BPOP

EX-99.1

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EX-99.1

BPOP-EX-99.1

4

Exhibit 99.1

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:

BPOP)

Popular, Inc. Announces Second Quarter 2026 Financial Results

FINANCIAL HIGHLIGHTS

($ in millions, except per share information)

Quarters ended

30-Jun-26

31-Mar-26

Δ vs 31-Mar-26

30-Jun-25

Δ vs 30-Jun-25

EARNINGS

Net Income

$278

$246

$32

$210

$68

PER SHARE DATA

Basic EPS

$4.35

$3.78

$0.57

$3.09

$1.26

Diluted EPS

$4.35

$3.78

$0.57

$3.09

$1.26

Tangible Book Value / Share (non-GAAP)

$87.94

$84.98

$2.96

$75.41

$12.53

FINANCIAL CONDITION

Total Assets

$78,972

$76,131

$2,841

$76,065

$2,907

Loans Held in Portfolio

$39,750

$39,290

$460

$38,185

$1,565

Deposits

$70,233

$67,611

$2,622

$67,217

$3,016

Borrowings

$1,463

$1,120

$343

$1,414

$48

CREDIT QUALITY

Non-Performing Loans

$413

$458

$(45)

$312

$102

NPL Ratio

1.04%

1.17%

-13 bps

0.82%

22 bps

NCO Ratio

1.05%

0.61%

44 bps

0.45%

60 bps

ACL / Total Loans

1.97%

2.10%

-13 bps

2.02%

-5 bps

ACL / NPLs

190%

180%

10%

247%

(57)%

CAPITAL & LIQUIDITY

Common Equity Tier 1

16.08%

15.92%

16 bps

15.91%

17 bps

Tier 1 Risk-Based Capital

16.13%

15.98%

15 bps

15.96%

17 bps

Total Risk-Based Capital

17.85%

17.71%

14 bps

17.70%

15 bps

Tier 1 Leverage

8.57%

8.60%

-3 bps

8.51%

6 bps

Capital Returned to Shareholders

$174

$204

$(30)

$160

$14

FINANCIAL RATIOS

Net Interest Margin

3.66%

3.66%

0 bps

3.49%

17 bps

NIM (FTE)

4.17%

4.14%

3 bps

3.85%

32 bps

Total Deposit Costs

1.57%

1.56%

1 bps

1.78%

-21 bps

ROTCE (non-GAAP)

17.02%

15.46%

156 bps

13.26%

376 bps

ROA

1.41%

1.29%

12 bps

1.11%

30 bps

The financial information in this earnings release includes non-GAAP financial measures. These measures are intended to supplement, and

should not be considered a substitute for, GAAP results. See the "Non-GAAP Financial Measures" section for additional information; and

Table R - Reconciliation to GAAP Financial Measures. All financial information in this release, including the accompanying tables, is

unaudited.

5

CEO COMMENTARY

Javier D. Ferrer, President and Chief Executive Officer, said:

"We are pleased to report another solid quarter. Net income reached $278 million, 13% higher than the first quarter of this

year and 32% higher than the same quarter a year ago. Our results reflect higher net interest income, solid fee generation,

continued balance sheet growth, and strong capital generation. Our ROTCE improved to 17% from 15.5% in the previous

quarter, as we remain focused on delivering sustainable, through-the-cycle shareholder returns."

"We continued to return capital to shareholders during the quarter, repurchasing $125 million of common stock, exhausting

our previous $500 million authorization, and paying our quarterly dividend of $0.75 per share. We also announced additional

capital actions, including a 20% increase in our quarterly dividend to $0.90 per share, subject to Board approval, and a new

$1.0 billion share repurchase authorization."

"At the same time, we continued to advance our strategic priorities – to be the number one bank for our customers, to be

simple and efficient, and to be a top-performing bank. It is most rewarding to see how the organization has embraced our

objectives. A growing number of initiatives are gaining traction simultaneously, and the pace of execution is accelerating."

"With the satisfaction of seeing Popular solid, united, and moving forward with a clear purpose and strategy, I'm announcing

my retirement, effective August 31, 2026. As I begin this next chapter, I look forward to focusing on my health and spending

meaningful time with my family and close friends."

"It has been an honor to serve Popular and work alongside a team so deeply committed to our clients, communities and

shareholders. I am especially grateful to our employees for their support, trust and dedication throughout my years at

Popular. I am proud of what we have accomplished together and the momentum it creates for Popular’s future. I also want to

thank Jorge for his partnership over the years. I know his leadership will guide Popular forward with strength, purpose and

care."

EARNINGS HIGHLIGHTS

Quarters ended

(Dollars in thousands)

30-Jun-26

31-Mar-26

Δ vs 31-Mar-26

30-Jun-25

Δ vs 30-Jun-25

Net interest income

$693,419

$670,180

$23,239

$631,549

$61,870

Provision for credit losses

65,873

75,886

(10,013)

48,941

16,932

Net interest income after provision for credit losses

627,546

594,294

33,252

582,608

44,938

Non-Interest Income

180,545

165,626

14,919

168,477

12,068

Operating expenses

484,130

467,310

16,820

492,761

(8,631)

Income before income tax

323,961

292,610

31,351

258,324

65,637

Income tax expense

45,747

46,936

(1,189)

47,884

(2,137)

Net income

$278,214

$245,674

$32,540

$210,440

$67

EX-99.1

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EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces First Quarter 2026 Financial Results

•

Net income of $245.7 million in Q1 2026, compared to net income of $233.9 million in Q4 2025.

•

Compared to adjusted net income in Q4 2025 of $224.2 million, which excluded a $9.7 million, net of tax, partial reversal of the FDIC special assessment reserve, net income increased by $21.5 million when compared to Q4 2025.

•

Earnings per share (“EPS”) of $3.78 in Q1 2026 vs. $3.53 in Q4 2025.

•

Net interest income of $670.2 million in Q1 2026, an increase of $12.6 million compared to Q4 2025:

•

Net interest margin of 3.66% in Q1 2026, compared to 3.61% in Q4 2025; net interest margin on a taxable equivalent basis of 4.14% in Q1 2026, compared to 4.03% in Q4 2025.

•

Non-interest income of $165.6 million in Q1 2026, a decrease of

$0.7 million when compared to $166.3 million in Q4 2025.

•

Operating expenses of $467.3 million, a decrease of $5.9 million when compared to $473.2 million in Q4 2025.

•

Excluding the partial reversal of the FDIC special assessment reserve of $15.3 million in Q4 2025, operating expenses decreased by $21.2 million when compared to Q4 2025.

•

Credit quality metrics:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $40.2 million from Q4 2025; NPLs to loans ratio decreased to 1.17% from 1.27% in Q4 2025.

•

Net charge-offs (“NCOs”) increased by $10.4 million from Q4 2025 to $60.0 million,

mainly due to a single $11.1 million commercial loan charge-off, previously placed in non-accrual in Q3 2025. Annualized NCOs to average loans held-in-portfolio at 0.61% vs. 0.51% in Q4 2025.

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.10% vs. 2.05% in Q4 2025; and

•

ACL to NPLs at 179.8% vs. 162.2% in Q4 2025.

•

Loans held-in-portfolio,

excluding loans held-for-sale, amounted to $39.3 billion, a decrease of $37.8 million from Q4 2025; average quarterly loan balances, excluding loans held-for-sale, higher by $434.9 million.

•

Money market and investment securities increased by $803.7 million from Q4 2025 to $33.6 billion; average quarterly balances increased by $959.4 million.

•

Deposits at $67.6 billion, increasing by $1.4 billion from Q4 2025.

•

This includes an increase of $250.1 million in P.R. public deposits; excluding P.R. public deposits, total deposits increased by $1.2 billion; average quarterly deposits increased by $1.1 billion, including an increase of $711.0 million in P.R. public deposits.

•

Common Equity Tier 1 ratio of 15.92%, Common Equity per share of $97.27 and Tangible Book Value per share of $84.98 ($2.33 above Q4 2025).

•

Capital actions for the first quarter of 2026 included the repurchase of 1,155,398 shares of common stock for $155.2 million, at an average price of $134.31 per share, and the payment and declaration of a quarterly common stock dividend of $0.75 per share. As of March 31, 2026, a total of $126.0 million remained available for stock repurchases under our currently active authorization.

•

Return on average tangible common equity (“ROTCE”) of 15.46% in Q1 2026 vs. 14.39% in Q4 2025.

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $245.7 million for the quarter ended March 31, 2026, compared to net income of $233.9 million for the quarter ended December 31, 2025.

“We delivered a strong start to 2026, with net income of $246 million and earnings per share of $3.78, up 38% and 48%, respectively, year-over-year, reflecting disciplined execution across our businesses and continued momentum throughout the franchise,” said Javier D. Ferrer, President and Chief Executive Officer of Popular, Inc. “Our results quarter-over-quarter were driven by higher net interest income, an expanding net interest margin and, importantly, lower operating expenses. We also returned $204 million to our shareholders through buybacks and dividends.”

“We continue to invest in our businesses and expand our operational capabilities in support of our strategic objectives. We know that when we deliver for our customers, our businesses thrive and our shareholders are rewarded.”

“The Puerto Rico and United States economies remained resilient, with healthy business performance and consumer activity. We remain attentive to the evolving geopolitical and macroeconomic landscape, focused on maintaining our disciplined approach and being a source of strength for those who depend on us.”

“Our diversified business model, combined with robust capital and liquidity levels, positions us well to support our customers and create long-term value for our shareholders.”

“We are pleased to have delivered a ROTCE of 15.5% this quarter, up from 14.4% in the fourth quarter of 2025 and from 11.4% in the same quarter a year ago. This is a meaningful step forward in our journey toward a sustainable, through-the-cycle, 14% objective

EX-99.1

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EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces Fourth Quarter 2025 Financial Results

•

Net income of $233.9 million in Q4 2025, compared to net income of $211.3 million in Q3 2025.

•

Excluding the partial reversal of the FDIC special assessment reserve of $9.7 million, net of tax, adjusted net income for the fourth quarter of 2025 was $224.2 million.

•

Earnings per share (“EPS”) of $3.53 in Q4 2025 vs. $3.15 in Q3 2025.

•

Net income of $833.2 million for the year 2025, compared to net income of $614.2 million for the year 2024.

•

Excluding the partial reversal of the FDIC special assessment reserve, adjusted net income for 2025 was $823.5 million, compared to adjusted net income of $646.1 million in 2024, which excluded expenses incurred in connection to the FDIC special assessment and prior period tax withholdings of $9.1 million and $22.9 million, net of tax, respectively.

