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1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
10-Q
[X]
 
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended
 
March 31, 2025
or
[ ]
 
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission File Number:
 
001-34084
POPULAR, INC.
(Exact name of registrant as specified in its charter)
Puerto Rico
66-0667416
(State or other jurisdiction of Incorporation or
(IRS Employer Identification Number)
organization)
Popular Center Building
209 Muñoz Rivera Avenue
Hato Rey
,
Puerto Rico
00918
(Address of principal executive offices)
(Zip code)
(
787
)
765-9800
(Registrant’s telephone number, including area code)
NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which
registered
Common Stock ($0.01 par value)
BPOP
The
NASDAQ Stock Market
6.125% Cumulative Monthly Income Trust
Preferred Securities
BPOPM
The
NASDAQ Stock Market
Indicate by check mark whether the registrant (1) has filed all reports required to
 
be filed by Section 13 or 15(d) of the
Securities Exchange
 
Act of
 
1934 during
 
the preceding
 
12 months
 
(or for
 
such shorter
 
period that
 
the registrant
 
was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
[X]
 
Yes
[
 
]
 
No
Indicate by
 
check mark
 
whether the registrant
 
has submitted
 
electronically every
 
Interactive Data
 
File required to
 
be
submitted pursuant to
 
Rule 405 of
 
Regulation S-T (§
 
232.405 of this
 
chapter) during the
 
preceding 12 months
 
(or for
such shorter period that the registrant was required to submit such files).
[X]
 
Yes
[
 
]
 
No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer,
smaller reporting company, or an emerging growth company.
 
See definitions of “large accelerated filer”, “accelerated
filer,” “smaller reporting company,”
 
and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large accelerated filer
 
[X]
Accelerated filer [
 
]
Non-accelerated filer [
 
]
Smaller reporting company
[ ]
Emerging growth company
[ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial accounting standards provided pursuant to Section
13(a) of the Exchange Act.
 
[
 
]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
[
 
]
 
Yes
[X]
 
No
Indicate
 
the
 
number
 
of
 
shares
 
outstanding
 
of
 
each
 
of
 
the
 
issuer’s
 
classes
 
of
 
common
 
stock,
 
as
 
of
 
the
 
latest
practicable date:
 
Common Stock, $0.01 par value,
68,510,774
 
shares outstanding as of May 7, 2025.
 
 
 
2
POPULAR, INC.
INDEX
Part I – Financial Information
Page
Item 1. Financial Statements
Unaudited Consolidated Statements of Financial Condition at March 31, 2025 and
December 31, 2024
5
Unaudited Consolidated Statements of Operations for the quarters
 
ended March 31, 2025 and 2024
6
Unaudited Consolidated Statements of Comprehensive Income for the
quarters
 
ended March 31, 2025 and 2024
7
Unaudited Consolidated Statements of Changes in Stockholders’ Equity for the
quarters ended March 31, 2025 and 2024
8
Unaudited Consolidated Statements of Cash Flows for the quarters
ended March 31, 2025 and 2024
10
Notes to Unaudited Consolidated Financial Statements
12
Item 2. Management’s Discussion and Analysis of Financial Condition and
 
 
Results of Operations
116
Item 3. Quantitative and Qualitative Disclosures about Market Risk
 
157
Item 4. Controls and Procedures
157
Part II – Other Information
Item 1. Legal Proceedings
158
Item 1A. Risk Factors
158
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
 
158
 
Item 3. Defaults Upon Senior Securities
159
Item 4. Mine Safety Disclosures
159
Item 5. Other information
 
159
Item 6. Exhibits
161
Signatures
 
162
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3
Forward-Looking Statements
This
 
Form
 
10-Q
 
contains
 
“forward-looking
 
statements”
 
within
 
the
 
meaning
 
of
 
the
 
U.S.
 
Private
 
Securities
 
Litigation
 
Reform
 
Act
 
of
1995,
 
including,
 
without
 
limitation,
 
statements
 
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 are not limited to:
 
 
the
 
rate
 
of
 
growth
 
or
 
decline
 
in
 
the
 
economy
 
and
 
employment
 
levels,
 
as
 
well
 
as
 
general
 
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 shareholders;
 
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, acts of violence or war or pandemics, epidemics and other health-related crises, or the
 
fear of any
such event
 
occurring, any
 
of which
 
could cause
 
adverse consequences
 
for our
 
business, including,
 
but not
 
limited to,
disruptions in our operations;
 
our ability
 
to achieve
 
the expected
 
benefits from
 
our transformation
 
initiative, including
 
our ability
 
to achieve
 
projected
earnings, efficiencies
 
and return
 
on tangible
 
common equity
 
and accurately
 
anticipate costs
 
and expenses
 
associated
therewith;
 
the fiscal and monetary policies of the federal government and its agencies;
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4
 
changes
 
in
 
federal
 
bank
 
regulatory
 
and
 
supervisory
 
policies,
 
including
 
required
 
levels
 
of
 
capital,
 
liquidity,
 
resolution-
related requirements and the impact of other proposed capital standards on our capital ratios;
 
changes
 
in
 
and
 
uncertainty
 
regarding
 
federal
 
funding,
 
tax
 
and
 
trade
 
and
 
tariff
 
policies,
 
and
 
rulemaking,
 
supervision,
examination and enforcement priorities of the current federal administration;
 
increases
 
to
 
or
 
additional
 
Federal
 
Deposit
 
Insurance
 
Corporation
 
(“FDIC”)
 
assessments,
 
such
 
as
 
the
 
special
assessment
 
implemented by
 
the
 
FDIC to
 
recover
 
the losses
 
to the
 
deposit
 
insurance
 
fund (“DIF”)
 
resulting
 
from the
receiverships of Silicon Valley Bank and Signature
 
Bank;
 
regulatory approvals
 
that may
 
be necessary
 
to undertake
 
certain actions
 
or consummate
 
strategic transactions,
 
such
as acquisitions and dispositions;
 
the
 
relative
 
strength
 
or
 
weakness
 
of
 
the
 
consumer
 
and
 
commercial
 
credit
 
sectors
 
and
 
of
 
the
 
real
 
estate
 
markets
 
in
Puerto Rico and the other markets in which our borrowers are located;
 
a deterioration in the credit quality of our clients, customers and counterparties;
 
the performance of the stock and bond markets;
 
competition in the financial services industry;
 
possible legislative, tax or regulatory changes;
 
a failure
 
in or
 
breach of
 
our operational
 
or security
 
systems or
 
infrastructure or
 
those of
 
Evertec, Inc.,
 
our provider
 
of
core financial
 
transaction processing
 
and information
 
technology services,
 
or of
 
third parties
 
providing services
 
to us,
including
 
as
 
a
 
result
 
of
 
cyberattacks,
 
e-fraud,
 
denial-of-services
 
and
 
computer
 
intrusion,
 
resulting
 
in,
 
among
 
other
things, loss or breach of customer data, disruption of services, reputational damage or additional costs to Popular;
 
changes in market rates and prices which may adversely impact the value of financial assets and liabilities;
 
potential
 
judgments,
 
claims,
 
damages,
 
penalties,
 
fines,
 
enforcement
 
actions
 
and
 
reputational
 
damage
 
resulting
 
from
pending or future litigation and regulatory or government investigations or actions;
 
changes in accounting standards, rules and interpretations;
 
our ability to grow our core businesses;
 
decisions to downsize, sell or close branches or business units or otherwise change our business mix; and
 
management’s ability to identify and manage these and other risks.
Moreover,
 
the outcome
 
of any
 
legal and
 
regulatory proceedings,
 
as discussed
 
in “Part
 
II, Item
 
1. Legal
 
Proceedings,” is
 
inherently
uncertain and depends on judicial interpretations
 
of law and the findings of
 
regulators, judges and/or juries. Investors
 
should refer to
the Corporation’s
 
Annual Report
 
on Form
 
10-K for
 
the year
 
ended December 31,
 
2024 (the
 
“2024 Form
 
10-K”), as
 
well as
 
“Part II,
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
 
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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5
POPULAR, INC.
CONSOLIDATED STATEMENTS
 
OF FINANCIAL CONDITION
[UNAUDITED]
[UNAUDITED]
March 31,
December 31,
(In thousands, except share information)
2025
2024
Assets:
Cash and due from banks
$
380,165
$
419,638
Money market investments:
 
Time deposits with other banks
 
6,195,028
6,380,948
Total money market investments
6,195,028
6,380,948
Trading account debt securities, at fair value
28,477
32,831
Debt securities available-for-sale, at fair value:
Pledged securities with creditors’ right to repledge
 
33,273
30,486
Other debt securities available-for-sale
19,459,907
18,215,417
Debt securities available-for-sale
19,493,180
18,245,903
Debt securities held-to-maturity, at amortized cost:
Pledged securities with creditors’ right to repledge
 
27,595
27,405
Other debt securities held-to-maturity
7,621,123
7,730,672
Debt securities held-to-maturity (fair value 2025 - $
7,640,686
; 2024 - $
7,682,664
)
7,648,718
7,758,077
Less – Allowance for credit losses
5,481
5,317
Debt securities held-to-maturity, net
7,643,237
7,752,760
Equity securities (realizable value 2025 - $
205,515
; 2024 - $
208,663
)
205,021
208,166
Loans held-for-sale, at fair value
5,077
5,423
Loans held-in-portfolio
37,675,070
37,522,995
Less – Unearned income
421,038
415,343
 
Allowance for credit losses
762,148
746,024
Total loans held-in-portfolio, net
36,491,884
36,361,628
Premises and equipment, net
625,237
601,787
Other real estate
52,114
57,268
Accrued income receivable
262,720
263,389
Mortgage servicing rights, at fair value
104,743
108,103
Other assets
1,742,540
1,797,759
Goodwill
802,954
802,954
Other intangible assets
6,229
6,826
Total assets
$
74,038,606
$
73,045,383
Liabilities and Stockholders’ Equity
Liabilities:
 
Deposits:
Non-interest bearing
$
15,160,801
$
15,139,555
Interest bearing
50,658,454
49,744,790
Total deposits
65,819,255
64,884,345
Assets sold under agreements to repurchase
57,268
54,833
Other short-term borrowings
200,000
225,000
Notes payable
833,149
896,293
Other liabilities
1,329,239
1,371,846
Total liabilities
68,238,911
67,432,317
Commitments and contingencies (Refer to Note 20)
 
 
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;
104,869,189
 
shares issued (2024 -
104,849,460
) and
68,984,148
 
shares outstanding (2024 -
70,141,291
)
1,049
1,048
Surplus
4,912,886
4,908,693
Retained earnings
4,699,697
4,570,957
Treasury stock - at cost,
35,885,041
 
shares (2024 -
34,708,169
)
 
(2,346,093)
(2,228,535)
Accumulated other comprehensive loss, net of tax
 
(1,489,987)
(1,661,240)
Total stockholders’ equity
 
5,799,695
5,613,066
Total liabilities and stockholders’ equity
$
74,038,606
$
73,045,383
The accompanying notes are an integral part of these Consolidated Financial Statements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6
POPULAR, INC.
CONSOLIDATED STATEMENTS
 
OF OPERATIONS
Quarters ended March 31,
(In thousands, except per share information)
2025
2024
Interest income:
Loans
$
666,673
$
638,730
Money market investments
70,166
88,516
Investment securities
180,159
166,895
Total interest income
916,998
894,141
Interest expense:
 
Deposits
297,863
329,496
Short-term borrowings
1,426
1,192
Long-term debt
12,112
12,709
Total interest expense
311,401
343,397
Net interest income
 
605,597
550,744
Provision for credit losses
64,081
72,598
Net interest income after provision for credit losses
541,516
478,146
Non-interest income:
 
Service charges on deposit accounts
39,054
37,442
Other service fees
94,508
94,272
Mortgage banking activities (Refer to Note 9)
3,689
4,360
Net (loss) gain, including impairment on equity securities
(414)
1,103
Net gain on trading account debt securities
520
361
Adjustments to indemnity reserves on loans sold
 
173
(237)
Other operating income
14,531
26,517
Total non-interest
 
income
152,061
163,818
Operating expenses:
 
Personnel costs
212,713
215,377
Net occupancy expenses
27,218
28,041
Equipment expenses
5,302
9,567
Other taxes
18,725
14,375
Professional fees
26,825
28,918
Technology and
 
software expenses
83,668
79,462
Processing and transactional services
37,781
34,194
Communications
4,904
4,557
Business promotion
23,675
20,989
Deposit insurance
10,035
23,887
Other real estate owned (OREO) expense (income)
(3,330)
(5,321)
Other operating expenses
22,899
28,272
Amortization of intangibles
597
795
Total operating expenses
471,012
483,113
Income before income tax
222,565
158,851
Income tax expense
45,063
55,568
Net Income
$
177,502
$
103,283
Net Income Applicable to Common Stock
 
$
177,149
$
102,930
Net Income per Common Share - Basic
$
2.56
$
1.43
Net Income per Common Share - Diluted
$
2.56
$
1.43
The accompanying notes are an integral part of these Consolidated Financial Statements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7
POPULAR, INC.
CONSOLIDATED STATEMENTS
 
OF COMPREHENSIVE INCOME
Quarters ended March 31,
(In thousands)
2025
2024
Net income
 
$
177,502
$
103,283
Other comprehensive income (loss) before tax:
Foreign currency translation adjustment
(6,646)
(4,020)
Amortization of net losses of pension and postretirement benefit plans
2,273
3,618
Unrealized holding gains (losses) on debt securities arising during the period
 
165,984
(73,030)
Amortization of unrealized losses of debt securities transfer from available-for-sale to held-to-
maturity
45,311
44,009
Other comprehensive income (loss) before tax
206,922
(29,423)
Income tax expense
(35,669)
(8,232)
Total other comprehensive
 
income (loss), net of tax
171,253
(37,655)
Comprehensive income, net of tax
$
348,755
$
65,628
Tax effect allocated to each component of other
 
comprehensive income (loss):
Quarters ended March 31,
(In thousands)
2025
2024
Amortization of net losses of pension and postretirement benefit plans
(852)
(1,356)
Unrealized holding gains (losses) on debt securities arising during the period
 
(25,755)
1,926
Amortization of unrealized losses of debt securities transfer from available-for-sale to held-to-
maturity
(9,062)
(8,802)
Income tax expense
$
(35,669)
$
(8,232)
The accompanying notes are an integral part of these Consolidated Financial Statements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8
POPULAR, INC.
CONSOLIDATED STATEMENTS
 
OF CHANGES IN STOCKHOLDERS’ EQUITY
(UNAUDITED)
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
103,283
103,283
Issuances of common stock
1,799
1,799
Dividends declared:
Common stock
[1]
(44,751)
(44,751)
Preferred stock
(353)
(353)
Common stock purchases
(3,576)
(3,576)
Stock based compensation
2,268
9,346
11,614
Other comprehensive loss, net of tax
(37,655)
(37,655)
Balance at March 31, 2024
 
$
1,048
$
22,143
$
4,847,466
$
4,253,030
$
(2,013,187)
$
(1,933,186)
$
5,177,314
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
177,502
177,502
Issuances of common stock
1
1,769
1,770
Dividends declared:
Common stock
[1]
(48,409)
(48,409)
Preferred stock
(353)
(353)
Common stock purchases
[2]
(125,980)
(125,980)
Stock based compensation
2,424
8,422
10,846
Other comprehensive income, net of tax
171,253
171,253
Balance at March 31, 2025
$
1,049
$
22,143
$
4,912,886
$
4,699,697
$
(2,346,093)
$
(1,489,987)
$
5,799,695
[1]
Dividends declared per common share during the quarter ended March 31, 2025 - $
0.7
0 (2024 - $
0.62
).
[2]
Includes common stock
 
repurchases of $
122.3
 
million as
 
part of
 
a repurchase authorization
 
up to $
500
 
million. Refer
 
to Note
 
17 for additional
information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9
POPULAR, INC.
CONSOLIDATED STATEMENTS
 
OF CHANGES IN STOCKHOLDERS’ EQUITY
(UNAUDITED)
For the period ended
March 31,
March 31,
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
19,729
23,137
Balance at end of period
104,869,189
104,790,485
Treasury stock
(35,885,041)
(32,505,610)
Common Stock – Outstanding
68,984,148
72,284,875
The accompanying notes are an integral part of these Consolidated Financial Statements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10
POPULAR, INC.
CONSOLIDATED STATEMENTS
 
OF CASH FLOWS
(UNAUDITED)
Quarters ended March 31,
(In thousands)
2025
2024
Cash flows from operating activities:
Net income
$
177,502
$
103,283
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses
64,081
72,598
Amortization of intangibles
597
795
Depreciation and amortization of premises and equipment
12,280
15,361
Net accretion of discounts and amortization of premiums and deferred fees
 
(68,861)
(51,360)
Interest capitalized on loans subject to the temporary payment moratorium or loss mitigation alternatives
(1,357)
(1,641)
Share-based compensation
11,028
11,479
Fair value adjustments on mortgage servicing rights
3,570
3,439
Adjustments to indemnity reserves on loans sold
(173)
237
Earnings from investments under the equity method, net of dividends or distributions
(8,621)
(11,792)
Deferred income tax expense
 
8,109
9,513
Gain on:
Disposition of premises and equipment and other productive assets
(42)
(3,412)
Sale of loans, including valuation adjustments on loans held-for-sale and mortgage banking
 
activities
(194)
(74)
Sale of foreclosed assets, including write-downs
(1,033)
(4,447)
Acquisitions of loans held-for-sale
(810)
(324)
Proceeds from sale of loans held-for-sale
7,098
8,283
Net originations on loans held-for-sale
(6,741)
(11,056)
Net decrease (increase) in:
Trading debt securities
6,071
6,465
Equity securities
508
(1,995)
Accrued income receivable
 
725
(22,719)
Other assets
12,864
38,702
Net increase (decrease) in:
Interest payable
(7,370)
(10,799)
Pension and other postretirement benefits obligation
1,079
916
Other liabilities
(38,252)
10,111
Total adjustments
(5,444)
58,280
Net cash provided by operating activities
172,058
161,563
Cash flows from investing activities:
 
Net decrease in money market investments
186,609
1,070,973
Purchases of investment securities:
Available-for-sale
(9,425,086)
(8,161,525)
Equity
(9,224)
(971)
Proceeds from calls, paydowns, maturities and redemptions of investment securities:
Available-for-sale
8,429,813
6,728,665
Held-to-maturity
152,441
154,009
Proceeds from sale of investment securities:
 
 
Equity
13,361
945
Net (disbursements) repayments on loans
(118,418)
2,354
Proceeds from sale of loans
39,055
15,356
Acquisition of loan portfolios
(127,291)
(141,730)
Acquisition of premises and equipment and other productive assets
(51,526)
(53,889)
Proceeds from sale of:
Premises and equipment and other productive assets
197
1,632
Foreclosed assets
23,155
26,773
Net cash used in investing activities
(886,914)
(357,408)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11
Cash flows from financing activities:
 
Net increase (decrease) in:
Deposits
939,913
190,477
Assets sold under agreements to repurchase
 
2,435
(25,294)
Other short-term borrowings
(25,000)
-
Payments of notes payable
(63,522)
(21,000)
Principal payments of finance leases
(908)
(881)
Proceeds from issuances of common stock
1,770
1,799
Dividends paid
(49,899)
(44,976)
Net payments for repurchase of common stock
(125,341)
(314)
Payments related to tax withholding for share-based compensation
(3,376)
(3,262)
Net cash provided by financing activities
676,072
96,549
Net decrease in cash and due from banks, and restricted cash
(38,784)
(99,296)
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
$
390,622
$
328,279
The accompanying notes are an integral part of these Consolidated Financial Statements.
12
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
19
Note 5 -
Debt securities available-for-sale
20
Note 6 -
Debt securities held-to-maturity
23
Note 7 -
Loans
27
Note 8 -
Allowance for credit losses – loans held-in-
portfolio
36
Note 9 -
Mortgage banking activities
66
Note 10 -
Transfers of financial assets and mortgage
servicing assets
67
Note 11 -
Other real estate owned
70
Note 12 -
Other assets
71
Note 13 -
Goodwill and other intangible assets
 
73
Note 14 -
Deposits
75
Note 15 -
Borrowings
76
Note 16 -
Other liabilities
78
Note 17 -
Stockholders’ equity
79
Note 18 -
Other comprehensive income (loss)
 
80
Note 19 -
Guarantees
82
Note 20 -
Commitments and contingencies
84
Note 21-
Non-consolidated variable interest entities
87
Note 22 -
Related party transactions
89
Note 23 -
Fair value measurement
90
Note 24 -
Fair value of financial instruments
96
Note 25 -
Net income per common share
99
Note 26 -
Revenue from contracts with customers
100
Note 27 -
Leases
102
Note 28 -
Pension and postretirement benefits
104
Note 29 -
Stock-based compensation
105
Note 30 -
Income taxes
107
Note 31 -
Supplemental disclosure on the consolidated
statements of cash flows
111
Note 32 -
Segment reporting
112
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
 
States (“U.S.”)
 
and 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,
 
mortgage,
 
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.
 
14
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
 
(US
 
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.
15
Note 3 - New accounting pronouncements
 
 
 
 
 
 
 
 
 
Recently Adopted Accounting Standards Updates
Standard
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 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 hold crypto-assets.
16
 
 
 
 
 
 
 
 
 
Recently Adopted Accounting Standards Updates
Standard
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
 
by
the
 
adoption
 
of
 
this
 
ASU
 
but
 
it
 
will
consider
 
this
 
guidance
 
for
 
the
 
initial
measurement of assets and liabilities
 
of
newly
 
created
 
joint
 
ventures
prospectively.
17
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounting Standards Updates Not Yet Adopted
Standard
Description
Date of adoption
Effect on the financial statements
 
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
any
 
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.
For fiscal years
beginning on
January 1, 2025
The Corporation
 
is currently
 
evaluating
any
 
impact
 
that
 
the
 
adoption
 
of
 
this
guidance
 
will
 
have
 
on
 
its
 
financial
statements
 
and
 
presentation
 
and
disclosures.
18
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounting Standards Updates Not Yet Adopted
Standard
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 from
Regulation S-X or
Regulation S-K. If by
June 30, 2027, the
SEC has not
removed the
applicable
requirements from
Regulation S-X or
Regulation S-K, the
pending content of
the related
amendment will be
removed from the
Codification and will
not become
 
effective for any
entity.
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.
19
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 $
2.7
 
billion at March 31, 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 March
 
31, 2025,
 
the Corporation
 
held $
60
 
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.
 
20
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 March 31, 2025 and December 31, 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At March 31, 2025
Gross
Gross
Weighted
Amortized
unrealized
unrealized
Fair
 
average
(In thousands)
cost
gains
 
losses
value
yield
U.S. Treasury securities
Within 1 year
$
11,412,148
$
62
$
39,477
$
11,372,733
3.48
%
After 1 to 5 years
2,922,974
9,072
30,811
2,901,235
3.73
Total U.S. Treasury securities
14,335,122
9,134
70,288
14,273,968
3.53
Collateralized mortgage obligations - federal agencies
After 1 to 5 years
9,013
-
256
8,757
1.53
After 5 to 10 years
14,070
-
715
13,355
2.50
After 10 years
101,244
179
7,676
93,747
2.91
Total collateralized mortgage obligations - federal agencies
124,327
179
8,647
115,859
2.76
Mortgage-backed securities - federal agencies
Within 1 year
15,640
-
181
15,459
2.67
After 1 to 5 years
65,153
8
2,060
63,101
2.25
After 5 to 10 years
714,425
127
35,368
679,184
2.38
After 10 years
5,340,748
764
996,653
4,344,859
1.67
Total mortgage-backed securities - federal agencies
6,135,966
899
1,034,262
5,102,603
1.77
Other
Within 1 year
500
-
-
500
4.43
After 1 to 5 years
250
-
-
250
4.90
Total other
 
750
-
-
750
4.59
Total debt securities available-for-sale
[1]
$
20,596,165
$
10,212
$
1,113,197
$
19,493,180
3.00
%
[1]
 
Includes $
14.3
 
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 $
13.3
 
billion serve as collateral for
public funds.
 
The Corporation had unpledged Available for Sale securities with a fair value of
 
$
5.1
 
billion that could be used to increase its
borrowing facilities.
21
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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.
Debt
 
securities
 
not
 
due
 
on
 
a
 
single
 
contractual
 
maturity
 
date,
 
such
 
as
 
mortgage-backed
 
securities
 
and
 
collateralized
 
mortgage
obligations, are
 
classified in
 
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 March 31, 2025,
 
the Corporation did not
 
intend to sell or
 
believed it was more
 
likely than not that it
 
would be required to
 
sell debt
securities classified as available-for-sale. There were no debt securities sold during the quarters ended March 31, 2025 and 2024.
 
 
 
22
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
March 31, 2025 and December 31, 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At March 31, 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
$
9,272,746
$
12,743
$
2,908,217
$
57,545
$
12,180,963
$
70,288
Collateralized mortgage obligations - federal agencies
 
4,630
2
97,990
8,645
102,620
8,647
Mortgage-backed securities -federal agencies
49,654
2,015
4,996,855
1,032,247
5,046,509
1,034,262
Total debt securities available-for-sale in an unrealized loss position
 
$
9,327,030
$
14,760
$
8,003,062
$
1,098,437
$
17,330,092
$
1,113,197
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 March 31, 2025, the portfolio of available-for-sale
 
debt securities reflects gross unrealized losses of $
1.1
 
billion (December 31,
2024 -
 
$
1.3
 
billion), driven
 
mainly by
 
mortgage-backed securities,
 
which have
 
been impacted
 
by the-interest
 
rate environment
 
and
the portfolio’s
 
longer duration.
 
During the
 
first quarter
 
of 2025,
 
the unrealized
 
losses on
 
the available-for-sale
 
portfolio declined
 
by
approximately $
169
 
million due mainly to the
 
decrease in rates and portfolio runoff.
 
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.
 
 
23
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
 
March 31,
 
2025 and
 
December 31,
2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At March 31, 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
$
850,742
$
844,252
$
-
$
844,252
$
-
$
3,680
$
840,572
2.45
%
After 1 to 5 years
7,169,044
6,741,917
-
6,741,917
2,506
1,481
6,742,942
1.24
Total U.S. Treasury securities
8,019,786
7,586,169
-
7,586,169
2,506
5,161
7,583,514
1.37
Obligations of Puerto Rico, States and
political subdivisions
Within 1 year
2,540
2,540
11
2,529
10
1
2,538
6.41
After 1 to 5 years
14,798
14,798
69
14,729
36
84
14,681
3.39
After 5 to 10 years
655
655
22
633
21
-
654
5.81
After 10 years
37,082
37,082
5,379
31,703
2,632
2,325
32,010
1.42
Total obligations of Puerto Rico, States and
political subdivisions
55,075
55,075
5,481
49,594
2,699
2,410
49,883
2.23
Collateralized mortgage obligations - federal
agencies
After 10 years
1,514
1,514
-
1,514
-
185
1,329
2.87
Total collateralized mortgage obligations -
federal agencies
1,514
1,514
-
1,514
-
185
1,329
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]
$
8,082,335
$
7,648,718
$
5,481
$
7,643,237
$
5,205
$
7,756
$
7,640,686
1.38
%
[1]
Book value includes $
434
 
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 $
7.5
 
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 $
138.3
 
million that could be used to increase its borrowing facilities.
 
24
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 March 31,
 
2025 and December
 
31, 2024, the
 
“Obligations of Puerto
 
Rico, States and
 
political subdivisions” classified
 
as held-to-
maturity,
 
includes
 
securities
 
issued
 
by
 
municipalities
 
of
 
Puerto
 
Rico
 
that
 
are
 
generally
 
not
 
rated
 
by
 
a
 
credit
 
rating
 
agency.
 
This
includes $
11
 
million of general and special
 
obligation bonds issued by three
 
municipalities of Puerto Rico,
 
that are payable primarily
from
 
certain
 
property
 
taxes
 
imposed
 
by
 
the
 
issuing
 
municipality
 
(December
 
31,
 
2024
 
-
 
$
13
 
million).
 
In
 
the
 
case
 
of
 
general
obligations, they
 
also benefit
 
from a
 
pledge of
 
the full
 
faith, credit
 
and unlimited
 
taxing power
 
of the
 
issuing municipality,
 
which is
required by law to levy property
 
taxes in an amount sufficient
 
for the payment of debt service
 
on such general obligation bonds.
 
The
Corporation performs periodic
 
credit quality reviews
 
of these securities
 
and internally assigns
 
standardized credit risk
 
ratings based
on its evaluation.
 
The Corporation considers
 
these ratings in
 
its estimate to
 
develop the allowance
 
for credit losses
 
associated with
these
 
securities.
 
For
 
the
 
definitions
 
of
 
the
 
obligor
 
risk
 
ratings,
 
refer
 
to
 
the
 
Credit
 
Quality
 
section
 
of
 
Note
 
8
 
to
 
the
 
Consolidated
Financial Statements.
The
 
following
 
presents
 
the
 
amortized
 
cost
 
basis
 
of
 
securities
 
held
 
by
 
the
 
Corporation
 
issued
 
by
 
municipalities
 
of
 
Puerto
 
Rico
aggregated by the internally assigned standardized credit risk rating:
 
 
25
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At March 31, 2025
At December 31, 2024
(In thousands)
Securities issued by Puerto Rico municipalities
Watch
$
1,555
$
1,555
Pass
9,525
11,060
Total
$
11,080
$
12,615
At
 
March
 
31,
 
2025,
 
the
 
portfolio
 
of
 
“Obligations
 
of
 
Puerto
 
Rico,
 
States
 
and
 
political
 
subdivisions”
 
also
 
includes
 
$
37
 
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
 
- $
38
 
million). These
securities are not rated by a credit rating agency.
 
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
 
March
 
31,
 
2025,
 
the
 
average
 
refreshed
 
FICO
 
score
 
for
 
the
 
sample,
comprised
 
of
73
%
 
of
 
the
 
nominal
 
value
 
of
 
the
 
securities,
 
used
 
for
 
the
 
loss
 
estimate
 
was
 
of
674
 
(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.
 
Refer
 
to
 
Note
 
20
to
 
the
 
Consolidated
 
Financial
 
Statements
in
 
this
 
Form
 
10-Q
for
 
additional
 
information
 
on
 
the
 
Corporation’s
exposure to the Puerto Rico Government.
At
 
March
 
31,
 
2025
 
and
 
December
 
31,
 
2024,
 
the
 
portfolio
 
of
 
“Obligations
 
of
 
Puerto
 
Rico,
 
States
 
and
 
political
 
subdivisions”
 
also
includes $
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. Refer to Note 2 to the Consolidated Financial Statements for further details.
Delinquency status
At March 31, 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 following table
 
provides the activity
 
in the allowance
 
for credit losses
 
related to debt securities
 
held-to-maturity by security
 
type
at
 
March 31, 2025 and March 31, 2024:
 
26
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the quarters ended March 31,
 
2025
2024
(In thousands)
Obligations of Puerto Rico, States and political subdivisions
Allowance for credit losses:
Beginning balance
$
5,317
$
5,780
Provision for credit losses (benefit)
164
(49)
Securities charged-off
-
-
Recoveries
-
-
Ending balance
$
5,481
$
5,731
The
 
allowance
 
for
 
credit
 
losses
 
for
 
the
 
Obligations
 
of
 
Puerto
 
Rico,
 
States
 
and
 
political
 
subdivisions
 
includes
 
$
0.3
 
million
 
for
securities issued by
 
municipalities of Puerto
 
Rico, and $
5.2
 
million for bonds
 
issued by the
 
Puerto Rico HFA,
 
which are secured
 
by
second mortgage loans
 
on Puerto Rico
 
residential properties (compared
 
to $
0.1
 
million and $
5.2
 
million, respectively,
 
at December
31, 2024).
 
 
 
27
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 ended
 
March 31,
 
2025 and
2024 by class of loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the quarters ended March 31,
 
(In thousands)
2025
2024
Commercial
$
7,160
$
56,164
Mortgage
120,907
85,804
Ending balance
$
128,067
$
141,968
The following table presents the Corporation’s whole-loan sales for the quarters ended March 31, 2025
 
and 2024 by class of loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the quarters ended March 31,
 
(In thousands)
2025
2024
Commercial
$
26,349
$
-
Construction
9,338
11,656
Mortgage
6,937
11,004
Ending balance
$
42,624
$
22,660
During
 
the
 
quarter
 
ended
 
March
 
31,
 
2025,
 
the
 
Corporation
 
securitized
 
approximately
 
$
2
 
million
 
of
 
mortgage
 
loans
 
into
 
FNMA
mortgage-backed securities,
 
compared to
 
$
1
 
million during
 
the quarter
 
ended March
 
31, 2024.
 
The Corporation
 
did
no
t securitize
mortgage loans into GNMA mortgage-backed securities during the quarter ended
 
March 31, 2025, compared to $
1
 
million during the
quarter ended March 31, 2024.
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
March 31, 2025 and December 31, 2024.
 
