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
| ($ in millions, except per share information) | Quarters ended | Quarters ended | Quarters ended | Quarters ended | 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.
| 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."
| Line item | Quarters ended | Quarters ended | Quarters ended | Quarters ended | 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 | $67,774 |
| Net income per common share-basic | $4.35 | $3.78 | $0.57 | $3.09 | $1.26 |
| Net income per common share-diluted | $4.35 | $3.78 | $0.57 | $3.09 | $1.26 |
Significant Events
Leadership Transition
Popular announced today that Javier D. Ferrer will retire as President and Chief Executive Officer of the Corporation effective August 31, 2026. Jorge J. García, Executive Vice President and Chief Financial Officer of the Corporation, will succeed Mr. Ferrer as President and Chief Executive Officer effective September 1, 2026. In connection with this appointment, Lidio V. Soriano, Executive Vice President and Chief Risk Officer, has been named Executive Vice President and Chief Financial Officer and Luis Sousa, Senior Vice President and head of the Credit Risk Management Division, has been named Executive Vice President and Chief Risk Officer, effective September 1, 2026.
Capital Actions
On July 23, 2026, the Corporation announced the following capital actions:
- an increase in the Corporation’s quarterly common stock dividend from $0.75 to $0.90 per share, commencing with
the dividend payable in the fourth quarter of 2026, subject to the approval of the Corporation’s Board of Directors; and
- a new common stock repurchase authorization of up to $1 billion.
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 Corporation has repurchased approximately $280 million in common stock to date in 2026 and, as of June 30, 2026, had fully utilized the $500 million common stock repurchase authorization approved in 2025. The timing, quantity and price of the Corporation's common stock repurchases will be subject to various factors, including market conditions, the Corporation’s capital position, liquidity and financial performance, the capital impact of strategic initiatives and tax and regulatory considerations, including regulatory approvals for subsidiary dividends. The common stock repurchase authorization 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.
| (Dollars in thousands) | Quarters ended | Quarters ended | Quarters ended | Quarters ended | Quarters ended |
|---|---|---|---|---|---|
| Popular, Inc. | 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 |
| Net interest margin | 3.66% | 3.66% | — | 3.49% | 17 bps |
| Net interest margin FTE [1] | 4.17% | 4.14% | 3 bps | 3.85% | 32 bps |
| Total deposit costs | 1.57% | 1.56% | 1 bps | 1.78% | -21 bps |
| Core deposit costs (ex. P.R. public deposits) | 1.10% | 1.09% | 1 bps | 1.15% | -5 bps |
| Loan yield FTE [1] | 7.53% | 7.53% | — | 7.50% | 3 bps |
| Money market and investment securities yield FTE [1] | 3.69% | 3.54% | 15 bps | 3.50% | 19 bps |
| Banco Popular de Puerto Rico ("BPPR") Segment | |||||
| Net interest income | $589,922 | $567,947 | $21,975 | $538,475 | $51,447 |
| Net interest margin | 3.85% | 3.85% | — | 3.68% | 17 bps |
| Total deposit costs | 1.32% | 1.31% | 1 bps | 1.52% | -20 bps |
| Popular Bank ("PB" or "Popular US") Segment | |||||
| Net interest income | $113,076 | $111,707 | $1,369 | $102,195 | $10,881 |
| Net interest margin | 3.17% | 3.15% | 2 bps | 2.93% | 24 bps |
| Total deposit costs | 2.73% | 2.69% | 4 bps | 2.95% | -22 bps |
| [1] Refer to non-GAAP measures section in this earnings release. |
Popular, Inc. – Net interest income of $693 million increased $23 million, or 3.5%, from Q1 2026. The increase was primarily driven by higher income from investment securities, and by higher income on loans driven by commercial loan growth, as well as one additional day in the quarter. These were partially offset by higher interest expense on deposits, mainly due to higher average balances of P.R. public deposits, as well as commercial deposits at both banks. Average earning assets increased by $1.8 billion, driven by U.S. Treasury securities, which increased QoQ by $1.4 billion. Average interest-bearing deposits increased by $1.8 billion driven by P.R. public deposits which increased $1.1 billion when compared to Q1 2026 while non-interest bearing demand deposits increased by $167 million.
Net interest margin was unchanged at 3.66%. Deposit costs increased by one basis point to 1.57%. The additional day in the quarter represented $5 million in incremental income in Q2 2026.
NII fully taxable equivalent ("FTE") and NIM FTE (Non-GAAP)- NII FTE of $789 million increased $31 million, or 4.1%, from Q1 2026. NIM on a taxable equivalent basis expanded three basis points to 4.17%. Money market and investment securities yields FTE increased by 15 basis points, mainly driven by purchases and re-investment of maturities into higher yielding U.S. Treasury securities.
Interest income on a taxable equivalent basis includes interest income on U.S. Treasury securities, certain GNMA securities and certain loans in BPPR's portfolios, that are tax exempt in Puerto Rico.
Refer to tables D, E and F for more details on the components of NII and NIM on a taxable equivalent basis.
BPPR Segment – NII of $590 million increased $22 million, or 3.9%, from Q1 2026. Higher NII was driven by a $22 million or 10 basis points increase in money market and investment securities income, resulting from higher average balances and investment securities yields and a $9 million increase in loan income, mainly driven by higher average balances in the commercial, construction and mortgage portfolios. Higher interest expense on deposits of $9 million, mainly due to a $1.1 billion increase in average Puerto Rico public deposit balances and higher commercial deposits. NIM was stable at 3.85%.
Deposit costs increased by one basis point to 1.32%, including the costs of public deposits of 2.61% or five basis points lower than last quarter.
Popular Bank Segment – NII of $113 million increased $1 million, or 1.2%, from Q1 2026. The increase was primarily driven by higher commercial loan income by $4 million and higher yields by seven basis points, attributable to the re-pricing of commercial loans and new originations carrying higher yields, as well as the impact of one additional day in the quarter, partially offset by higher interest expense on deposits by $2 million or six basis points attributable to higher costs of commercial deposits. NIM expanded by two basis points to 3.17%. Deposit costs increased by 4 basis points to 2.73%.
| Line item | Quarters ended | Quarters ended | Quarters ended | Quarters ended | Quarters ended |
|---|---|---|---|---|---|
| (Dollars in thousands) | 30-Jun-26 | 31-Mar-26 | Δ vs 31-Mar-26 | 30-Jun-25 | Δ vs 30-Jun-25 |
| Service charges on deposits | $39,037 | $38,766 | $271 | $38,826 | $211 |
| Debit card fees | 31,538 | 30,009 | 1,529 | 27,918 | 3,620 |
| Credit card fees | 34,783 | 32,000 | 2,783 | 32,502 | 2,281 |
| Other fees | 12,136 | 10,861 | 1,275 | 11,723 | 413 |
| Banking fees | $117,494 | $111,636 | $5,858 | $110,969 | $6,525 |
| Insurance fees | 12,586 | 12,525 | 61 | 12,695 | (109) |
| Brokerage and asset management fees | 9,998 | 10,187 | (189) | 9,058 | 940 |
| Trust fees | 7,751 | 7,339 | 412 | 6,626 | 1,125 |
| Asset management and insurance fees | $30,335 | $30,051 | $284 | $28,379 | $1,956 |
| Mortgage banking activities | 6,267 | 4,213 | 2,054 | 4,872 | 1,395 |
| Other operating income | 26,449 | 19,726 | 6,723 | 24,257 | 2,192 |
| Non-interest income | $180,545 | $165,626 | $14,919 | $168,477 | $12,068 |
Non-interest income of $181 million increased $15 million or 8% from Q1 2026.
Key drivers: Banking fees increased $6 million to $117 million, driven by credit and debit card fees, which increased by $3 million and $2 million, respectively, supported by strong transaction activity and higher purchase volumes, including from commercial credit cards. Other operating income increased by $7 million to $26 million, mainly driven by higher income from investments accounted for under the equity method by $4 million, that benefited from an unrealized gain of $3 million in the valuation of an investment.
Refer to Table B for further details.
| Line item | Quarters ended | Quarters ended | Quarters ended | Quarters ended | Quarters ended |
|---|---|---|---|---|---|
| (Dollars in thousands) | 30-Jun-26 | 31-Mar-26 | Δ vs 31-Mar-26 | 30-Jun-25 | Δ vs 30-Jun-25 |
| Salaries | $134,448 | $134,813 | $(365) | $132,752 | $1,696 |
| Commissions and incentives | 39,911 | 34,903 | 5,008 | 40,551 | (640) |
| Profit sharing | 10,000 | (1,203) | 11,203 | 13,000 | (3,000) |
| Pension, postretirement and other | 44,672 | 47,556 | (2,884) | 43,052 | 1,620 |
| Total personnel costs | $229,031 | $216,069 | $12,962 | $229,355 | $(324) |
| Technology and software | 90,971 | 89,139 | 1,832 | 84,696 | 6,275 |
| Professional fees | 24,484 | 25,553 | (1,069) | 28,108 | (3,624) |
| Business promotion | 27,900 | 22,860 | 5,040 | 26,385 | 1,515 |
| Transactional services | 37,266 | 39,087 | (1,821) | 37,861 | (595) |
| Net occupancy | 27,764 | 27,299 | 465 | 29,140 | (1,376) |
| Other operating expenses | 46,714 | 47,303 | (589) | 57,216 | (10,502) |
| Operating Expenses | $484,130 | $467,310 | $16,820 | $492,761 | $(8,631) |
Total operating expenses of $484 million increased $17 million, or 3%, from Q1 2026.
Key drivers: Total personnel costs increased by $13 million, or 6%, primarily reflecting higher performance-based compensation, including approximately $10 million related to the employee profit-sharing plan and additional accruals for short-term incentive compensation by $5 million, both of which are tied to the Corporation’s financial performance. Full-time equivalent employees were 9,203 as of June 30, 2026, compared to 9,191 as of March 31, 2026.
Business promotion expenses increased $5 million driven by an increase in transaction activity in Q2 2026, tied to our credit card business rewards program and a benefit in Q1 2026 from the expiration of unclaimed customer rewards points.
For a breakdown of operating expenses by category in the consolidated statement of operations refer to Table B.
| INCOME TAXES |
For the second quarter of 2026, the Corporation recorded an income tax expense of $46 million, compared to $47 million for the previous quarter.
