to a 150% target based on both market (TSR) and performance
(ROATCE) conditions. The performance shares will vest at the end of the three-year performance cycle. If a participant terminates
employment after attaining the earlier of 55 years of age and 10 years of service or 60 years of age and 5 years of service, the
performance shares shall continue outstanding and vest at the end of the performance cycle.
The following table summarizes the restricted stock and performance shares activity under the Incentive Plan for members of
management.
(Not in thousands)
Shares
Weighted-Average
Grant Date Fair
Value
Non-vested at December 31, 2023
299,896
58.20
Granted
242,474
86.62
Performance Shares Quantity Adjustment
(18,650)
87.79
Vested
(267,873)
74.26
Forfeited
(7,939)
50.68
Non-vested at December 31, 2024
247,908
66.86
Granted
225,928
100.32
Performance Shares Quantity Adjustment
43,961
91.54
Vested
(281,558)
90.26
Forfeited
(5,515)
60.68
Non-vested at September 30, 2025
230,724
75.82
During the quarter ended September 30, 2025,
no
shares of restricted stock (September 30, 2024 –
928
shares of restricted stock)
were awarded to management under the Incentive Plan. During the quarters ended September 30, 2025 and 2024,
no
performance
shares were awarded to management under the Incentive Plan. During the nine months ended September 30, 2025,
194,268
shares of restricted stock (September 30, 2024 –
176,519
shares of restricted stock) and
31,660
performance shares (September
30, 2024 -
65,225
performance shares) were awarded to management under the Incentive Plan.
During the quarter ended September 30, 2025, the Corporation recognized $
2.1
million of restricted stock expense related to
management incentive awards, with a tax benefit of $
0.4
million (September 30, 2024 - $
1.8
million, with a tax benefit of $
0.4
million). For the nine months ended September 30, 2025, the Corporation recognized $
16.4
million of restricted stock expense
related to management incentive awards, with a tax benefit of $
2.1
million (September 30, 2024 - $
12.3
million, with a tax benefit of
2.0
million). For the nine months ended September 30, 2025, the fair market value of the restricted stock and performance shares
vested was $
20.0
million on the grant date and $
27.4
million at vesting date. This differential triggered a windfall of $
2.7
million that
was recorded as a reduction on income tax expense. During the quarter ended September 30, 2025, the Corporation recognized
(1.0)
million of performance shares expense/(credit), with a tax benefit of $
(0.1)
million due to performance shares target
adjustment (September 30, 2024 - $
(0.5)
million, with a tax benefit of $
(32)
thousand). For the nine months ended September 30,
2025, the Corporation recognized $
3.2
million of performance shares expense, with a tax benefit of $
0.3
million (September 30,
2024 - $
3.5
million, with a tax benefit of $
0.2
million). The total unrecognized compensation cost related to non-vested restricted
stock awards and performance shares to members of management at September 30, 2025 was $
14.6
million and is expected to be
recognized over a weighted-average period of
1.58
years.
The following table summarizes the restricted stock activity under the Incentive Plan for members of the Board of Directors:
(Not in thousands)
RSUs / Restricted stock
Weighted-Average Grant
Date Fair Value per Unit
Non-vested at December 31, 2023
Granted
25,462
89.51
Vested
(25,462)
89.51
Forfeited
Non-vested at December 31, 2024
Granted
23,310
100.14
Vested
(4,197)
98.52
Forfeited
Non-vested at September 30, 2025
19,113
100.49
The equity awards granted to members of the Board of Directors of Popular, Inc. (the “Directors”) after May 2025 will vest and
become non-forfeitable on the first anniversary of the grant date of such award. Equity awards granted to the Directors may be paid
in either common stock or RSUs, at each Director’s election. If RSUs are elected, the Directors may defer the delivery of the shares
of common stock underlying the RSUs award until their retirement. To the extent that cash dividends are paid on the Corporation’s
outstanding common stock, the Directors will receive an additional number of RSUs that reflect a reinvested dividend equivalent.