•

Net interest income of $657.6 million in Q4 2025, an increase of $11.0 million compared to Q3 2025:

•

Net interest margin of 3.61% in Q4 2025, compared to 3.51% in Q3 2025; net interest margin on a taxable equivalent basis of 4.03% in Q4 2025, compared to 3.90% in Q3 2025.

•

Non-interest income of $166.3 million in Q4 2025, compared to

$171.2 million in Q3 2025.

•

Operating expenses amounted to $473.2 million, compared to $495.3 million in Q3 2025. Excluding the partial reversal of the FDIC special assessment reserve described above, operating expenses amounted to $488.5 million in Q4 2025.

•

Credit quality metrics:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $3.9 million from Q3 2025; NPLs to loans ratio decreased to 1.27% from 1.30% in Q3 2025.

•

Net charge-offs (“NCOs”) decreased by $8.2 million from Q3 2025 to $49.6 million,

including $5.3 million in recoveries from the sale of fully charged off loans in Q4 2025; annualized NCOs to average loans held-in-portfolio at 0.51% vs. 0.60% in

Q3 2025.

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.05% vs. 2.03% in Q3 2025; and

•

ACL to NPLs at 162.2% vs. 156.6% in Q3 2025.

•

Loans held-in-portfolio,

excluding loans held-for-sale, amounted to $39.3 billion, an increase of $640.4 million from Q3 2025; average quarterly loan balances, excluding loans held-for-sale, higher by $397.2 million.

•

Money market and investment securities decreased by $330.6 million from Q3 2025 to $32.8 billion; average quarterly balances decreased by $1.2 billion.

•

Deposits at $66.2 billion, decreased by $323.3 million from Q3 2025. This includes a decrease of $662.3 million in P.R. public deposits; excluding these, total deposits increased by $339.0 million; average quarterly deposits lower by $879.8 million, including a decrease of $1.1 billion in P.R. public deposits.

1

•

Common Equity Tier 1 ratio of 15.72%, Common Equity per share of $94.75 and Tangible Book Value per share of $82.65 ($3.53 above Q3 2025).

•

Capital actions for the fourth quarter of 2025 included the repurchase of 1,252,303 shares of common stock for $147.8 million, at an average price of $118.04 per share, and the payment and declaration of a quarterly common stock dividend of $0.75 per share. For the year 2025, the Corporation repurchased a total of 4,660,124 shares of common stock for $501.5 million at an average price of $107.61 per share under the announced repurchase authorizations. As of December 31, 2025, a total of $281.2 million remained available for stock repurchases under the active authorization.

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $233.9 million for the quarter ended December 31, 2025, compared to net income of $211.3 million for the quarter ended September 30, 2025.

“We closed out a strong fourth quarter and an excellent year for Popular, reflecting the discipline and focus of our team across the organization,” said Javier D. Ferrer, President and Chief Executive Officer of Popular, Inc. “In 2025, we delivered 36% growth in net income, achieved strong loan growth, maintained stable credit quality, and continued returning capital to our shareholders. Fourth quarter performance was driven by higher net interest income and continued expense discipline. We demonstrated significant progress in our efforts to improve our sustainable returns towards our 14% objective. We are very pleased to have exceeded a 14% ROTCE for the fourth quarter and a 13% ROTCE for the full year.”

“We are moving full speed ahead with the execution of our new strategic framework, determined to be the #1 bank for our customers by strengthening relationships and delivering exceptional service. We are also focused on providing solutions faster, improving productivity, and reducing costs. Ultimately, our goal is to be a top-performing bank that attracts and retains top talent and generates profitable growth and long-term shareholder value

EX-99.1

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EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces Third Quarter 2025 Financial Results

•

Net income of $211.3 million in Q3 2025, compared to net income of $210.4 million in Q2 2025.

•

Earnings per share (“EPS”) of $3.15 in Q3 2025 vs. $3.09 in Q2 2025.

•

Net interest income of $646.5 million in Q3 2025, an increase of $15.0 million compared to Q2 2025:

•

Net interest margin of 3.51% in Q3 2025, compared to 3.49% in Q2 2025; net interest margin on a taxable equivalent basis of 3.90% in Q3 2025, compared to 3.85% in Q2 2025.

•

Non-interest income of $171.2 million in Q3 2025, compared to

$168.5 million in Q2 2025.

•

Operating expenses amounted to $495.3 million, compared to $492.8 million in Q2 2025.

•

Credit quality metrics:

•

Non-performing loans held-in-portfolio (“NPLs”) increased by $190.6 million from Q2 2025, primarily due to two unrelated large commercial loans with book values of $158.3 million and $30.1 million; the NPLs to loans ratio increased to 1.30% from 0.82% in Q2 2025.

•

Net charge-offs (“NCOs”) increased by $15.6 million from Q2 2025, mainly due to a

$13.5 million commercial loan charge-off on the $30.1 million commercial NPL inflow; annualized NCOs to average loans held-in-portfolio at 0.60% vs. 0.45% in Q2 2025.

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.03% vs. 2.02% in Q2 2025; and

•

ACL to NPLs at 156.6% vs. 246.9% in Q2 2025.

•

Loans held-in-portfolio,

excluding loans held-for-sale, amounted to $38.7 billion, an increase of $502.0 million from Q2 2025; average quarterly loan balances higher by $859.2 million.

•

Money market and investment securities decreased by $1.5 billion from Q2 2025; average quarterly balances decreased by $111.6 million.

•

Deposits at $66.5 billion, decreased $704.1 million from Q2 2025, including a decrease of $841.9 million in P.R. public deposits; average quarterly deposits higher by $793.2 million, including an increase of $433.2 million in P.R. public deposits.

•

Common Equity Tier 1 ratio of 15.79%, Common Equity per share of $91.00 and Tangible Book Value per share increased $3.71 to $79.12.

•

Capital actions for the third quarter of 2025 included the repurchase of 1,000,862 shares of common stock for $119.4 million, at an average price of $119.33 per share and the declaration of a common stock dividend of $0.75 per share, an increase from $0.70 per share. As of September 30, 2025, a total of $429.0 million remained available for stock repurchases under the active repurchase authorization.

1

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $211.3 million for the quarter ended September 30, 2025, compared to net income of $210.4 million for the quarter ended June 30, 2025.

“We are very pleased with our strong results in the third quarter, which were driven by higher revenues, continued expansion of our net interest margin, and discipline in expense management,” said Javier D. Ferrer, President and Chief Executive Officer of Popular, Inc. “We are also encouraged by strong loan growth in both markets, stable customer deposit balances, and solid performance across most fee-generating segments, including robust transaction activity supported by continued customer growth.

We are focused on executing on our new strategic framework, which has three objectives: be the #1 bank for our customers, be simple and efficient, and be a top-performing bank with first-rate talent and which delivers sustainable returns to our shareholders. This framework guides our Transformation, which continues to show steady and notable progress.

Our team is clear about our priorities and energized about the opportunities that lie ahead. I want to thank all our colleagues for their dedication and outstanding work—their commitment continues to drive our success.”

2

Earnings Highlights

(Unaudited)

Quarters ended

Nine months ended

(Dollars in thousands, except per share information)

30-Sep-25

30-Jun-25

30-Sep-24

30-Sep-25

30-Sep-24

Net interest income

$ 646,505

$ 631,549

$ 572,473

$ 1,883,651

$ 1,691,529

Provision for credit losses

75,125

48,941

71,448

188,147

190,840

Net interest income after provision for credit losses

571,380

582,608

501,025

1,695,504

1,500,689

Other non-interest income

171,195

168,477

164,082

491,733

494,206

Operating expenses

495,287

492,761

467,321

1,459,060

1,420,010

Income before income tax

247,288

258,324

197,786

728,177

574,885

Income tax expense

35,971

47,884

42,463

128,918

138,490

Net income

$ 211,317

$ 210,440

$ 155,323

$ 599,259

$ 436,395

Net income applicable to common stock

$ 210,964

$ 210,087

$ 154,970

$ 598,200

$ 435,336

Net income per common share-basic

$ 3.15

$ 3.09

$ 2.16

$ 8.78

$ 6.06

Net income per common share-diluted

$ 3.14

$ 3.09

$ 2.16

$ 8.78

$ 6.05

3

Non-GAAP Financial Measures

Th

EX-99.1

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EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces Second Quarter 2025 Financial Results

•

Net income of $210.4 million in Q2 2025, compared to net income of $177.5 million in Q1 2025.

•

Earnings per share (“EPS”) of $3.09 in Q2 2025 vs. $2.56 in Q1 2025.

•

Net interest income of $631.5 million in Q2 2025, an increase of $25.9 million when compared to Q1 2025.

•

Net interest margin of 3.49% in Q2 2025, compared to 3.40% in Q1 2025; net interest margin on a taxable equivalent basis of 3.85% in Q2 2025, compared to 3.73% in Q1 2025.

•

Non-interest income of $168.5 million in Q2 2025,

compared to $152.1 million in Q1 2025.

•

Operating expenses amounted to $492.8 million, compared to $471.0 million in Q1 2025.

•

Credit quality metrics improved:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $2.4 million from Q1 2025; NPLs to loans ratio decreased two basis points to 0.82%;

•

Net charge-offs (“NCOs”) decreased by $6.9 million from Q1 2025; annualized NCOs to average

loans held-in-portfolio at 0.45% vs. 0.53% in Q1 2025.

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.02% vs. 2.05% in Q1 2025; and

•

ACL to NPLs at 246.9% vs. 242.7% in Q1 2025.

•

Money market and investment securities increased by $1.1 billion from Q1 2025; average quarterly balances increased by $261.9 million.

•

Loans held in portfolio, excluding loans held-for-sale, amounted to $38.2 billion, up $931.1 million from Q1 2025; average quarterly loan balances higher by $579.0 million.

•

Deposit balances amounted to $67.2 billion, an increase of $1.4 billion from Q1 2025; average quarterly deposits higher by $498.6 million.

•

Common Equity Tier 1 ratio of 15.91%, Common Equity per share of $87.31 and Tangible Book Value per share increase of $3.39 to $75.41 at June 30, 2025.

•

Capital actions during the quarter ended June 30, 2025 included the repurchase of 1,136,390 shares of common stock for $112.0 million at an average price of $98.54 per share. As of June 30, 2025, a total of $451.5 million had been repurchased under a common stock repurchase authorization of up to $500 million announced in Q3 2024.

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $210.4 million for the quarter ended June 30, 2025, compared to net income of $177.5 million for the quarter ended March 31, 2025.