The Corporation's effective tax rate ("ETR") is impacted by the composition and source of its taxable income and tax credit activities. The ETR for the second quarter of 2026 was 14.1%, compared to 16.0% for the previous quarter, mainly driven by higher exempt income and the impact of other tax benefits, including the purchase of tax credits and income with preferential tax rates.
| CREDIT QUALITY |
Credit Quality Metrics
| (Dollars in thousands) | Quarters ended | Quarters ended | Quarters ended | Quarters ended | Quarters ended |
|---|---|---|---|---|---|
| Popular, Inc. | 30-Jun-26 | 31-Mar-26 | Δ vs 31-Mar-26 | 30-Jun-25 | Δ vs 30-Jun-25 |
| Provision for credit losses - loan portfolios | $65,154 | $75,689 | $(10,535) | $49,539 | $15,615 |
| Net charge-offs | 104,053 | 60,023 | 44,030 | 42,202 | 61,851 |
| ACL - loans held-in-portfolio | 784,832 | 823,729 | (38,897) | 769,485 | 15,347 |
| NCO Ratio | 1.05% | 0.61% | 44 bps | 0.45% | 60 bps |
| NPL Ratio | 1.04% | 1.17% | -13 bps | 0.82% | 22 bps |
| Allowance / loans held-in-portfolio | 1.97% | 2.10% | -13 bps | 2.02% | -5 bps |
| Non-performing assets | 546,694 | 503,797 | 42,897 | 357,751 | 188,943 |
| Non-performing loans held-in-portfolio | 413,437 | 458,117 | (44,680) | 311,625 | 101,812 |
| Non-performing loans held-for-sale | 83,700 | — | 83,700 | — | 83,700 |
| Other real estate owned (“OREO”) | 49,557 | 45,680 | 3,877 | 46,126 | 3,431 |
| Allowance / non-performing loans held-in-portfolio | 190% | 180% | 10% | 247% | (57)% |
| (Dollars in thousands) | Quarters ended | ||||
| BPPR | 30-Jun-26 | 31-Mar-26 | Δ vs 31-Mar-26 | 30-Jun-25 | Δ vs 30-Jun-25 |
| Provision for credit losses - loan portfolios | $61,738 | $73,298 | $(11,560) | $43,150 | $18,588 |
| Net charge-offs | 101,688 | 58,990 | 42,698 | 40,164 | 61,524 |
| Total non-performing loans held-in-portfolio | 367,824 | 420,273 | (52,449) | 257,648 | 110,176 |
| ACL - loans held-in-portfolio | 692,287 | 732,235 | (39,948) | 679,249 | 13,038 |
| NCO Ratio | 1.46% | 0.85% | 61 bps | 0.61% | 85 bps |
| Allowance / loans held-in-portfolio | 2.47% | 2.65% | -18 bps | 2.53% | -6 bps |
| Allowance / non-performing loans held-in-portfolio | 188% | 174% | 14% | 264% | (75)% |
| (Dollars in thousands) | Quarters ended | ||||
| Popular U.S. | 30-Jun-26 | 31-Mar-26 | Δ vs 31-Mar-26 | 30-Jun-25 | Δ vs 30-Jun-25 |
| Provision for credit losses (benefit) - loan portfolios | $3,416 | $2,391 | $1,025 | $6,389 | $(2,973) |
| Net charge-offs | 2,365 | 1,033 | 1,332 | 2,038 | 327 |
| Total non-performing loans held-in-portfolio | 45,613 | 37,844 | 7,769 | 53,977 | (8,364) |
| ACL - loans held-in-portfolio | 92,545 | 91,494 | 1,051 | 90,236 | 2,309 |
| NCO Ratio | 0.08% | 0.04% | 4 bps | 0.07% | 1 bps |
| Allowance / loans held-in-portfolio | 0.79% | 0.79% | 0 bps | 0.79% | 0 bps |
| Allowance / non-performing loans held-in-portfolio | 203% | 242% | (39)% | 167% | 36% |
During the second quarter of 2026, the Corporation’s overall credit quality metrics remained stable. The quarter included the resolution of a significant commercial non-performing relationship, which resulted in a $71 million charge-off and the transfer of the remaining $84 million carrying amount to loans held-for-sale. Consumer credit performance continued to improve, supported by lower losses in the auto portfolio. Commercial NPL inflows increased during the quarter, driven by borrower-specific issues that management does not view as indicative of broader credit deterioration.
Non-Performing Loans Held-in-Portfolio ("NPLs") and Net Charge Offs ("NCOs") Total NPLs decreased $45 million to $413 million during Q2 2026. Excluding consumer loans, inflows of NPLs held-in-portfolio increased $137 million in the second quarter of 2026. The ratio of NPLs to total loans held in the portfolio was 1.04% for the second quarter of 2026, compared to 1.17% for the previous quarter. NCO Ratio of 1.05% increased 44 basis points when compared to the previous quarter. Excluding the $71 million charge-off, the NCO Ratio was 0.33% for the quarter.
BPPR segment- NPLs decreased $52 million, primarily driven by a $47 million reduction in commercial NPLs. The decline reflects the resolution of a $155 million relationship, where our intent to sell resulted in a $71 million charge-off and the transfer of the remaining $84 million to loans held for sale (“LHFS”). The loan was subsequently sold on July 2, 2026. The decrease resulting from the reclassification of the loan previously mentioned was partially offset by the inflows to commercial NPLs of two unrelated commercial and industrial relationships of $129 million in the aggregate. These inflows to commercial NPLs stemmed from issues specific to the individual borrowers and are not indicative of a broader decline in portfolio credit quality or the industries in which the borrowers operate. Excluding consumer loans, BPPR segment NPL inflows increased $123 million compared to the prior quarter.
NCOs increased $43 million, primarily reflecting the previously mentioned commercial credit resolution, partially offset by a $10 million improvement in consumer NCOs, mostly due to lower losses in the auto portfolio. NCO Ratio of 1.46%, increased 61 basis points driven by the $71 million charge off during the quarter.
PB segment- NPLs increased $8 million, primarily driven by commercial NPLs. Excluding consumer loans, inflows to NPLs increased $14 million compared to the previous quarter. NCO Ratio of 0.08%, increased 4 basis points during the quarter.
Refer to table L for a breakdown of Non-Performing Assets.
Allowance for loan losses ("ACL") The ACL as of June 30, 2026 amounted to $785 million, a decrease of $39 million when compared to the first quarter of
- The decline primarily reflects the resolution of the commercial non-performing credit moved to LHFS, improving
consumer credit performance, and favorable portfolio and macroeconomic developments.
BPPR segment- The ACL decreased by $40 million compared to the previous quarter, mostly driven by a $22 million decrease in reserves for commercial loans. This decrease was primarily due to the transfer to LHFS of the $155 million NPL and related charge-off, as well as favorable changes in the credit quality of the portfolio and the macroeconomic scenario, partially offset by higher reserves associated with NPL inflows during the quarter and loan growth. Additionally, the ACL for consumer loans decreased by $12 million, primarily in the auto and credit card portfolios, reflecting improvements in credit quality.
PB segment- The ACL remained stable quarter-over-quarter at $93 million.
Provision for credit losses Provision for loan losses of $65 million for the second quarter of 2026. The decrease of $10 million compared to the prior quarter was primarily driven by a lower provision expense in the BPPR segment by $12 million, reflecting improved credit quality in the consumer portfolio, higher recovery activity, and a more favorable macroeconomic outlook supporting the mortgage portfolio. These favorable trends were partially offset by higher reserve requirements associated with commercial NPL inflows during the quarter.
Including the provision for unfunded loan commitments and the provision related to the Corporation’s investment portfolio, the provision for credit losses for the second quarter was $66 million.
| Line item | Quarters ended | Quarters ended | Quarters ended | Quarters ended | Quarters ended |
|---|---|---|---|---|---|
| (In thousands) | 30-Jun-26 | 31-Mar-26 | Δ vs 31-Mar-26 | 30-Jun-25 | Δ vs 30-June-25 |
| Cash and money market investments | $4,920,502 | $5,040,621 | $(120,119) | $6,741,417 | $(1,820,915) |
| Investment securities | 31,264,698 | 28,943,544 | 2,321,154 | 28,283,970 | 2,980,728 |
| Loans | 39,749,862 | 39,289,702 | 460,160 | 38,185,178 | 1,564,684 |
| Total assets | 78,972,300 | 76,131,018 | 2,841,282 | 76,065,090 | 2,907,210 |
| Deposits | 70,233,115 | 67,611,316 | 2,621,799 | 67,217,491 | 3,015,624 |
| Borrowings | 1,462,831 | 1,119,557 | 343,274 | 1,414,494 | 48,337 |
| Total liabilities | 72,539,295 | 69,819,932 | 2,719,363 | 70,111,072 | 2,428,223 |
| Stockholders’ equity | 6,433,005 | 6,311,086 | 121,919 | 5,954,018 | 478,987 |
Total assets- Total assets increased $2.8 billion from the first quarter of 2026, primarily driven by an increase of $2.3 billion in investment securities. Loans held-in-portfolio increased $460 million, mainly due to an increase of $300 million in the BPPR segment across most portfolios and an increase of $160 million in the PB segment, primarily in commercial loans.
Loans held-for-sale ("LHFS") also increased $83 million, mainly due to the loan reclassified as LHFS during the quarter.
Total liabilities- Total liabilities increased $2.7 billion from the first quarter of 2026, mainly reflecting a $2.6 billion increase in deposits, including growth in P.R. public deposits of $3.0 billion, coupled with a $325 million increase in short-term borrowings due to higher FHLB advances at PB. This was partially offset by a $246 million decline in other liabilities, primarily from lower unsettled U.S. Treasury purchases outstanding at period end.