During the quarter ended September 30, 2025,
1,260
RSUs and
no
shares of restricted stock were granted to the Directors
(September 30, 2024 -
1,281
RSUs and
no
shares of restricted stock) and the Corporation recognized $
0.6
million of expense
related to these shares with a tax benefit of $
0.1
million (September 30, 2024 - $
0.1
million with a tax benefit of $
21
thousand). For
the nine months ended September 30, 2025, the Corporation
granted
20,622
RSUs and
2,688
shares of restricted stock to the
Directors (September 30, 2024 -
22,887
RSUs and
1,392
shares of unrestricted stock) and the Corporation recognized $
1.3
million
of expense related to these shares, with a tax benefit of $
0.2
million, (September 30, 2024 - $
2.2
million, with a tax benefit of $
0.4
million). The fair value at vesting date of the RSUs vested during the nine months ended September 30, 2025 for the Directors was
2.3
million.
Note 26 – Income taxes
The table below presents a reconciliation of the statutory income tax rate to the effective income tax rate:
Quarters ended
September 30, 2025
September 30, 2024
(In thousands)
Amount
% of pre-tax
income
Amount
% of pre-tax
income
Computed income tax expense at statutory rates
92,733
37.5
74,169
37.5
Net benefit of tax exempt income
(51,732)
(20.9)
(29,055)
(13.3)
Effect of income subject to preferential tax rate
(2,490)
(1.0)
(327)
Deferred tax asset valuation allowance
2,748
1.1
451
Difference in tax rates due to multiple jurisdictions
(6,212)
(2.5)
(6,764)
(3.1)
State and local taxes
2,717
1.1
3,429
0.4
Others
(1,794)
(0.8)
560
Income tax expense
35,970
14.5
42,463
21.5
Nine months ended
September 30, 2025
September 30, 2024
(In thousands)
Amount
% of pre-tax
income
Amount
% of pre-tax
income
Computed income tax expense at statutory rates
273,066
37.5
215,582
37.5
Net benefit of tax exempt income
(137,061)
(18.8)
(91,035)
(15.8)
Effect of income subject to preferential tax rate
(4,009)
(0.6)
(475)
(0.1)
Deferred tax asset valuation allowance
10,680
1.5
2,779
0.5
Difference in tax rates due to multiple jurisdictions
(11,469)
(1.6)
(11,893)
(2.1)
Other tax benefits
(4,500)
(0.8)
Tax on intercompany distributions
[1]
24,325
4.2
U.S., States, and local taxes
7,167
1.0
6,669
1.2
Others
(9,456)
(1.3)
(2,962)
(0.5)
Income tax expense
128,918
17.7
138,490
24.1
[1]
Includes $
16.5
million of out-of-period adjustment recorded during the first quarter of 2024.
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and their tax bases. Significant components of the Corporation’s deferred tax assets and liabilities at
September 30, 2025, and December 31, 2024, were as follows:
September 30, 2025
(In thousands)
PR
US
Total
Deferred tax assets:
Tax credits available for carryforward
4,861
38,382
43,243
Net operating loss and other carryforward available
60,370
584,546
644,916
Postretirement and pension benefits
28,228
28,228
Allowance for credit losses
249,065
28,482
277,547
Deferred loan origination fees/cost
4,533
(2,844)
1,689
Depreciation
7,700
7,742
15,442
FDIC-assisted transaction
152,665
152,665
Lease liability
28,040
18,572
46,612
Unrealized net loss on investment securities
179,530
14,083
193,613
Difference in outside basis from pass-through entities
53,182
53,182
Mortgage Servicing Rights
15,051
15,051
Other temporary differences
33,698
8,555
42,253
Total gross deferred tax assets
816,923
697,518
1,514,441
Deferred tax liabilities:
Intangibles
91,503
55,023
146,526
Right of use assets
25,509
16,666
42,175
Loans acquired
17,244
17,244
Other temporary differences
7,476
429
7,905
Total gross deferred tax liabilities
141,732
72,118
213,850
Valuation allowance
78,134
386,914
465,048
Net deferred tax asset
597,057
238,486
835,543
December 31, 2024
(In thousands)
PR
US
Total
Deferred tax assets:
Tax credits available for carryforward
4,861
24,728
29,589
Net operating loss and other carryforward available
52,211
610,279
662,490
Postretirement and pension benefits
27,786
27,786
Allowance for credit losses
247,153
24,415
271,568
Depreciation
7,700
7,229
14,929
FDIC-assisted transaction
152,665
152,665