 
 
 
28
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 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
$
3,387
$
112
$
73
$
3,572
$
304,739
$
308,311
$
73
$
-
Commercial real estate:
Non-owner occupied
3,045
74
6,306
9,425
3,304,377
3,313,802
6,306
-
Owner occupied
7,512
141
26,891
34,544
1,168,868
1,203,412
26,891
-
Commercial and industrial
4,637
2,871
13,089
20,597
5,227,961
5,248,558
9,327
3,762
Construction
6,498
-
-
6,498
223,705
230,203
-
-
Mortgage
249,712
105,166
333,557
688,435
6,257,507
6,945,942
148,506
185,051
Leasing
19,178
5,192
8,895
33,265
1,916,440
1,949,705
8,895
-
Consumer:
Credit cards
13,365
10,555
30,506
54,426
1,133,352
1,187,778
-
30,506
Home equity lines of credit
-
-
18
18
2,039
2,057
-
18
Personal
19,246
11,174
18,251
48,671
1,707,204
1,755,875
18,251
-
Auto
78,743
15,893
41,784
136,420
3,683,822
3,820,242
41,784
-
Other
2,686
144
2,307
5,137
153,586
158,723
1,973
334
Total
$
408,009
$
151,322
$
481,677
$
1,041,008
$
25,083,600
$
26,124,608
$
262,006
$
219,671
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 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
$
1,858
$
-
$
8,700
$
10,558
$
2,056,046
$
2,066,604
$
8,700
$
-
Commercial real estate:
Non-owner occupied
768
-
7,886
8,654
2,218,147
2,226,801
7,886
-
Owner occupied
-
-
231
231
1,752,916
1,753,147
231
-
Commercial and industrial
7,724
733
879
9,336
2,435,629
2,444,965
690
189
Construction
-
-
-
-
1,128,776
1,128,776
-
-
Mortgage
29,944
1,604
29,087
60,635
1,267,176
1,327,811
29,087
-
Consumer:
Credit cards
-
-
-
-
(1)
(1)
-
-
Home equity lines of
credit
1,851
973
3,430
6,254
68,798
75,052
3,430
-
Personal
1,381
781
2,034
4,196
89,952
94,148
2,034
-
Other
1
-
5
6
12,115
12,121
5
-
Total
$
43,527
$
4,091
$
52,252
$
99,870
$
11,029,554
$
11,129,424
$
52,063
$
189
 
 
29
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 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
$
5,245
$
112
$
8,773
$
14,130
$
2,360,785
$
2,374,915
$
8,773
$
-
Commercial real estate:
Non-owner occupied
3,813
74
14,192
18,079
5,522,524
5,540,603
14,192
-
Owner occupied
7,512
141
27,122
34,775
2,921,784
2,956,559
27,122
-
Commercial and industrial
12,361
3,604
13,968
29,933
7,663,590
7,693,523
10,017
3,951
Construction
6,498
-
-
6,498
1,352,481
1,358,979
-
-
Mortgage
[1]
279,656
106,770
362,644
749,070
7,524,683
8,273,753
177,593
185,051
Leasing
19,178
5,192
8,895
33,265
1,916,440
1,949,705
8,895
-
Consumer:
Credit cards
13,365
10,555
30,506
54,426
1,133,351
1,187,777
-
30,506
Home equity lines of credit
1,851
973
3,448
6,272
70,837
77,109
3,430
18
Personal
20,627
11,955
20,285
52,867
1,797,156
1,850,023
20,285
-
Auto
78,743
15,893
41,784
136,420
3,683,822
3,820,242
41,784
-
Other
2,687
144
2,312
5,143
165,701
170,844
1,978
334
Total
$
451,536
$
155,413
$
533,929
$
1,140,878
$
36,113,154
$
37,254,032
$
314,069
$
219,860
[1]
At March 31, 2025, mortgage loans held-in-portfolio include $
2.8
 
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 $
185
 
million are 90 days or more past due. The portfolio of
guaranteed loans includes $
57
 
million of residential mortgage loans in Puerto Rico that are no longer accruing
 
interest as of March 31, 2025. The
Corporation has approximately $
30
 
million in reverse mortgage loans in Puerto Rico which are guaranteed by FHA, but which are currently
 
not
accruing interest at March 31, 2025.
[2]
Loans held-in-portfolio are net of $
421
 
million in unearned income and exclude $
5
 
million in loans held-for-sale.
[3]
Includes $
16.3
 
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 Federal Home Loan Bank ("FHLB") as collateral for borrowings and $
9
.0 billion at the Federal Reserve
Bank ("FRB") for discount window borrowings. As of March 31, 2025, the Corporation had an available
 
borrowing facility with the FHLB and the
discount window of Federal Reserve Bank of New York of $
4.1
 
billion and $
7.2
 
billion, respectively.
 
 
 
30
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
$
190
 
 
31
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 approximately $
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.
Recognition of interest income on mortgage loans is
 
generally discontinued when loans are 90 days or more
 
in arrears on payments
of principal or interest. The Corporation
 
discontinues the recognition of interest
 
income on residential mortgage loans
 
insured by the
FHA or guaranteed by the VA
 
when 15 months delinquent as
 
to principal or interest, since the
 
principal repayment on these loans is
insured.
Loans with a delinquency
 
status of 90 days
 
past due as of
 
March 31, 2025 include
 
$
7
 
million in loans previously
 
pooled into GNMA
securities (December 31, 2024 - $
9
 
million). Under the GNMA program, issuers such as BPPR have the option but
 
not the obligation
to repurchase loans
 
that are 90
 
days or more
 
past due. For
 
accounting purposes, these
 
loans subject to
 
the repurchase option
 
are
required to be reflected on
 
the financial statements of BPPR
 
with an offsetting liability.
 
Loans in our serviced GNMA
 
portfolio benefit
from payment forbearance programs but continue to reflect the contractual
 
delinquency until the borrower repays deferred payments
or completes a payment deferral modification or other borrower assistance alternative.
The following tables present the amortized cost basis of non-accrual loans as of March 31, 2025 and December 31, 2024 by
 
class of
loans:
 
 
32
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 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
$
-
$
73
$
8,700
$
-
$
8,700
$
73
Commercial real estate non-owner occupied
3,163
3,143
7,053
833
10,216
3,976
Commercial real estate owner occupied
18,822
8,069
-
231
18,822
8,300
Commercial and industrial
-
9,327
-
690
-
10,017
Mortgage
64,573
83,933
1,475
27,612
66,048
111,545
Leasing
1,374
7,521
-
-
1,374
7,521
Consumer:
 
HELOCs
-
-
-
3,430
-
3,430
 
Personal
 
3,222
15,029
-
2,034
3,222
17,063
 
Auto
 
1,805
39,979
-
-
1,805
39,979
 
Other
-
1,973
-
5
-
1,978
Total
$
92,959
$
169,047
$
17,228
$
34,835
$
110,187
$
203,882
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 March
 
31, 2025 include
 
$
110
 
million in collateral
 
dependent loans (December
 
31,
2024 -
 
$
124
 
million). The
 
Corporation recognized
 
$
3
 
million in
 
interest income
 
on non-accrual
 
loans in
 
each of
 
the quarters
 
ended
March 31, 2025 and March 31, 2024.
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 March 31, 2025 and December
 
31, 2024:
 
33
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2025
(In thousands)
Real Estate
Auto
Equipment
Accounts
Receivables
Other
Total
BPPR
Commercial multi-family
$
1,262
$
-
$
-
$
-
$
-
$
1,262
Commercial real estate:
Non-owner occupied
148,090
-
-
-
-
148,090
Owner occupied
24,202
-
-
-
-
24,202
Commercial and industrial
2,584
-
84
130
2,248
5,046
Mortgage
64,013
-
-
-
-
64,013
Leasing
-
2,194
-
-
-
2,194
Consumer:
Personal
3,114
-
-
-
-
3,114
Auto
-
16,045
-
-
-
16,045
Other
-
-
-
-
14
14
Total BPPR
$
243,265
$
18,239
$
84
$
130
$
2,262
$
263,980
Popular U.S.
Commercial multi-family
$
8,700
$
-
$
-
$
-
$
-
$
8,700
Commercial real estate:
Non-owner occupied
12,857
-
-
-
-
12,857
Commercial and industrial
-
-
18
-
-
18
Mortgage
2,008
-
-
-
-
2,008
Total Popular U.S.
$
23,565
$
-
$
18
$
-
$
-
$
23,583
Popular, Inc.
Commercial multi-family
$
9,962
$
-
$
-
$
-
$
-
$
9,962
Commercial real estate:
Non-owner occupied
160,947
-
-
-
-
160,947
Owner occupied
24,202
-
-
-
-
24,202
Commercial and industrial
2,584
-
102
130
2,248
5,064
Mortgage
66,021
-
-
-
-
66,021
Leasing
-
2,194
-
-
-
2,194
Consumer:
Personal
3,114
-
-
-
-
3,114
Auto
-
16,045
-
-
-
16,045
Other
-
-
-
-
14
14
Total Popular,
 
Inc.
$
266,830
$
18,239
$
102
$
130
$
2,262
$
287,563
 
34
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
35
Purchased Credit Deteriorated (PCD) Loans
The Corporation has purchased loans during the quarters ended March 31, 2025 and 2024 for which there was, at acquisition,
evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans
 
is as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
March 31, 2025
March 31, 2024
Purchase price of loans at acquisition
$
259
$
426
Allowance for credit losses at acquisition
9
17
Par value of acquired loans at acquisition
$
268
$
443
36
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 March
 
31, 2025,
 
the Corporation
 
estimated the
 
ACL by
 
weighting the
 
outputs of
 
optimistic, baseline,
 
and pessimistic
 
scenarios.
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.
 
The weightings applied are
 
subject to evaluation on
 
a quarterly basis as
 
part of the ACL’s
 
governance
process. However,
 
lower net charge-offs
 
and improved credit
 
metrics in the
 
commercial and consumer
 
portfolios partially
 
offset the
impact
 
of
 
the
 
increase
 
in
 
reserves
 
related
 
to
 
the
 
change
 
in
 
the
 
weight
 
assigned
 
to
 
the
 
pessimistic
 
scenarios.
 
The
 
Corporation
evaluates, at least on
 
an annual basis,
 
the assumptions tied to
 
the CECL accounting
 
framework. These include
 
the reasonable and
supportable period as well as the reversion window.
The following
 
tables present
 
the changes
 
in the
 
ACL of
 
loans held-in-portfolio
 
and unfunded
 
commitments for
 
the quarters
 
ended
March 31, 2025 and 2024.
 
37
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the quarter ended March 31, 2025
BPPR
Provision for
Allowance for
Beginning
credit losses
credit losses -
Ending
(In thousands)
Balance
(benefit)
PCD Loans
Charge-offs
Recoveries
Balances
Allowance for credit losses - loans:
Commercial
 
Commercial multi-family
$
2,783
$
635
$
-
$
-
$
2
$
3,420
 
Commercial real estate non-owner occupied
44,852
(2,599)
-
(65)
660
42,848
 
Commercial real estate owner occupied
37,355
(1,742)
-
(89)
495
36,019
 
Commercial and industrial
130,136
(257)
-
(3,312)
4,840
131,407
 
Total Commercial
215,126
(3,963)
-
(3,466)
5,997
213,694
Construction
2,743
(24)
-
-
-
2,719
Mortgage
72,901
(1,118)
9
(435)
2,932
74,289
Leasing
16,419
7,059
-
(4,544)
1,272
20,206
Consumer
 
Credit cards
99,130
13,822
-
(18,865)
2,436
96,523
 
Home equity lines of credit
54
(108)
-
(25)
139
60
 
Personal
91,296
16,828
-
(21,953)
3,615
89,786
 
Auto
165,995
19,471
-
(21,056)
7,569
171,979
 
Other
7,002
723
-
(880)
162
7,007
 
Total Consumer
363,477
50,736
-
(62,779)
13,921
365,355
Total - Loans
$
670,666
$
52,690
$
9
$
(71,224)
$
24,122
$
676,263
Allowance for credit losses - unfunded commitments:
Commercial
$
6,725
$
720
$
-
$
-
$
-
$
7,445
Construction
1,663
(103)
-
-
-
1,560
Ending balance - unfunded commitments [1]
$
8,388
$
617
$
-
$
-
$
-
$
9,005
[1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the
 
Consolidated Statements of Financial Condition.
 
38
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the quarter ended March 31, 2025
Popular U.S.
Provision for
 
Beginning
credit losses -
Ending
(In thousands)
Balance
(benefit)
Charge-offs
Recoveries
Balance
Allowance for credit losses - loans:
Commercial
Commercial multi-family
$
6,453
$
3,627
$
-
$
1
$
10,081
Commercial real estate non-owner occupied
9,642
5,811
-
-
15,453
Commercial real estate owner occupied
12,473
1,209
(12)
523
14,193
Commercial and industrial
15,870
1,477
(1,147)
222
16,422
Total Commercial
44,438
12,124
(1,159)
746
56,149
Construction
8,521
(1,728)
-
-
6,793
Mortgage
9,508
47
-
185
9,740
Consumer
Home equity lines of credit
1,449
(136)
(30)
267
1,550
Personal
11,440
2,200
(2,626)
637
11,651
Other
2
21
(29)
8
2
Total Consumer
12,891
2,085
(2,685)
912
13,203
Total - Loans
$
75,358
$
12,528
$
(3,844)
$
1,843
$
85,885
Allowance for credit losses - unfunded commitments:
Commercial
$
1,662
$
(32)
$
-
$
-
$
1,630
Construction
5,409
(1,917)
-
-
3,492
Consumer
11
31
-
-
42
Ending balance - unfunded commitments [1]
$
7,082
$
(1,918)
$
-
$
-
$
5,164
[1]
Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the
 
Consolidated Statements of Financial Condition.
 
39
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the quarter ended March 31, 2025
Popular Inc.
Provision for
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
$
4,262
$
-
$
-
$
3
$
13,501
Commercial real estate non-owner occupied
54,494
3,212
-
(65)
660
58,301
Commercial real estate owner occupied
49,828
(533)
-
(101)
1,018
50,212
Commercial and industrial
146,006
1,220
-
(4,459)
5,062
147,829
Total Commercial
259,564
8,161
-
(4,625)
6,743
269,843
Construction
11,264
(1,752)
-
-
-
9,512
Mortgage
82,409
(1,071)
9
(435)
3,117
84,029
Leasing
16,419
7,059
-
(4,544)
1,272
20,206
Consumer
Credit cards
99,130
13,822
-
(18,865)
2,436
96,523
Home equity lines of credit
1,503
(244)
-
(55)
406
1,610
Personal
102,736
19,028
-
(24,579)
4,252
101,437
Auto
165,995
19,471
-
(21,056)
7,569
171,979
Other
7,004
744
-
(909)
170
7,009
Total Consumer
376,368
52,821
-
(65,464)
14,833
378,558
Total - Loans
$
746,024
$
65,218
$
9
$
(75,068)
$
25,965
$
762,148
Allowance for credit losses - unfunded commitments:
Commercial
$
8,387
$
688
$
-
$
-
$
-
$
9,075
Construction
7,072
(2,020)
-
-
-
5,052
Consumer
11
31
-
-
-
42
Ending balance - unfunded commitments [1]
$
15,470
$
(1,301)
$
-
$
-
$
-
$
14,169
[1]
Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the
 
Consolidated Statements of Financial Condition.
 
40
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the quarter ended March 31, 2024
BPPR
Provision for
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
$
(48)
$
-
$
-
$
1
$
3,567
Commercial real estate non-owner occupied
53,754
(413)
-
-
325
53,666
Commercial real estate owner occupied
40,637
5,147
-
(2,785)
538
43,537
Commercial and industrial
107,577
376
-
(6,669)
1,560
102,844
Total Commercial
205,582
5,062
-
(9,454)
2,424
203,614
Construction
5,294
(2,180)
-
-
-
3,114
Mortgage
72,440
(319)
17
(765)
5,191
76,564
Leasing
9,708
2,968
-
(4,850)
1,165
8,991
Consumer
Credit cards
80,487
21,640
-
(16,396)
2,438
88,169
Home equity lines of credit
103
103
-
(197)
93
102
Personal
101,181
20,263
-
(24,349)
2,409
99,504
Auto
157,931
13,371
-
(20,167)
6,321
157,456
Other
7,132
100
-
(664)
240
6,808
Total Consumer
346,834
55,477
-
(61,773)
11,501
352,039
Total - Loans
$
639,858
$
61,008
$
17
$
(76,842)
$
20,281
$
644,322
Allowance for credit losses - unfunded commitments:
Commercial
$
5,062
$
(120)
$
-
$
-
$
-
$
4,942
Construction
1,618
(177)
-
-
-
1,441
Ending balance - unfunded commitments [1]
$
6,680
$
(297)
$
-
$
-
$
-
$
6,383
[1]
Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the
 
Consolidated Statements of Financial Condition.
 
41
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the quarter ended March 31, 2024
Popular U.S.
Provision for
Beginning
credit losses
Ending
(In thousands)
Balance
(benefit)
Charge-offs
Recoveries
Balance
Allowance for credit losses - loans:
Commercial
Commercial multi-family
$
10,126
$
(510)
$
(441)
$
1
$
9,176
Commercial real estate non-owner occupied
11,699
195
-
64
11,958
Commercial real estate owner occupied
16,227
4,019
-
24
20,270
Commercial and industrial
14,779
3,203
(564)
156
17,574
Total Commercial
52,831
6,907
(1,005)
245
58,978
Construction
7,392
633
-
-
8,025
Mortgage
10,774
(925)
-
25
9,874
Consumer
Home equity lines of credit
1,875
(253)
(7)
155
1,770
Personal
16,609
4,991
(5,712)
685
16,573
Other
2
25
(31)
6
2
Total Consumer
18,486
4,763
(5,750)
846
18,345
Total - Loans
$
89,483
$
11,378
$
(6,755)
$
1,116
$
95,222
Allowance for credit losses - unfunded commitments:
Commercial
$
1,851
$
691
$
-
$
-
$
2,542
Construction
8,446
(609)
-
-
7,837
Consumer
29
(24)
-
-
5
Ending balance - unfunded commitments [1]
$
10,326
$
58
$
-
$
-
$
10,384
[1]
Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the
 
Consolidated Statements of Financial Condition.
 
42
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the quarter ended March 31, 2024
Popular Inc.
Provision for
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
$
(558)
$
-
$
(441)
$
2
$
12,743
Commercial real estate non-owner occupied
65,453
(218)
-
-
389
65,624
Commercial real estate owner occupied
56,864
9,166
-
(2,785)
562
63,807
Commercial and industrial
122,356
3,579
-
(7,233)
1,716
120,418
Total Commercial
258,413
11,969
-
(10,459)
2,669
262,592
Construction
12,686
(1,547)
-
-
-
11,139
Mortgage
83,214
(1,244)
17
(765)
5,216
86,438
Leasing
9,708
2,968
-
(4,850)
1,165
8,991
Consumer
Credit cards
80,487
21,640
-
(16,396)
2,438
88,169
Home equity lines of credit
1,978
(150)
-
(204)
248
1,872
Personal
117,790
25,254
-
(30,061)
3,094
116,077
Auto
157,931
13,371
-
(20,167)
6,321
157,456
Other
7,134
125
-
(695)
246
6,810
Total Consumer
365,320
60,240
-
(67,523)
12,347
370,384
Total - Loans
$
729,341
$
72,386
$
17
$
(83,597)
$
21,397
$
739,544
Allowance for credit losses - unfunded commitments:
Commercial
$
6,913
$
571
$
-
$
-
$
-
$
7,484
Construction
10,064
(786)
-
-
-
9,278
Consumer
29
(24)
-
-
-
5
Ending balance - unfunded commitments [1]
$
17,006
$
(239)
$
-
$
-
$
-
$
16,767
[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 quarter ended
 
March 31, 2025 amounted to $
95
 
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 ended March 31,
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.
 
 
43
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan Modifications Made to Borrowers Experiencing Financial Difficulty for the quarter ended March 31, 2025
Interest Rate Reduction
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at March
31, 2025
% of total class
of Financing
Receivable
Amortized Cost
Basis at March
31, 2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at March
31, 2025
% of total class of
Financing
Receivable
Commercial and industrial
$
1,272
0.02
%
$
-
-
%
$
1,272
0.02
%
Consumer:
 
Credit cards
235
0.02
%
-
-
%
235
0.02
%
 
Personal
1,215
0.07
%
-
-
%
1,215
0.07
%
 
Other
5
-
%
-
-
%
5
-
%
Total
$
2,727
0.01
%
$
-
-
%
$
2,727
0.01
%
Term Extension
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at March
31, 2025
% of total class
of Financing
Receivable
Amortized Cost
Basis at March
31, 2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at March
31, 2025
% of total class of
Financing
Receivable
CRE non-owner occupied
$
1,005
0.03
%
$
-
-
%
$
1,005
0.02
%
CRE owner occupied
512
0.04
%
-
-
%
512
0.02
%
Commercial and industrial
9,372
0.18
%
-
-
%
9,372
0.12
%
Mortgage
9,971
0.14
%
-
-
%
9,971
0.12
%
Consumer:
 
Personal
239
0.01
%
2
-
%
241
0.01
%
 
Auto
40
-
%
-
-
%
40
-
%
Total
$
21,139
0.08
%
$
2
-
%
$
21,141
0.06
%
Other-Than-Insignificant Payment Delays
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at March
31, 2025
% of total class
of Financing
Receivable
Amortized Cost
Basis at March
31, 2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at March
31, 2025
% of total class of
Financing
Receivable
CRE non-owner occupied
$
4,454
0.13
%
$
-
-
%
$
4,454
0.08
%
CRE owner occupied
24,686
2.05
%
-
-
%
24,686
0.83
%
Commercial and industrial
96,529
1.84
%
-
-
%
96,529
1.25
%
Total
$
125,669
0.48
%
$
-
-
%
$
125,669
0.34
%
Combination - Term Extension and Interest Rate Reduction
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at March
31, 2025
% of total class
of Financing
Receivable
Amortized Cost
Basis at March
31, 2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at March
31, 2025
% of total class of
Financing
Receivable
Mortgage
$
3,132
0.05
%
$
-
-
%
$
3,132
0.04
%
Consumer:
 
Personal
3,209
0.18
%
43
0.05
%
3,252
0.18
%
Total
$
6,341
0.02
%
$
43
-
%
$
6,384
0.02
%
Combination -
 
Other-Than-Insignificant Payment Delays and Interest Rate Reduction
Puerto Rico
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at March
31, 2025
% of total class
of Financing
Receivable
Amortized Cost
Basis at March
31, 2025
% of total class of
Financing
Receivable
Amortized Cost
Basis at March
31, 2025
% of total class of
Financing
Receivable
Commercial and industrial
$
567
0.01
%
$
-
-
%
$
567
0.01
%
Consumer:
 
Credit cards
2,751
0.23
%
-
-
%
2,751
0.23
%
Total
$
3,318
0.01
%
$
-
-
%
$
3,318
0.01
%
 
 
44
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan Modifications Made to Borrowers Experiencing Financial Difficulty for the quarter ended March 31, 2024
Interest Rate Reduction
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at March 31,
2024
% of total class
of Financing
Receivable
Amortized Cost
Basis at March 31,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at March 31,
2024
% of total class of
Financing
Receivable
Commercial and industrial
$
387
0.01
%
$
-
-
%
$
387
0.01
%
Consumer:
 
Credit cards
129
0.01
%
-
-
%
129
0.01
%
 
Personal
243
0.01
%
-
-
%
243
0.01
%
Total
$
759
-
%
$
-
-
%
$
759
-
%
Term Extension
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at March 31,
2024
% of total class
of Financing
Receivable
Amortized Cost
Basis at March 31,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at March 31,
2024
% of total class of
Financing
Receivable
CRE non-owner occupied
$
36,718
1.23
%
$
-
-
%
$
36,718
0.73
%
CRE owner occupied
16,366
1.15
%
-
-
%
16,366
0.52
%
Commercial and industrial
2,494
0.05
%
-
-
%
2,494
0.04
%
Mortgage
12,979
0.20
%
-
-
%
12,979
0.17
%
Consumer:
 
Personal
199
0.01
%
5
-
%
204
0.01
%
Total
$
68,756
0.28
%
$
5
-
%
$
68,761
0.20
%
Other-Than-Insignificant Payment Delays
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at March 31,
2024
% of total class
of Financing
Receivable
Amortized Cost
Basis at March 31,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at March 31,
2024
% of total class of
Financing
Receivable
CRE owner occupied
$
10,312
0.72
%
$
-
-
%
$
10,312
0.33
%
Commercial and industrial
5,920
0.12
%
-
-
%
5,920
0.08
%
Total
$
16,232
0.07
%
$
-
-
%
$
16,232
0.05
%
Combination - Term Extension and Interest Rate Reduction
BPPR
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at March 31,
2024
% of total class
of Financing
Receivable
Amortized Cost
Basis at March 31,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at March 31,
2024
% of total class of
Financing
Receivable
CRE non-owner occupied
$
891
0.03
%
$
-
-
%
$
891
0.02
%
Commercial and industrial
101
-
%
-
-
%
101
-
%
Mortgage
3,422
0.05
%
38
-
%
3,460
0.04
%
Consumer:
 
Personal
1,056
0.06
%
145
0.10
%
1,201
0.06
%
Total
$
5,470
0.02
%
$
183
-
%
$
5,653
0.02
%
Combination -
 
Other-Than-Insignificant Payment Delays and Interest Rate Reduction
Puerto Rico
Popular U.S.
Popular, Inc.
(Dollars in thousands)
Amortized Cost
Basis at March 31,
2024
% of total class
of Financing
Receivable
Amortized Cost
Basis at March 31,
2024
% of total class of
Financing
Receivable
Amortized Cost
Basis at March 31,
2024
% of total class of
Financing
Receivable
Commercial and industrial
$
16
-
%
$
-
-
%
$
16
-
%
Consumer:
 
Credit cards
315
0.03
%
-
-
%
315
0.03
%
Total
$
331
-
%
$
-
-
%
$
331
-
%
 
45
The following tables describe the financial effect of the modifications made to borrowers experiencing financial
 
difficulties:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the quarter ended March 31, 2025
Interest rate reduction
Loan Type
Financial Effect
Commercial and industrial
Reduced weighted-average contractual interest rate from
25.4
% to
9.6
%.
Mortgage
Reduced weighted-average contractual interest rate from
6.5
% to
5.6
%.
Consumer:
Credit cards
Reduced weighted-average contractual interest rate from
21.3
% to
8.2
%.
Personal
Reduced weighted-average contractual interest rate from
21.6
% to
11.7
%.
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
6
 
months to the life of loans.
CRE Owner occupied
Added a weighted-average of
3
 
months to the life of loans.
Commercial and industrial
Added a weighted-average of
1
 
year to the life of loans.
Mortgage
Added a weighted-average of
15
 
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
3
 
years to the life of loans.
Other than insignificant payment delays
Loan Type
Financial Effect
CRE Non-owner occupied
Added a weighted-average of
10
 
months to the life of loans.
CRE Owner occupied
Added a weighted-average of
9
 
months to the life of loans.
Commercial and industrial
Added a weighted-average of
13
 
months to the life of loans.
Consumer:
Credit cards
Added a weighted-average of
19
 
months to the life of loans.
46
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the quarter ended March 31, 2024
Interest rate reduction
Loan Type
Financial Effect
CRE Non-owner occupied
Reduced weighted-average contractual interest rate from
10.1
% to
8.3
%.
Commercial and industrial
Reduced weighted-average contractual interest rate from
25.5
% to
9.8
%.
Mortgage
Reduced weighted-average contractual interest rate from
5.9
% to
4.5
%.
Consumer:
Credit cards
Reduced weighted-average contractual interest rate from
21.1
% to
6.2
%.
Personal
Reduced weighted-average contractual interest rate from
18.1
% to
9.7
%.
Term extension
Loan Type
Financial Effect
CRE Non-owner occupied
Added a weighted-average of
1
 
year to the life of loans.
CRE Owner occupied
Added a weighted-average of
6
 
months to the life of loans.
Commercial and industrial
Added a weighted-average of
9
 
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
11
 
years to the life of loans.
Other than insignificant payment delay
Loan Type
Financial Effect
CRE Owner occupied
Added a weighted-average of
12
 
months to the life of loans.
Commercial and industrial
Added a weighted-average of
8
 
months to the life of loans.
Consumer:
Credit cards
Added a weighted-average of
23
 
months to the life of loans.
47
The following tables
 
present, by class, the performance of loans that
 
have been modified during the twelve months preceding
 
March
31,
 
2025.
 
The
 
past
 
due
 
90
 
days
 
or
 
more
 
categories
 
includes
 
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
 
March 31, 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
$
-
$
-
$
451
$
451
$
8,571
$
9,022
$
-
$
451
CRE owner occupied
85
113
2,137
2,335
45,631
47,966
257
1,880
Commercial and industrial
290
177
4,856
5,323
167,950
173,273
273
4,583
Mortgage
5,072
2,767
17,345
25,184
37,456
62,640
3,256
14,089
Consumer:
 
Credit cards
699
536
845
2,080
4,690
6,770
503
342
 
Personal
391
129
1,887
2,407
12,584
14,991
136
1,751
 
Auto
-
-
-
-
119
119
-
-
 
Other
-
-
-
-
27
27
-
-
Total
$
6,537
$
3,722
$
27,521
$
37,780
$
277,028
$
314,808
$
4,425
$
23,096
[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.
 
March 31, 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
Commercial multi-family
$
-
$
-
$
-
$
-
$
5,804
5,804
$
-
$
-
CRE owner occupied
-
-
-
-
5,953
5,953
-
-
Commercial and industrial
-
-
-
-
684
684
-
-
Mortgage
-
-
699
699
796
1,495
645
54
Consumer:
-
-
 
Personal
14
-
-
14
221
235
-
-
Total
$
14
$
-
$
699
$
713
$
13,458
$
14,171
$
645
$
54
[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.
48
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Popular Inc.
 
March 31, 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
Commercial multi-family
$
-
$
-
$
-
$
-
$
5,804
$
5,804
$
-
$
-
CRE non-owner occupied
-
-
451
451
8,571
9,022
-
451
CRE owner occupied
85
113
2,137
2,335
51,584
53,919
257
1,880
Commercial and industrial
290
177
4,856
5,323
168,634
173,957
273
4,583
Mortgage
5,072
2,767
18,044
25,883
38,252
64,135
3,901
14,143
Consumer:
 
Credit cards
699
536
845
2,080
4,690
6,770
503
342
 
Personal
405
129
1,887
2,421
12,805
15,226
136
1,751
 
Auto
-
-
-
-
119
119
-
-
 
Other
-
-
-
-
27
27
-
-
Total
$
6,551
$
3,722
$
28,220
$
38,493
$
290,486
$
328,979
$
5,070
$
23,150
[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.
49
The following tables
 
present, by class, the performance of loans that
 
have been modified during the twelve months preceding
 
March
31, 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BPPR
 
March 31, 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
$
-
$
-
$
65
$
65
$
-
$
65
$
-
$
65
CRE non-owner occupied
179
3,278
2,918
6,375
60,491
66,866
-
2,918
CRE owner occupied
811
-
1,969
2,780
189,327
192,107
537
1,432
Commercial and industrial
626
-
16,492
17,118
32,511
49,629
2,774
13,718
Mortgage
5,970
3,954
23,151
33,075
49,225
82,300
3,525
19,626
Consumer:
 
Credit cards
126
31
223
380
1,017
1,397
159
64
 
Personal
42
105
1,058
1,205
3,071
4,276
51
1,007
 
Auto
-
-
13
13
71
84
-
13
 
Other
-
-
-
-
3
3
-
-
Total
$
7,754
$
7,368
$
45,889
$
61,011
$
335,716
$
396,727
$
7,046
$
38,843
[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.
 
March 31, 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
CRE owner occupied
$
-
$
-
$
-
$
-
$
57,550
$
57,550
$
-
$
-
Mortgage
-
-
324
324
3,403
3,727
-
324
Consumer:
 
Personal
-
-
160
160
124
284
-
160
Total
$
-
$
-
$
484
$
484
$
61,077
$
61,561
$
-
$
484
[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.
 
March 31, 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
$
-
$
-
$
65
$
65
$
-
$
65
$
-
$
65
CRE non-owner occupied
179
3,278
2,918
6,375
60,491
66,866
-
2,918
CRE owner occupied
811
-
1,969
2,780
246,877
249,657
537
1,432
Commercial and industrial
626
-
16,492
17,118
32,511
49,629
2,774
13,718
Mortgage
5,970
3,954
23,475
33,399
52,628
86,027
3,525
19,950
Consumer:
 
Credit cards
126
31
223
380
1,017
1,397
159
64
 
Personal
42
105
1,218
1,365
3,195
4,560
51
1,167
 
Auto
-
-
13
13
71
84
-
13
 
Other
-
-
-
-
3
3
-
-
Total
$
7,754
$
7,368
$
46,373
$
61,495
$
396,793
$
458,288
$
7,046
$
39,327
[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.
 