“We delivered strong performance in the second quarter, highlighted by higher net interest income, an expanding net interest margin, healthy loan and deposit growth, and improved credit quality,” said Javier D. Ferrer, President and Chief Executive Officer of Popular, Inc. “I would like to recognize our colleagues, whose hard work made these achievements possible. I assume the role of CEO with a deep sense of responsibility and genuinely honored by the privilege of leading such a talented and dedicated team.

We recently announced an increase in our quarterly common stock dividend, from $0.70 to $0.75 per share, and a new common stock repurchase program of up to $500 million — actions that reflect the strength of our capital position and our continued commitment to delivering value to shareholders.

Our focus continues to be on executing our Transformation, ensuring we are the #1 bank for our customers while simplifying our operations to improve efficiency. With the progress we are making, we are optimistic about our future and confident in our ability to drive sustained performance.”

4

Significant Events

Capital actions

On July 16, 2025, the Corporation announced the following capital actions:

•

an increase in the Corporation’s quarterly common stock dividend from $0.70 to $0.75 per share, commencing with the dividend payable in the fourth quarter of 2025, subject to the approval by the Corporation’s Board of Directors; and

•

a new common stock repurchase program of up to $500 million.

This new common stock repurchase program is in addition to the $500 million common stock repurchase program announced by the Corporation on July 24, 2024 (the “2024 Repurchase Program”). As of July 15, 2025, approximately $32.8 million remained available for common stock repurchases under the 2024 Repurchase Program.

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 timing, quantity and price of such repurchases will be subject to various factors, including market conditions, the Corporation’s capital position and financial performance, the capital impact of strategic initiatives and regulatory and tax considerations. 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.

Earnings Highlights

(

EX-99.1

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EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces First Quarter 2025 Financial Results

•

Net income of $177.5 million in Q1 2025, compared to net income of $177.8 million in Q4 2024.

•

Net interest income of $605.6 million in Q1 2025, an increase of $14.8 million when compared to Q4 2024.

•

EPS of $2.56 in Q1 2025 vs. $2.51 in Q4 2024.

•

Net interest margin of 3.40% in Q1 2025, compared to 3.35% in Q4 2024; net interest margin on a taxable equivalent basis of 3.73% in Q1 2025, compared to 3.62% in Q4 2024.

•

Non-interest income of $152.1 million in Q1 2025, compared to

$164.7 million in Q4 2024.

•

Operating expenses amounted to $471.0 million, compared to $467.6 million in Q4 2024.

•

Credit quality metrics improved:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $36.7 million from Q4 2024; NPLs to loans ratio decreased eleven basis points to 0.84%;

•

Net charge-offs decreased by $18.3 million from Q4 2024; annualized NCOs to average loans held-in-portfolio at 0.53% vs. 0.74% in Q4 2024.

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.05% vs. 2.01% in Q4 2024; and

•

ACL to NPLs at 242.7% vs. 212.7% in Q4 2024.

•

Money market and investment securities increased by $944.3 million from Q4 2024; average quarterly balances increased by $1.2 billion.

•

Loans held in portfolio, excluding loans held-for-sale, amounted to $37.3 billion, up $146.4 million from Q4 2024; average quarterly loan balances higher by $445.6 million.

•

Deposit balances amounted to $65.8 billion, an increase of $934.9 million from Q4 2024; average quarterly deposits higher by $1.6 billion.

•

Common Equity Tier 1 ratio of 16.11%, Common Equity per share of $83.75 and Tangible Book Value per share of $72.02 at March 31, 2025, an increase of $3.86 per share from Q4 2024.

•

Capital actions during Q1 2025 included 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 a common stock repurchase authorization of up to $500 million announced in Q3 2024.

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $177.5 million for the quarter ended March 31, 2025, compared to net income of $177.8 million for the quarter ended December 31, 2024.

Ignacio Alvarez, Chief Executive Officer, said: “I am pleased with our strong financial performance in the first quarter. We increased net interest income, grew loans and deposits, maintained strong credit metrics and expanded our customer base. I am particularly pleased with our deposit growth. In Puerto Rico, excluding public deposits, deposits increased by $434 million, demonstrating the strength of our unique retail franchise. We also continued to invest in our people, technology and processes as part of our ongoing Transformation effort. The operating environment has undoubtedly become more uncertain and volatile, but our strong capital and liquidity levels, together with our diversified business model, position us well to perform in a variety of macroeconomic scenarios.

As I step away from the CEO role on June 30, I want to express my sincere gratitude to our employees for all their hard work and support during my tenure. It has been an honor and a privilege to serve as CEO these last eight years. I also wish Javier success in his new role, for which he is more than ready. I am confident that Javier and the team will take Popular to even greater heights.”

1

Earnings Highlights

(Unaudited)

Quarters ended

(Dollars in thousands, except per share information)

31-Mar-25

31-Dec-24

31-Mar-24

Net interest income

$ 605,597

$ 590,759

$ 550,744

Provision for credit losses

64,081

66,102

72,598

Net interest income after provision for credit losses

541,516

524,657

478,146

Other non-interest income

152,061

164,703

163,818

Operating expenses

471,012

467,627

483,113

Income before income tax

222,565

221,733

158,851

Income tax expense

45,063

43,916

55,568

Net income

$ 177,502

$ 177,817

$ 103,283

Net income applicable to common stock

$ 177,149

$ 177,464

$ 102,930

Net income per common share - basic

$ 2.56

$ 2.51

$ 1.43

Net income per common share - diluted

$ 2.56

$ 2.51

$ 1.43

Non-GAAP Financial Measures

This press release 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 more 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.

Net interest income on a taxable equivalent

EX-99.1

2 d892846dex991.htm

EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces Fourth Quarter 2024 Financial Results

•

Net income of $177.8 million in Q4 2024, compared to net income of $155.3 million in Q3 2024.

•

Net income of $614.2 million for the year 2024, compared to net income of $541.3 million for the year 2023. Excluding expenses incurred in connection with the FDIC Special Assessment and prior period tax withholdings, the adjusted net income for 2024 was $646.1 million, compared to $586.6 million in 2023, which also excluded FDIC Special Assessment expenses.

•

Net interest income of $590.8 million in Q4 2024, an increase of $18.3 million when compared to Q3 2024.

•

Net interest margin of 3.35% in Q4 2024, compared to 3.24% in Q3 2024; net interest margin on a taxable equivalent basis of 3.62% in Q4 2024, compared to 3.47% in Q3 2024.

•

Non-interest income of $164.7 million in Q4 2024, compared to

$164.1 million in Q3 2024.

•

Operating expenses amounted to $467.6 million in Q4 2024, flat when compared to Q3 2024.

•

Credit quality metrics remained stable:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $10.6 million from Q3 2024; NPLs to loans ratio decreased five basis points to 0.95%;

•

Net charge-offs (“NCOs”) increased by $8.9 million from Q3 2024; annualized NCOs to average

loans held-in-portfolio (“NCO Ratio”) at 0.74% vs. 0.65% in Q3 2024. For the year 2024, the NCO Ratio was 0.68% vs. 0.44% in 2023;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.01% vs. 2.06% in Q3 2024; and

•

ACL to NPLs at 212.7% vs. 206.0% in Q3 2024.

•

Money market and investment securities increased by $814.8 million from Q3 2024; average quarterly balances decreased by $1.0 billion.

•

Loans in the portfolio, excluding loans held-for-sale, amounted to $37.1 billion, up $912.7 million from Q3 2024; average quarterly loan balances higher by $781.0 million.

•

Deposit balances amounted to $64.9 billion, an increase of $1.2 billion from Q3 2024; average quarterly deposit balances lower by $295.0 million.

•

Capital actions during 2024 included the repurchase of 2,256,420 shares of common stock for $217.3 million, at an average price of $96.32 per share, under a common stock repurchase authorization of up to $500 million announced in Q3 2024, as well as an increase in the Corporation’s quarterly common stock dividend from $0.62 to $0.70 per share, commencing with the dividend declared in the fourth quarter of 2024.

•

Common Equity Tier 1 ratio of 16.03%, Common Equity per share of $79.71 and Tangible Book Value per share of $68.16 at December 31, 2024, a decrease of $0.88 per share from Q3 2024.

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $177.8 million for the quarter ended December 31, 2024, compared to net income of $155.3 million for the quarter ended September 30, 2024.

Ignacio Alvarez, Chief Executive Officer, said: “Our financial results for the fourth quarter were solid, with net income of $178 million. We achieved strong loan growth and continued to increase our net interest income and net interest margin.

1

We closed the year on a strong footing, continuing our positive earnings trajectory with a 10% increase in our adjusted net income.

Our strong capital and liquidity position allowed us to recommence share buybacks and increase our dividend during 2024.

We are also pleased by the acceleration in the pace of our Transformation, which is already generating tangible results. We are making meaningful progress in the modernization of our customer channels and enhancement of our customers’ experience.

I am thankful for our employees’ hard work and dedication throughout the year and optimistic about our prospects for 2025 as we continue to leverage the improved performance of the Puerto Rico economy and the strength of our franchise.”

Earnings Highlights

(Unaudited)

Quarters ended

Years ended

(Dollars in thousands, except per share information)

31-Dec-24

30-Sep-24

31-Dec-23

31-Dec-24

31-Dec-23

Net interest income

$ 590,759

$ 572,473

$ 534,180

$ 2,282,288

$ 2,131,524

Provision for credit losses

66,102

71,448

78,663

256,942

208,609

Net interest income after provision for credit losses

524,657

501,025

455,517

2,025,346

1,922,915

Other non-interest income

164,703

164,082

168,743

658,909

650,724

Operating expenses

467,627

467,321

531,145

1,887,637

1,898,100

Income before income tax

221,733

197,786

93,115

796,618

675,539

Income tax expense (benefit)

43,916

42,463

(1,479)

182,406

134,197

Net income

$ 177,817

$ 155,323

$ 94,594

$ 614,212

$ 541,342

Net income applicable to common stock

$ 177,464

$ 154,970

$ 94,241

$ 612,800

$ 539,930

Net income per common share-basic

$ 2.51

$ 2.16

$ 1.31

$ 8.56

$ 7.53

Net income per common share-diluted

$ 2.51

$ 2.16

$ 1.31

$ 8.56

$ 7.52

Non-G

EX-99.1

2 d846230dex991.htm

EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces Third Quarter 2024 Financial Results

•

Net income of $155.3 million in Q3 2024, compared to net income of $177.8 million in Q2 2024.

•

Net interest income of $572.5 million, an increase of $4.2 million compared to Q2 2024.