Lease liability
25,167
16,451
41,618
Unrealized net loss on investment securities
252,411
20,996
273,407
Difference in outside basis from pass-through entities
50,144
50,144
Mortgage Servicing Rights
14,475
14,475
Other temporary differences
41,127
9,072
50,199
Total gross deferred tax assets
875,700
713,170
1,588,870
Deferred tax liabilities:
Intangibles
88,351
55,926
144,277
Right of use assets
22,784
14,454
37,238
Deferred loan origination fees/cost
(1,880)
2,085
205
Loans acquired
18,415
18,415
Other temporary differences
6,799
429
7,228
Total gross deferred tax liabilities
134,469
72,894
207,363
Valuation allowance
69,837
386,914
456,751
Net deferred tax asset
671,394
253,362
924,756
The net deferred tax assets shown in the table above at September 30, 2025, is reflected in the Consolidated Statements of
Financial Condition as $
837.3
million in net deferred tax assets in the “Other assets” caption (December 31, 2024 - $
926.3
million)
and $
1.8
million in deferred tax liabilities in the “Other liabilities” caption (December 31, 2024 - $
1.6
million), reflecting the aggregate
deferred tax assets or liabilities of individual tax-paying subsidiaries of the Corporation in their respective tax jurisdiction, Puerto
Rico or the United States.
At September 30, 2025, the net deferred tax assets of the U.S. operations amounted to $
625.4
million with a valuation allowance of
386.9
million, for net deferred tax assets after valuation allowance of $
238.5
million. The Corporation evaluates on a quarterly
basis the realization of the deferred tax asset by taxing jurisdiction. The U. S. operations sustained profitability for the last three
years. These historical financial results are objectively verifiable positive evidence, evaluated together with the positive evidence of
stable credit metrics. On the other hand, the Corporation evaluated the negative evidence accumulated over the years, including
financial results lower than expectations and challenges to the economy due to inflationary pressures that could stem from U. S.
tariff policies and global geopolitical challenges, in addition to the economic effect of cuts in federal government spending and the
length of the federal budget impasse that could negatively impact U. S. operations’ achieving expected pre-tax income levels in the
near future. As of September 30, 2025, after weighting all positive and negative evidence, the Corporation concluded that it is more
likely than not that $
238.5
million of the deferred tax assets from the U.S. operations, comprised mainly of net operating losses, will
be realized. The Corporation based this determination on its estimated earnings available to realize the deferred tax assets for the
remaining carryforward period, together with the historical level of book income adjusted by permanent differences. Management
will continue to monitor and review the U.S. operation’s results, including recent earnings trends, the pre-tax earnings forecast, any
new tax initiative, and other factors, including net income versus forecast, targeted loan growth, net interest income margin, changes
in deposit costs, allowance for credit losses, charge offs, non-performing loans held-in-portfolio (“NPLs”) inflows and non-performing
asset (“NPA”) balances. Significant changes in these factors or sustainable continuance of financial improvement could impact the
future realization of the deferred tax assets.
At September 30, 2025, the Corporation’s net deferred tax assets related to its Puerto Rico operations amounted to $
597.1
million.
The Corporation’s Puerto Rico Banking operation has a historical record of profitability. This is considered a strong piece of
objectively verifiable positive evidence that outweighs any negative evidence considered by Management in the evaluation of the
realization of the deferred tax assets. Based on this evidence and management’s estimate of future taxable income, the
Corporation has concluded that it is more likely than not that such net deferred tax assets of the Puerto Rico Banking operations will
be realized.
