# Popular (BPOP) 10-Q SEC filing - Q2 FY2026 - Filed: Aug 7, 2026, 4:14 PM EDT - Fiscal quarter: Q2 FY2026 - Calendar quarter: Q2 2026 - Accession: 0000763901-26-000019 - OpenCapital page: https://www.opencapital.sh/filings/0000763901-26-000019 - Markdown URL: https://www.opencapital.sh/filings/0000763901-26-000019.md - Official SEC filing index: https://www.sec.gov/Archives/edgar/data/763901/000076390126000019/0000763901-26-000019-index.htm ## Filing documents - [10-Q (bpop-20260630.htm)](https://www.sec.gov/Archives/edgar/data/763901/000076390126000019/bpop-20260630.htm) - [EX-10.1 (exh101awardagreement7212.htm)](https://www.sec.gov/Archives/edgar/data/763901/000076390126000019/exh101awardagreement7212.htm) - [EX-10.2 (exh102ferrerservicesagre.htm)](https://www.sec.gov/Archives/edgar/data/763901/000076390126000019/exh102ferrerservicesagre.htm) - [EX-31.1 (exhibit311.htm)](https://www.sec.gov/Archives/edgar/data/763901/000076390126000019/exhibit311.htm) - [EX-31.2 (exhibit312.htm)](https://www.sec.gov/Archives/edgar/data/763901/000076390126000019/exhibit312.htm) - [EX-32.1 (exhibit321-digital.htm)](https://www.sec.gov/Archives/edgar/data/763901/000076390126000019/exhibit321-digital.htm) - [EX-32.2 (exhibit322-digital.htm)](https://www.sec.gov/Archives/edgar/data/763901/000076390126000019/exhibit322-digital.htm) --- ## 10-Q SEC source: [bpop-20260630.htm](https://www.sec.gov/Archives/edgar/data/763901/000076390126000019/bpop-20260630.htm) 1 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q [X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2026 or [ ] Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number:001-34084 POPULAR, INC. (Exact name of registrant as specified in its charter) | | | | --- | --- | | Puerto Rico | 66-0667416 | | (State or other jurisdiction of Incorporation or organization) | (IRS Employer Identification Number) | | Popular Center Building | | | 209 Muñoz Rivera Avenue | | | Hato Rey, Puerto Rico | 00918 | | (Address of principal executive offices) | (Zip code) | (787) 765-9800 (Registrant's telephone number, including area code) NOT APPLICABLE (Former name, former address and former fiscal year, if changed since last report) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock ($0.01 par value) BPOP The NASDAQ Stock Market 6.125% Cumulative Monthly Income Trust Preferred Securities BPOPM The NASDAQ Stock Market Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [X]  Yes [ ] No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). [X] Yes [ ] No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act: Large accelerated filer [X] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [ ] Emerging growth company [ ] If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ] Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). [ ] Yes                                   [X] No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: Common Stock, $0.01 par value, 63,778,501 shares outstanding as of August 5, 2026. 2 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) POPULAR INC INDEX [Part I - Financial Information](#i255eb36da5c74ca8bb95d2e920a4f2a5_13) Page [Item 1. Financial Statements](#i255eb36da5c74ca8bb95d2e920a4f2a5_16) [Unaudited Consolidated Statements of Financial Condition at June 30,2026 and December 31, 2025](#i255eb36da5c74ca8bb95d2e920a4f2a5_19) [5](#i255eb36da5c74ca8bb95d2e920a4f2a5_19) [Unaudited Consolidated Statements of Operations for the quarters and six months ended June 30, 2026 and 2025](#i255eb36da5c74ca8bb95d2e920a4f2a5_22) [6](#i255eb36da5c74ca8bb95d2e920a4f2a5_22) [Unaudited Consolidated Statements of Comprehensive Income for the quarters and six months ended June 30, 2026 and 2025](#i255eb36da5c74ca8bb95d2e920a4f2a5_25) [7](#i255eb36da5c74ca8bb95d2e920a4f2a5_25) [Unaudited Consolidated Statements of Changes in Stockholders’ Equity for the quarters and six months ended June 30, 2026](#i255eb36da5c74ca8bb95d2e920a4f2a5_28) [and 2025](#i255eb36da5c74ca8bb95d2e920a4f2a5_28) [8](#i255eb36da5c74ca8bb95d2e920a4f2a5_28) [Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025](#i255eb36da5c74ca8bb95d2e920a4f2a5_34) [10](#i255eb36da5c74ca8bb95d2e920a4f2a5_34) [Notes to Unaudited Consolidated Financial Statements](#i255eb36da5c74ca8bb95d2e920a4f2a5_37) [12](#i255eb36da5c74ca8bb95d2e920a4f2a5_37) [Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations](#i255eb36da5c74ca8bb95d2e920a4f2a5_151) [92](#i255eb36da5c74ca8bb95d2e920a4f2a5_151) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](#i255eb36da5c74ca8bb95d2e920a4f2a5_181) [124](#i255eb36da5c74ca8bb95d2e920a4f2a5_181) [Item 4. Controls and Procedures](#i255eb36da5c74ca8bb95d2e920a4f2a5_184) [124](#i255eb36da5c74ca8bb95d2e920a4f2a5_184) [Part II - Other Information](#i255eb36da5c74ca8bb95d2e920a4f2a5_187) [Item 1. Legal Proceedings](#i255eb36da5c74ca8bb95d2e920a4f2a5_190) [125](#i255eb36da5c74ca8bb95d2e920a4f2a5_190) [Item 1A. Risk Factors](#i255eb36da5c74ca8bb95d2e920a4f2a5_193) [125](#i255eb36da5c74ca8bb95d2e920a4f2a5_193) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](#i255eb36da5c74ca8bb95d2e920a4f2a5_196) [125](#i255eb36da5c74ca8bb95d2e920a4f2a5_196) [Item 3. Defaults Upon Senior Securities](#i255eb36da5c74ca8bb95d2e920a4f2a5_199) [125](#i255eb36da5c74ca8bb95d2e920a4f2a5_199) [Item 4. Mine Safety Disclosures](#i255eb36da5c74ca8bb95d2e920a4f2a5_202) [125](#i255eb36da5c74ca8bb95d2e920a4f2a5_202) [Item 5. Other Information](#i255eb36da5c74ca8bb95d2e920a4f2a5_205) [125](#i255eb36da5c74ca8bb95d2e920a4f2a5_205) [Item 6. Exhibits](#i255eb36da5c74ca8bb95d2e920a4f2a5_208) [126](#i255eb36da5c74ca8bb95d2e920a4f2a5_208) [Signatures](#i255eb36da5c74ca8bb95d2e920a4f2a5_211) [127](#i255eb36da5c74ca8bb95d2e920a4f2a5_211) 3 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Forward-Looking Statements This Form 10-Q contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including, without limitation, statements about Popular, Inc.’s (the “Corporation,” “Popular,” “we,” “us,” “our”) business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes (including on our cost of deposits), capital markets conditions, capital adequacy and liquidity, and the effect of legal and regulatory proceedings and new accounting standards on the Corporation’s financial condition and results of operations. All statements contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions are generally intended to identify forward-looking statements. Various factors, some of which are beyond Popular’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Factors that might cause such a difference include, but are not limited to: - the rate of growth or decline in the economy and employment levels, as well as general business and economic conditions in the geographic areas we serve and, in particular, in the Commonwealth of Puerto Rico (the “Commonwealth” or “Puerto Rico”), where a significant portion of our business is concentrated; - adverse economic conditions, including high levels of inflation, and geopolitical conditions, including wars and conflicts, that adversely affect housing prices, the job market, consumer confidence and spending habits which may affect, in turn, among other things, our level of non-performing assets, charge-offs and provision expense; - changes in interest rates and market liquidity, which may reduce interest margins, impact funding sources, reduce loan originations, affect our ability to originate and distribute financial products in the primary and secondary markets and impact the value of our investment portfolio and our ability to return capital to our shareholders; - the impact of bank failures or adverse developments at other banks and related negative media coverage of the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks; - the impact of the current fiscal and economic challenges of Puerto Rico and the measures taken and to be taken by the Puerto Rico Government and the Federally-appointed oversight board on the economy, our customers and our business; - the amount of Puerto Rico public sector deposits held at the Corporation, whose future balances are uncertain and difficult to predict and may be impacted by factors such as the amount of Federal funds received by the P.R. Government and the rate of expenditure of such funds, as well as the financial condition, liquidity and cash management practices of the Puerto Rico Government and its instrumentalities; - unforeseen or catastrophic events, including extreme weather events such as hurricanes and other natural disasters, man-made disasters, acts of violence, war or conflicts, or pandemics, epidemics and other health-related crises, or the fear of any such event occurring, any of which could cause adverse consequences for our business, including, but not limited to, disruptions in our operations; - our ability to achieve the expected benefits from our transformation initiatives, including our ability to achieve projected earnings, efficiencies and return on tangible common equity and accurately anticipate costs and expenses associated therewith; - our ability to execute capital actions, including with respect to share repurchases and dividends; - the fiscal and monetary policies of the federal government and its agencies; - changes in federal bank regulatory and supervisory policies, including required levels of capital, liquidity, resolution-related requirements and the impact of other proposed capital standards on our capital ratios; - the impact of any future U.S. government shutdown; - changes in and uncertainty regarding federal funding, tax and trade policies, and federal rulemaking, supervision, examination and enforcement priorities; - adjustments to or additional Federal Deposit Insurance Corporation (“FDIC”) assessments; 4 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) - regulatory approvals that may be necessary to undertake certain actions or consummate strategic transactions, such as acquisitions and dispositions, or for the Corporation’s subsidiaries to declare dividends, and the timing of such approvals; - the relative strength or weakness of the consumer and commercial credit sectors and of the real estate markets in Puerto Rico and the other markets in which our borrowers are located; - a deterioration in the credit quality of our clients, customers and counterparties; - the performance of the stock and bond markets; - competition in the financial services industry; - possible legislative, tax or regulatory changes; - a failure in or breach of our operational or security systems or infrastructure or those of Evertec, Inc., our provider of core financial transaction processing and information technology services, or of third parties providing services to us, including as a result of cyberattacks, e-fraud, denial-of-services and computer intrusion, that might result in, among other things, loss or breach of customer data, disruption of services, reputational damage or additional costs to Popular; - changes in market rates and prices which may adversely impact the value of financial assets and liabilities; - potential judgments, claims, damages, penalties, fines, enforcement actions and reputational damage resulting from pending or future litigation and regulatory or government investigations or actions; - changes in accounting standards, rules and interpretations; - our ability to grow our core businesses; - decisions to downsize, sell or close branches or business units or otherwise change our business mix; and - management’s ability to identify and manage these and other risks. Moreover, the outcome of any legal and regulatory proceedings, as discussed in “Part II, Item 1. Legal Proceedings,” is inherently uncertain and depends on judicial interpretations of law and the findings of regulators, judges and/or juries. Investors should refer to the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”), as well as “Part II, Item 1A” of our Quarterly Report on this Form 10-Q for a discussion of such factors and certain risks and uncertainties to which the Corporation is subject. All forward-looking statements included in this Form 10-Q are based upon information available to Popular as of the date of this Form 10-Q and other than as required by law, including the requirements of applicable securities laws, we assume no obligation to update or revise any such forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements. 5 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) ## Item 1. Financial Statements **POPULAR, INC.** ### CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION _(UNAUDITED)_ | (In thousands, except share information) | June 30,2026 | December 31,2025 | | --- | --- | --- | | Assets: | | | | Cash and due from banks | $365,013 | $402,755 | | Money market investments: | | | | Time deposits with other banks | 4,555,489 | 4,626,506 | | Total money market investments | 4,555,489 | 4,626,506 | | Trading account debt securities, at fair value | 31,170 | 36,569 | | Debt securities available-for-sale, at fair value: | | | | Pledged securities with creditors’ right to repledge | 79,454 | 30,687 | | Other debt securities available-for-sale | 24,713,380 | 20,544,285 | | Debt securities available-for-sale | 24,792,834 | 20,574,972 | | Debt securities held-to-maturity, at amortized cost: | | | | Pledged securities with creditors’ right to repledge | - | 9,298 | | Other debt securities held-to-maturity | 6,204,020 | 7,318,231 | | Debt securities held-to-maturity (fair value 2026 - $6,176,976; 2025 - $7,363,587) | 6,204,020 | 7,327,529 | | Less -Allowance for credit losses | 6,230 | 5,812 | | Debt securities held-to-maturity, net | 6,197,790 | 7,321,717 | | Equity securities (realizable value 2026 - $236,711; 2025 - $230,388) | 236,674 | 229,848 | | Loans held-for-sale, at fair value | 88,579 | 9,998 | | Loans held-in-portfolio | 40,156,582 | 39,749,142 | | Less - Unearned income | 406,720 | 421,624 | | Allowance for credit losses | 784,832 | 808,056 | | Total loans held-in-portfolio, net | 38,965,030 | 38,519,462 | | Premises and equipment, net | 731,945 | 685,820 | | Other real estate | 49,557 | 42,433 | | Accrued income receivable | 307,251 | 300,824 | | Mortgage servicing assets, at fair value | 94,485 | 96,356 | | Other assets | 1,762,221 | 1,705,977 | | Goodwill | 789,954 | 789,954 | | Other intangible assets | 4,308 | 5,076 | | Total assets | $78,972,300 | $75,348,267 | | Liabilities and Stockholders’ Equity | | | | Liabilities: | | | | Deposits: | | | | Non-interest bearing | $15,096,293 | $15,304,209 | | Interest bearing | 55,136,822 | 50,885,884 | | Total deposits | 70,233,115 | 66,190,093 | | Assets sold under agreements to repurchase | 77,521 | 39,001 | | Other short-term borrowings | 675,000 | 650,000 | | Notes payable | 710,310 | 759,577 | | Other liabilities | 843,349 | 1,460,517 | | Total liabilities | 72,539,295 | 69,099,188 | | Commitments and contingencies (Refer to Note 16) | | | | Stockholders’ equity: | | | | Preferred stock, 30,000,000 shares authorized; 885,726 shares issued and outstanding (2025 - 885,726) | 22,143 | 22,143 | | Common stock, $0.01 par value; 170,000,000 shares authorized; 104,950,834 shares issued (2025 - 104,921,229) and 63,866,681 shares outstanding (2025 - 65,719,385) | 1,050 | 1,049 | | Surplus | 4,937,091 | 4,924,296 | | Retained earnings | 5,632,866 | 5,206,497 | | Treasury stock - at cost, 41,084,153 shares (2025 -39,201,844) | (3,000,759) | (2,722,819) | | Accumulated other comprehensive loss, net of tax | (1,159,386) | (1,182,087) | | Total stockholders’ equity | 6,433,005 | 6,249,079 | | Total liabilities and stockholders’ equity | $78,972,300 | $75,348,267 | The accompanying notes are an integral part of these Consolidated Financial Statements. 6 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **POPULAR, INC.** ### CONSOLIDATED STATEMENTS OF OPERATIONS _(UNAUDITED)_ | (In thousands, except per share information) | Quarters ended June 30, 2026 | Quarters ended June 30, 2025 | Six months ended June 30, 2026 | Six months ended June 30, 2025 | | --- | --- | --- | --- | --- | | Interest income: | | | | | | Loans | $714,266 | $684,587 | $1,416,415 | $1,351,260 | | Money market investments | 47,021 | 69,532 | 91,261 | 139,698 | | Investment securities | 220,352 | 189,753 | 421,179 | 369,912 | | Total interest income | 981,639 | 943,872 | 1,928,855 | 1,860,870 | | Interest expense: | | | | | | Deposits | 271,254 | 295,058 | 530,672 | 592,921 | | Short-term borrowings | 5,172 | 5,300 | 10,875 | 6,726 | | Long-term debt | 11,794 | 11,965 | 23,709 | 24,077 | | Total interest expense | 288,220 | 312,323 | 565,256 | 623,724 | | Net interest income | 693,419 | 631,549 | 1,363,599 | 1,237,146 | | Provision for credit losses | 65,873 | 48,941 | 141,759 | 113,022 | | Net interest income after provision for credit losses | 627,546 | 582,608 | 1,221,840 | 1,124,124 | | Non-interest income: | | | | | | Service charges on deposit accounts | 39,037 | 38,826 | 77,803 | 77,880 | | Other service fees | 108,792 | 100,522 | 211,713 | 195,030 | | Mortgage banking activities | 6,267 | 4,872 | 10,480 | 8,561 | | Net loss, including impairment on debt securities | (595) | - | (595) | - | | Net gain, including impairment on equity securities | 2,327 | 1,862 | 3,356 | 1,448 | | Net gain on trading account debt securities | 214 | 538 | 475 | 1,058 | | Adjustments to indemnity reserves on loans sold | 394 | 120 | 429 | 293 | | Other operating income | 24,109 | 21,737 | 42,510 | 36,268 | | Total non-interest income | 180,545 | 168,477 | 346,171 | 320,538 | | Operating expenses: | | | | | | Personnel costs | 229,031 | 229,355 | 445,100 | 442,068 | | Net occupancy expenses | 27,764 | 29,140 | 55,063 | 56,358 | | Equipment expenses | 5,879 | 5,789 | 11,108 | 11,091 | | Other taxes | 17,707 | 18,632 | 35,384 | 37,357 | | Professional fees | 24,484 | 28,108 | 50,037 | 54,933 | | Technology and software expenses | 90,971 | 84,696 | 180,110 | 168,364 | | Processing and transactional services | 37,266 | 37,861 | 76,353 | 75,642 | | Communications | 4,261 | 5,010 | 8,770 | 9,914 | | Business promotion | 27,900 | 26,385 | 50,760 | 50,060 | | Deposit insurance | 9,977 | 9,407 | 19,894 | 19,442 | | Other real estate owned (OREO) income | (3,238) | (4,124) | (7,856) | (7,454) | | Other operating expenses | 11,744 | 22,117 | 25,949 | 45,016 | | Amortization of intangibles | 384 | 385 | 768 | 982 | | Total operating expenses | 484,130 | 492,761 | 951,440 | 963,773 | | Income before income tax | 323,961 | 258,324 | 616,571 | 480,889 | | Income tax expense | 45,747 | 47,884 | 92,683 | 92,947 | | Net Income | $278,214 | $210,440 | $523,888 | $387,942 | | Net Income Applicable to Common Stock | $277,861 | $210,087 | $523,182 | $387,236 | | Net Income per Common Share - Basic | $4.35 | $3.09 | $8.13 | $5.64 | | Net Income per Common Share - Diluted | $4.35 | $3.09 | $8.13 | $5.64 | ` The accompanying notes are an integral part of these Consolidated Financial Statements. 7 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **POPULAR, INC.** ### CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME _(UNAUDITED)_ | (In thousands) | Quarters ended June 30, 2026 | Quarters ended June 30, 2025 | Six months ended, June 30, 2026 | Six months ended, June 30, 2025 | | --- | --- | --- | --- | --- | | Net income | $278,214 | $210,440 | $523,888 | $387,942 | | Other comprehensive income before tax: | | | | | | Foreign currency translation adjustment | 22,428 | 7,499 | 22,172 | 854 | | Amortization of net losses of pension and postretirement benefit plans | 2,258 | 2,272 | 4,516 | 4,545 | | Unrealized holding (losses) gains on debt securities arising during the period | (60,919) | 58,972 | (94,015) | 224,957 | | Amortization of unrealized losses of debt securities transfer from available-for- sale to held-to-maturity | 43,886 | 46,242 | 90,762 | 91,552 | | Other comprehensive income before tax | 7,653 | 114,985 | 23,435 | 321,908 | | Income tax benefit (expense) | 1,649 | (20,655) | (734) | (56,325) | | Total other comprehensive income, net of tax | 9,302 | 94,330 | 22,701 | 265,583 | | Comprehensive income, net of tax | $287,516 | $304,770 | $546,589 | $653,525 | Tax effect allocated to each component of other comprehensive income: | (In thousands) | Quarters ended June 30, 2026 | Quarters ended June 30, 2025 | Six months ended, June 30, 2026 | Six months ended, June 30, 2025 | | --- | --- | --- | --- | --- | | Amortization of net losses of pension and postretirement benefit plans | $(847) | $(852) | $(1,694) | $(1,704) | | Unrealized benefit (expense) due to holding gains or losses on debt securities arising during the period | 11,272 | (10,555) | 19,111 | (36,311) | | Amortization of unrealized losses of debt securities transfer from available-for- sale to held-to-maturity | (8,776) | (9,248) | (18,151) | (18,310) | | Income tax benefit (expense) | $1,649 | $(20,655) | $(734) | $(56,325) | The accompanying notes are an integral part of the Consolidated Financial Statements. 8 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **POPULAR, INC.** ### CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY _(UNAUDITED)_ | (In thousands) | Common stock | Preferredstock | Surplus | Retainedearnings | Treasurystock | Accumulatedothercomprehensiveloss | Total | | --- | --- | --- | --- | --- | --- | --- | --- | | Balance at March 31,2025 | $1,049 | $22,143 | $4,912,886 | $4,699,697 | $(2,346,093) | $(1,489,987) | $5,799,695 | | Net income | - | - | - | 210,440 | - | - | 210,440 | | Issuances of common stock | - | - | 1,760 | - | - | - | 1,760 | | Dividends declared: | | | | | | | | | Common stock[1] | - | - | - | (47,826) | - | - | (47,826) | | Preferred stock | - | - | - | (353) | - | - | (353) | | Common stock purchases[2] | - | - | - | - | (117,075) | - | (117,075) | | Stock based compensation | - | - | 5,304 | - | 7,743 | - | 13,047 | | Other comprehensive income, net of tax | - | - | - | - | - | 94,330 | 94,330 | | Balance at June 30, 2025 | $1,049 | $22,143 | $4,919,950 | $4,861,958 | $(2,455,425) | $(1,395,657) | $5,954,018 | | Balance at March 31,2026 | $1,049 | $22,143 | $4,928,636 | $5,403,176 | $(2,875,230) | $(1,168,688) | 6,311,086 | | Net income | - | - | - | 278,214 | - | - | 278,214 | | Issuances of common stock | 1 | - | 1,802 | - | - | - | 1,803 | | Dividends declared: | | | | | | | | | Common stock[1] | - | - | - | (48,148) | - | - | (48,148) | | Preferred stock | - | - | - | (353) | - | - | (353) | | Common stock purchases[3] | - | - | - | - | (129,864) | - | (129,864) | | Stock based compensation | - | - | 6,653 | - | 4,335 | - | 10,988 | | Other comprehensive income, net of tax | - | - | - | - | - | 9,302 | 9,302 | | Other adjustments | - | - | - | (23) | - | - | (23) | | Balance at June 30, 2026 | $1,050 | $22,143 | $4,937,091 | $5,632,866 | $(3,000,759) | $(1,159,386) | $6,433,005 | [1]Dividends declared per common share during the quarter ended June 30, 2026 - $0.75 (2025 - $0.70). [2]Includes common stock repurchases of $112.0 million as part of the 2024 common stock repurchase program. [3]Includes common stock repurchases of $125.3 million as part of the 2025 common stock repurchase program. 9 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **POPULAR, INC.** ### CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY _(UNAUDITED)_ | (In thousands) | Commonstock | Preferredstock | Surplus | Retainedearnings | Treasurystock | Accumulatedothercomprehensiveloss | Total | | --- | --- | --- | --- | --- | --- | --- | --- | | Balance at December 31, 2024 | $1,048 | 22,143 | 4,908,693 | 4,570,957 | (2,228,535) | (1,661,240) | $5,613,066 | | Net income | - | - | - | 387,942 | - | - | 387,942 | | Issuances of common stock | 1 | - | 3,529 | - | - | - | 3,530 | | Dividends declared: | | | | | | | | | Common stock[1] | - | - | - | (96,235) | - | - | (96,235) | | Preferred stock | - | - | - | (706) | - | - | (706) | | Common stock purchases[2] | - | - | - | - | (243,055) | - | (243,055) | | Stock based compensation | - | - | 7,728 | - | 16,165 | - | 23,893 | | Other comprehensive income, net of tax | - | - | - | - | - | 265,583 | 265,583 | | Balance at June 30, 2025 | $1,049 | $22,143 | $4,919,950 | $4,861,958 | $(2,455,425) | $(1,395,657) | $5,954,018 | | Balance at December 31, 2025 | $1,049 | $22,143 | $4,924,296 | $5,206,497 | $(2,722,819) | $(1,182,087) | $6,249,079 | | Net income | - | - | - | 523,888 | - | - | 523,888 | | Issuances of common stock | 1 | - | 3,626 | - | - | - | 3,627 | | Dividends declared: | | | | | | | | | Common stock[1] | - | - | - | (96,813) | - | - | (96,813) | | Preferred stock | - | - | - | (706) | - | - | (706) | | Common stock purchases[3] | - | - | - | - | (290,092) | - | (290,092) | | Stock based compensation | - | - | 9,169 | - | 12,152 | - | 21,321 | | Other comprehensive income, net of tax | - | - | - | - | - | 22,701 | 22,701 | | Balance at June 30, 2026 | $1,050 | $22,143 | $4,937,091 | $5,632,866 | $(3,000,759) | $(1,159,386) | $6,433,005 | [1]Dividends declared per common share during the six months ended June 30, 2026 - $1.50 (2025 - $1.40). [2]Includes common stock repurchases of $234.3 million as part of the 2024 common stock repurchase program. [3]Includes common stock repurchases of $280.5 million as part of the 2025 common stock repurchase program. | Disclosure of changes in number of shares: | For the six months ended / June 30,2026 | For the six months ended / June 30,2025 | | --- | --- | --- | | Preferred Stock: | | | | Balance at beginning and end of period | 885,726 | 885,726 | | Common Stock – Issued: | | | | Balance at beginning of period | 104,921,229 | 104,849,460 | | Issuances of common stock | 29,605 | 39,720 | | Balance at end of period | 104,950,834 | 104,889,180 | | Treasury stock | (41,084,153) | (36,951,712) | | Common Stock - Outstanding | 63,866,681 | 67,937,468 | The accompanying notes are an integral part of these Consolidated Financial Statements. 10 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **POPULAR, INC.