Stockholders’ equity- Stockholders' equity increased $122 million when compared to the first quarter of 2026, driven by $278 million of net income and $35 million of amortization of unrealized losses on securities previously reclassified to held-to- maturity ("HTM"), net of tax, and a favorable variance in foreign currency translation adjustments of $22 million from our investment in BHD. These increases were partially offset by $125 million of common share repurchases, $49 million in common and preferred dividends declared, and a $50 million increase in unrealized losses on available-for-sale ("AFS") securities.
| (Dollars in thousands) | Quarter ended 30-Jun-26BPPR | Quarter ended 30-Jun-26% | Quarter ended 30-Jun-26PB | Quarter ended 30-Jun-26% | Quarter ended 30-Jun-26POPULAR | Quarter ended 30-Jun-26% |
|---|---|---|---|---|---|---|
| Loans held-in-portfolio: | ||||||
| Commercial multi-family | $345,959 | 1% | $2,053,465 | 17% | $2,399,424 | 6% |
| Commercial real estate non-owner occupied | 3,321,095 | 12% | 2,299,780 | 20% | 5,620,875 | 14% |
| Commercial real estate owner occupied | 1,156,681 | 4% | 2,100,021 | 18% | 3,256,702 | 8% |
| Commercial and industrial | 6,163,068 | 22% | 2,611,016 | 22% | 8,774,084 | 22% |
| Construction | 425,850 | 2% | 1,306,225 | 11% | 1,732,075 | 4% |
| Mortgage | 7,529,550 | 27% | 1,250,784 | 11% | 8,780,334 | 22% |
| Leasing | 1,968,035 | 7% | — | —% | 1,968,035 | 5% |
| Consumer: | ||||||
| Credit cards | 1,238,010 | 4% | (13) | —% | 1,237,997 | 3% |
| Home equity lines of credit | 1,852 | —% | 83,505 | 1% | 85,357 | —% |
| Personal | 1,896,019 | 7% | 56,706 | —% | 1,952,725 | 5% |
| Auto | 3,766,648 | 13% | — | —% | 3,766,648 | 10% |
| Other | 164,069 | 1% | 11,537 | —% | 175,606 | 1% |
| Total loans held-in-portfolio | $27,976,836 | 100% | $11,773,026 | 100% | $39,749,862 | 100% |
The Corporation maintained a diversified loan portfolio at June 30, 2026 with approximately 70% of loan balances in its main market of Puerto Rico and 54% of our consolidated loan portfolio consisting of real estate-related loans, including residential mortgage loans, construction loans, commercial multi-family, and commercial loans secured by commercial real estate.
| (Dollars in thousands) | Quarter ended 30-Jun-26BPPR | Quarter ended 30-Jun-26% | Quarter ended 30-Jun-26PB [2] | Quarter ended 30-Jun-26% | Quarter ended 30-Jun-26POPULAR | Quarter ended 30-Jun-26% |
|---|---|---|---|---|---|---|
| Non-public deposits: | ||||||
| Demand deposits | $13,851,038 | 24% | $1,428,006 | 12% | $15,085,454 | 21% |
| Savings, NOW and money market deposits (non- brokered) | 17,368,199 | 30% | 6,159,751 | 52% | 23,376,410 | 33% |
| Savings, NOW and money market deposits (brokered) | 79,505 | —% | — | —% | 79,505 | —% |
| Time deposits (non-brokered) | 4,666,304 | 8% | 3,469,908 | 29% | 8,113,712 | 12% |
| Time deposits (brokered CDs) | — | —% | 873,116 | 7% | 873,116 | 1% |
| Total Non-public deposits: | 35,965,046 | 61% | 11,930,781 | 100% | 47,528,197 | |
| P.R public deposits: | ||||||
| Demand Deposits [1] | 11,438,732 | 19% | — | —% | 11,438,732 | 16% |
| Savings, NOW and money market deposits (non-brokered) | 10,347,936 | 18% | — | —% | 10,347,936 | 15% |
| Time deposits (non-brokered) | 918,250 | 2% | — | —% | 918,250 | 1% |
| Total P.R. public deposits | 22,704,918 | 39% | — | —% | 22,704,918 | 32% |
| Total deposits | $58,669,964 | 100% | $11,930,781 | 100% | $70,233,115 | 100% |
| [1] Includes interest bearing demand deposits. | ||||||
| [2] PB deposits include intercompany deposits, which are eliminated at the consolidated level. |
Total deposits were $70.2 billion as of the end of Q2 2026, reflecting a diversified funding base across retail, commercial and public sector.
P.R. public deposits stood at $22.7 billion representing 32% of total deposits. We expect P.R. public deposits to be in the range of $20-22 billion for the rest of the year.
| Line item | Quarters ended | Quarters ended | Quarters ended | Quarters ended | Quarters ended |
|---|---|---|---|---|---|
| (In thousands) | 30-Jun-26 | 31-Mar-26 | Δ vs 31-Mar-26 | 30-Jun-25 | Δ vs 30-Jun-25 |
| Capital Position | |||||
| Common equity per share | $100.38 | $97.27 | $3.11 | $87.31 | $13.07 |
| Tangible common book value per common share (non-GAAP) [1] | $87.94 | $84.98 | $2.96 | $75.41 | $12.53 |
| Tangible common book value to tangible assets (non-GAAP) [1] | 7.18% | 7.29% | -11 bps | 6.81% | 37 bps |
| Return on average tangible common equity before adjusting for the impact of unrealized (gains) losses on AFS securities including those transferred to HTM (non-GAAP) [1] | 20.12% | 18.18% | 194 bps | 14.38% | 574 bps |
| ROTCE (non-GAAP) [1] | 17.02% | 15.46% | 156 bps | 13.26% | 376 bps |
| Regulatory Capital | |||||
| Common Equity Tier 1 capital | 16.08% | 15.92% | 16 bps | 15.91% | 17 bps |
| Tier 1 capital | 16.13% | 15.98% | 15 bps | 15.96% | 17 bps |
| Total capital | 17.85% | 17.71% | 14 bps | 17.70% | 15 bps |
| Tier 1 leverage | 8.57% | 8.60% | -3 bps | 8.51% | 6 bps |
| [1] Refer to Table R for the reconciliation to most comparable GAAP measures. |
The Corporation's Common Equity Tier 1 capital ratio was 16.08% at June 30, 2026, higher by 16 basis points when compared to Q1 2026, which was primarily driven by higher income. Tangible common book value per common share increased to $87.94, driven by net income partially offset by capital return activity. Common equity per share increased to $100.38.
Refer to Table A for capital ratios and Table R for a reconciliation of the non-GAAP financial measures presented above to the most comparable GAAP financial measures.
Capital Actions – During the quarter and six months ended June 30, 2026, Popular repurchased 833,369 shares of common stock for $125 million at an average price of $150.36 per share and 1,988,767 shares of common stock for $280 million at an average price of $141.04 per share, respectively. Common stock repurchases and dividends on preferred and common stock combined, represented capital returned to shareholders of $174 million during the quarter and $378 million for the six months ended June 30, 2026.
ROTCE (non-GAAP) – Return on average tangible common equity, adjusted to add-back unrealized (gains) losses on AFS securities, including those transferred to HTM (as so adjusted, "ROTCE"), improved to 17.02% in Q2 2026, up from 15.46% in Q1 2026. We believe that adding back the impact of unrealized (gains) losses on AFS securities including those transferred to HTM to the denominator provides meaningful information about the Corporation’s return on capital.
| Metric | Original FY 2026 Guidance | Updated Guidance | Commentary |
|---|---|---|---|
| Net Interest Income | 5%-7% increase for the year | 8% - 9% increase for the year | Driven by higher volume of P.R. deposits |
| Non-Interest Income | $160 million-$165 million per quarter | $165 million - $170 million per quarter | Driven by increase in credit and debit card activity |
| NCOs | 55 bps-70 bps annualized | 65 bps - 80 bps annualized | Due to YTD commercial charge-offs and NPL inflows |
| Operating Expenses | 3% increase for the year | 2% - 3% increase for the year | Guidance includes profit sharing expense |
| Effective Tax Rate | 15%-17% for the year | 14% - 15% for the year | Driven by higher exempt income |
| Loan Growth | 3%-4% for the year | Low-end of the guidance range | Driven by consumer loan activity in P.R. and C&I loan sold in Q3 2026 |
| 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 determines that these measures provide more meaningful information of the underlying performance of the 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. Below are the non-GAAP measures used in this earnings release:
- NII on a fully taxable equivalent (“FTE”) basis – Management believes that this presentation provides
meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.
NII FTE is presented with its different components in Tables D and E for the quarter ended June 30, 2026 and F for the year to date ended June 30, 2026.
- Tangible common equity – The tangible common equity ratio and tangible book value per common share are
commonly used by banks and analysts in conjunction with more traditional bank capital ratios to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase accounting method for mergers and acquisitions. Return on average tangible common equity is also a measure commonly used by banks and analysts to measure the return on that tangible common equity. We present return on average tangible common equity with and without the impact of unrealized (gains) losses on AFS securities including those transferred to HTM in the denominator because we believe that adding back the impact of unrealized (gains) losses on AFS securities including those transferred to HTM to the denominator provides meaningful information about the Corporation’s return on capital. Unless otherwise indicated, references to “ROTCE” in this press release means return on average tangible common equity as adjusted to add back unrealized (gains) losses on AFS securities, including those transferred to HTM. Neither tangible common equity nor tangible assets or related measures should be used in isolation or as a substitute for stockholders’ equity, total assets or any other measure calculated in accordance with GAAP. Refer to Table R for a reconciliation of total stockholders’ equity to tangible common equity and total assets to tangible assets.
- Adjusted Net Income – Management believes that the “Adjusted net income” provides meaningful information
about the underlying performance of the Corporation’s ongoing operations. There were no adjustments to net income for the quarter ended June 30, 2026 or March 31 2026.
| ABOUT POPULAR, INC. |
Popular, Inc. (NASDAQ: BPOP) is the leading financial institution in Puerto Rico, by both assets and deposits, and ranks among the top 50 U.S. bank holding companies by assets. Founded in 1893, Banco Popular de Puerto Rico, Popular’s principal subsidiary, provides retail, mortgage and commercial banking services in Puerto Rico and the U.S. and British Virgin Islands, as well as auto and equipment leasing and financing in Puerto Rico. Popular also offers broker-dealer and insurance services in Puerto Rico through specialized subsidiaries. In the mainland United States, Popular provides retail, mortgage and commercial banking services through its New York-chartered banking subsidiary, Popular Bank, which has branches located in New York, New Jersey and Florida.
| CONFERENCE CALL |
Popular will hold a conference call to discuss its financial results today, Wednesday, July 23, 2026 at 11:00 a.m. Eastern Time. The call will be broadcast live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.