 
50
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 preceding March
 
31, 2025 and
2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortized Cost Basis of Modified Financing Receivables That Subsequently Defaulted During the Quarter Ended March
 
31, 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 owner occupied
$
-
$
89
$
257
$
-
$
-
$
346
Commercial and industrial
81
64
84
-
132
361
Mortgage
-
4,820
-
415
-
5,235
Consumer:
 
Credit cards
178
-
-
-
454
632
 
Personal
85
11
-
67
-
163
Total
$
344
$
4,984
$
341
$
482
$
586
$
6,737
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortized Cost Basis of Modified Financing Receivables That Subsequently Defaulted During the Quarter Ended March
 
31, 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
$
-
$
755
$
-
$
-
$
-
$
755
Commercial and industrial
26
14,345
256
-
16
14,643
Mortgage
-
4,946
-
1,308
-
6,254
Consumer:
 
Credit cards
63
-
-
-
119
182
 
Personal
56
-
-
46
-
102
Total
$
145
$
20,046
$
256
$
1,354
$
135
$
21,936
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
 
March
 
31,
 
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:
 
 
 
 
51
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 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
$
2,059
$
50,123
$
37,039
$
135,452
$
20,856
$
54,261
$
106
$
-
$
299,896
Watch
-
-
-
537
-
989
-
-
1,526
Special Mention
-
-
-
-
-
3,112
-
-
3,112
Substandard
-
-
-
-
-
3,777
-
-
3,777
Total commercial
multi-family
$
2,059
$
50,123
$
37,039
$
135,989
$
20,856
$
62,139
$
106
$
-
$
308,311
Commercial real estate non-owner occupied
Pass
$
95,918
$
417,261
$
300,278
$
830,507
$
543,212
$
850,335
$
7,829
$
-
$
3,045,340
Watch
-
34,970
10,720
628
4,991
73,802
71
-
125,182
Special Mention
-
6,048
40,975
153
-
43,954
-
-
91,130
Substandard
-
-
997
108
26,283
24,762
-
-
52,150
Total commercial
real estate non-
owner occupied
$
95,918
$
458,279
$
352,970
$
831,396
$
574,486
$
992,853
$
7,900
$
-
$
3,313,802
Year-to-Date gross
write-offs
$
-
$
-
$
-
$
-
$
-
$
65
$
-
$
-
$
65
Commercial real estate owner occupied
Pass
$
13,490
$
129,783
$
73,452
$
90,431
$
200,069
$
342,578
$
6,475
$
-
$
856,278
Watch
525
14,746
5,589
42,372
7,120
80,004
-
-
150,356
Special Mention
-
-
327
16,251
19,175
16,237
1,500
-
53,490
Substandard
-
372
1,618
46,441
2,782
77,615
14,371
-
143,199
Doubtful
-
-
-
-
-
89
-
-
89
Total commercial
real estate owner
occupied
$
14,015
$
144,901
$
80,986
$
195,495
$
229,146
$
516,523
$
22,346
$
-
$
1,203,412
Year-to-Date gross
write-offs
$
-
$
-
$
-
$
-
$
-
$
89
$
-
$
-
$
89
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
Pass
$
171,198
$
752,652
$
851,512
$
578,543
$
255,799
$
411,640
$
1,352,618
$
-
$
4,373,962
Watch
1,008
121,151
24,610
9,384
53,835
37,146
68,838
-
315,972
Special Mention
34
20,330
242
295
155,514
26,102
8,843
-
211,360
Substandard
1,990
9,950
40,400
78,933
5,324
27,312
183,348
-
347,257
Doubtful
-
-
-
-
-
7
-
-
7
Total commercial
and industrial
$
174,230
$
904,083
$
916,764
$
667,155
$
470,472
$
502,207
$
1,613,647
$
-
$
5,248,558
Year-to-Date gross
write-offs
$
459
$
105
$
103
$
286
$
9
$
49
$
2,301
$
-
$
3,312
Construction
Pass
$
-
$
72,606
$
64,789
$
17,392
$
26,023
$
10,420
$
18,860
$
-
$
210,090
Watch
-
-
14,123
-
85
-
-
-
14,208
Substandard
-
-
-
-
5,905
-
-
-
5,905
Total construction
$
-
$
72,606
$
78,912
$
17,392
$
32,013
$
10,420
$
18,860
$
-
$
230,203
Mortgage
Pass
$
224,648
$
901,941
$
713,399
$
401,564
$
398,225
$
4,231,445
$
-
$
-
$
6,871,222
Substandard
-
-
2,830
1,154
679
70,057
-
-
74,720
Total mortgage
$
224,648
$
901,941
$
716,229
$
402,718
$
398,904
$
4,301,502
$
-
$
-
$
6,945,942
Year-to-Date gross
write-offs
$
-
 
$
-
 
$
-
 
$
-
 
$
-
 
$
435
$
-
$
-
$
435
52
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 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
$
228,478
$
639,652
$
445,344
$
333,831
$
195,870
$
97,636
$
-
$
-
$
1,940,811
Substandard
1
1,337
2,183
2,901
1,422
868
-
-
8,712
Loss
-
26
65
33
58
-
-
-
182
Total leasing
$
228,479
$
641,015
$
447,592
$
336,765
$
197,350
$
98,504
$
-
$
-
$
1,949,705
Year-to-Date gross
write-offs
$
63
$
1,074
$
1,804
$
1,193
$
390
$
20
$
-
$
-
$
4,544
Consumer:
Credit cards
Pass
$
-
$
-
$
-
$
-
$
-
$
-
$
1,157,272
$
-
$
1,157,272
Substandard
-
-
-
-
-
-
30,487
-
30,487
Loss
-
-
-
-
-
-
19
-
19
Total credit cards
$
-
$
-
$
-
$
-
$
-
$
-
$
1,187,778
$
-
$
1,187,778
Year-to-Date gross
write-offs
$
-
$
-
$
-
$
-
$
-
$
-
$
18,865
$
-
$
18,865
HELOCs
Pass
$
-
$
-
$
-
$
-
$
-
$
-
$
2,039
$
-
$
2,039
Substandard
-
-
-
-
-
-
18
-
18
Total HELOCs
$
-
$
-
$
-
$
-
$
-
$
-
$
2,057
$
-
$
2,057
Year-to-Date gross
write-offs
$
-
$
-
$
-
$
-
$
-
$
-
$
25
$
-
$
25
Personal
Pass
$
230,733
$
638,861
$
426,351
$
222,351
$
86,548
$
106,347
$
-
$
25,909
$
1,737,100
Substandard
-
1,416
4,343
2,601
1,031
7,548
-
1,836
18,775
Total Personal
$
230,733
$
640,277
$
430,694
$
224,952
$
87,579
$
113,895
$
-
$
27,745
$
1,755,875
Year-to-Date gross
write-offs
$
-
$
2,531
$
10,831
$
5,733
$
1,545
$
722
$
-
$
591
$
21,953
Auto
Pass
$
310,339
$
1,208,290
$
879,573
$
612,374
$
446,823
$
312,582
$
-
$
-
$
3,769,981
Substandard
-
9,032
13,014
10,824
8,639
8,681
-
-
50,190
Loss
-
-
39
22
-
10
-
-
71
Total Auto
$
310,339
$
1,217,322
$
892,626
$
623,220
$
455,462
$
321,273
$
-
$
-
$
3,820,242
Year-to-Date gross
write-offs
$
93
$
8,245
$
6,435
$
3,906
$
1,609
$
768
$
-
$
-
$
21,056
Other consumer
Pass
$
6,563
$
27,782
$
27,961
$
18,066
$
9,204
$
5,112
$
61,719
$
-
$
156,407
Substandard
-
-
226
122
-
59
334
-
741
Loss
-
-
-
1,025
550
-
-
-
1,575
Total Other
consumer
$
6,563
$
27,782
$
28,187
$
19,213
$
9,754
$
5,171
$
62,053
$
-
$
158,723
Year-to-Date gross
write-offs
$
-
$
81
$
67
$
73
$
43
$
616
$
-
$
-
$
880
Total BPPR
$
1,286,984
$
5,058,329
$
3,981,999
$
3,454,295
$
2,476,022
$
6,924,487
$
2,914,747
$
27,745
$
26,124,608
 
 
 
53
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 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
$
55,455
$
139,251
$
158,974
$
459,412
$
309,039
$
738,172
$
7,319
$
-
$
1,867,622
Watch
-
-
-
26,478
24,359
120,988
-
-
171,825
Special Mention
-
-
-
7,962
-
-
-
-
7,962
Substandard
-
-
-
2,751
-
16,444
-
-
19,195
Total commercial
multi-family
$
55,455
$
139,251
$
158,974
$
496,603
$
333,398
$
875,604
$
7,319
$
-
$
2,066,604
Commercial real estate non-owner occupied
Pass
$
73,581
$
193,766
$
366,196
$
492,218
$
168,725
$
648,337
$
8,703
$
-
$
1,951,526
Watch
10,300
-
10,931
19,474
13,007
93,431
672
-
147,815
Special Mention
-
-
-
-
-
588
-
-
588
Substandard
-
-
1,945
13,217
2,727
108,983
-
-
126,872
Total commercial real
estate non-owner
occupied
$
83,881
$
193,766
$
379,072
$
524,909
$
184,459
$
851,339
$
9,375
$
-
$
2,226,801
Commercial real estate owner occupied
Pass
$
28,691
$
273,180
$
256,925
$
265,337
$
303,581
$
276,976
$
6,794
$
-
$
1,411,484
Watch
-
13,500
25,497
9,765
10,697
70,516
-
-
129,975
Special Mention
-
-
486
38,318
34,222
38,035
-
-
111,061
Substandard
-
-
-
16,392
2,575
81,660
-
-
100,627
Total commercial real
estate owner
occupied
$
28,691
$
286,680
$
282,908
$
329,812
$
351,075
$
467,187
$
6,794
$
-
$
1,753,147
Year-to-Date gross
write-offs
$
-
$
-
$
-
$
-
$
-
$
12
$
-
$
-
$
12
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
Pass
$
54,125
$
297,533
$
297,245
$
312,157
$
310,980
$
747,294
$
274,473
$
-
$
2,293,807
Watch
-
-
5,345
46,344
27,306
43,679
7,557
-
130,231
Special Mention
-
14
-
5,033
488
223
3,385
-
9,143
Substandard
-
1,656
74
-
178
1,603
8,273
-
11,784
Total commercial
and industrial
$
54,125
$
299,203
$
302,664
$
363,534
$
338,952
$
792,799
$
293,688
$
-
$
2,444,965
Year-to-Date gross
write-offs
$
-
$
531
$
-
$
-
$
599
$
-
$
17
$
-
$
1,147
Construction
Pass
$
60,392
$
316,245
$
578,233
$
70,702
$
-
$
6,031
$
-
$
-
$
1,031,603
Watch
-
1,518
2,852
40,614
-
7,115
25,832
-
77,931
Special Mention
-
-
10,936
-
-
-
-
-
10,936
Substandard
-
-
-
8,306
-
-
-
-
8,306
Total construction
$
60,392
$
317,763
$
592,021
$
119,622
$
-
$
13,146
$
25,832
$
-
$
1,128,776
Mortgage
Pass
$
46,877
$
93,475
$
88,199
$
213,226
$
268,875
$
588,072
$
-
$
-
$
1,298,724
Substandard
-
-
644
106
472
27,865
-
-
29,087
Total mortgage
$
46,877
$
93,475
$
88,843
$
213,332
$
269,347
$
615,937
$
-
$
-
$
1,327,811
54
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 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:
Credit cards
Pass
$
-
$
-
$
-
$
-
$
-
$
-
$
(1)
$
-
$
(1)
Total credit cards
$
-
$
-
$
-
$
-
$
-
$
-
$
(1)
$
-
$
(1)
HELOCs
Pass
$
-
$
-
$
-
$
-
$
-
$
5,648
$
53,850
$
12,123
$
71,621
Substandard
-
-
-
-
-
1,612
14
719
2,345
Loss
-
-
-
-
-
125
-
961
1,086
Total HELOCs
$
-
$
-
$
-
$
-
$
-
$
7,385
$
53,864
$
13,803
$
75,052
Year-to-Date gross
write-offs
$
-
$
-
$
-
$
-
$
-
$
-
$
30
$
-
$
30
Personal
Pass
$
6,667
$
24,890
$
19,947
$
31,888
$
7,054
$
1,668
$
-
$
-
$
92,114
Substandard
-
249
284
285
67
368
-
-
1,253
Loss
-
366
157
187
17
54
-
-
781
Total Personal
$
6,667
$
25,505
$
20,388
$
32,360
$
7,138
$
2,090
$
-
$
-
$
94,148
Year-to-Date gross
write-offs
$
-
$
361
$
455
$
1,556
$
241
$
13
$
-
$
-
$
2,626
Other consumer
Pass
$
-
$
-
$
-
$
-
$
-
$
-
$
12,116
$
-
$
12,116
Substandard
-
-
-
-
-
-
5
-
5
Total Other
consumer
$
-
$
-
$
-
$
-
$
-
$
-
$
12,121
$
-
$
12,121
Year-to-Date gross
write-offs
$
-
$
-
$
-
$
-
$
-
$
-
$
29
$
-
$
29
Total Popular U.S.
$
336,088
$
1,355,643
$
1,824,870
$
2,080,172
$
1,484,369
$
3,625,487
$
408,992
$
13,803
$
11,129,424
 
 
55
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 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
$
57,514
$
189,374
$
196,013
$
594,864
$
329,895
$
792,433
$
7,425
$
-
$
2,167,518
Watch
-
-
-
27,015
24,359
121,977
-
-
173,351
Special Mention
-
-
-
7,962
-
3,112
-
-
11,074
Substandard
-
-
-
2,751
-
20,221
-
-
22,972
Total commercial
multi-family
$
57,514
$
189,374
$
196,013
$
632,592
$
354,254
$
937,743
$
7,425
$
-
$
2,374,915
Commercial real estate non-owner occupied
Pass
$
169,499
$
611,027
$
666,474
$
1,322,725
$
711,937
$
1,498,672
$
16,532
$
-
$
4,996,866
Watch
10,300
34,970
21,651
20,102
17,998
167,233
743
-
272,997
Special Mention
-
6,048
40,975
153
-
44,542
-
-
91,718
Substandard
-
-
2,942
13,325
29,010
133,745
-
-
179,022
Total commercial
real estate non-
owner occupied
$
179,799
$
652,045
$
732,042
$
1,356,305
$
758,945
$
1,844,192
$
17,275
$
-
$
5,540,603
Year-to-Date gross
write-offs
$
-
$
-
$
-
$
-
$
-
$
65
$
-
$
-
$
65
Commercial real estate owner occupied
Pass
$
42,181
$
402,963
$
330,377
$
355,768
$
503,650
$
619,554
$
13,269
$
-
$
2,267,762
Watch
525
28,246
31,086
52,137
17,817
150,520
-
-
280,331
Special Mention
-
-
813
54,569
53,397
54,272
1,500
-
164,551
Substandard
-
372
1,618
62,833
5,357
159,275
14,371
-
243,826
Doubtful
-
-
-
-
-
89
-
-
89
Total commercial
real estate owner
occupied
$
42,706
$
431,581
$
363,894
$
525,307
$
580,221
$
983,710
$
29,140
$
-
$
2,956,559
Year-to-Date gross
write-offs
$
-
$
-
$
-
$
-
$
-
$
101
$
-
$
-
$
101
Commercial and industrial
Pass
$
225,323
$
1,050,185
$
1,148,757
$
890,700
$
566,779
$
1,158,934
$
1,627,091
$
-
$
6,667,769
Watch
1,008
121,151
29,955
55,728
81,141
80,825
76,395
-
446,203
Special Mention
34
20,344
242
5,328
156,002
26,325
12,228
-
220,503
Substandard
1,990
11,606
40,474
78,933
5,502
28,915
191,621
-
359,041
Doubtful
-
-
-
-
-
7
-
-
7
Total commercial
and industrial
$
228,355
$
1,203,286
$
1,219,428
$
1,030,689
$
809,424
$
1,295,006
$
1,907,335
$
-
$
7,693,523
Year-to-Date gross
write-offs
$
459
$
636
$
103
$
286
$
608
$
49
$
2,318
$
-
$
4,459
 
 
56
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 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
$
60,392
$
388,851
$
643,022
$
88,094
$
26,023
$
16,451
$
18,860
$
-
$
1,241,693
Watch
-
1,518
16,975
40,614
85
7,115
25,832
-
92,139
Special Mention
-
-
10,936
-
-
-
-
-
10,936
Substandard
-
-
-
8,306
5,905
-
-
-
14,211
Total construction
$
60,392
$
390,369
$
670,933
$
137,014
$
32,013
$
23,566
$
44,692
$
-
$
1,358,979
Mortgage
Pass
$
271,525
$
995,416
$
801,598
$
614,790
$
667,100
$
4,819,517
$
-
$
-
$
8,169,946
Substandard
-
-
3,474
1,260
1,151
97,922
-
-
103,807
Total mortgage
$
271,525
$
995,416
$
805,072
$
616,050
$
668,251
$
4,917,439
$
-
$
-
$
8,273,753
Year-to-Date gross
write-offs
$
-
$
-
$
-
$
-
$
-
$
435
$
-
$
-
$
435
Leasing
Pass
$
228,478
$
639,652
$
445,344
$
333,831
$
195,870
$
97,636
$
-
$
-
$
1,940,811
Substandard
1
1,337
2,183
2,901
1,422
868
-
-
8,712
Loss
-
26
65
33
58
-
-
-
182
Total leasing
$
228,479
$
641,015
$
447,592
$
336,765
$
197,350
$
98,504
$
-
$
-
$
1,949,705
Year-to-Date gross
write-offs
$
63
$
1,074
$
1,804
$
1,193
$
390
$
20
$
-
$
-
$
4,544
57
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 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
$
-
$
-
$
-
$
-
$
-
$
-
$
1,157,271
$
-
$
1,157,271
Substandard
-
-
-
-
-
-
30,487
-
30,487
Loss
-
-
-
-
-
-
19
-
19
Total credit cards
$
-
$
-
$
-
$
-
$
-
$
-
$
1,187,777
$
-
$
1,187,777
Year-to-Date gross
write-offs
$
-
$
-
$
-
$
-
$
-
$
-
$
18,865
$
-
$
18,865
HELOCs
Pass
$
-
$
-
$
-
$
-
$
-
$
5,648
$
55,889
$
12,123
$
73,660
Substandard
-
-
-
-
-
1,612
32
719
2,363
Loss
-
-
-
-
-
125
-
961
1,086
Total HELOCs
$
-
$
-
$
-
$
-
$
-
$
7,385
$
55,921
$
13,803
$
77,109
Year-to-Date gross
write-offs
$
-
$
-
$
-
$
-
$
-
$
-
$
55
$
-
$
55
Personal
Pass
$
237,400
$
663,751
$
446,298
$
254,239
$
93,602
$
108,015
$
-
$
25,909
$
1,829,214
Substandard
-
1,665
4,627
2,886
1,098
7,916
-
1,836
20,028
Loss
-
366
157
187
17
54
-
-
781
Total Personal
$
237,400
$
665,782
$
451,082
$
257,312
$
94,717
$
115,985
$
-
$
27,745
$
1,850,023
Year-to-Date gross
write-offs
$
-
$
2,892
$
11,286
$
7,289
$
1,786
$
735
$
-
$
591
$
24,579
Auto
Pass
$
310,339
$
1,208,290
$
879,573
$
612,374
$
446,823
$
312,582
$
-
$
-
$
3,769,981
Substandard
-
9,032
13,014
10,824
8,639
8,681
-
-
50,190
Loss
-
-
39
22
-
10
-
-
71
Total Auto
$
310,339
$
1,217,322
$
892,626
$
623,220
$
455,462
$
321,273
$
-
$
-
$
3,820,242
Year-to-Date gross
write-offs
$
93
$
8,245
$
6,435
$
3,906
$
1,609
$
768
$
-
$
-
$
21,056
Other consumer
Pass
$
6,563
$
27,782
$
27,961
$
18,066
$
9,204
$
5,112
$
73,835
$
-
$
168,523
Substandard
-
-
226
122
-
59
339
-
746
Loss
-
-
-
1,025
550
-
-
-
1,575
Total Other
consumer
$
6,563
$
27,782
$
28,187
$
19,213
$
9,754
$
5,171
$
74,174
$
-
$
170,844
Year-to-Date gross
write-offs
$
-
$
81
$
67
$
73
$
43
$
616
$
29
$
-
$
909
Total Popular Inc.
$
1,623,072
$
6,413,972
$
5,806,869
$
5,534,467
$
3,960,391
$
10,549,974
$
3,323,739
$
41,548
$
37,254,032
 
 
 
58
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
59
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
60
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
$
-
$
-
$
154
61
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
$
-
$
-
$
18
62
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
63
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
64
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
65
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
66
Note 9 – Mortgage banking activities
Income
 
from
 
mortgage
 
banking
 
activities
 
includes
 
mortgage
 
servicing
 
fees
 
earned
 
in
 
connection
 
with
 
administering
 
residential
mortgage
 
loans
 
and
 
valuation
 
adjustments
 
on
 
mortgage
 
servicing
 
rights.
 
It
 
also
 
includes
 
gain
 
on
 
sales
 
and
 
securitizations
 
of
residential mortgage
 
loans, losses
 
on repurchased
 
loans, including
 
interest advances,
 
and trading
 
gains and
 
losses on
 
derivative
contracts
 
used
 
to
 
hedge
 
the
 
Corporation’s
 
securitization
 
activities.
 
In
 
addition,
 
fair
 
value
 
valuation
 
adjustments
 
to
 
residential
mortgage loans held for sale, if any, are recorded as
 
part of the mortgage banking activities.
The following table presents the components of mortgage banking activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended March 31,
(In thousands)
2025
2024
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees
$
7,168
$
7,751
Mortgage servicing rights fair value adjustments
(3,570)
(3,439)
Total mortgage servicing fees, net of fair value adjustments
3,598
4,312
Net gain on sale of loans, including valuation on loans held-for-sale
193
74
Trading account (loss) profit:
Unrealized (loss) gains on outstanding derivative positions
(87)
101
Realized gains on closed derivative positions
1
3
Total trading account (loss) profit
(86)
104
Losses on repurchased loans, including interest advances
(16)
(130)
Total mortgage banking activities
$
3,689
$
4,360
 
 
67
Note 10 – Transfers of financial assets and mortgage servicing
 
assets
The
 
Corporation
 
typically
 
transfers
 
conforming
 
residential
 
mortgage
 
loans
 
in
 
conjunction
 
with
 
GNMA,
 
FNMA
 
and
 
FHLMC
securitization transactions
 
whereby the
 
loans are
 
exchanged for
 
cash or
 
securities and
 
servicing rights.
 
As seller,
 
the Corporation
has made
 
certain representations
 
and warranties
 
with respect
 
to the
 
originally transferred
 
loans and,
 
in the
 
past, has
 
sold certain
loans
 
with
 
credit
 
recourse
 
to
 
a
 
government-sponsored
 
entity,
 
namely
 
FNMA.
 
Refer
 
to
 
Note
 
19
 
to
 
the
 
Consolidated
 
Financial
Statements for a description of such arrangements.
 
No
 
liabilities were incurred as a result of
 
these securitizations during the quarters ended March
 
31, 2025 and 2024 because they did
not contain any credit recourse arrangements.
The
 
following
 
tables
 
present
 
the
 
initial
 
fair
 
value
 
of
 
the
 
assets
 
obtained
 
as
 
proceeds
 
from
 
residential
 
mortgage
 
loans
 
securitized
during the quarters ended March 31, 2025 and 2024:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds Obtained During the Quarter Ended March 31, 2025
(In thousands)
Level 1
Level 2
Level 3
Initial Fair Value
Assets
Trading account debt securities:
Mortgage-backed securities - FNMA
$
-
$
1,718
$
-
$
1,718
Total trading account debt securities
$
-
$
1,718
$
-
$
1,718
Mortgage servicing rights
$
-
$
-
$
43
$
43
Total
 
$
-
$
1,718
$
43
$
1,761
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds Obtained During the Quarter Ended March 31, 2024
(In thousands)
Level 1
Level 2
Level 3
Initial Fair Value
Assets
Trading account debt securities:
Mortgage-backed securities - GNMA
$
-
$
1,100
$
-
$
1,100
Mortgage-backed securities - FNMA
-
1,105
-
1,105
Total trading account debt securities
$
-
$
2,205
$
-
$
2,205
Mortgage servicing rights
$
-
$
-
$
45
$
45
Total
 
$
-
$
2,205
$
45
$
2,250
During the quarter
 
ended March 31,
 
2025, the Corporation
 
retained servicing rights
 
on whole loan
 
sales involving approximately
 
$
7
million in principal
 
balance outstanding
 
(March 31, 2024
 
- $
11
 
million), with net
 
realized gains
 
of approximately
 
$
0.1
 
million (March
31, 2024 -
 
gains of $
0.2
 
million). All
 
loan sales
 
performed during
 
the quarters ended
 
March 31,
 
2025 and 2024
 
were without
 
credit
recourse agreements.
 
The Corporation recognizes as
 
assets the rights to service
 
loans for others, whether these
 
rights are purchased or result
 
from asset
transfers such as sales and securitizations. These mortgage servicing rights (“MSRs”) are measured at fair value.
The
 
Corporation
 
uses
 
a
 
discounted
 
cash
 
flow
 
model
 
to
 
estimate
 
the
 
fair
 
value
 
of
 
MSRs.
 
The
 
discounted
 
cash
 
flow
 
model
incorporates
 
assumptions
 
that
 
market
 
participants
 
would
 
use
 
in
 
estimating
 
future
 
net
 
servicing
 
income,
 
including
 
estimates
 
of
prepayment speeds, discount rate, cost
 
to service, escrow account earnings,
 
contractual servicing fee income,
 
prepayment and late
fees, among other considerations. Prepayment speeds are adjusted for the loans’ characteristics and portfolio behavior.
 
The following
 
table presents
 
the changes
 
in MSRs
 
measured using
 
the fair
 
value method
 
for the
 
quarters ended
 
March 31,
 
2025
and 2024.
 
68
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential MSRs
(In thousands)
March 31, 2025
March 31, 2024
Fair value at beginning of period
$
108,103
$
118,109
Additions
210
294
Changes due to payments on loans
[1]
(2,114)
(2,100)
Reduction due to loan repurchases
(131)
(137)
Changes in fair value due to changes in valuation model inputs or assumptions
(1,325)
(1,202)
Fair value at end of period
[2]
$
104,743
$
114,964
[1] Represents changes due to collection / realization of expected cash flows over time.
[2] At March 31, 2025, PB had MSRs amounting to $
1.9
 
million (March 31, 2024 - $
2.0
 
million).
Residential mortgage loans serviced for others were $
8.8
 
billion at March 31, 2025 (December 31, 2024 - $
9.0
 
billion).
 
Net mortgage servicing fees, a
 
component of mortgage banking activities
 
in the Consolidated Statements of
 
Operations, include the
changes from period to period in the fair
 
value of the MSRs, including changes due
 
to collection / realization of expected cash flows.
The banking
 
subsidiaries receive
 
servicing fees
 
based on
 
a percentage
 
of the
 
outstanding loan
 
balance. These
 
servicing fees
 
are
credited to
 
income when
 
they are
 
collected. As
 
of March 31,
 
2025, weighted
 
average mortgage
 
servicing fees
 
were
0.32
% (March
31, 2024 -
0.32
%). Under these servicing agreements, the banking subsidiaries do not generally earn significant prepayment penalty
fees on the underlying loans serviced.
The section
 
below includes
 
information on
 
assumptions used
 
in the
 
valuation model
 
of the
 
MSRs, originated
 
and purchased.
Key
economic assumptions
 
used in
 
measuring the
 
servicing rights
 
derived from
 
loans securitized
 
or sold
 
by the
 
Corporation during
 
the
quarters ended March 31, 2025 and 2024 were as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
March 31, 2025
March 31, 2024
 
BPPR
PB
BPPR
PB
Prepayment speed
7.2
%
6.3
%
6.1
%
6.0
%
Weighted average life (in years)
9.6
8.8
9.6
8.8
Discount rate (annual rate)
9.8
%
12.9
%
9.5
%
12.5
%
Key
 
economic
 
assumptions
 
used
 
to
 
estimate
 
the
 
fair
 
value
 
of
 
MSRs
 
derived
 
from
 
sales
 
and
 
securitizations
 
of
 
mortgage
 
loans
performed
 
by
 
the
 
banking
 
subsidiaries
 
and
 
servicing
 
rights
 
purchased
 
from
 
other
 
financial
 
institutions,
 
and
 
the
 
sensitivity
 
to
immediate changes in those assumptions, were as follows as of the end of the periods reported:
69
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Originated MSRs
Purchased MSRs
March 31,
December 31,
March 31,
December 31,
 
(In thousands)
2025
2024
2025
2024
Fair value of servicing rights
$
34,625
$
34,019
$
70,118
$
74,084
Weighted average life (in years)
6.4
6.4
6.6
6.6
Weighted average prepayment speed (annual rate)
5.7
%
5.8
%
6.9
%
6.9
%
Impact on fair value of 10% adverse change
$
(699)
$
(667)
$
(1,415)
$
(1,448)
Impact on fair value of 20% adverse change
$
(1,372)
$
(1,308)
$
(2,775)
$
(2,840)
Weighted average discount rate (annual rate)
11.3
%
11.4
%
10.9
%
10.8
%
Impact on fair value of 10% adverse change
$
(1,279)
$
(1,267)
$
(2,527)
$
(2,689)
Impact on fair value of 20% adverse change
$
(2,476)
$
(2,451)
$
(4,897)
$
(5,211)
The sensitivity analyses presented in the table above for servicing rights are hypothetical and should be used with caution. As the
figures indicate, changes in fair value based on a 10 and 20 percent variation in assumptions generally cannot be extrapolated
because the relationship of the change in assumption to the change in fair value may not be linear. Also, in the sensitivity tables
included herein, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without
changing any other assumption. In reality, changes in one factor may result in changes in another (for example, increases in market
interest rates may result in lower prepayments and increased credit losses), which might magnify or counteract the sensitivities.
At
 
March
 
31,
 
2025,
 
the
 
Corporation
 
serviced
 
$
477
 
million
 
in
 
residential
 
mortgage
 
loans
 
with
 
credit
 
recourse
 
to
 
the
 
Corporation
(December 31,
 
2024 -
 
$
495
 
million). Also
 
refer to
 
Note 19
 
to the
 
Consolidated Financial
 
Statements for
 
information on
 
changes in
the Corporation’s liability of estimated losses related to loans serviced with credit recourse.
During the quarter ended
 
March 31, 2025, the
 
Corporation repurchased approximately
 
$
10
 
million (March 31, 2024
 
- $
10
 
million) of
mortgage
 
loans
 
from
 
its
 
GNMA
 
servicing
 
portfolio.
 
The
 
determination
 
to
 
repurchase
 
these
 
loans
 
was
 
based
 
on
 
the
 
economic
benefits of
 
the transaction,
 
which results
 
in a
 
reduction of
 
the servicing
 
costs for
 
these severely
 
delinquent loans,
 
mainly related
 
to
principal and interest advances.
 
The risk associated with
 
the loans is reduced
 
due to their guaranteed
 
nature. The Corporation may
place these loans under modification programs
 
offered by FHA, VA
 
or United States Department of Agriculture (USDA)
 
or other loss
mitigation programs offered by the
 
Corporation, and once brought back
 
to current status, these may be
 
either retained in portfolio or
re-sold in the secondary market.
 
 
 
70
Note 11 – Other real estate owned
The following tables
 
present the activity
 
related to Other
 
Real Estate Owned
 
(“OREO”), for the
 
quarters
 
ended March 31,
 
2025 and
2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the quarter ended March 31, 2025
OREO
OREO
(In thousands)
Commercial/Construction
Mortgage
Total
Balance at beginning of period
$
8,424
$
48,844
$
57,268
Write-downs in value
(29)
(1,199)
(1,228)
Additions
257
8,789
9,046
Sales
(1,541)
(11,229)
(12,770)
Other adjustments
-
(202)
(202)
Ending balance
$
7,111
$
45,003
$
52,114
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the quarter ended March 31, 2024
OREO
OREO
(In thousands)
Commercial/Construction
Mortgage
Total
Balance at beginning of period
$
11,189
$
69,227
$
80,416
Write-downs in value
(25)
(284)
(309)
Additions
5,344
12,636
17,980
Sales
(546)
(16,934)
(17,480)
Other adjustments
-
(65)
(65)
Ending balance
$
15,962
$
64,580
$
80,542
 
 
71
Note 12 − Other assets
The caption of other assets in the consolidated statements of financial condition consists of the following major categories:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
March 31, 2025
December 31, 2024
Net deferred tax assets (net of valuation allowance)
$
887,454
$
926,329
Investments under the equity method
250,489
251,537
Prepaid taxes
34,808
42,909
Other prepaid expenses
24,537
28,376
Capitalized software costs
159,071
136,442
Derivative assets
20,828
25,975
Trades receivable from brokers and counterparties
1,530
588
Receivables from investments maturities
-
14,600
Principal, interest and escrow servicing advances
40,227
43,793
Guaranteed mortgage loan claims receivable
15,709
17,226
Operating ROU assets (Note 27)
93,922
93,389
Finance ROU assets (Note 27)
18,432
19,174
Assets for pension benefit
33,868
33,233
Others
161,665
164,188
Total other assets
$
1,742,540
$
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
March 31, 2025
Software development costs
$
81,408
$
26,453
$
54,955
Software license costs
55,536
26,480
29,056
Cloud computing arrangements
82,714
7,654
75,060
Total Capitalized software costs [1] [2]
$
219,658
$
60,587
$
159,071
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 excludes 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:
72
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended March 31,
(In thousands)
2025
2024
Software development and license costs
$
21,728
$
17,701
Cloud computing arrangements
1,366
872
Total amortization expense
$
23,094
$
18,573
 
 
 
73
Note 13 – Goodwill and other intangible assets
 
Goodwill
There were
no
 
changes in the carrying amount of goodwill for the quarters ended March 31, 2025 and 2024.
 