** ### CONSOLIDATED STATEMENTS OF CASH FLOWS _(UNAUDITED)_ | (In thousands) | Six months ended June 30, 2026 | Six months ended June 30, 2025 | | --- | --- | --- | | Cash flows from operating activities: | | | | Net income | $523,888 | $387,942 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | Provision for credit losses | 141,759 | 113,022 | | Amortization of intangibles | 768 | 982 | | Depreciation and amortization of premises and equipment | 27,946 | 25,319 | | Net accretion of discounts and amortization of premiums and deferred fees | (129,129) | (136,208) | | Interest capitalized on loans subject to the temporary payment moratorium or loss mitigation alternatives | (2,746) | (2,822) | | Share-based compensation | 22,803 | 21,930 | | Net loss, including impairment on debt securities | 595 | - | | Fair value adjustments on mortgage servicing rights | 2,871 | 5,523 | | Adjustments to indemnity reserves on loans sold | (429) | (293) | | Earnings from investments under the equity method, net of dividends or distributions | (10,099) | 152 | | Deferred income tax expense | 17,643 | 20,832 | | Gain on: | | | | Disposition of premises and equipment and other productive assets | (171) | (91) | | Sale of loans, including valuation adjustments on loans held-for-sale and mortgage banking activities | (477) | (156) | | Sale of equity method investment | - | (1,226) | | Sale of foreclosed assets, including write-downs | (6,210) | (5,076) | | Acquisitions of loans held-for-sale | (6,603) | (2,332) | | Proceeds from sale of loans held-for-sale | 23,081 | 15,584 | | Net originations on loans held-for-sale | (23,540) | (12,137) | | Net decrease (increase) in: | | | | Trading debt securities | 26,802 | 10,040 | | Equity securities | (5,696) | (1,411) | | Accrued income receivable | (6,496) | (11,419) | | Other assets | (5,018) | (19,371) | | Net increase (decrease) in: | | | | Interest payable | 4,240 | 2,584 | | Pension and other postretirement benefits obligation | 589 | 2,191 | | Other liabilities | (57,608) | 1,434 | | Total adjustments | 14,875 | 27,051 | | Net cash provided by operating activities | 538,763 | 414,993 | | Cash flows from investing activities: | | | | Net decrease in money market investments | 70,764 | 40,765 | | Purchases of investment securities: | | | | Available-for-sale | (22,651,691) | (18,905,199) | | Equity | (29,545) | (25,811) | | Proceeds from calls, paydowns, maturities and redemptions of investment securities: | | | | Available-for-sale | 17,883,623 | 17,145,332 | | Held-to-maturity | 1,209,735 | 303,212 | | Proceeds from sale of investment securities: | | | | Equity | 28,415 | 14,497 | | Net disbursements on loans | (585,608) | (912,037) | | Proceeds from sale of loans | 184,640 | 40,983 | 11 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) | | | | | --- | --- | --- | | Acquisition of loan portfolios | (294,609) | (319,297) | | Return of capital from equity method investments | 1 | - | | Net proceeds from sale of equity method investment | - | 1,226 | | Payments to acquire equity method investments | (1,379) | - | | Acquisition of premises and equipment and other productive assets | (93,787) | (96,200) | | Proceeds from sale of: | | | | Premises and equipment and other productive assets | 756 | 344 | | Foreclosed assets | 35,517 | 47,590 | | Net cash used in investing activities | (4,243,168) | (2,664,595) | | Cash flows from financing activities: | | | | Net increase in: | | | | Deposits | 4,043,188 | 2,334,656 | | Assets sold under agreements to repurchase | 38,520 | 1,210 | | Other short-term borrowings | 25,000 | 325,000 | | Payments of notes payable | (50,000) | (88,522) | | Principal payments of finance leases | (2,800) | (1,829) | | Proceeds from issuances of common stock | 3,627 | 3,530 | | Dividends paid | (98,967) | (98,661) | | Net payments for repurchase of common stock | (283,100) | (236,203) | | Payments related to tax withholding for share-based compensation | (9,058) | (7,983) | | Net cash provided by financing activities | 3,666,410 | 2,231,198 | | Net decrease in cash and due from banks, and restricted cash | (37,995) | (18,404) | | Cash and due from banks, and restricted cash at beginning of period | 412,989 | 429,406 | | Cash and due from banks, and restricted cash at the end of the period | $374,994 | $411,002 | The accompanying notes are an integral part of these Consolidated Financial Statements. 12 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Notes to Consolidated Financial Statements (Unaudited) | Line item | | Page | | --- | --- | --- | | Note 1 | Nature of operations | 13 | | Note 2 | Basis of presentation | 13 | | Note 3 | New accounting pronouncements | 14 | | Note 4 | Restrictions on cash and due from banks and certain securities | 17 | | Note 5 | Debt securities available-for-sale | 17 | | Note 6 | Debt securities held-to-maturity | 19 | | Note 7 | Loans | 21 | | Note 8 | Allowance for credit losses – loans held-in-portfolio | 27 | | Note 9 | Other real estate owned | 63 | | Note 10 | Other assets | 64 | | Note 11 | Deposits | 65 | | Note 12 | Borrowings | 66 | | Note 13 | Other liabilities | 67 | | Note 14 | Other comprehensive income | 68 | | Note 15 | Guarantees | 69 | | Note 16 | Commitments and contingencies | 69 | | Note 17 | Non-consolidated variable interest entities | 72 | | Note 18 | Related party transactions | 73 | | Note 19 | Fair value measurement | 73 | | Note 20 | Fair value of financial instruments | 78 | | Note 21 | Net income per common share | 81 | | Note 22 | Revenue from contracts with customers | 81 | | Note 23 | Stock-based compensation | 82 | | Note 24 | Income taxes | 83 | | Note 25 | Supplemental disclosure on the consolidated statements of cash flows | 85 | | Note 26 | Segment reporting | 86 | | Note 27 | Subsequent events | 91 | 13 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) ### Note 1 - Nature of operations Popular, Inc. (the “Corporation" or “Popular") is a diversified, publicly owned financial holding company subject to the supervision and regulation of the Board of Governors of the Federal Reserve System. The Corporation has operations in Puerto Rico, the mainland United States (“U.S.") and the U.S. and British Virgin Islands. In Puerto Rico, the Corporation provides retail, mortgage and commercial banking services, as well as auto and equipment leasing and financing through its principal banking subsidiary, Banco Popular de Puerto Rico (“BPPR"), as well as broker-dealer and insurance services through specialized subsidiaries. In the U.S. mainland, the Corporation provides retail, mortgage and commercial banking services, as well as equipment leasing and financing, through its New York-chartered banking subsidiary, Popular Bank (“PB" or “Popular U.S."), which has branches located in New York, New Jersey, and Florida. ### Note 2 - Basis of presentation Basis of Presentation The (unaudited) interim Consolidated Financial Statements are, in the opinion of management, a fair statement of the results for the periods reported. The consolidated statement of financial condition presented as of December 31, 2025 was derived from audited Consolidated Financial Statements of the Corporation for the year ended December 31, 2025. Certain information and notes to the financial statements disclosures which would normally be included in financial statements prepared in accordance with Accounting Principles Generally Accepted in the United States of America (U.S. GAAP), have been condensed or omitted from the unaudited financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, these financial statements should be read in conjunction with the audited Consolidated Financial Statements of the Corporation for the year ended December 31, 2025, included in the 2025 Form 10-K. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 14 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) ### Note 3 - New accounting pronouncements Recently Adopted Accounting Standards Updates Standard Description Date of adoption Effect on the financial statements FASB ASU 2025-05, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses for Accounts Receivables and Contract Assets The Financial Accounting Standards Board (the "FASB") issued Accounting Standard Update ("ASU") 2025-05 in July 2025, which permits entities to elect a practical expedient when accounting for current accounts receivable and current contract assets arising from transactions accounted for under Accounting Standard Update ("ASC") Topic 606, Revenue from Contracts with Customers. This practical expedient establishes that, in developing reasonable and supportable forecasts as part of estimating expected credit losses, entities assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. January 1, 2026 The Corporation does not currently engage in transactions within the scope of this guidance. Accordingly, adoption did not have a material impact on the consolidated financial statements. Should the Corporation enter into such transactions in the future, the impact would be evaluated at that time. FASB ASU 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20) - Induced Conversions of Convertible Debt Instruments The FASB issued ASU 2024-04 in November 2024, which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. Also it makes additional clarifications to assist stakeholders in applying the guidance. The ASU clarifies that the incorporation, elimination, or modification of a volume- weighted average price ("VWAP") formula does not automatically cause a settlement to be accounted for as an extinguishment and that the induced conversion guidance applies to a convertible debt instrument that is not currently convertible as long as it had a substantive conversion feature as of both its issuance date and the date the inducement offer is accepted. January 1, 2026 The Corporation does not currently engage in transactions within the scope of this guidance. Accordingly, adoption did not have a material impact on the consolidated financial statements. Should the Corporation enter into such transactions in the future, the impact would be evaluated at that time. 15 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Accounting Standards Updates Not Yet Adopted Standard Description Date of adoption Effect on the financial statements FASB ASU 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818) The FASB issued ASU 2026-02 in May 2026, which improves the financial accounting for and disclosure of environmental credits and environmental credit obligations. This Update provides recognition, measurement, presentation and disclosure requirements for entities that generate, purchase or receive environmental credits or have a regulatory compliance obligation that may be settled with environmental credits. January 1, 2028 The Corporation does not currently engage in transactions within the scope of this guidance. Accordingly, adoption is not expected to have a material impact on the consolidated financial statements. Should the Corporation enter into such transactions in the future, the impact would be evaluated at that time. FASB ASU 2026-01, Equity (Topic 505) - Initial Measurement of Paid-in Kind Dividends on Equity-Classified Preferred Stock The FASB issued ASU 2026-01 in April 2026, which establishes authoritative guidance on the initial measurement of paid-in-kind (PIK) dividends on equity-classified preferred stock. The update establishes a consistent measurement requirement for PIK dividends but does not address when such dividends should be recognized. It requires PIK dividends to be initially measured using the stated PIK dividend rate in the preferred stock agreement, generally applied to the liquidation preference of the preferred stock. January 1, 2027 The Corporation does not currently engage in transactions within the scope of this guidance. Accordingly, adoption is not expected to have a material impact on the consolidated financial statements. Should the Corporation enter into such transactions in the future, the impact would be evaluated at that time. FASB ASU 2025-10, Government Grants (Topic 832) - Accounting for Government Grants Received by Business Entities The FASB issued ASU 2025-10 in December 2025, which establishes the accounting for government grants received by a business entity. The update establishes recognition, measurement, and disclosure requirements for government grants. It allows asset related grants to be recognized either as deferred income or as an adjustment to the cost basis of an asset and income-related grants as deferred income. January 1, 2029 The Corporation does not currently engage in transactions within the scope of this guidance. Accordingly, adoption is not expected to have a material impact on the consolidated financial statements. Should the Corporation enter into such transactions in the future, the impact would be evaluated at that time. FASB ASU 2025-09, Derivatives and Hedging (Topic 815) - Hedge Accounting Improvements The FASB issued ASU 2025-09 in November 2025, which aims to improve and broaden hedge accounting under ASC Topic 815 by allowing entities to group forecasted transaction with similar risk exposures, provides a model for hedging choose-your rate debt, expands hedge accounting for forecasted purchases and sales of non financial assets, eliminates net written option limitations for certain compound derivatives, and resolves recognition mismatches in dual hedging strategies involving foreign-currency- denominated debt. January 1, 2027 The Corporation does not currently engage in transactions within the scope of this guidance. Accordingly, adoption is not expected to have a material impact on the consolidated financial statements. Should the Corporation enter into such transactions in the future, the impact would be evaluated at that time. FASB ASU 2025-08, Financial Instruments Credit Losses (Topic 326)- Purchased Loans The FASB issued ASU 2025-08 in November 2025, which aims to simplify and reduce the complexity of the accounting for purchased loans under ASC Topic 326. The update expands the population of loans subject to the gross-up approach to include purchased seasoned loans, regardless whether they had credit deterioration. January 1, 2027 The amendments in this standard apply to certain transactions entered into after the effective date. Adoption is not expected to have a material impact on the consolidated financial statements. However, the applicability and magnitude will depend on the nature and extent of transactions the Corporation may enter into in future periods. 16 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) FASB ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606) Derivatives Scope Refinements and Scope Clarification for Share Based Noncash Consideration from a Customer in a Revenue Contract The FASB issued ASU 2025-07 in September 2025, which refines the scope of derivative accounting under ASC Topic 815 and clarifies the treatment of share-based noncash consideration under ASC Topic 606. The update reduces complexity and diversity in application. Narrows the scope of derivative accounting under ASC Topic 815 for certain contracts whose underlyings are based on a party’s own operations or activities; and clarifies that ASC Topic 606 governs share- based noncash consideration received from a customer until the entity’s right becomes unconditional. January 1, 2027 The Corporation does not currently engage in transactions within the scope of this guidance. Accordingly, adoption is not expected to have a material impact on the consolidated financial statements. Should the Corporation enter into such transactions in the future, the impact would be evaluated at that time. FASB ASU 2025-06, Intangibles - Goodwill and Other - Internal- Use Software (Subtopic 350 40) - Targeted Improvements to the Accounting for Internal Use Software The FASB issued ASU 2025-06 in September 2025, which seeks to modernize the accounting for internal-use software under ASC Subtopic 350-40, Intangibles— Goodwill and Other—Internal-Use Software. The update replaces the traditional stage based model (preliminary, development, post- implementation) with a principles based framework that better reflects current software development practices, including agile and cloud-based approaches. January 1, 2028 The Corporation is currently evaluating the impact that the adoption of this guidance will have on our accounting for internal use software considering our development practices which may include agile and cloud-based approaches. FASB ASU 2025-04, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606) - Clarifications to Share-Based Consideration Payable to a Customer The FASB issued ASU 2025-04 in May 2025, which clarifies the accounting for share- basedawardsgrantedas consideration payable to a customer. The ASU expands the definition of performance condition for share-based consideration under ASC Topic 718 and eliminates the forfeiture policy election for service conditions. It also confirms that the variable consideration constraint in ASC Topic 606 does not apply to such awards. January 1, 2027 The Corporation does not currently engage in transactions within the scope of this guidance. Accordingly, adoption is not expected to have a material impact on the consolidated financial statements. Should the Corporation enter into such transactions in the future, the impact would be evaluated at that time. FASB ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810) - Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity The FASB issued ASU 2025-03 in May 2025 which requires that an entity consider the factors in paragraphs 805-10-55-12 through 55-15 when it is involved in an acquisition transaction effected primarily by exchanging equity interests when the legal acquiree is a variable interest entity ("VIE") that meets the definition of a business to determine which entity is the accounting acquirer. This replaces the previous requirement that the primary beneficiary always is the acquirer. January 1, 2027 The amendments in this standard apply to certain transactions entered into after the effective date. Adoption is not expected to have a material impact on the consolidated financial statements. However, the applicability and magnitude will depend on the nature and extent of transactions the Corporation may enter into in future periods. FASB ASU 2024-03, Income Statement— Reporting Comprehensive Income —Expense Disaggregation Disclosures (Subtopic 220-40) - Disaggregation of Income Statement Expenses (As updated by ASU 2025-01) The FASB issued ASU 2024-03 in November 2024, which requires public entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods to improve financial transparency. For fiscal years beginning on January 1,2027 For interim periods within fiscal years beginning after January 1,2028 The Corporation is currently evaluating any impact that the adoption of this guidance will have on its financial statements and presentation and disclosures. 17 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) ### Note 4 - Restrictions on cash and due from banks and certain securities BPPR is required by regulatory agencies to maintain average reserve balances with the Federal Reserve Bank of New York (the “Fed") or other banks. Required average reserve balances in BPPR amounted to $2.6 billion at June 30, 2026 (December 31, 2025 - $2.7 billion). Cash and due from banks, as well as other highly liquid securities, are used to cover these required average reserve balances. At June 30, 2026, the Corporation held $68.0 million in restricted assets in the form of funds deposited in money market accounts, debt securities available for sale and equity securities (December 31, 2025 - $64.0 million). The restricted assets held in debt securities available for sale and equity securities consist primarily of assets held for the Corporation’s non-qualified retirement plans and fund deposits guaranteeing possible liens or encumbrances over the title of insured properties. ### Note 5 - Debt securities available-for-sale The following tables present the amortized cost, gross unrealized gains and losses, fair value, weighted average yield and contractual maturities of debt securities available-for-sale at June 30, 2026 and December 31, 2025. _At June 30, 2026_ | (In thousands) | Amortizedcost | Grossunrealizedgains | Grossunrealizedlosses | Fairvalue | Weightedaverageyield | | --- | --- | --- | --- | --- | --- | | U.S. Treasury securities | | | | | | | Within 1 year | $13,413,909 | $338 | $5,472 | $13,408,775 | 3.56% | | After 1 to 5 years | 6,928,574 | 1,001 | 67,742 | 6,861,833 | 3.71 | | Total U.S. Treasury securities | 20,342,483 | 1,339 | 73,214 | 20,270,608 | 3.61 | | Collateralized mortgage obligations - federal agencies | | | | | | | Within 1 year | 44 | - | - | 44 | 5.42 | | After 1 to 5 years | 2,930 | - | 50 | 2,880 | 1.48 | | After 5 to 10 years | 9,680 | 1 | 481 | 9,200 | 2.48 | | After 10 years | 83,627 | 45 | 6,263 | 77,409 | 2.95 | | Total collateralized mortgage obligations - federal agencies | 96,281 | 46 | 6,794 | 89,533 | 2.86 | | Mortgage-backed securities - federal agencies | | | | | | | Within 1 year | 477 | - | 3 | 474 | 2.22 | | After 1 to 5 years | 101,278 | 13 | 3,698 | 97,593 | 2.14 | | After 5 to 10 years | 1,028,726 | 107 | 85,945 | 942,888 | 1.75 | | After 10 years | 4,183,655 | 556 | 792,994 | 3,391,217 | 1.77 | | Total mortgage-backed securities - federal agencies | 5,314,136 | 676 | 882,640 | 4,432,172 | 1.78 | | Other | | | | | | | After 1 to 5 years | 521 | - | - | 521 | 5.00 | | Total other | 521 | - | - | 521 | 5.00 | | Total debt securities available-for-sale[1] | $25,753,421 | $2,061 | $962,648 | $24,792,834 | 3.23% | [1]Includes $18.9 billion pledged to secure government and trust deposits, assets sold under agreements to repurchase, credit facilities and loan servicing agreements that the secured parties are not permitted to sell or repledge the collateral, of which $17.6 billion serve as collateral for public funds. The Corporation had unpledged Available for Sale securities with a fair value of $5.7 billion that could be used to increase its borrowing facilities. 18 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _At December 31, 2025_ | (In thousands) | Amortizedcost | Grossunrealizedgains | Grossunrealizedlosses | Fairvalue | Weightedaverageyield | | --- | --- | --- | --- | --- | --- | | U.S. Treasury securities | | | | | | | Within 1 year | $10,154,698 | $4,716 | $1,528 | $10,157,886 | 3.44% | | After 1 to 5 years | 5,555,079 | 29,795 | 19,306 | 5,565,568 | 3.70 | | Total U.S. Treasury securities | 15,709,777 | 34,511 | 20,834 | 15,723,454 | 3.53 | | Collateralized mortgage obligations - federal agencies | | | | | | | Within 1 year | 152 | - | 1 | 151 | 1.97 | | After 1 to 5 years | 4,879 | - | 88 | 4,791 | 1.49 | | After 5 to 10 years | 11,524 | - | 482 | 11,042 | 2.45 | | After 10 years | 90,018 | 180 | 5,941 | 84,257 | 2.92 | | Total collateralized mortgage obligations - federal agencies | 106,573 | 180 | 6,512 | 100,241 | 2.80 | | Mortgage-backed securities - federal agencies | | | | | | | Within 1 year | 963 | 1 | 9 | 955 | 2.08 | | After 1 to 5 years | 65,843 | 11 | 1,530 | 64,324 | 2.35 | | After 5 to 10 years | 1,030,661 | 256 | 67,116 | 963,801 | 1.85 | | After 10 years | 4,527,032 | 881 | 806,466 | 3,721,447 | 1.75 | | Total mortgage-backed securities - federal agencies | 5,624,499 | 1,149 | 875,121 | 4,750,527 | 1.78 | | Other | | | | | | | Within 1 year | 750 | - | - | 750 | 4.43 | | Total other | 750 | - | - | 750 | 4.43 | | Total debt securities available-for-sale[1] | $21,441,599 | $35,840 | $902,467 | $20,574,972 | 3.07% | [1] Includes $14.3 billion pledged to secure government and trust deposits, assets sold under agreements to repurchase, credit facilities and loan servicing agreements that the secured parties are not permitted to sell or repledge the collateral, of which $13.2 billion serve as collateral for public funds. The Corporation had unpledged Available for Sale securities with a fair value of $6.3 billion that could be used to increase its borrowing facilities. The weighted average yield on debt securities available-for-sale is based on amortized cost; therefore, it does not give effect to changes in fair value. Debt securities not due on a single contractual maturity date, such as mortgage-backed securities and collateralized mortgage obligations, are classified based on the period of final contractual maturity. The expected maturities of collateralized mortgage obligations, mortgage- backed securities and certain other securities may differ from their contractual maturities because they may be subject to prepayments or may be called by the issuer. At June 30, 2026, the Corporation did not intend to sell or believe it was more likely than not that it would be required to sell debt securities classified as available-for-sale. There were no debt securities classified as available-for-sale sold during the six months ended June 30, 2026 and 2025. The following tables present the Corporation’s fair value and gross unrealized losses of debt securities available-for-sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2026 and December 31, 2025. _At June 30, 2026_ | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Less than 12 months | | 12 months or more | | Total | | | (In thousands) | Fairvalue | Grossunrealizedlosses | Fairvalue | Grossunrealizedlosses | Fairvalue | Grossunrealizedlosses | | U.S. Treasury securities | $17,032,384 | $51,923 | $440,538 | $21,291 | $17,472,922 | $73,214 | | Collateralized mortgage obligations - federal agencies | 9,946 | 85 | 70,494 | 6,709 | 80,440 | 6,794 | | Mortgage-backed securities -federal agencies | 208,344 | 10,374 | 4,185,326 | 872,266 | 4,393,670 | 882,640 | | Total debt securities available-for-sale in an unrealized loss position | $17,250,674 | $62,382 | $4,696,358 | $900,266 | $21,947,032 | $962,648 | _At December 31, 2025_ | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Less than 12 months | | 12 months or more | | Total | | | (In thousands) | Fairvalue | Grossunrealizedlosses | Fairvalue | Grossunrealizedlosses | Fairvalue | Grossunrealizedlosses | | U.S. Treasury securities | $992,083 | $82 | $943,699 | $20,752 | $1,935,782 | $20,834 | | Collateralized mortgage obligations - federal agencies | 1,481 | 3 | 83,266 | 6,509 | 84,747 | 6,512 | | Mortgage-backed securities - federal agencies | 222,333 | 9,975 | 4,469,097 | 865,146 | 4,691,430 | 875,121 | | Total debt securities available-for-sale in an unrealized loss position | $1,215,897 | $10,060 | $5,496,062 | $892,407 | $6,711,959 | $902,467 | 19 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Debt securities available-for-sale in a continuous unrealized loss position for less than twelve months of $17.3 billion as of June 30, 2026, compared to $1.2 billion on December 31, 2025, are impacted by changes in market rates. As of June 30, 2026, the portfolio of available-for-sale debt securities reflects gross unrealized losses of $1.0 billion (December 31, 2025 - $0.9 billion), driven mainly by mortgage-backed securities, which have been impacted by the interest rate environment and the portfolio’s longer duration. The portfolio of available-for-sale debt securities is comprised mainly of U.S Treasuries and obligations from the U.S. Government, its agencies or government sponsored entities, including Federal National Mortgage Association (“FNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”) and Government National Mortgage Association (“GNMA”). These securities carry an explicit or implicit guarantee from the U.S. Government, are highly rated by major rating agencies, and have a long history of no credit losses. Accordingly, the Corporation applies a zero-credit loss assumption. ### Note 6 - Debt securities held-to-maturity The following tables present the amortized cost, allowance for credit losses, gross unrealized gains and losses, approximate fair value, weighted average yield and contractual maturities of debt securities held-to-maturity at June 30, 2026 and December 31, 2025. _At June 30, 2026_ | (In thousands) | Amortizedcost | Book Value [1] | Allowancefor Credit Losses | Carrying Value Net of Allowance | Grossunrealizedgains | Grossunrealizedlosses | Fairvalue | Weightedaverageyield | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | U.S. Treasury securities | | | | | | | | | | Within 1 year | $2,550,122 | $2,514,507 | $- | $2,514,507 | $- | $2,273 | $2,512,234 | 1.06% | | After 1 to 5 years | 3,806,389 | 3,640,221 | - | 3,640,221 | - | 19,074 | 3,621,147 | 1.33 | | Total U.S. Treasury securities | 6,356,511 | 6,154,728 | - | 6,154,728 | - | 21,347 | 6,133,381 | 1.22 | | Obligations of Puerto Rico, States and political subdivisions | | | | | | | | | | Within 1 year | 2,720 | 2,720 | 8 | 2,712 | 8 | - | 2,720 | 6.45 | | After 1 to 5 years | 3,910 | 3,910 | 24 | 3,886 | 11 | - | 3,897 | 1.84 | | After 5 to 10 years | 450 | 450 | 14 | 436 | 6 | - | 442 | 5.81 | | After 10 years | 34,769 | 34,769 | 6,184 | 28,585 | 2,465 | 1,770 | 29,280 | 1.43 | | Total obligations of Puerto Rico, States and political subdivisions | 41,849 | 41,849 | 6,230 | 35,619 | 2,490 | 1,770 | 36,339 | 1.84 | | Collateralized mortgage obligations - federal agencies | | | | | | | | | | After 10 years | 1,483 | 1,483 | - | 1,483 | - | 187 | 1,296 | 2.87 | | Total collateralized mortgage obligations - federal agencies | 1,483 | 1,483 | - | 1,483 | - | 187 | 1,296 | 2.87 | | Securities in wholly owned statutory business trusts | | | | | | | | | | After 5 to 10 years | 5,960 | 5,960 | - | 5,960 | - | - | 5,960 | 6.33 | | Total securities in wholly owned statutory business trusts | 5,960 | 5,960 | - | 5,960 | - | - | 5,960 | 6.33 | | Total debt securities held-to-maturity [2] | $6,405,803 | $6,204,020 | $6,230 | $6,197,790 | $2,490 | $23,304 | $6,176,976 | 1.23% | [1]Book value includes $201.8 million of unrealized loss which remains in Accumulated other comprehensive (loss) income (AOCI) related to certain securities previously transferred from available-for-sale securities portfolio to the held-to-maturity securities portfolio. [2] Included $6.1 billion pledged to secure public and trust deposits that the secured parties are not permitted to sell or repledge the collateral. The Corporation had unpledged held-to-maturities securities with a fair value of $99.7 million that could be used to increase its borrowing facilities. 