Following the live webcast, a replay will be archived in the investor relations section of Popular’s website.
| --- | | Popular, Inc. | | Financial Supplement to Second Quarter 2026 Earnings Release | | Table A - Selected Ratios and Other Information | | Table B - Consolidated Statement of Operations | | Table C - Consolidated Statement of Financial Condition | | Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER | | Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER | | Table F - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE | | Table G - Mortgage Banking Activities and Other Service Fees | | Table H - Consolidated Loans and Deposits | | Table I - Loan Delinquency - BPPR Operations | | Table J - Loan Delinquency - Popular U.S. Operations | | Table K - Loan Delinquency - Consolidated | | Table L - Non-Performing Assets | | Table M - Activity in Non-Performing Loans | | Table N - Allowance for Credit Losses, Net Charge-offs and Related Ratios | | Table O - Allowance for Credit Losses ‘‘ACL’’ - Loan Portfolios - BPPR Operations | | Table P - Allowance for Credit Losses ‘‘ACL’’ - Loan Portfolios - Popular U.S. Operations | | Table Q - Allowance for Credit Losses ‘‘ACL’’ - Loan Portfolios - Consolidated | | Table R - Reconciliation to GAAP Financial Measures |
POPULAR, INC.
Financial Supplement to Second Quarter 2026 Earnings Release Table A - Selected Ratios and Other Information (Unaudited)
| Line item | Quarters ended | Six months ended |
|---|---|---|
| 30-Jun-25 | 30-Jun-25 | |
| Basic EPS | $3.09 | $5.64 |
| Diluted EPS | $3.09 | $5.64 |
| Average common shares outstanding | 68,050,361 | 68,661,851 |
| Average common shares outstanding - assuming dilution | 68,079,649 | 68,687,659 |
| Common shares outstanding at end of period | 67,937,468 | 67,937,468 |
| Market value per common share | $110.21 | $110.21 |
| Market capitalization - (In millions) | $7,487 | $7,487 |
| Return on average assets | 1.11% | 1.04% |
| Return on average common equity | 11.77% | 10.93% |
| Net interest margin (non-taxable equivalent basis) | 3.49% | 3.45% |
| Net interest margin (taxable equivalent basis) -non-GAAP | 3.85% | 3.80% |
| Common equity per share | $87.31 | $87.31 |
| Tangible common book value per common share (non-GAAP) [1] | $75.41 | $75.41 |
| Tangible common equity to tangible assets (non-GAAP) [1] | 6.81% | 6.81% |
| Return on average tangible common equity [1] | 13.26% | 12.32% |
| Tier 1 capital | 15.96% | 15.96% |
| Total capital | 17.70% | 17.70% |
| Tier 1 leverage | 8.51% | 8.51% |
| Common Equity Tier 1 capital | 15.91% | 15.91% |
[1]Refer to Table R for reconciliation to GAAP financial measures.
Table B - Consolidated Statement of Operations
Unaudited
| Line item | Quarters ended | Variance Quarter ended | Variance | Six months ended |
|---|---|---|---|---|
| (In thousands, except per share information) | 31-Mar-26 | 30-Jun-25 | Δ vs 30-Jun-25 | 30-Jun-25 |
| Interest income: | ||||
| Loans | $702,149 | $684,587 | $29,679 | $1,351,260 |
| Money market investments | 44,240 | 69,532 | (22,511) | 139,698 |
| Investment securities | 200,827 | 189,753 | 30,599 | 369,912 |
| Total interest income | 947,216 | 943,872 | 37,767 | 1,860,870 |
| Interest expense: | ||||
| Deposits | 259,418 | 295,058 | (23,804) | 592,921 |
| Short-term borrowings | 5,703 | 5,300 | (128) | 6,726 |
| Long-term debt | 11,915 | 11,965 | (171) | 24,077 |
| Total interest expense | 277,036 | 312,323 | (24,103) | 623,724 |
| Net interest income | 670,180 | 631,549 | 61,870 | 1,237,146 |
| Provision for credit losses | 75,886 | 48,941 | 16,932 | 113,022 |
| Net interest income after provision for credit losses | 594,294 | 582,608 | 44,938 | 1,124,124 |
| Service charges on deposit accounts | 38,766 | 38,826 | 211 | 77,880 |
| Other service fees | 102,921 | 100,522 | 8,270 | 195,030 |
| Mortgage banking activities | 4,213 | 4,872 | 1,395 | 8,561 |
| Net loss, including impairment, on debt securities | — | — | (595) | — |
| Net gain, including impairment, on equity securities | 1,029 | 1,862 | 465 | 1,448 |
| Net gain on trading account debt securities | 261 | 538 | (324) | 1,058 |
| Adjustments to indemnity reserves on loans sold | 35 | 120 | 274 | 293 |
| Other operating income | 18,401 | 21,737 | 2,372 | 36,268 |
| Total non-interest income | 165,626 | 168,477 | 12,068 | 320,538 |
| Operating expenses: | ||||
| Personnel costs | ||||
| Salaries | 134,813 | 132,752 | 1,696 | 263,702 |
| Commissions, incentives and other bonuses | 34,903 | 40,551 | (640) | 78,537 |
| Profit sharing | (1,203) | 13,000 | (3,000) | 13,000 |
| Pension, postretirement and medical insurance | 14,896 | 18,458 | 315 | 33,024 |
| Other personnel costs, including payroll taxes | 32,660 | 24,594 | 1,305 | 53,805 |
| Total personnel costs | 216,069 | 229,355 | (324) | 442,068 |
| Net occupancy expenses | 27,299 | 29,140 | (1,376) | 56,358 |
| Equipment expenses | 5,229 | 5,789 | 90 | 11,091 |
| Other taxes | 17,677 | 18,632 | (925) | 37,357 |
| Professional fees | 25,553 | 28,108 | (3,624) | 54,933 |
| Technology and software expenses | 89,139 | 84,696 | 6,275 | 168,364 |
| Processing and transactional services | ||||
| Credit and debit cards | 14,206 | 13,044 | 192 | 25,970 |
| Other processing and transactional services | 24,881 | 24,817 | (787) | 49,672 |
| Total processing and transactional services | 39,087 | 37,861 | (595) | 75,642 |
| Communications | 4,509 | 5,010 | (749) | 9,914 |
| Business promotion | ||||
| Rewards and customer loyalty programs | 15,392 | 18,047 | 1,553 | 34,412 |
| Other business promotion | 7,468 | 8,338 | (38) | 15,648 |
| Total business promotion | 22,860 | 26,385 | 1,515 | 50,060 |
| Deposit insurance | 9,917 | 9,407 | 570 | 19,442 |
| Other real estate owned (OREO) income | (3,238) | (4,618) | 1,380 | (4,124) | 886 | (7,856) | (7,454) |
| Other operating expenses | |||||||
| Operational losses | 3,118 | 3,975 | (857) | 6,185 | (3,067) | 7,093 | 12,323 |
| All other | 8,626 | 10,230 | (1,604) | 15,932 | (7,306) | 18,856 | 32,693 |
| Total other operating expenses | 11,744 | 14,205 | (2,461) | 22,117 | (10,373) | 25,949 | 45,016 |
| Amortization of intangibles | 384 | 384 | — | 385 | (1) | 768 | 982 |
| Total operating expenses | 484,130 | 467,310 | 16,820 | 492,761 | (8,631) | 951,440 | 963,773 |
| Income before income tax | 323,961 | 292,610 | 31,351 | 258,324 | 65,637 | 616,571 | 480,889 |
| Income tax expense | 45,747 | 46,936 | (1,189) | 47,884 | (2,137) | 92,683 | 92,947 |
| Net income | $278,214 | $245,674 | $32,540 | $210,440 | $67,774 | $523,888 | $387,942 |
| Net income applicable to common stock | $277,861 | $245,321 | $32,540 | $210,087 | $67,774 | $523,182 | $387,236 |
| Net income per common share - basic | $4.35 | $3.78 | $0.57 | $3.09 | $1.26 | $8.13 | $5.64 |
| Net income per common share - diluted | $4.35 | $3.78 | $0.57 | $3.09 | $1.26 | $8.13 | $5.64 |
| Dividends Declared per Common Share | $0.75 | $0.75 | $— | $0.70 | $0.05 | $1.50 | $1.40 |
Table C - Consolidated Statement of Financial Condition
Unaudited
| Line item | Variance | |
|---|---|---|
| (In thousands) | 30-Jun-25 | Δ vs 31-Mar-26 |
| Assets: | ||
| Cash and due from banks | $400,631 | $(19,909) |
| Money market investments | 6,340,786 | (100,210) |
| Trading account debt securities, at fair value | 29,643 | 721 |
| Debt securities available-for-sale, at fair value | 20,490,212 | 3,059,565 |
| Debt securities held-to-maturity, at amortized cost | 7,541,724 | (758,639) |
| Less: Allowance for credit losses | 5,999 | 330 |
| Debt securities held-to-maturity, net | 7,535,725 | (758,969) |
| Equity securities | 222,391 | 19,507 |
| Loans held-for-sale, at lower of cost or fair value | 2,898 | 82,976 |
| Loans held-in-portfolio | 38,611,834 | 452,738 |
| Less: Unearned income | 426,656 | (7,422) |
| Allowance for credit losses | 769,485 | (38,897) |
| Total loans held-in-portfolio, net | 37,415,693 | 499,057 |
| Premises and equipment, net | 649,191 | 25,712 |
| Other real estate | 46,126 | 3,877 |
| Accrued income receivable | 274,867 | (1,366) |
| Mortgage servicing rights, at fair value | 103,077 | 253 |
| Other assets | 1,745,052 | 30,452 |
| Goodwill | 802,954 | — |
| Other intangible assets | 5,844 | (384) |
| Total assets | $76,065,090 | $2,841,282 |
| Liabilities and Stockholders’ Equity: | ||
| Liabilities: | ||
| Deposits: | ||
| Non-interest bearing | $15,114,614 | $(689,495) |
| Interest bearing | 52,102,877 | 3,311,294 |
| Total deposits | 67,217,491 | 2,621,799 |
| Assets sold under agreements to repurchase | 56,043 | 42,945 |
| Other short-term borrowings | 550,000 | 325,000 |
| Notes payable | 808,451 | (24,671) |
| Other liabilities | 1,479,087 | (245,710) |
| Total liabilities | 70,111,072 | 2,719,363 |
| Stockholders’ equity: | ||
| Preferred stock | 22,143 | — |
| Common stock | 1,049 | 1 |
| Surplus | 4,919,950 | 8,455 |
| Retained earnings | 4,861,958 | 229,690 |
| Treasury stock | (2,455,425) | (125,529) |
| Accumulated other comprehensive loss, net of tax | (1,395,657) | 9,302 |
| Total stockholders’ equity | 5,954,018 | 121,919 |
| Total liabilities and stockholders’ equity | $76,065,090 | $2,841,282 |
Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) For the quarters ended June 30, 2026 and March 31, 2026 (audited)
| Average Volume | Interest | Variance Attributable to | |
|---|---|---|---|
| Variance | Variance | Volume | |
| (In millions) | (In thousands) | ||
| $245 | Money market investments | $2,781 | $2,260 |
| 1,281 | Investment securities [1] | 27,218 | 13,062 |
| (2) | Trading securities | (9) | (30) |
| 1,524 | Total money market, investment and trading securities | 29,990 | 15,292 |
| Loans: | |||
| 209 | Commercial | 8,107 | 3,485 |
| 67 | Construction | 661 | 1,335 |
| (15) | Leasing | 221 | (278) |
| 68 | Mortgage | 2,557 | 1,047 |
| 1 | Consumer | 227 | (181) |
| (25) | Auto | 405 | (578) |
| 305 | Total loans | 12,178 | 4,830 |
| $1,829 | Total earning assets | $42,168 | $20,122 |
| Interest bearing deposits: | |||
| $265 | NOW and money market | $3,078 | $1,092 |
| 184 | Savings | 926 | 160 |
| 193 | Time deposits | 1,168 | 1,172 |
| 1,140 | P.R. public deposits | 6,664 | 7,590 |
| 1,782 | Total interest bearing deposits | 11,836 | 10,014 |
| 167 | Non-interest bearing demand deposits | ||
| 1,949 | Total deposits | 11,836 | 10,014 |
| (58) | Short-term borrowings | (531) | (550) |
| (31) | Other medium and long-term debt | (121) | (441) |
| 1,693 | Total interest bearing liabilities (excluding demand deposits) | 11,184 | 9,023 |
| (31) | Other sources of funds | ||
| $1,829 | Total source of funds | $11,184 | $9,023 |
| Net interest margin/ income on a taxable equivalent basis (Non-GAAP) | $30,984 | $11,099 | |
| Net interest spread | |||
| Taxable equivalent adjustment | 7,745 | ||
| Net interest margin/ income non-taxable equivalent basis (GAAP) | $23,239 |
Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the change in each category.