•

Net interest margin of 3.24% in Q3 2024, compared to 3.22% in Q2 2024; net interest margin on a taxable equivalent basis of 3.47% in Q3 2024, compared to 3.48% in Q2 2024.

•

Non-interest income of $164.1 million, compared to

$166.3 million in Q2 2024.

•

Operating expenses amounted to $467.3 million, down by $2.3 million when compared to Q2 2024.

•

Credit quality metrics remained stable:

•

Non-performing loans held-in-portfolio (“NPLs”) increased by $19.6 million from Q2 2024; NPLs to loans ratio remained flat at 1.0%;

•

Net charge-offs (“NCOs”) increased by $4.9 million from Q2 2024; annualized NCOs to average

loans held-in-portfolio at 0.65% vs. 0.61% in Q2 2024;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.06% vs. 2.05% in Q2 2024; and

•

ACL to NPLs at 206.0% vs. 213.6% in Q2 2024.

•

Money market and investment securities ending balances decreased by $1.8 billion from Q2 2024

•

Average quarterly balances decreased by $808.2 million.

•

Loans ending balances, excluding loans held-for-sale, amounted to $36.2 billion, an increase of $603.3 million from Q2 2024.

•

Average quarterly loan balances increased by $384.8 million.

•

Ending deposit balances amounted to $63.7 billion, a decrease of $1.9 billion from Q2 2024.

•

Average quarterly deposit balances decreased by $519.9 million.

•

Completed the repurchase of 599,096 shares of common stock for $58.8 million at an average price of $98.11 per share, under the previously announced share repurchase authorization.

•

Common Equity Tier 1 ratio of 16.42%, Common Equity per share of $80.35 and Tangible Book Value per share of $69.04 at September 30, 2024, an increase of $6.33 per share from Q2 2024.

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $155.3 million for the quarter ended September 30, 2024, compared to net income of $177.8 million for the quarter ended June 30, 2024.

Ignacio Alvarez, Chief Executive Officer, said: “Our results for the third quarter reflected an increase in net interest income, which was offset by a higher provision for credit losses. The increase in the provision was related in part to loan growth of nearly 2% during the quarter. Credit quality trends remained stable. While consumer portfolios reflected increased delinquencies, they remain slightly below pre-pandemic levels.

Capital continues to be a source of strength, evidenced by the increase in our dividend and stock repurchases. We also experienced healthy increases in our tangible book value per share and TCE ratio.

We continued to advance our business transformation, making meaningful progress in modernizing our customer channels and improving the customer experience. We are optimistic about the future, as we continue to leverage the opportunities stemming from our robust balance sheet, our dedicated team and extensive customer base.”

1

Earnings Highlights

(Unaudited)

Quarters ended

Nine months ended

(Dollars in thousands, except per share information)

30-Sep-24

30-Jun-24

30-Sep-23

30-Sep-24

30-Sep-23

Net interest income

$ 572,473

$ 568,312

$ 534,020

$ 1,691,529

$ 1,597,344

Provision for credit losses

71,448

46,794

45,117

190,840

129,946

Net interest income after provision for credit losses

501,025

521,518

488,903

1,500,689

1,467,398

Other non-interest income

164,082

166,306

159,549

494,206

481,981

Operating expenses

467,321

469,576

465,984

1,420,010

1,366,955

Income before income tax

197,786

218,248

182,468

574,885

582,424

Income tax expense

42,463

40,459

45,859

138,490

135,676

Net income

$ 155,323

$ 177,789

$ 136,609

$ 436,395

$ 446,748

Net income applicable to common stock

$ 154,970

$ 177,436

$ 136,256

$ 435,336

$ 445,689

Net income per common share-basic

$ 2.16

$ 2.47

$ 1.90

$ 6.06

$ 6.22

Net income per common share-diluted

$ 2.16

$ 2.46

$ 1.90

$ 6.05

$ 6.21

Non-GAAP Financial Measures

This press release 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 more 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.

Net interest income on a taxable equivalent basis

Net interest income, on a taxable equivalent basis, is presented with its different components in

EX-99.1

2 d857011dex991.htm

EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces Second Quarter 2024 Financial Results

•

Net income of $177.8 million in Q2 2024, compared to net income of $103.3 million in Q1 2024.

•

Excluding the impact of certain transactions from the results of operations for the first quarter of 2024 (FDIC Special Assessment and prior period tax withholdings), net income in Q2 2024 increased by $42.6 million when compared to adjusted net income of $135.2 million in Q1 2024.

•

Net interest income amounted to $568.3 million, an increase of $17.6 million compared to Q1 2024.

•

Net interest margin of 3.22% in Q2 2024, compared to 3.16% in Q1 2024; net interest margin on a taxable equivalent basis of 3.48% in Q2 2024, compared to 3.38% in Q1 2024.

•

Non-interest income of $166.3 million, compared to

$163.8 million in Q1 2024.

•

Operating expenses amounted to $469.6 million, down by $13.5 million compared to Q1 2024. Excluding the impact of the transactions mentioned above from the first quarter of 2024, operating expenses increased by $7.2 million or 1.5%.

•

Credit quality remains stable with improved credit metrics:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $12.3 million from Q1 2024; NPLs to loans ratio remained flat at 1.0%;

•

Net charge-offs (“NCOs”) decreased by $8.6 million from Q1 2024; annualized NCOs at 0.61% of

average loans held-in-portfolio vs. 0.71% in Q1 2024;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.05% vs. 2.11% in Q1 2024; and

•

ACL to NPLs at 213.6% vs. 208.8% in Q1 2024.

•

Loans ending balances, excluding loans held-for-sale, amounted to $35.6 billion, an increase of $472.9 million from Q1 2024.

•

Average quarterly loan balances increased by $332.2 million.

•

Ending deposit balances amounted to $65.5 billion, an increase of $1.7 billion from Q1 2024.

•

Average quarterly deposit balances increased by $993.5 million.

•

Common Equity Tier 1 ratio of 16.48%, Common Equity per share of $73.94 and Tangible Book Value per share of $62.71 at June 30, 2024.

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $177.8 million for the quarter ended June 30, 2024, compared to net income of $103.3 million for the quarter ended March 31, 2024. Net income in the first quarter of 2024 included a $9.1 million after tax expenses arising from the impact of the FDIC special assessment (the “FDIC Special Assessment”) and a $22.9 million tax expense related to prior period intercompany distributions from the Corporation’s U.S subsidiaries. Excluding the impact of these items from the results of the first quarter of 2024, net income increased by $42.6 million during the quarter ended June 30, 2024.

Ignacio Alvarez, President and Chief Executive Officer, said: “We are very pleased with our financial performance for the quarter. Our strong earnings were driven by higher net interest income and lower provision for credit losses. We also expanded our net interest margin by six basis points. Credit quality trends remained positive, with lower net charge-offs as well as lower levels and inflows of non-performing loans.

Our solid capital position allows us to continue to serve the needs of our customers, while prudently increasing our dividend and returning capital to our shareholders. Reflecting this strength, we announced a 13% increase in our quarterly common stock dividend and a $500 million common stock repurchase authorization.

1

We continue to successfully execute on our Transformation to better serve our customers and drive returns over time. This includes investing in talent and technology to deepen our relationships with customers and maximize the opportunities inherent in our franchise. I am proud of the enthusiasm and commitment demonstrated by our colleagues and optimistic about the future.”

2

Significant Events

Capital actions

On July 24, 2024, the Corporation announced the following capital actions:

•

common stock repurchases of up to $500 million; and

•

an increase in the Corporation’s quarterly common stock dividend from $0.62 to $0.70 per share, commencing with the dividend payable in the first quarter of 2025, subject to the approval by the Corporation’s Board of Directors.

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 timing, quantity and price of such repurchases will be subject to various factors, including market conditions, the Corporation’s capital position and financial performance, the capital impact of strategic initiatives and regulatory and tax considerations. 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

EX-99.1

2 d830538dex991.htm

EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces First Quarter 2024 Financial Results

•

Net income of $103.3 million in Q1 2024, compared to net income of $94.6 million in Q4 2023.

•

Q1 2024 results include an after-tax impact of $9.1 million related to the FDIC Special Assessment compared to $45.3 million in Q4 2023, as well as a $22.9 million expense related to taxes due from prior period distributions from the Corporation’s U.S. based subsidiary, as explained further below.

•

Excluding the after-tax impact of the FDIC Special Assessment and the

tax expense related to prior period intercompany distributions, adjusted net income was $135.2 million and $139.9 million for Q1 2024 and Q4 2023, respectively.

•

Net interest income amounted to $550.7 million, an increase of $16.6 million compared to Q4 2023.

•

Net interest margin of 3.16% in Q1 2024, compared to 3.08% in Q4 2023; net interest margin on a taxable equivalent basis of 3.38% in Q1 2024, compared to 3.26% in Q4 2023.

•

Non-interest income of $163.8 million, compared to

$168.7 million in Q4 2023.

•

Operating expenses amounted to $483.1 million, a decrease of $48.0 million compared to Q4 2023. Excluding the impact of the FDIC Special Assessment in Q1 2024 and Q4 2023, and expenses associated with the prior period intercompany distributions, operating expenses increased by $2.7 million.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $3.5 million from Q4 2023; NPLs to loans ratio flat at 1.0%;

•

Net charge-offs (“NCOs”) increased by $5.3 million from Q4 2023; annualized NCOs at 0.71% of

average loans held-in-portfolio vs. 0.66% in Q4 2023;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.11% vs. 2.08% in Q4 2023; and

•

ACL to NPLs at 208.8% vs. 204.0% in Q4 2023.

•

Loans ending balances, excluding loans held-for-sale, increased by $53.8 million and by $615.5 million in average quarterly balances, from Q4 2023.

•

Ending deposit balances increased by $190.5 million while average quarterly balances increased by $767.2 million, from Q4 2023.

•

Common Equity Tier 1 ratio of 16.36%, Common Equity per Share of $71.32 and Tangible Book Value per Share of $60.06 at March 31, 2024.

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $103.3 million for the quarter ended March 31, 2024, compared to net income of $94.6 million for the quarter ended December 31, 2023. Excluding the after-tax impact during the first quarter of 2024 and the fourth quarter of 2023 of the FDIC Special Assessment and the $22.9 million tax expense due to prior period intercompany distributions during the first quarter of 2024, adjusted net income was $135.2 million and $139.9 million for Q1 2024 and Q4 2023, respectively.