The following tables present the gross amount of goodwill and accumulated impairment losses by reportable segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2025
Balance at
Balance at
March 31,
Accumulated
March 31,
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
196,411
368,045
Total Popular,
 
Inc.
 
$
1,003,166
$
200,212
$
802,954
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
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
March 31, 2025
Core deposits
$
12,810
$
12,810
$
-
Other customer relationships
14,286
8,818
5,468
Total other intangible assets
$
27,096
$
21,628
$
5,468
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
 
March
 
31,
 
2025,
 
the
 
Corporation
 
recognized
 
$
0.6
 
million
 
in
 
amortization
 
expense
 
related
 
to
 
intangible
assets with definite useful lives (March 31, 2024 - $
0.8
 
million).
 
The following
 
table presents
 
the estimated
 
amortization of
 
the intangible
 
assets with
 
definite useful
 
lives for
 
each of
 
the following
periods:
74
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Remaining 2025
$
1,152
Year 2026
1,440
Year 2027
959
Year 2028
959
Year 2029
958
 
75
Note 14 – Deposits
Total deposits
 
as of the end of the periods presented consisted of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
March 31, 2025
December 31, 2024
Savings accounts
$
14,637,131
$
14,224,271
NOW, money market and other interest bearing demand deposits
26,853,186
26,507,637
Total savings, NOW,
 
money market and other interest bearing demand deposits
41,490,317
40,731,908
Certificates of deposit:
Under $250,000
5,401,219
5,383,331
$250,000 and over
3,766,918
3,629,551
 
Total certificates of deposit
9,168,137
9,012,882
Total interest bearing deposits
$
50,658,454
$
49,744,790
Non- interest bearing deposits
$
15,160,801
$
15,139,555
Total deposits
$
65,819,255
$
64,884,345
A summary of certificates of deposits by maturity at March 31, 2025 follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
2025
$
5,427,988
2026
1,680,639
2027
711,573
2028
623,776
2029
460,676
2030 and thereafter
263,485
Total certificates of deposit
$
9,168,137
At March 31, 2025, the Corporation had brokered deposits amounting to $
1.6
 
billion (December 31, 2024 - $
1.6
 
billion).
The aggregate amount of overdrafts in demand deposit accounts that were
 
reclassified to loans was $
24.9
 
million at March 31, 2025
(December 31, 2024 - $
10.4
 
million).
At
 
March
 
31,
 
2025,
 
Puerto
 
Rico
 
government
 
deposits
 
amounted
 
to
 
$
19.6
 
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.
 
76
Note 15 – Borrowings
Assets sold under agreements to repurchase
Assets sold under agreements to repurchase amounted to $
57
 
million at March 31, 2025 and $
55
 
million at December 31, 2024.
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2025
December 31, 2024
Repurchase
Repurchase
(In thousands)
 
liability
 
liability
U.S. Treasury securities
Within 30 days
$
27,378
$
22,591
After 30 to 90 days
18,827
13,813
Total U.S. Treasury securities
46,205
36,404
Mortgage-backed securities
 
Within 30 days
4,609
4,924
 
After 30 to 90 days
6,454
13,505
Total mortgage-backed securities
11,063
18,429
Total
$
57,268
$
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 March 31, 2025
 
and December 31, 2024,
 
other short-term borrowings consisted
 
of $
200
 
million and $
225
 
million, respectively,
 
in
FHLB Advances.
 
 
 
77
Notes Payable
The following table presents the composition of notes payable at March 31, 2025 and December 31, 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
March 31, 2025
December 31, 2024
Advances with the FHLB with maturities ranging from
2025
 
through
2029
 
paying interest at
monthly
fixed rates ranging from
0.55
% to
4.17
%
$
239,199
$
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 $
4,430
395,570
395,198
Junior subordinated deferrable interest debentures (related to trust preferred securities) maturing on
2034
 
with fixed interest rates ranging from
6.125
% to
6.56
4%, net of debt issuance costs of $
254
198,380
198,373
Total notes payable
$
833,149
$
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 March 31, 2025 is included in the table below.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets sold under
 
Short-term
(In thousands)
agreements to
repurchase
borrowings
Notes payable
Total
2025
$
57,268
$
200,000
$
80,692
$
337,960
2026
-
-
74,500
74,500
2028
-
-
439,920
439,920
2029
-
-
39,657
39,657
Later years
-
-
198,380
198,380
Total borrowings
$
57,268
$
200,000
$
833,149
$
1,090,417
At March
 
31, 2025
 
and December
 
31, 2024,
 
the Corporation
 
had FHLB
 
borrowing facilities
 
whereby the
 
Corporation could
 
borrow
up
 
to
 
$
4.5
 
billion
 
and
 
$
4.7
 
billion,
 
respectively,
 
of
 
which
 
$
0.4
 
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 March
 
31, 2025, the
 
Corporation had borrowing
 
facilities at the
 
discount window of
 
the Federal Reserve
 
Bank of New
 
York
amounting to
 
$
7.2
 
billion (December
 
31, 2024
 
- $
7.0
 
billion), which
 
remained unused
 
at March
 
31, 2025
 
and December
 
31, 2024.
 
The facilities are a collateralized source of credit that is highly reliable even under difficult market conditions.
 
78
Note 16 − Other liabilities
The caption of other liabilities in the consolidated statements of financial condition consists of the following major categories:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
March 31, 2025
December 31, 2024
Accrued expenses
$
289,750
$
334,145
Accrued interest payable
53,353
60,723
Accounts payable
90,997
91,218
Dividends payable
48,409
49,546
Trades payable
495,397
495,139
Liability for GNMA loans sold with an option to repurchase
7,734
9,108
Reserves for loan indemnifications
2,563
2,779
Reserve for operational losses
26,851
29,465
Operating lease liabilities (Note 27)
103,628
103,198
Finance lease liabilities (Note 27)
22,236
23,141
Pension benefit obligation
5,750
5,816
Postretirement benefit obligation
98,678
99,172
Others
83,893
68,396
Total other liabilities
$
1,329,239
$
1,371,846
79
Note 17 – Stockholders’ equity
 
As of March
 
31, 2025, stockholders’
 
equity totaled $
5.8
 
billion. During the
 
quarter ended March
 
31, 2025, the
 
Corporation declared
cash dividends of
 
$
0.70
 
(2024 - $
0.62
) per common
 
share amounting to
 
$
48.4
 
million (2024 -
 
$
44.8
 
million). The quarterly
 
dividend
of $
0.70
 
per share declared
 
to stockholders of
 
record as of the
 
close of business
 
on
March 18, 2025
 
was paid on
April 1, 2025
. On
May 8, 2025, the Corporation’s Board of Directors approved a quarterly cash dividend of $
0.70
 
per share on its outstanding common
stock, payable on
July 1, 2025
 
to stockholders of record at the close of business on
May 29, 2025
.
During
 
the
 
quarter
 
ended
 
March
 
31,
 
2025,
 
the
 
Corporation
 
completed
 
the
 
repurchase
 
of
1,270,569
 
shares
 
of
 
common
 
stock
 
for
$
122.3
 
million at an average
 
price of $
96.24
 
per share. As of March
 
31, 2025, a total of
 
$
339.6
 
million has been repurchased
 
under
the previously announced share repurchase authorization of up to $
500
 
million.
80
Note 18 – Other comprehensive income (loss)
The
 
following
 
table
 
presents
 
changes
 
in
 
accumulated
 
other
 
comprehensive
 
income
 
(loss)
 
by
 
component
 
for
 
the
 
quarters
 
ended
March 31, 2025 and, 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in Accumulated Other Comprehensive Income (Loss) by Component [1]
Quarters ended March 31,
(In thousands)
2025
2024
Foreign currency translation
Beginning Balance
$
(71,365)
$
(64,528)
Other comprehensive loss
(6,646)
(4,020)
Net change
(6,646)
(4,020)
Ending balance
$
(78,011)
$
(68,548)
Adjustment of pension and
postretirement benefit plans
Beginning Balance
$
(94,692)
$
(117,894)
Other comprehensive loss before reclassifications
-
-
Amounts reclassified from accumulated other comprehensive loss for
amortization of net losses
1,421
2,262
Net change
1,421
2,262
Ending balance
$
(93,271)
$
(115,632)
Unrealized net holding losses on
debt securities
Beginning Balance
$
(1,495,183)
$
(1,713,109)
Other comprehensive income (loss) before reclassifications
140,229
(71,104)
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
36,249
35,207
Net change
176,478
(35,897)
Ending balance
$
(1,318,705)
$
(1,749,006)
Total
 
$
(1,489,987)
$
(1,933,186)
[1] All amounts presented are net of tax.
 
81
The following
 
table presents
 
the amounts
 
reclassified out
 
of each
 
component of
 
accumulated other
 
comprehensive loss
 
during the
quarters ended March 31, 2025 and 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reclassifications Out of Accumulated Other Comprehensive Loss
Affected Line Item in the
 
Quarters ended March 31,
(In thousands)
Consolidated Statements of Operations
2025
2024
Adjustment of pension and postretirement benefit plans
Amortization of net losses
Other operating expenses
$
(2,273)
$
(3,618)
Total before tax
(2,273)
(3,618)
Income tax benefit
852
1,356
Total net of tax
$
(1,421)
$
(2,262)
Unrealized holding losses on debts securities
Amortization of unrealized net losses of debt
securities transferred to held-to-maturity
Investment securities
$
(45,311)
$
(44,009)
Total before tax
(45,311)
(44,009)
Income tax benefit
9,062
8,802
Total net of tax
$
(36,249)
$
(35,207)
Unrealized net gains on cash flow hedges
Total reclassification adjustments, net of tax
$
(37,670)
$
(37,469)
 
82
Note 19 – 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 March 31,
 
2025, the Corporation
 
serviced $
477
 
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
 
incurred
 
loss.
 
The maximum
 
potential
 
amount
 
of future
 
payments
 
that the
 
Corporation
would be required
 
to make
 
under the recourse
 
arrangements in
 
the event
 
of nonperformance by
 
the borrowers
 
is equivalent
 
to the
total outstanding balance
 
of the residential
 
mortgage loans serviced
 
with recourse and
 
the interest, if
 
applicable. During the
 
quarter
ended
 
March
 
31,
 
2025,
 
the
 
Corporation
 
repurchased
 
approximately
 
$
0.3
 
million
 
of
 
unpaid
 
principal
 
balance
 
in
 
mortgage
 
loans
subject
 
to
 
the
 
credit
 
recourse
 
provisions
 
(March
 
31,
 
2024
 
-
 
$
0.6
 
million).
 
In
 
the
 
event
 
of
 
nonperformance
 
by
 
the
 
borrower,
 
the
Corporation
 
has
 
rights
 
to
 
the
 
underlying
 
collateral
 
securing
 
the
 
mortgage
 
loan.
 
The
 
Corporation
 
suffers
 
ultimate
 
losses
 
on
 
these
loans when the proceeds from a foreclosure
 
sale of the property underlying a
 
defaulted mortgage loan are less than
 
the outstanding
principal balance of the loan
 
plus any uncollected interest
 
advanced and the costs
 
of holding and disposing the
 
related property.
 
At
March 31,
 
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).
The following table shows the changes in the
 
Corporation’s liability of estimated losses related to
 
loans serviced with credit recourse
provisions during the quarters ended March 31, 2025 and 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
March 31,
(In thousands)
2025
2024
Balance as of beginning of period
$
2,611
$
4,211
Provision (benefit) for recourse liability
(170)
244
Net charge-offs
(44)
(102)
Balance as of end of period
$
2,397
$
4,353
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 March
 
31, 2025,
 
the
Corporation serviced $
8.8
 
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 March
 
31,
2025,
 
the
 
outstanding
 
balance
 
of
 
funds
 
advanced
 
by
 
the
 
Corporation
 
under
 
such
 
mortgage
 
loan
 
servicing
 
agreements
 
was
approximately
 
$
40
 
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.
83
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
 
March
 
31,
 
2025
 
and
 
December
 
31,
 
2024,
 
respectively.
 
In
addition, at both March
 
31, 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
 
18
 
to
 
the
 
Consolidated
 
Financial
 
Statements
 
in
 
the
 
2024
 
Form
 
10-K
 
for
 
further
information on the trust preferred securities.
84
Note 20 – 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)
March 31, 2025
December 31, 2024
Commitments to extend credit:
Credit card lines
$
6,141,536
$
5,599,823
Commercial lines of credit
4,129,068
3,971,331
Construction lines of credit
1,066,986
1,131,824
Other consumer unused credit commitments
 
262,988
260,121
Commercial letters of credit
7,553
5,002
Standby letters of credit
117,379
144,845
Commitments to originate or fund mortgage loans
40,308
29,604
At March
 
31, 2025
 
and December
 
31, 2024,
 
the
 
Corporation
 
maintained
 
a reserve
 
of approximately
 
$
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 March
 
31, 2025
 
and December
 
31, 2024,
 
the Corporation
 
also maintained
 
other non-credit
 
commitments for
 
approximately $
2
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 32 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
 
March
 
31,
 
2025,
 
the
 
Corporation’s
 
direct
 
exposure
 
to
 
the
 
Puerto
 
Rico
 
government
 
and
 
its
 
instrumentalities
 
and
 
municipalities
totaled
 
$
362
 
million,
 
all
 
of
 
which
 
were
 
outstanding
 
($
336
 
million
 
and
 
$
336
 
million
 
at
 
December
 
31,
 
2024).
 
Of
 
the
 
amount
outstanding,
 
$
351
 
million
 
consists
 
of
 
loans
 
and
 
$
11
 
million
 
are
 
securities
 
($
323
 
million
 
and
 
$
13
 
million
 
at
 
December
 
31,
 
2024).
Substantially all
 
of the
 
amount outstanding
 
at March
 
31, 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
 
March 31, 2025,
81
% of the Corporation’s
 
exposure to municipal loans
 
and securities was concentrated
in the municipalities of San Juan, Guaynabo, Carolina and Caguas.
 
 
85
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 March 31, 2025
:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Investment
Portfolio
Loans
Total Outstanding
Total Exposure
Central Government
Within 1 year
$
45
$
-
$
45
$
45
Total Central Government
45
-
45
45
Municipalities
Within 1 year
2,540
12,764
15,304
15,304
After 1 to 5 years
7,885
147,033
154,918
154,918
After 5 to 10 years
655
146,732
147,387
147,387
After 10 years
-
44,582
44,582
44,582
Total Municipalities
11,080
351,111
362,191
362,191
Total Direct Government Exposure
$
11,125
$
351,111
$
362,236
$
362,236
 
 
 
 
 
 
 
 
 
 
 
 
 
In addition, at
 
March 31, 2025,
 
the Corporation had
 
$
216
 
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
$
172
 
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
 
March 31, 2025,
 
$
37
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,
 
$
2.2
 
billion
 
of
 
residential
 
mortgages
 
and
 
$
86.5
 
million
 
commercial
 
loans
 
were
 
insured
 
or
 
guaranteed
 
by
 
the
 
U.S.
Government or
 
its agencies
 
at March
 
31, 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
 
March
 
31,
 
2025,
 
the
 
Corporation
 
had
 
operations
 
in
 
the
 
United
 
States
 
Virgin
 
Islands
 
(the
 
“USVI”)
 
and
 
had
 
approximately
 
$
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.
 
At
 
March
 
31,
 
2025,
 
the
 
Corporation
 
had
 
operations
 
in
 
the
 
British
 
Virgin
 
Islands
 
(“BVI”)
 
and
 
it
 
had
 
a
 
loan
 
portfolio
 
amounting
 
to
approximately
 
$
196
 
million
 
comprised
 
of
 
various
 
retail
 
and
 
commercial
 
clients,
 
compared
 
to
 
a
 
loan
 
portfolio
 
of
 
$
196
 
million
 
at
December 31, 2024. At March 31, 2025, the Corporation had no significant exposure to a single borrower in the BVI.
FDIC Special Assessment
 
86
On
 
November
 
16,
 
2023,
 
the
 
Federal
 
Deposit
 
Insurance
 
Corporation
 
(“FDIC”)
 
approved
 
a
 
final
 
rule
 
that
 
imposes
 
a
 
special
assessment (the
 
“FDIC Special
 
Assessment”) to
 
recover the
 
losses to
 
the deposit insurance
 
fund resulting
 
from the FDIC’s
 
use, in
March 2023,
 
of the
 
systemic risk
 
exception to
 
the least-cost
 
resolution test
 
under the
 
Federal Deposit
 
Insurance Act
 
in connection
with the
 
receiverships of
 
several failed
 
banks. In
 
connection with
 
this assessment,
 
the Corporation
 
recorded an
 
expense of
 
$
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
 
which
 
increased
 
from
 
$
16.3
 
billion,
 
when
 
approved,
 
to
 
$
20.4
 
billion
 
during
 
the
 
quarter.
 
The
 
special
assessment amount and
 
collection period may
 
change as the
 
estimated loss is
 
periodically adjusted or
 
if the total
 
amount collected
varies.
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,
 
lender’s liability,
 
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 $
6.3
 
million as of
March 31,
 
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.
 
87
Note 21 – 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
 
March
 
31,
 
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
 
23
 
to
 
the
 
Consolidated
 
Financial
 
Statements
 
for
 
additional
information on the debt
 
securities outstanding at March
 
31, 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 March 31, 2025 and December 31, 2024.
 
88
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
March 31, 2025
December 31, 2024
Assets
Servicing assets:
Mortgage servicing rights
$
81,620
$
84,356
Total servicing assets
 
$
81,620
$
84,356
Other assets:
Servicing advances
$
6,188
$
6,112
Total other assets
$
6,188
$
6,112
Total assets
$
87,808
$
90,468
Maximum exposure to loss
$
87,808
$
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 $
6.4
 
billion at March 31, 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 March 31,
 
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 March
 
31, 2025.
89
Note 22 – Related party transactions
 
Centro Financiero BHD, S.A.
At March 31, 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 quarter ended March 31,
 
2025, the Corporation recorded ($
1.0
)
million in equity
 
pickup (March 31,
 
2024 - $
7.3
 
million), including the
 
net impact of
 
$
8.7
 
million from net
 
earnings (March 31,
 
2024 -
$
11.4
 
million), offset
 
by ($
9.7
) million
 
recorded through
 
Other Comprehensive
 
Income (March
 
31, 2024
 
- ($
4.1
) million)
 
related to
foreign
 
currency
 
translation
 
adjustments
 
and
 
changes
 
in
 
the
 
fair
 
value
 
of
 
available
 
for
 
sale
 
securities.
 
At
 
March
 
31,
 
2025,
 
the
investment
 
in
 
BHD
 
had
 
a
 
carrying
 
amount
 
of
 
$
238.5
 
million
 
(December
 
31,
 
2024
 
-
 
$
239.5
 
million)
 
and
 
there
 
were
no
 
dividends
received by the Corporation during the quarters ended March 31, 2025 and 2024.
90
Note 23 – 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 March 31, 2025 and December 31, 2024:
 
 
91
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At March 31, 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
$
8,601,447
$
5,672,521
$
-
$
-
$
14,273,968
Collateralized mortgage obligations - federal
agencies
-
115,859
-
-
115,859
Mortgage-backed securities
-
5,102,146
457
-
5,102,603
Other
-
-
750
-
750
Total debt securities available-for-sale
$
8,601,447
$
10,890,526
$
1,207
$
-
$
19,493,180
Trading account debt securities, excluding
derivatives:
U.S. Treasury securities
$
8,524
$
10
$
-
$
-
$
8,534
Obligations of Puerto Rico, States and political
subdivisions
-
53
-
-
53
Collateralized mortgage obligations
-
636
-
-
636
Mortgage-backed securities
-
19,043
84
-
19,127
Other
-
-
127
-
127
Total trading account debt securities, excluding
derivatives
$
8,524
$
19,742
$
211
$
-
$
28,477
Equity securities
$
-
$
45,129
$
-
$
407
$
45,536
Mortgage servicing rights
-
-
104,743
-
104,743
Loans held-for-sale
-
5,077
-
-
5,077
Derivatives
 
-
20,828
-
-
20,828
Total assets measured at fair value on a
recurring basis
$
8,609,971
$
10,981,302
$
106,161
$
407
$
19,697,841
Liabilities
Derivatives
$
-
$
(19,523)
$
-
$
-
$
(19,523)
Total liabilities measured at fair value on a
recurring basis
$
-
$
(19,523)
$
-
$
-
$
(19,523)
 
 
 
92
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 March 31, 2025 and December 31, 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
March 31, 2025
Aggregate Unpaid
Fair Value
Principal Balance
Difference
Loans held for sale
$
5,077
$
4,938
$
139
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 March 31, 2025 and December
 
31, 2024.
 
 
93
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 quarters ended March 31, 2025 and 2024 and excludes nonrecurring fair value measurements
 
of assets no
longer outstanding as of the reporting date.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter ended March 31, 2025
(In thousands)
Level 1
Level 2
Level 3
Total
NONRECURRING FAIR VALUE MEASUREMENTS
Assets
 
 
 
 
 
Write-downs
Loans
[1]
$
-
$
-
$
4,167
$
4,167
$
(362)
Other real estate owned
[2]
-
-
2,018
2,018
(485)
Other foreclosed assets
[2]
-
-
133
133
(76)
Total assets measured at fair value on a nonrecurring basis
$
-
$
-
$
6,318
$
6,318
$
(923)
[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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter ended March 31, 2024
(In thousands)
Level 1
Level 2
Level 3
Total
NONRECURRING FAIR VALUE MEASUREMENTS
Assets
 
 
 
 
 
Write-downs
Loans
[1]
$
-
$
-
$
110
$
110
$
(2,172)
Other real estate owned
[2]
-
-
1,416
1,416
(224)
Other foreclosed assets
[2]
-
-
105
105
(41)
Total assets measured at fair value on a nonrecurring basis
$
-
$
-
$
1,631
$
1,631
$
(2,437)
[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
ended March 31, 2025 and 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter ended March 31, 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 December 31, 2024
$
484
$
2,250
$
84
$
133
$
108,103
$
111,054
Gains (losses) included in earnings
-
-
-
(6)
(3,570)
(3,576)
Gains (losses) included in OCI
(2)
-
-
-
-
(2)
Additions
-
-
-
-
210
210
Settlements
(25)
-
-
-
-
(25)
Transfers out of Level 3
-
(1,500)
-
-
-
(1,500)
Balance at March 31, 2025
$
457
$
750
$
84
$
127
$
104,743
$
106,161
Changes in unrealized gains (losses) included in
earnings relating to assets still held at March 31,
2025
$
-
$
-
$
-
$
9
$
(1,325)
$
(1,316)
 
94
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter ended March 31, 2024
MBS
Other
Other
classified
securities
CMOs
MBS
securities
as debt
classified as
classified
classified
classified
securities
debt securities
as trading
as trading
as trading
Mortgage
available-
available-
account debt
account debt
account debt
servicing
Total
(In thousands)
for-sale
for-sale
securities
securities
securities
rights
assets
Balance at December 31, 2023
$
606
$
2,500
$
5
$
112
$
167
$
118,109
$
121,499
Gains (losses) included in earnings
-
(500)
-
-
(1)
(3,439)
(3,940)
Gains (losses) included in OCI
1
-
-
-
-
-
1
Additions
-
-
-
-
-
294
294
Settlements
-
-
(5)
(28)
-
-
(33)
Balance at March 31, 2024
$
607
$
2,000
$
-
$
84
$
166
$
114,964
$
117,821
Changes in unrealized gains (losses)
included in earnings relating to assets
still held at March 31, 2024
$
-
$
(500)
$
-
$
-
$
2
$
(1,202)
$
(1,700)
Gains and losses (realized and
 
unrealized) included in earnings
 
for the quarters ended March
 
31, 2025 and 2024 for
 
Level 3 assets
and liabilities included in the previous tables are reported in the consolidated statements of operations as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter ended March 31, 2025
Quarter ended March 31, 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
$
(3,570)
$
(1,325)
$
(3,439)
$
(1,202)
Trading account (loss) profit
(6)
9
(1)
2
Provision for credit losses
-
-
(500)
(500)
Total
 
$
(3,576)
$
(1,316)
$
(3,940)
$
(1,700)
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 March 31, 2025 and 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value at
 
March 31,
(In thousands)
2025
Valuation technique
Unobservable inputs
Weighted average (range) [1]
Other - trading
$
127
Discounted cash flow model
Weighted average life
2
 
years
Yield
12
.0%
Prepayment speed
10.8
%
Loans held-in-portfolio
$
4,167
[2]
External appraisal
Haircut applied on
external appraisals
7.5
% (
5.0
% -
10.0
%)
[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.
 
 
95
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value at
 
March 31,
(In thousands)
2024
Valuation technique
Unobservable inputs
Weighted average (range) [1]
Other - trading
$
166
Discounted cash flow model
Weighted average life
2.3
 
years
Yield
12
.0%
Prepayment speed
10.8
%
Loans held-in-portfolio
$
110
[2]
External appraisal
Haircut applied on
external appraisals
10
.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.
 
96
Note 24 – 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
 
March 31, 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.
 
97
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2025
Carrying
 
Measured
(In thousands)
amount
Level 1
Level 2
Level 3
at NAV
Fair value
 
Financial Assets:
Cash and due from banks
$
380,165
$
380,165
$
-
$
-
$
-
$
380,165
Money market investments
6,195,028
6,184,571
10,457
-
-
6,195,028
Trading account debt securities, excluding derivatives
[1]
28,477
8,524
19,742
211
-
28,477
Debt securities available-for-sale
[1]
19,493,180
8,601,447
10,890,526
1,207
-
19,493,180
Debt securities held-to-maturity:
U.S. Treasury securities
$
7,586,169
$
-
$
7,583,514
$
-
$
-
$
7,583,514
Obligations of Puerto Rico, States and political
subdivisions
49,594
-
6,853
43,030
-
49,883
Collateralized mortgage obligation-federal agency
1,514
-
1,329
-
-
1,329
Securities in wholly owned statutory business trusts
5,960
-
5,960
-
-
5,960
Total debt securities held-to-maturity
$
7,643,237
$
-
$
7,597,656
$
43,030
$
-
$
7,640,686
Equity securities:
FHLB stock
$
51,428
$
-
$
51,428
$
-
$
-
$
51,428
FRB stock
100,526
-
100,526
-
-
100,526
Other investments
53,067
-
45,129
8,025
407
53,561
Total equity securities
$
205,021
$
-
$
197,083
$
8,025
$
407
$
205,515
Loans held-for-sale
$
5,077
$
-
$
5,077
$
-
$
-
$
5,077
Loans held-in-portfolio
36,491,884
-
-
35,777,886
-
35,777,886
Mortgage servicing rights
104,743
-
-
104,743
-
104,743
Derivatives
20,828
-
20,828
-
-
20,828
March 31, 2025
Carrying
 
Measured
(In thousands)
amount
Level 1
Level 2
Level 3
at NAV
Fair value
 
Financial Liabilities:
Deposits:
Demand deposits
$
56,651,118
$
-
$
56,651,118
$
-
$
-
$
56,651,118
Time deposits
9,168,137
-
8,929,129
-
-
8,929,129
Total deposits
$
65,819,255
$
-
$
65,580,247
$
-
$
-
$
65,580,247
Assets sold under agreements to repurchase
$
57,268
$
-
$
57,274
$
-
$
-
$
57,274
Other short-term borrowings
[2]
200,000
-
200,000
-
-
200,000
Notes payable:
FHLB advances
$
239,199
$
-
$
234,299
$
-
$
-
$
234,299
Unsecured senior debt securities
395,570
-
415,132
-
-
415,132
Junior subordinated deferrable interest debentures
(related to trust preferred securities)
198,380
-
189,227
-
-
189,227
Total notes payable
$
833,149
$
-
$
838,658
$
-
$
-
$
838,658
Derivatives
$
19,523
$
-
$
19,523
$
-
$
-
$
19,523
[1]
Refer to Note 23 to the Consolidated Financial Statements for the fair value by class of financial asset and its hierarchy
 
level.
[2]
Refer to Note 15 to the Consolidated Financial Statements for the composition of other short-term borrowings.
 
 
98
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 23 to the Consolidated Financial Statements for the fair value by class of financial asset and its hierarchy
 
level.
 
[2]
Refer to Note 15 to the Consolidated Financial Statements for the composition of other short-term borrowings.
 
Refer
 
to
 
Note
 
20
 
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
 
March
 
31,
 
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.
 
 
99
Note 25 – 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
 
ended
March 31, 2025 and 2024:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended March 31,
(In thousands, except per share information)
2025
2024
Net income
$
177,502
$
103,283
Preferred stock dividends
(353)
(353)
Net income applicable to common stock
$
177,149
$
102,930
Average common shares outstanding
69,280,137
71,869,735
Average potential dilutive common shares
 
27,544
97,068
Average common shares outstanding - assuming dilution
69,307,681
71,966,803
Basic EPS
$
2.56
$
1.43
Diluted EPS
$
2.56
$
1.43
For the quarters
 
ended March 31,
 
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.
100
Note 26 – Revenue from contracts with customers
The
 
following
 
table
 
presents
 
the
 
Corporation’s
 
revenue
 
streams
 
from
 
contracts
 
with
 
customers
 
by
 
reportable
 
segment
 
for
 
the
quarters ended March 31, 2025 and 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended March 31,
(In thousands)
2025
2024
BPPR
Popular U.S.
BPPR
Popular U.S.
Service charges on deposit accounts
$
36,456
$
2,598
$
35,016
$
2,426
Other service fees:
Debit card fees [1]
26,234
198
25,334
199
Insurance fees, excluding reinsurance
7,681
1,687
10,556
1,846
Credit card fees, excluding late fees and membership fees [1]
25,385
405
24,515
458
Sale and administration of investment products
8,973
-
7,427
-
Trust fees
6,631
-
6,985
-
Total revenue from contracts with customers
[2]
$
111,360
$
4,888
$
109,833
$
4,929
[1] 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 quarter ended March 31, 2024, these interchange fees were approximately $
11.3
 
million.
[2] The amounts include intersegment transactions of $
0.6
 
million for each of the quarters ended March 31, 2025 and 2024.
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.
 
A
 
service
 
is
 
transferred
 
to
 
the
 
customer
 
when,
 
or
 
as,
 
the
 
customer
 
obtains
control
 
of
 
that
 
service.
 
A
 
performance
 
obligation
 
may
 
be
 
satisfied
 
over
 
time
 
or
 
at
 
a
 
point
 
in
 
time.
 
Revenue
 
from
 
a
 
performance
obligation satisfied
 
over time
 
is recognized
 
based on
 
the services
 
that have
 
been rendered
 
to date.
 
Revenue from
 
a performance
obligation satisfied at a
 
point in time is
 
recognized when the customer
 
obtains control over the
 
service. The transaction
 
price, or the
amount of revenue
 
recognized, reflects
 
the consideration
 
the Corporation
 
expects to
 
be entitled
 
to in
 
exchange for
 
those promised
services. In determining the transaction price,
 
the Corporation considers the effects of
 
variable consideration. Variable
 
consideration
is included
 
in the
 
transaction price
 
only to
 
the extent
 
it is
 
probable that
 
a significant
 
reversal in
 
the amount
 
of cumulative
 
revenue
recognized will
 
not occur.
 
The Corporation
 
is the
 
principal in
 
a transaction
 
if it
 
obtains control
 
of the
 
specified goods
 
or services
before
 
they are
 
transferred
 
to
 
the
 
customer.
 
If
 
the
 
Corporation
 
acts
 
as principal,
 
revenues
 
are
 
presented
 
in the
 
gross
 
amount of
consideration to which
 
it expects to be
 
entitled and are not
 
netted with any
 
related expenses. On
 
the other hand, the
 
Corporation is
an agent if it
 
does not control the
 
specified goods or services
 
before they are transferred
 
to the customer.
 
If the Corporation acts
 
as
an agent, revenues are presented in the amount of consideration to which it expects to be entitled, net of related expenses.
Following is a description of the nature and timing of revenue streams from contracts with customers:
Service charges on deposit accounts
Service
 
charges
 
on
 
deposit
 
accounts
 
are
 
earned
 
on
 
retail
 
and
 
commercial
 
deposit
 
activities
 
and
 
include,
 
but
 
are
 
not
 
limited
 
to,
nonsufficient
 
fund fees,
 
overdraft fees
 
and checks
 
stop payment
 
fees. These
 
transaction-based
 
fees are
 
recognized at
 
a point
 
in
time,
 
upon
 
occurrence
 
of
 
an
 
activity
 
or
 
event
 
or
 
upon
 
the
 
occurrence
 
of
 
a
 
condition
 
which
 
triggers
 
the
 
fee
 
assessment.
 