20 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _At December 31, 2025_ | (In thousands) | Amortizedcost | Book Value [1] | Allowancefor Credit Losses | Carrying Value Net of Allowance | Grossunrealizedgains | Grossunrealizedlosses | Fairvalue | Weightedaverageyield | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | U.S. Treasury securities | | | | | | | | | | Within 1 year | $2,558,293 | $2,519,071 | $- | $2,519,071 | $5,224 | $110 | $2,524,185 | 1.31% | | After 1 to 5 years | 5,003,219 | 4,749,896 | - | 4,749,896 | 35,910 | - | 4,785,806 | 1.27 | | Total U.S. Treasury securities | 7,561,512 | 7,268,967 | - | 7,268,967 | 41,134 | 110 | 7,309,991 | 1.28 | | Obligations of Puerto Rico, States andpolitical subdivisions | | | | | | | | | | Within 1 year | 2,605 | 2,605 | 5 | 2,600 | 4 | - | 2,604 | 6.43 | | After 1 to 5 years | 12,508 | 12,508 | 39 | 12,469 | 24 | 87 | 12,406 | 3.49 | | After 5 to 10 years | 450 | 450 | 15 | 435 | 15 | - | 450 | 5.81 | | After 10 years | 35,544 | 35,544 | 5,753 | 29,791 | 2,908 | 1,829 | 30,870 | 1.43 | | Total obligations of Puerto Rico, States and political subdivisions | 51,107 | 51,107 | 5,812 | 45,295 | 2,951 | 1,916 | 46,330 | 2.22 | | Collateralized mortgage obligations - federal agencies | | | | | | | | | | After 10 years | 1,495 | 1,495 | - | 1,495 | - | 189 | 1,306 | 2.87 | | Total collateralized mortgage obligations - federal agencies | 1,495 | 1,495 | - | 1,495 | - | 189 | 1,306 | 2.87 | | Securities in wholly owned statutory business trusts | | | | | | | | | | After 5 to 10 years | 5,960 | 5,960 | - | 5,960 | - | - | 5,960 | 6.33 | | Total securities in wholly owned statutory business trusts | 5,960 | 5,960 | - | 5,960 | - | - | 5,960 | 6.33 | | Total debt securities held-to-maturity [2] | $7,620,074 | $7,327,529 | $5,812 | $7,321,717 | $44,085 | $2,215 | $7,363,587 | 1.29% | [1]Book value includes $293.0 million of unrealized loss which remains in Accumulated other comprehensive (loss) income (AOCI) related to certain securities transferred from available-for-sale securities portfolio to the held-to-maturity securities portfolio. [2] Includes $7.3 billion pledged to secure public and trust deposits that the secured parties are not permitted to sell or repledge the collateral. The Corporation had unpledged held-to-maturities securities with a fair value of $98.8 million that could be used to increase its borrowing facilities. Debt securities not due on a single contractual maturity date, such as collateralized mortgage obligations, are classified in the period of final contractual maturity. The expected maturities of collateralized mortgage obligations and certain other securities may differ from their contractual maturities because they may be subject to prepayments or may be called by the issuer. Credit Quality Indicators The following describes the credit quality indicators by major security type that the Corporation considers to develop the estimate of the allowance for credit losses for investment securities held-to-maturity. As discussed in Note 2 of the 2025 Form 10-K, U.S. Treasury securities carry an explicit guarantee from the U.S. Government, are highly rated by major rating agencies and have a long history of no credit losses. Accordingly, the Corporation applies a zero-credit loss assumption and no allowance for credit losses (“ACL") for these securities has been established. At June 30, 2026 and December 31, 2025, the “Obligations of Puerto Rico, States and political subdivisions" classified as held-to-maturity, included securities issued by municipalities of Puerto Rico that are generally not rated by a credit rating agency. The Corporation performs periodic credit quality reviews of these securities and internally assigns standardized credit risk ratings based on its evaluation. For the definitions of the obligor risk ratings, refer to the Credit Quality section of Note 8 to the Consolidated Financial Statements. This includes $7.1 million of general and special obligation bonds issued by three municipalities of Puerto Rico, of which $6.3 million have a “Pass" rating, that are payable primarily from certain property taxes imposed by the issuing municipality (compared to $8.7 million and $7.9 million, respectively, at December 31, 2025). At June 30, 2026, the portfolio of “Obligations of Puerto Rico, States and political subdivisions" also included $34.8 million in securities issued by the Puerto Rico Housing Finance Authority (“HFA"), a government instrumentality, for which the underlying source of payment is second mortgage loans in Puerto Rico residential properties (not the government), but for which HFA provides a guarantee in the event of default and upon the satisfaction of certain other conditions (December 31, 2025 - $36.0 million). These securities are not rated by a credit rating agency. Refer to Note 16 to the Consolidated Financial Statements for additional information on the Corporation’s exposure to the Puerto Rico Government. 21 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) A deterioration of the Puerto Rico economy or of the fiscal health of the Government of Puerto Rico and/or its instrumentalities (including if any of the issuing municipalities become subject to a debt restructuring proceeding under the Puerto Rico Oversight Management and Economic Stability Act (“PROMESA”)) could adversely affect the value of these securities, resulting in losses to the Corporation. At June 30, 2026, the portfolio of “Obligations of Puerto Rico, States and political subdivisions” had no securities issued by the HFA for which the underlying source of payment is U.S. Treasury securities (December 31, 2025 - $6.8 million), as all such securities were fully redeemed during the quarter ended on March 31, 2026. Historically, the Corporation has applied a zero-credit loss assumption for these securities, and no ACL has been established for these securities given that U.S. Treasury securities carry an explicit guarantee from the U.S. Government, are highly rated by major rating agencies, and have a long history of no credit losses. Delinquency status At June 30, 2026 and December 31, 2025, there were no securities held-to-maturity in past due or non-performing status. Allowance for credit losses on debt securities held-to-maturity The allowance for credit losses related to the Obligations of Puerto Rico and the States and Political subdivisions securities at June 30, 2026 was $6.2 million (December 31, 2025 - $5.8 million). ### Note 7 - Loans For a summary of the accounting policies related to loans, interest recognition and allowance for credit losses refer to Note 2 - Summary of Significant Accounting Policies of the 2025 Form 10-K. The following table presents the Corporation's loan purchases for the quarters and six months ended June 30, 2026 and 2025 by class of loans: | (In thousands) | Quarters ended June 30, 2026 | Quarters ended June 30, 2025 | Six months ended June 30, 2026 | Six months ended June 30, 2025 | | --- | --- | --- | --- | --- | | Commercial | $15,304 | $67,726 | $70,310 | $74,886 | | Mortgage | 121,644 | 125,690 | 230,852 | 246,597 | | Ending balance | $136,948 | $193,416 | $301,162 | $321,483 | The following table presents the Corporation’s loan sales for the quarters and six months ended June 30, 2026 and 2025 by class of loans: | (In thousands) | Quarters ended June 30, 2026 | Quarters ended June 30, 2025 | Six months ended June 30, 2026 | Six months ended June 30, 2025 | | --- | --- | --- | --- | --- | | Commercial | $165,886 | $1,000 | $180,077 | $27,349 | | Construction | 3,833 | - | 3,833 | 9,338 | | Mortgage | 11,959 | 8,450 | 22,994 | 15,387 | | Ending balance | $181,678 | $9,450 | $206,904 | $52,074 | Delinquency status The following tables present the amortized cost basis of loans held-in-portfolio (“HIP’’), net of unearned income, by past due status, and by loan class including those that are in non-performing status or that are accruing interest but are past due 90 days or more at June 30, 2026 and December 31, 2025. 22 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **BPPR** _June 30, 2026_ | 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 | **Popular U.S.** _June 30, 2026_ | Line item | | Past due 90 days or more | | --- | --- | --- | | (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 | 23 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **Popular, Inc.** _June 30, 2026_ | Line item | | Past due 90 days or more | | --- | --- | --- | | (In thousands) | Loans HIP [2] [3] | 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[1] | 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 | [1]At June 30, 2026, mortgage loans held-in-portfolio include $6.8 billion of loans that carry certain guarantees from the FHA or the VA, for which the Corporation’s policy is to exclude them from non-performing status, of which $191.5 million are 90 days or more past due. The portfolio of guaranteed loans includes $39.8 million of residential mortgage loans in Puerto Rico that are no longer accruing interest as of June 30, 2026. The Corporation has $26.3 million in reverse mortgage loans in Puerto Rico which are guaranteed by FHA, but which are currently not accruing interest at June 30, 2026. [2]Loans held-in-portfolio are net of $406.7 million in unearned income and exclude $88.6 million in loans held-for-sale. [3]Includes $22.8 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral, of which $7.4 billion were pledged at the Federal Home Loan Bank ("FHLB") as collateral for borrowings and $15.3 billion at the Federal Reserve Bank ("FRB") for discount window borrowings. As of June 30, 2026, the Corporation had an available borrowing facility with the FHLB and the discount window of FRB of $4.1 billion and $11.9 billion, respectively. **BPPR** _December 31, 2025_ | Line item | | Past due 90 days or more | | --- | --- | --- | | (In thousands) | Loans HIP | Accruingloans | | Commercial multi-family | $303,348 | $- | | Commercial real estate: | | | | Non-owner occupied | 3,395,130 | - | | Owner occupied | 1,196,593 | - | | Commercial and industrial | 5,970,073 | 3,308 | | Construction | 357,541 | - | | Mortgage | 7,347,967 | 197,240 | | Leasing | 2,001,365 | - | | Consumer: | | | | Credit cards | 1,256,731 | 27,529 | | Home equity lines of credit | 1,908 | - | | Personal | 1,836,402 | 219 | | Auto | 3,819,812 | - | | Other | 171,758 | 476 | | Total | $27,658,628 | $228,772 | 24 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **Popular U.S.** _December 31, 2025_ | Line item | | Past due 90 days or more | | --- | --- | --- | | (In thousands) | Loans HIP | Accruingloans | | Commercial multi-family | $2,152,442 | $- | | Commercial real estate: | | | | Non-owner occupied | 2,148,154 | - | | Owner occupied | 1,956,487 | - | | Commercial and industrial | 2,637,339 | 188 | | Construction | 1,317,358 | - | | Mortgage | 1,301,473 | - | | Consumer: | | | | Credit cards | (14) | - | | Home equity lines of credit | 76,784 | - | | Personal | 69,826 | - | | Other | 9,041 | - | | Total | $11,668,890 | $188 | **Popular, Inc.** _December 31, 2025_ | Line item | | Past due 90 days or more | | --- | --- | --- | | (In thousands) | Loans HIP [2] [3] | Accruingloans | | Commercial multi-family | $2,455,790 | $- | | Commercial real estate: | | | | Non-owner occupied | 5,543,284 | - | | Owner occupied | 3,153,080 | - | | Commercial and industrial | 8,607,412 | 3,496 | | Construction | 1,674,899 | - | | Mortgage[1] | 8,649,440 | 197,240 | | Leasing | 2,001,365 | - | | Consumer: | | | | Credit cards | 1,256,717 | 27,529 | | Home equity lines of credit | 78,692 | - | | Personal | 1,906,228 | 219 | | Auto | 3,819,812 | - | | Other | 180,799 | 476 | | Total | $39,327,518 | $228,960 | [1]At December 31, 2025 mortgage loans held-in-portfolio include $3.2 billion of loans that carry certain guarantees from the FHA or the VA, for which the Corporation’s policy is to exclude them from non-performing status, of which $197 million are 90 days or more past due. The portfolio of guaranteed loans includes $47 million of residential mortgage loans in Puerto Rico that are no longer accruing interest as of December 31, 2025. The Corporation has $27.0 million in reverse mortgage loans in Puerto Rico which are guaranteed by FHA, but which are currently not accruing interest at December 31, 2025. [2]Loans held-in-portfolio are net of $421.6 million in unearned income and exclude $10.0 million in loans held-for-sale. [3]Includes $22.7 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral, of which $7.5 billion were pledged at the FHLB as collateral for borrowings and $15.2 billion at the FRB for discount window borrowings. As of December 31, 2025, the Corporation had an available borrowing facility with the FHLB and the discount window of FRB of $4.0 billion and $12.1 billion, respectively. The following tables present the amortized cost basis of non-accrual loans as of June 30, 2026 and December 31, 2025 by class of loans: 25 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _June 30, 2026_ | (In thousands) | BPPR / Non-accrualwith noallowance | BPPR / Non-accrualwithallowance | Popular U.S. / Non-accrualwith noallowance | Popular U.S. / Non-accrualwithallowance | Popular, Inc. / Non-accrualwith noallowance | Popular, Inc. / Non-accrualwithallowance | | --- | --- | --- | --- | --- | --- | --- | | Commercial multi-family | $- | $- | $2,288 | $6,643 | $2,288 | $6,643 | | Commercial real estate non-owner occupied | 23,597 | 2,419 | 6,925 | 25 | 30,522 | 2,444 | | Commercial real estate owner occupied | 6,523 | 8,851 | 489 | 8,376 | 7,012 | 17,227 | | Commercial and industrial | - | 138,389 | 4,090 | 2,473 | 4,090 | 140,862 | | Mortgage | 54,106 | 75,134 | 814 | 9,419 | 54,920 | 84,553 | | Leasing | 660 | 6,522 | | | 660 | 6,522 | | Consumer: | | | | | | | | HELOCs | | | - | 3,320 | - | 3,320 | | Personal | 3,577 | 13,028 | - | 751 | 3,577 | 13,779 | | Auto | 2,871 | 28,603 | - | - | 2,871 | 28,603 | | Other | 746 | 2,798 | - | - | 746 | 2,798 | | Total | $92,080 | $275,744 | $14,606 | $31,007 | $106,686 | $306,751 | _December 31, 2025_ | (In thousands) | BPPR / Non-accrualwith noallowance | BPPR / Non-accrualwithallowance | Popular U.S. / Non-accrualwith noallowance | Popular U.S. / Non-accrualwithallowance | Popular, Inc. / Non-accrualwith noallowance | Popular, Inc. / Non-accrualwithallowance | | --- | --- | --- | --- | --- | --- | --- | | Commercial multi-family | $- | $112 | $8,137 | $499 | $8,137 | $611 | | Commercial real estate non-owner occupied | 31,408 | 4,284 | 6,979 | 41 | 38,387 | 4,325 | | Commercial real estate owner occupied | 16,576 | 7,991 | - | - | 16,576 | 7,991 | | Commercial and industrial | 6,245 | 177,669 | 5,985 | 513 | 12,230 | 178,182 | | Mortgage | 59,302 | 73,071 | 732 | 12,690 | 60,034 | 85,761 | | Leasing | 771 | 8,408 | - | - | 771 | 8,408 | | Consumer: | | | | | | | | HELOCs | - | - | - | 2,796 | - | 2,796 | | Personal | 3,314 | 15,549 | - | 1,233 | 3,314 | 16,782 | | Auto | 2,252 | 49,948 | - | - | 2,252 | 49,948 | | Other | 378 | 1,431 | - | 29 | 378 | 1,460 | | Total | $120,246 | $338,463 | $21,833 | $17,801 | $142,079 | $356,264 | The Corporation has designated loans classified as collateral dependent for which the ACL is measured based on the fair value of the collateral less cost to sell, when foreclosure is probable or when the repayment is expected to be provided substantially by the sale or operation of the collateral and the borrower is experiencing financial difficulty. The fair value of the collateral is based on appraisals, which may be adjusted due to their age, type, location, and condition of the property or area or general market conditions to reflect the expected change in value between the effective date of the appraisal and the measurement date. Appraisals are updated every one to two years depending on the type of loan and the total exposure of the borrower. Loans in non-accrual status with no allowance at June 30, 2026 include $106.7 million in collateral dependent loans (December 31, 2025 - $142.0 million). The Corporation recognized $2.9 million in interest income on non-accrual loans during the six months ended June 30, 2026 (June 30, 2025 - $3.0 million). The following tables present the amortized cost basis of collateral-dependent loans, for which the ACL was measured based on the fair value of the collateral less cost to sell, by class of loans and type of collateral as of June 30, 2026 and December 31, 2025: 26 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _June 30, 2026_ | (In thousands) | Real Estate | Auto | Equipment | Other | Total | | --- | --- | --- | --- | --- | --- | | BPPR | | | | | | | Commercial multi-family | $1,173 | | | $- | $1,173 | | Commercial real estate: | | | | | | | Non-owner occupied | 95,379 | - | - | - | 95,379 | | Owner occupied | 13,042 | - | - | - | 13,042 | | Commercial and industrial | 3,313 | - | 571 | 44,558 | 48,442 | | Mortgage | 61,541 | - | - | - | 61,541 | | Leasing | | 1,705 | - | - | 1,705 | | Consumer: | | | | | | | Personal | 3,868 | - | - | - | 3,868 | | Auto | | 17,067 | - | - | 17,067 | | Other | | 10 | - | 1,082 | 1,092 | | Total BPPR | $178,316 | $18,782 | $571 | $45,640 | $243,309 | | Popular U.S. | | | | | | | Commercial multi-family | $12,559 | $- | $- | $- | $12,559 | | Commercial real estate: | | | | | | | Non-owner occupied | 65,577 | - | - | - | 65,577 | | Owner occupied | 8,865 | | | | 8,865 | | Commercial and industrial | 4,090 | - | - | 2,000 | 6,090 | | Mortgage | 1,406 | - | - | - | 1,406 | | Total Popular U.S. | $92,497 | $- | $- | $2,000 | $94,497 | | Popular, Inc. | | | | | | | Commercial multi-family | $13,732 | $- | $- | $- | $13,732 | | Commercial real estate: | | | | | | | Non-owner occupied | 160,956 | - | - | - | 160,956 | | Owner occupied | 21,907 | - | - | - | 21,907 | | Commercial and industrial | 7,403 | - | 571 | 46,558 | 54,532 | | Mortgage | 62,947 | - | - | - | 62,947 | | Leasing | - | 1,705 | - | - | 1,705 | | Consumer: | | | | | | | Personal | 3,868 | - | - | - | 3,868 | | Auto | - | 17,067 | - | - | 17,067 | | Other | - | 10 | - | 1,082 | 1,092 | | Total Popular, Inc. | $270,813 | $18,782 | $571 | $47,640 | $337,806 | 27 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _December 31, 2025_ | (In thousands) | Real Estate | Auto | Equipment | Other | Total | | --- | --- | --- | --- | --- | --- | | BPPR | | | | | | | Commercial multi-family | $1,206 | $- | $- | $- | $1,206 | | Commercial real estate: | | | | | | | Non-owner occupied | 127,031 | - | - | - | 127,031 | | Owner occupied | 23,014 | - | - | - | 23,014 | | Commercial and industrial | 2,378 | - | 4,476 | 297 | 7,151 | | Mortgage | 67,380 | - | - | - | 67,380 | | Leasing | - | 1,925 | - | - | 1,925 | | Consumer: | | | | | | | Personal | 3,402 | - | - | - | 3,402 | | Auto | - | 16,512 | - | - | 16,512 | | Other | - | 31 | - | 363 | 394 | | Total BPPR | $224,411 | $18,468 | $4,476 | $660 | $248,015 | | Popular U.S. | | | | | | | Commercial multi-family | $16,395 | $- | $- | $- | $16,395 | | Commercial real estate: | | | | | | | Non-owner occupied | 65,630 | - | - | - | 65,630 | | Commercial and industrial | 4,187 | - | - | 1,798 | 5,985 | | Mortgage | 1,398 | - | - | - | 1,398 | | Total Popular U.S. | $87,610 | $- | $- | $1,798 | $89,408 | | Popular, Inc. | | | | | | | Commercial multi-family | $17,601 | $- | $- | $- | $17,601 | | Commercial real estate: | | | | | | | Non-owner occupied | 192,661 | - | - | - | 192,661 | | Owner occupied | 23,014 | - | - | - | 23,014 | | Commercial and industrial | 6,565 | - | 4,476 | 2,095 | 13,136 | | Mortgage | 68,778 | - | - | - | 68,778 | | Leasing | - | 1,925 | - | - | 1,925 | | Consumer: | | | | | | | Personal | 3,402 | - | - | - | 3,402 | | Auto | - | 16,512 | - | - | 16,512 | | Other | - | 31 | - | 363 | 394 | | Total Popular, Inc. | $312,021 | $18,468 | $4,476 | $2,458 | $337,423 | ### Note 8 - Allowance for credit losses – loans held-in-portfolio The Corporation follows the current expected credit loss (“CECL”) model to establish and evaluate the adequacy of the ACL to provide for expected losses in the loan portfolio. This model establishes a forward-looking methodology that reflects the expected credit losses over the lives of financial assets starting when such assets are first acquired or originated. In addition, CECL provides that the initial ACL on PCD financial assets be recorded as an increase to the purchase price, with subsequent changes to the allowance recorded as a credit loss expense. The provision for credit losses recorded in current operations is based on this methodology. Loan losses are charged and recoveries are credited to the ACL. The Corporation’s modeling framework includes internally developed quantitative models that generate lifetime default and prepayment estimates as well as other loan level techniques to estimate loss severity. These models combine credit risk factors which include the impact of loan modifications, with macroeconomics expectations to derive the lifetime expected loss. At June 30, 2026, the Corporation estimated the ACL by weighting the outputs of optimistic, baseline, and pessimistic scenarios. The weightings applied are subject to evaluation on a quarterly basis as part of the ACL’s governance process. During the first quarter of 2026, among the three scenarios evaluated to estimate the ACL, the baseline scenario was assigned the highest probability, followed by the pessimistic scenario, where weight was increased during 2025 in response to ongoing uncertainties. There were no changes to the probability weights during the second quarter of 2026. The following tables present the changes in the ACL of loans held-in-portfolio and unfunded commitments for the quarters and six months ended June 30, 2026 and 2025. 28 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **BPPR** _For the quarter ended June 30, 2026_ | (In thousands) | Beginning Balance | Provision forcredit losses(benefit) | Allowance forcredit losses - PCD Loans | Charge-offs | Recoveries | Ending Balance | | --- | --- | --- | --- | --- | --- | --- | | Allowance for credit losses - loans: | | | | | | | | Commercial | | | | | | | | Commercial multi-family | $4,704 | $(635) | $- | $- | $- | $4,069 | | Commercial real estate Non-owner occupied | 48,881 | (12,804) | - | (743) | 4,845 | 40,179 | | Commercial real estate Owner occupied | 35,403 | (1,917) | - | - | 2,063 | 35,549 | | Commercial and industrial | 179,980 | 60,213 | - | (74,749) | 1,343 | 166,787 | | Total Commercial | 268,968 | 44,857 | - | (75,492) | 8,251 | 246,584 | | Construction | 5,767 | (964) | - | - | - | 4,803 | | Mortgage | 73,761 | (8,187) | 2 | (28) | 4,950 | 70,498 | | Leasing | 18,588 | 879 | - | (3,342) | 1,502 | 17,627 | | Consumer | | | | | | | | Credit cards | 89,376 | 9,741 | - | (17,722) | 3,422 | 84,817 | | Home equity lines of credit | 67 | (59) | - | (29) | 73 | 52 | | Personal | 97,457 | 14,700 | - | (18,676) | 2,533 | 96,014 | | Auto | 170,544 | (193) | - | (12,772) | 6,964 | 164,543 | | Other | 7,707 | 964 | - | (1,563) | 241 | 7,349 | | Total Consumer | 365,151 | 25,153 | - | (50,762) | 13,233 | 352,775 | | Total - Loans | $732,235 | $61,738 | $2 | $(129,624) | $27,936 | $692,287 | | Allowance for credit losses - unfunded commitments: | | | | | | | | Commercial | $5,390 | $1,265 | $- | $- | $- | $6,655 | | Construction | 3,291 | (213) | - | - | - | 3,078 | | Ending balance - unfunded commitments [1] | $8,681 | $1,052 | $- | $- | $- | $9,733 | [1]Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. **Popular U.S.** _For the quarter ended June 30, 2026_ | (In thousands) | Beginning Balance | Provision forcredit losses(benefit) | Charge-offs | Recoveries | Ending Balance | | --- | --- | --- | --- | --- | --- | | Allowance for credit losses - loans: | | | | | | | Commercial | | | | | | | Commercial multi-family | $15,365 | $797 | $(1,312) | $- | $14,850 | | Commercial real estate Non-owner occupied | 15,265 | 366 | - | - | 15,631 | | Commercial real estate Owner occupied | 15,713 | 1,238 | - | 139 | 17,090 | | Commercial and industrial | 17,496 | 1,200 | (271) | 184 | 18,609 | | Total Commercial | 63,839 | 3,601 | (1,583) | 323 | 66,180 | | Construction | 9,393 | 164 | - | - | 9,557 | | Mortgage | 9,863 | (870) | (4) | 35 | 9,024 | | Consumer | | | | | | | Credit Cards | - | 1 | (1) | - | - | | Home equity lines of credit | 1,111 | 154 | - | 106 | 1,371 | | Personal | 7,282 | 359 | (1,565) | 332 | 6,408 | | Other | 6 | 7 | (13) | 5 | 5 | | Total Consumer | 8,399 | 521 | (1,579) | 443 | 7,784 | | Total - Loans | $91,494 | $3,416 | $(3,166) | $801 | $92,545 | | Allowance for credit losses - unfunded commitments: | | | | | | | Commercial | $1,802 | $234 | $- | $- | $2,036 | | Construction | 3,939 | (907) | - | - | 3,032 | | Consumer | 125 | 10 | - | - | 135 | | Ending balance - unfunded commitments [1] | $5,866 | $(663) | $- | $- | $5,203 | [1]Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. 29 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **Popular Inc.