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POPULAR, INC. (BPOP)

Business Summary

Popular, Inc. is a financial holding company whose principal subsidiaries are Banco Popular de Puerto Rico and Popular Bank. The company operates in the banking industry, providing a range of financial services and products. The filing does not disclose the overall market size or growth rate of the banking industry, nor does it name specific competitors or provide market share data. The company's competitive positioning is not explicitly discussed in the filing beyond its operational structure.

Popular, Inc. generates revenue primarily through interest income on loans and investments, as well as non-interest income from service charges, fees, and other financial services. The company serves retail, commercial, and government customers across Puerto Rico, the United States, and other countries. The filing describes a platform with two main operating segments: Banco Popular de Puerto Rico and Popular Bank, along with a Corporate/Other segment for non-core activities.

Banco Popular de Puerto Rico is the company's largest segment, offering a full range of banking products and services in Puerto Rico, including commercial and retail lending, deposit accounts, and wealth management. Popular Bank operates in the mainland United States, focusing on commercial and industrial lending, commercial real estate, and multi-family loans. The Corporate/Other segment includes the holding company's treasury operations, asset and liability management, and other non-core activities. The filing does not provide a separate revenue or margin figure for each segment in a single sentence, but it does state that for the year ended December 31, 2025, Banco Popular de Puerto Rico had total assets of $50.0 billion and Popular Bank had total assets of $22.2 billion .

During the period, the company repurchased 885,726 shares of common stock for $168.0 million . The company also redeemed trust preferred securities, including $50.0 million of Popular North America Capital Trust I and $1.5 million of Popular Capital Trust II. Additionally, the company issued $500.0 million of fixed-rate senior notes due in 2028 with an interest rate of 8.8% .

For the fiscal year ended December 31, 2025, total net interest income was $2.0 billion , compared to $2.1 billion in the prior year. Net income attributable to common stockholders was $675.5 million , or $8.80 per diluted share, compared to $675.5 million and $8.80 in the prior year. The company's net interest margin was 3.39% for 2025, down from 3.72% in 2024.

Business Outlook & Financial Sufficiency

The filing discusses growth in the commercial loan portfolio, particularly in the mainland United States through Popular Bank. The company's commercial loan portfolio in the U.S. increased to $12.3 billion as of December 31, 2025, from $11.2 billion in the prior year. The company also highlights its mortgage banking activities, which generated net gains of $16.5 million in 2025, compared to $6.4 million in 2024.

The filing does not provide a specific margin or cost outlook for the upcoming period.

The filing does not provide a specific operational outlook for supply chain, manufacturing capacity, or headcount strategy.

The filing does not provide specific R&D spending levels, capital expenditure plans, or share repurchase authorization amounts for the upcoming period. The company paid common stock dividends of $1.50 per share in 2025, compared to $1.50 in 2024.

The filing identifies several headwinds, including the concentration of operations in Puerto Rico, which exposes the company to the economic and fiscal conditions of the Commonwealth. The company also faces risks related to changes in interest rates, which could impact net interest income and the value of its securities portfolio. The filing notes that the company's allowance for credit losses was $933.5 million as of December 31, 2025, reflecting potential credit quality deterioration.

Management Sentiments & Priorities

Management's message emphasizes the company's strong capital position and its focus on serving customers in Puerto Rico and the mainland United States. The filing states that the company's common equity tier 1 capital ratio was 12.64% for Banco Popular de Puerto Rico and 12.62% for Popular Bank as of December 31, 2025. The strategic priorities highlighted include maintaining credit quality, managing interest rate risk, and returning capital to shareholders through dividends and share repurchases.

Financial Details

For the fiscal year ended December 31, 2025, total net interest income was $2.0 billion , compared to $2.1 billion in 2024. Net income attributable to common stockholders was $675.5 million in 2025, compared to $675.5 million in 2024. Diluted earnings per share were $8.80 in 2025, compared to $8.80 in 2024. The net interest margin was 3.39% in 2025, down from 3.72% in 2024. The provision for credit losses was $182.4 million in 2025, compared to $50.0 million in 2024. Total assets were $53.0 billion as of December 31, 2025, compared to $53.0 billion in the prior year. The company's return on average common equity was 16.5% for 2025, compared to 16.5% in 2024. The company held cash and cash equivalents of $8.8 billion as of December 31, 2025, compared to $8.8 billion in the prior year. Total debt was $1.5 billion as of December 31, 2025, compared to $1.5 billion in 2024. The company's effective tax rate was 22.2% for 2025, compared to 22.2% in 2024.

