POPULAR, INC.

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 ¹ and Popular Bank had total assets of $22.2 billion ².

During the period, the company repurchased 885,726 ³ shares of common stock for $168.0 million ⁴. The company also redeemed trust preferred securities, including $50.0 million ⁵ of Popular North America Capital Trust I and $1.5 million ⁶ of Popular Capital Trust II. Additionally, the company issued $500.0 million ⁷ of fixed-rate senior notes due in 2028 with an interest rate of 8.8% ⁸.

For the fiscal year ended December 31, 2025, total net interest income was $2.0 billion ⁹, compared to $2.1 billion ¹⁰ in the prior year. Net income attributable to common stockholders was $675.5 million ¹¹, or $8.80 ¹² per diluted share, compared to $675.5 million ¹³ and $8.80 ¹⁴ in the prior year. The company's net interest margin was 3.39% ¹⁵ for 2025, down from 3.72% ¹⁶ in 2024.

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 ¹⁷ as of December 31, 2025, from $11.2 billion ¹⁸ in the prior year. The company also highlights its mortgage banking activities, which generated net gains of $16.5 million ¹⁹ in 2025, compared to $6.4 million ²⁰ 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 ²¹ per share in 2025, compared to $1.50 ²² 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 ²³ as of December 31, 2025, reflecting potential credit quality deterioration.

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 ²⁴ as of December 31, 2025. Credit risk is significant, with the allowance for credit losses at $933.5 million ²⁵ as of December 31, 2025, and non-performing assets of $177.3 million ²⁶. 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 ²⁷ over the next twelve months. The company also faces regulatory risk from the FDIC special assessment, which totaled $8.8 million ²⁸ in 2025.

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% ²⁹ for Banco Popular de Puerto Rico and 12.62% ³⁰ 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.