The
Corporation is acting as principal in these transactions.
Debit card fees
Debit card fees include, but are not limited to, interchange fees, surcharging income and foreign transaction
 
fees. These transaction-
based fees
 
are recognized
 
at a
 
point in
 
time, upon
 
occurrence of
 
an activity
 
or event
 
or upon
 
the occurrence
 
of a
 
condition which
triggers
 
the
 
fee
 
assessment.
 
Interchange
 
fees
 
are
 
recognized
 
upon
 
settlement
 
of
 
the
 
debit
 
card
 
payment
 
transactions.
 
The
Corporation is acting as principal in these transactions.
Insurance fees
Insurance
 
fees
 
include,
 
but
 
are
 
not
 
limited
 
to,
 
commissions
 
and
 
contingent
 
commissions.
 
Commissions
 
and
 
fees
 
are
 
recognized
when related
 
policies are
 
effective since
 
the Corporation
 
does not
 
have an
 
enforceable right
 
to payment
 
for services
 
completed to
date.
 
An
 
allowance
 
is
 
created
 
for
 
expected
 
adjustments
 
to
 
commissions
 
earned
 
related
 
to
 
policy
 
cancellations.
 
Contingent
101
commissions
 
are
 
recorded
 
on
 
an
 
accrual
 
basis
 
when
 
the
 
amount
 
to
 
be
 
received
 
is
 
notified
 
by
 
the
 
insurance
 
company.
 
The
Corporation is
 
acting as
 
an agent
 
since it
 
arranges for
 
the sale
 
of the
 
policies and
 
receives commissions
 
if, and
 
when, it
 
achieves
the sale.
 
Credit card fees
Credit card
 
fees
 
include, but
 
are not
 
limited
 
to, interchange
 
fees, additional
 
card fees,
 
cash advance
 
fees, balance
 
transfer fees,
foreign transaction fees,
 
and returned payments
 
fees. Credit card
 
fees are recognized
 
at a point in
 
time, upon the occurrence
 
of an
activity or
 
an event.
 
Interchange fees
 
are recognized
 
upon settlement
 
of the
 
credit card
 
payment transactions.
 
The Corporation
 
is
acting as principal in these transactions.
Sale and administration of investment products
Fees from
 
the sale
 
and administration
 
of investment
 
products include,
 
but are
 
not limited
 
to, commission
 
income from
 
the sale
 
of
investment products, asset management fees, underwriting fees, and mutual fund fees.
 
Commission income from investment products
 
is recognized on the trade date
 
since clearing, trade execution, and
 
custody services
are satisfied
 
when the
 
customer acquires
 
or disposes
 
of the
 
rights to
 
obtain the
 
economic benefits
 
of the
 
investment products
 
and
brokerage contracts have no
 
fixed duration and
 
are terminable at will
 
by either party.
 
The Corporation is acting
 
as principal in these
transactions since
 
it performs
 
the service
 
of providing
 
the customer
 
with the
 
ability to
 
acquire or
 
dispose of
 
the rights
 
to obtain
 
the
economic benefits of investment products.
 
Asset
 
management
 
fees
 
are
 
satisfied
 
over
 
time
 
and
 
are
 
recognized
 
in
 
arrears.
 
At
 
contract
 
inception,
 
the
 
estimate
 
of
 
the
 
asset
management
 
fee
 
is
 
constrained
 
from the
 
inclusion
 
in the
 
transaction
 
price
 
since
 
the promised
 
consideration
 
is
 
dependent on
 
the
market and
 
thus is
 
highly susceptible
 
to factors
 
outside the
 
manager’s influence.
 
As advisor,
 
the broker-dealer
 
subsidiary is
 
acting
as principal.
Underwriting fees
 
are recognized
 
at a point
 
in time, when
 
the investment
 
products are
 
sold in
 
the open market
 
at a markup.
 
When
the broker-dealer subsidiary
 
is lead underwriter,
 
it is acting
 
as an agent.
 
In turn, when
 
it is a participating
 
underwriter, it
 
is acting as
principal.
Mutual fund fees,
 
such as distribution
 
fees, are considered
 
variable consideration
 
and are recognized
 
over time, as
 
the uncertainty
of the fees to
 
be received is resolved
 
as NAV
 
is determined and investor
 
activity occurs. The
 
promise to provide
 
distribution-related
services
 
is
 
considered
 
a
 
single
 
performance
 
obligation
 
as
 
it
 
requires
 
the
 
provision
 
of
 
a
 
series
 
of
 
distinct
 
services
 
that
 
are
substantially the same and have the same pattern of transfer. When
 
the broker-dealer subsidiary is acting as a distributor, it is acting
as principal. In turn, when it acts as third-party dealer, it is acting
 
as an agent.
Trust fees
Trust fees
 
are recognized
 
from retirement plan,
 
mutual fund
 
administration, investment
 
management, trustee,
 
escrow, and
 
custody
and
 
safekeeping
 
services.
 
These
 
asset
 
management
 
services
 
are
 
considered
 
a
 
single
 
performance
 
obligation
 
as
 
it
 
requires
 
the
provision
 
of a
 
series of
 
distinct services
 
that are
 
substantially
 
the same
 
and have
 
the same
 
pattern of
 
transfer.
 
The performance
obligation
 
is
 
satisfied
 
over
 
time,
 
except
 
for
 
optional
 
services
 
and
 
certain
 
other
 
services
 
that
 
are
 
satisfied
 
at
 
a
 
point
 
in
 
time.
 
Revenues are recognized
 
in arrears, when,
 
or as, the
 
services are rendered.
 
The Corporation is
 
acting as principal
 
since, as asset
manager, it has
 
the obligation to provide the
 
specified service to the customer
 
and has the ultimate discretion
 
in establishing the fee
paid by the customer for the specified services.
 
 
102
Note 27 – Leases
The
 
Corporation
 
enters
 
in
 
the
 
ordinary
 
course
 
of
 
business
 
into
 
operating
 
and
 
finance
 
leases
 
for
 
land,
 
buildings
 
and
 
equipment.
These contracts generally
 
do not include
 
purchase options or
 
residual value guarantees.
 
The remaining lease
 
terms of
0.2
 
to
29.8
years
 
considers
 
options
 
to
 
extend
 
the
 
leases
 
for
 
up
 
to
20
 
years.
 
The
 
Corporation
 
identifies
 
leases
 
when
 
it
 
has
 
both
 
the
 
right
 
to
obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset.
The
 
Corporation
 
recognizes
 
right-of-use
 
assets
 
(“ROU
 
assets”)
 
and
 
lease
 
liabilities
 
related
 
to
 
operating
 
and
 
finance
 
leases
 
in its
Consolidated Statements of Financial Condition
 
under the caption of other assets
 
and other liabilities, respectively.
 
Refer to Note 12
and
 
Note
 
16
 
to
 
the
 
Consolidated
 
Financial
 
Statements,
 
respectively,
 
for
 
information
 
on
 
the
 
balances
 
of
 
these
 
lease
 
assets
 
and
liabilities.
The Corporation uses
 
the incremental borrowing
 
rate for purposes
 
of discounting lease
 
payments for operating
 
and finance leases,
since it
 
does not
 
have enough
 
information to
 
determine the
 
rates implicit
 
in the
 
leases. The
 
discount rates
 
are based
 
on fixed-rate
and
 
fully
 
amortizing
 
borrowing
 
facilities
 
of
 
its
 
banking
 
subsidiaries
 
that
 
are
 
collateralized.
 
For
 
leases
 
held
 
by
 
non-banking
subsidiaries, a credit spread is added to this rate based on financing transactions with a similar credit risk profile.
The following table presents the undiscounted cash flows of operating and finance leases for each of the following
 
periods:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2025
(In thousands)
Remaining
2025
2026
2027
2028
2029
Later
Years
Total Lease
Payments
Less: Imputed
Interest
Total
Operating Leases
$
21,775
$
21,524
$
16,304
$
13,791
$
11,700
$
34,890
$
119,984
$
(16,356)
$
103,628
Finance Leases
3,352
4,222
2,927
2,592
2,415
9,529
25,037
(2,801)
22,236
The following table presents the lease cost recognized by the Corporation in the Consolidated Statements of Operations as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended March 31,
(In thousands)
2025
2024
Finance lease cost:
Amortization of ROU assets
$
746
$
748
Interest on lease liabilities
200
237
Operating lease cost
7,549
7,688
Short-term lease cost
193
116
Variable lease cost
85
69
Sublease income
(20)
(20)
Total lease cost
[1]
$
8,753
$
8,838
[1]
Total lease cost is recognized as part of net occupancy expense.
103
The
 
following
 
table
 
presents
 
supplemental
 
cash
 
flow
 
information
 
and
 
other
 
related
 
information
 
related
 
to
 
operating
 
and
 
finance
leases.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter ended March 31,2025
(Dollars in thousands)
2025
2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
$
7,805
$
7,771
Operating cash flows from finance leases
200
237
Financing cash flows from finance leases
908
881
ROU assets obtained in exchange for new lease obligations:
Operating leases
$
5,572
$
1,127
Weighted-average remaining lease term:
Operating leases
7.4
years
7.2
years
Finance leases
8.0
years
8.2
years
Weighted-average discount rate:
Operating leases
3.5
%
3.3
%
Finance leases
3.6
%
3.8
%
As of March 31, 2025, the Corporation had additional operating leases contracts that have not yet commenced
 
with an undiscounted
contract amount of $
10
 
million, which will have lease terms of
10
 
years.
 
 
104
Note 28 – Pension and postretirement benefits
The
 
Corporation
 
has
 
a
 
non-contributory
 
defined
 
benefit
 
pension
 
plan
 
and
 
supplementary
 
pension
 
benefit
 
restoration
 
plans
 
for
regular employees
 
of certain
 
of its
 
subsidiaries (the
 
“Pension Plans”).
 
The accrual
 
of benefits
 
under the
 
Pension Plans
 
is frozen
 
to
all
 
participants.
 
The
 
Corporation
 
also
 
provides
 
certain
 
postretirement
 
health
 
care
 
benefits
 
for
 
retired
 
employees
 
of
 
certain
subsidiaries (the “OPEB Plan”).
 
The components of net periodic cost for the Pension Plans and the OPEB Plan for the periods presented were as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension Plans
OPEB Plan
Quarter ended March 31,
Quarter ended March 31,
(In thousands)
2025
2024
2025
2024
Personnel Cost:
 
Service cost
$
-
$
-
$
15
$
32
Other operating expenses:
 
Interest cost
7,411
7,558
1,291
1,421
 
Expected return on plan assets
(8,069)
(8,594)
-
-
 
Amortization of prior service cost/(credit)
-
-
-
-
 
Amortization of net loss (gain)
3,450
4,166
(1,177)
(548)
Total net periodic pension cost
 
$
2,792
$
3,130
$
129
$
905
The Corporation
 
paid the
 
following contributions
 
to the
 
plans for
 
the three
 
months ended
 
March 31,
 
2025 and
 
expects to
 
pay the
following contributions for the year ending December 31, 2025.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the three months
ended
For the year ending
(In thousands)
March 31, 2025
December 31, 2025
Pension Plans
$
57
$
227
OPEB Plan
$
1,425
$
5,428
105
Note 29 - Stock-based compensation
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
 
considered to
 
be a
 
market condition
 
under ASC
 
718.
 
For equity
 
settled awards
based
 
on
 
a
 
market
 
condition,
 
the
 
fair
 
value
 
is
 
determined
 
as
 
of
 
the
 
grant
 
date
 
and
 
is
 
not
 
subsequently
 
revised
 
based
 
on
 
actual
performance.
 
The
 
ROATCE
 
metric
 
is
 
considered
 
to
 
be
 
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% of target based on
both market (TSR) and performance (ROATCE) conditions. The performance shares 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.
 
 
106
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
120,113
102.45
Performance Shares Quantity Adjustment
21,422
92.24
Vested
 
(125,640)
98.96
Forfeited
(880)
75.63
Non-vested at March 31, 2025
262,923
$
70.13
During the
 
quarter ended
 
March
 
31, 2025,
72,619
 
shares of
 
restricted
 
stock
 
(March 31,
 
2024 -
77,859
) and
47,494
 
performance
shares (March 31, 2024 -
65,225
) were awarded to management under the Incentive Plan.
 
During
 
the
 
quarter
 
ended
 
March
 
31,
 
2025,
 
the
 
Corporation
 
recognized
 
$
7.5
 
million
 
of
 
restricted
 
stock
 
expense
 
related
 
to
management incentive awards, with a tax benefit of $
0.6
 
million (March 31, 2024 - $
6.4
 
million, with a tax benefit of $
0.6
 
million). For
the quarter ended
 
March 31, 2025,
 
the fair market
 
value of the
 
restricted stock
 
and performance shares
 
vested was $
8.7
 
million at
grant date
 
and $
11.7
 
million at
 
vesting date.
 
This excess
 
requires the
 
recognition of
 
a windfall
 
tax benefit
 
of $
1.1
 
million that
 
was
recorded as
 
a reduction
 
in income
 
tax expense.
 
For the
 
quarter ended
 
March 31,
 
2025, the
 
Corporation recognized
 
$
3.4
 
million of
performance shares expense, with a tax
 
benefit of $
0.4
 
million (March 31, 2024 -
 
$
5.0
 
million, with a tax benefit of
 
$
0.3
 
million). The
total
 
unrecognized
 
compensation
 
cost
 
related
 
to
 
non-vested
 
restricted
 
stock
 
awards
 
and
 
performance
 
shares
 
to
 
members
 
of
management at March 31, 2025 was $
12.9
 
million and is expected to be recognized over a weighted-average period of
1.65
 
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
1,546
93.65
Vested
 
(1,546)
93.65
Forfeited
-
-
Non-vested at March 31, 2025
-
$
-
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 after 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 reinvested dividend equivalent.
 
During the quarter
 
ended March 31,
 
2025,
1,546
 
RSUs were granted
 
to the Directors
 
(March 31, 2024 -
1,195
).
 
During this period,
the
 
Corporation
 
recognized
 
$
0.3
 
million
 
of
 
restricted
 
stock
 
expense
 
related
 
to
 
these
 
RSUs,
 
with
 
a
 
tax
 
benefit
 
of
 
$
48
 
thousand
(March 31, 2024
 
- $
98
 
thousand, with
 
a tax
 
benefit of
 
$
18
 
thousand). The fair
 
value at
 
vesting date
 
of the RSUs
 
vested during
 
the
quarter ended March 31, 2025 for Directors was $
0.1
 
million.
107
Note 30 – Income taxes
 
The table below presents a reconciliation of the statutory income tax rate to the effective income
 
tax rate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarters ended
March 31, 2025
March 31, 2024
(In thousands)
Amount
 
% of pre-tax
income
 
Amount
% of pre-tax
income
Computed income tax expense at statutory rates
 
$
83,462
38
%
$
59,569
38
%
Net benefit of tax exempt interest income
(39,955)
(18)
(28,759)
(18)
Effect of income subject to preferential tax rate
(913)
-
(1,420)
(1)
Deferred tax asset valuation allowance
3,882
1
2,563
1
Difference in tax rates due to multiple jurisdictions
(2,975)
(1)
(673)
-
Tax on intercompany distributions
[1]
-
-
24,325
16
State and local taxes
4,036
1
1,036
-
Others
(2,474)
(1)
(1,073)
(1)
Income tax expense
$
45,063
20
%
$
55,568
35
%
[1]
Includes $
16.5
 
million of out-of-period adjustment
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
March 31, 2025, and December 31, 2024, were as follows:
 
108
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2025
 
(In thousands)
PR
US
Total
Deferred tax assets:
Tax credits available for carryforward
$
4,861
$
27,774
$
32,635
Net operating loss and other carryforward available
 
58,060
603,736
661,796
Postretirement and pension benefits
28,190
-
28,190
Allowance for credit losses
244,976
27,014
271,990
Depreciation
7,700
7,381
15,081
FDIC-assisted transaction
152,665
-
152,665
Lease liability
26,658
15,218
41,876
Unrealized net loss on investment securities
221,538
17,007
238,545
Difference in outside basis from pass-through entities
53,381
-
53,381
Mortgage Servicing Rights
14,815
-
14,815
Other temporary differences
38,635
8,870
47,505
Total gross deferred tax assets
851,479
707,000
1,558,479
Deferred tax liabilities:
Intangibles
89,280
56,710
145,990
Right of use assets
24,190
13,371
37,561
Deferred loan origination fees/cost
(1,154)
2,607
1,453
Loans acquired
17,907
-
17,907
Other temporary differences
6,826
429
7,255
 
Total gross deferred tax liabilities
137,049
73,117
210,166
Valuation allowance
75,598
386,913
462,511
Net deferred tax asset
$
638,832
$
246,970
$
885,802
 
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
109
The net
 
deferred
 
tax assets
 
shown in
 
the table
 
above at
 
March
 
31, 2025,
 
is reflected
 
in the
 
consolidated
 
statements of
 
financial
condition as
 
$
887.5
 
million in
 
net deferred
 
tax assets
 
in the
 
“Other assets”
 
caption (December
 
31, 2024
 
- $
926.3
 
million) and
 
$
1.7
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
 
March
 
31,
 
2025,
 
the
 
net
 
deferred
 
tax
 
assets
 
of
 
the
 
U.S.
 
operations
 
amounted
 
to
 
$
633.9
 
million
 
with
 
a
 
valuation
 
allowance
 
of
approximately $
386.9
 
million, for net deferred
 
tax assets after valuation
 
allowance of approximately
 
$
247.0
 
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
 
and
 
for
 
the
 
quarter
 
ended
 
March
 
31,
 
2025.
 
These
 
historical
 
financial
 
results
 
are
 
objectively
verifiable positive evidence,
 
evaluated together with
 
the positive evidence
 
of stable credit
 
metrics, in combination
 
with the length
 
of
the
 
expiration
 
of
 
the
 
NOLs.
 
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
 
and
 
global
geopolitical uncertainty that
 
have resulted in
 
a trend of reduction
 
of pre-tax income
 
over the last years.
 
As of March 31,
 
2025, after
weighting
 
all
 
positive
 
and
 
negative
 
evidence,
 
the
 
Corporation
 
concluded
 
that
 
it
 
is
 
more
 
likely
 
than
 
not
 
that
 
approximately
 
$
247.0
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
 
adverse
 
changes
 
or
 
a
 
combination
 
of
 
changes
 
in
 
these
 
factors
 
could
 
impact
 
the
 
future
realization of the deferred tax assets
At March 31, 2025, the Corporation’s
 
net deferred tax assets related to
 
its Puerto Rico operations amounted
 
to $
638.8
 
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 $
75.6
 
million as of March 31, 2025.
The reconciliation of unrecognized tax benefits, excluding interest, was as follows:
 
110
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
2025
2024
Balance at January 1
$
1.5
$
1.5
Balance at March 31
$
1.5
$
1.5
At March 31,
 
2025, the total
 
amount of accrued
 
interest recognized in
 
the statement of
 
financial condition
 
amounted to $
2.4
 
million
(December 31, 2024
 
- $
2.4
 
million). The total
 
interest expense recognized
 
at March 31,
 
2025 was $
30
 
thousand, (March 31,
 
2024–
$
30
 
thousand).
 
Management
 
determined
 
that
 
at
 
March
 
31,
 
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
 
approximately
 
$
3.0
 
million
 
at
 
March
 
31,
 
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
 
March
 
31,
 
2025,
 
the
 
following
 
years
 
remain
 
subject
 
to
 
examination
 
in
 
the
 
U.S.
Federal jurisdiction: 2020 and thereafter; and in the Puerto Rico jurisdiction, 2018 and thereafter.
 
111
Note 31 – Supplemental disclosure on the consolidated statements of cash flows
Additional disclosures on cash flow information and non-cash activities for the quarters ended March 31, 2025 and March 31, 2024
are listed in the following table:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
March 31, 2025
March 31, 2024
Non-cash activities:
 
Loans transferred to other real estate
$
7,067
$
16,133
 
Loans transferred to other property
24,673
20,224
 
Total loans transferred to foreclosed assets
31,740
36,357
 
Loans transferred to other assets
13,992
13,464
 
Financed sales of other real estate assets
1,932
2,725
 
Financed sales of other foreclosed assets
14,979
13,689
 
Total financed sales of foreclosed assets
16,911
16,414
 
Financed sale of premises and equipment
15,329
22,495
 
Transfers from loans held-in-portfolio to loans held-for-sale
-
2,763
 
Transfers from loans held-for-sale to loans held-in-portfolio
776
1,722
 
Loans securitized into investment securities
[1]
1,718
2,205
 
Trades receivable from brokers and counterparties
936
45
 
Trades payable to brokers and counterparties
495,397
45
 
Net change in receivables from investments maturities
14,589
125,000
 
Recognition of mortgage servicing rights on securitizations or asset transfers
210
294
 
Loans booked under the GNMA buy-back option
1,921
2,181
 
Capitalization of lease right of use asset
7,288
1,152
[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)
March 31, 2025
March 31, 2024
Cash and due from banks
$
373,718
$
305,869
Restricted cash and due from banks
6,447
14,617
Restricted cash in money market investments
10,457
7,793
Total cash and due from banks, and restricted cash
[2]
$
390,622
$
328,279
[2]
 
Refer to Note 4 - Restrictions on cash and due from banks and certain securities for nature of restrictions.
112
Note 32 – 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
 
conducted at
BPPR, including
 
U.S. based
 
activities
 
conducted through
 
its New
 
York
 
Branch. It
 
also includes
 
the lending
 
operations of
 
Popular
Auto
 
and
 
Popular
 
Mortgage.
 
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:
113
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2025
For the quarter ended March 31, 2025
Intersegment
 
(In thousands)
BPPR
Popular U.S.
Eliminations
Interest income
$
731,888
$
186,392
$
(1,681)
Interest expense
209,996
93,450
(1,681)
Net interest income
521,892
92,942
-
Provision for credit losses
53,512
10,610
-
Non-interest income
 
137,505
6,143
-
Personnel costs
151,284
25,442
-
Professional fees
13,059
2,739
-
Technology and software expenses
64,151
10,088
-
Processing and transactional services
37,179
597
-
Amortization of intangibles
342
255
-
Depreciation expense
9,694
2,197
-
Other operating expenses
[1]
128,754
25,619
-
Total operating expenses
404,463
66,937
-
Income before income tax
201,422
21,538
-
Income tax expense
35,443
6,722
-
Net income
$
165,979
$
14,816
$
-
Segment assets
$
59,288,907
$
14,529,602
$
(166,540)
For the quarter ended March 31, 2025
Reportable
 
(In thousands)
Segments
Corporate
Eliminations
Total Popular,
 
Inc.
Interest income
$
916,599
$
1,536
$
(1,137)
$
916,998
Interest expense
301,765
10,773
(1,137)
311,401
Net interest income (expense)
614,834
(9,237)
-
605,597
Provision for credit losses (benefit)
64,122
(41)
-
64,081
Non-interest income
143,648
9,029
(616)
152,061
Personnel costs
176,726
35,987
-
212,713
Professional fees
15,798
11,357
(330)
26,825
Technology and software expenses
74,239
9,429
-
83,668
Processing and transactional services
37,776
5
-
37,781
Amortization of intangibles
597
-
-
597
Depreciation expense
11,891
389
-
12,280
Other operating expenses
[1]
154,373
(56,402)
(823)
97,148
Total operating expenses
471,400
765
(1,153)
471,012
Income before income tax
222,960
(932)
537
222,565
Income tax expense
42,165
2,675
223
45,063
Net income (loss)
$
180,795
$
(3,607)
$
314
$
177,502
Segment assets
$
73,651,969
$
5,906,249
$
(5,519,612)
$
74,038,606
[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.
114
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2024
For the quarter ended March 31, 2024
Intersegment
 
(In thousands)
BPPR
 
Popular U.S.
Eliminations
Interest income
$
713,988
$
182,883
$
(3,287)
Interest expense
241,147
98,030
(3,287)
Net interest income
472,841
84,853
-
Provision for credit losses
60,680
11,435
-
Non-interest income
 
145,669
7,120
(56)
Personnel costs
152,926
27,144
-
Professional fees
12,368
3,479
(56)
Technology and software expenses
63,184
8,900
-
Processing and transactional services
33,554
633
-
Amortization of intangibles
484
311
-
Depreciation expense
13,009
1,943
-
Other operating expenses
[1]
131,773
27,632
-
Total operating expenses
407,298
70,042
(56)
Income before income tax
150,532
10,496
-
Income tax expense
29,206
3,456
-
Net income
$
121,326
$
7,040
$
-
Segment assets
$
57,250,662
$
13,686,037
$
(359,383)
For the quarter ended March 31, 2024
Reportable
 
(In thousands)
Segments
Corporate
Eliminations
Total Popular,
 
Inc.
Interest income
893,584
3,799
(3,242)
894,141
Interest expense
335,890
10,749
(3,242)
343,397
Net interest income (expense)
$
557,694
$
(6,950)
$
-
$
550,744
Provision for credit losses
72,115
483
-
72,598
Non-interest income
 
152,733
11,722
(637)
163,818
Personnel costs
180,070
35,307
-
215,377
Professional fees
15,791
13,404
(277)
28,918
Technology and software expenses
72,084
7,378
-
79,462
Processing and transactional services
34,187
7
-
34,194
Amortization of intangibles
795
-
-
795
Depreciation expense
14,952
409
-
15,361
Other operating expenses
[1]
159,405
(49,485)
(914)
109,006
Total operating expenses
477,284
7,020
(1,191)
483,113
Income before income tax
161,028
(2,731)
554
158,851
Income tax expense
32,662
22,676
230
55,568
Net income (loss)
$
128,366
$
(25,407)
$
324
$
103,283
Segment assets
$
70,577,316
$
5,723,198
$
(5,363,575)
$
70,936,939
[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.
 
115
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
 
first
 
quarter
 
of
 
2025,
 
BPPR
 
participate
 
in
 
loans
 
originated
 
by
 
PB
 
totaling
 
$
6
 
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 $
104
 
million in multifamily
 
loans (December 31,
 
2024 - $
104
 
million), $
455
 
million in commercial
 
real estate loans
(December 31,
 
2024 -
 
$
588
 
million), $
664
 
million in
 
C&I loans
 
(December 31,
 
2024 -
 
$
685
 
million), and
 
$
90
 
million in
 
unsecured
personal
 
loans
 
(December
 
31,
 
2024
 
-
 
$
113
 
million).
 
During
 
the
 
quarter
 
ended
 
March
 
31,
 
2025,
 
the
 
BPPR
 
segment
 
generated
approximately $
26.3
 
million (March
 
31, 2024
 
- $
29.8
 
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 $
1.0
 
billion (December
 
31, 2024
 
- $
1.0
billion). The
 
BPPR segment
 
generated $
11.8
 
million in
 
revenues during
 
the first
 
quarter of
 
2025 (March
 
31, 2024
 
- $
10.6
 
million)
from its operations in the U.S. and British Virgin Islands.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Geographic Information
 
Quarter ended
(In thousands)
March 31, 2025
March 31, 2024
Revenues:
[1]
 
Puerto Rico
 
$
609,961
$
565,744
 
United States
127,216
126,741
 
Other
20,481
22,077
Total consolidated revenues
 
$
757,658
$
714,562
[1]
Total revenues include net interest income, service charges on deposit accounts, other service fees, mortgage banking activities, net (loss)
gain, 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)
March 31, 2025
December 31, 2024
Puerto Rico
 
Total assets
$
56,870,242
$
55,888,211
 
Loans
24,279,836
24,154,610
 
Deposits
52,675,896
52,099,309
United States
 
Total assets
$
15,900,462
$
15,890,339
 
Loans
12,452,697
12,431,859
 
Deposits
11,388,174
11,030,879
Other
 
Total assets
$
1,267,902
$
1,266,833
 
Loans
526,576
526,606
 
Deposits
[1]
1,755,186
1,754,157
[1]
Represents deposits from BPPR operations located in the U.S. and British Virgin Islands.
 
 
 
 
 
 
 
 
 
 
 
116
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
 
OF FINANCIAL CONDITION AND RESULTS OF
 
OPERATIONS
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,
mortgage 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 32 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.
SIGNIFICANT EVENTS
Capital Actions
During the quarter ended March
 
31, 2025, the Corporation repurchased
 
1,270,569 shares of common stock
 
for $122.3 million, at an
average price of
 
$96.24 per share.
 
As of March
 
31, 2025, a
 
total of $339.6
 
million in common
 
stock has been
 
repurchased under a
common stock
 
repurchase authorization
 
of up
 
to $500
 
million
 
announced in
 
the third
 
quarter of
 
2024. The
 
Corporation’s
 
planned
common
 
stock
 
repurchases
 
may
 
be executed
 
in open
 
market transactions,
 
privately
 
negotiated
 
transactions,
 
block trades
 
or any
other manner determined by the Corporation.
 
The common stock repurchase program
 
does not require the Corporation to
 
acquire a
specific dollar amount or number of shares and may be modified, suspended or terminated at any time without prior
 
notice.
The Corporation paid dividends of $0.70 per share, an increase of 13% compared to the fourth quarter of 2024.
OVERVIEW
Financial highlights for the quarter ended March 31, 2025
117
The
 
discussion
 
that
 
follows
 
provides
 
highlights
 
of
 
the
 
Corporation’s
 
results
 
of
 
operations
 
for
 
the
 
quarter
 
ended
 
March
 
31,
 
2025
compared to
 
the results
 
of operations
 
for the
 
quarter ended
 
March 31,
 
2024. It
 
also provides
 
some highlights
 
with respect
 
to the
Corporation’s financial condition, credit quality,
 
capital and liquidity, when compared to December 31,
 
2024.
 
The Corporation’s
 
net income for
 
the quarter ended
 
March 31, 2025
 
amounted to $177.5
 
million, an increase
 
of $74.2 million
 
when
compared to
 
a net income
 
of $103.3 million
 
for the quarter
 
ended March
 
31, 2024. Higher
 
net income
 
was mainly
 
driven by higher
net interest
 
income and lower
 
provision for
 
credit losses,
 
operating expenses
 
and income tax
 
expense, offset
 
in part by
 
lower non-
interest income. When compared to adjusted net income
 
for the quarter ended March 31, 2024 (Refer to
 
Table 2
 
below), net income
increased $42.3 million. There were no non-GAAP adjustments to net income for the quarter ended March 31, 2025.
Financial highlights for the quarter ended March 31, 2025 include:
 
Net
 
interest
 
income
 
of
 
$605.6
 
million,
 
which
 
was
 
$54.9
 
million
 
higher
 
when
 
compared
 
to
 
the
 
quarter
 
ended
 
March
 
31,
2024, was
 
driven by
 
the reinvestment
 
of U.S.
 
Treasuries
 
at higher
 
rates and
 
a reduction
 
in cost
 
of deposits
 
due to
 
the
repricing across
 
most deposits
 
products, mainly
 
P.R.
 
public deposits.
 
Net interest
 
margin expanded
 
by 24
 
bps to
 
3.40%.
On
 
a
 
taxable
 
equivalent
 
basis,
 
net
 
interest
 
margin
 
expanded
 
by
 
35
 
basis
 
points
 
to
 
3.73%,
 
compared
 
to
 
3.38%
 
for
 
the
same quarter of the previous year mainly driven by higher re-investment in tax exempt investment securities.
 
 
The provision for credit losses amounted to $64.1
 
million for the quarter ended March 31, 2025, a
 
decrease of $8.5 million
when
 
compared
 
to
 
the
 
quarter
 
ended
 
March
 
31,
 
2024,
 
driven
 
by
 
lower
 
reserves
 
in
 
BPPR
 
due
 
to
 
lower
 
NCOs
 
and
improved
 
credit
 
quality
 
for
 
commercial
 
and
 
consumer
 
loans,
 
offset
 
in
 
part
 
by
 
higher
 
reserves
 
due
 
to
 
changes
 
in
 
the
projected economic scenarios.
 
Non-interest income amounted to
 
$152.1 million, a decrease
 
of $11.8
 
million when compared to
 
the quarter ended March
31, 2024, mainly due to lower other operating income
 
driven by the sale, completed by Popular Auto
 
LLC, a wholly-owned
subsidiary of Banco Popular de Puerto Rico, of its daily car rental business during the fourth quarter of 2024.
 
Operating expenses
 
amounted to $471.0
 
million for the
 
quarter, reflecting
 
a decrease of
 
$12.1 million when
 
compared to
the quarter
 
ended
 
March 31,
 
2024.
 
The decrease
 
was driven
 
mainly
 
by the
 
impact of
 
the FDIC
 
special
 
assessment of
$14.3 million
 
and $6.4
 
million
 
of interest
 
accrued
 
related to
 
prior
 
period taxes
 
recorded in
 
the first
 
quarter of
 
2024 and
lower equipment
 
expenses, partially
 
offset by
 
an increase
 
in municipal
 
license tax
 
and regulatory
 
examination fees
 
and
higher technology and software expenses.
 