** _For the quarter ended June 30, 2026_ | (In thousands) | Beginning Balance | Provision forcredit losses(benefit) | Allowance forcredit losses - PCD Loans | Charge-offs | Recoveries | Ending Balance | | --- | --- | --- | --- | --- | --- | --- | | Allowance for credit losses - loans: | | | | | | | | Commercial | | | | | | | | Commercial multi-family | $20,069 | $162 | $- | $(1,312) | $- | $18,919 | | Commercial real estate Non-owner occupied | 64,146 | (12,438) | - | (743) | 4,845 | 55,810 | | Commercial real estate Owner occupied | 51,116 | (679) | - | - | 2,202 | 52,639 | | Commercial and industrial | 197,476 | 61,413 | - | (75,020) | 1,527 | 185,396 | | Total Commercial | 332,807 | 48,458 | - | (77,075) | 8,574 | 312,764 | | Construction | 15,160 | (800) | - | - | - | 14,360 | | Mortgage | 83,624 | (9,057) | 2 | (32) | 4,985 | 79,522 | | Leasing | 18,588 | 879 | - | (3,342) | 1,502 | 17,627 | | Consumer | | | | | | | | Credit cards | 89,376 | 9,742 | - | (17,723) | 3,422 | 84,817 | | Home equity lines of credit | 1,178 | 95 | - | (29) | 179 | 1,423 | | Personal | 104,739 | 15,059 | - | (20,241) | 2,865 | 102,422 | | Auto | 170,544 | (193) | - | (12,772) | 6,964 | 164,543 | | Other | 7,713 | 971 | - | (1,576) | 246 | 7,354 | | Total Consumer | 373,550 | 25,674 | - | (52,341) | 13,676 | 360,559 | | Total - Loans | $823,729 | $65,154 | $2 | $(132,790) | $28,737 | $784,832 | | Allowance for credit losses - unfunded commitments: | | | | | | | | Commercial | $7,192 | $1,499 | $- | $- | $- | $8,691 | | Construction | 7,230 | (1,120) | - | - | - | 6,110 | | Consumer | 125 | 10 | - | - | - | 135 | | Ending balance - unfunded commitments [1] | $14,547 | $389 | $- | $- | $- | $14,936 | [1]Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. **BPPR** _For the six months ended June 30, 2026_ | (In thousands) | Beginning Balance | Provision forcredit losses(benefit) | Allowance forcredit losses - PCD Loans | Charge-offs | Recoveries | Ending Balance | | --- | --- | --- | --- | --- | --- | --- | | Allowance for credit losses - loans: | | | | | | | | Commercial | | | | | | | | Commercial multi-family | $3,871 | $196 | $- | $- | $2 | $4,069 | | Commercial real estate Non-owner occupied | 44,149 | 3,043 | - | (11,874) | 4,861 | 40,179 | | Commercial real estate Owner occupied | 34,722 | (1,591) | - | (91) | 2,509 | 35,549 | | Commercial and industrial | 163,877 | 77,047 | - | (77,367) | 3,230 | 166,787 | | Total Commercial | 246,619 | 78,695 | - | (89,332) | 10,602 | 246,584 | | Construction | 4,488 | 304 | - | - | 11 | 4,803 | | Mortgage | 70,674 | (7,423) | 9 | (511) | 7,749 | 70,498 | | Leasing | 18,620 | 3,416 | - | (7,427) | 3,018 | 17,627 | | Consumer | | | | | | - | | Credit cards | 91,124 | 24,046 | - | (36,957) | 6,604 | 84,817 | | Home equity lines of credit | 58 | (141) | - | (29) | 164 | 52 | | Personal | 97,804 | 32,302 | - | (39,420) | 5,328 | 96,014 | | Auto | 180,364 | 2,813 | - | (33,922) | 15,288 | 164,543 | | Other | 8,169 | 1,024 | - | (2,310) | 466 | 7,349 | | Total Consumer | 377,519 | 60,044 | - | (112,638) | 27,850 | 352,775 | | Total - Loans | $717,920 | $135,036 | $9 | $(209,908) | $49,230 | $692,287 | | Allowance for credit losses - unfunded commitments: | | | | | | - | | Commercial | $5,993 | $662 | $- | $- | $- | $6,655 | | Construction | 2,570 | 508 | - | - | - | 3,078 | | Ending balance - unfunded commitments [1] | $8,563 | $1,170 | $- | $- | $- | $9,733 | [1]Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. 30 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **Popular U.S.** _For the six months ended June 30, 2026_ | (In thousands) | Beginning Balance | Provision forcredit losses(benefit) | Charge-offs | Recoveries | Ending Balance | | --- | --- | --- | --- | --- | --- | | Allowance for credit losses - loans: | | | | | | | Commercial | | | | | | | Commercial multi-family | $15,474 | $688 | $(1,312) | $- | $14,850 | | Commercial real estate Non-owner occupied | 14,568 | 1,063 | - | - | 15,631 | | Commercial real estate Owner occupied | 13,729 | 3,107 | - | 254 | 17,090 | | Commercial and industrial | 17,057 | 1,624 | (300) | 228 | 18,609 | | Total Commercial | 60,828 | 6,482 | (1,612) | 482 | 66,180 | | Construction | 9,338 | 219 | - | - | 9,557 | | Mortgage | 9,880 | (915) | (23) | 82 | 9,024 | | Consumer | | | | | | | Credit Cards | - | 1 | (1) | - | - | | Home equity lines of credit | 1,277 | (246) | - | 340 | 1,371 | | Personal | 8,808 | 255 | (3,383) | 728 | 6,408 | | Other | 5 | 11 | (26) | 15 | 5 | | Total Consumer | 10,090 | 21 | (3,410) | 1,083 | 7,784 | | Total - Loans | $90,136 | $5,807 | $(5,045) | $1,647 | $92,545 | | Allowance for credit losses - unfunded commitments: | | | | | | | Commercial | $1,570 | $466 | $- | $- | $2,036 | | Construction | 4,161 | (1,129) | - | - | 3,032 | | Consumer | 144 | (9) | - | - | 135 | | Ending balance - unfunded commitments [1] | $5,875 | $(672) | $- | $- | $5,203 | [1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. **Popular Inc.** _For the six months ended June 30, 2026_ | (In thousands) | Beginning Balance | Provision forcredit losses(benefit) | Allowance forcredit losses - PCD Loans | Charge-offs | Recoveries | Ending Balance | | --- | --- | --- | --- | --- | --- | --- | | Allowance for credit losses - loans: | | | | | | | | Commercial | | | | | | | | Commercial multi-family | $19,345 | $884 | $- | $(1,312) | $2 | $18,919 | | Commercial real estate Non-owner occupied | 58,717 | 4,106 | - | (11,874) | 4,861 | 55,810 | | Commercial real estate Owner occupied | 48,451 | 1,516 | - | (91) | 2,763 | 52,639 | | Commercial and industrial | 180,934 | 78,671 | - | (77,667) | 3,458 | 185,396 | | Total Commercial | 307,447 | 85,177 | - | (90,944) | 11,084 | 312,764 | | Construction | 13,826 | 523 | - | - | 11 | 14,360 | | Mortgage | 80,554 | (8,338) | 9 | (534) | 7,831 | 79,522 | | Leasing | 18,620 | 3,416 | - | (7,427) | 3,018 | 17,627 | | Consumer | | | | | | | | Credit cards | 91,124 | 24,047 | - | (36,958) | 6,604 | 84,817 | | Home equity lines of credit | 1,335 | (387) | - | (29) | 504 | 1,423 | | Personal | 106,612 | 32,557 | - | (42,803) | 6,056 | 102,422 | | Auto | 180,364 | 2,813 | - | (33,922) | 15,288 | 164,543 | | Other | 8,174 | 1,035 | - | (2,336) | 481 | 7,354 | | Total Consumer | 387,609 | 60,065 | - | (116,048) | 28,933 | 360,559 | | Total - Loans | $808,056 | $140,843 | $9 | $(214,953) | $50,877 | $784,832 | | Allowance for credit losses - unfunded commitments: | | | | | | | | Commercial | $7,563 | $1,128 | $- | $- | $- | $8,691 | | Construction | 6,731 | (621) | - | - | - | 6,110 | | Consumer | 144 | (9) | - | - | - | 135 | | Ending balance - unfunded commitments [1] | $14,438 | $498 | $- | $- | $- | $14,936 | [1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. 31 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **BPPR** _For the quarter ended June 30, 2025_ | (In thousands) | Beginning Balance | Provision forcredit losses(benefit) | Allowance for credit losses - PCD Loans | Charge-offs | Recoveries | Ending Balance | | --- | --- | --- | --- | --- | --- | --- | | Allowance for credit losses - loans: | | | | | | | | Commercial | | | | | | | | Commercial multi-family | $3,420 | $270 | $- | $- | $6 | $3,696 | | Commercial real estate Non-owner occupied | 42,848 | (160) | - | (21) | 472 | 43,139 | | Commercial real estate Owner occupied | 36,019 | (1,176) | - | (14) | 1,019 | 35,848 | | Commercial and industrial | 131,407 | (6,769) | - | (2,466) | 1,030 | 123,202 | | Total Commercial | 213,694 | (7,835) | - | (2,501) | 2,527 | 205,885 | | Construction | 2,719 | 356 | - | - | - | 3,075 | | Mortgage | 74,289 | (1,752) | - | (550) | 2,979 | 74,966 | | Leasing | 20,206 | 2,570 | - | (3,982) | 1,246 | 20,040 | | Consumer | | | | | | | | Credit cards | 96,523 | 13,094 | - | (20,011) | 2,700 | 92,306 | | Home equity lines of credit | 60 | (313) | - | - | 307 | 54 | | Personal | 89,786 | 18,881 | - | (19,553) | 3,777 | 92,891 | | Auto | 171,979 | 16,852 | - | (13,418) | 6,861 | 182,274 | | Other | 7,007 | 1,297 | - | (700) | 154 | 7,758 | | Total Consumer | 365,355 | 49,811 | - | (53,682) | 13,799 | 375,283 | | Total - Loans | $676,263 | $43,150 | $- | $(60,715) | $20,551 | $679,249 | | Allowance for credit losses - unfunded commitments: | | | | | | | | Commercial | $7,445 | $(1,569) | $- | $- | $- | $5,876 | | Construction | 1,560 | 309 | - | - | - | 1,869 | | Ending balance - unfunded commitments [1] | $9,005 | $(1,260) | $- | $- | $- | $7,745 | [1]Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. **Popular U.S.** _For the quarter ended June 30, 2025_ | (In thousands) | Beginning Balance | Provision forcredit losses(benefit) | Charge-offs | Recoveries | Ending Balance | | --- | --- | --- | --- | --- | --- | | Allowance for credit losses - loans: | | | | | | | Commercial | | | | | | | Commercial multi-family | $10,081 | $3,567 | $(563) | $- | $13,085 | | Commercial real estate Non-owner occupied | 15,453 | 525 | - | - | 15,978 | | Commercial real estate Owner occupied | 14,193 | (1,016) | (14) | 40 | 13,203 | | Commercial and industrial | 16,422 | 1,533 | (49) | 254 | 18,160 | | Total Commercial | 56,149 | 4,609 | (626) | 294 | 60,426 | | Construction | 6,793 | 711 | - | - | 7,504 | | Mortgage | 9,740 | 437 | - | 32 | 10,209 | | Consumer | | | | | | | Home equity lines of credit | 1,550 | (799) | (16) | 595 | 1,330 | | Personal | 11,651 | 1,417 | (2,920) | 615 | 10,763 | | Other | 2 | 14 | (13) | 1 | 4 | | Total Consumer | 13,203 | 632 | (2,949) | 1,211 | 12,097 | | Total - Loans | $85,885 | $6,389 | $(3,575) | $1,537 | $90,236 | | Allowance for credit losses - unfunded commitments: | | | | | | | Commercial | $1,630 | $305 | $- | $- | $1,935 | | Construction | 3,492 | (203) | - | - | 3,289 | | Consumer | 42 | 42 | - | - | 84 | | Ending balance - unfunded commitments [1] | $5,164 | $144 | $- | $- | $5,308 | [1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. 32 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **Popular Inc.** _For the quarter ended June 30, 2025_ | (In thousands) | Beginning Balance | Provision forcredit losses(benefit) | Allowance forcredit losses -PCD Loans | Charge-offs | Recoveries | Ending Balance | | --- | --- | --- | --- | --- | --- | --- | | Allowance for credit losses - loans: | | | | | | | | Commercial | | | | | | | | Commercial multi-family | $13,501 | $3,837 | $- | $(563) | $6 | $16,781 | | Commercial real estate Non-owner occupied | 58,301 | 365 | - | (21) | 472 | 59,117 | | Commercial real estate Owner occupied | 50,212 | (2,192) | - | (28) | 1,059 | 49,051 | | Commercial and industrial | 147,829 | (5,236) | - | (2,515) | 1,284 | 141,362 | | Total Commercial | 269,843 | (3,226) | - | (3,127) | 2,821 | 266,311 | | Construction | 9,512 | 1,067 | - | - | - | 10,579 | | Mortgage | 84,029 | (1,315) | - | (550) | 3,011 | 85,175 | | Leasing | 20,206 | 2,570 | - | (3,982) | 1,246 | 20,040 | | Consumer | | | | | | | | Credit cards | 96,523 | 13,094 | - | (20,011) | 2,700 | 92,306 | | Home equity lines of credit | 1,610 | (1,112) | - | (16) | 902 | 1,384 | | Personal | 101,437 | 20,298 | - | (22,473) | 4,392 | 103,654 | | Auto | 171,979 | 16,852 | - | (13,418) | 6,861 | 182,274 | | Other | 7,009 | 1,311 | - | (713) | 155 | 7,762 | | Total Consumer | 378,558 | 50,443 | - | (56,631) | 15,010 | 387,380 | | Total - Loans | $762,148 | $49,539 | $- | $(64,290) | $22,088 | $769,485 | | Allowance for credit losses - unfunded commitments: | | | | | | | | Commercial | $9,075 | $(1,264) | $- | $- | $- | $7,811 | | Construction | 5,052 | 106 | - | - | - | 5,158 | | Consumer | 42 | 42 | - | - | - | 84 | | Ending balance - unfunded commitments [1] | $14,169 | $(1,116) | $- | $- | $- | $13,053 | [1]Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. **BPPR** _For the six months ended June 30, 2025_ | (In thousands) | Beginning Balance | Provision forcredit losses(benefit) | Allowance forcredit losses - PCD Loans | Charge-offs | Recoveries | Ending Balance | | --- | --- | --- | --- | --- | --- | --- | | Allowance for credit losses - loans: | | | | | | | | Commercial | | | | | | | | Commercial multi-family | $2,783 | $905 | $- | $- | $8 | $3,696 | | Commercial real estate Non-owner occupied | 44,852 | (2,759) | - | (86) | 1,132 | 43,139 | | Commercial real estate Owner occupied | 37,355 | (2,918) | - | (103) | 1,514 | 35,848 | | Commercial and industrial | 130,136 | (7,026) | - | (5,778) | 5,870 | 123,202 | | Total Commercial | 215,126 | (11,798) | - | (5,967) | 8,524 | 205,885 | | Construction | 2,743 | 332 | - | - | - | 3,075 | | Mortgage | 72,901 | (2,870) | 9 | (985) | 5,911 | 74,966 | | Leasing | 16,419 | 9,629 | - | (8,526) | 2,518 | 20,040 | | Consumer | | | | | | | | Credit cards | 99,130 | 26,916 | - | (38,876) | 5,136 | 92,306 | | Home equity lines of credit | 54 | (421) | - | (25) | 446 | 54 | | Personal | 91,296 | 35,709 | - | (41,506) | 7,392 | 92,891 | | Auto | 165,995 | 36,323 | - | (34,474) | 14,430 | 182,274 | | Other | 7,002 | 2,020 | - | (1,580) | 316 | 7,758 | | Total Consumer | 363,477 | 100,547 | - | (116,461) | 27,720 | 375,283 | | Total - Loans | $670,666 | $95,840 | $9 | $(131,939) | $44,673 | $679,249 | | Allowance for credit losses - unfunded commitments: | | | | | | | | Commercial | $6,725 | $(849) | $- | $- | $- | $5,876 | | Construction | 1,663 | 206 | - | - | - | 1,869 | | Ending balance - unfunded commitments [1] | $8,388 | $(643) | $- | $- | $- | $7,745 | [1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. 33 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **Popular U.S.** _For the six months ended June 30, 2025_ | (In thousands) | Beginning Balance | Provision forcredit losses(benefit) | Charge-offs | Recoveries | Ending Balance | | --- | --- | --- | --- | --- | --- | | Allowance for credit losses - loans: | | | | | | | Commercial | | | | | | | Commercial multi-family | $6,453 | $7,194 | $(563) | $1 | $13,085 | | Commercial real estate Non-owner occupied | 9,642 | 6,336 | - | - | 15,978 | | Commercial real estate Owner occupied | 12,473 | 193 | (26) | 563 | 13,203 | | Commercial and industrial | 15,870 | 3,010 | (1,196) | 476 | 18,160 | | Total Commercial | 44,438 | 16,733 | (1,785) | 1,040 | 60,426 | | Construction | 8,521 | (1,017) | - | - | 7,504 | | Mortgage | 9,508 | 484 | - | 217 | 10,209 | | Consumer | | | | | | | Home equity lines of credit | 1,449 | (935) | (46) | 862 | 1,330 | | Personal | 11,440 | 3,617 | (5,546) | 1,252 | 10,763 | | Other | 2 | 35 | (42) | 9 | 4 | | Total Consumer | 12,891 | 2,717 | (5,634) | 2,123 | 12,097 | | Total - Loans | $75,358 | $18,917 | $(7,419) | $3,380 | $90,236 | | Allowance for credit losses - unfunded commitments: | | | | | | | Commercial | $1,662 | $273 | $- | $- | $1,935 | | Construction | 5,409 | (2,120) | - | - | 3,289 | | Consumer | 11 | 73 | - | - | 84 | | Ending balance - unfunded commitments [1] | $7,082 | $(1,774) | $- | $- | $5,308 | [1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. **Popular Inc.** _For the six months ended June 30, 2025_ | (In thousands) | Beginning Balance | Provision forcredit losses(benefit) | Allowance forcredit losses -PCD Loans | Charge-offs | Recoveries | Ending Balance | | --- | --- | --- | --- | --- | --- | --- | | Allowance for credit losses - loans: | | | | | | | | Commercial | | | | | | | | Commercial multi-family | $9,236 | $8,099 | $- | $(563) | $9 | $16,781 | | Commercial real estate Non-owner occupied | 54,494 | 3,577 | - | (86) | 1,132 | 59,117 | | Commercial real estate Owner occupied | 49,828 | (2,725) | - | (129) | 2,077 | 49,051 | | Commercial and industrial | 146,006 | (4,016) | - | (6,974) | 6,346 | 141,362 | | Total Commercial | 259,564 | 4,935 | - | (7,752) | 9,564 | 266,311 | | Construction | 11,264 | (685) | - | - | - | 10,579 | | Mortgage | 82,409 | (2,386) | 9 | (985) | 6,128 | 85,175 | | Leasing | 16,419 | 9,629 | - | (8,526) | 2,518 | 20,040 | | Consumer | | | | | | | | Credit cards | 99,130 | 26,916 | - | (38,876) | 5,136 | 92,306 | | Home equity lines of credit | 1,503 | (1,356) | - | (71) | 1,308 | 1,384 | | Personal | 102,736 | 39,326 | - | (47,052) | 8,644 | 103,654 | | Auto | 165,995 | 36,323 | - | (34,474) | 14,430 | 182,274 | | Other | 7,004 | 2,055 | - | (1,622) | 325 | 7,762 | | Total Consumer | 376,368 | 103,264 | - | (122,095) | 29,843 | 387,380 | | Total - Loans | $746,024 | $114,757 | $9 | $(139,358) | $48,053 | $769,485 | | Allowance for credit losses - unfunded commitments: | | | | | | | | Commercial | $8,387 | $(576) | $- | $- | $- | $7,811 | | Construction | 7,072 | (1,914) | - | - | - | 5,158 | | Consumer | 11 | 73 | - | - | - | 84 | | Ending balance - unfunded commitments [1] | $15,470 | $(2,417) | $- | $- | $- | $13,053 | [1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition. 34 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Modifications A modification constitutes a change in loan terms in the form of principal forgiveness, an interest rate reduction, other-than-insignificant payment delay, term extension or combination of the above made to a borrower experiencing financial difficulty. The amount of outstanding commitments to lend additional funds to debtors with financial difficulties owing receivables whose terms have been modified during the six months ended June 30, 2026 amounted to $85.6 million (during the year ended December 31, 2025 - $159.1 million), related to the commercial loan portfolios. The following tables show the amortized cost basis of the loans modified to borrowers experiencing financial difficulties at the end of the reporting period disaggregated by class of financing receivable and type of concession granted for the quarters and six months ended June 30, 2026 and 2025. Loans modified to borrowers experiencing financial difficulties that were fully paid down, charged-off or foreclosed upon by period end are not reported. 35 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Loan Modifications Made to Borrowers Experiencing Financial Difficulty for the quarter ended June 30, 2026 **Interest Rate Reduction** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June30, 2026 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June30, 2026 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June30, 2026 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | Commercial and industrial | $742 | 0.01% | $- | -% | $742 | 0.01% | | Mortgage | 148 | -% | $- | -% | 148 | -% | | Consumer: | | | | | | | | Credit cards | 222 | 0.02% | $- | -% | 222 | 0.02% | | Personal | 876 | 0.05% | - | -% | 876 | 0.04% | | Total | $1,988 | 0.01% | $- | -% | $1,988 | 0.01% | **Term Extension** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June30, 2026 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June30, 2026 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June30, 2026 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | CRE Non-owner occupied | $7,740 | 0.23% | $- | -% | $7,740 | 0.14% | | CRE Owner occupied | 1,453 | 0.13% | 1,397 | 0.07% | 2,850 | 0.09% | | Commercial and industrial | 2,654 | 0.04% | 699 | 0.03% | 3,353 | 0.04% | | Mortgage | 13,167 | 0.17% | 696 | 0.06% | 13,863 | 0.16% | | Consumer: | | | | | | | | Personal | 133 | 0.01% | - | - | 133 | 0.01% | | Auto | 77 | -% | - | -% | 77 | -% | | Total | $25,224 | 0.09% | $2,792 | 0.02% | $28,016 | 0.07% | **Other-Than-Insignificant Payment Delays** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June30, 2026 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June30, 2026 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June30, 2026 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | CRE Non-owner occupied | $269 | 0.01% | $- | -% | $269 | -% | | CRE Owner occupied | 7,202 | 0.62% | - | -% | 7,202 | 0.22% | | Commercial and industrial | 104,126 | 1.69% | - | -% | 104,126 | 1.19% | | Mortgage | 106 | -% | - | -% | 106 | -% | | Total | $111,703 | 0.40% | $- | -% | $111,703 | 0.28% | **Combination - Term Extension and Interest Rate Reduction** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June30, 2026 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June30, 2026 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June30, 2026 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | CRE Owner occupied | $33 | -% | $- | -% | $33 | -% | | Mortgage | 2,520 | 0.03% | 329 | 0.03% | 2,849 | 0.03% | | Consumer: | | | | | - | | | Personal | 2,372 | 0.13% | 7 | 0.01% | 2,379 | 0.12% | | Auto | 80 | -% | - | -% | 80 | -% | | Total | $5,005 | 0.02% | $336 | -% | $5,341 | 0.01% | **Combination - Other-Than-Insignificant Payment Delays and Interest Rate Reduction** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June30, 2026 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June30, 2026 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June30, 2026 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | Commercial and industrial | $878 | 0.01% | $- | -% | $878 | 0.01% | | Consumer: | | | | | - | | | Credit cards | 2,279 | 0.18% | $- | -% | 2,279 | 0.18% | | Total | $3,157 | 0.01% | $- | -% | $3,157 | 0.01% | 36 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Loan Modifications Made to Borrowers Experiencing Financial Difficulty for the six months ended June 30, 2026 **Interest Rate Reduction** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June 30,2026 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June 30,2026 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June 30,2026 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | Commercial and industrial | $1,461 | 0.02% | $- | -% | $1,461 | 0.02% | | Mortgage | 222 | -% | - | -% | 222 | -% | | Consumer: | | | | | | | | Credit cards | 287 | 0.02% | - | -% | 287 | 0.02% | | Personal | 1,400 | 0.07% | - | -% | 1,400 | 0.07% | | Total | $3,370 | 0.01% | $- | -% | $3,370 | 0.01% | **Term Extension** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June 30,2026 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June 30,2026 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June 30,2026 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | CRE Non-owner occupied | $9,567 | 0.29% | $- | -% | $9,567 | 0.17% | | CRE Owner occupied | 2,778 | 0.24% | 1,397 | 0.07% | 4,175 | 0.13% | | Commercial and industrial | 14,769 | 0.24% | 699 | 0.03% | 15,468 | 0.18% | | Mortgage | 19,454 | 0.26% | 696 | 0.06% | 20,150 | 0.23% | | Consumer: | | | | | - | | | Personal | 235 | 0.01% | - | -% | 235 | 0.01% | | Auto | 126 | -% | - | -% | 126 | -% | | Total | $46,929 | 0.17% | $2,792 | 0.02% | $49,721 | 0.13% | **Other-Than-Insignificant Payment Delays** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June 30,2026 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June 30,2026 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June 30,2026 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | CRE Non-owner occupied | $269 | 0.01% | $- | -% | $269 | -% | | CRE Owner occupied | 18,696 | 1.62% | - | -% | 18,696 | 0.57% | | Commercial and industrial | 220,804 | 3.58% | - | -% | 220,804 | 2.52% | | Mortgage | 106 | -% | - | -% | 106 | -% | | Total | $239,875 | 0.86% | $- | -% | $239,875 | 0.60% | **Combination - Term Extension and Interest Rate Reduction** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June 30,2026 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June 30,2026 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June 30,2026 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | CRE Owner occupied | $33 | -% | $- | -% | $33 | -% | | Commercial and industrial | 90 | -% | - | -% | 90 | -% | | Mortgage | 4,706 | 0.06% | 329 | 0.03% | 5,035 | 0.06% | | Consumer: | | | | | - | | | Personal | 4,993 | 0.26% | 18 | 0.03% | 5,011 | 0.26% | | Auto | 174 | -% | - | -% | 174 | -% | | Total | $9,996 | 0.04% | $347 | -% | $10,343 | 0.03% | 37 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **Combination - Other-Than-Insignificant Payment Delays and Interest Rate Reduction** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June 30,2026 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June 30,2026 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June 30,2026 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | Commercial and industrial | $1,047 | 0.02% | $- | -% | $1,047 | 0.01% | | Consumer: | | | | | - | | | Credit cards | 4,575 | 0.37% | - | -% | 4,575 | 0.37% | | Total | $5,622 | 0.02% | $- | -% | $5,622 | 0.01% | 38 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Loan Modifications Made to Borrowers Experiencing Financial Difficulty for the quarter ended June 30, 2025 **Interest Rate Reduction** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June 30,2025 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June 30,2025 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June 30,2025 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | Commercial and industrial | $837 | 0.01% | $- | -% | $837 | 0.01% | | Mortgage | 69 | -% | - | -% | 69 | -% | | Consumer: | | | | | - | | | Credit cards | 395 | 0.03% | - | -% | 395 | 0.03% | | Personal | 1,159 | 0.06% | - | -% | 1,159 | 0.06% | | Total | $2,460 | 0.01% | $- | -% | $2,460 | 0.01% | **Term Extension** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June 30,2025 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June 30,2025 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June 30,2025 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | CRE Non-owner occupied | $108 | -% | $58,652 | 2.68% | $58,760 | 1.06% | | CRE Owner occupied | 5,308 | 0.44% | - | -% | 5,308 | 0.18% | | Commercial and industrial | 5,693 | 0.10% | - | -% | 5,693 | 0.07% | | Mortgage | 12,983 | 0.18% | 665 | 0.05% | 13,648 | 0.16% | | Consumer: | | | | | - | | | Personal | 260 | 0.01% | 21 | 0.02% | 281 | 0.01% | | Auto | 49 | -% | - | -% | 49 | -% | | Total | $24,401 | 0.09% | $59,338 | 0.52% | $83,739 | 0.22% | **Other-Than-Insignificant Payment Delays** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June 30,2025 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June 30,2025 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June 30,2025 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | CRE Non-owner occupied | $4,436 | 0.13% | $- | -% | $4,436 | 0.08% | | CRE Owner occupied | 8,827 | 0.73% | - | -% | 8,827 | 0.29% | | Commercial and industrial | 166,870 | 2.98% | - | -% | 166,870 | 2.07% | | Mortgage | 420 | 0.01% | - | -% | 420 | -% | | Total | $180,553 | 0.67% | $- | -% | $180,553 | 0.47% | **Combination - Term Extension and Interest Rate Reduction** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June 30,2025 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June 30,2025 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June 30,2025 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | Commercial and industrial | $100 | -% | $- | -% | $100 | -% | | Mortgage | 3,936 | 0.06% | - | -% | 3,936 | 0.05% | | Consumer: | | | | | - | | | Personal | 3,429 | 0.19% | 73 | 0.09% | 3,502 | 0.19% | | Auto | 16 | -% | - | -% | 16 | -% | | Total | $7,481 | 0.03% | $73 | -% | $7,554 | 0.02% | **Combination - Other-Than-Insignificant Payment Delays and Interest Rate Reduction** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June 30,2025 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June 30,2025 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June 30,2025 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | Commercial and industrial | $310 | 0.01% | $- | -% | $310 | -% | | Consumer: | | | | | $- | | | Credit cards | 2,293 | 