The Holding Company operation has been in a cumulative loss position in recent years. Management expects these losses will be a
trend in future years. This objectively verifiable negative evidence is considered by Management strong negative evidence that
suggests that income in future years will be insufficient to support the realization of all deferred tax assets. After weighting of all
positive and negative evidence Management concluded, as of the reporting date, that it is more likely than not that the Holding
Company will not be able to realize any portion of the deferred tax assets. Accordingly, the Corporation has maintained a valuation
allowance on the deferred tax assets of $
78.1
million as of September 30, 2025.
The reconciliation of unrecognized tax benefits, excluding interest, was as follows:
(In millions)
2025
2024
Balance at January 1
1.5
1.5
Balance at March 31
1.5
1.5
Balance at June 30
1.5
1.5
Balance at September 30
1.5
1.5
At September 30, 2025, the total amount of accrued interest recognized in the statement of financial condition amounted to $
2.5
million (December 31, 2024 - $
2.4
million). Management determined that at September 30, 2025 and December 31, 2024, there was
no
need to accrue for the payment of penalties. The Corporation’s policy is to report interest related to unrecognized tax benefits in
income tax expense, while the penalties, if any, are reported in other operating expenses in the Consolidated Statements of
Operations.
After consideration of the effect on U.S. federal tax of unrecognized U.S. state tax benefits, the total amount of unrecognized tax
benefits that if recognized, would affect the Corporation’s effective tax rate, was $
3.0
million at September 30, 2025 (December 31,
2024 - $
3.0
million).
The amount of unrecognized tax benefits may increase or decrease in the future for various reasons including adding amounts for
current tax year positions, expiration of open income tax returns due to the statutes of limitation, changes in Management’s
judgment about the level of uncertainty, status of examinations, litigation and legislative activity and the addition or elimination of
uncertain tax positions. The Corporation does not anticipate a reduction in the total amount of unrecognized tax benefits within the
next 12 months.
The Corporation and its subsidiaries file income tax returns in Puerto Rico, the U.S. federal jurisdiction, various U.S. states and
political subdivisions, and foreign jurisdictions. At September 30, 2025, the following years remain subject to examination in the U.S.
Federal jurisdiction: 2022 and thereafter; and in the Puerto Rico jurisdiction, 2018 and thereafter.
Note 27 – Supplemental disclosure on the consolidated statements of cash flows
Additional disclosures on cash flow information and non-cash activities for the nine months ended September 30, 2025 and
September 30, 2024 are listed in the following table:
(In thousands)
September 30, 2025
September 30, 2024
Non-cash activities:
Loans transferred to other real estate
20,915
34,756
Loans transferred to other property
66,838
61,447
Total loans transferred to foreclosed assets
87,753
96,203
Loans transferred to other assets
37,338
37,495
Financed sales of other real estate assets
5,234
8,551
Financed sales of other foreclosed assets
43,032
39,283
Total financed sales of foreclosed assets
48,266
47,834
Financed sale of premises and equipment
41,746
59,628
Transfers from loans held-in-portfolio to loans held-for-sale
5,739
7,505
Transfers from loans held-for-sale to loans held-in-portfolio
1,792
5,084
Loans securitized into investment securities
[1]
6,852
11,162
Trades receivable from brokers and counterparties
9,125
4,983
Trades payable to brokers and counterparties
306,775
3,540
Net change in receivables from investments maturities
13,861
176,000
Recognition of mortgage servicing rights on securitizations or asset transfers
675
998
Loans booked under the GNMA buy-back option
5,349
2,836
Capitalization of lease right of use asset
33,276
2,553
[1]
Includes loans securitized into trading securities and subsequently sold before quarter end.
The following table provides a reconciliation of cash and due from banks, and restricted cash reported within the Consolidated
Statement of Financial Condition that sum to the total of the same such amounts shown in the Consolidated Statement of Cash
Flows.
(In thousands)
September 30, 2025
September 30, 2024
Cash and due from banks
370,684
418,168
Restricted cash and due from banks
6,395
9,426
Restricted cash in money market investments
10,180
8,072
Total cash and due from banks, and restricted cash
[2]
387,259
435,666
[2]
Refer to Note 4 - Restrictions on cash and due from banks and certain securities for nature of restrictions.
