Popular, Inc. Posts Strong Q3 Earnings, Net Income Up 36%

TL;DR

**BPOPM is crushing it, net income soaring 36% – time to buy the dip if you haven't already!**

AI Summary

POPULAR, INC. (BPOPM) reported a significant increase in net income for the quarter ended September 30, 2025, reaching $211.3 million, up from $155.3 million in the same period of 2024, representing a 36.1% increase. For the nine months ended September 30, 2025, net income rose to $599.3 million from $436.4 million in 2024, a 37.3% increase. Total assets grew to $75.1 billion as of September 30, 2025, from $73.0 billion at December 31, 2024. Net interest income for the quarter increased to $646.5 million from $572.5 million year-over-year, while non-interest income also saw a rise to $171.2 million from $164.1 million. Operating expenses increased to $495.3 million from $467.3 million, partly due to a $13.0 million goodwill impairment charge in 2025. The company's loan portfolio grew to $39.1 billion from $37.5 billion, and total deposits increased to $66.5 billion from $64.9 billion. The allowance for credit losses on loans held-in-portfolio increased to $786.2 million from $746.0 million.

Why It Matters

Popular, Inc.'s robust earnings growth, with net income up 36.1% year-over-year for Q3 2025, signals strong operational performance and potentially higher shareholder returns. The increase in net interest income by $74.0 million and loan portfolio growth of $1.6 billion indicates effective asset management and lending strategies in a competitive banking landscape. For investors, this performance suggests a resilient business model, especially given the $119.4 million in common stock repurchases, which can boost EPS. Employees and customers benefit from a stable and growing financial institution, while the broader market sees a key regional player demonstrating strength amidst economic uncertainties, particularly in Puerto Rico.

Risk Assessment

Risk Level: medium — While net income is up, the company recorded a $13.0 million goodwill impairment charge in Q3 2025, indicating potential issues with prior acquisitions or business units. Additionally, the allowance for credit losses on loans held-in-portfolio increased by $40.2 million to $786.2 million, suggesting management anticipates higher loan defaults, which could impact future profitability.

Analyst Insight

Investors should consider BPOPM's strong net income growth and active share repurchase program as positive indicators. However, monitor the goodwill impairment and rising allowance for credit losses closely, as these could signal underlying asset quality concerns that may affect long-term performance.

Key Numbers

• $211.3M — Net Income for Q3 2025 (Increased 36.1% from $155.3 million in Q3 2024)
• $599.3M — Net Income for Nine Months Ended Sep 30, 2025 (Increased 37.3% from $436.4 million in the same period of 2024)
• $75.1B — Total Assets as of Sep 30, 2025 (Increased from $73.0 billion at Dec 31, 2024)
• $646.5M — Net Interest Income for Q3 2025 (Increased from $572.5 million in Q3 2024)
• $39.1B — Loans held-in-portfolio as of Sep 30, 2025 (Increased from $37.5 billion at Dec 31, 2024)
• $66.5B — Total Deposits as of Sep 30, 2025 (Increased from $64.9 billion at Dec 31, 2024)
• $786.2M — Allowance for credit losses on loans held-in-portfolio as of Sep 30, 2025 (Increased from $746.0 million at Dec 31, 2024)
• $13.0M — Goodwill Impairment Charge for Q3 2025 (New charge in 2025, none in 2024)
• 66,674,855 — Common Stock Shares Outstanding as of Nov 5, 2025 (Reflects recent share repurchases)
• $119.4M — Common Stock Repurchases for Q3 2025 (Part of 2024 and 2025 repurchase programs)

Key Players & Entities

• POPULAR, INC. (company) — Registrant
• NASDAQ Stock Market (regulator) — Exchange for BPOP and BPOPM
• Puerto Rico (person) — State of incorporation and primary business concentration
• Evertec, Inc. (company) — Provider of core financial transaction processing and IT services
• Silicon Valley Bank (company) — Bank failure cited in FDIC assessment risk
• Signature Bank (company) — Bank failure cited in FDIC assessment risk
• FDIC (regulator) — Federal Deposit Insurance Corporation

FAQ

Key Financial Figures

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

Filing Documents

• d873220d10q.htm (10-Q) — 16511KB
• d873220dex311.htm (EX-31.1) — 21KB
• d873220dex312.htm (EX-31.2) — 20KB
• d873220dex321.htm (EX-32.1) — 7KB
• d873220dex322.htm (EX-32.2) — 7KB
• g873220d873220dex311p1i0.jpg (GRAPHIC) — 2KB
• g873220d873220dex312p1i0.jpg (GRAPHIC) — 2KB
• g873220d873220dex321p1i0.jpg (GRAPHIC) — 2KB
• g873220d873220dex322p1i0.jpg (GRAPHIC) — 2KB
• 0001193125-25-274035.txt ( ) — 78349KB
• bpop-20250930.xsd (EX-101.SCH) — 365KB
• bpop-20250930_cal.xml (EX-101.CAL) — 265KB
• bpop-20250930_def.xml (EX-101.DEF) — 2030KB
• bpop-20250930_lab.xml (EX-101.LAB) — 3508KB
• bpop-20250930_pre.xml (EX-101.PRE) — 2617KB
• d873220d10q_htm.xml (XML) — 25391KB

– Financial Information

Part I – Financial Information Page

Financial Statements

Item 1. Financial Statements Unaudited Consolidated Statements of Financial Condition at September 30, 2025 and December 31, 2024 5 Unaudited Consolidated Statements of Operations for the quarters and nine months ended September 30, 2025 and 2024 6 Unaudited Consolidated Statements of Comprehensive Income for the quarters and nine months ended September 30, 2025 and 2024 7 Unaudited Consolidated Statements of Changes in Stockholders' Equity for the quarters and nine months ended September 30, 2025 and 2024 8 Unaudited Consolidated Statements of Cash Flows for the nine months ended September 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 125

Quantitative and Qualitative Disclosures about

Item 3. Quantitative and Qualitative Disclosures about Market Risk 170

Controls and Procedures

Item 4. Controls and Procedures 170

– Other Information

Part II – Other Information

Legal Proceedings

Item 1. Legal Proceedings 170

Risk Factors

Item 1A. Risk Factors 170

Unregistered Sales of Equity Securities and

Item 2. Unregistered Sales of Equity Securities and

Use of Proceeds

Use of Proceeds 171

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 171

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 171

Other Information

Item 5. Other Information 171

Exhibits

Item 6. Exhibits 171

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] 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-portfol

Financial Statements

Financial Statements. 10 POPULAR, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) 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 prov

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 - 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 118

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