0.19% | - | -% | 2,293 | 0.19% | | Total | $2,603 | 0.01% | $- | -% | $2,603 | 0.01% | 39 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Loan Modifications Made to Borrowers Experiencing Financial Difficulty for the six months ended June 30, 2025 **Interest Rate Reduction** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June 30,2025 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June 30,2025 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June 30,2025 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | Commercial and industrial | $2,048 | 0.04% | $- | -% | $2,048 | 0.03% | | Mortgage | 69 | -% | - | -% | 69 | -% | | Consumer: | | | | | - | | | Credit cards | 542 | 0.04% | - | -% | 542 | 0.04% | | Personal | 2,280 | 0.13% | - | -% | 2,280 | 0.12% | | Other | 5 | -% | - | -% | 5 | -% | | Total | $4,944 | 0.02% | $- | -% | $4,944 | 0.01% | **Term Extension** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June 30,2025 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June 30,2025 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June 30,2025 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | CRE Non-owner occupied | $108 | -% | $58,652 | 2.68% | $58,760 | 1.06% | | CRE Owner occupied | 5,308 | 0.44% | - | -% | 5,308 | 0.18% | | Commercial and industrial | 11,271 | 0.20% | - | -% | 11,271 | 0.14% | | Mortgage | 22,922 | 0.32% | 665 | 0.05% | 23,587 | 0.28% | | Consumer: | | | | | - | | | Personal | 495 | 0.03% | 21 | 0.02% | 516 | 0.03% | | Auto | 87 | -% | - | -% | 87 | -% | | Total | $40,191 | 0.15% | $59,338 | 0.52% | $99,529 | 0.26% | **Other-Than-Insignificant Payment Delays** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June 30,2025 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June 30,2025 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June 30,2025 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | CRE Non-owner occupied | $4,436 | 0.13% | $- | -% | $4,436 | 0.08% | | CRE Owner occupied | 20,980 | 1.75% | - | -% | 20,980 | 0.70% | | Commercial and industrial | 177,506 | 3.17% | - | -% | 177,506 | 2.21% | | Mortgage | 420 | 0.01% | - | -% | 420 | -% | | Total | $203,342 | 0.76% | $- | -% | $203,342 | 0.53% | **Combination - Term Extension and Interest Rate Reduction** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June 30,2025 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June 30,2025 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June 30,2025 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | Commercial and industrial | $100 | -% | $- | -% | $100 | -% | | Mortgage | 7,061 | 0.10% | - | -% | 7,061 | 0.08% | | Consumer: | | | | | - | | | Personal | 6,534 | 0.36% | 114 | 0.14% | 6,648 | 0.35% | | Auto | 16 | -% | | | 16 | -% | | Total | $13,711 | 0.05% | $114 | -% | $13,825 | 0.04% | 40 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **Combination - Other-Than-Insignificant Payment Delays and Interest Rate Reduction** | (Dollars in thousands) | BPPR / Amortized Cost Basis at June 30,2025 | BPPR / % of total classof Financing Receivable | Popular U.S. / Amortized Cost Basis at June 30,2025 | Popular U.S. / % of total class of Financing Receivable | Popular, Inc. / Amortized Cost Basis at June 30,2025 | Popular, Inc. / % of total class of Financing Receivable | | --- | --- | --- | --- | --- | --- | --- | | Commercial and industrial | $861 | 0.02% | $- | - | $861 | 0.01% | | Consumer: | | | | | | | | Credit cards | 4,867 | 0.40% | - | - | 4,867 | 0.40% | | Total | $5,728 | 0.02% | $- | - | $5,728 | 0.02% | 41 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulties: For the quarter ended June 30, 2026 Interest rate reduction Loan Type Financial Effect CRE Owner occupied Reduced weighted-average contractual interest rate from 10.3% to 9.0%. Commercial and industrial Reduced weighted-average contractual interest rate from 18.9% to 8.4%. Mortgage Reduced weighted-average contractual interest rate from 7.1% to 5.6%. Consumer: Credit cards Reduced weighted-average contractual interest rate from 20.6% to 8.3%. Personal Reduced weighted-average contractual interest rate from 20.3% to 11.4%. Auto Reduced weighted-average contractual interest rate from 11.2% to 11.1%. Term Extension Loan Type Financial Effect CRE Non-owner occupied Added a weighted-average of 4 months to the life of loans. CRE Owner occupied Added a weighted-average of 8 months to the life of loans. Commercial and industrial Added a weighted-average of 5 months to the life of loans. Mortgage Added a weighted-average of 12 years to the life of loans. Consumer: Personal Added a weighted-average of 5 years to the life of loans. Auto Added a weighted-average of 21 months to the life of loans. Other than insignificant payment delays Loan Type Financial Effect CRE Non-owner occupied Added a weighted-average of 8 months to the life of loans. CRE Owner occupied Added a weighted-average of 11 months to the life of loans. Commercial and industrial Added a weighted-average of 16 months to the life of loans. Mortgage Added a weighted-average of 28 months to the life of loans. Consumer: Credit cards Added a weighted-average of 17 months to the life of loans. 42 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) For the six months ended June 30, 2026 Interest rate reduction Loan Type Financial Effect CRE Owner occupied Reduced weighted-average contractual interest rate from 10.3% to 9.0%. Commercial and industrial Reduced weighted-average contractual interest rate from 20.4% to 8.9%. Mortgage Reduced weighted-average contractual interest rate from 7.2% to 5.5%. Consumer: Credit cards Reduced weighted-average contractual interest rate from 20.9% to 8.6%. Personal Reduced weighted-average contractual interest rate from 20.1% to 11.7%. Auto Reduced weighted-average contractual interest rate from 10.0%% to 9.8%. Term extension Loan Type Financial Effect CRE Non-owner occupied Added a weighted-average of 6 months to the life of loans. CRE Owner occupied Added a weighted-average of 20 months to the life of loans. Commercial and industrial Added a weighted-average of 11 months to the life of loans. Mortgage Added a weighted-average of 13 years to the life of loans. Consumer: Personal Added a weighted-average of 4 years to the life of loans. Auto Added a weighted-average of 20 months to the life of loans. Other than insignificant payment delay Loan Type Financial Effect CRE Non-owner occupied Added a weighted-average of 8 months to the life of loans. CRE Owner occupied Added a weighted-average of 11 months to the life of loans. Commercial and industrial Added a weighted-average of 11 months to the life of loans. Mortgage Added a weighted-average of 28 months to the life of loans. Consumer: Credit cards Added a weighted-average of 17 months to the life of loans. 43 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) For the quarter ended June 30, 2025 Interest rate reduction Loan Type Financial Effect Commercial and industrial Reduced weighted-average contractual interest rate from 22.7% to 9.9%. Mortgage Reduced weighted-average contractual interest rate from 7.0% to 5.4%. Consumer: Credit cards Reduced weighted-average contractual interest rate from 20.8% to 7.9%. Personal Reduced weighted-average contractual interest rate from 20.9% to 11.1%. Other Reduced weighted-average contractual interest rate from 18.3% to 18.29%. Term extension Loan Type Financial Effect CRE Non-owner occupied Added a weighted-average of 2 years to the life of loans. CRE Owner occupied Added a weighted-average of 17 months to the life of loans. Commercial and industrial Added a weighted-average of 10 months to the life of loans. Mortgage Added a weighted-average of 12 years to the life of loans. Consumer: Personal Added a weighted-average of 5 years to the life of loans. Auto Added a weighted-average of 19 months to the life of loans. Other than insignificant payment delay Loan Type Financial Effect CRE Non-owner occupied Added a weighted-average of 13 months to the life of loans. CRE Owner occupied Added a weighted-average of 14 months to the life of loans. Commercial and industrial Added a weighted-average of 11 months to the life of loans. Mortgage Added a weighted-average of 20 months to the life of loans. Consumer: Credit cards Added a weighted-average of 17 months to the life of loans. 44 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) For the six months ended June 30, 2025 Interest rate reduction Loan Type Financial Effect Commercial and industrial Reduced weighted-average contractual interest rate from 24.3% to 9.7%. Mortgage Reduced weighted-average contractual interest rate from 6.8% to 5.5%. Consumer: Credit cards Reduced weighted-average contractual interest rate from 21.0% to 8.2%. Personal Reduced weighted-average contractual interest rate from 21.3% to 11.5%. Auto Reduced weighted-average contractual interest rate from 18.30% to 18.29%. Other Reduced weighted-average contractual interest rate from 18.0% to 0.0%. Term extension Loan Type Financial Effect CRE Non-owner occupied Added a weighted-average of 2 years to the life of loans. CRE Owner occupied Added a weighted-average of 17 months to the life of loans. Commercial and industrial Added a weighted-average of 17 months to the life of loans. Mortgage Added a weighted-average of 13 years to the life of loans. Consumer: Personal Added a weighted-average of 5 years to the life of loans. Auto Added a weighted-average of 2 years to the life of loans. Other than insignificant payment delay Loan Type Financial Effect CRE Non-owner occupied Added a weighted-average of 13 months to the life of loans. CRE Owner occupied Added a weighted-average of 10 months to the life of loans. Commercial and industrial Added a weighted-average of 11 months to the life of loans. Mortgage Added a weighted-average of 20 months to the life of loans. Consumer: Credit cards Added a weighted-average of 18 months to the life of loans. 45 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) The following tables present, by class, the performance of loans that have been modified during the twelve months preceding June 30, 2026. The past due 90 days or more categories include all loans modified classified as non-accruing at the time of the modification. These loans will continue in non-accrual status, and presented as past due 90 days or more, until the borrower has demonstrated a willingness and ability to make the restructured loan payments (at least six months of sustained performance after the modification or one year for loans providing for quarterly or semi-annual payments) and management has concluded that it is probable that the borrower would not be in payment default in the foreseeable future. **BPPR** _June 30, 2026_ | Line item | Past due 90 | | Past Due 90 days or more [1] / With Payment | Past Due 90 days or more [1] / Without | | --- | --- | --- | --- | --- | | (In thousands) | days or more | Total | Default | Payment Default | | CRE Non-owner occupied | 2,359 | 11,717 | 99 | 2,260 | | CRE Owner occupied | 2,001 | 36,253 | 162 | 1,839 | | Commercial and industrial | 127,972 | 287,815 | 81,483 | 46,489 | | Mortgage | 19,131 | 49,535 | 5,351 | 13,780 | | Consumer: | | | | | | Credit cards | 1,150 | 9,159 | 869 | 281 | | Personal | 1,081 | 13,503 | 197 | 884 | | Auto | - | 545 | - | - | | Total | $153,694 | $408,527 | $88,161 | $65,533 | [1] Loans that were in non-accrual status at the time of modification are presented as past due until the borrower has demonstrated a willingness and ability to make the restructured loan payments. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or charged-off, whichever occurs first. The recorded investment as of period end is inclusive of all partial paydowns and charge-offs since the modification date. Loans modified with financial difficulty that were fully paid down, charged-off or foreclosed upon by period end are not reported. **Popular U.S.** _June 30, 2026_ | Line item | Past due 90 | | Past Due 90 days or more [1] / With Payment | Past Due 90 days or more [1] / Without | | --- | --- | --- | --- | --- | | (In thousands) | days or more | Total | Default | Payment Default | | CRE Owner occupied | - | 1,397 | - | - | | Commercial and industrial | - | 698 | - | - | | Mortgage | - | 1,487 | - | - | | Consumer: | | | | | | Personal | - | 46 | - | - | | Total | $- | $3,628 | $- | $- | [1] Loans that were in non-accrual status at the time of modification are presented as past due until the borrower has demonstrated a willingness and ability to make the restructured loan payments. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or charged-off, whichever occurs first. The recorded investment as of period end is inclusive of all partial paydowns and charge-offs since the modification date. Loans modified with financial difficulty that were fully paid down, charged-off or foreclosed upon by period end are not reported. **Popular Inc** _June 30, 2026_ | Line item | Past due 90 | | Past Due 90 days or more [1] / With Payment | Past Due 90 days or more [1] / Without | | --- | --- | --- | --- | --- | | (In thousands) | days or more | Total | Default | Payment Default | | CRE Non-owner occupied | 2,359 | 11,717 | 99 | 2,260 | | CRE Owner occupied | 2,001 | 37,650 | 162 | 1,839 | | Commercial and industrial | 127,972 | 288,513 | 81,483 | 46,489 | | Mortgage | 19,131 | 51,022 | 5,351 | 13,780 | | Consumer: | | | | | | Credit cards | 1,150 | 9,159 | 869 | 281 | | Personal | 1,081 | 13,549 | 197 | 884 | | Auto | - | 545 | - | - | | Total | $153,694 | $412,155 | $88,161 | $65,533 | [1] Loans that were in non-accrual status at the time of modification are presented as past due until the borrower has demonstrated a willingness and ability to make the restructured loan payments. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or charged-off, whichever occurs first. The recorded investment as of period end is inclusive of all partial paydowns and charge-offs since the modification date. Loans modified with financial difficulty that were fully paid down, charged-off or foreclosed upon by period end are not reported. 46 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) The following tables present, by class, the performance of loans that have been modified during the twelve months preceding June 30, 2025. **BPPR** _June 30, 2025_ | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | Past Due 90 days or more [1] | | | (In thousands) | 30-59 days | 60-89 days | Past due 90days or more | Total pastdue | Current | Total | With PaymentDefault | WithoutPayment Default | | CRE Non-owner occupied | $- | $- | $556 | $556 | $4,536 | $5,092 | $448 | $108 | | CRE Owner occupied | 386 | - | 2,583 | 2,969 | 43,635 | 46,604 | 429 | 2,154 | | Commercial and industrial | 291 | 92 | 2,325 | 2,708 | 215,888 | 218,596 | 387 | 1,938 | | Mortgage | 5,765 | 2,431 | 18,854 | 27,050 | 31,215 | 58,265 | 4,876 | 13,978 | | Consumer: | | | | | | | | | | Credit cards | 729 | 539 | 1,153 | 2,421 | 5,851 | 8,272 | 882 | 271 | | Personal | 631 | 300 | 2,365 | 3,296 | 13,243 | 16,539 | 281 | 2,084 | | Auto | - | - | - | - | 135 | 135 | - | - | | Other | - | - | - | - | 5 | 5 | - | - | | Total | $7,802 | $3,362 | $27,836 | $39,000 | $314,508 | $353,508 | $7,303 | $20,533 | [1] Loans that were in non-accrual status at the time of modification are presented as past due until the borrower has demonstrated a willingness and ability to make the restructured loan payments. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or charged-off, whichever occurs first. The recorded investment as of period end is inclusive of all partial paydowns and charge-offs since the modification date. Loans modified with financial difficulty that were fully paid down, charged-off or foreclosed upon by period end are not reported. **Popular U.S.** _June 30, 2025_ | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | Past Due 90 days or more [1] | | | (In thousands) | 30-59 days | 60-89 days | Past due 90days or more | Total pastdue | Current | Total | With Payment Default | WithoutPayment Default | | Commercial multi-family | $- | $- | $- | $- | $5,791 | $5,791 | $- | $- | | CRE Owner occupied | - | - | - | - | 58,652 | 58,652 | - | - | | Commercial and industrial | - | - | - | - | 609 | 609 | - | - | | Mortgage | - | - | - | - | 1,481 | 1,481 | - | - | | Consumer: | | | | | | | | - | | Personal | 17 | - | - | 17 | 208 | 225 | - | - | | Total | $17 | $- | $- | $17 | $66,741 | $66,758 | $- | $- | [1] Loans that were in non-accrual status at the time of modification are presented as past due until the borrower has demonstrated a willingness and ability to make the restructured loan payments. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or charged-off, whichever occurs first. The recorded investment as of period end is inclusive of all partial paydowns and charge-offs since the modification date. Loans modified with financial difficulty that were fully paid down, charged-off or foreclosed upon by period end are not reported. **Popular Inc.** _June 30, 2025_ | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | Past Due 90 days or more [1] | | | (In thousands) | 30-59 days | 60-89 days | Past due 90days or more | Total pastdue | Current | Total | With PaymentDefault | WithoutPayment Default | | Commercial multi-family | $- | $- | $- | $- | $5,791 | $5,791 | $- | $- | | CRE Non-owner occupied | - | - | 556 | 556 | 63,188 | 63,744 | 448 | 108 | | CRE Owner occupied | 386 | - | 2,583 | 2,969 | 43,635 | 46,604 | 429 | 2,154 | | Commercial and industrial | 291 | 92 | 2,325 | 2,708 | 216,497 | 219,205 | 387 | 1,938 | | Mortgage | 5,765 | 2,431 | 18,854 | 27,050 | 32,696 | 59,746 | 4,876 | 13,978 | | Consumer: | | | | | | | | - | | Credit cards | 729 | 539 | 1,153 | 2,421 | 5,851 | 8,272 | 882 | 271 | | Personal | 648 | 300 | 2,365 | 3,313 | 13,451 | 16,764 | 281 | 2,084 | | Auto | - | - | - | - | 135 | 135 | - | - | | Other | - | - | - | - | 5 | 5 | - | - | | Total | $7,819 | $3,362 | $27,836 | $39,017 | $381,249 | $420,266 | $7,303 | $20,533 | [1] Loans that were in non-accrual status at the time of modification are presented as past due until the borrower has demonstrated a willingness and ability to make the restructured loan payments. Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or charged-off, whichever occurs first. The recorded investment as of period end is inclusive of all partial paydowns and charge-offs since the modification date. Loans modified with financial difficulty that were fully paid down, charged-off or foreclosed upon by period end are not reported. 47 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Payment default is defined as a restructured loan becoming 90 days past due after being modified, foreclosed or charged-off, whichever occurs first. The following tables provide the outstanding balance of loans modified for borrowers under financial difficulties that were subject to payment default and that had been modified during the twelve months prior to default. _Amortized Cost Basis of Modified Financing Receivables That Subsequently Defaulted During the Quarter Ended June 30, 2026_ | (In thousands) | Interest Rate Reduction | Term Extension | Other-Than-Insignificant Payment Delays | Combination - Term Extension and Interest Rate Reduction | Combination - Other- Than-Insignificant Payment Delays and Interest Rate Reduction | Total | | --- | --- | --- | --- | --- | --- | --- | | CRE Non-owner occupied | - | - | 99 | - | - | 99 | | CRE Owner occupied | - | - | 162 | - | - | 162 | | Commercial and industrial | 14 | 46 | 81,368 | 95 | 148 | 81,671 | | Mortgage | - | 4,386 | - | 186 | - | 4,572 | | Consumer: | | | | | | | | Credit cards | 120 | - | - | - | 951 | 1,071 | | Personal | 71 | - | - | 206 | - | 277 | | Total | $205 | $4,432 | $81,629 | $487 | $1,099 | $87,852 | _Amortized Cost Basis of Modified Financing Receivables That Subsequently Defaulted During the Six Months Ended June 30, 2026_ | (In thousands) | Interest Rate Reduction | Term Extension | Other-Than-Insignificant Payment Delays | Combination - Term Extension and Interest Rate Reduction | Combination - Other- Than-Insignificant Payment Delays and Interest Rate Reduction | Total | | --- | --- | --- | --- | --- | --- | --- | | CRE Non-owner occupied | - | - | 99 | - | - | 99 | | CRE Owner occupied | - | - | 162 | - | - | 162 | | Commercial and industrial | 14 | 51 | 81,368 | 95 | 226 | 81,754 | | Mortgage | - | 9,513 | 109 | 791 | - | 10,413 | | Consumer: | | | | | | | | Credit cards | 121 | - | - | - | 1,334 | 1,455 | | Personal | 98 | - | - | 356 | - | 454 | | Total | $233 | $9,564 | $81,738 | $1,242 | $1,560 | $94,337 | _Amortized Cost Basis of Modified Financing Receivables That Subsequently Defaulted During the Quarter Ended June 30, 2025_ | (In thousands) | Interest Rate Reduction | Term Extension | Other-Than-Insignificant Payment Delays | Combination - Term Extension and Interest Rate Reduction | Combination - Other- Than-Insignificant Payment Delays and Interest Rate Reduction | Total | | --- | --- | --- | --- | --- | --- | --- | | CRE Non-owner occupied | $- | $- | $448 | $- | $- | $448 | | CRE Owner occupied | - | - | 254 | - | - | 254 | | Commercial and industrial | 70 | - | - | - | 318 | 388 | | Mortgage | - | 4,478 | - | 1,256 | - | 5,734 | | Consumer: | | | | | | | | Credit cards | 172 | - | - | - | 771 | 943 | | Personal | 127 | 105 | - | 139 | - | 371 | | Total | $369 | $4,583 | $702 | $1,395 | $1,089 | $8,138 | 48 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _Amortized Cost Basis of Modified Financing Receivables That Subsequently Defaulted During the Six Months Ended June 30, 2025_ | (In thousands) | Interest Rate Reduction | Term Extension | Other-Than-Insignificant Payment Delays | Combination - Term Extension and Interest Rate Reduction | Combination - Other- Than-Insignificant Payment Delays and Interest Rate Reduction | Total | | --- | --- | --- | --- | --- | --- | --- | | CRE Non-owner occupied | $- | $- | $448 | $- | $- | $448 | | CRE Owner occupied | - | 88 | 429 | - | - | 517 | | Commercial and industrial | 99 | - | 30 | - | 395 | 524 | | Mortgage | - | 8,129 | - | 1,411 | - | 9,540 | | Consumer: | | | | | | | | Credit cards | 290 | - | - | - | 983 | 1,273 | | Personal | 143 | 105 | - | 147 | - | 395 | | Total | $532 | $8,322 | $907 | $1,558 | $1,378 | $12,697 | Credit Quality The risk rating system provides for the assignment of ratings at the obligor level based on the financial condition of the borrower. The risk rating analysis process is performed at least once a year or more frequently if events or conditions change which may deteriorate the credit quality. In the case of consumer and mortgage loans, these loans are classified considering their delinquency status at the end of the reporting period. The following tables present the amortized cost basis, net of unearned income, of loans held-in-portfolio based on the Corporation’s assignment of obligor risk ratings as defined at June 30, 2026 and December 31, 2025 and the gross write-offs recorded by vintage year. For the definitions of the obligor risk ratings, refer to the Credit Quality section of Note 8 to the Consolidated Financial Statements included in the 2025 Form 10-K: 49 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _June 30, 2026_ | (In thousands) | Term Loans Amortized Cost Basis by Origination Year / 2026 | Term Loans Amortized Cost Basis by Origination Year / 2025 | Term Loans Amortized Cost Basis by Origination Year / 2024 | Term Loans Amortized Cost Basis by Origination Year / 2023 | Term Loans Amortized Cost Basis by Origination Year / 2022 | Term Loans Amortized Cost Basis by Origination Year / Prior Years | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | BPPR | | | | | | | | | | | Commercial: | | | | | | | | | | | Commercial multi-family | | | | | | | | | | | Pass | $46,794 | $10,903 | $32,123 | $36,492 | $129,945 | $65,162 | $- | $- | $321,419 | | Watch | - | - | 15,620 | - | 514 | 4,117 | - | - | 20,251 | | Special Mention | 151 | 218 | - | - | - | 187 | - | - | 556 | | Substandard | - | - | - | - | - | 3,733 | - | - | 3,733 | | Total commercial multi-family | $46,945 | $11,121 | $47,743 | $36,492 | $130,459 | $73,199 | $- | $- | $345,959 | | Commercial real estate non-owner occupied | | | | | | | | | | | Pass | $110,185 | $438,963 | $415,760 | $247,109 | $754,226 | $1,079,537 | $10,471 | $- | $3,056,251 | | Watch | 20,857 | 22,246 | 5,320 | 40,637 | 2,840 | 74,966 | 1,264 | - | 168,130 | | Special Mention | - | 2,182 | - | 864 | 138 | 40,433 | - | - | 43,617 | | Substandard | 285 | - | 721 | 8,337 | 17,340 | 26,174 | 240 | - | 53,097 | | Total commercial real estate non-owner occupied | $131,327 | $463,391 | $421,801 | $296,947 | $774,544 | $1,221,110 | $11,975 | $- | $3,321,095 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $11,131 | $743 | $- | $- | $11,874 | | Commercial real estate owner occupied | | | | | | | | | | | Pass | $93,386 | $155,620 | $112,479 | $46,443 | $67,391 | $374,339 | $3,851 | $- | $853,509 | | Watch | 955 | 6,135 | 23,460 | 6,576 | 33,902 | 87,268 | 1,200 | - | 159,496 | | Special Mention | 1,165 | - | 2,807 | 1,325 | 3,508 | 13,540 | 1,500 | - | 23,845 | | Substandard | 6,438 | 9,896 | 1,855 | 1,798 | 18,074 | 79,954 | 1,464 | - | 119,479 | | Doubtful | - | 71 | - | - | 220 | 61 | - | - | 352 | | Total commercial real estate owner occupied | $101,944 | $171,722 | $140,601 | $56,142 | $123,095 | $555,162 | $8,015 | $- | $1,156,681 | | Year-to-Date gross write-offs | $1 | $- | $- | $- | $- | $90 | $- | $- | $91 | | Commercial and industrial | | | | | | | | | | | Pass | $833,415 | $1,257,835 | $567,707 | $390,120 | $391,512 | $484,216 | $1,390,944 | $- | $5,315,749 | | Watch | 15,541 | 41,381 | 90,813 | 17,181 | 31,572 | 15,776 | 201,104 | - | 413,368 | | Special Mention | 2,933 | 17,628 | 29,036 | 1,103 | 1,749 | 2,234 | 17,634 | - | 72,317 | | Substandard | 9,646 | 37,287 | 7,435 | 54,186 | 88,617 | 17,179 | 147,284 | - | 361,634 | | Total commercial and industrial | $861,535 | $1,354,131 | $694,991 | $462,590 | $513,450 | $519,405 | $1,756,966 | $- | $6,163,068 | | Year-to-Date gross write-offs | $637 | $532 | $677 | $207 | $32 | $71,350 | $3,932 | $- | $77,367 | | Construction | | | | | | | | | | | Pass | $10,894 | $40,870 | $128,453 | $54,747 | $- | $11,747 | $94,267 | $- | $340,978 | | Watch | - | 2,006 | 47,633 | 31,122 | 4,315 | - | (204) | - | 84,872 | | Total construction | $10,894 | $42,876 | $176,086 | $85,869 | $4,315 | $11,747 | $94,063 | $- | $425,850 | | Mortgage | | | | | | | | | | | Pass | $430,389 | $995,416 | $843,681 | $651,505 | $371,625 | $4,167,857 | $- | $- | $7,460,473 | | Substandard | - | 178 | 1,150 | 3,096 | 2,844 | 61,809 | - | - | 69,077 | | Total mortgage | $430,389 | $995,594 | $844,831 | $654,601 | $374,469 | $4,229,666 | $- | $- | $7,529,550 | | Year-to-Date gross write-offs | $- | $4 | $- | $- | $- | $507 | $- | $- | $511 | 50 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _June 30, 2026_ | (In thousands) | Term Loans Amortized Cost Basis by Origination Year / 2026 | Term Loans Amortized Cost Basis by Origination Year / 2025 | Term Loans Amortized Cost Basis by Origination Year / 2024 | Term Loans Amortized Cost Basis by Origination