[1]Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity.
Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) For the quarters ended June 30, 2026 and June 30, 2025
| Average Volume | Interest | Variance Attributable to | |
|---|---|---|---|
| Variance | Variance | Volume | |
| (In millions) | (In thousands) | ||
| $(1,156) | Money market investments | $(22,511) | $(11,711) |
| 2,282 | Investment securities [1] | 49,743 | 23,930 |
| 5 | Trading securities | 47 | 63 |
| 1,131 | Total money market, investment and trading securities | 27,279 | 12,282 |
| Loans: | |||
| 1,256 | Commercial | 21,001 | 21,081 |
| 305 | Construction | 4,923 | 6,036 |
| 7 | Leasing | 1,431 | 124 |
| 393 | Mortgage | 11,363 | 5,932 |
| 99 | Consumer | 1,273 | 3,268 |
| (70) | Auto | 195 | (1,614) |
| 1,990 | Total loans | 40,186 | 34,827 |
| $3,121 | Total earning assets | $67,465 | $47,109 |
| Interest bearing deposits: | |||
| $757 | NOW and money market | $2,949 | $4,596 |
| 212 | Savings | (1,738) | (604) |
| 375 | Time deposits | (1,621) | 3,054 |
| 1,169 | P.R. public deposits | (23,394) | 8,728 |
| 2,513 | Total interest bearing deposits | (23,804) | 15,774 |
| 443 | Non-interest bearing demand deposits | ||
| 2,956 | Total deposits | (23,804) | 15,774 |
| 69 | Short-term borrowings | (128) | 703 |
| (91) | Other medium and long-term debt | (171) | (1,424) |
| 2,491 | Total interest bearing liabilities (excluding demand deposits) | (24,103) | 15,053 |
| 187 | Other sources of funds | ||
| $3,121 | Total source of funds | $(24,103) | $15,053 |
| Net interest margin/ income on a taxable equivalent basis (Non-GAAP) | $91,568 | $32,056 | |
| Net interest spread | |||
| Taxable equivalent adjustment | 29,698 | ||
| Net interest margin/ income non-taxable equivalent basis (GAAP) | $61,870 |
Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the change in each category.
[1]Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity.
Table F - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE
| Average Volume | Interest | Variance Attributable to | |
|---|---|---|---|
| Variance | Variance | Volume | |
| (In millions) | (In thousands) | ||
| $(1,341) | Money market investments | $(48,437) | $(26,862) |
| 1,841 | Investment securities [1] | 88,205 | 37,852 |
| 4 | Trading securities | 69 | 105 |
| 504 | Total money market, investment and trading securities | 39,837 | 11,095 |
| Loans: | |||
| 1,243 | Commercial | 41,420 | 41,441 |
| 346 | Construction | 12,801 | 13,765 |
| 26 | Leasing | 3,446 | 961 |
| 444 | Mortgage | 24,126 | 13,335 |
| 103 | Consumer | 3,497 | 6,883 |
| (49) | Auto | 1,887 | (2,267) |
| 2,113 | Total loans | 87,177 | 74,118 |
| $2,617 | Total earning assets | $127,014 | $85,213 |
| Interest bearing deposits: | |||
| $665 | NOW and money market | $3,107 | $9,034 |
| 169 | Savings | (5,305) | (1,338) |
| 346 | Time deposits | (4,059) | 5,486 |
| 625 | P.R public deposits | (55,992) | 9,609 |
| 1,805 | Total interest bearing deposits | (62,249) | 22,791 |
| 427 | Non-interest bearing demand deposits | ||
| 2,232 | Total deposits | (62,249) | 22,791 |
| 271 | Short-term borrowings | 4,149 | 5,265 |
| (90) | Other medium and long-term debt | (368) | (2,842) |
| 1,986 | Total interest bearing liabilities (excluding demand deposits) | (58,468) | 25,214 |
| 204 | Other sources of funds | ||
| $2,617 | Total source of funds | $(58,468) | $25,214 |
| Net interest margin/ income on a taxable equivalent basis (Non-GAAP) | $185,482 | $59,999 | |
| Net interest spread | |||
| Taxable equivalent adjustment | 59,029 | ||
| Net interest margin/ income non-taxable equivalent basis (GAAP) | $126,453 |
Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the change in each category.
[1]Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity.
Table G - Mortgage Banking Activities and Other Service Fees Mortgage Banking Activities
| Line item | Quarters ended | Variance | Six month ended |
|---|---|---|---|
| (In thousands) | 30-Jun-25 | Δ vs 30-Jun-25 | Δ vs 30-Jun-25 |
| Mortgage servicing fees, net of fair value adjustments: | |||
| Mortgage servicing fees | $6,912 | $(496) | $(1,181) |
| Mortgage servicing rights fair value adjustments | (1,954) | 1,722 | 2,653 |
| Total mortgage servicing fees, net of fair value adjustments | 4,958 | 1,226 | 1,472 |
| Net (loss) gain on sale of loans, including valuation on loans held-for-sale | (37) | 196 | 321 |
| Trading account (loss) profit: | |||
| Unrealized (losses) gains on outstanding derivative positions | (8) | (44) | 118 |
| Realized (losses) gains on closed derivative positions | (10) | 23 | 4 |
| Total trading account (loss) profit | (18) | (21) | 121 |
| Losses on repurchased loans, including interest advances | (31) | (6) | 5 |
| Total mortgage banking activities | $4,872 | $1,395 | $1,919 |
Other Service Fees
| Line item | Quarters ended | Variance | Six month ended |
|---|---|---|---|
| (In thousands) | 30-Jun-25 | Δ vs 30-Jun-25 | Δ vs 30-Jun-25 |
| Other service fees: | |||
| Debit card fees | $27,918 | $3,620 | $7,196 |
| Insurance fees | 12,695 | (109) | 1,107 |
| Credit card fees | 32,502 | 2,281 | 4,152 |
| Sale and administration of investment products | 9,058 | 940 | 2,154 |
| Trust fees | 6,626 | 1,125 | 2,164 |
| Other fees | 11,723 | 413 | (90) |
| Total other service fees | $100,522 | $8,270 | $16,683 |
Table H - Consolidated Loans and Deposits Loans - Ending Balances
| Line item | Quarters ended | Variance |
|---|---|---|
| (Dollars in thousands) | 30-Jun-25 | % of Change |
| Loans held-in-portfolio: | ||
| Commercial | ||
| Commercial multi-family | $2,520,789 | (4.81%) |
| Commercial real estate non-owner occupied | 5,521,374 | 1.80% |
| Commercial real estate owner occupied | 3,003,855 | 8.42% |
| Commercial and industrial | 8,043,752 | 9.08% |
| Total Commercial | 19,089,770 | 5.04% |
| Construction | 1,468,201 | 17.97% |
| Mortgage | 8,444,427 | 3.98% |
| Leasing | 1,983,068 | (0.76%) |
| Consumer | ||
| Credit cards | 1,215,293 | 1.87% |
| Home equity lines of credit | 77,479 | 10.17% |
| Personal | 1,876,463 | 4.06% |
| Auto | 3,861,702 | (2.46%) |
| Other | 168,775 | 4.05% |
| Total Consumer | 7,199,712 | 0.26% |
| Total loans held-in-portfolio | $38,185,178 | 4.10% |
| Loans held-for-sale: | ||
| Commercial | $— | —% |
| Mortgage | $2,898 | 68.36% |
| Total loans held-for-sale | $2,898 | 2956.56% |
| Total loans | $38,188,076 | 4.32% |
Deposits - Ending Balances
| Line item | Quarters ended | Variance |
|---|---|---|
| (In thousands) | 30-Jun-25 [2] | % of Change |
| Deposits excluding P.R. public deposits: | ||
| Demand deposits | $15,114,614 | (0.19%) |
| Savings, NOW and money market deposits (non-brokered) | 22,292,892 | 4.86% |
| Savings, NOW and money market deposits (brokered) | 91,220 | (12.84%) |
| Time deposits (non-brokered) | 8,071,836 | 0.52% |
| Time deposits (brokered CDs) | 728,969 | 19.77% |
| Sub-total deposits excluding P.R. public deposits | 46,299,531 | 2.65% |
| P.R. public deposits: | ||
| Demand deposits [1] | 12,376,316 | (7.58%) |
| Savings, NOW and money market deposits (non-brokered) | 7,743,663 | 33.63% |
| Time deposits (non-brokered) | 797,981 | 15.07% |
| Sub-total P.R. public deposits | 20,917,960 | 8.54% |
| Total deposits | $67,217,491 | 4.49% |
[1] Includes interest bearing demand deposits.