Ignacio Alvarez, President and Chief Executive Officer, said: “We are pleased to report solid earnings for the first quarter after considering the impact of an additional accrual for the FDIC special assessment and a tax related expense associated with prior period intercompany distributions. We continued to benefit from a stable deposit base, increased our net interest income by 3% and expanded our net interest margin by eight basis points. Credit remained stable, with trends similar to recent periods. The strength of our liquidity and capital ratios positions us well to continue pursuing sustainable business growth and delivering positive results. I want to thank our colleagues for their continued dedication and commitment to serve our customers and contribute to Popular’s success.”

1

Significant Events

FDIC Special Assessment Increase in Estimate

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. The special assessments would be collected over eight quarters in 2024 and 2025 with the first assessment period beginning in January 1, 2024. 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 estimated assessment at that time.

The special assessment amount and collection period may change as the estimated loss is periodically adjusted or if the total amount collected varies. The most recent loss estimate from the FDIC has increased from the $16.3 billion issued when the FDIC Special Assessment was approved. As a result, the Corporation recorded an additional expense of $14.3 million, $9.1 million net of tax, in the first quarter of 2024, based on the updated loss e

EX-99.1

2 d730513dex991.htm

EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces Fourth Quarter 2023 Financial Results

•

Net income of $94.6 million in Q4 2023, compared to net income of $136.6 million in Q3 2023; excluding the $45.3 million after-tax impact during the fourth quarter of the FDIC Special Assessment (defined below), adjusted net income was $139.9 million.

•

Net income of $541.3 million for the year 2023, compared to net income of $1.1 billion for the year 2022. Excluding the effects of the FDIC Special Assessment, the adjusted net income for the year 2023 was $586.6 million, compared to an adjusted net income of $807.8 million for the year 2022, excluding the effects of the partial release of $68.2 million of the deferred tax asset valuation allowance and the $226.6 million impact of the completed Evertec Transactions and related accounting adjustments, in which the Corporation acquired certain critical channels from Evertec, Inc. (“Evertec”) and completed the sale of its shares of Evertec.

•

Net interest income amounted to $534.2 million, flat compared to Q3 2023.

•

Net interest margin of 3.08% in Q4 2023, compared to 3.07% in Q3 2023; net interest margin on a taxable equivalent basis of 3.26% in Q4 2023, compared to 3.24% in Q3 2023.

•

Non-interest income of $168.7 million, an increase of

$9.2 million compared to Q3 2023.

•

Operating expenses amounted to $531.1 million, including the before-tax $71.4 million FDIC Special Assessment; an increase of $65.2 million compared to Q3 2023. Excluding the FDIC Special Assessment, operating expenses decreased by $6.2 million.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $3.9 million from Q3 2023; NPLs to loans ratio at 1.0% vs. 1.1% in Q3 2023;

•

Net charge-offs (“NCOs”) increased by $24.3 million from Q3 2023; annualized NCOs at 0.66% of

average loans held-in-portfolio vs. 0.39% in Q3 2023;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.08% vs. 2.09% in Q3 2023; and

•

ACL to NPLs at 204.0% vs. 196.7% in Q3 2023.

•

Loans ending balances increased by $1.0 billion and by $1.0 billion in average quarterly balances, from Q3 2023.

•

Ending deposit balances increased by $280.6 million while average quarterly balances increased by $285.9 million, from Q3 2023.

•

Common Equity Tier 1 ratio of 16.30%, Common Equity per Share of $71.03 and Tangible Book Value per Share of $59.74 at December 31, 2023.

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $94.6 million for the quarter ended December 31, 2023, compared to net income of $136.6 million for the quarter ended September 30, 2023. Excluding the impact during the fourth quarter of the FDIC Special Assessment, adjusted net income was $139.9 million.

Ignacio Alvarez, President and Chief Executive Officer, said: “We delivered solid fourth quarter and year-end results and entered 2024 with strong momentum. Notwithstanding the interest rate environment and the disruptions in the banking market early in the year, we were able to maintain stable net interest income as we grew loans by approximately $1 billion during the quarter and a total of $3 billion for the full year.

We continued to experience strong client activity during the year, growing our customer base in Puerto Rico by 34,000 reflecting the continued strength of the local economy and our diversified product offerings. Excluding the gain from the Evertec transaction in 2022, we grew non-interest income by $11 million. While we saw some credit normalization in our consumer portfolios, credit quality remained strong. We were also able to manage our operating expenses at the same time we continued to invest in our transformation efforts.

Our CET1 ratio at year-end was 16.3% and our tangible equity increased by 33%, or $14.77 per share. Our strong liquidity and capital ratios position us well to continue to support responsible growth in 2024.

I would like to express my gratitude and appreciation to our employees for all their hard work and dedication during the year. While conscious that we are living in a period of great uncertainty, the outlook for the macroenvironment in Puerto Rico remains positive and we look forward to 2024 with optimism.”

1

Significant Events

FDIC Special Assessment

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 (“DIF”) 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.

Under the final rule, the assessment base for the special assessment is equal to an insured depository institution’s (“IDI”) estimated uninsured deposits, a

EX-99.1

2 d922025dex991.htm

EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces Third Quarter 2023 Financial Results

•

Net income of $136.6 million in Q3 2023, including an after-tax goodwill impairment charge in our U.S. based equipment leasing subsidiary of $16.4 million, compared to net income of $151.2 million in Q2 2023.

•

Net interest income amounted to $534.0 million, an increase of $2.4 million compared to Q2 2023.

•

Net interest margin of 3.07% in Q3 2023, compared to 3.14% in Q2 2023; net interest margin on a taxable equivalent basis of 3.24% in Q3 2023, compared to 3.29% in Q2 2023.

•

Non-interest income of $159.5 million, or $1.0 million lower

than in Q2 2023.

•

Operating expenses amounted to $466.0 million, an increase of $5.7 million compared to Q2 2023, including a non-cash goodwill impairment of $23.0 million.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $24.0 million from Q2 2023; NPLs to loans ratio at 1.1% vs. 1.2% in Q2 2023;

•

Net charge-offs (“NCOs”) increased by $8.7 million from Q2 2023; annualized NCOs at 0.39% of

average loans held-in-portfolio vs. 0.29% in Q2 2023;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.09% vs. 2.12% in Q2 2023; and

•

ACL to NPLs at 196.7% vs. 181.6% in Q2 2023.

•

Loans increased by $998.4 million and by $764.4 million in average quarterly balances, from Q2 2023.

•

Ending deposit balances decreased by $667.2 million while average quarterly balances increased by $1.4 billion, from Q2 2023.

•

Common Equity Tier 1 ratio of 16.81%, Common Equity per Share of $61.49 and Tangible Book Value per Share of $50.20 at September 30, 2023.

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $136.6 million for the quarter ended September 30, 2023, including an after-tax goodwill impairment charge in our U.S. based equipment leasing subsidiary of $16.4 million, compared to net income of $151.2 million for the quarter ended June 30, 2023.

Ignacio Alvarez, President and Chief Executive Officer, said: “We are pleased to report another strong quarter. Net income totaled $137 million, which includes a $16 million after-tax goodwill impairment in our U.S. based equipment leasing subsidiary. Excluding this impact, net income would have been $153 million, $2 million higher than the previous quarter.

Our positive results were driven by higher revenues and lower operating expenses, excluding the non-cash goodwill impairment, partially offset by a higher provision for loan losses. We grew our loan portfolio by $1 billion, which contributed to an increase in net interest income despite higher deposit costs. Approximately $600 million of the increase took place in Puerto Rico, reflecting strong economic activity. During the quarter, we crossed a significant milestone, reaching more than 2 million unique customers in Puerto Rico.

Our achievements are made possible by a dedicated team of more than 9,000 colleagues and further strengthen our commitment to our customers, communities and shareholders. Earlier this month we celebrated our 130th anniversary and our team’s energy was palpable. We are proud of our history, which has made us a strong organization with deep-rooted values, and are excited about the opportunities that lie ahead.”

1

Earnings Highlights

(Unaudited)

Quarters ended

Nine months ended

(Dollars in thousands, except per share information)

30-Sep-23

30-Jun-23

30-Sep-22

30-Sep-23

30-Sep-22

Net interest income

$ 534,020

$ 531,668

$ 579,619

$ 1,597,344

$ 1,607,793

Provision for credit losses

45,117

37,192

39,637

129,946

33,499

Net interest income after provision for credit losses

488,903

494,476

539,982

1,467,398

1,574,294

Other non-interest income

159,549

160,471

426,494

481,981

738,597

Operating expenses

465,984

460,284

476,095

1,366,955

1,284,712

Income before income tax

182,468

194,663

490,381

582,424

1,028,179

Income tax expense

45,859

43,503

67,986

135,676

182,677

Net income

$ 136,609

$ 151,160

$ 422,395

$ 446,748

$ 845,502

Net income applicable to common stock

$ 136,256

$ 150,807

$ 422,042

$ 445,689

$ 844,443

Net income per common share-basic

$ 1.90

$ 2.10

$ 5.71

$ 6.22

$ 11.09

Net income per common share-diluted

$ 1.90

$ 2.10

$ 5.70

$ 6.21

$ 11.07

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 Tables D and E for the quarter ended September 30, 2023 and Table F for the nine-month periods ended September 30, 2023 and 2022. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.

Non-GAAP fina

EX-99.1

2 d523281dex991.htm

EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces Second Quarter 2023 Financial Results

•

Net income of $151.2 million in Q2 2023, compared to net income of $159.0 million in Q1 2023.

•

Net interest margin of 3.14% in Q2 2023, compared to 3.22% in Q1 2023; net interest margin on a taxable equivalent basis of 3.29% in Q2 2023, compared to 3.46% in Q1 2023.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $26.9 million from Q1 2023; NPLs to loans ratio at 1.2% vs. 1.3% in Q1 2023;

•

Net charge-offs (“NCOs”) decreased by $8.8 million from Q1 2023; annualized NCOs at 0.29% of

average loans held-in-portfolio vs. 0.41% in Q1 2023;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.12% vs. 2.13% in Q1 2023; and

•

ACL to NPLs at 181.6% vs. 167.1% in Q1 2023.

•

Loans increased by $692.5 million and by $630.4 million in average quarterly balances, from Q1 2023.

•

Ending deposit balances increased by $3.1 billion and average quarterly balances increased by $1.0 billion, from Q1 2023.

•

Total borrowings at Q2 2023 were $1.4 billion, flat compared to Q1 2023.

•

Common Equity Tier 1 ratio of 16.87%, Common Equity per Share of $63.00 and Tangible Book Value per Share of $51.37 at June 30, 2023.

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $151.2 million for the quarter ended June 30, 2023, compared to net income of $159.0 million for the quarter ended March 31, 2023.