Year / 2023 | Term Loans Amortized Cost Basis by Origination Year / 2022 | Term Loans Amortized Cost Basis by Origination Year / Prior Years | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | BPPR | | | | | | | | | | | Leasing | | | | | | | | | | | Pass | $348,900 | $561,420 | $460,808 | $296,553 | $200,206 | $92,965 | $- | $- | $1,960,852 | | Substandard | 100 | 718 | 1,806 | 1,701 | 1,934 | 924 | - | - | 7,183 | | Total leasing | $349,000 | $562,138 | $462,614 | $298,254 | $202,140 | $93,889 | $- | $- | $1,968,035 | | Year-to-Date gross write-offs | $84 | $1,789 | $1,935 | $1,749 | $1,408 | $462 | $- | $- | $7,427 | | Consumer: | | | | | | | | | | | Credit cards | | | | | | | | | | | Pass | $- | $- | $- | $- | $- | $- | $1,214,642 | $- | $1,214,642 | | Substandard | - | - | - | - | - | - | 23,355 | - | 23,355 | | Loss | - | - | - | - | - | - | 13 | - | 13 | | Total credit cards | $- | $- | $- | $- | $- | $- | $1,238,010 | $- | $1,238,010 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $- | $36,957 | $- | $36,957 | | HELOCs | | | | | | | | | | | Pass | $- | $- | $- | $- | $- | $- | $1,852 | $- | $1,852 | | Total HELOCs | $- | $- | $- | $- | $- | $- | $1,852 | $- | $1,852 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $- | $29 | $- | $29 | | Personal | | | | | | | | | | | Pass | $493,599 | $665,081 | $305,603 | $189,902 | $92,698 | $100,307 | $- | $31,586 | $1,878,776 | | Substandard | 39 | 2,633 | 2,786 | 2,219 | 1,180 | 6,149 | - | 1,793 | 16,799 | | Loss | - | 76 | 132 | 96 | 51 | 44 | - | 45 | 444 | | Total Personal | $493,638 | $667,790 | $308,521 | $192,217 | $93,929 | $106,500 | $- | $33,424 | $1,896,019 | | Year-to-Date gross write-offs | $60 | $8,086 | $8,877 | $8,859 | $3,879 | $8,047 | $- | $1,612 | $39,420 | | Auto | | | | | | | | | | | Pass | $570,260 | $1,021,269 | $865,716 | $594,559 | $377,339 | $297,223 | $- | $- | $3,726,366 | | Substandard | 368 | 6,376 | 11,005 | 9,064 | 6,953 | 6,489 | - | - | 40,255 | | Loss | - | - | 12 | - | 11 | 4 | - | - | 27 | | Total Auto | $570,628 | $1,027,645 | $876,733 | $603,623 | $384,303 | $303,716 | $- | $- | $3,766,648 | | Year-to-Date gross write-offs | $603 | $9,305 | $11,182 | $8,032 | $3,535 | $1,265 | $- | $- | $33,922 | | Other consumer | | | | | | | | | | | Pass | $14,468 | $30,799 | $18,708 | $14,362 | $13,833 | $4,231 | $63,788 | $- | $160,189 | | Substandard | - | - | 9 | 2,208 | 29 | 133 | 325 | - | 2,704 | | Loss | - | - | - | - | 478 | 698 | - | - | 1,176 | | Total Other | $14,468 | $30,799 | $18,717 | $16,570 | $14,340 | $5,062 | $64,113 | $- | $164,069 | | Year-to-Date gross write-offs | $5 | $204 | $78 | $99 | $750 | $1,174 | $- | $- | $2,310 | | Total BPPR | $3,010,768 | $5,327,207 | $3,992,638 | $2,703,305 | $2,615,044 | $7,119,456 | $3,174,994 | $33,424 | $27,976,836 | 51 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _June 30, 2026_ | (In thousands) | Term Loans Amortized Cost Basis by Origination Year / 2026 | Term Loans Amortized Cost Basis by Origination Year / 2025 | Term Loans Amortized Cost Basis by Origination Year / 2024 | Term Loans Amortized Cost Basis by Origination Year / 2023 | Term Loans Amortized Cost Basis by Origination Year / 2022 | Term Loans Amortized Cost Basis by Origination Year / Prior Years | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Popular U.S. | | | | | | | | | | | Commercial: | | | | | | | | | | | Commercial multi-family | | | | | | | | | | | Pass | $116,473 | $349,918 | $135,871 | $118,088 | $375,232 | $697,833 | $10,382 | $- | $1,803,797 | | Watch | - | - | 3,362 | 20,301 | 68,195 | 128,590 | - | - | 220,448 | | Special Mention | - | - | - | 2,367 | 792 | 2,041 | - | - | 5,200 | | Substandard | - | - | - | 1,767 | - | 22,253 | - | - | 24,020 | | Total commercial multi-family | $116,473 | $349,918 | $139,233 | $142,523 | $444,219 | $850,717 | $10,382 | $- | $2,053,465 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $1,312 | $- | $- | $1,312 | | Commercial real estate non-owner occupied | | | | | | | | | | | Pass | $228,594 | $227,975 | $99,780 | $326,105 | $423,793 | $715,031 | $82,643 | $- | $2,103,921 | | Watch | - | - | - | 5,280 | 14,926 | 44,353 | - | - | 64,559 | | Special Mention | - | - | - | - | - | 1,874 | - | - | 1,874 | | Substandard | - | 278 | 3,236 | - | 6,792 | 119,120 | - | - | 129,426 | | Total commercial real estate non-owner occupied | $228,594 | $228,253 | $103,016 | $331,385 | $445,511 | $880,378 | $82,643 | $- | $2,299,780 | | Commercial real estate owner occupied | | | | | | | | | | | Pass | $392,667 | $552,975 | $213,412 | $144,436 | $184,942 | $346,123 | $6,286 | $- | $1,840,841 | | Watch | 3,600 | 1,767 | 29,615 | 50,989 | 25,045 | 40,767 | 500 | - | 152,283 | | Special Mention | - | - | 17,655 | - | - | 16,405 | - | - | 34,060 | | Substandard | - | 8,376 | 3,181 | - | 1,908 | 59,372 | - | - | 72,837 | | Total commercial real estate owner occupied | $396,267 | $563,118 | $263,863 | $195,425 | $211,895 | $462,667 | $6,786 | $- | $2,100,021 | | Commercial and industrial | | | | | | | | | | | Pass | $44,505 | $317,273 | $360,230 | $237,935 | $268,559 | $759,633 | $356,445 | $- | $2,344,580 | | Watch | 1,490 | 159 | 4,549 | 28,295 | 50,474 | 131,662 | 28,751 | - | 245,380 | | Special Mention | - | - | - | 5,342 | 698 | 289 | 5 | - | 6,334 | | Substandard | 1,021 | - | 5,256 | 1,115 | 3,665 | 1,372 | 2,293 | - | 14,722 | | Total commercial and industrial | $47,016 | $317,432 | $370,035 | $272,687 | $323,396 | $892,956 | $387,494 | $- | $2,611,016 | | Year-to-Date gross write-offs | $- | $- | $- | $258 | $- | $2 | $40 | $- | $300 | | Construction | | | | | | | | | | | Pass | $156,957 | $423,431 | $374,817 | $178,279 | $60,026 | $- | $12,490 | $- | $1,206,000 | | Watch | - | 13,621 | 15,725 | 27,844 | 26,748 | - | - | - | 83,938 | | Substandard | - | - | 7,684 | - | 8,603 | - | - | - | 16,287 | | Total construction | $156,957 | $437,052 | $398,226 | $206,123 | $95,377 | $- | $12,490 | $- | $1,306,225 | | Mortgage | | | | | | | | | | | Pass | $2,458 | $93,331 | $71,055 | $77,077 | $201,560 | $795,070 | $- | $- | $1,240,551 | | Substandard | - | - | - | 644 | - | 9,589 | - | - | 10,233 | | Total mortgage | $2,458 | $93,331 | $71,055 | $77,721 | $201,560 | $804,659 | $- | $- | $1,250,784 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $23 | $- | $- | $23 | 52 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _June 30, 2026_ | (In thousands) | Term Loans Amortized Cost Basis by Origination Year / 2026 | Term Loans Amortized Cost Basis by Origination Year / 2025 | Term Loans Amortized Cost Basis by Origination Year / 2024 | Term Loans Amortized Cost Basis by Origination Year / 2023 | Term Loans Amortized Cost Basis by Origination Year / 2022 | Term Loans Amortized Cost Basis by Origination Year / Prior Years | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Popular U.S. | | | | | | | | | | | Consumer: | | | | | | | | | | | Credit cards | | | | | | | | | | | Pass | $- | $- | $- | $- | $- | $- | $(13) | $- | $(13) | | Total credit cards | $- | $- | $- | $- | $- | $- | $(13) | $- | $(13) | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $- | $1 | $- | $1 | | HELOCs | | | | | | | | | | | Pass | $- | $- | $- | $- | $- | $4,664 | $67,087 | $8,434 | $80,185 | | Substandard | - | - | - | - | - | 1,168 | 10 | 1,398 | 2,576 | | Loss | - | - | - | - | - | 39 | - | 705 | 744 | | Total HELOCs | $- | $- | $- | $- | $- | $5,871 | $67,097 | $10,537 | $83,505 | | Personal | | | | | | | | | | | Pass | $7,594 | $14,376 | $13,961 | $8,551 | $9,095 | $2,378 | $- | $- | $55,955 | | Substandard | 30 | 185 | 42 | 151 | 95 | 248 | - | - | 751 | | Total Personal | $7,624 | $14,561 | $14,003 | $8,702 | $9,190 | $2,626 | $- | $- | $56,706 | | Year-to-Date gross write-offs | $30 | $518 | $1,053 | $837 | $339 | $606 | $- | $- | $3,383 | | Other consumer | | | | | | | | | | | Pass | $- | $- | $- | $- | $- | $- | $11,537 | $- | $11,537 | | Total Other consumer | $- | $- | $- | $- | $- | $- | $11,537 | $- | $11,537 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $- | $26 | $- | $26 | | Total Popular U.S. | $955,389 | $2,003,665 | $1,359,431 | $1,234,566 | $1,731,148 | $3,899,874 | $578,416 | $10,537 | $11,773,026 | 53 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _June 30, 2026_ | (In thousands) | Term Loans Amortized Cost Basis by Origination Year / 2026 | Term Loans Amortized Cost Basis by Origination Year / 2025 | Term Loans Amortized Cost Basis by Origination Year / 2024 | Term Loans Amortized Cost Basis by Origination Year / 2023 | Term Loans Amortized Cost Basis by Origination Year / 2021 | Term Loans Amortized Cost Basis by Origination Year / Prior Years | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Popular, Inc. | | | | | | | | | | | Commercial: | | | | | | | | | | | Commercial multi-family | | | | | | | | | | | Pass | $163,267 | $360,821 | $167,994 | $154,580 | $505,177 | $762,995 | $10,382 | $- | $2,125,216 | | Watch | - | - | 18,982 | 20,301 | 68,709 | 132,707 | - | - | 240,699 | | Special Mention | 151 | 218 | - | 2,367 | 792 | 2,228 | - | - | 5,756 | | Substandard | - | - | - | 1,767 | - | 25,986 | - | - | 27,753 | | Total commercial multi-family | $163,418 | $361,039 | $186,976 | $179,015 | $574,678 | $923,916 | $10,382 | $- | $2,399,424 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $1,312 | $- | $- | $1,312 | | Commercial real estate non-owner occupied | | | | | | | | | | | Pass | $338,779 | $666,938 | $515,540 | $573,214 | $1,178,019 | $1,794,568 | $93,114 | $- | $5,160,172 | | Watch | 20,857 | 22,246 | 5,320 | 45,917 | 17,766 | 119,319 | 1,264 | - | 232,689 | | Special Mention | - | 2,182 | - | 864 | 138 | 42,307 | - | - | 45,491 | | Substandard | 285 | 278 | 3,957 | 8,337 | 24,132 | 145,294 | 240 | - | 182,523 | | Total commercial real estate non-owner occupied | $359,921 | $691,644 | $524,817 | $628,332 | $1,220,055 | $2,101,488 | $94,618 | $- | $5,620,875 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $11,131 | $743 | $- | $- | $11,874 | | Commercial real estate owner occupied | | | | | | | | | | | Pass | $486,053 | $708,595 | $325,891 | $190,879 | $252,333 | $720,462 | $10,137 | $- | $2,694,350 | | Watch | 4,555 | 7,902 | 53,075 | 57,565 | 58,947 | 128,035 | 1,700 | - | 311,779 | | Special Mention | 1,165 | - | 20,462 | 1,325 | 3,508 | 29,945 | 1,500 | - | 57,905 | | Substandard | 6,438 | 18,272 | 5,036 | 1,798 | 19,982 | 139,326 | 1,464 | - | 192,316 | | Doubtful | - | 71 | - | - | 220 | 61 | - | - | 352 | | Total commercial real estate owner occupied | $498,211 | $734,840 | $404,464 | $251,567 | $334,990 | $1,017,829 | $14,801 | $- | $3,256,702 | | Year-to-Date gross write-offs | $1 | $- | $- | $- | $- | $90 | $- | $- | $91 | | Commercial and industrial | | | | | | | | | | | Pass | $877,920 | $1,575,108 | $927,937 | $628,055 | $660,071 | $1,243,849 | $1,747,389 | $- | $7,660,329 | | Watch | 17,031 | 41,540 | 95,362 | 45,476 | 82,046 | 147,438 | 229,855 | - | 658,748 | | Special Mention | 2,933 | 17,628 | 29,036 | 6,445 | 2,447 | 2,523 | 17,639 | - | 78,651 | | Substandard | 10,667 | 37,287 | 12,691 | 55,301 | 92,282 | 18,551 | 149,577 | - | 376,356 | | Total commercial and industrial | $908,551 | $1,671,563 | $1,065,026 | $735,277 | $836,846 | $1,412,361 | $2,144,460 | $- | $8,774,084 | | Year-to-Date gross write-offs | $637 | $532 | $677 | $465 | $32 | $71,352 | $3,972 | $- | $77,667 | 54 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _June 30, 2026_ | (In thousands) | Term Loans Amortized Cost Basis by Origination Year / 2026 | Term Loans Amortized Cost Basis by Origination Year / 2025 | Term Loans Amortized Cost Basis by Origination Year / 2024 | Term Loans Amortized Cost Basis by Origination Year / 2023 | Term Loans Amortized Cost Basis by Origination Year / 2021 | Term Loans Amortized Cost Basis by Origination Year / Prior Years | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Popular, Inc. | | | | | | | | | | | Construction | | | | | | | | | | | Pass | $167,851 | $464,301 | $503,270 | $233,026 | $60,026 | $11,747 | $106,757 | $- | $1,546,978 | | Watch | - | 15,627 | 63,358 | 58,966 | 31,063 | - | (204) | - | 168,810 | | Substandard | - | - | 7,684 | - | 8,603 | - | - | - | 16,287 | | Total construction | $167,851 | $479,928 | $574,312 | $291,992 | $99,692 | $11,747 | $106,553 | $- | $1,732,075 | | Mortgage | | | | | | | | | | | Pass | $432,847 | $1,088,747 | $914,736 | $728,582 | $573,185 | $4,962,927 | $- | $- | $8,701,024 | | Substandard | - | 178 | 1,150 | 3,740 | 2,844 | 71,398 | - | - | 79,310 | | Total mortgage | $432,847 | $1,088,925 | $915,886 | $732,322 | $576,029 | $5,034,325 | $- | $- | $8,780,334 | | Year-to-Date gross write-offs | $- | $4 | $- | $- | $- | $530 | $- | $- | $534 | | Leasing | | | | | | | | | | | Pass | $348,900 | $561,420 | $460,808 | $296,553 | $200,206 | $92,965 | $- | $- | $1,960,852 | | Substandard | 100 | 718 | 1,806 | 1,701 | 1,934 | 924 | - | - | 7,183 | | Total leasing | $349,000 | $562,138 | $462,614 | $298,254 | $202,140 | $93,889 | $- | $- | $1,968,035 | | Year-to-Date gross write-offs | $84 | $1,789 | $1,935 | $1,749 | $1,408 | $462 | $- | $- | $7,427 | 55 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _June 30, 2026_ | (In thousands) | Term Loans Amortized Cost Basis by Origination Year / 2026 | Term Loans Amortized Cost Basis by Origination Year / 2025 | Term Loans Amortized Cost Basis by Origination Year / 2024 | Term Loans Amortized Cost Basis by Origination Year / 2023 | Term Loans Amortized Cost Basis by Origination Year / 2021 | Term Loans Amortized Cost Basis by Origination Year / Prior Years | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Popular, Inc. | | | | | | | | | | | Consumer: | | | | | | | | | | | Credit cards | | | | | | | | | | | Pass | $- | $- | $- | $- | $- | $- | $1,214,629 | $- | $1,214,629 | | Substandard | - | - | - | - | - | - | 23,355 | - | 23,355 | | Loss | - | - | - | - | - | - | 13 | - | 13 | | Total credit cards | $- | $- | $- | $- | $- | $- | $1,237,997 | $- | $1,237,997 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $- | $36,958 | $- | $36,958 | | HELOCs | | | | | | | | | | | Pass | $- | $- | $- | $- | $- | $4,664 | $68,939 | $8,434 | $82,037 | | Substandard | - | - | - | - | - | 1,168 | 10 | 1,398 | 2,576 | | Loss | - | - | - | - | - | 39 | - | 705 | 744 | | Total HELOCs | $- | $- | $- | $- | $- | $5,871 | $68,949 | $10,537 | $85,357 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $- | $29 | $- | $29 | | Personal | | | | | | | | | | | Pass | $501,193 | $679,457 | $319,564 | $198,453 | $101,793 | $102,685 | $- | $31,586 | $1,934,731 | | Substandard | 69 | 2,818 | 2,828 | 2,370 | 1,275 | 6,397 | - | 1,793 | 17,550 | | Loss | - | 76 | 132 | 96 | 51 | 44 | - | 45 | 444 | | Total Personal | $501,262 | $682,351 | $322,524 | $200,919 | $103,119 | $109,126 | $- | $33,424 | $1,952,725 | | Year-to-Date gross write-offs | $90 | $8,604 | $9,930 | $9,696 | $4,218 | $8,653 | $- | $1,612 | $42,803 | | Auto | | | | | | | | | | | Pass | $570,260 | $1,021,269 | $865,716 | $594,559 | $377,339 | $297,223 | $- | $- | $3,726,366 | | Substandard | 368 | 6,376 | 11,005 | 9,064 | 6,953 | 6,489 | - | - | 40,255 | | Loss | - | - | 12 | - | 11 | 4 | - | - | 27 | | Total Auto | $570,628 | $1,027,645 | $876,733 | $603,623 | $384,303 | $303,716 | $- | $- | $3,766,648 | | Year-to-Date gross write-offs | $603 | $9,305 | $11,182 | $8,032 | $3,535 | $1,265 | $- | $- | $33,922 | | Other consumer | | | | | | | | | | | Pass | $14,468 | $30,799 | $18,708 | $14,362 | $13,833 | $4,231 | $75,325 | $- | $171,726 | | Substandard | - | - | 9 | 2,208 | 29 | 133 | 325 | - | 2,704 | | Loss | - | - | - | - | 478 | 698 | - | - | 1,176 | | Total Other consumer | $14,468 | $30,799 | $18,717 | $16,570 | $14,340 | $5,062 | $75,650 | $- | $175,606 | | Year-to-Date gross write-offs | $5 | $204 | $78 | $99 | $750 | $1,174 | $26 | $- | $2,336 | | Total Popular Inc. | $3,966,157 | $7,330,872 | $5,352,069 | $3,937,871 | $4,346,192 | $11,019,330 | $3,753,410 | $43,961 | $39,749,862 | 56 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _December 31, 2025_ | (In thousands) | Term Loans Amortized Cost Basis by Origination Year / 2025 | Term Loans Amortized Cost Basis by Origination Year / 2024 | Term Loans Amortized Cost Basis by Origination Year / 2023 | Term Loans Amortized Cost Basis by Origination Year / 2021 | Term Loans Amortized Cost Basis by Origination Year / 2020 | Term Loans Amortized Cost Basis by Origination Year / Prior Years | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | BPPR | | | | | | | | | | | Commercial: | | | | | | | | | | | Commercial multi-family | | | | | | | | | | | Pass | $12,328 | $32,906 | $36,473 | $131,276 | $20,536 | $47,303 | $107 | $- | $280,929 | | Watch | - | 15,795 | - | 523 | - | 1,742 | - | - | 18,060 | | Special Mention | 222 | - | - | - | 73 | 127 | - | - | 422 | | Substandard | - | - | - | - | - | 3,937 | - | - | 3,937 | | Total commercial multi-family | $12,550 | $48,701 | $36,473 | $131,799 | $20,609 | $53,109 | $107 | $- | $303,348 | | Commercial real estate non-owner occupied | | | | | | | | | | | Pass | $435,616 | $447,234 | $265,238 | $786,465 | $484,427 | $671,455 | $8,480 | $- | $3,098,915 | | Watch | 23,801 | 11,965 | 43,001 | 5,140 | 34,140 | 69,153 | - | - | 187,200 | | Special Mention | 933 | - | 872 | 144 | 23,724 | 18,398 | - | - | 44,071 | | Substandard | - | 726 | 8,406 | 28,490 | 1,438 | 25,884 | - | - | 64,944 | | Total commercial real estate non-owner occupied | $460,350 | $459,925 | $317,517 | $820,239 | $543,729 | $784,890 | $8,480 | $- | $3,395,130 | | Year-to-Date gross write-offs | $- | $13,356 | $- | $134 | $- | $86 | $- | $- | $13,576 | | Commercial real estate owner occupied | | | | | | | | | | | Pass | $157,288 | $113,778 | $71,288 | $55,715 | $169,037 | $278,495 | $20,468 | $- | $866,069 | | Watch | 6,255 | 26,923 | 6,348 | 35,565 | 29,409 | 78,046 | 2,191 | - | 184,737 | | Special Mention | - | - | 1,494 | 18,063 | 726 | 12,637 | 1,500 | - | 34,420 | | Substandard | 9,405 | 1,879 | 1,839 | 19,190 | 7,386 | 71,358 | - | - | 111,057 | | Doubtful | 75 | - | - | - | 62 | 173 | - | - | 310 | | Total commercial real estate owner occupied | $173,023 | $142,580 | $80,969 | $128,533 | $206,620 | $440,709 | $24,159 | $- | $1,196,593 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $363 | $- | $- | $363 | | Commercial and industrial | | | | | | | | | | | Pass | $1,357,401 | $598,521 | $649,249 | $442,753 | $193,173 | $346,563 | $1,376,855 | $- | $4,964,515 | | Watch | 11,706 | 92,478 | 19,194 | 43,529 | 6,909 | 19,218 | 223,490 | - | 416,524 | | Special Mention | 4,991 | 26,356 | 10,178 | 6,857 | 454 | 4,338 | 14,957 | - | 68,131 | | Substandard | 38,422 | 12,526 | 48,230 | 89,771 | 156,970 | 15,079 | 159,854 | - | 520,852 | | Doubtful | 21 | - | - | 24 | - | 6 | - | - | 51 | | Total commercial and industrial | $1,412,541 | $729,881 | $726,851 | $582,934 | $357,506 | $385,204 | $1,775,156 | $- | $5,970,073 | | Year-to-Date gross write-offs | $1,587 | $716 | $1,643 | $655 | $21 | $803 | $9,320 | $- | $14,745 | | Construction | | | | | | | | | | | Pass | $28,575 | $99,963 | $70,674 | $- | $3,608 | $9,692 | $52,758 | $- | $265,270 | | Watch | - | 43,202 | 40,231 | 8,129 | - | - | 709 | - | 92,271 | | Total construction | $28,575 | $143,165 | $110,905 | $8,129 | $3,608 | $9,692 | $53,467 | $- | $357,541 | | Mortgage | | | | | | | | | | | Pass | $986,795 | $872,826 | $683,325 | $386,318 | $373,153 | $3,977,979 | $- | $- | $7,280,396 | | Substandard | - | 151 | 3,115 | 1,915 | 764 | 61,626 | - | - | 67,571 | | Total mortgage | $986,795 | $872,977 | $686,440 | $388,233 | $373,917 | $4,039,605 | $- | $- | $7,347,967 | | Year-to-Date gross write-offs | $31 | $- | $1 | $- | $- | $1,404 | $- | $- | $1,436 | 57 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _December 31, 2025_ | (In thousands) | Term Loans Amortized Cost Basis by Origination Year / 2025 | Term Loans Amortized Cost Basis by Origination Year / 2024 | Term Loans Amortized Cost Basis by Origination Year / 2023 | Term Loans Amortized Cost Basis by Origination Year / 2021 | Term Loans Amortized Cost Basis by Origination Year / 2020 | Term Loans Amortized Cost Basis by Origination Year / Prior Years | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | BPPR | | | | | | | | | | | Leasing | | | | | | | | | | | Pass | $682,378 | $535,227 | $354,748 | $251,520 | $135,973 | $32,270 | $- | $- | $1,992,116 | | Substandard | 601 | 1,891 | 2,424 | 2,249 | 1,302 | 585 | - | - | 9,052 | | Loss | 175 | - | 22 | - | - | - | - | - | 197 | | Total leasing | $683,154 | $537,118 | $357,194 | $253,769 | $137,275 | $32,855 | $- | $- | $2,001,365 | | Year-to-Date gross write-offs | $990 | $4,449 | $5,041 | $4,541 | $1,807 | $28 | $- | $- | $16,856 | | Consumer: | | | | | | | | | | | Credit cards | | | | | | | | | | | Pass | $- | $- | $- | $- | $- | $- | $1,229,201 | $- | $1,229,201 | | Loss | - | - | - | - | - | - | 27,526 | - | 27,526 | | Substandard | - | - | - | - | - | - | 4 | - | 4 | | Total credit cards | $- | $- | $- | $- | $- | $- | $1,256,731 | $- | $1,256,731 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $- | $75,428 | $- | $75,428 | | HELOCs | | | | | | | | | | | Pass | $- | $- | $- | $- | $- | $- | $1,908 | $- | $1,908 | | Total HELOCs | $- | $- | $- | $- | $- | $- | $1,908 | $- | $1,908 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $- | $25 | $- | $25 | | Personal | | | | | | | | | | | Pass | $842,532 | $422,156 | $261,441 | $132,551 | $51,320 | $77,214 | $- | $29,700 | $1,816,914 | | Substandard | 1,452 | 3,310 | 3,509 | 1,632 | 618 | 6,654 | - | 2,278 | 19,453 | | Loss | | 4 | 7 | 12 | - | 12 | - | - | 35 | | Total Personal | $843,984 | $425,470 | $264,957 | $134,195 | $51,938 | $83,880 | $- | $31,978 | $1,836,402 | | Year-to-Date gross write-offs | $2,597 | $19,480 | $33,310 | $17,825 | $4,576 | $2,160 | $- | $3,031 | $82,979 | | Auto | | | | | | | | | | | Pass | $1,139,411 | $995,283 | $702,884 | $464,005 | $314,721 | $142,456 | $- | $- | $3,758,760 | | Substandard | 3,992 | 17,559 | 14,881 | 11,699 | 7,590 | 5,306 | - | - | 61,027 | | Loss | - | - | - | - | 19 | 6 | - | - | 25 | | Total Auto | $1,143,403 | $1,012,842 | $717,765 | $475,704 | $322,330 | $147,768 | $- | $- | $3,819,812 | | Year-to-Date gross write-offs | $6,682 | $29,448 | $20,777 | $12,602 | $5,203 | $1,572 | $- | $- | $76,284 | | Other consumer | | | | | | | | | | | Pass | $35,716 | $25,008 | $20,233 | $15,243 | $7,179 | $1,756 | $64,322 | $- | $169,457 | | Substandard | - | 45 | 211 | 114 | 20 | 47 | 476 | - | 913 | | Loss | - | - | - | 1,025 | 363 | - | - | - | 1,388 | | Total Other consumer | $35,716 | $25,053 | $20,444 | $16,382 | $7,562 | $1,803 | $64,798 | $- | $171,758 | | Year-to-Date gross write-offs | $64 | $226 | $286 | $254 | $358 | $1,960 | $- | $- | $3,148 | | Total BPPR | $5,780,091 | $4,397,712 | $3,319,515 | $2,939,917 | $2,025,094 | $5,979,515 | $3,184,806 | $31,978 | $27,658,628 | 58 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _December 31, 2025_ | (In thousands) | Term Loans Amortized Cost Basis by Origination Year / 2025 | Term Loans Amortized Cost Basis by Origination Year / 2024 | Term Loans Amortized Cost Basis by Origination Year / 2023 | Term Loans Amortized Cost Basis by Origination Year / 2022 | Term Loans Amortized Cost Basis by Origination Year / 2021 | Term Loans Amortized Cost Basis by Origination Year / Prior Years | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Popular U.S. | | | | | | | | | | | Commercial: | | | | | | | | | | | Commercial multi-family | | | | | | | | | | | Pass | $349,850 | $138,662 | $118,143 | $380,479 | $274,195 | $534,623 | $4,394 | $- | $1,800,346 | | Watch | - | 2,468 | 21,142 | 94,135 | 39,881 | 151,526 | 1,249 | - | 310,401 | | Special Mention | - | - | 2,711 | 7,840 | - | 4,560 | - | - | 15,111 | | Substandard | - | - | 1,775 | 2,729 | - | 22,080 | - | - | 26,584 | | Total commercial multi-family | $349,850 | $141,130 | $143,771 | $485,183 | $314,076 | $712,789 | $5,643 | $- | $2,152,442 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $563 | $- | $- | $563 | | Commercial real estate non-owner occupied | | | | | | | | | | | Pass | $216,537 | $162,382 | $296,653 | $467,811 | $163,984 | $582,004 | $6,024 | $- | $1,895,395 | | Watch | 10,300 | 11,369 | 11,441 | 15,141 | 9,333 | 65,750 | 500 | - | 123,834 | | Special Mention | - | 2,069 | - | - | - | 1,902 | - | - | 3,971 | | Substandard | - | - | - | 5,973 | 4,726 | 114,255 | - | - | 124,954 | | Total commercial real estate non-owner occupied | $226,837 | $175,820 | $308,094 | $488,925 | $178,043 | $763,911 | $6,524 | $- | $2,148,154 | | Commercial real estate owner occupied | | | | | | | | | | | Pass | $561,716 | $198,946 | $192,174 | $188,536 | $180,981 | $288,439 | $8,803 | $- | $1,619,595 | | Watch | - | 48,837 | 39,519 | 30,764 | 12,813 | 52,010 | 3,179 | - | 187,122 | | Special Mention | - | 17,946 | - | - | - | 10,944 | - | - | 28,890 | | Substandard | - | 2,705 | - | 39,474 | 1,571 | 77,130 | - | - | 120,880 | | Total commercial real estate owner occupied | $561,716 | $268,434 | $231,693 | $258,774 | $195,365 | $428,523 | $11,982 | $- | $1,956,487 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $27 | $- | $- | $27 | 59 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _December 31, 2025_ | (In thousands) | Term Loans Amortized Cost Basis by Origination Year / 2025 | Term Loans Amortized Cost Basis by Origination Year / 2024 | Term Loans Amortized Cost Basis by Origination Year / 2023 | Term Loans Amortized Cost Basis by Origination Year / 2021 | Term Loans Amortized Cost Basis by Origination Year / 2020 | Term Loans Amortized Cost Basis by Origination Year / Prior Years | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Popular U.S. | | | | | | | | | | | Commercial and industrial | | | | | | | | | | | Pass | $247,703 | $357,722 | $230,702 | $278,950 | $249,467 | $545,331 | $338,026 | $- | $2,247,901 | | Watch | 34,700 | 5,196 | 47,136 | 70,767 | 42,072 | 151,368 | 15,650 | - | 366,889 | | Special Mention | - | - | 4,649 | 63 | 284 | 198 | 738 | - | 5,932 | | Substandard | - | 5,546 | 838 | 4,145 | 112 | 1,393 | 4,583 | - | 16,617 | | Total commercial and industrial | $282,403 | $368,464 | $283,325 | $353,925 | $291,935 | $698,290 | $358,997 | $- | $2,637,339 | | Year-to-Date gross write-offs | $100 | $1,106 | $483 | $- | $599 | $25 | $132 | $- | $2,445 | | Construction | | | | | | | | | | | Pass | $358,475 | $427,221 | $291,714 | $85,385 | $- | $6,030 | $12,491 | $- | $1,181,316 | | Watch | 1,366 | 15,771 | 72,580 | 27,870 | - | 6,941 | - | - | 124,528 | | Special Mention | - | - | 2,912 | - | - | - | - | - | 2,912 | | Substandard | - | - | - | 8,602 | - | - | - | - | 8,602 | | Total construction | $359,841 | $442,992 | $367,206 | $121,857 | $- | $12,971 | $12,491 | $- | $1,317,358 | | Mortgage | | | | | | | | | | | Pass | $100,210 | $78,166 | $79,367 | $205,446 | $259,877 | $564,985 | $- | $- | $1,288,051 | | Substandard | - | - | 644 | 495 | 217 | 12,066 | - | - | 13,422 | | Total mortgage | $100,210 | $78,166 | $80,011 | $205,941 | $260,094 | $577,051 | $- | $- | $1,301,473 | 60 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _December 31, 2025_ | (In thousands) | Term Loans Amortized Cost Basis by Origination Year / 2025 | Term Loans Amortized Cost