[2] Savings, NOW and money market deposits include reciprocal deposits of $841 million as of June 30, 2026 (March 31, 2026 - $821 million; June 30, 2025 - $738 million) that were categorized as brokered deposits during 2025 and re-characterized as non-brokered in 2026. Similarly, Time deposits include reciprocal deposits of $75 million as of June 30, 2026 (March 31, 2026 - $87 million; June 30, 2025 - $133 million) that were categorized as brokered deposits during 2025 and re-characterized as non-brokered in 2026. The presentation for June 30, 2025 has been adjusted to conform to the presentation for June 30, 2026.
Table I - Loan Delinquency - BPPR Operations
30-Jun-26 · BPPR
| Line item | Past due 90 days or more | |
|---|---|---|
| (In thousands) | Loans HIP | Accruingloans |
| Commercial multi-family | $345,959 | $— |
| Commercial real estate: | ||
| Non-owner occupied | 3,321,095 | — |
| Owner occupied | 1,156,681 | — |
| Commercial and industrial | 6,163,068 | 4,558 |
| Construction | 425,850 | — |
| Mortgage | 7,529,550 | 191,499 |
| Leasing | 1,968,035 | — |
| Consumer: | ||
| Credit cards | 1,238,010 | 23,367 |
| Home equity lines of credit | 1,852 | — |
| Personal | 1,896,019 | — |
| Auto | 3,766,648 | — |
| Other | 164,069 | 325 |
| Total | $27,976,836 | $219,749 |
31-Mar-26 · BPPR
| Line item | Past due 90 days or more | |
|---|---|---|
| (In thousands) | Loans HIP | Accruingloans |
| Commercial multi-family | $343,091 | $— |
| Commercial real estate: | ||
| Non-owner occupied | 3,392,191 | — |
| Owner occupied | 1,148,211 | — |
| Commercial and industrial | 5,940,265 | 4,212 |
| Construction | 412,779 | — |
| Mortgage | 7,435,745 | 195,954 |
| Leasing | 1,986,165 | — |
| Consumer: | ||
| Credit cards | 1,214,192 | 25,395 |
| Home equity lines of credit | 1,898 | — |
| Personal | 1,851,064 | 221 |
| Auto | 3,783,904 | — |
| Other | 167,408 | 436 |
| Total | $27,676,913 | $226,218 |
Variance
| Line item | Past due 90 days or more | |
|---|---|---|
| (In thousands) | Loans HIP | Accruingloans |
| Commercial multi-family | $2,868 | $— |
| Commercial real estate: | ||
| Non-owner occupied | (71,096) | — |
| Owner occupied | 8,470 | — |
| Commercial and industrial | 222,803 | 346 |
| Construction | 13,071 | — |
| Mortgage | 93,805 | (4,455) |
| Leasing | (18,130) | — |
| Consumer: | ||
| Credit cards | 23,818 | (2,028) |
| Home equity lines of credit | (46) | — |
| Personal | 44,955 | (221) |
| Auto | (17,256) | — |
| Other | (3,339) | (111) |
| Total | $299,923 | $(6,469) |
Table J - Loan Delinquency - Popular U.S. Operations
30-Jun-26 · Popular U.S.
| Line item | Past due 90 days ormore | |
|---|---|---|
| (In thousands) | Loans HIP | Accruingloans |
| Commercial multi-family | $2,053,465 | $— |
| Commercial real estate: | — | |
| Non-owner occupied | 2,299,780 | — |
| Owner occupied | 2,100,021 | — |
| Commercial and industrial | 2,611,016 | 174 |
| Construction | 1,306,225 | — |
| Mortgage | 1,250,784 | — |
| Consumer: | — | |
| Credit cards | (13) | — |
| Home equity lines of credit | 83,505 | — |
| Personal | 56,706 | — |
| Other | 11,537 | — |
| Total | $11,773,026 | $174 |
31-Mar-26 · Popular U.S.
| Line item | Past due 90 days ormore | |
|---|---|---|
| (In thousands) | Loans HIP | Accruingloans |
| Commercial multi-family | $2,084,204 | $— |
| Commercial real estate: | — | |
| Non-owner occupied | 2,151,260 | — |
| Owner occupied | 2,064,145 | — |
| Commercial and industrial | 2,625,294 | 169 |
| Construction | 1,261,414 | — |
| Mortgage | 1,276,616 | — |
| Consumer: | — | |
| Credit cards | 7 | — |
| Home equity lines of credit | 77,866 | — |
| Personal | 62,217 | — |
| Other | 9,766 | — |
| Total | $11,612,789 | $169 |
Variance
| Line item | Past due 90 days ormore | |
|---|---|---|
| (In thousands) | Loans HIP | Accruingloans |
| Commercial multi-family | $(30,739) | $— |
| Commercial real estate: | ||
| Non-owner occupied | 148,520 | — |
| Owner occupied | 35,876 | — |
| Commercial and industrial | (14,278) | 5 |
| Construction | 44,811 | — |
| Mortgage | (25,832) | — |
| Consumer: | — | — |
| Credit cards | (20) | — |
| Home equity lines of credit | 5,639 | — |
| Personal | (5,511) | — |
| Other | 1,771 | — |
| Total | $160,237 | $5 |
Table K - Loan Delinquency - Consolidated
30-Jun-26 · Popular, Inc.
| Line item | Past due 90 days or more | |
|---|---|---|
| (In thousands) | Loans HIP | Accruingloans |
| Commercial multi-family | $2,399,424 | $— |
| Commercial real estate: | ||
| Non-owner occupied | 5,620,875 | — |
| Owner occupied | 3,256,702 | — |
| Commercial and industrial | 8,774,084 | 4,732 |
| Construction | 1,732,075 | — |
| Mortgage | 8,780,334 | 191,499 |
| Leasing | 1,968,035 | — |
| Consumer: | ||
| Credit cards | 1,237,997 | 23,367 |
| Home equity lines of credit | 85,357 | — |
| Personal | 1,952,725 | — |
| Auto | 3,766,648 | — |
| Other | 175,606 | 325 |
| Total | $39,749,862 | $219,923 |
31-Mar-26 · Popular, Inc.
| Line item | Past due 90 days or more | |
|---|---|---|
| (In thousands) | Loans HIP | Accruingloans |
| Commercial multi-family | $2,427,295 | $— |
| Commercial real estate: | ||
| Non-owner occupied | 5,543,451 | — |
| Owner occupied | 3,212,356 | — |
| Commercial and industrial | 8,565,559 | 4,381 |
| Construction | 1,674,193 | — |
| Mortgage | 8,712,361 | 195,954 |
| Leasing | 1,986,165 | — |
| Consumer: | ||
| Credit cards | 1,214,199 | 25,395 |
| Home equity lines of credit | 79,764 | — |
| Personal | 1,913,281 | 221 |
| Auto | 3,783,904 | — |
| Other | 177,174 | 436 |
| Total | $39,289,702 | $226,387 |
Variance
| Line item | Past due 90 days or more | |
|---|---|---|
| (In thousands) | Loans HIP | Accruingloans |
| Commercial multi-family | $(27,871) | $— |
| Commercial real estate: | ||
| Non-owner occupied | 77,424 | — |
| Owner occupied | 44,346 | — |
| Commercial and industrial | 208,525 | 351 |
| Construction | 57,882 | — |
| Mortgage | 67,973 | (4,455) |
| Leasing | (18,130) | — |
| Consumer: | ||
| Credit cards | 23,798 | (2,028) |
| Home equity lines of credit | 5,593 | — |
| Personal | 39,444 | (221) |
| Auto | (17,256) | — |
| Other | (1,568) | (111) |
| Total | $460,160 | $(6,464) |
Table L - Non-Performing Assets
| Line item | Variance | Variance | ||||||
|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 30-Jun-26 | As a % ofloans HIPbycategory | 31-Mar-26 | As a % ofloans HIPbycategory | 30-Jun-25 | As a % ofloans HIPbycategory | Q2 2026 vs. Q1 2026 | Q2 2026 vs. Q2 2025 |
| Non-accrual loans: | ||||||||
| Commercial | ||||||||
| Commercial multi-family | $8,931 | 0.4% | $10,962 | 0.5% | $10,925 | 0.4% | $(2,031) | $(1,994) |
| Commercial real estate non-owner occupied | 32,966 | 0.6 | 33,444 | 0.6 | 13,977 | 0.3 | (478) | 18,989 |
| Commercial real estate owner occupied | 24,239 | 0.7 | 14,192 | 0.4 | 27,551 | 0.9 | 10,047 | (3,312) |
| Commercial and industrial | 144,952 | 1.7 | 192,517 | 2.2 | 11,424 | 0.1 | (47,565) | 133,528 |
| Total Commercial | 211,088 | 1.1 | 251,115 | 1.3 | 63,877 | 0.3 | (40,027) | 147,211 |
| Mortgage | 139,473 | 1.6 | 139,067 | 1.6 | 175,516 | 2.1 | 406 | (36,043) |
| Leasing | 7,182 | 0.4 | 8,892 | 0.4 | 7,976 | 0.4 | (1,710) | (794) |
| Consumer | ||||||||
| Home equity lines of credit | 3,320 | 3.9 | 2,766 | 3.5 | 3,120 | 4.0 | 554 | 200 |
| Personal | 17,356 | 0.9 | 16,660 | 0.9 | 18,593 | 1.0 | 696 | (1,237) |
| Auto | 31,474 | 0.8 | 35,390 | 0.9 | 40,595 | 1.1 | (3,916) | (9,121) |
| Other | 3,544 | 2.0 | 4,227 | 2.4 | 1,948 | 1.2 | (683) | 1,596 |
| Total Consumer | 55,694 | 0.8 | 59,043 | 0.8 | 64,256 | 0.9 | (3,349) | (8,562) |
| Total non-performing loans held-in-portfolio | 413,437 | 1.0% | 458,117 | 1.2% | 311,625 | 0.8% | (44,680) | 101,812 |
| Non-performing loans held-for-sale | 83,700 | — | — | 83,700 | 83,700 | |||
| Other real estate owned (“OREO”) | 49,557 | 45,680 | 46,126 | 3,877 | 3,431 | |||
| Total non-performing assets | 546,694 | 503,797 | 357,751 | 42,897 | 188,943 | |||
| Accruing loans past due 90 days or more [1] | 219,923 | 226,387 | 206,394 | (6,464) | 13,529 | |||
| Ratios: | ||||||||
| Non-performing assets to total assets | 0.69% | 0.66% | 0.47% | |||||
| Non-performing loans held-in-portfolio to loans held-in-portfolio | 1.04 | 1.17 | 0.82 | |||||
| Allowance for credit losses to loans held-in-portfolio | 1.97 | 2.10 | 2.02 | |||||
| Allowance for credit losses to non-performing loans, excluding loans held-for-sale | 189.83 | 179.81 | 246.93 |
[1] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These balances include $40 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 2026 (March 2026 - $43 million ; June 2025 - $52 million). Furthermore, the Corporation has approximately $25 million reverse mortgage loans which are guaranteed by FHA, as of June 2026 . Due to the guaranteed nature of the loans, it is the Corporation’s policy to exclude these balances from non-performing assets (March 2026 - $26 million ; June 2025 - $29 million ).