Ignacio Alvarez, President and Chief Executive Officer, said: “Popular achieved another strong quarter, with net income of $151 million. We are particularly pleased by the growth in our loan portfolios, both in Puerto Rico and the United States, which allowed us to maintain our net interest income stable despite higher deposit costs. Our deposit base remained strong and well-diversified. Our results were further bolstered by positive credit quality trends and healthy non-interest income. We continued investing in areas such as people, regulatory compliance and technology, confident that they will contribute to our long-term success. We are encouraged by the resiliency of the U.S. economy and sustained economic activity in Puerto Rico. Our strong levels of capital and liquidity position us well to support such activity and serve the evolving needs of our growing customer base.”

1

Significant Events

Redemption of Senior Notes

On March 13, 2023, the Corporation issued $400 million aggregate principal amount of 7.25% Senior Notes due 2028 (the “2028 Notes”) in an underwritten public offering. On July 14, 2023, the Corporation announced that it will use a portion of the net proceeds of the 2028 Notes offering to redeem, on August 14, 2023, the outstanding $300 million aggregate principal amount of its 6.125% Senior Notes due September 2023. The redemption price will be equal to 100% of the principal amount plus accrued and unpaid interest through the redemption date.

Refer to Table I for further details of liquidity sources.

Earnings Highlights

(Unaudited)

Quarters ended

Six months ended

(Dollars in thousands, except per share information)

30-Jun-23

31-Mar-23

30-Jun-22

30-Jun-23

30-Jun-22

Net interest income

$ 531,668

$ 531,656

$ 533,862

$ 1,063,324

$ 1,028,174

Provision for credit losses (benefit)

37,192

47,637

9,362

84,829

(6,138 )

Net interest income after provision for credit losses

494,476

484,019

524,500

978,495

1,034,312

Other non-interest income

160,471

161,961

157,411

322,432

312,103

Operating expenses

460,284

440,687

406,278

900,971

808,617

Income before income tax

194,663

205,293

275,633

399,956

537,798

Income tax expense

43,503

46,314

64,212

89,817

114,691

Net income

$ 151,160

$ 158,979

$ 211,421

$ 310,139

$ 423,107

Net income applicable to common stock

$ 150,807

$ 158,626

$ 211,068

$ 309,433

$ 422,401

Net income per common share-basic

$ 2.10

$ 2.22

$ 2.77

$ 4.32

$ 5.46

Net income per common share-diluted

$ 2.10

$ 2.22

$ 2.77

$ 4.32

$ 5.46

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 Tables D and E for the quarter ended June 30, 2023 and Table F for the six-month periods ended June 30, 2023 and 2022. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.

Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies.

Net interest income for the quarter ended June 30, 2023 was $531.7 million, flat over the previous quarter. Net interest income on a taxable equivale

EX-99.1

2 d461985dex991.htm

EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces First Quarter 2023 Financial Results

•

Net income of $159.0 million in Q1 2023, compared to net income of $257.1 million in Q4 2022; the results of Q4 2022 included a tax benefit of $68.2 million related to the partial release of the deferred tax valuation allowance in the U.S.

•

Net interest margin of 3.22% in Q1 2023, compared to 3.28% in Q4 2022; net interest margin on a taxable equivalent basis of 3.46% in Q1 2023, compared to 3.64% in Q4 2022.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $27.1 million from Q4 2022; NPLs to loans ratio at 1.3% vs. 1.4% in Q4 2022;

•

Net charge-offs (“NCOs”) increased by $1.6 million from Q4 2022; annualized NCOs at 0.41% of

average loans held-in-portfolio vs. 0.39% in Q4 2022;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.13% vs. 2.25% in Q4 2022; and

•

ACL to NPLs at 167.1% vs. 163.9% in Q4 2022.

•

Loans increased by $260.6 million, $334.5 million in average quarterly balances, from Q4 2022.

•

Deposit balances decreased by $273.3 million, $1.3 billion in average quarterly balances, from Q4 2022.

•

Total borrowings at Q1 2023 were $1.4 billion, flat compared to Q4 2022.

•

Common Equity Tier 1 ratio of 16.73%, Common Equity per Share of $61.82 and Tangible Book Value per Share of $50.15 at March 31, 2023.

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $159.0 million for the quarter ended March 31, 2023, compared to net income of $257.1 million for the quarter ended December 31, 2022. Excluding the effects of the partial release of $68.2 million of the deferred tax asset valuation allowance, the net income for the fourth quarter was $188.9 million.

Ignacio Alvarez, President and Chief Executive Officer, said: “We reported strong results for the first quarter as we continued to support our clients during a period of increased volatility and uncertainty. Our diversified business model and strong deposit base, robust capital and liquidity positions are a source of strength and allow us to continue to meet our clients’ needs, as reflected by the growth in our loan portfolio and client base during the quarter. We remain optimistic about the opportunities that lie ahead as we remain vigilant of potential risks stemming from continued inflation and economic and market uncertainty. Economic trends in Puerto Rico are positive, and a considerable amount of recovery funds yet to be disbursed are expected to support additional economic activity in future years. I want to express my gratitude to our colleagues; it is their effort and commitment that lead to our customers’ continued trust in Popular.”

1

Significant Events

Issuance of Senior Notes

On March 13, 2023, the Corporation issued $400 million aggregate principal amount of 7.25% Senior Notes due 2028 (the “Notes”) in an underwritten public offering. The Corporation intends to use the net proceeds of the offering to redeem or repay $300 million aggregate principal amount of its outstanding 6.125% Senior Notes due September 2023.

Refer to Table I for further details of liquidity sources.

Earnings Highlights

(Unaudited)

Quarters ended

(Dollars in thousands, except per share information)

31-Mar-23

31-Dec-22

31-Mar-22

Net interest income

$ 531,656

$ 559,566

$ 494,312

Provision for credit losses (benefit)

47,637

49,531

(15,500 )

Net interest income after provision for credit losses (benefit)

484,019

510,035

509,812

Other non-interest income

161,961

158,465

154,692

Operating expenses

440,687

461,708

402,339

Income before income tax

205,293

206,792

262,165

Income tax expense (benefit)

46,314

(50,347 )

50,479

Net income

$ 158,979

$ 257,139

$ 211,686

Net income applicable to common stock

$ 158,626

$ 256,786

$ 211,333

Net income per common share - basic

$ 2.22

$ 3.56

$ 2.69

Net income per common share - diluted

$ 2.22

$ 3.56

$ 2.69

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 Tables D and E for the quarter ended March 31, 2023 and comparable periods. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.

Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies.

For the quarter ended March 31, 2023, net interest income was $531.7 million, compared to $559.6 million in the previous quarter, a decrease of $27.9 million. The impact of two less days in the quarter results in a reduction of $9.0 million to net interest

EX-99.1

2 d398344dex991.htm

EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces Fourth Quarter 2022 Financial Results

•

Net income of $257.1 million in Q4 2022, compared to net income of $422.4 million in Q3 2022; the results of Q4 2022 included a tax benefit of $68.2 million related to the partial release of the deferred tax valuation allowance in the U.S., while the Q3 2022 results included the benefit of the Evertec Transactions (as defined below) and related accounting adjustments of $226.6 million.

•

Net income of $1.1 billion for the year 2022, compared to net income of $934.9 million for the year 2021.

•

Net interest margin of 3.28% in Q4 2022, compared to 3.32% in Q3 2022; net interest margin on a taxable equivalent basis of 3.64% in Q4 2022, compared to 3.71% in Q3 2022.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $14.0 million from Q3 2022; NPLs to loans ratio remained flat at 1.4%;

•

Net charge-offs (“NCOs”) increased by $13 million from Q3 2022; annualized NCOs at 0.39% of

average loans held-in-portfolio vs. 0.24% in Q3 2022;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.25% vs. 2.23% in Q3 2022; and

•

ACL to NPLs at 163.9% vs. 155.1% in Q3 2022.

•

Common Equity Tier 1 ratio of 16.39%, Common Equity per Share of $56.66 and Tangible Book Value per Share of $44.97 at December 31, 2022.

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $257.1 million for the quarter ended December 31, 2022, compared to net income of $422.4 million for the quarter ended September 30, 2022. Excluding the effects of the partial release of $68.2 million of the deferred tax asset valuation allowance, the net income for the fourth quarter was $188.9 million. The net income for the third quarter was $195.8 million after excluding the impact of the completed Evertec Transactions (as defined below) and related accounting adjustments.

Ignacio Alvarez, President and Chief Executive Officer, said: “We ended 2022 with a solid performance in the fourth quarter helping us achieve record earnings of $1.1 billion for the year. During the quarter, we continued to see broad-based loan growth and strong credit quality metrics, although our net interest income was impacted by higher deposit costs, primarily related to our portfolio of P.R. public deposits.

Our record annual earnings are the product of focusing on long-term customer relationships and sustainable growth strategies. In addition to outstanding earnings, during 2022, we also completed important strategic initiatives such as the acquisition of key customer-facing channels from Evertec and launched a broad-based multi-year, technological and business process transformation across the entire Company. We also returned $631 million to our shareholders through common stock share repurchases and increased our quarterly common stock dividend to $0.55 per share.

During 2023, we will continue to leverage the benefits of the Evertec transaction and will focus on growing and deepening our strong commercial and retail franchise in P.R. as we continue to look for appropriate opportunities in the U.S. market.

While we are aware of the macroeconomic headwinds related to inflation and geopolitical risks, we are confident that given the amount of stimulative support from federal funds, P.R. will continue its growth path, albeit perhaps at a slower pace.

2023 marks our 130th anniversary. During this time, we adapted and transformed ourselves on multiple occasions to address many political, economic and competitive changes that have occurred. We are committed to continuing that transformation by investing in the future of our organization, our people and the communities we serve to meet future challenges and continue to provide value to our shareholders.”

1

Significant Events

Transformation Initiative:

Popular has launched a significant, multi-year corporate transformation initiative designed to expand its digital capabilities, modernize its technology platform, and implement agile and efficient business processes across the Corporation.

Since completing the Evertec Transactions on July 1, 2022, through December 31, 2022, excluding compensation costs of our employees involved in the initiative, we expensed $24 million toward this effort, primarily in professional fees and technology related expenses. In 2023, we plan an expense of approximately $50 million toward this effort, excluding employee compensation and capitalized costs. We expect the expenses tied to this transformation initiative, which will continue through 2025 to result in an enhanced digital experience for our clients, as well as better technology and more efficient processes for our employees. We expect this effort to contribute to better efficiency and higher earnings, resulting in a targeted sustainable return on tangible common equity of 14%

EX-99.1

2 d390418dex991.htm

EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces Third Quarter 2022 Financial Results

•

Net income of $422.4 million in Q3 2022, compared to net income of $211.4 million in Q2 2022; excluding the impact of the Evertec Transactions (as defined below) and related accounting adjustments during the third quarter, net income was $195.8 million.