Income tax
 
expense of
 
$45.1 million
 
during the
 
quarter ended
 
March 31,
 
2025 and
 
effective
 
tax rate
 
(“ETR”) of
 
20.2%,
compared
 
to
 
an
 
income
 
tax
 
expense
 
of
 
$55.6
 
million
 
for
 
the
 
previous
 
year
 
quarter
 
and
 
ETR
 
of
 
35%.
 
The
 
income
 
tax
expense for the quarter
 
ended March 31, 2024
 
included the impact of
 
an out of period
 
expense of $16.5 million
 
related to
upstream intercompany distributions between Popular Inc. Holding Company and one of its U.S. subsidiaries.
 
At March
 
31, 2025,
 
the Corporation’s
 
total assets
 
amounted to
 
$74.0 billion,
 
compared to
 
$73.0 billion,
 
at December
 
31,
2024. The increase of $993.2
 
million is primarily due
 
to higher balance in the
 
available-for-sale (“AFS”) securities portfolio
and an increase in loans held-in-portfolio, mainly in the construction and
 
mortgage portfolios, partially offset by a decrease
in
 
money
 
market
 
investments
 
and
 
held-to-maturity
 
(“HTM”)
 
investment
 
securities
 
driven
 
by
 
maturities
 
of
 
U.S.
 
Treasury
securities.
 
Deposits amounted
 
to $65.8 billion
 
at March 31,
 
2025, compared
 
to $64.9 billion
 
deposits at
 
December 31, 2024,
 
mainly
due to an increase in interest bearing deposits in BPPR and PB.
 
Stockholders’
 
equity
 
amounted to
 
$5.8 billion
 
at
 
March 31,
 
2025,
 
compared to
 
$5.6
 
billion
 
at December
 
31,
 
2024.
 
The
Corporation and its
 
banking subsidiaries continue
 
to be well-capitalized.
 
As of March 31,
 
2025, the Corporation’s
 
tangible
book value
 
per common
 
share was
 
$72.02, an
 
increase of
 
$3.86 from
 
December 31,
 
2024. The
 
Common Equity
 
Tier
 
1
Capital ratio at March 31, 2025 was 16.11%, compared
 
to 16.03% at December 31, 2024.
Refer to Table 1
 
for selected financial data for the quarters ended March 31, 2025 and March 31, 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
118
Table 1 - Financial highlights
Financial Condition Highlights
Ending Balances at
Average for the quarter ended
(In thousands)
March 31,
2025
 
December 31,
2024
Variance
March 31,
2025
March 31,
2024
Variance
Money market investments
$
6,195,028
$
6,380,948
$
(185,920)
$
6,379,085
$
6,483,615
$
(104,530)
Investment securities
27,375,396
26,244,977
1,130,419
28,446,090
27,698,252
747,838
Loans
 
[1]
37,259,109
37,113,075
146,034
37,006,149
35,059,391
1,946,758
Earning assets
70,829,533
69,739,000
1,090,533
71,831,324
69,241,258
2,590,066
Total assets
74,038,606
73,045,383
993,223
74,951,813
72,294,855
2,656,958
Deposits
65,819,255
64,884,345
934,910
65,858,092
64,032,945
1,825,147
Borrowings
1,090,417
1,176,126
(85,709)
959,211
1,056,673
(97,462)
Total liabilities
68,238,911
67,432,317
806,594
67,795,911
66,096,115
1,699,796
Stockholders’ equity
5,799,695
5,613,066
186,629
7,155,902
6,198,740
957,162
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
Quarter ended March 31,
(In thousands, except per share information)
2025
2024
 
Variance
Net interest income
$
605,597
$
550,744
$
54,853
Provision for credit losses
64,081
72,598
(8,517)
Non-interest income
152,061
163,818
(11,757)
Operating expenses
471,012
483,113
(12,101)
Income before income tax
222,565
158,851
63,714
Income tax expense
45,063
55,568
(10,505)
Net income
$
177,502
$
103,283
$
74,219
Net income applicable to common stock
$
177,149
$
102,930
$
74,219
Net income per common share - basic
$
2.56
$
1.43
$
1.13
Net income per common share - diluted
$
2.56
$
1.43
$
1.13
Dividends declared per common share
$
0.70
$
0.62
$
0.08
Quarter ended March 31,
Selected Statistical Information
2025
2024
Common Stock Data
 
End market price
$
92.37
$
88.09
 
Book value per common share at period end
83.75
71.32
Profitability Ratios
 
Return on average assets
0.96
%
0.57
%
 
Return on average common equity
10.07
6.07
 
Net interest spread (non-taxable equivalent basis)
2.74
2.38
 
Net interest spread (taxable equivalent basis) -non-GAAP
3.07
2.60
 
Net interest margin (non-taxable equivalent basis)
3.40
3.16
 
Net interest margin (taxable equivalent basis) -non-GAAP
3.73
3.38
Capitalization Ratios
 
Average equity to average assets
8.99
%
8.57
%
 
Common equity Tier 1 capital
16.11
16.36
 
Tangible common book value per common share (non-GAAP)
 
[2]
72.02
60.06
 
Return on average tangible common equity
 
[2]
11.36
6.90
 
Tier 1 capital
16.17
16.42
 
Total capital
17.92
18.19
 
Tier 1 leverage
8.50
8.45
[1] Includes loans held-for-sale.
[2] Refer to Table 10 for reconciliation to GAAP financial measures.
 
 
 
 
 
 
 
 
 
 
 
119
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
has
 
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.
There
 
were
 
no
 
non-GAAP
 
adjustments
 
to
 
net
 
income
 
for
 
the
 
quarter
 
ended
 
March
 
31,
 
2025.
 
The
 
following
 
table
presents the Adjusted net income for the quarter ended of March 31, 2024.
Table 2 - Adjusted Net Income for the Quarter Ended March 31, 2024 (Non-GAAP)
(Unaudited)
(In thousands)
Income before
 
income tax
Income tax
expense
(benefit)
Total
U.S. GAAP Net income
$158,851
$55,568
$103,283
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)
$179,538
$44,319
$135,219
[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 as the estimated loss is
 
periodically adjusted or if the total
amount collected varies.
[2] Income tax expense and other related expenses from prior periods, but recorded during the first quarter of
 
2024, related to withholding taxes on
certain distributions from U.S. subsidiaries.
120
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
 
4 for the quarter ended March
31, 2025, as compared with the same period in 2024, segregated by major categories of interest earning
 
assets and interest-bearing
liabilities. The interest earning
 
assets include investment
 
securities and loans that
 
are exempt from income
 
tax, principally in Puerto
Rico.
 
The main
 
sources of
 
tax-exempt interest
 
income are
 
certain 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.
 
To
 
facilitate the
 
comparison of
 
all interest
 
related to
 
these assets,
 
the interest
 
income
has been
 
converted to
 
a taxable
 
equivalent basis,
 
using the
 
applicable statutory
 
income tax
 
rates for
 
each period.
 
In addition,
 
this
measure is also impacted by a portion
 
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
 
attributed 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
 
attributed 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.
Net
 
interest
 
income,
 
on
 
a
 
taxable
 
equivalent
 
basis,
 
as
 
used
 
by
 
the Corporation
 
may
 
not
 
be
 
comparable
 
to
 
similarly
 
named
 
non-
GAAP financial measures used by other companies.
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
 
manner
 
in
 
which
 
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
 
9 provides
 
a reconciliation
 
of total
 
stockholders’ equity
 
to tangible
 
common equity
 
and total
 
assets to
 
tangible assets
 
as of
March 31, 2025, and December 31, 2024.
 
 
 
 
121
CRITICAL ACCOUNTING POLICIES / ESTIMATES
 
The accounting
 
and reporting
 
policies
 
followed by
 
the Corporation
 
and its
 
subsidiaries
 
conform to
 
generally
 
accepted accounting
principles
 
in
 
the
 
United
 
States
 
of
 
America
 
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.
 
These estimates
 
are made
 
under facts
 
and circumstances
 
at a
 
point in
 
time and
 
changes in
 
those facts
and circumstances could produce actual results that differ from those estimates.
 
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
The Corporation’s
 
net interest
 
income (“NII”)
 
for the
 
quarter ended March
 
31, 2025
 
was $605.6
 
million, compared
 
to
$550.7 million for the same
 
quarter of 2024, an increase
 
of $54.9 million. Net interest
 
income on a taxable equivalent
basis for the
 
first quarter of
 
2025 was $663.9
 
million, an increase
 
of $74.3 million.
 
Net interest margin
 
for the quarter
was 3.40%,
 
an increase
 
of 24
 
basis points.
 
On a
 
taxable equivalent
 
basis, net
 
interest margin
 
for the
 
first quarter
 
of
2025 was
 
3.73% or
 
35 basis points
 
higher. When
 
compared to
 
the same
 
period in 2024,
 
the increase in
 
net interest
margin
 
was
 
related
 
to
 
higher
 
average
 
interest-bearing
 
deposits
 
resulting
 
from
 
strategic
 
efforts
 
focused
 
on
 
deposit
retention and the launch of a
 
new product for mass affluent
 
customers in BPPR during the fourth
 
quarter of 2024, the
re-pricing of
 
certain high-cost
 
deposits that
 
are market
 
linked such
 
as the
 
P.R
 
public deposits,
 
stable low-cost
 
core
deposits,
 
higher
 
re-investment
 
activity
 
mainly
 
of
 
U.S.
 
Treasury
 
investment
 
securities
 
at
 
higher
 
yields,
 
and
 
higher
average loan
 
balances in
 
most portfolios.
 
The main
 
drivers of
 
net interest
 
income on
 
a taxable
 
equivalent basis
 
for
the first quarter of 2025 were:
 
higher income
 
from US
 
Treasury securities
 
by $32.4
 
million, due
 
to higher
 
investment activity
 
with average
balances increasing by $775.7 million when compared to the first quarter of 2024, at higher
 
yield by 52 basis
points,
 
 
higher income
 
from loans
 
by $31.2
 
million resulting
 
from higher
 
average balances
 
by $1.9
 
billion, mainly
 
in
the commercial portfolio by
 
$875.9 million, mortgage portfolio
 
by $444.6 million, the construction
 
portfolio by
$317.2
 
million
 
and
 
the
 
auto
 
portfolio
 
by
 
$144.2
 
million.
 
Loan
 
yields
 
for
 
the
 
auto,
 
leasing,
 
and
 
mortgage
portfolios
 
increased
 
when
 
compared
 
to
 
the
 
first
 
quarter
 
of
 
2024
 
and
 
mitigated
 
the
 
impact
 
in
 
net
 
interest
income of
 
the reduction
 
in yield
 
of the
 
commercial portfolio,
 
mainly due
 
to adjustable
 
rate loans,
 
and lower
yields in
 
the construction
 
portfolio in
 
Popular U.S.
 
When combined,
 
the loan
 
portfolio yield
 
remained flat
 
at
7.48%; and
 
lower
 
interest
 
expense
 
on
 
deposits
 
during
 
the
 
first
 
quarter
 
of
 
2025
 
by
 
$31.6
 
million
 
or
 
24
 
basis
 
points.
Average total interest-bearing
 
deposits increased by $2.2
 
billion, compared to
 
the first quarter
 
of 2024 while
the
 
cost
 
of
 
interest-bearing
 
deposits
 
decreased
 
by
 
35
 
basis
 
points.
 
This
 
reduction
 
was
 
mainly
 
due
 
to
 
the
repricing of
 
P.R
 
public deposits
 
which decreased
 
by 87
 
basis points
 
to 3.32%
 
and the
 
repricing of
 
non-PR
public deposit demand and
 
savings accounts, partially offset
 
by higher average balances
 
of time deposits in
PB by $679.1 million that when combined resulted in higher cost of time deposits by 23 basis points;
 
partially offset by:
 
 
lower interest
 
income from
 
money market
 
investments by
 
$18.4 million
 
or 103
 
basis points
 
mainly due
 
the
combination
 
of
 
lower
 
yield
 
resulting
 
from
 
the
 
decline
 
in
 
the
 
Federal
 
Funds
 
rates,
 
combined
 
with
 
lower
 
 
 
122
average volume
 
driven by
 
higher re-investment
 
activity in
 
U.S. Treasuries
 
and funds
 
used to
 
support loan
origination activity.
Net interest
 
income for
 
the Banco
 
Popular de
 
Puerto Rico
 
(“BPPR”) segment
 
amounted to
 
$521.9 million
 
during the
first quarter of 2025,
 
$49.1 million higher when
 
compared to $472.8 million
 
for the same quarter
 
of 2024. Net interest
margin
 
increased
 
30
 
basis
 
points
 
to
 
3.63%.
 
Total
 
deposits
 
cost
 
for
 
the
 
quarter
 
was
 
1.55%.
 
The
 
increase
 
in
 
net
interest
 
margin
 
was
 
driven
 
by
 
lower
 
cost
 
of
 
deposits
 
by
 
26
 
basis
 
points,
 
higher
 
loan
 
portfolio
 
average
 
balances
 
of
$1.5 billion
 
mainly in
 
the commercial,
 
mortgage and
 
auto portfolios,
 
and higher
 
yield of
 
investment securities
 
by 19
basis points,
 
partially offset
 
by lower
 
income in
 
money market
 
investments due
 
to lower
 
average balances
 
and yield
by $284.5 million and 95 basis points, respectively. The cost of interest-bearing deposits in BPPR decreased 38 basis
points
 
to
 
2.06%
 
driven
 
by
 
lower
 
cost
 
of
 
P.R.
 
public
 
deposits,
 
partially
 
offset
 
by
 
higher
 
cost
 
of
 
time
 
deposits
 
as
previously described above.
 
Net
 
interest
 
income
 
for
 
Popular
 
Bank
 
(“PB”,
 
or
 
“Popular
 
U.S.”)
 
segment
 
was
 
$92.9
 
million
 
for
 
the
 
quarter
 
ended
March 31, 2025, $8.1
 
million higher when compared
 
to the first
 
quarter of 2024,. Net
 
interest margin increased by
 
15
basis points to 2.74% when compared to
 
the first quarter of 2024. Total
 
cost of deposits decreased 31 basis points
 
to
3.09%.
 
The
 
increase
 
in
 
the
 
net
 
interest
 
margin
 
was
 
mainly
 
driven
 
by
 
lower
 
deposit
 
costs
 
in
 
most
 
interest-bearing
deposit products by
 
38 basis points,
 
higher average balance
 
and yield in
 
investment securities by
 
$144.1 million and
29 basis point, higher
 
average loan portfolio
 
balance by $455.3 million,
 
mainly in commercial
 
and construction loans,
with a
 
flat yield
 
when compared
 
with the
 
same period
 
in 2024,
 
partially offset
 
by lower
 
income from
 
money market
investments due to the decline in the Federal Funds rate.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
123
Table 3 - Analysis of Levels & Yields on a Taxable Equivalent Basis (Non-GAAP)
Quarter ended March 31,
Variance
Average Volume
Average Yields / Costs
Interest
Attributable to
2025
2024
Variance
2025
2024
 
Variance
2025
2024
Variance
Rate
Volume
(In millions)
(In thousands)
$
6,379
$
6,484
$
(105)
4.46
%
5.49
%
(1.03)
%
Money market investments
$
70,166
$
88,516
$
(18,350)
$
(16,944)
$
(1,406)
28,415
28,308
107
3.14
2.71
0.43
Investment securities [1]
220,435
191,103
29,332
27,299
2,033
31
33
(2)
5.82
3.75
2.07
Trading securities
 
440
311
129
156
(27)
Total money market,
 
investment and trading
34,825
34,825
-
3.38
3.23
0.15
securities
291,041
279,930
11,111
10,511
600
Loans:
18,489
17,613
876
6.71
6.84
(0.13)
Commercial
305,968
299,504
6,464
(8,172)
14,636
1,309
992
317
8.11
8.96
(0.85)
Construction
26,190
22,100
4,090
(2,429)
6,519
1,930
1,742
188
7.14
6.74
0.40
Leasing
34,444
29,353
5,091
1,813
3,278
8,168
7,723
445
5.82
5.62
0.20
Mortgage
118,917
108,543
10,374
3,985
6,389
3,203
3,227
(24)
14.04
13.90
0.14
Consumer
110,859
111,490
(631)
(196)
(435)
3,907
3,763
144
9.12
8.77
0.35
Auto
87,850
82,054
5,796
2,598
3,198
37,006
35,060
1,946
7.48
7.48
-
Total loans
684,228
653,044
31,184
(2,401)
33,585
$
71,831
$
69,885
$
1,946
5.49
%
5.36
%
0.13
%
Total earning assets
$
975,269
$
932,974
$
42,295
$
8,110
$
34,185
Interest bearing deposits:
$
27,543
$
25,703
$
1,840
2.87
%
3.63
%
(0.76)
%
NOW and money market [2]
$
194,610
$
232,129
$
(37,519)
$
(48,544)
$
11,025
14,510
14,700
(190)
0.87
0.93
(0.06)
Savings
 
31,304
34,171
(2,867)
(2,429)
(438)
9,123
8,547
576
3.20
2.97
0.23
Time deposits
71,949
63,196
8,753
3,384
5,369
51,176
48,950
2,226
2.36
2.71
(0.35)
Total interest bearing deposits
297,863
329,496
(31,633)
(47,589)
15,956
14,682
15,083
(401)
Non-interest bearing demand
deposits
65,858
64,033
1,825
1.83
2.07
(0.24)
Total deposits
297,863
329,496
(31,633)
(47,589)
15,956
121
84
37
4.77
5.70
(0.93)
Short-term borrowings
1,426
1,192
234
(198)
432
Other medium and
 
862
998
(136)
5.66
5.13
0.53
long-term debt
12,112
12,709
(597)
47
(644)
Total interest bearing
52,159
50,032
2,127
2.42
2.76
(0.34)
liabilities (excluding demand
deposits)
311,401
343,397
(31,996)
(47,740)
15,744
4,990
4,770
220
Other sources of funds
$
71,831
$
69,885
$
1,946
1.76
%
1.98
%
(0.22)
%
Total source of funds
311,401
343,397
(31,996)
(47,740)
15,744
Net interest margin/
 
3.73
%
3.38
%
0.35
%
income on a taxable
equivalent basis (Non-
GAAP)
663,868
589,577
74,291
$
55,850
$
18,441
3.07
%
2.60
%
0.47
%
 
Net interest spread
Taxable equivalent adjustment
58,271
38,833
19,438
Net interest margin/ income
3.40
%
3.16
%
0.24
%
non-taxable equivalent basis
(GAAP)
$
605,597
$
550,744
$
54,853
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.
[2] Includes interest bearing demand deposits corresponding to certain government entities in Puerto
 
Rico.
124
Provision for Credit Losses - Loans Held-in-Portfolio and Unfunded Commitments
For the
 
quarter ended
 
March 31,
 
2025, the
 
Corporation recorded
 
a provision
 
for credit
 
losses related
 
to loans
 
held-in-portfolio and
unfunded
 
commitments
 
of
 
$63.9
 
million,
 
a
 
decrease
 
of
 
$8.2
 
million,
 
compared
 
to
 
the
 
same
 
quarter
 
of
 
the
 
previous
 
year.
 
The
provision for the loan
 
portfolio was $65.2 million,
 
a decrease of $7.2 million.
 
For the quarter ended
 
March 31, 2025, the
 
Corporation
recorded a
 
provision for
 
credit benefit
 
related to
 
unfunded commitments
 
of $1.3
 
million, driven
 
by lower
 
unfunded commitments
 
at
the PB
 
segment. Refer
 
to Note
 
8 to
 
the Consolidated
 
Financial Statements
 
for details
 
of the
 
movement of
 
the allowance
 
for credit
losses.
 
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. In response to the current economic uncertainty,
 
the Corporation increased the
probability weight assigned to the pessimistic scenario. The additional reserves generated by this increase as well as the major
drivers of the changes in the provision for loan losses by business segment, when compared to the same quarter in 2024,
 
were as
follows:
 
In the BPPR segment, the provision for loans losses decreased by $8.3
million, to $52.7
million for the quarter ended
March 31, 2025. The increase in the probability weight assigned to the pessimistic scenario generated $11.3
 
million in
additional reserves. However, lower net charge-offs by
 
$9.5 million, mainly in commercial and consumer loans,
contributed to offsetting the impact of the increase in probability weights assigned to the pessimistic scenario.
 
Lower loan
volumes and improvement in credit quality for commercial and consumer loans also contributed to a lower provision
 
for
loan losses when compared to the first quarter of 2024.
In the Popular U.S. segment, the provision for loans losses increased by $1.2 million when compared to March 31, 2024,
to $12.5 million for the quarter ended March 31, 2025. The increase in the probability weight assigned to the pessimistic
scenario accounts for approximately $6.9 million of the $12.5 million provision expense. Excluding the effect
 
of the
increase in probability weights, the provision for loan losses for the Popular U.S. segment shows a reduction of
approximately $5.7 million when compared to the first quarter of 2024. This reduction is mainly driven by stable credit
quality in the commercial portfolio and lower net charge-offs for consumer loans.
 
At March
 
31, 2025,
 
the total
 
allowance for
 
credit losses
 
for loans
 
held-in-portfolio amounted
 
to $762.1
 
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 2.05% at March
 
31, 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
 
was
 
$152.1
 
million
 
for
 
the
 
first
 
quarter
 
of
 
2025,
 
a
 
decrease
 
of
 
$11.8
 
million
 
when
 
compared
 
with
 
the
 
same
quarter
 
of
 
the
 
previous
 
year.
 
The
 
variance
 
in
 
non-interest
 
income
 
was
 
primarily
 
due
 
to
 
lower
 
other
 
operating
 
income
 
by
 
$12.0
million, mainly
 
due to
 
lower fee
 
income and
 
to lower
 
daily car
 
rental revenue
 
by $4.9
 
million and
 
lower gains
 
from the
 
sale of
 
car
rental units
 
by $3.4
 
million, both
 
due to
 
the sale
 
completed by
 
Popular Auto
 
LLC, a
 
wholly-owned subsidiary
 
of Banco
 
Popular de
Puerto Rico, of its daily car rental business during the fourth quarter of 2024.
Operating Expenses
Operating expenses
 
of $471.0
 
million for
 
the quarter
 
ended March
 
31, 2025
 
decreased by
 
$12.1 million
 
when compared
 
with the
same quarter
 
of 2024.
 
Excluding the
 
$6.4 million
 
interest expense
 
related to
 
prior period
 
taxes and
 
the $14.3
 
million impact
 
of the
FDIC Special Assessment
 
in the first
 
quarter of 2024
 
total operating expenses
 
for the first
 
quarter of 2025
 
were $8.6 million
 
higher.
Factors that contributed to the variance in operating expenses were:
 
higher other taxes expense
 
by $4.4 million mainly
 
due to higher regulatory
 
examination fees and an
 
increase in municipal
license tax in Puerto Rico;
125
 
higher technology
 
and software
 
expenses by
 
$4.2 million
 
mainly due
 
to higher
 
software amortization
 
expense related
 
to
transformation initiatives;
 
higher other
 
processing
 
and transactional
 
services expenses
 
by $2.8
 
million mainly
 
due to
 
higher merchant
 
processing
expenses due to higher volume of transactions and higher debit and credit card issuance costs;
 
higher
 
business
 
promotion
 
expenses
 
by
 
$2.7
 
million
 
mainly
 
due
 
to
 
higher
 
customer
 
rewards
 
programs
 
expense
 
in
 
our
credit card business; and
 
lower other real estate owned (OREO) benefit by $2.0 million mainly due to lower gain on sale of mortgage properties;
partially offset by:
 
lower equipment expense
 
by $4.3 million,
 
mainly due to a
 
decrease in daily
 
rental vehicle fleet
 
depreciation as a
 
result of
the vehicles sold as part of the daily car rental business transaction;
 
lower personnel
 
cost by
 
$2.7 million
 
mainly due
 
to a
 
decrease in
 
health insurance
 
costs by
 
$2.8 million,
offset by
 
higher
salaries due to a higher headcount and salary increases; and
 
lower professional fees by $2.1 million mainly due to lower advisory expenses related to corporate initiatives.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
126
Table 4 - Operating Expenses
Quarters ended March 31,
(In thousands)
2025
2024
Variance
Personnel costs:
Salaries
$
130,950
$
129,384
$
1,566
Commissions, incentives and other bonuses
37,986
38,611
(625)
Pension, postretirement and medical insurance
14,566
17,385
(2,819)
Other personnel costs, including payroll taxes
29,211
29,997
(786)
Total personnel costs
212,713
215,377
(2,664)
Net occupancy expenses
27,218
28,041
(823)
Equipment expenses
5,302
9,567
(4,265)
Other taxes
18,725
14,375
4,350
Professional fees
26,825
28,918
(2,093)
Technology and software expenses
83,668
79,462
4,206
Processing and transactional services:
Credit and debit cards
12,926
12,144
782
Other processing and transactional services
24,855
22,050
2,805
Total processing and transactional services
37,781
34,194
3,587
Communications
4,904
4,557
347
Business promotion:
Rewards and customer loyalty programs
16,365
14,056
2,309
Other business promotion
7,310
6,933
377
Total business promotion
23,675
20,989
2,686
Deposit insurance
10,035
23,887
(13,852)
Other real estate owned (OREO) expense (income)
(3,330)
(5,321)
1,991
Other operating expenses:
Operational losses
6,138
3,561
2,577
All other
16,761
24,711
(7,950)
Total other operating expenses
22,899
28,272
(5,373)
Amortization of intangibles
597
795
(198)
Total operating expenses
$
471,012
$
483,113
$
(12,101)
Income Taxes
For the
 
quarter ended
 
March 31,
 
2025, the
 
Corporation recorded
 
an income
 
tax expense
 
of $45.1
 
million and
 
an ETR
 
of 20.2%,
compared to $55.6
 
million and an
 
ETR of 35.0%
 
for the same
 
period of year
 
2024. The lower
 
income tax expense
 
of $10.5 million,
when compared
 
to the
 
same
 
period
 
of 2024,
 
is
 
due
 
to certain
 
tax
 
withholding
 
expenses
 
of $22.9
 
million
 
related to
 
intercompany
distributions for years 2014-2024,
 
as disclosed in Note 34
 
to the Consolidated Financial
 
Statements in the Corporation’s
 
2024 Form
10K. This
 
was
 
partially
 
offset
 
due
 
to higher
 
income
 
before
 
tax,
 
net
 
of higher
 
exempt
 
income,
 
recorded
 
during
 
the
 
first
 
quarter
 
of
2025.
 
Excluding
 
the
 
impact
 
of
 
the
 
withholding
 
tax
 
liabilities
 
and
 
the
 
additional
 
expense
 
related
 
to
 
the
 
FDIC
 
Special
 
Assessment
during the first quarter of 2024, the ETR would have been 24.7%.
At March 31, 2025, the Corporation
 
had a net deferred tax asset amounting
 
to $885.8 million, net of a valuation
 
allowance of $462.5
million. The net deferred tax asset related to the U.S. operations was $247.0 million, net of a valuation allowance of $386.9
 
million.
Refer to
 
Note 30
 
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.
 
 
 
 
 
127
 
For
 
a
 
description
 
of
 
the
 
Corporation’s
 
reportable
 
segments,
 
including
 
additional
 
financial
 
information
 
and
 
the
 
underlying
management accounting process, refer to Note 32 to the Consolidated Financial Statements.
 
The Corporate
 
group reported
 
a net
 
loss of
 
$3.6 million
 
for the
 
quarter ended
 
March 31,2025,
 
compared with
 
a net
 
loss of
 
$25.4
million for the same quarter of the previous year. The positive
 
variance was attributed 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
 
for
 
the
 
tax
 
impact
 
of
 
intercompany
 
distributions
 
paid
 
during
 
that
 
quarter
 
2024.
 
There
 
were
 
no
 
intercompany
 
distributions
between the U.S. subsidiaries and the BHC during the first quarter of 2025.
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
 
$165.9
 
million
 
for
 
the
 
quarter
 
ended
 
March
31,2025, compared
 
with net
 
income of
 
$121.3 million
 
for the same
 
quarter of
 
the previous
 
year. The
 
factors that
 
contributed to
 
the
variance in the financial results included the following:
 
 
Higher net interest income by $49.1 million mainly due to:
 
lower
 
interest
 
expense
 
on
 
deposits
 
by
 
$30.8
 
million,
 
or
 
38
 
basis
 
points;
 
mainly
 
due
 
to
 
the
 
re-pricing
 
of
 
P.R
public
 
deposits,
 
which
 
decreased
 
by
 
28.7
 
million
 
or
 
87
 
basis
 
points,
 
and
 
the
 
repricing
 
of
 
demand
 
deposit
accounts;
 
higher interest income from
 
loans by $22.4 million;
 
mainly due to higher
 
average balances from mortgage,
 
auto
and commercial
 
loans; lower
 
yields resulting
 
from the
 
repricing of
 
commercial loans
 
were partially
 
offset
 
by a
higher yield from the auto loans and leases portfolio; and
 
higher interest
 
income from
 
investment securities
 
by $11.3
 
million, or 23
 
basis points,
 
due to higher
 
yields and
higher average balances due to the investment in U.S. Treasuries;
partially offset by:
 
lower interest
 
income from
 
money market
 
and investment
 
securities by
 
$15.9 million,
 
or 95
 
basis point;
 
due to
lower
 
average
 
balances
 
as
 
the
 
liquidity
 
was
 
deployed
 
to
 
purchase
 
investment
 
securities
 
and
 
investment
 
in
loans, and lower yields due to the decline in the Federal Funds rates.
The
 
net
 
interest
 
margin
 
for
 
the
 
quarter
 
ended
 
March
 
31,2025
 
was
 
3.63%
 
compared
 
to
 
3.33%
 
for
 
the
 
same
 
quarter
 
in
 
the
previous year.
 
The increase
 
in net
 
interest margin
 
is driven
 
by the
 
earnings assets
 
mix and
 
the higher
 
yields from
 
investment
securities and lower cost of deposits, partially offset by lower yields from money market investments.
 
A provision
 
for loan losses
 
of $52.7 million
 
in 2025, compared
 
to a
 
provision of
 
$61.0 million
 
in the quarter
 
ended March
31, 2024,
 
or a
 
favorable variance
 
of $8.3
 
million, due
 
to lower
 
provision
 
expense mainly
 
for commercial
 
and consumer
loans
 
driven
 
by
 
lower
 
NCOs
 
and
 
lower
 
volumes,
 
partially
 
offset
 
by
 
adjustments
 
to
 
cover
 
for
 
the
 
uncertainties
 
in
 
the
economic outlook;
A
higher provision for unfunded commitments by $0.9 million driven by the commercial portfolio;
 
Non-interest income was lower by $8.2 million mainly due to:
 
lower
 
other
 
operating
 
income
 
by
 
$9.6
 
million
 
mostly
 
due
 
to
 
a
 
decrease
 
in
 
daily
 
revenue
 
by
 
$4.9
 
million
 
and
lower gains from the
 
sale of car rental
 
units by $3.4 million,
 
both due to the sale
 
of the daily car
 
rental business
completed by Popular Auto LLC, during the fourth quarter of 2024; and lower service fee income by $1.3 million.
 
128
partially offset by:
 
higher service charges on deposit accounts by $1.4 million mainly due to non-balance compensation fees.
 
Lower operating expenses by $2.8 million mostly due to:
 
lower
 
deposit
 
insurance
 
expense
 
by
 
$12.4
 
million
 
mostly
 
due
 
to
 
FDIC
 
Special
 
Assessment
 
of
 
$12.7
 
million
recorded in the first quarter of 2024;
 
lower equipment expenses
 
by $4.2 million
 
mainly due to
 
a decrease in
 
daily rental vehicle
 
fleet depreciation as
a result of the sale of the daily car rental business; and
 
lower personnel
 
costs by
 
$1.6 million
 
driven by
 
a decrease
 
in health
 
insurance costs;
 
partially offset
 
by higher
salaries due to higher headcount and salary increases;
partially offset by
 
higher other operating taxes by $4.2 million mainly due to higher regulatory
 
examination fees and an increase in
municipal license tax;
 
higher
 
processing
 
and
 
transactional
 
services
 
expenses
 
by
 
$3.6
 
million
 
due
 
to
 
higher
 
merchant
 
processing
expenses and higher debit and credit card issuance costs;
 
higher
 
business
 
promotions
 
by
 
$2.3
 
million
 
due
 
to
 
higher
 
customer
 
rewards
 
expense
 
from
 
our
 
credit
 
cards
business;
 
higher other operating expenses by $2.1
 
million driven by the release of a
 
mortgage servicing related reserve in
2024;
 
lower net recoveries from OREO by $2.0 million mainly due to lower gain on sale of mortgage properties; and
 
higher technology
 
and software expenses
 
by $1.0 million
 
mainly due to
 
higher amortization
 
of software related
to transformation initiatives.
 
Higher income
 
tax expense
 
by $6.2
 
million is
 
mainly due
 
to higher
 
income before
 
tax; partially
 
offset
 
by higher
 
exempt
income and other tax credits recorded during the first quarter of 2025.
 