Note 28 – Segment reporting
The Corporation’s corporate structure consists of
two
reportable segments –
Banco Popular de Puerto Rico and Popular U.S.
Management determined the reportable segments based on the internal reporting used to evaluate performance and to assess
where to allocate resources.
The segments were determined based on the organizational structure, which focuses primarily on the
markets the segments serve, as well as on the products and services offered by the segments.
The chief operating decision maker (“CODM”) of the Corporation is the Chief Executive Officer (“CEO”) who utilizes net income as
one of the segment profitability measures, to evaluate the performance of each reportable segment and assess where to allocate
resources effectively. The CEO receives profitability reports that include net income per segment, net interest income and other
income and expense categories. The CODM uses the segment’s net income and components of net income, including segment
revenues and expenses to assess performance and to manage important aspects by each reportable segments, such as human
capital, investment in technology, making budget allocations, as well as other strategic decisions.
Banco Popular de Puerto Rico:
The Banco Popular de Puerto Rico reportable segment includes commercial, consumer and retail banking operations, as well as
mortgage and auto lending operations conducted at BPPR, including U.S. based activities conducted through its New York Branch.
Other financial services within the BPPR segment include the trust service units of BPPR, asset management services of Popular
Asset Management and the brokerage operations of Popular Securities, and the insurance agency and reinsurance businesses of
Popular Insurance, Popular Risk Services, Popular Life Re, and Popular Re.
Popular U.S.:
Popular U.S. reportable segment consists of the banking operations of Popular Bank (PB), Popular Insurance Agency, U.S.A., and
PEF. PB operates through a retail branch network in the U.S. mainland under the name of Popular, and equipment leasing and
financing services through PEF. Popular Insurance Agency, U.S.A. offers investment and insurance services across the PB branch
network.
The Corporate group consists primarily of the holding companies Popular, Inc., Popular North America, Popular International Bank
and certain of the Corporation’s investments accounted for under the equity method, including BHD.
The accounting policies of the individual operating segments are the same as those of the Corporation. Transactions between
reportable segments are primarily conducted at market rates, resulting in profits that are eliminated for reporting consolidated results
of operations. Assets representing transactions between reportable segments or the Corporate group are also eliminated in the
tables presented below.
The tables that follow present the results of operations and total assets by reportable segments:
2025
For the quarter ended September 30, 2025
Intersegment
(In thousands)
BPPR
Popular U.S.
Eliminations
Interest income
765,204
201,327
(423)
Interest expense
214,489
96,124
(423)
Net interest income
550,715
105,203
Provision for credit losses
73,326
1,833
Non-interest income
150,619
6,888
Personnel costs
170,524
28,451
Professional fees
12,764
2,643
Technology and software expenses
67,146
9,977
Processing and transactional services
37,794
607
Amortization of intangibles
240
144
Goodwill impairment charge
13,000
Depreciation expense
10,759
2,439
Other operating expenses
[1]
113,649
26,463
Total operating expenses
412,876
83,724
Income before income tax
215,132
26,534
Income tax expense
26,104
8,732
Net income
189,028
17,802
Segment assets
59,771,004
14,940,858
(50,833)
For the quarter ended September 30, 2025
Reportable
(In thousands)
Segments
Corporate
Eliminations
Total Popular, Inc.
Interest income
966,108
1,373
(832)
966,649
Interest expense
310,190
10,786
(832)
320,144
Net interest income (expense)
655,918
(9,413)
646,505
Provision for credit losses (benefit)
75,159
(34)
75,125
Non-interest income
157,507
15,330
(1,642)
171,195
Personnel costs
198,975
34,013
232,988
Professional fees
15,407
10,682
(281)
25,808
Technology and software expenses
77,123
9,994
87,117
Processing and transactional services
38,401
7
38,408
Amortization of intangibles
384
384
Goodwill impairment charge
13,000
13,000
Depreciation expense
13,198
384
13,582
Other operating expenses
[1]
140,112
(54,815)
(1,297)
84,000
Total operating expenses
496,600
265
(1,578)
495,287
Income before income tax
241,666
5,686
(64)
247,288
Income tax expense
34,836
1,120
15
35,971
Net income
206,830
4,566
(79)
211,317
Segment assets
74,661,029
5,772,344
(5,367,575)
75,065,798
[1]
Other operating expenses includes net occupancy expenses, equipment expense, excluding depreciation, other operating taxes,
communications expense, business promotion expenses, deposit insurance costs and OREO expenses.