Basis by Origination Year / 2024 | Term Loans Amortized Cost Basis by Origination Year / 2023 | Term Loans Amortized Cost Basis by Origination Year / 2022 | Term Loans Amortized Cost Basis by Origination Year / 2021 | Term Loans Amortized Cost Basis by Origination Year / Prior Years | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Popular U.S. | | | | | | | | | | | Consumer: | | | | | | | | | | | Credit cards | | | | | | | | | | | Pass | $- | $- | $- | $- | $- | $- | $(14) | $- | $(14) | | Total credit cards | $- | $- | $- | $- | $- | $- | $(14) | $- | $(14) | | HELOCs | | | | | | | | | | | Pass | $- | $- | $- | $- | $- | $5,201 | $59,363 | $9,422 | $73,986 | | Substandard | - | - | - | - | - | 1,276 | 12 | 543 | 1,831 | | Loss | - | - | - | - | - | 139 | - | 828 | 967 | | Total HELOCs | $- | $- | $- | $- | $- | $6,616 | $59,375 | $10,793 | $76,784 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $- | $84 | $- | $84 | | Personal | | | | | | | | | | | Pass | $18,658 | $17,906 | $12,102 | $15,593 | $3,061 | $1,272 | $- | $- | $68,592 | | Substandard | 74 | 329 | 309 | 153 | 55 | 256 | - | - | 1,176 | | Loss | 10 | - | - | - | - | 48 | - | - | 58 | | Total Personal | $18,742 | $18,235 | $12,411 | $15,746 | $3,116 | $1,576 | $- | $- | $69,826 | | Year-to-Date gross write-offs | $37 | $1,787 | $2,212 | $3,420 | $638 | $46 | $- | $- | $8,140 | | Other consumer | | | | | | | | | | | Pass | $- | $- | $- | $- | $- | $- | $9,012 | $- | $9,012 | | Substandard | | - | - | - | - | - | 1 | - | 1 | | Loss | - | - | - | - | - | - | 28 | - | 28 | | Total Other consumer | $- | $- | $- | $- | $- | $- | $9,041 | $- | $9,041 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $- | $924 | $- | $924 | | Total Popular U.S. | $1,899,599 | $1,493,241 | $1,426,511 | $1,930,351 | $1,242,629 | $3,201,727 | $464,039 | $10,793 | $11,668,890 | 61 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _December 31, 2025_ | (In thousands) | Term Loans Amortized Cost Basis by Origination Year / 2025 | Term Loans Amortized Cost Basis by Origination Year / 2024 | Term Loans Amortized Cost Basis by Origination Year / 2023 | Term Loans Amortized Cost Basis by Origination Year / 2021 | Term Loans Amortized Cost Basis by Origination Year / 2020 | Term Loans Amortized Cost Basis by Origination Year / Prior Years | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Popular, Inc. | | | | | | | | | | | Commercial: | | | | | | | | | | | Commercial multi-family | | | | | | | | | | | Pass | $362,178 | $171,568 | $154,616 | $511,755 | $294,731 | $581,926 | $4,501 | $- | $2,081,275 | | Watch | - | 18,263 | 21,142 | 94,658 | 39,881 | 153,268 | 1,249 | - | 328,461 | | Special Mention | 222 | - | 2,711 | 7,840 | 73 | 4,687 | - | - | 15,533 | | Substandard | - | - | 1,775 | 2,729 | - | 26,017 | - | - | 30,521 | | Total commercial multi-family | $362,400 | $189,831 | $180,244 | $616,982 | $334,685 | $765,898 | $5,750 | $- | $2,455,790 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $563 | $- | $- | $563 | | Commercial real estate non-owner occupied | | | | | | | | | | | Pass | $652,153 | $609,616 | $561,891 | $1,254,276 | $648,411 | $1,253,459 | $14,504 | $- | $4,994,310 | | Watch | 34,101 | 23,334 | 54,442 | 20,281 | 43,473 | 134,903 | 500 | - | 311,034 | | Special Mention | 933 | 2,069 | 872 | 144 | 23,724 | 20,300 | - | - | 48,042 | | Substandard | - | 726 | 8,406 | 34,463 | 6,164 | 140,139 | - | - | 189,898 | | Total commercial real estate non-owner occupied | $687,187 | $635,745 | $625,611 | $1,309,164 | $721,772 | $1,548,801 | $15,004 | $- | $5,543,284 | | Year-to-Date gross write-offs | $- | $13,356 | $- | $134 | $- | $86 | $- | $- | $13,576 | | Commercial real estate owner occupied | | | | | | | | | | | Pass | $719,004 | $312,724 | $263,462 | $244,251 | $350,018 | $566,934 | $29,271 | $- | $2,485,664 | | Watch | 6,255 | 75,760 | 45,867 | 66,329 | 42,222 | 130,056 | 5,370 | - | 371,859 | | Special Mention | - | 17,946 | 1,494 | 18,063 | 726 | 23,581 | 1,500 | - | 63,310 | | Substandard | 9,405 | 4,584 | 1,839 | 58,664 | 8,957 | 148,488 | - | - | 231,937 | | Doubtful | 75 | - | - | - | 62 | 173 | - | - | 310 | | Total commercial real estate owner occupied | $734,739 | $411,014 | $312,662 | $387,307 | $401,985 | $869,232 | $36,141 | $- | $3,153,080 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $390 | $- | $- | $390 | | Commercial and industrial | | | | | | | | | | | Pass | $1,605,104 | $956,243 | $879,951 | $721,703 | $442,640 | $891,894 | $1,714,881 | $- | $7,212,416 | | Watch | 46,406 | 97,674 | 66,330 | 114,296 | 48,981 | 170,586 | 239,140 | - | 783,413 | | Special Mention | 4,991 | 26,356 | 14,827 | 6,920 | 738 | 4,536 | 15,695 | - | 74,063 | | Substandard | 38,422 | 18,072 | 49,068 | 93,916 | 157,082 | 16,472 | 164,437 | - | 537,469 | | Doubtful | 21 | - | - | 24 | - | 6 | - | - | 51 | | Total commercial and industrial | $1,694,944 | $1,098,345 | $1,010,176 | $936,859 | $649,441 | $1,083,494 | $2,134,153 | $- | $8,607,412 | | Year-to-Date gross write-offs | $1,687 | $1,822 | $2,126 | $655 | $620 | $828 | $9,452 | $- | $17,190 | 62 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _December 31, 2025_ | (In thousands) | Term Loans Amortized Cost Basis by Origination Year / 2025 | Term Loans Amortized Cost Basis by Origination Year / 2024 | Term Loans Amortized Cost Basis by Origination Year / 2023 | Term Loans Amortized Cost Basis by Origination Year / 2022 | Term Loans Amortized Cost Basis by Origination Year / 2021 | Term Loans Amortized Cost Basis by Origination Year / Prior Years | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Popular, Inc. | | | | | | | | | | | Construction | | | | | | | | | | | Pass | $387,050 | $527,184 | $362,388 | $85,385 | $3,608 | $15,722 | $65,249 | $- | $1,446,586 | | Watch | 1,366 | 58,973 | 112,811 | 35,999 | - | 6,941 | 709 | - | 216,799 | | Special Mention | - | - | 2,912 | - | - | - | - | - | 2,912 | | Substandard | - | - | - | 8,602 | - | - | - | - | 8,602 | | Total construction | $388,416 | $586,157 | $478,111 | $129,986 | $3,608 | $22,663 | $65,958 | $- | $1,674,899 | | Mortgage | | | | | | | | | | | Pass | $1,087,005 | $950,992 | $762,692 | $591,764 | $633,030 | $4,542,964 | $- | $- | $8,568,447 | | Substandard | - | 151 | 3,759 | 2,410 | 981 | 73,692 | - | - | 80,993 | | Total mortgage | $1,087,005 | $951,143 | $766,451 | $594,174 | $634,011 | $4,616,656 | $- | $- | $8,649,440 | | Year-to-Date gross write-offs | $31 | $- | $1 | $- | $- | $1,404 | $- | $- | $1,436 | | Leasing | | | | | | | | | | | Pass | $682,378 | $535,227 | $354,748 | $251,520 | $135,973 | $32,270 | $- | $- | $1,992,116 | | Substandard | 601 | 1,891 | 2,424 | 2,249 | 1,302 | 585 | - | - | 9,052 | | Loss | 175 | - | 22 | - | - | - | - | - | 197 | | Total leasing | $683,154 | $537,118 | $357,194 | $253,769 | $137,275 | $32,855 | $- | $- | $2,001,365 | | Year-to-Date gross write-offs | $990 | $4,449 | $5,041 | $4,541 | $1,807 | $28 | $- | $- | $16,856 | 63 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _December 31, 2025_ | (In thousands) | Term Loans Amortized Cost Basis by Origination Year / 2025 | Term Loans Amortized Cost Basis by Origination Year / 2024 | Term Loans Amortized Cost Basis by Origination Year / 2023 | Term Loans Amortized Cost Basis by Origination Year / 2021 | Term Loans Amortized Cost Basis by Origination Year / 2020 | Term Loans Amortized Cost Basis by Origination Year / Prior Years | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Popular, Inc. | | | | | | | | | | | Consumer: | | | | | | | | | | | Credit cards | | | | | | | | | | | Pass | $- | $- | $- | $- | $- | $- | $1,229,187 | $- | $1,229,187 | | Substandard | - | - | - | - | - | - | 27,526 | - | 27,526 | | Loss | - | - | - | - | - | - | 4 | - | 4 | | Total credit cards | $- | $- | $- | $- | $- | $- | $1,256,717 | $- | $1,256,717 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $- | $75,428 | $- | $75,428 | | HELOCs | | | | | | | | | | | Pass | $- | $- | $- | $- | $- | $5,201 | $61,271 | $9,422 | $75,894 | | Substandard | - | - | - | - | - | 1,276 | 12 | 543 | 1,831 | | Loss | - | - | - | - | - | 139 | - | 828 | 967 | | Total HELOCs | $- | $- | $- | $- | $- | $6,616 | $61,283 | $10,793 | $78,692 | | Year-to-Date gross write-offs | $- | $- | $- | $- | $- | $- | $109 | $- | $109 | | Personal | | | | | | | | | | | Pass | $861,190 | $440,062 | $273,543 | $148,144 | $54,381 | $78,486 | $- | $29,700 | $1,885,506 | | Substandard | 1,526 | 3,639 | 3,818 | 1,785 | 673 | 6,910 | - | 2,278 | 20,629 | | Loss | 10 | 4 | 7 | 12 | - | 60 | - | - | 93 | | Total Personal | $862,726 | $443,705 | $277,368 | $149,941 | $55,054 | $85,456 | $- | $31,978 | $1,906,228 | | Year-to-Date gross write-offs | $2,634 | $21,267 | $35,522 | $21,245 | $5,214 | $2,206 | $- | $3,031 | $91,119 | | Auto | | | | | | | | | | | Pass | $1,139,411 | $995,283 | $702,884 | $464,005 | $314,721 | $142,456 | $- | $- | $3,758,760 | | Substandard | 3,992 | 17,559 | 14,881 | 11,699 | 7,590 | 5,306 | - | - | 61,027 | | Loss | - | - | - | - | 19 | 6 | - | - | 25 | | Total Auto | $1,143,403 | $1,012,842 | $717,765 | $475,704 | $322,330 | $147,768 | $- | $- | $3,819,812 | | Year-to-Date gross write-offs | $6,682 | $29,448 | $20,777 | $12,602 | $5,203 | $1,572 | $- | $- | $76,284 | | Other consumer | | | | | | | | | | | Pass | $35,716 | $25,008 | $20,233 | $15,243 | $7,179 | $1,756 | $73,334 | $- | $178,469 | | Substandard | - | 45 | 211 | 114 | 20 | 47 | 477 | - | 914 | | Loss | - | - | - | 1,025 | 363 | - | 28 | - | 1,416 | | Total Other consumer | $35,716 | $25,053 | $20,444 | $16,382 | $7,562 | $1,803 | $73,839 | $- | $180,799 | | Year-to-Date gross write-offs | $64 | $226 | $286 | $254 | $358 | $1,960 | $924 | $- | $4,072 | | Total Popular Inc. | $7,679,690 | $5,890,953 | $4,746,026 | $4,870,268 | $3,267,723 | $9,181,242 | $3,648,845 | $42,771 | $39,327,518 | ### Note 9 - Other real estate owned The following tables present the activity related to Other Real Estate Owned (“OREO"), for the quarters and six months ended June 30, 2026 and 2025. _For the quarter ended June 30, 2026_ | (In thousands) | OREO / Commercial/Construction | OREO / Mortgage | Total | | --- | --- | --- | --- | | Balance at beginning of period | $5,137 | $40,543 | $45,680 | | Write-downs in value | (5) | (323) | (328) | | Additions | 2,344 | 9,972 | 12,316 | | Sales | (352) | (7,759) | (8,111) | | Other adjustments | - | - | - | | Ending balance | $7,124 | $42,433 | $49,557 | 64 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _For the quarter ended June 30, 2025_ | (In thousands) | OREO / Commercial/Construction | OREO / Mortgage | Total | | --- | --- | --- | --- | | Balance at beginning of period | $7,111 | $45,003 | $52,114 | | Write-downs in value | (835) | (516) | (1,351) | | Additions | 314 | 7,908 | 8,222 | | Sales | (693) | (12,145) | (12,838) | | Other Adjustments | - | (21) | (21) | | Ending balance | $5,897 | $40,229 | $46,126 | _For the six months ended June 30, 2026_ | (In thousands) | OREO / Commercial/Construction | OREO / Mortgage | Total | | --- | --- | --- | --- | | Balance at beginning of period | $4,911 | $37,522 | $42,433 | | Write-downs in value | (195) | (858) | (1,053) | | Additions | 3,318 | 21,366 | 24,684 | | Sales | (910) | (15,301) | (16,211) | | Other adjustments | - | (296) | (296) | | Ending balance | $7,124 | $42,433 | $49,557 | _For the six months ended June 30, 2025_ | (In thousands) | OREO / Commercial/Construction | OREO / Mortgage | Total | | --- | --- | --- | --- | | Balance at beginning of period | $8,424 | $48,844 | $57,268 | | Write-downs in value | (864) | (1,715) | (2,579) | | Additions | 571 | 16,697 | 17,268 | | Sales | (2,234) | (23,374) | (25,608) | | Other adjustments | - | (223) | (223) | | Ending balance | $5,897 | $40,229 | $46,126 | ### Note 10 - Other assets The caption of other assets in the Consolidated Statements of Financial Condition consists of the following major categories: | (In thousands) | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | Net deferred tax assets (net of valuation allowance) | $794,693 | $814,265 | | Investments under the equity method | 295,281 | 261,687 | | Prepaid taxes | 62,549 | 42,762 | | Other prepaid expenses | 32,527 | 25,542 | | Capitalized software costs | 189,159 | 183,381 | | Derivative assets | 28,516 | 27,913 | | Trades receivable from brokers and counterparties | 7,628 | 245 | | Principal, interest and escrow servicing advances | 23,818 | 30,252 | | Guaranteed mortgage loan claims receivable | 4,430 | 9,184 | | Operating ROU assets | 99,825 | 95,234 | | Finance ROU assets | 23,567 | 23,686 | | Assets for pension benefit | 40,836 | 38,157 | | Others | 159,392 | 153,669 | | Total other assets | $1,762,221 | $1,705,977 | The Corporation regularly incurs in capitalizable costs associated with software development or licensing which are recorded within the Other Assets line item in the accompanying Consolidated Statements of Financial Condition. In addition, the Corporation incurs costs associated with hosting arrangements that are service contracts that are also recorded within Other Assets. The hosting arrangements can include capitalizable implementation costs that are amortized during the term of the hosting arrangement. The following table summarizes the composition of acquired or developed software costs as well as costs related to hosting arrangements: 65 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) | (In thousands) / June 30, 2026 | Gross Carrying / Amount | Accumulated / Amortization | Net Carrying / Value | | --- | --- | --- | --- | | Software development costs | $107,959 | $41,510 | $66,449 | | Software license costs | 60,936 | 30,515 | 30,421 | | Cloud computing arrangements | 113,857 | 21,568 | 92,289 | | Total Capitalized software costs [1] [2] | $282,752 | $93,593 | $189,159 | | December 31, 2025 | | | | | Software development costs | $103,628 | $34,170 | $69,458 | | Software license costs | 46,538 | 24,475 | 22,063 | | Cloud computing arrangements | 106,410 | 14,550 | 91,860 | | Total Capitalized software costs [1] [2] | $256,576 | $73,195 | $183,381 | [1]Software intangible assets are presented as part of Other Assets in the Consolidated Statements of Financial Condition. [2]The tables above exclude assets that have been fully amortized. Total amortization expense for all capitalized software and hosting arrangement cost, reflected as part of technology and software expenses in the consolidated statements of operations, is as follows: | (In thousands) | Quarters ended June 30, 2026 | Quarters ended June 30, 2025 | Six months ended June 30, 2026 | Six months ended June 30, 2025 | | --- | --- | --- | --- | --- | | Software development and license costs | $25,759 | $22,254 | $49,715 | $43,982 | | Cloud computing arrangements | 3,956 | 1,462 | 7,557 | 2,828 | | Total amortization expense | $29,715 | $23,716 | $57,272 | $46,810 | ### Note 11 - Deposits Total deposits as of the end of the periods presented consisted of: | (In thousands) | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | Savings accounts | $14,533,752 | $14,368,599 | | NOW, money market and other interest-bearing demand deposits | 30,697,994 | 27,037,924 | | Total savings, NOW, money market and other interest-bearing demand deposits | 45,231,746 | 41,406,523 | | Certificates of deposit: | | | | Under $250,000 | 5,606,260 | 5,564,615 | | $250,000 and over | 4,298,816 | 3,914,746 | | Total certificates of deposit | 9,905,076 | 9,479,361 | | Total interest-bearing deposits | $55,136,822 | $50,885,884 | | Non- interest-bearing deposits | $15,096,293 | $15,304,209 | | Total deposits | $70,233,115 | $66,190,093 | A summary of certificates of deposits by maturity at June 30, 2026 follows: | (In thousands) | | | --- | --- | | 2026 | 5,094,052 | | 2027 | 2,689,688 | | 2028 | 942,750 | | 2029 | 493,204 | | 2030 | 409,495 | | 2031 and thereafter | 275,887 | | Total certificates of deposit | $9,905,076 | At June 30, 2026, the Corporation had brokered deposits amounting to $1.0 billion (December 31, 2025 - $1.0 billion). The aggregate amount of overdrafts in demand deposit accounts that were reclassified to loans was $10.9 million at June 30, 2026 (December 31, 2025 - $10.7 million). At June 30, 2026, Puerto Rico government deposits amounted to $22.7 billion. Puerto Rico government deposits are interest bearing accounts, which are indexed to short-term market rates and fluctuate in cost with changes in those rates, in accordance with contractual terms. 66 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) ### Note 12 - Borrowings Assets sold under agreements to repurchase Assets sold under agreements to repurchase amounted to $77.5 million at June 30, 2026 and $39 million at December 31, 2025. The Corporation’s repurchase transactions are overcollateralized with the securities detailed in the table below. The Corporation’s repurchase agreements have a right of set-off with the respective counterparty under the supplemental terms of the master repurchase agreements. In an event of default, each party has a right of set-off against the other party for amounts owed in the related agreement and any other amount or obligation owed in respect of any other agreement or transaction between them. Pursuant to the Corporation’s accounting policy, the repurchase agreements are not offset with other repurchase agreements held with the same counterparty. The following table presents information related to the Corporation’s repurchase transactions accounted for as secured borrowings that are collateralized with debt securities available-for-sale, debt securities held-to-maturity, and other assets held-for-trading purposes or which have been obtained under agreements to resell. It is the Corporation’s policy to maintain effective control over assets sold under agreements to repurchase; accordingly, such securities continue to be carried on the Consolidated Statements of Financial Condition. Repurchase agreements accounted for as secured borrowings | (In thousands) | June 30, 2026 / Repurchase / liability | December 31, 2025 / Repurchase / liability | | --- | --- | --- | | U.S. Treasury securities | | | | Within 30 days | 19,581 | $29,356 | | After 30 to 90 days | 57,940 | 9,645 | | Total U.S. Treasury securities | 77,521 | 39,001 | | Total | $77,521 | $39,001 | Repurchase agreements in this portfolio are generally short-term, often overnight. As such our risk is very limited. We manage the liquidity risks arising from secured funding by sourcing funding globally from a diverse group of counterparties, providing a range of securities collateral and pursuing longer durations, when appropriate. Other short-term borrowings At June 30, 2026 and December 31, 2025, other short-term borrowings consisted of $675.0 million and $650.0 million, respectively, in FHLB Advances. Notes Payable The following table presents the composition of notes payable at June 30, 2026 and December 31, 2025. | (In thousands) | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | Advances with the FHLB with maturities ranging from 2026 through 2029 paying interest at monthly fixed rates ranging from 0.69% to 4.17% | 114,620 | 164,620 | | Unsecured senior debt securities maturing on 2028 paying interest semiannually at a fixed rate of 7.25%, net of debt issuance costs of $2,723 | 397,277 | 396,558 | | Junior subordinated deferrable interest debentures (related to trust preferred securities) with maturities ranging from 2026 to 2034 with fixed interest rates ranging from 6.13% to 6.56%, net of debt issuance costs of $221 | 198,413 | 198,399 | | Total notes payables | 710,310 | 759,577 | Note: Refer to the 2025 Form 10-K for rates information at December 31, 2025. 67 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) A breakdown of borrowings by contractual maturities at June 30, 2026 is included in the table below. | (In thousands) | Assets sold under agreements to repurchase | Short-term borrowings | Notes payable | Total | | --- | --- | --- | --- | --- | | 2026 | $77,521 | $675,000 | $24,500 | $777,021 | | 2027 | - | - | 6,113 | 6,113 | | 2029 | - | - | 441,627 | 441,627 | | 2030 | - | - | 39,657 | 39,657 | | Later years | - | - | 198,413 | 198,413 | | Total borrowings | $77,521 | $675,000 | $710,310 | $1,462,831 | At June 30, 2026 and December 31, 2025, the Corporation had FHLB borrowing facilities whereby the Corporation could borrow up to $4.9 billion and $4.8 billion, respectively, of which $0.8 billion and $0.8 billion, respectively, were used. The FHLB borrowing facilities are collateralized with securities and loans held-in-portfolio, and do not have restrictive covenants or callable features. Also, at June 30, 2026, the Corporation had borrowing facilities at the discount window of the Federal Reserve Bank of New York amounting to $11.9 billion (December 31, 2025 - $12.1 billion), which remained unused at June 30, 2026 and December 31, 2025. The facilities are a collateralized source of credit that is highly dependable even under difficult market conditions. ### Note 13 - Other liabilities The caption of other liabilities in the Consolidated Statements of Financial Condition consists of the following major categories: | (In thousands) | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | Accrued expenses | 249,449 | $321,203 | | Accrued interest payable | 70,480 | 66,240 | | Accounts payable | 107,464 | 78,998 | | Dividends payable | 48,148 | 49,596 | | Trades payable | 6,868 | 595,911 | | Liability for GNMA loans sold with an option to repurchase | 8,821 | 8,734 | | Reserves for loan indemnifications | 2,219 | 2,704 | | Reserve for operational losses | 22,657 | 20,723 | | Operating lease liabilities | 109,338 | 104,958 | | Finance lease liabilities | 26,755 | 27,389 | | Pension benefit obligation | 4,494 | 4,739 | | Postretirement benefit obligation | 102,971 | 103,974 | | Others | 83,685 | 75,348 | | Total other liabilities | 843,349 | $1,460,517 | 68 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) ### Note 14 - Other comprehensive income The following table presents changes in accumulated other comprehensive income by component for the quarters and six months ended June 30, 2026 and 2025. **Changes in Accumulated Other Comprehensive Income (Loss) by Component [1]** | Line item | Quarters ended / June 30, 2026 | Quarters ended / June 30, 2025 | Six months ended / June 30, 2026 | Six months ended / June 30, 2025 | | --- | --- | --- | --- | --- | | Beginning Balance | $(85,538) | $(78,011) | $(85,282) | $(71,365) | | Other comprehensive income | 22,428 | 7,499 | 22,172 | 854 | | Net change | 22,428 | 7,499 | 22,172 | 854 | | Ending balance | $(63,110) | $(70,512) | $(63,110) | $(70,511) | | Beginning Balance | $(89,744) | $(93,271) | $(91,155) | $(94,692) | | Amounts reclassified from accumulated other comprehensive loss for amortization of net losses | 1,411 | 1,420 | 2,822 | 2,841 | | Net change | 1,411 | 1,420 | 2,822 | 2,841 | | Ending balance | $(88,333) | $(91,851) | $(88,333) | $(91,851) | | Beginning Balance | $(993,406) | $(1,318,705) | $(1,005,650) | $(1,495,183) | | Other comprehensive (loss) income before reclassifications | (49,647) | 48,417 | (74,904) | 188,646 | | Amounts reclassified from accumulated other comprehensive loss for amortization of net unrealized losses of debt securities transferred from available-for- sale to held-to-maturity | 35,110 | 36,994 | 72,611 | 73,242 | | Net change | (14,537) | 85,411 | (2,293) | 261,888 | | Ending balance | $(1,007,943) | $(1,233,294) | $(1,007,943) | $(1,233,295) | | Total accumulated other comprehensive loss | $(1,159,386) | $(1,395,657) | $(1,159,386) | $(1,395,657) | [1]All amounts presented are net of tax. The following table presents the amounts reclassified out of each component of accumulated other comprehensive income during the quarters and six months ended June 30, 2026 and 2025. | (In thousands) | Reclassifications Out of Accumulated Other Comprehensive Loss / Affected Line Item in the / Consolidated Statements of Operations | Reclassifications Out of Accumulated Other Comprehensive Loss / Quarters ended / June 30, 2026 | Reclassifications Out of Accumulated Other Comprehensive Loss / Quarters ended / June 30, 2025 | Reclassifications Out of Accumulated Other Comprehensive Loss / Six months ended / June 30, 2026 | Reclassifications Out of Accumulated Other Comprehensive Loss / Six months ended / June 30, 2025 | | --- | --- | --- | --- | --- | --- | | Adjustment of pension and postretirement benefit plans | | | | | | | Amortization of net losses | Other operating expenses | $(2,258) | $(2,272) | $(4,516) | $(4,545) | | | Total before tax | (2,258) | (2,272) | (4,516) | (4,545) | | | Income tax benefit | 847 | 852 | 1,694 | 1,704 | | | Total net of tax | $(1,411) | $(1,420) | $(2,822) | $(2,841) | | Unrealized net holding losses on debt securities | | | | | | | Amortization of unrealized net losses of debt securities transferred to held-to-maturity | Interest income from investment securities | $(43,886) | $(46,242) | $(90,762) | $(91,552) | | | Total before tax | (43,886) | (46,242) | (90,762) | (91,552) | | | Income tax benefit | 8,776 | 9,248 | 18,151 | 18,310 | | | Total net of tax | $(35,110) | $(36,994) | $(72,611) | $(73,242) | | | Total reclassification adjustments, net of tax | $(36,521) | $(38,414) | $(75,433) | $(76,083) | 69 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) ### Note 15 - Guarantees The Corporation has obligations upon the occurrence of certain events under financial guarantees provided in certain contractual agreements. Also, from time to time, the Corporation securitized mortgage loans into guaranteed mortgage-backed securities subject in certain instances, to lifetime credit recourse on the loans that serve as collateral for the mortgage-backed securities. The Corporation has not sold any mortgage loans subject to credit recourse since 2009. Also, from time to time, the Corporation may sell, in bulk sale transactions, residential mortgage loans and Small Business Administration (“SBA”) commercial loans subject to credit recourse or to certain representations and warranties from the Corporation to the purchaser. These representations and warranties may relate, for example, to borrower creditworthiness, loan documentation, collateral, prepayment and early payment defaults. The Corporation may be required to repurchase the loans under the credit recourse agreements or representation and warranties. At June 30, 2026, the Corporation serviced $399.7 million (December 31, 2025 - $428.9 million) in residential mortgage loans subject to credit recourse provisions, principally loans associated with FNMA and FHLMC residential mortgage loan securitization programs. In the event of any customer default, pursuant to the credit recourse provided, the Corporation is required to repurchase the loan or reimburse the third-party investor for the loss incurred. The maximum potential amount of future payments that the Corporation would be required to make under the recourse arrangements in the event of nonperformance by the borrowers is equivalent to the total outstanding balance of the residential mortgage loans serviced with recourse and interest, if applicable. During the quarter and six months ended June 30, 