Popular U.S.
For the
 
quarter ended
 
March 31,
 
2025, the
 
reportable segment
 
of Popular
 
U.S. reported
 
a net
 
income of
 
$14.8 million,
 
compared
with
 
a
 
net
 
income
 
of
 
$7.0
 
million
 
for
 
the
 
same
 
quarter
 
of
 
the
 
previous
 
year.
 
The
 
factors
 
that
 
contributed
 
to
 
the
 
variance
 
in
 
the
financial results included the following:
 
Higher net interest income by $8.1 million due to:
 
higher interest
 
income from
 
loans by
 
$5.6 million,
 
or 2
 
basis points,
 
mainly from
 
growth in
 
the commercial
 
and
construction portfolios;
 
lower interest
 
expense
 
on deposits
 
by $4.5
 
million mainly
 
due to
 
lower costs
 
on savings
 
accounts and
 
NOW
accounts; and
 
 
129
 
higher interest income
 
from investment securities
 
by $2.0 million
 
mainly due to
 
higher average balance
 
of U.S.
Treasury securities;
partially offset by:
 
lower
 
interest
 
income
 
from
 
money
 
market
 
investment
 
by
 
$4.0
 
million
 
due
 
to
 
lower
 
yields
 
as
 
a
 
result
 
of
 
the
decrease in short term rates.
The net interest
 
margin for the
 
quarter ended
 
March 31, 2025
 
was 2.74% compared
 
to 2.59% for
 
the same quarter
 
in the previous
year driven by lower cost of deposits.
 
An
 
unfavorable
 
variance
 
of
 
$1.2
 
million
 
on
 
the
 
provision
 
for
 
loan
 
losses
 
mainly
 
due
 
to
 
a
 
adjustments
 
to
 
cover
 
the
uncertainty in the economic outlook, offset by credit quality metrics and lower net change offs for consumer
 
loans;
 
A favorable variance of $2.0 million in the provision for unfunded commitments mainly related to the construction portfolio
 
;
 
 
Lower operating expenses by $3.1 million mostly due to:
 
 
lower personnel costs expense by $1.7 million due to lower vacations accrual;
 
lower deposit
 
insurance expense
 
by $1.5
 
million mostly
 
due to
 
FDIC Special
 
Assessment adjustment
 
of $1.6
million recorded in the first quarter of 2024; and
 
lower other operating expenses by
 
$0.5 million due to lower operational
 
losses of $1.2 million; partially
 
offset by
charges allocated from the Corporate group by $1.0 million.
 
Higher income tax expense by $3.2 million due to higher net income before tax.
STATEMENT
 
OF FINANCIAL CONDITION ANALYSIS
 
Assets
The Corporation’s total
 
assets were $74.0 billion
 
at March 31, 2025,
 
compared to $73.0 billion
 
at December 31, 2024.
 
The variance
in total assets
 
of $1.0 billion
 
was driven by
 
an increase in
 
debt securities
 
available-for-sale (“AFS”) and
 
loan growth, partially
 
offset
by a decrease
 
in money market
 
investments and Debt
 
securities held-to-maturity
 
(“HTM”). 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 $185.9 million as of March 31, 2025, when compared to December 31,
 
2024, driven by the
deployment
 
of
 
funds
 
to
 
purchase
 
investments
 
in
 
U.S.
 
Treasury
 
securities
 
and
 
support
 
loan
 
growth.
 
AFS
 
increased
 
$1.2
 
billion,
mainly due to
 
investment in U.S.
 
Treasury Securities
 
and the decrease
 
in the unrealized
 
losses of AFS
 
securities of $169.0
 
million,
partially offset
 
by maturities
 
and principal
 
paydowns. HTM
 
decreased by
 
$109.4 million
 
driven by
 
maturities, partially
 
offset by
 
the
amortization of
 
$45.3 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.
 
130
Loans
Refer to Table
 
5 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 $146.4 million to
 
$37.3 billion at March
 
31, 2025,
 
compared to December 31,
 
2024, mainly due
to an increase
 
of $200.8
 
million in
 
the PB
 
segment across
 
most portfolios,
 
particularly commercial
 
and construction
 
loans, partially
offset by
 
a decrease
 
of $54.4
 
million in
 
the BPPR
 
segment, mainly
 
in the
 
commercial portfolio,
 
driven by
 
certain large
 
relationship
prepayments during the first quarter of 2025.
Despite growing uncertainty about the economic outlook, demand for credit in
 
BPPR remains strong. Loan growth in the quarter was
slower
 
after
 
a
 
very
 
strong
 
origination
 
activity
 
during
 
the
 
fourth
 
quarter
 
in
 
2024.
 
Mortgage
 
loan
 
balances
 
at
 
BPPR
 
increased
 
by
$136.1 million
 
in the first
 
quarter, driven
 
primarily by
 
home purchase
 
activity and
 
auto loan
 
and lease
 
balances increased
 
by $21.1
million compared to
 
the fourth quarter as
 
demand for new cars
 
continued to be strong
 
in Puerto Rico.
 
In PB, demand for
 
credit was
stable
 
during
 
the
 
first
 
quarter
 
as
 
we
 
continued
 
to
 
benefit
 
from
 
draws
 
from
 
ongoing
 
construction
 
projects
 
and
 
loan
 
growth
 
in
 
our
healthcare and community
 
association lending businesses.
 
Nonetheless, the impact
 
of trade and
 
tariff policies
 
on economic activity
may affect loan demand as uncertainty on the short-term economic outlook exists.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
131
Table 5 - Loans Ending Balances
(In thousands)
March 31, 2025
December 31, 2024
Variance
Loans held-in-portfolio:
Commercial
 
 
Commercial multi-family
$
2,374,915
$
2,399,620
$
(24,705)
 
Commercial real estate non-owner occupied
5,540,603
5,363,235
177,368
 
Commercial real estate owner occupied
2,956,559
3,157,746
(201,187)
 
Commercial and industrial
7,693,523
7,741,562
(48,039)
Total Commercial
18,565,600
18,662,163
(96,563)
Construction
1,358,979
1,263,792
95,187
Leasing
1,949,705
1,925,405
24,300
Mortgage
8,273,753
8,114,183
159,570
Consumer
 
Credit cards
 
1,187,777
1,218,079
(30,302)
 
Home equity lines of credit
77,109
73,571
3,538
 
Personal
 
1,850,023
1,855,244
(5,221)
 
Auto
3,820,242
3,823,437
(3,195)
 
Other
170,844
171,778
(934)
Total Consumer
 
7,105,995
7,142,109
(36,114)
Total loans held-in-portfolio
$
37,254,032
$
37,107,652
$
146,380
Loans held-for-sale:
 
Mortgage
$
5,077
$
5,423
$
(346)
Total loans held-for-sale
$
5,077
$
5,423
$
(346)
Total loans
$
37,259,109
$
37,113,075
$
146,034
 
 
132
Other assets
Other assets
 
amounted to
 
$1.7 billion
 
at March
 
31, 2025,
 
a decrease
 
of $55.2
 
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
 
approximately $38.9
 
million due
 
to positive
changes
 
in
 
the
 
valuation
 
of
 
AFS
 
securities,
 
a
 
reduction
 
in
 
unsettled
 
trade
 
receivables
 
of
 
$14.6
 
million
 
related
 
to
 
proceeds
 
from
maturities of U.S. Treasury
 
securities,
 
and lower prepaid taxes
 
by $8.1 million, partially
 
offset by an increase
 
in capitalized software
costs
 
of
 
approximately
 
$22.6
 
million
 
mainly
 
related
 
to
 
transformation
 
initiatives.
 
Refer
 
to
 
Note
 
12
 
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 March 31, 2025 and December 31, 2024.
 
Liabilities
The Corporation’s
 
total liabilities were
 
$68.2 billion at
 
March 31, 2025,
 
an increase of
 
$806.6 million, 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 $65.8
 
billion as of
 
March 31, 2025,
 
compared to
 
$64.9 billion as
 
of December 31,
 
2024. Ending
deposit balances increased by $934.9 million, while
 
average balances grew by $1.6 billion. Average
 
deposit balance, excluding P.R.
public deposits,
 
increased by
 
$663.7 million.
 
At the
 
end of
 
the first
 
quarter of
 
2025, Puerto
 
Rico public
 
deposits were
 
$19.6 billion,
an
 
increase
 
of
 
approximately
 
$159.2
 
million
 
when
 
compared
 
to
 
the
 
previous
 
quarter.
 
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
 
any
 
federal
 
assistance
 
is
 
distributed,
 
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 and average
 
deposits each grew
 
by approximately $400
 
million and at PB,
ending
 
deposit
 
balances
 
increased
 
by
 
approximately
 
$250
 
million,
 
net
 
of
 
intercompany
 
activity.
 
Total
 
deposits
 
continue
 
to
 
be
 
on
average higher than pre-pandemic balances by approximately 35%.
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 6
 
for a breakdown of the Corporation’s deposits at March 31, 2025 and December 31, 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
133
Table 6 - Deposits Ending Balances
(In thousands)
March 31, 2025
December 31, 2024
Variance
Deposits excluding P.R. public deposits:
 
Demand deposits
$
15,160,801
$
15,139,555
$
21,246
 
Savings, NOW and money market deposits (non-brokered)
21,855,151
21,177,506
677,645
 
Savings, NOW and money market deposits (brokered)
822,065
736,225
85,840
 
Time deposits (non-brokered)
7,545,252
7,476,924
68,328
 
Time deposits (brokered CDs)
813,326
890,704
(77,378)
Sub-total deposits excluding P.R. public deposits
46,196,595
45,420,914
775,681
P.R. public deposits:
 
Demand deposits
 
[1]
11,157,254
11,730,273
(573,019)
 
Savings, NOW and money market deposits (non-brokered)
7,655,847
7,087,904
567,943
 
Time deposits (non-brokered)
809,559
645,254
164,305
Sub-total P.R. public deposits
19,622,660
19,463,431
159,229
Total deposits
$
65,819,255
$
64,884,345
$
934,910
[1] Includes interest bearing demand deposits.
 
Borrowings
The Corporation’s
 
borrowings totaled
 
$1.1 billion at
 
March 31,
 
2025 compared
 
to $1.2 billion
 
at December 31,
 
2024. Refer
 
to Note
15
 
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 $5.8
 
billion at
 
March 31,
 
2025, an
 
increase of
 
$186.6 million
 
when compared
 
to December
 
31, 2024.
The increase was
 
principally due to
 
net income for
 
the quarter ended
 
March 31, 2025
 
of $177.5 million,
 
coupled with a
 
decrease in
net unrealized
 
losses in
 
the portfolio
 
of AFS
 
securities of
 
$140.2 million
 
and the
 
amortization of
 
unrealized losses
 
from securities
previously
 
reclassified
 
to
 
HTM
 
of
 
$36.2
 
million,
 
net
 
of
 
taxes,
 
partially
 
offset
 
by
 
an
 
increase
 
in
 
Treasury
 
Stock
 
of
 
$117.6,
 
million,
mainly
 
due
 
to
 
the
 
repurchase
 
of
 
1.3
 
million
 
shares
 
of
 
common
 
stock
 
for
 
$122.3
 
million
 
during
 
the
 
first
 
quarter
 
of
 
2025,
 
and
 
the
common and
 
preferred dividends
 
declared during
 
the quarter
 
of $48.8
 
million.
 
Refer to
 
the Consolidated
 
Statements
 
of Financial
Condition, Comprehensive Income and Changes in Stockholders’ Equity for information on the composition of stockholders’
 
equity.
The composition of the Corporation’s financing to total assets at March 31, 2025 and December 31, 2024
 
is included in Table
 
7.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
134
Table 7 - Financing to Total Assets
March 31,
December 31,
 
% (decrease) increase
% of total assets
(Dollars in millions)
2025
2024
from 2023 to 2024
2025
2024
Non-interest bearing core deposits
$
15,161
$
15,139
0.1
%
20.5
%
20.7
%
Interest-bearing core deposits
45,386
44,622
1.7
61.3
61.1
Interest-bearing other deposits
5,272
5,123
2.9
7.1
7.0
Repurchase agreements
57
55
3.6
0.1
0.1
Other short-term borrowings
200
225
(11.1)
0.3
0.3
Notes payable
833
896
(7.0)
1.1
1.2
Other liabilities
1,330
1,372
(3.1)
1.8
1.9
Stockholders’ equity
5,800
5,613
3.3
7.8
7.7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
135
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 March 31, 2025, the
 
Corporation’s, BPPR’s and
 
PB’s capital ratios continue
 
to exceed the minimum requirements
 
for being “well-
capitalized” under the Basel III capital rules.
 
The
 
risk-based
 
capital
 
ratios
 
presented
 
in
 
Table
 
8,
 
which
 
include
 
common
 
equity
 
tier
 
1,
 
Tier
 
1
 
capital,
 
total
 
capital
 
and
 
leverage
capital as of March 31, 2025 and December 31, 2024.
Table 8 - Capital Adequacy Data
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
March 31, 2025
 
 
December 31, 2024
 
Common equity tier 1 capital:
 
 
 
 
 
 
Common stockholders equity - GAAP basis
$
5,777,552
$
5,590,923
CECL transitional amount
 
[1]
-
42,375
AOCI related adjustments due to opt-out election
1,411,976
1,589,875
Goodwill, net of associated deferred tax liability (DTL)
(655,427)
(657,181)
Intangible assets, net of associated DTLs
(6,229)
(6,826)
Deferred tax assets and other deductions
 
(232,043)
(296,374)
Common equity tier 1 capital
$
6,295,829
$
6,262,792
Additional tier 1 capital:
Preferred stock
22,143
22,143
Additional tier 1 capital
$
22,143
 
$
22,143
Tier 1 capital
$
6,317,972
 
$
6,284,935
 
Tier 2 capital:
Trust preferred securities subject to phase in as tier 2
192,674
192,674
Other inclusions (deductions), net
491,840
490,594
Tier 2 capital
$
684,514
$
683,268
Total risk-based capital
 
$
7,002,486
 
$
6,968,203
 
Minimum total capital requirement to be well capitalized
$
3,907,746
 
$
3,907,346
 
Excess total capital over minimum well capitalized
$
3,094,740
 
$
3,060,857
 
Total risk-weighted assets
$
39,077,458
 
$
39,073,462
 
Total assets for leverage ratio
$
74,291,505
 
$
72,593,464
 
Risk-based capital ratios:
 
 
 
 
 
 
Common equity tier 1 capital
16.11
%
16.03
%
 
Tier 1 capital
 
 
16.17
 
16.08
 
Total capital
 
17.92
 
 
17.83
 
 
Tier 1 leverage
 
8.50
 
 
8.66
 
[1] The CECL transitional amount includes the impact of Popular's adoption of the new CECL accounting
 
standard on January 1, 2020.
136
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 March
31, 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.
 
In the
 
first quarter
 
of 2025,
 
the
Corporation had phased-in all the cumulative CECL deferral over the three-year transition period.
The increase in the common equity Tier I
 
capital ratio, Tier I capital ratio, and total capital
 
ratio as of March 31, 2025 as compared to
December
 
31,
 
2024
 
was
 
mainly
 
due
 
to
 
the
 
three
 
months
 
period
 
earnings,
 
partially
 
offset
 
by
 
the
 
repurchase
 
of
 
shares
 
under
 
the
common stock authorization plan
 
and common stock dividends.
 
The decrease in the leverage
 
capital ratio was mainly
 
due to higher
average assets, which mostly did not have a significant impact on the risk-weighted assets,
 
partially offset by the period earnings.
Reconciliation to Tangible Common Equity
 
and Tangible Assets
Table
 
9 provides
 
a reconciliation
 
of total
 
stockholders’ equity
 
to tangible
 
common equity
 
and total
 
assets to
 
tangible assets
 
as of
March 31, 2025, and December 31, 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
137
Table 9 - Reconciliation of Tangible Common Equity and Tangible Assets
(In thousands, except share or per share information)
March 31, 2025
December 31, 2024
Total stockholders’ equity
$
5,799,695
$
5,613,066
Less: Preferred stock
(22,143)
(22,143)
Less: Goodwill
(802,954)
(802,954)
Less: Other intangibles
(6,229)
(6,826)
Total tangible common equity
$
4,968,369
$
4,781,143
Total assets
 
$
74,038,606
$
73,045,383
Less: Goodwill
(802,954)
(802,954)
Less: Other intangibles
(6,229)
(6,826)
Total tangible assets
$
73,229,423
$
72,235,603
Tangible common equity to tangible assets
6.78
%
6.62
%
Common shares outstanding at end of period
68,984,148
70,141,291
Tangible book value per common share
$
72.02
$
68.16
Quarterly average
Total stockholders’ equity [1]
$
6,785,208
$
6,620,766
Average unrealized (gains) losses on AFS securities transferred to HTM
 
370,695
505,791
Adjusted total stockholder's equity
7,155,903
7,126,557
Less: Preferred Stock
(22,143)
(22,143)
Less: Goodwill
(802,953)
(804,411)
Less: Other intangibles
(6,585)
(7,288)
Total tangible common equity
$
6,324,222
$
6,292,715
Return on average tangible common equity
11.36
%
11.22
%
 
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale.
 
138
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
 
$19.5
 
billion
 
and
 
$7.6
 
billion,
respectively,
 
as of
 
March 31,
 
2025. Other
 
assets subject
 
to market
 
risk include
 
loans held-for-sale,
 
which amounted
 
to $5
 
million,
mortgage servicing
 
rights (“MSRs”)
 
which amounted
 
to $105
 
million, and
 
securities classified
 
as “trading”,
 
which amounted
 
to $28
million, each as of March 31, 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 is prepared for a five-year period,
 
which in conjunction with the EVE
 
analysis, provides management a better view
 
of long-
term IRR.
Net
 
interest
 
income
 
simulation
 
analysis
 
performed
 
by
 
legal
 
entity
 
and
 
on
 
a
 
consolidated
 
basis
 
is
 
used
 
to
 
estimate
 
the
 
potential
change
 
in
 
net
 
interest
 
income
 
resulting
 
from
 
hypothetical
 
changes
 
in
 
interest
 
rates.
 
Sensitivity
 
analysis
 
is
 
calculated
 
using
 
a
simulation model which incorporates actual balance sheet figures detailed by maturity and interest yields or costs.
 
Management assesses
 
interest rate risk
 
by comparing various
 
NII simulations
 
under different
 
interest rate scenarios
 
to assess
 
the,
degree of
 
change and
 
the projected
 
shape of
 
the yield
 
curve. Management
 
also performs
 
analyses to
 
isolate and
 
measure basis
and
 
prepayment
 
risk
 
exposures.
 
These
 
models
 
are
 
periodically
 
monitored.
 
Assumptions
 
are
 
validated
 
by
 
management
 
and
 
are
subject to independent validations according to the Corporations’ Model Governance Policy.
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 March 31, 2025 and
December 31, 2024, assuming a static balance sheet and parallel changes over flat spot rates over a one-year time horizon:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
139
Table 10 - Net Interest Income Sensitivity (One Year Projection)
March 31, 2025
December 31, 2024
(Dollars in thousands)
Amount Change
Percent Change
Amount Change
Percent Change
Change in interest rate
+200 basis points
49,759
1.94
44,747
1.78
+100 basis points
24,206
0.94
22,917
0.91
-100 basis points
(26,216)
(1.02)
9,157
0.36
-200 basis points
(46,432)
(1.81)
588
0.02
As of March 31, 2025, NII simulations show the Corporation maintains an asset sensitive position that is fairly
 
symmetric in the rising
declining
 
and
 
rates
 
scenarios.
 
Sensitivity
 
variation
 
and
 
the
 
resulting
 
sensitivity
 
profile
 
are
 
mainly
 
driven
 
by
 
updated
 
deposit
 
beta
model assumptions that reflect lower elasticity in
 
declining rate scenarios, combined with changes in
 
balance sheet composition that
primarily
 
include
 
a
 
rise
 
in
 
short-term
 
U.S
 
Treasury
 
Bills
 
(“T-
 
Bills”)
 
and
 
growth
 
in
 
low-cost
 
retail
 
and
 
commercial
 
deposits,
 
while
market-linked
 
Puerto
 
Rico
 
public
 
sector
 
deposits
 
remained
 
relatively
 
unchanged.
 
In
 
more
 
severe
 
declining
 
rate
 
scenarios,
 
the
reduction in net interest income
 
is driven by the updated
 
deposit beta assumptions that
 
generate higher interest expense
 
estimates,
combined with a decline in
 
interest income due to the
 
repricing of short-term assets
 
and variable rate loans. In
 
rising rate scenarios,
Popular’s net interest
 
income would
 
also be
 
impacted due
 
to its
 
large proportion
 
of Puerto
 
Rico public
 
sector deposit,
 
however the
repricing of assets as they either reset or mature would lead to an increase in net interest income.
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 March 31,
 
2025,
 
the Corporation held
 
trading securities
 
with a fair
 
value of $28
 
million, representing approximately
 
0.04% of the
Corporation’s total
 
assets, compared
 
with $33
 
million and
 
0.05%, respectively,
 
at December
 
31, 2024.
 
As shown
 
in Table
 
11,
 
the
trading portfolio
 
consists principally
 
of mortgage-backed
 
securities and
 
U.S. Treasuries,
 
which at
 
March 31,
 
2025 were
 
investment
grade securities.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
140
Table 11 - Trading
 
Portfolio
March 31, 2025
December 31, 2024
(Dollars in thousands)
Amount
 
Weighted
Average Yield
[1]
Amount
Weighted
Average Yield
[1]
Mortgage-backed securities
 
$
19,127
5.36
%
$
29,116
5.54
%
U.S. Treasury securities
8,534
3.30
2,824
3.28
Collateralized mortgage obligations
636
5.20
655
5.20
Puerto Rico government obligations
53
4.69
55
0.57
Interest-only strips
 
127
12.00
133
12.00
Other (includes related trading derivatives)
-
-
48
5.95
Total
 
$
28,477
4.77
%
$
32,831
5.36
%
[1] Not on a taxable equivalent basis.
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 approximately
 
$0.3 million
 
for the
 
last week
 
in March
 
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
 
liquidity
 
risk
 
management.
 
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
 
of
 
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 March 31, 2025 and December 31, 2024.
The ratio of total
 
ending loans to deposits
 
was
 
57% at March 31,
 
2025 and December 31,
 
2024.
 
In addition to traditional
 
deposits,
the Corporation maintains borrowing
 
arrangements, which amounted
 
to approximately $1.1 billion
 
in outstanding balances at
 
March
31, 2025 (December 31, 2024 - $1.2 billion). A detailed
 
description of the Corporation’s borrowings, including their
 
terms, is included
in
 
Note
 
15
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
141
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 first quarter of 2025 the Corporation
 
had no material incremental use of its
 
available liquidity sources. At March 31, 2025,
the Corporation’s
 
available liquidity increased
 
to $22.6 billion
 
from $21.6 billion
 
on December 31,
 
2024. The liquidity
 
sources of the
Corporation at March 31, 2025 are presented in Table
 
12 below:
Table 12 - Liquidity Sources
March 31, 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)
$
4,705,481
$
1,479,111
$
6,184,592
$
4,882,358
$
1,488,857
$
6,371,215
Unpledged securities
4,601,493
524,402
5,125,895
3,806,066
522,869
4,328,935
FHLB borrowing capacity
3,024,223
1,037,321
4,061,544
2,777,090
1,058,921
3,836,011
Discount window of the Federal Reserve
Bank borrowing capacity
4,855,525
2,391,741
7,247,266
4,839,388
2,178,646
7,018,034
Total available liquidity
$
17,186,722
$
5,432,575
$
22,619,297
$
16,304,902
$
5,249,293
$
21,554,195
Refer
 
to
 
Note
 
15
 
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
 
6 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
 
March 31,
2025, total Puerto Rico public sector deposits were $19.6 billion, compared to $19.5 billion at December 31, 2024.
Core deposits
 
continue to
 
represent 92%
 
of total
 
deposits at
 
$60.7 billion,
 
as of
 
March 31,
 
2025, and
 
compared to
 
December 31,
2024. Core deposits financed 85% of the Corporation’s earning assets at March 31, 2025, compared
 
to 86% at December 31, 2024.
The distribution by maturity of certificates
 
of deposit with denominations of $250,000
 
and over at March 31, 2025
 
is presented in the
table that follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
142
Table 13 - Distribution by Maturity of Certificates of Deposit of $250,000 and Over
(In thousands)
3 months or less
$
2,437,407
Over 3 to 12 months
898,268
Over 1 year to 3 years
276,605
Over 3 years
154,638
Total
$
3,766,918
The
 
Corporation
 
had
 
$1.6
 
billion
 
in
 
brokered
 
deposits
 
at
 
March
 
31,
 
2025,
 
which
 
financed
 
approximately
 
2%
 
of
 
its
 
total
 
assets
(December 31, 2024 - $1.6 billion and 2%, respectively).
 
As of
 
March 31, 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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
143
Table 14 - Deposits
31-Mar-25
Popular, Inc.
(Dollars in thousands)
BPPR
% of Total
Popular U.S.
% of Total
(Consolidated)
% of Total
Deposits:
Deposits balances under $250,000 [1]
$
24,096,241
44
%
$
8,180,029
68
%
$
32,276,270
49
%
Transactional deposits balances over
$250,000
7,863,086
14
%
2,092,444
17
%
9,955,530
15
%
Time deposits balances over $250,000
2,114,253
4
%
802,942
7
%
2,917,195
4
%
Uninsured foreign deposits
420,847
1
%
-
-
%
420,847
1
%
Collateralized public funds
19,931,533
37
%
317,880
3
%
20,249,413
31
%
Intercompany deposits
220,679
-
%
559,590
5
%
-
-
%
Total deposits
$
54,646,639
100
%
$
11,952,885
100
%
$
65,819,255
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 $594 million at March 31, 2025 and December 31,
 
2024.
The contractual maturities of the BHCs notes payable at March 31, 2025 are presented in Table
 
15.
Table 15
 
- Distribution of BHC's Notes Payable by Contractual Maturity
Year
(In thousands)
2028
$
395,570
Later years
198,380
Total
$
593,950
 
 
 
 
144
As of
 
March 31,
 
2025, the
 
BHCs had
 
cash and
 
money markets
 
investments totaling
 
$635 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
 
$48
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 quarter ended
 
March 31, 2025,
 
the Corporation declared
 
cash dividends of
 
$0.70 per common share
 
outstanding ($48.4
million in the aggregate). The dividends for the Corporation’s Series A preferred stock amounted to $0.4
 
million.
During the quarter ended March 31,
 
2025, the BHCs received dividends and
 
distributions amounting to $200 million
 
from BPPR and
$6 million from its other non-banking subsidiaries. Dividends from BPPR constitute Popular,
 
Inc.’s primary source of liquidity.
 
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,
 
for
 
example.
 
During
 
the
 
period
ended March 31,2025,
 
BPPR declared cash
 
dividends of $200
 
million to PIHC
 
and could declare
 
a dividend of
 
up to approximately
$39 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 $6.2
 
billion at
 
March 31,
 
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,
 
U.S.
government
 
sponsored
 
agency
 
debt
 
securities,
 
U.S.
 
government
 
sponsored
 
agency
 
mortgage-backed
 
securities,
 
and
 
U.S.
government
 
sponsored
 
agency
 
collateralized
 
mortgage
 
obligations
 
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
 
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
 
145
needs
 
of
 
its
 
customers.
 
Refer
 
to
 
Note
 
20
 
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
 
27
 
to
 
the
Consolidated
 
Financial
 
Statements
 
for
 
more
 
information
 
on
 
operating
 
leases
 
and
 
to
 
Note
 
19
 
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, asset
 
sales and proceeds from the issuance of debt and equity.
As
 
further described
 
below,
 
in
 
the
 
Risk
 
to Liquidity
 
section,
 
various
 
statutory
 
provisions
 
limit the
 
dividends
 
an insured
 
depository
institution may pay to its holding company without regulatory approval.
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
 
March 31,
 
2025, and
December 31,
 
2024, and
 
the results
 
of their
 
operations for
 
the quarters
 
ended March
 
31, 2025
 
and March
 
31, 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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
146
Table 16 - Summarized Statement of Condition
(In thousands)
March 31, 2025
December 31, 2024
Assets
Cash and money market investments
$
634,887
$
634,809
Investment securities
36,058
35,150
Accounts receivables from non-obligor subsidiaries
17,965
14,602
Other loans (net of allowance for credit losses of $240 (2024 - $281))
25,083
25,381
Investment in equity method investees
5,279
5,279
Other assets
73,288
65,483
Total assets
$
792,560
$
780,704
Liabilities and Stockholders' equity
Accounts payable to non-obligor subsidiaries
$
8,898
$
12,163
Notes payable
593,950
593,571
Other liabilities
109,919
126,718
Stockholders' equity
79,793
48,252
Total liabilities and stockholders' equity
$
792,560
$
780,704
Table 17 - Summarized Statement of Operations
For the quarters ended
(In thousands)
March 31, 2025
March 31, 2024
Income:
Dividends from non-obligor subsidiaries
$
206,000
$
163,000
Interest income from non-obligor subsidiaries and affiliates
1,181
3,289
Earnings from investments in equity method investees
-
2
Other operating income
838
1,787
Total income
$
208,019
$
168,078
Expenses:
Services provided by non-obligor subsidiaries and affiliates (net of
reimbursement by subsidiaries for services provided by parent of
$61,777 (2024 - $60,996))
$
3,903
$
3,204
Other expenses
7,339
14,330
Income tax expense
[1]
2,679
22,680
Total expenses
$
13,921
$
40,214
Net income
$
194,098
$
127,864
[1] The net income for the
 
quarter ended March 31, 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 quarter ended March 31,
2024,
 
the
 
obligor
 
group
 
recorded
 
a
 
$50.0
 
million
 
of
 
dividend
 
distributions
 
from
 
non-obligor
 
subsidiary
 
which
 
was
 
in
 
an
accumulated loss position and accordingly was recorded as a reduction to the investment.
 
 
 
 
 
147
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.
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
 
Puerto Rico's economy is closely linked to the United States economy,
 
as most of the external factors that influence it are shaped by
U.S. policies
 
and economic
 
performance, including
 
federal transfer
 
payments, tax
 
policies, interest
 
rates, inflation,
 
trade and
 
tariff
policies, and geopolitical developments.
 
Puerto Rico’s
 
economy historically
 
followed the
 
economic trends
 
of the U.S.
 
economy.
 
However, from
 
2007 to 2017,
 
Puerto Rico’s
economy suffered
 
a severe
 
recession, with
 
real gross
 
national product
 
(“GNP”) contracting
 
approximately 15%
 
during this
 
period.
The recession was
 
exacerbated by the
 
damage caused by
 
Hurricane María in
 
2017. Since 2018,
 
Puerto Rico’s economy
 
has been
gradually recovering,
 
with a
 
temporary interruption
 
in 2020
 
due to
 
the COVID-19
 
pandemic,
 
in part
 
aided by
 
the large
 
amount of
federal
 
disaster
 
relief
 
and
 
recovery
 
assistance
 
funds
 
received
 
in
 
connection
 
with
 
recent
 
natural
 
disasters
 
and
 
the
 
COVID-19
pandemic.
 
Future
 
growth
 
depends
 
on
 
multiple
 
factors,
 
including
 
the
 
level
 
of
 
ongoing
 
federal
 
assistance
 
and
 
the
 
timetable
 
for
 
its
deployment. Estimates
 
from the
 
Puerto Rico
 
Planning Board
 
indicated
 
that real
 
GNP grew
 
by 2.8%
 
during fiscal
 
year 2024
 
(July
2023-June
 
2024)
 
and
 
is
 
projected
 
to
 
grow
 
by
 
1.4%
 
in
 
fiscal
 
year
 
2025
 
(July
 
2024-June
 
2025).
 
However,
 
the
 
latest
 
Puerto
 
Rico
Economic Activity Index showed a 1.1% year-over-year decline and a 0.1% month-over-month decline
 
in November 2024. While this
index is not a direct measure of real GNP,
 
it is 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
 
March 2025,
 
the U.S. Consumer
Price Index
 
showed a
 
2.4% 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 1.8%
 
over the
 
12 months
 
ending in
 
January
2025.
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”).
 
The
 
Oversight
 
Board
 
will
 
remain
 
in
 
place
 
until
 
market
 
access
 
is
 
restored
 
and
 
balanced
 
 
148
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 reflects,
 
among other
 
things, the
 
general economic
 
conditions in
 
Puerto Rico
 
and other
adverse conditions
 
affecting Puerto
 
Rico consumers and
 
businesses. Deterioration
 
in the Puerto
 
Rico economy
 
has resulted in
 
the
past, and could
 
result in the
 
future, in higher
 
delinquencies, greater
 
charge-offs and
 
increased losses, which
 
could materially affect
our financial condition and results of operations.
 
At March 31, 2025, the
 
Corporation’s direct exposure to
 
PR Government Entities totaled $362
 
million, all of which were
 
outstanding,
compared to $336 million,
 
at December 31, 2024 all of which were outstanding. Substantially
 
all of the Corporation’s direct exposure
outstanding
 
at
 
March
 
31,
 
2025
 
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
 
basic property tax
 
or sales tax
 
revenues.
At
March 31, 2025, 81%
 
of the Corporation’s
 
exposure to municipal loans
 
and securities was concentrated
 
in the municipalities of
 
San
Juan,
 
Guaynabo,
 
Carolina
 
and
 
Caguas.
 