For the nine months ended September 30, 2025
Intersegment
(In thousands)
BPPR
Popular U.S.
Eliminations
Interest income
2,245,804
583,387
(3,145)
Interest expense
634,722
283,048
(3,145)
Net interest income
1,611,082
300,339
Provision for credit losses
169,290
18,975
Non-interest income
433,809
20,452
Personnel costs
486,602
81,280
Professional fees
38,848
7,832
Technology and software expenses
195,523
30,410
Processing and transactional services
112,249
1,786
Amortization of intangibles
822
544
Goodwill impairment charge
13,000
Depreciation expense
30,797
6,902
Other operating expenses
[1]
374,407
80,103
Total operating expenses
1,239,248
221,857
Income before income tax
636,353
79,959
Income tax expense
96,803
24,734
Net income
539,550
55,225
Segment assets
59,771,004
14,940,858
(50,833)
For the nine months ended September 30, 2025
Reportable
Total
(In thousands)
Segments
Corporate
Eliminations
Popular, Inc.
Interest income
2,826,046
4,487
(3,014)
2,827,519
Interest expense
914,625
32,257
(3,014)
943,868
Net interest income (expense)
1,911,421
(27,770)
1,883,651
Provision for credit losses (benefit)
188,265
(118)
188,147
Non-interest income
454,261
40,466
(2,994)
491,733
Personnel costs
567,882
107,174
675,056
Professional fees
46,680
34,926
(865)
80,741
Technology and software expenses
225,933
29,548
255,481
Processing and transactional services
114,035
15
114,050
Amortization of intangibles
1,366
1,366
Goodwill impairment charge
13,000
13,000
Depreciation expense
37,699
1,202
38,901
Other operating expenses
[1]
454,510
(171,398)
(2,647)
280,465
Total operating expenses
1,461,105
1,467
(3,512)
1,459,060
Income before income tax
716,312
11,347
518
728,177
Income tax expense
121,537
7,072
309
128,918
Net income
594,775
4,275
209
599,259
Segment assets
74,661,029
5,772,344
(5,367,575)
75,065,798
[1]
Other operating expenses includes net occupancy expenses, equipment expense, excluding depreciation, other operating taxes,
communications expense, business promotion expenses, deposit insurance costs and OREO expenses.
2024
For the quarter ended September 30, 2024
Intersegment
(In thousands)
BPPR
Popular U.S.
Eliminations
Interest income
743,936
195,102
(2,345)
Interest expense
255,928
101,974
(2,345)
Net interest income
488,008
93,128
Provision for credit losses (benefit)
77,514
(6,066)
Non-interest income
149,050
6,789
Personnel costs
149,563
26,372
Professional fees
14,490
2,821
Technology and software expenses
67,778
9,959
Processing and transactional services
33,775
542
Amortization of intangibles
394
310
Depreciation expense
13,023
2,063
Other operating expenses
[1]
124,621
22,662
Total operating expenses
403,644
64,729
Income before income tax
155,900
41,254
Income tax expense
30,064
12,472
Net income
125,836
28,782
Segment assets
56,906,693
14,306,045
(260,464)
For the quarter ended September 30, 2024
Reportable
(In thousands)
Segments
Corporate
Eliminations
Total Popular, Inc.