Table M - Activity in Non-Performing Loans
Commercial loans held-in-portfolio:
| Line item | Quarter ended | Quarter ended |
|---|---|---|
| 30-Jun-26 | 31-Mar-26 | |
| (In thousands) | Popular, Inc. | Popular, Inc. |
| Beginning balance NPLs | $251,115 | $266,439 |
| Plus: | ||
| New non-performing loans | 152,477 | 8,209 |
| Advances on existing non-performing loans | 62 | 170 |
| Less: | ||
| Non-performing loans transferred to OREO | (301) | (650) |
| Non-performing loans charged-off | (74,606) | (11,664) |
| Loans returned to accrual status / loan collections | (33,959) | (11,389) |
| Loans transferred to held-for-sale | (83,700) | — |
| Ending balance NPLs | $211,088 | $251,115 |
Mortgage loans held-in-portfolio:
| Line item | Quarter ended | Quarter ended |
|---|---|---|
| 30-Jun-26 | 31-Mar-26 | |
| (In thousands) | Popular, Inc. | Popular, Inc. |
| Beginning balance NPLs | $139,067 | $145,795 |
| Plus: | ||
| New non-performing loans | 33,915 | 40,985 |
| Advances on existing non-performing loans | 4 | 11 |
| Less: | ||
| Non-performing loans transferred to OREO | (1,985) | (2,461) |
| Non-performing loans charged-off | 110 | (561) |
| Loans returned to accrual status / loan collections | (31,638) | (44,702) |
| Ending balance NPLs | $139,473 | $139,067 |
Total non-performing loans held-in-portfolio (excluding consumer):
| Line item | Quarter ended | Quarter ended |
|---|---|---|
| 30-Jun-26 | 31-Mar-26 | |
| (In thousands) | Popular, Inc. | Popular, Inc. |
| Beginning balance NPLs | $390,182 | $412,234 |
| Plus: | ||
| New non-performing loans | 186,392 | 49,194 |
| Advances on existing non-performing loans | 66 | 181 |
| Less: | ||
| Non-performing loans transferred to OREO | (2,286) | (3,111) |
| Non-performing loans charged-off | (74,496) | (12,225) |
| Loans returned to accrual status / loan collections | (65,597) | (56,091) |
| Loans transferred to held-for-sale | (83,700) | — |
| Ending balance NPLs | $350,561 | $390,182 |
Table N - Allowance for Credit Losses, Net Charge-offs and Related Ratios
| Line item | Quarters ended | Quarters ended | Quarters ended |
|---|---|---|---|
| (In thousands) | 30-Jun-26 | 31-Mar-26 | 30-Jun-25 |
| Balance at beginning of period - loans held-in-portfolio | $823,729 | $808,056 | $762,148 |
| Provision for credit losses | 65,154 | 75,689 | 49,539 |
| Initial allowance for credit losses - PCD Loans | 2 | 7 | — |
| 888,885 | 883,752 | 811,687 | |
| Net loans charge-off (recovered)- BPPR | |||
| Commercial: | |||
| Commercial multi-family | — | (2) | (6) |
| Commercial real estate non-owner occupied | (4,102) | 11,115 | (451) |
| Commercial real estate owner occupied | (2,063) | (355) | (1,005) |
| Commercial and industrial | 73,406 | 731 | 1,436 |
| Total Commercial | 67,241 | 11,489 | (26) |
| Construction | — | (11) | — |
| Mortgage | (4,922) | (2,316) | (2,429) |
| Leasing | 1,840 | 2,569 | 2,736 |
| Consumer: | |||
| Credit cards | 14,300 | 16,053 | 17,311 |
| Home equity lines of credit | (44) | (91) | (307) |
| Personal | 16,143 | 17,949 | 15,776 |
| Auto | 5,808 | 12,826 | 6,557 |
| Other Consumer | 1,322 | 522 | 546 |
| Total Consumer | 37,529 | 47,259 | 39,883 |
| Total net charged-off BPPR | $101,688 | $58,990 | $40,164 |
| Net loans charge-off (recovered) - Popular U.S. | |||
| Commercial: | |||
| Commercial multi-family | 1,312 | — | 563 |
| Commercial real estate owner occupied | (139) | (115) | (26) |
| Commercial and industrial | 87 | (15) | (205) |
| Total Commercial | 1,260 | (130) | 332 |
| Construction | — | — | — |
| Mortgage | (31) | (28) | (32) |
| Consumer: | |||
| Credit cards | 1 | — | — |
| Home equity lines of credit | (106) | (234) | (579) |
| Personal | 1,233 | 1,422 | 2,305 |
| Other Consumer | 8 | 3 | 12 |
| Total Consumer | 1,136 | 1,191 | 1,738 |
| Total net charged-off Popular U.S. | $2,365 | $1,033 | $2,038 |
| Total loans net charged-off - Popular, Inc. | $104,053 | $60,023 | $42,202 |
| Balance at end of period - loans held-in-portfolio | $784,832 | $823,729 | $769,485 |
| Balance at beginning of period - unfunded commitments | $14,547 | $14,438 | $14,169 |
| Provision for credit losses (benefit) | 389 | 109 | (1,116) |
| Balance at end of period - unfunded commitments [1] | $14,936 | $14,547 | $13,053 |
| POPULAR, INC. | |||
| Annualized net charge-offs (recoveries) to average loans held-in-portfolio | 1.05% | 0.61% | 0.45% |
| Provision for credit losses (benefit) - loan portfolios to net charge-offs | 62.62% | 126.10% | 117.39% |
| BPPR | |||
| Annualized net charge-offs (recoveries) to average loans held-in-portfolio | 1.46% | 0.85% | 0.61% |
| Provision for credit losses (benefit) - loan portfolios to net charge-offs | 60.71% | 124.25% | 107.43% |
| Popular U.S. | |||
| Annualized net charge-offs (recoveries) to average loans held-in-portfolio | 0.08% | 0.04% | 0.07% |
| Provision for credit losses (benefit) - loan portfolios to net charge-offs | 144.44% | 231.46% | 313.49% |
[1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.
Table O - Allowance for Credit Losses “ACL”- Loan Portfolios - BPPR Operations
30-Jun-26 · BPPR
| (Dollars in thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio |
|---|---|---|---|
| Commercial: | |||
| Commercial multi-family | $4,069 | $345,959 | 1.18% |
| Commercial real estate - non-owner occupied | 40,179 | 3,321,095 | 1.21% |
| Commercial real estate - owner occupied | 35,549 | 1,156,681 | 3.07% |
| Commercial and industrial | 166,787 | 6,163,068 | 2.71% |
| Total commercial | $246,584 | $10,986,803 | 2.24% |
| Construction | 4,803 | 425,850 | 1.13% |
| Mortgage | 70,498 | 7,529,550 | 0.94% |
| Leasing | 17,627 | 1,968,035 | 0.90% |
| Consumer: | |||
| Credit cards | 84,817 | 1,238,010 | 6.85% |
| Home equity lines of credit | 52 | 1,852 | 2.81% |
| Personal | 96,014 | 1,896,019 | 5.06% |
| Auto | 164,543 | 3,766,648 | 4.37% |
| Other | 7,349 | 164,069 | 4.48% |
| Total consumer | $352,775 | $7,066,598 | 4.99% |
| Total | $692,287 | $27,976,836 | 2.47% |
31-Mar-26 · BPPR
| (Dollars in thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio |
|---|---|---|---|
| Commercial: | |||
| Commercial multi-family | $4,704 | $343,091 | 1.37% |
| Commercial real estate - non-owner occupied | 48,881 | 3,392,191 | 1.44% |
| Commercial real estate - owner occupied | 35,403 | 1,148,211 | 3.08% |
| Commercial and industrial | 179,980 | 5,940,265 | 3.03% |
| Total commercial | $268,968 | $10,823,758 | 2.48% |
| Construction | 5,767 | 412,779 | 1.40% |
| Mortgage | 73,761 | 7,435,745 | 0.99% |
| Leasing | 18,588 | 1,986,165 | 0.94% |
| Consumer: | |||
| Credit cards | 89,376 | 1,214,192 | 7.36% |
| Home equity lines of credit | 67 | 1,898 | 3.53% |
| Personal | 97,457 | 1,851,064 | 5.26% |
| Auto | 170,544 | 3,783,904 | 4.51% |
| Other | 7,707 | 167,408 | 4.60% |
| Total consumer | $365,151 | $7,018,466 | 5.20% |
| Total | $732,235 | $27,676,913 | 2.65% |
Variance
| (Dollars in thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio |
|---|---|---|---|
| Commercial: | |||
| Commercial multi-family | $(635) | $2,868 | (0.19%) |
| Commercial real estate - non-owner occupied | (8,702) | (71,096) | (0.23%) |
| Commercial real estate - owner occupied | 146 | 8,470 | (0.01%) |
| Commercial and industrial | (13,193) | 222,803 | (0.32)% |
| Total commercial | $(22,384) | $163,045 | (0.24)% |
| Construction | (964) | 13,071 | (0.27%) |
| Mortgage | (3,263) | 93,805 | (0.05)% |
| Leasing | (961) | (18,130) | (0.04)% |
| Consumer: | |||
| Credit cards | (4,559) | 23,818 | (0.51)% |
| Home equity lines of credit | (15) | (46) | (0.72%) |
| Personal | (1,443) | 44,955 | (0.20%) |
| Auto | (6,001) | (17,256) | (0.14%) |
| Other | (358) | (3,339) | (0.12%) |
| Total consumer | $(12,376) | $48,132 | (0.21%) |
| Total | $(39,948) | $299,923 | (0.18)% |
Table P - Allowance for Credit Losses “ACL”- Loan Portfolios - POPULAR U.S. Operations
30-Jun-26 · Popular U.S.
