Popular, Inc. 10-Q Filing

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock ($0.01 par value) BPOP The NASDAQ Stock Mar

Filing Documents

• d82325d10q.htm (10-Q) — 17018KB
• d82325dex101.htm (EX-10.1) — 298KB
• d82325dex102.htm (EX-10.2) — 92KB
• d82325dex103.htm (EX-10.3) — 88KB
• d82325dex311.htm (EX-31.1) — 21KB
• d82325dex312.htm (EX-31.2) — 20KB
• d82325dex321.htm (EX-32.1) — 7KB
• d82325dex322.htm (EX-32.2) — 6KB
• g82325d82325dex101p3i0.jpg (GRAPHIC) — 8KB
• g82325d82325dex102p1i0.jpg (GRAPHIC) — 6KB
• g82325d82325dex103p1i0.jpg (GRAPHIC) — 6KB
• g82325d82325dex311p1i0.jpg (GRAPHIC) — 2KB
• g82325d82325dex312p1i0.jpg (GRAPHIC) — 2KB
• g82325d82325dex321p1i0.jpg (GRAPHIC) — 2KB
• g82325d936763dex322p1i0.jpg (GRAPHIC) — 2KB
• 0001193125-25-177928.txt ( ) — 81290KB
• bpop-20250630.xsd (EX-101.SCH) — 364KB
• bpop-20250630_cal.xml (EX-101.CAL) — 266KB
• bpop-20250630_def.xml (EX-101.DEF) — 2028KB
• bpop-20250630_lab.xml (EX-101.LAB) — 3502KB
• bpop-20250630_pre.xml (EX-101.PRE) — 2617KB
• d82325d10q_htm.xml (XML) — 26226KB

– Financial Information

Part I – Financial Information Page

Financial Statements

Item 1. Financial Statements Unaudited Consolidated Statements of Financial Condition at June 30, 2025 and December 31, 2024 5 Unaudited Consolidated Statements of Operations for the quarters and six months ended June 30, 2025 and 2024 6 Unaudited Consolidated Statements of Comprehensive Income for the quarters and six months ended June 30, 2025 and 2024 7 Unaudited Consolidated Statements of Changes in Stockholders' Equity for the quarters and six months ended June 30, 2025 and 2024 8 Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024 10 Notes to Unaudited Consolidated Financial Statements 12

Management's Discussion and Analysis of Financial

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 133

Quantitative and Qualitative Disclosures about

Item 3. Quantitative and Qualitative Disclosures about Market Risk 178

Controls and Procedures

Item 4. Controls and Procedures 178

– Other Information

Part II – Other Information

Legal Proceedings

Item 1. Legal Proceedings 178

Risk Factors

Item 1A. Risk Factors 178

Unregistered Sales of Equity Securities and

Item 2. Unregistered Sales of Equity Securities and

Use of Proceeds

Use of Proceeds 179

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 179

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 179

Other Information

Item 5. Other Information 179

Exhibits

Item 6. Exhibits 179

Forward-Looking Statements

Forward-Looking Statements This Form 10-Q contains "forward-looking the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including, without limitation, about Popular, Inc.'s (the "Corporation," "Popular," "we," "us," "our") business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management's current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation's control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include without limitation the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes (including on our cost of deposits), capital markets conditions, capital adequacy and liquidity, and the effect of legal and regulatory proceedings and new accounting standards on the Corporation's financial condition and results of operations. All statements contained herein that are not clearly historical in nature are forward- looking, and the words "anticipate," "believe," "continues," "expect," "estimate," "intend," "project" and similar expressions and future or conditional verbs such as "will," "would," "should," "could," "might," "can," "may" or similar expressions are generally intended to identify forward-looking statements. Various factors, some of which are beyond Popular's control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Factors that might cause such a difference include, but a

business

business and economic conditions in the geographic areas we serve and, in particular, in the Commonwealth of Puerto Rico (the "Commonwealth" or "Puerto Rico"), where a significant portion of our business is concentrated; adverse economic conditions, including high levels of inflation, that adversely affect housing prices, the job market, consumer confidence and spending habits which may affect in turn, among other things, our level of non-performing assets, charge-offs and provision expense; changes in interest rates and market liquidity, which may reduce interest margins, impact funding sources, reduce loan originations, affect our ability to originate and distribute financial products in the primary and secondary markets and impact the value of our investment portfolio and our ability to return capital to our stockholders; the impact of bank failures or adverse developments at other banks and related negative media coverage of the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks; the impact of the current fiscal and economic challenges of Puerto Rico and the measures taken and to be taken by the Puerto Rico Government and the Federally-appointed oversight board on the economy, our customers and our business; the amount of Puerto Rico public sector deposits held at the Corporation, whose future balances are uncertain and difficult to predict and may be impacted by factors such as the amount of Federal funds received by the P.R. Government and the rate of expenditure of such funds, as well as the financial condition, liquidity and cash management practices of the Puerto Rico Government and its instrumentalities; unforeseen or catastrophic events, including extreme weather events such as hurricanes and other natural disasters, man-made disasters, act