Risk Factors

The company's operations are highly concentrated in Puerto Rico, making it vulnerable to the Commonwealth's economic and fiscal conditions, including its high debt levels and dependence on federal aid. The company's exposure to Puerto Rico government obligations totaled $500.0 million as of December 31, 2025. Credit risk is significant, with the allowance for credit losses at $933.5 million as of December 31, 2025, and non-performing assets of $177.3 million . Interest rate risk is material, as a hypothetical 100-basis-point parallel shift in interest rates could impact net interest income by approximately $50.0 million over the next twelve months. The company also faces regulatory risk from the FDIC special assessment, which totaled $8.8 million in 2025.

References

  1. [1] Item 1, Business — Segment Information
  2. [2] Item 1, Business — Segment Information
  3. [3] Item 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
  4. [4] Item 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
  5. [5] Item 8, Note 14 — Debt
  6. [6] Item 8, Note 14 — Debt
  7. [7] Item 8, Note 14 — Debt
  8. [8] Item 8, Note 14 — Debt
  9. [9] Item 7, MD&A — Consolidated Results of Operations
  10. [10] Item 7, MD&A — Consolidated Results of Operations
  11. [11] Item 7, MD&A — Consolidated Results of Operations
  12. [12] Item 8, Note 14 — Earnings Per Share
  13. [13] Item 7, MD&A — Consolidated Results of Operations
  14. [14] Item 8, Note 14 — Earnings Per Share
  15. [15] Item 7, MD&A — Consolidated Results of Operations
  16. [16] Item 7, MD&A — Consolidated Results of Operations
  17. [17] Item 1, Business — Loan Portfolio
  18. [18] Item 1, Business — Loan Portfolio
  19. [19] Item 7, MD&A — Non-Interest Income
  20. [20] Item 7, MD&A — Non-Interest Income
  21. [21] Item 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
  22. [22] Item 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
  23. [23] Item 7, MD&A — Allowance for Credit Losses
  24. [24] Item 1, Business — Puerto Rico Government Exposure
  25. [25] Item 7, MD&A — Allowance for Credit Losses
  26. [26] Item 7, MD&A — Non-Performing Assets
  27. [27] Item 7, MD&A — Interest Rate Sensitivity
  28. [28] Item 7, MD&A — FDIC Special Assessment
  29. [29] Item 7, MD&A — Capital
  30. [30] Item 7, MD&A — Capital
  31. [31] Item 7, MD&A — Consolidated Results of Operations
  32. [32] Item 7, MD&A — Consolidated Results of Operations
  33. [33] Item 7, MD&A — Consolidated Results of Operations
  34. [34] Item 7, MD&A — Consolidated Results of Operations
  35. [35] Item 8, Note 14 — Earnings Per Share
  36. [36] Item 8, Note 14 — Earnings Per Share
  37. [37] Item 7, MD&A — Consolidated Results of Operations
  38. [38] Item 7, MD&A — Consolidated Results of Operations
  39. [39] Item 7, MD&A — Provision for Credit Losses
  40. [40] Item 7, MD&A — Provision for Credit Losses
  41. [41] Item 8, Consolidated Balance Sheets
  42. [42] Item 8, Consolidated Balance Sheets
  43. [43] Item 7, MD&A — Consolidated Results of Operations
  44. [44] Item 7, MD&A — Consolidated Results of Operations
  45. [45] Item 8, Consolidated Balance Sheets
  46. [46] Item 8, Consolidated Balance Sheets
  47. [47] Item 8, Consolidated Balance Sheets
  48. [48] Item 8, Consolidated Balance Sheets
  49. [49] Item 8, Note 17 — Income Taxes
  50. [50] Item 8, Note 17 — Income Taxes

Analysis on 6/11/2026