Interest income
936,693
2,098
(1,343)
937,448
Interest expense
355,557
10,761
(1,343)
364,975
Net interest income (expense)
581,136
(8,663)
572,473
Provision for credit losses (benefit)
71,448
71,448
Non-interest income
155,839
8,876
(633)
164,082
Personnel costs
175,935
25,921
201,856
Professional fees
17,311
9,584
(187)
26,708
Technology and software expenses
77,737
10,715
88,452
Processing and transactional services
34,317
3
34,320
Amortization of intangibles
704
704
Depreciation expense
15,086
385
15,471
Other operating expenses
[1]
147,283
(46,614)
(859)
99,810
Total operating expenses
468,373
(6)
(1,046)
467,321
Income before income tax
197,154
219
413
197,786
Income tax expense (benefit)
42,536
(279)
206
42,463
Net income
154,618
498
207
155,323
Segment assets
70,952,274
5,887,340
(5,516,540)
71,323,074
[1]
Other operating expenses includes net occupancy expenses, equipment expense, excluding depreciation, other operating taxes,
communications expense, business promotion expenses, deposit insurance costs and OREO expenses.
For the nine months ended September 30, 2024
Intersegment
(In thousands)
BPPR
Popular U.S.
Eliminations
Interest income
2,195,266
564,580
(8,254)
Interest expense
745,672
300,748
(8,254)
Net interest income
1,449,594
263,832
Provision for credit losses
188,576
1,806
Non-interest income
447,073
19,909
(56)
Personnel costs
448,253
79,578
Professional fees
41,426
9,454
(56)
Technology and software expenses
191,218
28,643
Processing and transactional services
105,866
1,730
Amortization of intangibles
1,302
931
Depreciation expense
39,349
6,210
Other operating expenses
[1]
383,500
77,902
Total operating expenses
1,210,914
204,448
(56)
Income before income tax
497,177
77,487
Income tax expense
92,810
23,917
Net income
404,367
53,570
Segment assets
56,906,693
14,306,045
(260,464)
For the nine months ended September 30, 2024
Reportable
Total
(In thousands)
Segments
Corporate
Eliminations
Popular, Inc.
Interest income
2,751,592
10,287
(8,383)
2,753,496
Interest expense
1,038,166
32,184
(8,383)
1,061,967
Net interest income (expense)
1,713,426
(21,897)
1,691,529
Provision for credit losses (benefit)
190,382
458
190,840
Non-interest income
466,926
31,314
(4,034)
494,206
Personnel costs
527,831
86,826
614,657
Professional fees
50,824
43,312
(766)
93,370
Technology and software expenses
219,861
27,805
247,666
Processing and transactional services
107,596
14
107,610
Amortization of intangibles
2,233
2,233
Depreciation expense
45,559
1,161
46,720
Other operating expenses
[1]
461,402
(150,953)
(2,695)
307,754
Total operating expenses
1,415,306
8,165
(3,461)
1,420,010
Income before income tax
574,664
794
(573)
574,885
Income tax expense (benefit)
116,727
21,921
(158)
138,490
Net income
457,937
(21,127)
(415)
436,395
Segment assets
70,952,274
5,887,340
(5,516,540)
71,323,074
[1]
Other operating expenses includes net occupancy expenses, equipment expense, excluding depreciation, other operating taxes,
communications expense, business promotion expenses, deposit insurance costs and OREO expenses.
Geographic Information
The following information presents selected financial information based on the geographic location where the Corporation conducts
its business. The banking operations of BPPR are primarily based in Puerto Rico, where it has the largest retail banking franchise.
BPPR also conducts banking operations in the U.S. Virgin Islands, the British Virgin Islands and New York. BPPR’s banking
operations in the mainland United States include commercial lending activities in addition to periodic loan participations with PB.