•

Net interest margin of 3.32% in Q3 2022, compared to 3.09% in Q2 2022; net interest margin on a taxable equivalent basis of 3.71% in Q3 2022, compared to 3.45% in Q2 2022.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $24.5 million from Q2 2022; NPLs to loans ratio at 1.4% vs. 1.6% in Q2 2022;

•

Net charge-offs (“NCOs”) increased by $12.2 million from Q2 2022; annualized NCOs at 0.24% of

average loans held-in-portfolio vs. 0.08% in Q2 2022;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.23% vs. 2.24% in Q2 2022; and

•

ACL to NPLs at 155.1% vs. 142.7% in Q2 2022.

•

Common Equity Tier 1 ratio of 16.04%, Common Equity per Share of $50.26 and Tangible Book Value per Share of $38.69 at September 30, 2022.

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $422.4 million for the quarter ended September 30, 2022, compared to net income of $211.4 million for the quarter ended June 30, 2022. Excluding the effects of the previously announced Evertec Transactions completed during the third quarter, net income was $195.8 million

Ignacio Alvarez, President and Chief Executive Officer, said: “We are pleased with Popular’s performance in the third quarter, which reflected strong loan growth in both the mainland and Puerto Rico, an expansion of our net interest margin, and positive credit quality metrics. We are mindful of the global economic uncertainty and market volatility, but remain optimistic about the future of Puerto Rico, our main market. Consumer activity remains healthy and recovery funds from previous events are expected to provide additional stimulus. With strong fundamentals, prudent management and diversified sources of revenue, we are well-positioned to address the challenges that may lie ahead.

In addition to our financial results, I am extremely proud of our team’s response in the wake of Hurricane Fiona, which impacted Puerto Rico in September. Thanks to their agility and resolve, we mobilized quickly to assist communities in need, serve our customers despite operational challenges and support impacted colleagues. Our colleagues’ performance in events such as this one evidences our unwavering commitment to all the important stakeholders we serve.”

1

Significant Events

Acquisition of Key Customer Channels and Amendments to Commercial Contracts with Evertec and Subsequent Sale of Remaining Ownership Stake in Evertec

On July 1, 2022, the Corporation’s wholly owned subsidiary, Banco Popular de Puerto Rico (“BPPR”), completed its previously announced acquisition of certain assets from Evertec Group, LLC (“Evertec Group”), a wholly owned subsidiary of Evertec, Inc. (“Evertec”), to service certain BPPR channels (“Business Acquisition Transaction”).

As a result of the closing of the Business Acquisition Transaction, BPPR acquired from Evertec Group certain critical channels, including BPPR’s retail and business digital banking and commercial cash management applications. In connection with the Business Acquisition Transaction, BPPR also entered into amended and restated service agreements with Evertec Group pursuant to which Evertec Group will continue to provide various information technology and transaction processing services to Popular, BPPR and their respective subsidiaries.

Under the amended service agreements, Evertec Group no longer has exclusive rights to provide certain of Popular’s technology services. The amended service agreements include discounted pricing and lowered caps on contractual pricing escalators tied to the Consumer Price Index. As part of the transaction, BPPR and Evertec also entered into a revenue sharing structure for BPPR in connection with its merchant acquiring relationship with Evertec.

As consideration for the Business Acquisitions Transaction, BPPR delivered to Evertec Group 4,589,169 shares of Evertec common stock valued at closing at $169.2 million (based on Evertec’s stock price on June 30, 2022 of $36.88). A total of $144.8 million of the consideration for the transaction was attributed to the acquisition of the critical channels of which $28.7 million were attributed to Software Intangible Assets and $116.1 million were attributed to goodwill. The transaction was accounted for as a business combination. The remaining $24.2 million was attributed to the renegotiation of the Master Services Agreement (“MSA”) with Evertec and was recorded as an expense. The Corporation also recorded a credit of $6.9 million in Evertec billings unde

EX-99.1

2 d203637dex991.htm

EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces Second Quarter 2022 Financial Results

•

Net income of $211.4 million in Q2 2022, compared to net income of $211.7 million in Q1 2022.

•

Net interest margin of 3.09% in Q2 2022, compared to 2.75% in Q1 2022; net interest margin on a taxable equivalent basis of 3.45% in Q2 2022, compared to 3.05% in Q1 2022.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $42.0 million from Q1 2022; NPLs to loans ratio at 1.6% vs. 1.8% in Q1 2022;

•

Net charge-offs (“NCOs”) increased by $2.3 million from Q1 2022; annualized NCOs at 0.08% of

average loans held-in-portfolio vs. 0.05% in Q1 2022;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.24% vs. 2.29% in Q1 2022; and

•

ACL to NPLs at 142.7% vs. 130.4% in Q1 2022.

•

Common Equity Tier 1 ratio of 16.39%, Common Equity per Share of $55.78 and Tangible Book Value per Share of $46.18 at June 30, 2022.

SAN JUAN, Puerto Rico — (BUSINESS WIRE) — Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $211.4 million for the quarter ended June 30, 2022, compared to net income of $211.7 million for the quarter ended March 31, 2022.

Ignacio Alvarez, President and Chief Executive Officer, said: “We are very pleased with our results for the second quarter. We earned $211.4 million in net income, with increases in both net interest income and non-interest income as compared to the first quarter. Our net interest income increased by $39.6 million to $533.9 million, driven by improved margin and growth in our loan and investment portfolios. Loan growth was broad based with balances increasing in all categories, except mortgage. The increase in our net interest margin reflects higher interest rates and the strength of our deposit franchise. Consumer spending remained resilient during the quarter and deposit balances continued to grow. Credit quality remained strong with net charge offs at near record lows, and we continued to reduce our non-performing loans. Our liquidity and capital positions remain strong which provide us the flexibility to continue to invest for growth in the future while we continue returning capital to our shareholders.

While we are vigilant regarding the possible negative impacts of record inflation, higher interest rates and the war in Ukraine, we are still seeing growth in the U.S. and P.R. with a historically strong employment market and healthy consumer deposit and spending levels. In Puerto Rico we continue to benefit from the stimulative impact of federal disaster relief spending. We are confident in our ability to continue to deliver results for our shareholders at the same time as we invest in our people, businesses and communities.”

1

Significant Events

Acquisition of Key Customer Channels and Amendments to Commercial Contracts with Evertec

On July 1, 2022, the Corporation’s wholly owned subsidiary, Banco Popular de Puerto Rico (“BPPR”) completed its previously announced acquisition of certain assets and assumption of certain liabilities used by Evertec Group, LLC (“Evertec Group”), a wholly owned subsidiary of Evertec, Inc. (“Evertec”) (NYSE: EVTC), to service certain BPPR channels.

As a result of the closing of the transaction, BPPR acquired from Evertec Group certain critical channels, including BPPR’s retail and business digital banking and commercial cash management applications. BPPR also entered into amended and restated service agreements with Evertec Group pursuant to which Evertec Group will continue to provide various information technology and transaction processing services to Popular, BPPR and their respective subsidiaries.

Under the amended service agreements, Popular will have greater optionality to develop and enhance technology platforms and more flexibility to select service vendors, as Evertec Group will no longer have exclusive rights to provide certain of Popular’s technology services. This is expected to improve Popular’s ability to meet its customer needs in a timely manner. In addition, the amended service agreements are projected to reduce service costs as a result of discounted pricing and lowered caps on contractual pricing escalators tied to the Consumer Price Index. As part of the transaction, BPPR also strengthened its relationship with Evertec in the payments business, including through the incorporation of a revenue sharing structure for BPPR in connection with its merchant acquiring relationship with Evertec.

As consideration for the transaction, BPPR delivered to Evertec Group 4,589,169 shares of Evertec common stock valued at closing at $169 million (based on Evertec’s stock price on June 30, 2022 of $36.88), resulting in an after-tax gain of approximately $112 million.

In terms of capital, the transaction results in a negative impact of approximately $55 million in Popular’s tangible book value as a result of the ne

EX-99.1

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EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces First Quarter 2022 Financial Results

•

Net income of $211.7 million in Q1 2022, compared to net income of $206.1 million in Q4 2021.

•

Net interest margin of 2.75% in Q1 2022, compared to 2.78% in Q4 2021; net interest margin on a taxable equivalent basis of 3.05% in Q1 2022, compared to 3.02% in Q4 2021.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $28.0 million from Q4 2021; NPLs to loans ratio at 1.8% vs. 1.9% in Q4 2021;

•

Net charge-offs (“NCOs”) were $3.8 million, compared to a net recovery of $7.9 million in

Q4 2021; NCOs at 0.05% of average loans held-in-portfolio vs. (0.11%) in Q4 2021;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.29% vs. 2.38% in Q4 2021; and

•

ACL to NPLs at 130.4% vs. 126.9% in Q4 2021.

•

Common Equity Tier 1 ratio of 16.26%, Common Equity per Share of $60.78 and Tangible Book Value per Share of $51.16 at March 31, 2022.

SAN JUAN, Puerto Rico — (BUSINESS WIRE) — Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $211.7 million for the quarter ended March 31, 2022, compared to net income of $206.1 million for the quarter ended December 31, 2021.

Ignacio Alvarez, President and Chief Executive Officer, said: “We had a solid quarter with net income of $212 million, building on the momentum of our record 2021 results. We saw broad-based loan growth, across geographies and most business lines, while maintaining strong asset quality metrics. Net charge-offs were five basis points for the quarter. We continued to see deposit growth from our private sector clients. Our deposit franchise in Puerto Rico will be an even greater source of strength as interest rates rise as expected. Our capital ratios remained strong, allowing us to continue to return capital to our shareholders and increase our common stock dividend. Going forward, we remain optimistic about the economic outlook, yet cognizant of the possible challenges to the macroeconomic environment resulting from the war in Ukraine, inflation and the evolving health situation.

I am thankful to our team who have continued to perform at a high level and deliver results under a myriad of changing conditions. Finally, our thoughts and prayers are with the people of Ukraine as they suffer the horrible consequences of the war.”