In
 
July
 
2024,
 
the
 
Corporation
 
received
 
scheduled
 
principal
 
payments
 
amounting
 
to
 
$40
million from various obligations from
 
Puerto Rico municipalities. For additional
 
discussion of the Corporation’s
 
direct exposure to the
Puerto
 
Rico
 
government
 
and
 
its
 
instrumentalities
 
and
 
municipalities,
 
refer
 
to
 
Note
 
20
 
 
Commitments
 
and
 
Contingencies
 
to
 
the
Consolidated Financial Statements.
 
In addition, at March
 
31, 2025, the
 
Corporation had $216
 
million in loans
 
insured or securities
 
issued by PR Governmental
 
Entities,
but
 
for
 
which
 
the
 
principal
 
source
 
of
 
repayment
 
is
 
non-governmental
 
($220 million
 
at
 
December 31,
 
2024).
 
These
 
included
 
$172
million
 
in
 
residential
 
mortgage
 
loans
 
insured
 
by
 
the
 
Puerto
 
Rico
 
Housing
 
Finance
 
Authority
 
(“HFA”),
 
a
 
Puerto
 
Rico
 
Government
Entity (December 31, 2024
 
- $176 million). The
 
Corporation also had, at
 
March 31, 2025, $37
 
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).
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.
 
BPPR’s
 
commercial
 
loan
 
portfolio
 
also
 
includes
 
loans
 
to
 
private
 
borrowers
 
who
 
are
 
service
 
providers,
 
lessors,
 
suppliers
 
or
 
have
other
 
relationships
 
with
 
the
 
PR
 
government.
 
These
 
borrowers
 
could
 
be
 
negatively
 
affected
 
by
 
a
 
deterioration
 
in
 
the
 
fiscal
 
and
economic
 
situation
 
of
 
PR
 
Government
 
Entities.
 
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, if the fiscal and economic situation deteriorates.
As of March 31, 2025, BPPR had
 
$19.6 billion in deposits from the Puerto
 
Rico government, its instrumentalities, and municipalities.
The
 
rate
 
at
 
which
 
public
 
deposit
 
balances
 
may
 
decline
 
is
 
uncertain
 
and
 
difficult
 
to
 
predict.
 
The
 
amount
 
and
 
timing
 
of
 
any
 
such
 
 
 
149
reduction is likely
 
to be impacted
 
by,
 
for example, the
 
level of federal
 
assistance, the speed
 
at which such
 
assistance is distributed
and the financial
 
condition, liquidity
 
and cash
 
management practices
 
of such
 
entities, as
 
well as
 
on the ability
 
of BPPR to
 
maintain
these customer relationships.
United States Virgin Islands
The
 
Corporation
 
has
 
operations
 
in
 
the
 
United
 
States
 
Virgin
 
Islands
 
(the
 
“USVI”)
 
and
 
has
 
credit
 
exposure
 
to
 
USVI
 
government
entities.
The USVI
 
has been
 
experiencing a
 
number of
 
fiscal and
 
economic challenges,
 
which 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.
To
 
the extent that
 
the fiscal condition
 
of the USVI
 
continues to deteriorate,
 
the U.S. Congress
 
or the Government
 
of the USVI
 
may
enact legislation allowing for
 
the restructuring of the
 
financial obligations of USVI
 
government entities or imposing
 
a stay on creditor
remedies, including by making PROMESA applicable to the USVI.
At March
 
31, 2025,
 
the Corporation
 
had approximately
 
$28 million
 
in direct
 
exposure to
 
USVI government
 
entities (December
 
31,
2024 - $28 million).
 
British Virgin Islands
The
 
Corporation
 
has
 
operations
 
in
 
the
 
British
 
Virgin
 
Islands
 
(“BVI”),
 
which
 
was
 
negatively
 
affected
 
by
 
the
 
COVID-19
 
pandemic,
particularly as
 
a reduction
 
in the
 
tourism activity
 
which accounts
 
for a
 
significant portion
 
of its
 
economy.
 
Although the
 
Corporation
has no
 
significant exposure
 
to a
 
single borrower
 
in the
 
BVI, at
 
March 31,
 
2025, it
 
has a
 
loan portfolio
 
amounting to
 
approximately
$196 million comprised of various retail and commercial clients, compared to a loan portfolio of $196 million at December 31, 2024.
U.S. Government
As further detailed
 
in Notes 5 and
 
6 to the Consolidated
 
Financial Statements, a
 
substantial portion of
 
the Corporation’s investment
securities
 
represented
 
exposure
 
to
 
the
 
U.S.
 
Government
 
in
 
the
 
form
 
of
 
U.S.
 
Government
 
sponsored
 
entities,
 
as
 
well
 
as
 
agency
mortgage-backed and U.S. Treasury
 
securities. In addition, $2.2
 
billion of residential mortgages
 
and $86.5 million commercial
 
loans
were insured or
 
guaranteed by the
 
U.S. Government or
 
its agencies at
 
March 31, 2025
 
(compared to $2.1
 
billion and $87.4
 
million,
respectively, at December 31, 2024).
Non-Performing Assets
NPAs
 
include primarily
 
past-due loans
 
that are
 
no longer
 
accruing interest,
 
renegotiated loans,
 
and real
 
estate property
 
acquired
through foreclosure. A summary, including certain
 
credit quality metrics, is presented in Table
 
19.
The Corporation’s
 
credit quality metrics
 
showed favorable trends
 
in the first
 
quarter of 2025
 
compared to the
 
previous quarter,
 
with
improvements
 
in
 
NPLs
 
and
 
NCOs.
 
The
 
Corporation
 
continues
 
to
 
closely
 
monitor
 
the
 
macroeconomic
 
landscape
 
and
 
borrower
performance, given the uncertainty
 
in the economic outlook. The
 
performance of our most recent
 
consumer vintages is encouraging
as well
 
as improvement
 
on credit
 
metrics in
 
the consumer
 
portfolios which
 
reflect lower
 
delinquencies, NPLs
 
and NCOs
 
driven by
the
 
auto
 
and
 
personal
 
loan
 
portfolios.
 
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
 
as of
 
March 31,
 
2025 decreased
 
by $41.9
 
million when
 
compared with
 
December 31,
 
2024. Total
 
NPLs decreased
 
by
$36.7
 
million
 
from
 
December
 
31,
 
2024.
 
BPPR’s
 
NPLs
 
decreased
 
by
 
$30.1
 
million,
 
mainly
 
driven
 
by
 
lower
 
auto
 
NPLs
 
by
 
$10.0
million,
 
lower
 
mortgage
 
NPLs
 
by
 
$9.9
 
million
 
and
 
lower
 
commercial
 
NPLs
 
by
 
$8.5
 
million.
 
The
 
commercial
 
NPL
 
decrease
 
was
mostly due
 
to a $9.0
 
million loan
 
pay-off. Popular
 
U.S. NPLs
 
decreased by
 
$6.6 million,
 
mostly driven
 
by the
 
sale of
 
a $3.9
 
million
loan in the commercial portfolio.
150
On March 31,
 
2025, the ratio
 
of NPLs to
 
total loans held-in-portfolio
 
was 0.84%, compared
 
to 0.95% on
 
December 31, 2024.
 
Other
real estate owned
 
loans (“OREOs”) decreased
 
by $5.2 million
 
from December 31,
 
2024. The decrease
 
in OREO was
 
mainly driven
by the combination of sales and lower
 
residential property foreclosures. On March
 
31, 2025, NPLs secured by real
 
estate amounted
to
 
$191
 
million
 
in
 
the
 
Puerto
 
Rico
 
operations
 
and
 
$50
 
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
 
$10.9 billion
 
on March 31,
 
2025, of which
$3.0 billion was secured with owner occupied properties (December 31, 2024 - $10.9 billion and $3.2 billion, respectively).
The non-owner occupied
 
CRE portfolio was
 
$5.5 billion, which
 
is comprised of
 
$3.3 billion in
 
BPPR and $2.2
 
billion in Popular
 
U.S.
and is
 
well diversified
 
across a
 
number of
 
tenants in
 
different industries
 
and segments
 
with exposure
 
to retail
 
(33%), hotels
 
(19%)
and office space (13%) accounting for two thirds of the total exposure to non-owner occupied
 
CRE. Office space leasing exposure in
our non-owner occupied CRE portfolio is
 
limited, representing only 1.9% or $722.4
 
million of our total loan portfolio. The
 
exposure is
mainly comprised of low- to mid- rise properties with an average loan size of $2.5 million and is well diversified across tenant type.
 
Within
 
the
 
commercial
 
portfolio
 
secured
 
by
 
real
 
estate,
 
the
 
Corporation’s
 
$2.4
 
billion
 
commercial
 
multi-family
 
portfolio
 
represents
approximately 6%
 
of total
 
loans and is
 
concentrated in
 
New York
 
Metro ($1.5 billion),
 
South Florida
 
($665 million)
 
and Puerto Rico
($214 million). In
 
the New York
 
Metro region, the
 
Corporation has no
 
exposure to rent
 
controlled buildings. The
 
rent stabilized units
represent less than 40% of the total units in the loan portfolio with the majority originated after 2019.
CRE NPLs amounted to $50.1 million
 
on March 31, 2025, compared with $53.7
 
million on December 31, 2024. The CRE
 
NPL ratios
for
 
the
 
BPPR
 
and
 
Popular
 
U.S.
 
segments
 
were
 
0.69%
 
and
 
0.28%,
 
respectively,
 
on
 
March
 
31,
 
2025,
 
compared
 
with
 
0.64%
 
and
0.37%, respectively, on December 31, 2024.
In addition
 
to the
 
NPLs included
 
in Table
 
19, on
 
March 31,
 
2025, there
 
were $495
 
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 March 31, 2025 and December 31, 2024:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
151
Table 18 - Non-Performing Assets
March 31, 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
$
73
$
8,700
$
8,773
0.4
%
$
79
$
8,700
$
8,779
0.4
%
Commercial real estate non-owner
occupied
6,306
7,886
14,192
0.3
6,429
8,015
14,444
0.3
Commercial real estate owner
occupied
26,891
231
27,122
0.9
25,258
5,191
30,449
1.0
Commercial and industrial
 
9,327
690
10,017
0.1
19,335
1,748
21,083
0.3
Total Commercial
 
42,597
17,507
60,104
0.3
51,101
23,654
74,755
0.4
Leasing
8,895
-
8,895
0.5
9,588
-
9,588
0.5
Mortgage
148,506
29,087
177,593
2.1
158,442
29,890
188,332
2.3
Consumer
 
 
Home equity lines of credit
-
3,430
3,430
4.4
-
3,393
3,393
4.6
 
Personal
 
18,251
2,034
20,285
1.1
20,269
1,741
22,010
1.2
 
Auto
41,784
-
41,784
1.1
51,792
-
51,792
1.4
 
Other
1,973
5
1,978
1.2
899
11
910
0.5
Total Consumer
 
62,008
5,469
67,477
0.9
72,960
5,145
78,105
1.1
Total non-performing loans held-in-
portfolio
262,006
52,063
314,069
0.8
%
292,091
58,689
350,780
0.9
%
Other real estate owned (“OREO”)
52,043
71
52,114
57,197
71
57,268
Total non-performing assets
[1]
$
314,049
$
52,134
$
366,183
$
349,288
$
58,760
$
408,048
Accruing loans past due 90 days or
more
[2]
$
219,671
$
189
$
219,860
$
242,250
$
190
$
242,440
Ratios:
Non-performing assets to total assets
0.54
%
0.33
%
0.49
%
0.61
%
0.37
%
0.56
%
Non-performing loans held-in-portfolio
to loans held-in-portfolio
 
1.00
0.47
0.84
1.12
0.54
0.95
Allowance for credit losses to loans
held-in-portfolio
2.59
0.77
2.05
2.56
0.69
2.01
Allowance for credit losses to non-
performing loans, excluding held-for-
sale
258.11
164.96
242.67
229.61
128.40
212.68
[1] There were no non-performing loans held-for-sale as of March 31, 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 $57
 
million of
 
residential mortgage
loans
 
insured
 
by
 
FHA
 
or
 
guaranteed
 
by
 
the
 
VA
 
that
 
are
 
no
 
longer
 
accruing
 
interest
 
as
 
of
 
March
 
31,
 
2025
 
(December
 
31,
 
2024
 
-
 
$65
 
million).
Furthermore, the
 
Corporation has
 
approximately $30
 
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
 
March
 
31,
 
2025,
 
total
 
inflows
 
of
 
NPLs
 
held-in-portfolio,
 
excluding
 
consumer
 
loans,
 
decreased
 
by
 
$23.7
million, when compared to the inflows
 
for the same period in 2024. Inflows
 
of NPLs held-in-portfolio at the BPPR segment
 
increased
by $3.5
 
million, compared
 
to the
 
same period
 
in 2024.
 
Inflows of
 
NPLs held-in-portfolio
 
at the Popular
 
U.S. segment
 
decreased by
$27.2 million from the same period in 2024, driven by
 
lower mortgage and commercial NPL inflows by $17.6 million
 
and $9.6 million,
respectively.
Tables 19 to 25
 
present the Corporation’s inflows to NPLs for the quarters ended March 31, 2025 and 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
152
Table 19 - Activity in Non-Performing Loans Held-in-Portfolio (Excluding Consumer Loans)
For the quarter ended March 31, 2025
(Dollars in thousands)
BPPR
Popular U.S.
Popular, Inc.
Beginning balance - NPLs
$
209,543
$
53,544
$
263,087
Plus:
New non-performing loans
37,023
8,158
45,181
Advances on existing non-performing loans
-
18
18
Less:
Non-performing loans transferred to OREO
(2,555)
-
(2,555)
Non-performing loans charged-off
(927)
(1,130)
(2,057)
Loans returned to accrual status / loan collections
(51,981)
(13,996)
(65,977)
Ending balance -
 
NPLs
$
191,103
$
46,594
$
237,697
Table 20 - Activity in Non-Performing Loans Held-in-Portfolio (Excluding Consumer Loans)
For the quarter ended March 31, 2024
(Dollars in thousands)
BPPR
Popular U.S.
Popular, Inc.
Beginning balance - NPLs
$
254,476
$
22,354
$
276,830
Plus:
New non-performing loans
33,503
35,373
68,876
Advances on existing non-performing loans
-
22
22
Less:
Non-performing loans transferred to OREO
(4,109)
-
(4,109)
Non-performing loans charged-off
(8,309)
(950)
(9,259)
Loans returned to accrual status / loan collections
(45,765)
(7,321)
(53,086)
Ending balance -
 
NPLs
$
229,796
$
49,478
$
279,274
Table 21 - Activity in Non-Performing Commercial Loans Held-In-Portfolio
For the quarter ended March 31, 2025
(In thousands)
BPPR
Popular U.S.
Popular, Inc.
Beginning balance - NPLs
$
51,101
$
23,654
$
74,755
Plus:
New non-performing loans
5,781
5,413
11,194
Advances on existing non-performing loans
-
17
17
Less:
Non-performing loans transferred to OREO
(120)
-
(120)
Non-performing loans charged-off
(739)
(1,130)
(1,869)
Loans returned to accrual status / loan collections
(13,426)
(10,447)
(23,873)
Ending balance - NPLs
$
42,597
$
17,507
$
60,104
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
153
Table 22 - Activity in Non-Performing Commercial Loans Held-In-Portfolio
For the quarter ended March 31, 2024
(In thousands)
BPPR
Popular U.S.
Popular, Inc.
Beginning balance - NPLs
$
72,992
$
11,163
$
84,155
Plus:
New non-performing loans
4,343
15,039
19,382
Advances on existing non-performing loans
-
20
20
Less:
Non-performing loans charged-off
(7,999)
(950)
(8,949)
Loans returned to accrual status / loan collections
(6,013)
(3,865)
(9,878)
Ending balance - NPLs
$
63,323
$
21,407
$
84,730
Table 23 - Activity in Non-Performing Construction Loans Held-In-Portfolio
For the quarter ended March 31, 2024
(In thousands)
BPPR
Popular U.S.
Popular, Inc.
Beginning balance - NPLs
$
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 March 31, 2025
(Dollars in thousands)
BPPR
Popular U.S.
Popular, Inc.
Beginning balance - NPLs
$
158,442
$
29,890
$
188,332
Plus:
New non-performing loans
31,242
2,745
33,987
Advances on existing non-performing loans
-
1
1
Less:
Non-performing loans transferred to OREO
(2,435)
-
(2,435)
Non-performing loans charged-off
(188)
-
(188)
Loans returned to accrual status / loan collections
(38,555)
(3,549)
(42,104)
Ending balance - NPLs
$
148,506
$
29,087
$
177,593
Table 25 - Activity in Non-Performing Mortgage Loans Held-in-Portfolio
For the quarter ended March 31, 2024
(Dollars in thousands)
BPPR
Popular U.S.
Popular, Inc.
Beginning balance - NPLs
$
175,106
$
11,191
$
186,297
Plus:
New non-performing loans
29,160
20,334
49,494
Advances on existing non-performing loans
-
2
2
Less:
Non-performing loans transferred to OREO
(4,109)
-
(4,109)
Non-performing loans charged-off
(310)
-
(310)
Loans returned to accrual status / loan collections
(33,374)
(3,456)
(36,830)
Ending balance - NPLs
$
166,473
$
28,071
$
194,544
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
154
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 March 31, 2025 and December 31, 2024, are presented below.
Table 26 - Loan Delinquencies
(Dollars in thousands)
March 31, 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
$
14,130
$
2,374,915
0.59
%
$
15,826
$
2,399,620
0.66
%
Commercial real estate
non-owner occupied
18,079
5,540,603
0.33
24,925
5,363,235
0.46
Commercial real estate
owner occupied
34,775
2,956,559
1.18
42,311
3,157,746
1.34
Commercial and industrial
29,933
7,693,523
0.39
49,942
7,741,562
0.65
Total Commercial
 
96,917
18,565,600
0.52
133,004
18,662,163
0.71
Construction
 
6,498
1,358,979
0.48
1,039
1,263,792
0.08
Leasing
33,265
1,949,705
1.71
39,641
1,925,405
2.06
Mortgage
[1]
749,070
8,273,753
9.05
798,130
8,114,183
9.84
Consumer
 
Credit cards
 
54,426
1,187,777
4.58
59,078
1,218,079
4.85
Home equity lines of credit
6,272
77,109
8.13
5,054
73,571
6.87
Personal
 
52,867
1,850,023
2.86
57,835
1,855,244
3.12
Auto
 
136,420
3,820,242
3.57
191,008
3,823,437
5.00
Other
5,143
170,844
3.01
3,930
171,778
2.29
Total Consumer
 
255,128
7,105,995
3.59
316,905
7,142,109
4.44
Loans held-for-sale
-
5,077
-
-
5,423
-
Total
 
$
1,140,878
$
37,259,109
3.06
%
$
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 March 31,
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. The
 
Corporation’s management
 
evaluates the
 
adequacy of
 
the ACL on
 
a quarterly
 
basis. In
 
this evaluation,
 
management
considers current
 
conditions, macroeconomic
 
economic expectations
 
through a
 
reasonable and
 
supportable period,
 
historical loss
experience,
 
portfolio
 
composition
 
by
 
loan
 
type
 
and
 
risk
 
characteristics,
 
results
 
of
 
periodic
 
credit
 
reviews
 
of
 
individual
 
loans,
 
and
regulatory requirements, amongst other factors.
The Corporation must
 
rely on estimates
 
and exercise judgment
 
regarding matters where
 
the ultimate outcome
 
is unknown, such
 
as
economic developments
 
affecting specific
 
customers, industries, or
 
markets. Other
 
factors that can
 
affect management’s
 
estimates
are
 
recalibration
 
of
 
statistical
 
models
 
used
 
to
 
calculate
 
lifetime
 
expected
 
losses,
 
changes
 
in
 
underwriting
 
standards,
 
financial
accounting standards and loan impairment measurements, among others. Changes in the financial condition
 
of individual borrowers,
in economic
 
conditions,
 
and in
 
the condition
 
of the
 
various markets
 
in which
 
collateral may
 
be sold,
 
may also
 
affect
 
the required
level of
 
the allowance
 
for credit
 
losses. Consequently,
 
the business
 
financial condition,
 
liquidity,
 
capital, and
 
results of
 
operations
could also be affected.
155
On March 31, 2025, the ACL
 
increased by $16.1 million from
 
December 31, 2024 to $762.1 million.
 
The increase in ACL was driven
by changes
 
in the
 
economic scenario
 
probability weights
 
coupled with
 
increases in
 
qualitative reserves,
 
in response
 
to the
 
current
economic environment
 
uncertainty,
 
offset in
 
part by
 
improvements in
 
credit quality.
 
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.
 
The weightings
applied are subject
 
to evaluation on a
 
quarterly basis as
 
part of the ACL’s
 
governance process. The
 
Corporation evaluates, at
 
least
on an annual basis, the
 
assumptions tied to the CECL
 
accounting framework. These include
 
the reasonable and supportable period
as well as the reversion period.
The ACL
 
for
 
BPPR
 
increased
 
by $5.6
 
million,
 
driven
 
by an
 
increase
 
in the
 
weight
 
of the
 
pessimistic
 
scenario
 
that resulted
 
in an
$11.3
 
million ACL
 
increase, partially
 
offset by
 
improved credit
 
quality in
 
the commercial
 
portfolios and
 
reduced overall
 
reserves for
both the
 
commercial
 
and consumer
 
portfolios,
 
mainly
 
driven by
 
lower volumes.
 
In PB,
 
the ACL
 
increased
 
by $10.5
 
million,
 
when
compared to
 
December
 
31, 2024,
 
driven
 
by an
 
increase in
 
probability
 
weights
 
to the
 
pessimistic
 
scenario
 
that resulted
 
in a
 
$6.9
million increase, mainly within
 
the commercial portfolio, coupled
 
with higher qualitative reserves
 
for the CRE portfolio in
 
response to
current market volatility and economic uncertainty.
 
The Corporation’s ratio of the allowance for credit losses
 
to loans held-in-portfolio
was 2.05% on
 
March 31, 2025,
 
compared to 2.01%
 
on December 31,
 
2024. The ratio
 
of the ACL
 
to NPLs held-in-portfolio
 
stood at
242.7%, compared to 212.7% on December 31, 2024.
The
 
provision
 
for
 
credit
 
losses
 
related
 
to
 
the
 
loans
 
held-in-portfolio
 
for
 
the
 
quarter
 
ended
 
March
 
31,
 
2025,
 
was
 
$65.2
 
million,
compared to
 
$72.4 million
 
for the
 
quarter ended
 
March 31,
 
2024. The
 
provision decrease
 
was mainly
 
driven by
 
lower reserves
 
in
BPPR due to lower NCOs.
 
Refer to Note 8 to
 
the Consolidated Financial Statements,
 
and to the Provision
 
for Credit Losses section
of this MD&A for additional information.
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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
156
Table 27 - Allowance for Credit Losses - Loan Portfolios
March 31, 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
$
13,501
$
2,374,915
0.57
%
$
8,773
153.89
%
 
Commercial real estate non-owner occupied
58,301
5,540,603
1.05
%
14,192
410.80
%
 
Commercial real estate owner occupied
50,212
2,956,559
1.70
%
27,122
185.13
%
 
Commercial and industrial
 
147,829
7,693,523
1.92
%
10,017
N.M.
Total Commercial
 
$
269,843
$
18,565,600
1.45
%
$
60,104
448.96
%
Construction
9,512
1,358,979
0.70
%
-
N.M.
Leasing
20,206
1,949,705
1.04
%
8,895
227.16
%
Mortgage
84,029
8,273,753
1.02
%
177,593
47.32
%
Consumer
 
 
Credit cards
96,523
1,187,777
8.13
%
-
N.M.
 
Home equity lines of credit
1,610
77,109
2.09
%
3,430
46.94
%
 
Personal
 
101,437
1,850,023
5.48
%
20,285
500.06
%
 
Auto
171,979
3,820,242
4.50
%
41,784
411.59
%
 
Other
7,009
170,844
4.10
%
1,978
354.35
%
Total Consumer
 
$
378,558
$
7,105,995
5.33
%
$
67,477
561.02
%
Total
$
762,148
$
37,254,032
2.05
%
$
314,069
242.67
%
N.M. - Not meaningful.
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
%
-
N.M.
Leasing
16,419
1,925,405
0.85
%
9,588
171.25
%
Mortgage
82,409
8,114,183
1.02
%
188,332
43.76
%
Consumer
 
 
Credit cards
99,130
1,218,079
8.14
%
-
N.M.
 
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
%
N.M. - Not meaningful.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
157
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 ended March 31, 2025 and 2024.
Table 29
 
- Annualized Net Charge-offs (Recoveries) to Average Loans Held-in-Portfolio
Quarter ended March 31, 2025
Quarter ended March 31, 2024
BPPR
Popular U.S.
Popular, Inc.
BPPR
Popular U.S.
Popular, Inc.
Commercial
 
(0.10)
%
0.02
%
(0.05)
%
0.30
%
0.04
%
0.18
%
Mortgage
(0.15)
(0.06)
(0.13)
(0.28)
(0.01)
(0.23)
Leasing
0.68
0.68
0.85
0.85
Consumer
2.82
3.90
2.85
2.98
8.43
3.16
Total annualized net charge-offs to
average loans held-in-portfolio
0.72
%
0.07
%
0.53
%
0.92
%
0.21
%
0.71
%
NCOs for the quarter ended March 31, 2025, amounted to $49.1 million, decreasing by $13.1 million when compared to the same
period in 2024. The BPPR segment decreased by $9.5 million, mainly driven by a decrease of $9.6 million in commercial
 
NCOs to
net recoveries of $2.5 million during the current quarter, in part due to
 
a $3.8 million recovery related to the resolution of a $9.0
million non-performing loan. The PB segment NCOs decreased by $3.6 million, mainly driven by lower consumer NCOs
 
by $3.1
million.
Loan Modifications
For the
 
quarter
 
ended
 
March
 
31,
 
2025,
 
modified
 
loans
 
to
 
borrowers
 
with
 
financial
 
difficulty
 
amounted to
 
$159.2
 
million,
 
of
 
which
$153.2 million were
 
in accruing status.
 
The BPPR segment’s
 
modifications to borrowers
 
with financial difficulty
 
amounted to $159.2
million, mainly comprised of
 
commercial and mortgage loans
 
of $138.4 million and
 
$13.1 million, respectively.
 
A total of $8.6
 
million
of the mortgage modifications were related to government guaranteed 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.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
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.
Item 4. Controls and Procedures
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
158
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 March 31,
 
2025 that have materially
 
affected, or are
reasonably likely to materially affect, the Corporation’s internal control over financial
 
reporting.
Part II - Other Information
Item 1. Legal Proceedings
 
For a discussion of Legal Proceedings, see Note 20 to the Consolidated Financial Statements.
Item 1A. Risk Factors
In addition to the other information set forth in this report, you should carefully consider the risk factors discussed
 
under “Part I - Item
1A - Risk Factors” in
 
our 2024 Form 10-K. These
 
factors could materially adversely
 
affect our business, financial
 
condition, liquidity,
results
 
of operations
 
and capital
 
position,
 
and could
 
cause
 
our
 
actual
 
results
 
to differ
 
materially
 
from our
 
historical
 
results
 
or
 
the
results
 
contemplated by
 
the forward-looking
 
statements
 
contained
 
in this
 
report. Also
 
refer to
 
the discussion
 
in “Part
 
I -
 
Item 2
 
Management’s
 
Discussion
 
and Analysis
 
of Financial
 
Condition and
 
Results of
 
Operations” in
 
this report
 
for additional
 
information
that may supplement or update the discussion of risk factors below and in our 2024 Form 10-K.
There have been no material changes to the risk factors previously disclosed under Item 1A of the Corporation’s 2024
 
Form 10-K.
The risks described
 
in our 2024
 
Form 10-K and
 
in this report
 
are not the
 
only risks facing
 
us. Additional risks
 
and uncertainties not
currently
 
known
 
to
 
us
 
or
 
that
 
we
 
currently
 
deem
 
to
 
be
 
immaterial
 
also
 
may
 
materially
 
adversely
 
affect
 
our
 
business,
 
financial
condition, liquidity, results of operations and capital
 
position.
Item 2.
 
Unregistered Sales of Equity Securities and Use of Proceeds
 
The Corporation did not have any unregistered sales of equity securities during the quarter ended March 31, 2025.
Issuer Purchases of Equity Securities
The following
 
table sets
 
forth the
 
details of
 
purchases of
 
common stock
 
by the
 
Corporation and
 
its affiliated
 
purchasers during
 
the
quarter ended March 31, 2025:
Issuer Purchases of Equity Securities
Not in thousands
Period
Total Number of
Shares Purchased [1]
Average Price Paid per
Share
Total Number of
 
Shares
Purchased as Part of Publicly
Announced Plans or Programs [2]
Approximate Dollar Value of
Shares that May Yet be
Purchased Under the Plans or
Programs [2]
January 1 - January 31
285,989
$
98.11
285,330
$254,662,519
February 1 -February 29
365,516
102.56
365,098
217,219,547
March 1 - March 31
655,488
92.13
620,141
160,382,271
Total
 
1,306,993
$
96.35
1,270,569
$160,382,271
[1] Includes
 
659, 418
 
and 35,347
 
shares of
 
the Corporation’s
 
common stock
 
acquired by
 
the Corporation
 
during January,
 
February and
 
March 2025,
respectively,
 
in connection
 
with the
 
satisfaction of
 
tax withholding
 
obligations on
 
vested awards
 
of restricted
 
stock or
 
restricted stock
 
units granted
 
to
directors and certain employees
 
under the Corporation’s Omnibus
 
Incentive Plan. The acquired
 
shares of common stock
 
were added back to
 
treasury
stock.
 
 
 
 
159
[2] As part of its capital plan, in
 
July 2024, the Corporation announced plans to repurchase up to
 
$500 million in common stock and repurchases began
in August
 
2024.
 
As of
 
March 31,
 
2025, the
 
Corporation repurchased
 
3,526,989 shares
 
of common
 
stock for
 
$339.6 million
 
at an
 
average price
 
of
$96.29 per share, under the previously announced share repurchase authorization.
Item 3.
 
Defaults Upon Senior Securities
None.
Item 4.
 
Mine Safety Disclosures
Not applicable.
Item 5. Other Information
Rule 10b5-1 Trading Plans or Other Preplanned Trading
 
Arrangements
Certain of our
 
officers or
 
directors have made,
 
and may from
 
time to time
 
make, elections to
 
participate in, and
 
are
participating in
,
our dividend reinvestment
 
and purchase plan,
 
the Company stock
 
fund associated with our
 
401(k) plans and/or
 
the Company stock
fund associated
 
with our non-qualified
 
deferred compensation
 
plans and
 
have shares withheld
 
to cover withholding
 
taxes upon
 
the
vesting of
 
equity awards,
 
which may
 
be designed
 
to satisfy
 
the affirmative
 
defense conditions
 
of Rule
 
10b5-1 under
 
the Exchange
Act or may constitute non-Rule 10b5–1
trading arrangements
 
(as defined in Item 408(c) of Regulation S-K).
 
 
160
Item 6.
 
Exhibits
 
Exhibit Index
Exhibit No
Exhibit Description
10.1
10.2
10.3
22.1
31.1
31.2
32.1
32.2
101. INS
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101.SCH
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104
The cover page of Popular, Inc. Quarterly Report on Form 10-Q
 
for the quarter ended March 31, 2025,
formatted in Inline XBRL (included within the Exhibit 101 attachments)
(1)
(1)
 
Included herewith
* This exhibit is a management contract or compensatory plan or arrangement.
Popular, Inc. has not filed as exhibits certain instruments defining
 
the rights of holders of debt of Popular, Inc. not
exceeding 10% of the total assets of Popular, Inc. and its consolidated
 
subsidiaries. Popular, Inc. hereby agrees to
furnish upon request to the Commission a copy of each instrument defining the rights of holders of senior and
subordinated debt of Popular, Inc., or of any of its consolidated subsidiaries.
 
 
 
161
SIGNATURES
Pursuant to the
 
requirements of the
 
Securities Exchange Act
 
of 1934, the
 
registrant has duly
 
caused this report
 
to be signed
 
on its
behalf by the undersigned thereunto duly authorized.
POPULAR, INC.
(Registrant)
Date: May 12, 2025
By: /s/ Jorge J. García
Jorge J. García
Executive Vice President &
Chief Financial Officer
Date: May 12, 2025
By: /s/ Denissa M. Rodríguez
Denissa M. Rodríguez
Senior Vice President & Corporate Comptroller

ATTACHMENTS / EXHIBITS

ATTACHMENTS / EXHIBITS

EX-10.1

EX-10.2

EX-10.3

EX-31.1

EX-31.2

EX-32.1

EX-32.2

XBRL TAXONOMY EXTENSION SCHEMA

XBRL TAXONOMY EXTENSION CALCULATION LINKBASE

XBRL TAXONOMY EXTENSION DEFINITION LINKBASE

XBRL TAXONOMY EXTENSION LABEL LINKBASE

XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE

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