During the nine months ended September 30, 2025, BPPR participated in loans originated by PB totaling $
29
million (2024 - did
no
t
participate). Total assets for the BPPR segment related to its operations in the United States amounted to $
1.4
billion (December
31, 2024 - $
1.6
billion), including $
103
million in multifamily loans (December 31, 2024 - $
104
million), $
421
million in commercial
real estate loans (December 31, 2024 - $
588
million), $
707
million in C&I loans (December 31, 2024 - $
685
million), and $
54
million
in unsecured personal loans (December 31, 2024 - $
113
million). During the nine months ended September 30, 2025, the BPPR
segment generated $
75.6
million (September 30, 2024 - $
91.2
million) in revenues from its operations in the United States, mainly
from net interest income. In the Virgin Islands, the BPPR segment offers banking products, including loans and deposits. Total
assets for the BPPR segment related to its operations in the U.S. and British Virgin Islands amounted to $
1.1
billion (December 31,
2024 - $
1.0
billion). The BPPR segment generated $
38.7
million in revenues during the nine months ended September 30, 2025
(September 30, 2024 - $
32.3
million) from its operations in the U.S. and British Virgin Islands.
Geographic Information
Quarter ended
Nine months ended
(In thousands)
September 30, 2025
September 30, 2024
September 30, 2025
September 30, 2024
Revenues:
[1]
Puerto Rico
654,274
582,953
1,900,467
1,735,035
United States
135,852
133,067
402,342
386,819
Other
27,574
20,535
72,575
63,881
Total consolidated revenues
817,700
736,555
2,375,384
2,185,735
[1]
Total revenues include net interest income, service charges on deposit accounts, other service fees, mortgage banking activities, net gain (loss),
including impairment, on equity securities, net gain on trading account debt securities, adjustments to indemnity reserves on loans sold, and
other operating income.
Selected Balance Sheet Information:
(In thousands)
September 30, 2025
December 31, 2024
Puerto Rico
Total assets
57,492,551
55,888,211
Loans
25,362,400
24,154,610
Deposits
52,929,118
52,099,309
United States
Total assets
16,279,331
15,890,339
Loans
12,815,827
12,431,859
Deposits
11,861,212
11,030,879
Other
Total assets
1,293,916
1,266,833
Loans
516,714
526,606
Deposits
[1]
1,723,074
1,754,157
[1]
Represents deposits from BPPR operations located in the U.S. and British Virgin Islands.
Figures reported in this filing
Standardized line items from the XBRL in this filing, for the period ended 2025-09-30. Comparative periods it repeats are left out.
| Line item | Period | Value | XBRL concept |
|---|---|---|---|
| Interest expense | 3 months2025-07-01 to 2025-09-30 | $320.1m | us-gaap:InterestExpense |
| Interest expense | 9 months2025-01-01 to 2025-09-30 | $943.9m | us-gaap:InterestExpense |
| Income tax | 3 months2025-07-01 to 2025-09-30 | $36.0m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months2025-01-01 to 2025-09-30 | $128.9m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months2025-07-01 to 2025-09-30 | $211.3m | us-gaap:NetIncomeLoss |
| Net income | 9 months2025-01-01 to 2025-09-30 | $599.3m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months2025-07-01 to 2025-09-30 | $3.14 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months2025-01-01 to 2025-09-30 | $8.78 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months2025-07-01 to 2025-09-30 | $3.15 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months2025-01-01 to 2025-09-30 | $8.78 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months2025-07-01 to 2025-09-30 | 67,093,814 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months2025-01-01 to 2025-09-30 | 68,143,686 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 9 months2025-01-01 to 2025-09-30 | $610.0m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months2025-01-01 to 2025-09-30 | $150.1m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 9 months2025-01-01 to 2025-09-30 | $146.8m | us-gaap:PaymentsOfDividends |
| Share repurchases | 3 months2025-07-01 to 2025-09-30 | −$119.7m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Share repurchases | 9 months2025-01-01 to 2025-09-30 | −$362.8m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Total assets | At period end2025-09-30 | $75.07bn | us-gaap:Assets |
| Total liabilities | At period end2025-09-30 | $68.95bn | us-gaap:Liabilities |
| Shareholders' equity | At period end2025-09-30 | $6.12bn | us-gaap:StockholdersEquity |
Source: SEC EDGAR, the filing index for accession 0001193125-25-274035. Last ingested by Listed: Nov 9, 2026, 17:41 ET. Listed shows no prices and gives no investment advice.