| (Dollars in thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio |
|---|---|---|---|
| Commercial: | |||
| Commercial multi-family | $14,850 | $2,053,465 | 0.72% |
| Commercial real estate - non-owner occupied | 15,631 | 2,299,780 | 0.68% |
| Commercial real estate - owner occupied | 17,090 | 2,100,021 | 0.81% |
| Commercial and industrial | 18,609 | 2,611,016 | 0.71% |
| Total commercial | $66,180 | $9,064,282 | 0.73% |
| Construction | 9,557 | 1,306,225 | 0.73% |
| Mortgage | 9,024 | 1,250,784 | 0.72% |
| Consumer: | |||
| Credit cards | — | (13) | -% |
| Home equity lines of credit | 1,371 | 83,505 | 1.64% |
| Personal | 6,408 | 56,706 | 11.30% |
| Other | 5 | 11,537 | 0.04% |
| Total consumer | $7,784 | $151,735 | 5.13% |
| Total | $92,545 | $11,773,026 | 0.79% |
31-Mar-26 · Popular U.S.
| (Dollars in thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio |
|---|---|---|---|
| Commercial: | |||
| Commercial multi-family | $15,365 | $2,084,204 | 0.74% |
| Commercial real estate - non-owner occupied | 15,265 | 2,151,260 | 0.71% |
| Commercial real estate - owner occupied | 15,713 | 2,064,145 | 0.76% |
| Commercial and industrial | 17,496 | 2,625,294 | 0.67% |
| Total commercial | $63,839 | $8,924,903 | 0.72% |
| Construction | 9,393 | 1,261,414 | 0.74% |
| Mortgage | 9,863 | 1,276,616 | 0.77% |
| Consumer: | |||
| Credit cards | — | 7 | —% |
| Home equity lines of credit | 1,111 | 77,866 | 1.43% |
| Personal | 7,282 | 62,217 | 11.70% |
| Other | 6 | 9,766 | 0.06% |
| Total consumer | $8,399 | $149,856 | 5.60% |
| Total | $91,494 | $11,612,789 | 0.79% |
Variance
| (Dollars in thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio |
|---|---|---|---|
| Commercial: | |||
| Commercial multi-family | $(515) | $(30,739) | (0.01%) |
| Commercial real estate - non-owner occupied | 366 | 148,520 | (0.03%) |
| Commercial real estate - owner occupied | 1,377 | 35,876 | 0.05% |
| Commercial and industrial | 1,113 | (14,278) | 0.05% |
| Total commercial | $2,341 | $139,379 | 0.01% |
| Construction | 164 | 44,811 | (0.01%) |
| Mortgage | (839) | (25,832) | (0.05%) |
| Consumer: | |||
| Credit cards | — | (20) | —% |
| Home equity lines of credit | 260 | 5,639 | 0.22% |
| Personal | (874) | (5,511) | (0.40%) |
| Other | (1) | 1,771 | (0.02%) |
| Total consumer | $(615) | $1,879 | (0.47)% |
| Total | $1,051 | $160,237 | —% |
Table Q - Allowance for Credit Losses “ACL”- Loan Portfolios - Consolidated
30-Jun-26 · Pop Inc.
| (Dollars in thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio |
|---|---|---|---|
| Commercial: | |||
| Commercial multi-family | $18,919 | $2,399,424 | 0.79% |
| Commercial real estate - non-owner occupied | 55,810 | 5,620,875 | 0.99% |
| Commercial real estate - owner occupied | 52,639 | 3,256,702 | 1.62% |
| Commercial and industrial | 185,396 | 8,774,084 | 2.11% |
| Total commercial | $312,764 | $20,051,085 | 1.56% |
| Construction | 14,360 | 1,732,075 | 0.83% |
| Mortgage | 79,522 | 8,780,334 | 0.91% |
| Leasing | 17,627 | 1,968,035 | 0.90% |
| Consumer: | |||
| Credit cards | 84,817 | 1,237,997 | 6.85% |
| Home equity lines of credit | 1,423 | 85,357 | 1.67% |
| Personal | 102,422 | 1,952,725 | 5.25% |
| Auto | 164,543 | 3,766,648 | 4.37% |
| Other | 7,354 | 175,606 | 4.19% |
| Total consumer | $360,559 | $7,218,333 | 5.00% |
| Total | $784,832 | $39,749,862 | 1.97% |
31-Mar-26 · Pop Inc.
| (Dollars in thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio |
|---|---|---|---|
| Commercial: | |||
| Commercial multi-family | $20,069 | $2,427,295 | 0.83% |
| Commercial real estate - non-owner occupied | 64,146 | 5,543,451 | 1.16% |
| Commercial real estate - owner occupied | 51,116 | 3,212,356 | 1.59% |
| Commercial and industrial | 197,476 | 8,565,559 | 2.31% |
| Total commercial | $332,807 | $19,748,661 | 1.69% |
| Construction | 15,160 | 1,674,193 | 0.91% |
| Mortgage | 83,624 | 8,712,361 | 0.96% |
| Leasing | 18,588 | 1,986,165 | 0.94% |
| Consumer: | |||
| Credit cards | 89,376 | 1,214,199 | 7.36% |
| Home equity lines of credit | 1,178 | 79,764 | 1.48% |
| Personal | 104,739 | 1,913,281 | 5.47% |
| Auto | 170,544 | 3,783,904 | 4.51% |
| Other | 7,713 | 177,174 | 4.35% |
| Total consumer | $373,550 | $7,168,322 | 5.21% |
| Total | $823,729 | $39,289,702 | 2.10% |
Variance
| (Dollars in thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio |
|---|---|---|---|
| Commercial: | |||
| Commercial multi-family | $(1,150) | $(27,871) | (0.04%) |
| Commercial real estate - non-owner occupied | (8,336) | 77,424 | (0.16%) |
| Commercial real estate - owner occupied | 1,523 | 44,346 | 0.03% |
| Commercial and industrial | (12,080) | 208,525 | (0.19)% |
| Total commercial | $(20,043) | $302,424 | (0.13)% |
| Construction | (800) | 57,882 | (0.08%) |
| Mortgage | (4,102) | 67,973 | (0.05)% |
| Leasing | (961) | (18,130) | (0.04)% |
| Consumer: | |||
| Credit cards | (4,559) | 23,798 | (0.51)% |
| Home equity lines of credit | 245 | 5,593 | 0.19% |
| Personal | (2,317) | 39,444 | (0.23%) |
| Auto | (6,001) | (17,256) | (0.14%) |
| Other | (359) | (1,568) | (0.17%) |
| Total consumer | $(12,991) | $50,011 | (0.22%) |
| Total | $(38,897) | $460,160 | (0.12)% |
Table R - Reconciliation to GAAP Financial Measures
| Line item | Quarters ended | Quarters ended | Quarters ended |
|---|---|---|---|
| (In thousands, except share or per share information) | 30-Jun-26 | 31-Mar-26 | 30-Jun-25 |
| Total stockholders’ equity | $6,433,005 | $6,311,086 | $5,954,018 |
| Less: Preferred stock | (22,143) | (22,143) | (22,143) |
| Less: Goodwill | (789,954) | (789,954) | (802,954) |
| Less: Other intangibles | (4,308) | (4,692) | (5,844) |
| Total tangible common equity | $5,616,600 | $5,494,297 | $5,123,077 |
| Total assets | $78,972,300 | $76,131,018 | $76,065,090 |
| Less: Goodwill | (789,954) | (789,954) | (802,954) |
| Less: Other intangibles | (4,308) | (4,692) | (5,844) |
| Total tangible assets | $78,178,038 | $75,336,372 | $75,256,292 |
| Tangible common equity to tangible assets | 7.18% | 7.29% | 6.81% |
| Common shares outstanding at end of period | 63,866,681 | 64,654,788 | 67,937,468 |
| Tangible book value per common share | $87.94 | $84.98 | $75.41 |
| Line item | Quarterly average | Quarterly average | Quarterly average |
|---|---|---|---|
| 30-Jun-26 | 31-Mar-26 | 30-Jun-25 | |
| Total stockholders’ equity | $6,354,694 | $6,289,337 | $6,755,783 |
| Less: Preferred Stock | (22,143) | (22,143) | (22,143) |
| Less: Goodwill | (789,954) | (789,954) | (802,953) |
| Less: Other intangibles | (4,559) | (4,944) | (6,096) |
| Total tangible common equity before adjusting for the impact of unrealized (gains) losses on AFS securities including those transferred to HTM | $5,538,038 | $5,472,296 | $5,924,591 |
| Return on average tangible common equity before adjusting for the impact of unrealized (gains) losses on AFS securities including those transferred to HTM | 20.12% | 18.18% | 14.38% |
| Add: Average unrealized (gains) losses on AFS securities | 824,631 | 743,809 | 94,006 |
| Add: Average unrealized (gains) losses on AFS securities transferred to HTM | 184,136 | 221,114 | 334,183 |
| Total tangible common equity after adding back of impact of unrealized (gains) losses on AFS securities, including those transferred to HTM | $6,546,805 | $6,437,219 | $6,352,780 |
| ROTCE | 17.02% | 15.46% | 13.26% |
[1] Average balances exclude certain unrealized gains or losses on debt securities available-for-sale.
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