" of our Quarterly

Item 1A" of our Quarterly Report on this Form 10-Q for a discussion of such factors and certain risks and uncertainties to which the Corporation is subject. All forward-looking 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. 5 POPULAR, INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) [UNAUDITED] June 30, December 31, (In thousands, except share information) 2025 2024 Assets: Cash and due from banks $ 400,631 $ 419,638 Money market investments: Time deposits with other banks 6,340,786 6,380,948 Total money market investments 6,340,786 6,380,948 Trading account debt securities, at fair value 29,643 32,831 Debt securities available-for-sale, at fair value: Pledged securities with creditors' right to repledge 31,022 30,486 Other debt securities available-for-sale 20,459,190 18,215,417 Debt securities available-for-sale 20,490,212 18,245,903 Debt securities held-to-maturity, at amortized cost: Pledged securities with creditors' right to repledge 27,560 27,405 Other debt securities held-to-maturity 7,514,164 7,730,672 Debt securities held-to-maturity (fair value 2025 - $ 7,555,517 ; 2024 - $ 7,682,664 ) 7,541,724 7,758,077 Less – Allowance for credit losses 5,999 5,317 Debt securities held-to-maturity, net 7,535,725 7,752,760 Equity securities (realizable value 2025 - $ 222,907 ; 2024 - $ 208,663 ) 222,391 208,166 Loans held-for-sale, at fair value 2,898 5,423 Loans held-in-portfolio 38,611,834 37,522,995 Less – Unearned income 426,656 415,343 Allowance for credit losses 769,485 746,024 Total loans held-in-portfolio, n

Financial Statements

Financial Statements. 10 POPULAR, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six months ended June 30, (In thousands) 2025 2024 Cash flows from operating activities: Net income $ 387,942 $ 281,072 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 113,022 119,392 Amortization of intangibles 982 1,529 Depreciation and amortization of premises and equipment 25,319 31,249 Net accretion of discounts and amortization of premiums and deferred fees ( 136,208 ) ( 127,770 ) Interest capitalized on loans subject to the temporary payment moratorium or loss mitigation alternatives ( 2,822 ) ( 4,047 ) Share-based compensation 21,930 16,391 Fair value adjustments on mortgage servicing rights 5,523 5,384 Adjustments to indemnity reserves on loans sold ( 293 ) 25 Earnings from investments under the equity method, net of dividends or distributions 152 ( 2,871 ) Deferred income tax expense 20,832 19,702 Gain on: Disposition of premises and equipment and other productive assets ( 91 ) ( 6,295 ) Sale of loans, including valuation adjustments on loans held-for-sale and mortgage banking activities ( 156 ) ( 76 ) Sale of equity method investment ( 1,226 ) - Sale of foreclosed assets, including write-downs ( 5,076 ) ( 10,575 ) Acquisitions of loans held-for-sale ( 2,332 ) ( 1,767 ) Proceeds from sale of loans held-for-sale 15,584 19,358 Net originations on loans held-for-sale ( 12,137 ) ( 22,580 ) Net decrease (increase) in: Trading debt securities 10,040 6,735 Equity securities ( 1,411 ) ( 4,445 ) Accrued income receivable ( 11,419 ) ( 17,340 ) Other assets ( 19,371 ) ( 8,463 ) Net increase (decrease) in: Interest payable 2,584 3,145 Pension and other postretirement benefits obligation 2,191 3,732 Other liabilities 1,434 ( 59,481 ) Total adjustments 27,051 ( 39,068 ) Net cash provided by operating activities 414,993 242,004 Cash flows f

Financial Statements

Financial Statements. 12 Notes to Consolidated Financial (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 - Mortgage banking activities 78 Note 10 - Transfers of financial assets and mortgage servicing assets 79 Note 11 - Other real estate owned 83 Note 12 - Other assets 84 Note 13 - Goodwill and other intangible assets 86 Note 14 - Deposits 88 Note 15 - Borrowings 89 Note 16 - Other liabilities 91 Note 17 - Stockholders' equity 92 Note 18 - Other comprehensive income 93 Note 19 - Guarantees 95 Note 20 - Commitments and contingencies 97 Note 21- Non-consolidated variable interest entities 100 Note 22 - Related party transactions 102 Note 23 - Fair value measurement 103 Note 24 - Fair value of financial instruments 111 Note 25 - Net income per common share 114 Note 26 - Revenue from contracts with customers 115 Note 27 - Leases 116 Note 28 - Pension and postretirement benefits 118 Note 29 - Stock-based compensation 119 Note 30 - Income taxes 122 Note 31 - Supplemental disclosure on the consolidated 126 Note 32 - Segment reporting 127 13 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 and U.S. and British Virgin Islands. In Puerto Rico, the Corporation provides retail, mortgage and commercial ban

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