1

Earnings Highlights

(Unaudited)

Quarters ended

(Dollars in thousands, except per share information)

31-Mar-22

31-Dec-21

31-Mar-21

Net interest income

$ 494,312

$ 501,283

$ 479,112

Provision for credit losses (benefit)

(15,500 )

(33,050 )

(82,226 )

Net interest income after provision for credit losses (benefit)

509,812

534,333

561,338

Other non-interest income

154,692

164,677

153,653

Operating expenses

402,339

417,394

375,528

Income before income tax

262,165

281,616

339,463

Income tax expense

50,479

75,552

76,831

Net income

$ 211,686

$ 206,064

$ 262,632

Net income applicable to common stock

$ 211,333

$ 205,711

$ 262,279

Net income per common share - Basic

$ 2.69

$ 2.59

$ 3.13

Net income per common share - Diluted

$ 2.69

$ 2.58

$ 3.12

2

Significant Events

Entry into Asset Purchase Agreement with Evertec; Renegotiation and Extension of Commercial Agreements

On February 24, 2022, the Corporation and Banco Popular de Puerto Rico (“BPPR”), entered into an Asset Purchase Agreement (the “Purchase Agreement”), with Evertec, Inc. (“EVERTEC”) and Evertec Group, LLC, a wholly owned subsidiary of EVERTEC (“EVERTEC Group”), pursuant to which BPPR will purchase from EVERTEC Group certain information technology and related assets currently used by EVERTEC to service certain of BPPR’s key channels (the “Acquired Assets”) under the Amended and Restated Master Service Agreement (the “MSA”), dated September 30, 2010, among the Corporation, BPPR and EVERTEC. In connection with the purchase of the Acquired Assets, BPPR will assume certain liabilities relating to the Acquired Assets (together with the purchase of the Acquired Assets, the “Transaction”). The Transaction is expected to close on or about June 30, 2022, subject to the satisfaction of certain closing conditions.

In connection with the consummation of the Transaction (the “Closing”), the Corporation will transfer to EVERTEC Group, as consideration for the Transaction, shares of EVERTEC’s common stock (“EVERTEC Common Stock”) having an aggregate value of approximately $197 million, subject to certain purchase price adjustments, based on a price per share of $42.84, which value was determined at the time of entering into the Purchase Agreement. As a result of this transfer, the Corporation expects that its percentage ownership of the outstanding shares of EVERTEC Common Stock will be reduced from its current level, which is approximately 16.2%, to approximately 10.5% immediately following the Closing. As part of th

EX-99.1

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EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces Fourth Quarter 2021 Financial Results

•

Net income of $206.1 million in Q4 2021, compared to net income of $248.1 million in Q3 2021.

•

Net income of $934.9 million for the year 2021, compared to net income of $506.6 million for the year 2020.

•

Net interest margin of 2.78% in Q4 2021, compared to 2.77% in Q3 2021; net interest margin on a taxable equivalent basis of 3.02% in Q4 2021, compared to 3.04% in Q3 2021.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $85.0 million from Q3 2021; NPLs to loans ratio at 1.9% vs. 2.2% in Q3 2021;

•

Net charge-offs (“NCOs”) was a net recovery of $7.9 million, a favorable variance by

$16.7 million from Q3 2021; NCOs at (0.11%) of average loans held-in-portfolio vs. 0.12% in Q3 2021; NCOs of $20.7 million for the year 2021, a favorable variance by $165.7 million from the year 2020; NCOs at 0.07% of average loans held-in-portfolio for the year 2021 vs. 0.66% for the year 2020;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.38% vs. 2.49% in Q3 2021; and

•

ACL to NPLs at 126.9% vs. 113.6% in Q3 2021.

•

Common Equity Tier 1 ratio of 17.45%, Common Equity per Share of $74.48 and Tangible Book Value per Share of $65.39 at December 31, 2021.

SAN JUAN, Puerto Rico — (BUSINESS WIRE) — Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $206.1 million for the quarter ended December 31, 2021, compared to net income of $248.1 million for the quarter ended September 30, 2021.

Ignacio Alvarez, President and Chief Executive Officer, said: “Our fourth quarter results reflect a strong finish to a record year. During the quarter we continued adding new clients, increasing our deposit base and growing most of our loan portfolios. We also launched a new digital platform where small business customers in Puerto Rico can apply for loans in a more convenient way. And we were especially pleased by the performance of our U.S. mainland operations that achieved commercial loan growth of $726 million, including the $105 million from the K-2 acquisition. Our financial performance in 2021 was driven by solid credit quality trends that led to a benefit in the provision of $194 million. Our net charge-off ratio of 0.07% was the lowest since at least 2004.

Our results reflect the strength of our diverse sources of revenues. Solid financial performance and a strong capital position led to a dividend increase of 22% on our common stock effective Q2 2022 and a common stock repurchase program of $500 million for 2022.

Further demonstrating our commitment to the communities we serve, this fall we gained the certification to a host of our low-cost deposit products that meet the Bank On certification requirements. We are also proud to be included in this year’s Bloomberg Gender-Equality Index (GEI) as we continue to make strides in gender parity at Popular and across the financial industry.

While cognizant of the challenges related to the pandemic, we enter this year ready to build on the momentum of 2021, with an improving economic and fiscal environment in Puerto Rico and the rising interest rate environment.

I want to thank our colleagues whose dedication, resilience and talent helped us achieve our record results. They continue to be our most valuable asset.”

1

Significant Events

Fourth Quarter Financial Highlights

For the fourth quarter of 2021, the Corporation recorded net income of $206.1 million, compared to net income of $248.1 million for the previous quarter. The fourth quarter’s results include a release in the allowance for credit losses of $33.1 million driven by the releases in the Puerto Rico commercial and mortgage portfolios, resulting from improving credit quality, partially offset by reserve increases related to an increase in weight to downside economic scenarios and higher loan volumes. Net interest income was $501.3 million, an increase of $11.9 million compared to the previous quarter, mainly due to higher income from loans issued under the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”), loan growth, coupled with activity from lease financing business acquired in October 2021 by Popular Equipment Finance LLC (“PEF”) and higher income from the repayment of purchased credit deteriorated (“PCD”) loans. Net interest margin increased 1 basis point to 2.78%. Total assets grew by $0.9 billion from the previous quarter, reflecting loan growth in Popular Bank (“PB”) and an increase in deposits across all sectors in Puerto Rico.

Acquisition of K2 Capital Group LLC

On October 15, 2021, PEF, a newly-formed wholly-owned subsidiary of PB, completed the acquisition of certain assets and the assumption of certain liabilities of Minnesota-based K2 Capital Group LLC’s (“K2”) equipment leasing and financing business (the “Acquired Business”). PEF made a pa

EX-99.1

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EX-99.1

EX-99.1

Exhibit 99.1

Popular, Inc. Announces Third Quarter 2021 Financial Results

•

Net income of $248.1 million in Q3 2021, compared to net income of $218.1 million in Q2 2021.

•

Net interest margin of 2.77% in Q3 2021, compared to 2.91% in Q2 2021; net interest margin on a taxable equivalent basis of 3.04% in Q3 2021, compared to 3.22% in Q2 2021.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $52.3 million from Q2 2021; NPLs to loans ratio at 2.2% vs. 2.4% in Q2 2021;

•

Net charge-offs (“NCOs”) increased by $10.1 million from Q2 2021; NCOs at 0.12% of average

loans held-in-portfolio vs. (0.02%) in Q2 2021;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.49% vs. 2.70% in Q2 2021; and

•

ACL to NPLs at 113.6% vs. 114.7% in Q2 2021.

•

Common Equity Tier 1 ratio of 17.36%, Common Equity per Share of $74.66 and Tangible Book Value per Share of $66.01 at September 30, 2021.

SAN JUAN, Puerto Rico — (BUSINESS WIRE) — Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $248.1 million for the quarter ended September 30, 2021, compared to net income of $218.1 million for the quarter ended June 30, 2021.

Ignacio Alvarez, President and Chief Executive Officer, said: “The third quarter was another strong quarter. We achieved net income of $248.1 million, driven by a reserve release of $61 million. The release reflects strong credit quality performance as well as a positive economic outlook. We continued to see higher credit and debit card spending, strong auto and mortgage originations as well as higher deposits. During the quarter we also continued to return capital to our shareholders, completing our $350 million accelerated repurchase program and announcing the redemption of $187 million in high-cost trust preferred securities. On October 15, 2021 we also completed a bolt-on acquisition of a national equipment leasing platform that complements our existing healthcare lending vertical. I am extremely proud of the work our team has accomplished during 2021 as we continue to serve our clients and communities.”

1

Significant Events

Financial Highlights

For the third quarter of 2021, the Corporation recorded net income of $248.1 million, compared to a net income of $218.1 million for the previous quarter. The third quarter’s results include a release in the allowance for credit losses of $61.2 million driven by improving credit quality and the improved macroeconomic outlook. Net Interest income was $489.4 million, an increase of $1.6 million compared to the previous quarter, mainly due to higher average earning assets and higher income from the loans issued under the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”), offset in part by a lower discount amortization of purchased credit deteriorated (“PCD”) loans. Net interest margin decreased 14 basis points to 2.77%. Total assets grew by $1.5 billion from the previous quarter, reflecting an increase in deposits across various sectors, principally from the Puerto Rico public sector.

Acquisition of K2 Capital Group LLC

On October 15, 2021, Popular Equipment Finance, LLC (“PEF”), a newly-formed wholly-owned subsidiary of Popular Bank (“PB”), completed the acquisition of certain assets and the assumption of certain liabilities of Minnesota-based K2 Capital Group LLC’s (“K2”) equipment leasing and financing business (the “Acquired Business”). PEF made a payment to K2 at closing of approximately $159 million in cash, representing a premium of approximately $40 million over the book value of K2’s net assets. An additional approximately $29 million in earnout payments could be payable to K2 over the next three years, contingent upon the achievement of certain agreed-upon financial targets during such period.

Specializing in the healthcare industry, the Acquired Business provides a variety of lease products, including operating and capital leases, and also offers private label vendor finance programs to equipment manufacturers and healthcare organizations. The acquisition provides PB with a national equipment leasing platform that complements its existing healthcare lending business.

As part of the transaction, PEF acquired approximately $119 million in net assets that consisted mainly of capital leases. All of K2’s former employees, including its management team, became PEF employees at the closing of the transaction. The transaction will be accounted for as a business combination.

Capital Actions

Accelerated Share Repurchase

On September 9, 2021, the Corporation completed its previously announced accelerated share repurchase program for the repurchase of an aggregate $350 million of Popular’s common stock. Under the terms of the accelerated share repurchase agreement (the “ASR Agreement”), on May 4, 2021, the Corporation made an initial payment of $350 million and received an in