Popular, Inc. (BPOP) SEC Filings & Earnings Calls

Deposit cost pressure: Total deposit costs increased 7 bps QoQ to 1.64%, driven by higher public deposit rates and balances.

“Total deposit costs 1.64% vs 1.57% prior quarter; average public deposits increased $1.1B.”

Credit quality: NCO ratio increased to 0.73% from 0.60% YoY; NPL ratio improved but NPLs increased QoQ; guidance for NCOs raised to 80-90 bps.

“NCO ratio 0.73% vs 0.60% YoY; NPLs $466M vs $413M QoQ; FY2026 NCO guidance raised to 80-90 bps from 55-70 bps.”

Loan growth slowing: FY2026 loan growth guidance reduced to 2% from 3-4%, driven by decline in auto and lease financing.

“Loan growth guidance 2% for FY2026, down from original 3-4%.”

Operating expense increase: Operating expenses up $21.5M QoQ (4.4%), partially offsetting revenue growth.

“Operating expenses $505.6M vs $484.1M QoQ; FY2026 expense guidance +2%.”

Leadership transition risk as new CEO and CFO take over, but no immediate negative impact indicated.

“Appointments effective September 1, 2026; compensation details provided.”

No significant risk; dividend declaration is routine.

Large loan charge-off

“In June 2026, the Corporation reclassified a $155.0 million loan held-in-portfolio to loan held-for-sale given its intent to sell; this resulted in a $71.3 million charge-off during Q2 2026.” · word for word

Rising provision for credit losses

“Provision for credit losses (benefit) 65,908 ( 35 ) - 65,873 ... For the quarter ended June 30, 2025 ... Provision for credit losses (benefit) 48,984 ( 43 ) - 48,941” · word for word

Holding company cumulative loss position

“The Holding Company operation has been in a cumulative loss position. Management expects these losses will be a trend in future years.” · word for word

Below investment grade debt rating

“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'.” · word for word

NCO ratio increased to 1.05% from 0.61% Q1, but excluding a $71M charge-off it was 0.33%; credit quality remains manageable.

“NCO Ratio 1.05% vs. 0.61% in Q1; excluding the $71 million charge-off ... NCO Ratio of 0.33%”

Leadership transition risk; new CEO and CFO have internal experience, but changes may cause short-term uncertainty.

“CEO retirement and multiple executive changes; consulting agreement for transition”

No material risks identified in this filing; capital actions are positive.

Customer data breach via third-party processor; potential reputational and regulatory risk

“Affected data includes personal information of certain BPPR customers, including debit card numbers” · word for word

Credit loss cycle

“Provision for credit losses increased YoY from $64.1M to $75.9M, +18.4%.”

Regulatory compliance cost

“Dividend from BPPR limited to $13M without prior approval; PB may not pay dividend without prior approval.”

Net interest margin pressure

“Net interest income increased YoY but interest expense also increased; margin dynamics not explicitly quantified.”

Non-interest income slightly declined, indicating potential fee income headwinds

“Non-interest income of $165.6 million in Q1 2026, a decrease of $0.7 million when compared to $166.3 million in Q4 2025.” · word for word

Puerto Rico Public Deposit Outflow

“The increases were partially offset by a reduction in public sector deposits in Puerto Rico as a result of outflows of deposits during the year to fulfill scheduled obligations and operational needs of the government of Puerto Rico.” · word for word

Commercial Loan Concentration Risk

“In 2025, the non-performing loan ratio was 1.27% compared with 0.95% in 2024, driven, in part, by two unrelated commercial loans in BPPR with a combined value of $188 million.” · word for word

Related Party Loan Exposure

“The largest outstanding balance of the loans during 2025 was approximately $27.7 million... The aggregate outstanding balance on the loans as of December 31, 2025, was approximately $27.0 million.” · word for word

Puerto Rico Economic Concentration

“Since our business activities are currently concentrated primarily in Puerto Rico, our 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.” · word for word

Regulatory Compliance Costs

“Any change in the laws and regulations applicable to Popular and its subsidiaries could have a material effect on the business of Popular and its subsidiaries.” · word for word

Competitive Pressure

“Increased competition could require that we increase the rates offered on deposits and lower the rates charged on loans, which could adversely affect our profitability.” · word for word

Deposits decreased $323.3M QoQ, driven by a $662.3M decline in P.R. public deposits, indicating potential public sector deposit volatility.

“Deposits at $66.2 billion, decreased by $323.3 million from Q3 2025. This includes a decrease of $662.3 million in P.R. public deposits.” · word for word

Credit quality remains stable but NCOs were $49.6M, including $5.3M recoveries; ACL to loans at 2.05%.

“Net charge-offs decreased by $8.2 million from Q3 2025 to $49.6 million; ACL to loans held-in-portfolio at 2.05%.”

Holding company deferred tax asset valuation allowance

“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. ... the Corporation has maintained a valuation allowance on the deferred tax assets of $78.1 million as of September 30, 2025.” · word for word

Below investment grade credit rating

“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'.” · word for word