2026, the Corporation repurchased $0.1 million and $0.4 million, respectively, of unpaid principal balance in mortgage loans subject to the credit recourse provisions (June 30, 2025 - $0.5 million and $0.8 million, respectively). In the event of nonperformance by the borrower, the Corporation has rights to the underlying collateral securing the mortgage loan. The Corporation suffers ultimate losses on these loans when the proceeds from a foreclosure sale of the property underlying a defaulted mortgage loan are less than the outstanding principal balance of the loan plus any uncollected interest advanced and the costs of holding and disposing the related property. At June 30, 2026, the Corporation’s liability established to cover the estimated credit loss exposure related to loans sold or serviced with credit recourse amounted to $2.0 million (December 31, 2025 - $2.5 million). From time to time, the Corporation sells loans and agrees to indemnify the purchaser for credit losses or any breach of certain representations and warranties made in connection with the sale. Servicing agreements relating to the mortgage-backed securities programs of FNMA, FHLMC and GNMA, and to mortgage loans sold or serviced to certain other investors, including FHLMC, require the Corporation to advance funds to make scheduled payments of principal, interest, taxes and insurance, if such payments have not been received from the borrowers. At June 30, 2026, the Corporation serviced $7.8 billion in mortgage loans for third-parties, including the loans serviced with credit recourse (December 31, 2025 - $8.2 billion). The Corporation generally recovers funds advanced pursuant to these arrangements from the mortgage owner, from liquidation proceeds when the mortgage loan is foreclosed or, in the case of FHA/VA loans, under the applicable FHA and VA insurance and guarantees programs. However, in the meantime, the Corporation must absorb the cost of the funds it advances during the time the advance is outstanding. The Corporation must also bear the costs of attempting to collect on delinquent and defaulted mortgage loans. In addition, if a defaulted loan is not cured, the mortgage loan would be canceled as part of the foreclosure proceedings and the Corporation would not receive any future servicing income with respect to that loan. At June 30, 2026, the outstanding balance of funds advanced by the Corporation under such mortgage loan servicing agreements was $23.8 million (December 31, 2025 - $30.3 million). To the extent the mortgage loans underlying the Corporation’s servicing portfolio experience increased delinquencies, the Corporation would be required to dedicate additional cash resources to comply with its obligation to advance funds as well as incur additional administrative costs related to increases in collection efforts. Popular, Inc. Holding Company (“PIHC”) fully and unconditionally guarantees certain borrowing obligations issued by certain of its 100% owned consolidated subsidiaries amounting to $94.3 million at June 30, 2026 and December 31, 2025, respectively. In addition, at both June 30, 2026 and December 31, 2025, PIHC fully and unconditionally guaranteed on a subordinated basis $192.7 million of capital securities (trust preferred securities) issued by wholly-owned issuing trust entities to the extent set forth in the applicable guarantee agreement. Refer to Note 17 to the Consolidated Financial Statements in the 2025 Form 10-K for further information on the trust preferred securities. ### Note 16 - Commitments and contingencies Off-balance sheet risk The Corporation is a party to financial instruments with off-balance sheet credit risk in the normal course of business to meet the financial needs of its customers. These financial instruments include loan commitments, letters of credit and standby letters of credit. These 70 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, standby letters of credit and financial guarantees is represented by the contractual notional amounts of those instruments. The Corporation uses the same credit policies in making these commitments and conditional obligations as it does for those reflected on the Consolidated Statements of Financial Condition. Financial instruments with off-balance sheet credit risk, whose contract amounts represent potential credit risk as of the end of the periods presented were as follows: | (In thousands) | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | Commitments to extend credit: | | | | Credit card lines | $7,001,118 | $6,415,208 | | Commercial lines of credit | 4,359,079 | 4,257,505 | | Construction lines of credit | 1,068,649 | 1,197,319 | | Other consumer unused credit commitments | 290,569 | 277,635 | | Commercial letters of credit | 8,957 | 21,248 | | Standby letters of credit | 134,686 | 111,554 | | Commitments to originate or fund mortgage loans | 21,709 | 20,099 | At June 30, 2026 and December 31, 2025, the Corporation maintained a reserve of $14.9 million and $14.4 million, respectively, for potential losses associated with unfunded loan commitments related to commercial and construction lines of credit. Other commitments At June 30, 2026 and December 31, 2025, the Corporation also maintained other non-credit commitments for $5.1 million and $6.8 million, respectively, primarily for the acquisition of other investments. Business concentration Since the Corporation’s business activities are concentrated primarily in Puerto Rico, its results of operations and financial condition are dependent upon the general trends of the Puerto Rico economy and, in particular, the residential and commercial real estate markets. The concentration of the Corporation’s operations in Puerto Rico exposes it to greater risk than other banking companies with a wider geographic base. Its asset and revenue composition by geographical area is presented in Note 26 to the Consolidated Financial Statements. Puerto Rico has faced significant fiscal and economic challenges for over a decade. In response to such challenges, the U.S. Congress enacted PROMESA in 2016, which, among other things, established the Oversight Board and a framework for the restructuring of the debts of the Commonwealth, its instrumentalities and municipalities. The Commonwealth and several of its instrumentalities have availed themselves of debt restructuring proceedings under PROMESA. As of the date of this report, while municipalities have been designated as covered entities under PROMESA, no municipality has commenced or has been authorized by the Oversight Board to commence, any such debt restructuring proceeding under PROMESA. At June 30, 2026, the Corporation’s direct exposure to the Puerto Rico government and its instrumentalities and municipalities totaled $464.1 million, of which $414.7 million were outstanding ($391.3 million and $342.9 million at December 31, 2025). The Corporation’s exposure at June 30, 2026 included up to $47.4 million in Automated Clearing House (“ACH”) transaction settlement exposure, none of which was outstanding. Of the amount outstanding, $407.6 million consists of loans and $7.1 million are securities ($333.2 million and $8.8 million at December 31, 2025). Substantially all of the amount outstanding at June 30, 2026 and December 31, 2025 were obligations from various Puerto Rico municipalities. In most cases, these were “general obligations" of a municipality, to which the applicable municipality has pledged its good faith, credit and unlimited taxing power, or “special obligations" of a municipality, to which the applicable municipality has pledged other revenues. At June 30, 2026, approximately 81% of the Corporation’s exposure to municipal loans and securities was concentrated in the municipalities of San Juan, Guaynabo, Carolina and Caguas. The following table details the loans and investments representing the Corporation’s direct exposure to the Puerto Rico government according to their maturities as of June 30, 2026: 71 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) | (In thousands) | Investment Portfolio | Loans | Total Outstanding | Total Exposure | | --- | --- | --- | --- | --- | | Central Government | | | | | | Within 1 year | $42 | $- | $42 | $47,442 | | Total Central Government | 42 | - | 42 | 47,442 | | Municipalities | | | | | | Within 1 year | 2,720 | 11,574 | 14,294 | 16,294 | | After 1 to 5 years | 3,910 | 126,585 | 130,495 | 130,495 | | After 5 to 10 years | 450 | 238,424 | 238,874 | 238,874 | | After 10 years | - | 30,991 | 30,991 | 30,991 | | Total Municipalities | 7,080 | 407,574 | 414,654 | 416,654 | | Total Direct Government Exposure | $7,122 | $407,574 | $414,696 | $464,096 | In addition, at June 30, 2026, the Corporation had $199.7 million in loans insured or securities issued by Puerto Rico governmental entities but for which the principal source of repayment is non-governmental ($209.3 million at December 31, 2025). These included $164.9 million in residential mortgage loans insured by the Puerto Rico Housing Finance Authority (“HFA’’), a governmental instrumentality that has been designated as a covered entity under PROMESA (December 31, 2025 - $166.9 million). These mortgage loans are secured by first mortgages on Puerto Rico residential properties and the HFA insurance covers losses in the event of a borrower default and upon the satisfaction of certain other conditions. The Corporation also had at June 30, 2026, $34.8 million in bonds issued by HFA which are secured by second mortgage loans on Puerto Rico residential properties, and for which HFA also provides insurance to cover losses in the event of a borrower default and upon the satisfaction of certain other conditions (December 31, 2025 - $35.5 million). In the event that the mortgage loans insured by HFA and held by the Corporation directly or those serving as collateral for the HFA bonds default and the collateral is insufficient to satisfy the outstanding balance of these loans, HFA’s ability to honor its insurance will depend, among other factors, on the financial condition of HFA at the time such obligations become due and payable. The Corporation does not consider the government guarantee when estimating the credit losses associated with this portfolio. Although the Governor is currently authorized by local legislation to impose a temporary moratorium on the financial obligations of the HFA, a moratorium on such obligations has not been imposed as of the date hereof. BPPR’s commercial loan portfolio also includes loans to private borrowers who are service providers, lessors, suppliers or have other relationships with the government. These borrowers could be negatively affected by the Commonwealth’s fiscal crisis and the ongoing Title III proceedings under PROMESA. Similarly, BPPR’s mortgage and consumer loan portfolios include loans to government employees and retirees, which could also be negatively affected by fiscal measures such as employee layoffs or furloughs or reductions in pension benefits. In addition, $2.7 billion of residential mortgages and $84.3 million commercial loans were insured or guaranteed by the U.S. Government or its agencies at June 30, 2026 (compared to $2.5 billion and $80.5 million, respectively, at December 31, 2025). The Corporation also had U.S. Treasury and obligations from the U.S. Government, its agencies or government sponsored entities within the portfolio of available-for- sale and held-to-maturity securities as described in Note 5 and 6 to the Consolidated Financial Statements. At June 30, 2026, the Corporation had operations in the United States Virgin Islands (the “USVI") and had $28.3 million in direct exposure to USVI government entities (December 31, 2025 - $28.3 million). The USVI has been experiencing a number of fiscal and economic challenges that could adversely affect the ability of its public corporations and instrumentalities to service their outstanding debt obligations. At June 30, 2026, the Corporation had operations in the British Virgin Islands (“BVI”) and it had a loan portfolio amounting to $197.6 million comprised of various retail and commercial clients, compared to a loan portfolio of $195.3 million at December 31, 2025. At June 30, 2026, the Corporation had no significant exposure to a single borrower in the BVI. Legal Proceedings The nature of Popular’s business ordinarily generates claims, litigation, arbitration, regulatory and governmental investigations, and legal and administrative cases and proceedings (collectively, “Legal Proceedings”). Popular’s Legal Proceedings may involve various lines of business and include claims relating to contract, torts, consumer protection, securities, antitrust, employment, tax and other laws. The recovery sought in Legal Proceedings may include substantial or indeterminate compensatory damages, punitive damages, injunctive relief, or recovery on a class-wide basis. When the Corporation determines that it has meritorious defenses to the claims asserted, it vigorously defends itself. The Corporation will consider the settlement of cases (including cases where it has meritorious defenses) when, in management’s judgment, it is in the best interest of the Corporation and its stockholders to do so. On at least a quarterly basis, Popular assesses its liabilities and contingencies relating to outstanding Legal Proceedings utilizing the most current information available. For matters where it is probable that the Corporation will incur a material loss and the amount can be reasonably estimated, the Corporation establishes an accrual for the loss. Once established, the accrual is adjusted on at least a quarterly basis to reflect any relevant 72 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) developments, as appropriate. For matters where a material loss is not probable, or the amount of the loss cannot be reasonably estimated, no accrual is established. In certain cases, exposure to loss exists in excess of any accrual to the extent such loss is reasonably possible, but not probable. Management believes and estimates that the range of reasonably possible losses (with respect to those matters where such limits may be determined in excess of amounts accrued) for current Legal Proceedings ranged from $0 to approximately $11.3 million as of June 30, 2026. In certain cases, management cannot reasonably estimate the possible loss at this time. Any estimate involves significant judgment, given the varying stages of the Legal Proceedings (including the fact that many of them are currently in preliminary stages), the existence of multiple defendants in several of the current Legal Proceedings whose share of liability has yet to be determined, the numerous unresolved issues in many of the Legal Proceedings, and the inherent uncertainty of the various potential outcomes of such Legal Proceedings. Accordingly, management’s estimate will change from time-to-time, and actual losses may be more or less than the current estimate. While the outcome of Legal Proceedings is inherently uncertain, based on information currently available, advice of counsel, and available insurance coverage, management believes that the amount it has already accrued is adequate and any incremental liability arising from the Legal Proceedings in matters in which a loss amount can be reasonably estimated will not have a material adverse effect on the Corporation’s consolidated financial position. However, in the event of unexpected future developments, it is possible that the ultimate resolution of these matters in a reporting period, if unfavorable, could have a material adverse effect on the Corporation’s consolidated financial position for that period. ### Note 17 - Non-consolidated variable interest entities The Corporation is involved with two statutory trusts which it created to issue trust preferred securities to the public. These trusts are deemed to be variable interest entities (“VIEs”) since the equity investors at risk have no substantial decision-making rights. The Corporation does not hold any variable interest in the trusts, and therefore, cannot be the trusts’ primary beneficiary. Furthermore, the Corporation concluded that it did not hold a controlling financial interest in these trusts since the decisions of the trusts are predetermined through the trust documents and the guarantee of the trust preferred securities is irrelevant since in substance the sponsor is guaranteeing its own debt. Also, the Corporation is involved with various special purpose entities mainly in guaranteed mortgage securitization transactions, including GNMA and FNMA. The Corporation has also engaged in securitization transactions with FHLMC, but considers its exposure in the form of servicing fees and servicing advances not to be significant at June 30, 2026. These special purpose entities are deemed to be VIEs since they lack equity investments at risk. The Corporation’s continuing involvement in these guaranteed loan securitizations includes owning certain beneficial interests in the form of securities as well as the servicing rights retained. The Corporation is not required to provide additional financial support to any of the variable interest entities to which it has transferred the financial assets. The mortgage-backed securities, to the extent retained, are classified in the Consolidated Statements of Financial Condition as available-for-sale or trading securities. The Corporation concluded that, essentially, these entities (FNMA and GNMA) control the design of their respective VIEs, dictate the quality and nature of the collateral, require the underlying insurance, set the servicing standards via the servicing guides and can change them at will, and can remove a primary servicer with cause, and without cause in the case of FNMA. Moreover, through their guarantee obligations, agencies (FNMA and GNMA) have the obligation to absorb losses that could be potentially significant to the VIE. The Corporation holds variable interests in these VIEs in the form of agency mortgage-backed securities and collateralized mortgage obligations, including those securities originated by the Corporation and those acquired from third parties. Additionally, the Corporation holds agency mortgage-backed securities and agency collateralized mortgage obligations issued by third party VIEs in which it has no other form of continuing involvement. Refer to Note 16 to the Consolidated Financial Statements for additional information on the debt securities outstanding at June 30, 2026 and December 31, 2025, which are classified as available-for-sale and trading securities in the Consolidated Statements of Financial Condition. In addition, the Corporation holds variable interests in the form of servicing fees, since it retains the right to service the transferred loans in those government-sponsored special purpose entities (“SPEs”) and may also purchase the right to service loans in other government-sponsored SPEs that were transferred to those SPEs by a third-party. The following table presents the carrying amount and classification of the assets related to the Corporation’s variable interests in non- consolidated VIEs and the maximum exposure to loss as a result of the Corporation’s involvement as servicer of GNMA and FNMA loans at June 30, 2026 and December 31, 2025. 73 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) | (In thousands) | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | Assets | | | | Servicing assets: | | | | Mortgage servicing rights | $72,882 | $74,236 | | Total servicing assets | $72,882 | $74,236 | | Other assets: | | | | Servicing advances | $3,242 | $3,385 | | Total other assets | $3,242 | $3,385 | | Total assets | $76,124 | $77,621 | | Maximum exposure to loss | $76,124 | $77,621 | The size of the non-consolidated VIEs, in which the Corporation has a variable interest in the form of servicing fees, measured as the total unpaid principal balance of the loans, amounted to $5.7 billion at June 30, 2026 (December 31, 2025 - $6.0 billion). The Corporation determined that the maximum exposure to loss includes the fair value of the MSRs and the assumption that the servicing advances at June 30, 2026 and December 31, 2025, will not be recovered. The agency debt securities are not included as part of the maximum exposure to loss since they are guaranteed by the related agencies. ASU 2009-17 requires that an ongoing primary beneficiary assessment should be made to determine whether the Corporation is the primary beneficiary of any of the VIEs it is involved with. The conclusion on the assessment of these non-consolidated VIEs has not changed since their initial evaluation. The Corporation concluded that it is still not the primary beneficiary of these VIEs, and therefore, these VIEs are not required to be consolidated in the Corporation’s financial statements at June 30, 2026. ### Note 18 - Related party transactions Centro Financiero BHD, S.A. At June 30, 2026, the Corporation had a 15.63% equity interest in Centro Financiero BHD, S.A. (“BHD"), one of the largest banking and financial services groups in the Dominican Republic. During the six months ended June 30, 2026, the Corporation recorded $52.5 million in equity pickup (June 30, 2025 - $13.0 million), including income of $30.4 million from BHD's net earnings (June 30, 2025 - $19.9 million) and $22.1 million recorded through Other Comprehensive Income (June 30, 2025 - $(6.9) million) related to foreign currency translation adjustments and changes in the fair value of available for sale securities. As of June 30, 2026, the investment in BHD had a carrying amount of $281.5 million (December 31, 2025 - $249.4 million) and the Corporation received $20.4 million in cash dividend distributions during the six months ended June 30, 2026 (June 30, 2025 - $20.0 million). ### Note 19 - Fair value measurement ASC Subtopic 820-10 “Fair Value Measurements and Disclosures" establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels in order to increase consistency and comparability in fair value measurements and disclosures. The hierarchy is broken down into three levels based on the reliability of inputs as follows: - Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date. Valuation on these instruments does not necessitate a significant degree of judgment since valuations are based on quoted prices that are readily available in an active market. - Level 2 - Quoted prices other than those included in Level 1 that are observable either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or that can be corroborated by observable market data for substantially the full term of the financial instrument. - Level 3 - Inputs are unobservable and significant to the fair value measurement. Unobservable inputs reflect the Corporation’s own judgments about assumptions that market participants would use in pricing the asset or liability. The Corporation maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Fair value is based upon quoted market prices when available. If listed prices or quotes are not available, the Corporation employs internally-developed models that primarily use market-based inputs including yield curves, interest rates, 74 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) volatilities, and credit curves, among others. Valuation adjustments are limited to those necessary to ensure that the financial instrument’s fair value is adequately representative of the price that would be received or paid in the marketplace. These adjustments include amounts that reflect counterparty credit quality, the Corporation’s credit standing, constraints on liquidity and unobservable parameters that are applied consistently. There have been no changes in the Corporation’s methodologies used to estimate the fair value of assets and liabilities from those disclosed in the 2025 Form 10-K. The estimated fair value may be subjective in nature and may involve uncertainties and matters of significant judgment for certain financial instruments. Changes in the underlying assumptions used in calculating fair value could significantly affect the results. Fair Value on a Recurring and Nonrecurring Basis The following fair value hierarchy tables present information about the Corporation’s assets and liabilities measured at fair value on a recurring basis at June 30, 2026 and December 31, 2025: | (In thousands) | At June 30, 2026 / Level 1 | At June 30, 2026 / Level 2 | At June 30, 2026 / Level 3 | Measured at NAV | Total | | --- | --- | --- | --- | --- | --- | | RECURRING FAIR VALUE MEASUREMENTS | | | | | | | Assets | | | | | | | Debt securities available-for-sale: | | | | | | | U.S. Treasury securities | $10,040,663 | $10,229,945 | $- | $- | $20,270,608 | | Collateralized mortgage obligations - federal agencies | - | 89,533 | - | - | 89,533 | | Mortgage-backed securities | - | 4,431,815 | 357 | - | 4,432,172 | | Other | - | - | 521 | - | 521 | | Total debt securities available-for-sale | $10,040,663 | $14,751,293 | $878 | $- | $24,792,834 | | Trading account debt securities, excluding derivatives: | | | | | | | U.S. Treasury securities | $3,405 | $349 | $- | $- | $3,754 | | Obligations of Puerto Rico, States and political subdivisions | - | 45 | - | - | 45 | | Collateralized mortgage obligations | - | 514 | - | - | 514 | | Mortgage-backed securities | - | 26,684 | 85 | - | 26,769 | | Other | - | - | 89 | - | 89 | | Total trading account debt securities, excluding derivatives | $3,405 | $27,592 | $174 | $- | $31,171 | | Equity securities | $- | $56,034 | $- | $1,386 | $57,420 | | Mortgage servicing rights | - | - | 94,485 | - | 94,485 | | Loans held-for-sale | - | 4,879 | - | - | 4,879 | | Derivatives | - | 28,518 | - | - | 28,518 | | Total assets measured at fair value on a recurring basis | $10,044,068 | $14,868,316 | $95,537 | $1,386 | $25,009,307 | | Liabilities | | | | | | | Derivatives | $- | $(26,953) | $- | $- | $(26,953) | | Total liabilities measured at fair value on a recurring basis | $- | $(26,953) | $- | $- | $(26,953) | 75 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) | (In thousands) | At December 31, 2025 / Level 1 | At December 31, 2025 / Level 2 | At December 31, 2025 / Level 3 | Measured at NAV | Total | | --- | --- | --- | --- | --- | --- | | RECURRING FAIR VALUE MEASUREMENTS | | | | | | | Assets | | | | | | | Debt securities available-for-sale: | | | | | | | U.S. Treasury securities | $6,576,313 | $9,147,141 | $- | $- | $15,723,454 | | Collateralized mortgage obligations - federal agencies | - | 100,241 | - | - | 100,241 | | Mortgage-backed securities | - | 4,750,122 | 405 | - | 4,750,527 | | Other | - | - | 750 | - | 750 | | Total debt securities available-for-sale | $6,576,313 | $13,997,504 | $1,155 | $- | $20,574,972 | | Trading account debt securities, excluding derivatives: | | | | | | | U.S. Treasury securities | $12,450 | $10 | $- | $- | $12,460 | | Obligations of Puerto Rico, States and political subdivisions | - | 45 | - | - | 45 | | Collateralized mortgage obligations | - | 567 | - | - | 567 | | Mortgage-backed securities | - | 23,314 | 84 | - | 23,398 | | Other | - | - | 99 | - | 99 | | Total trading account debt securities, excluding derivatives | $12,450 | $23,936 | $183 | $- | $36,569 | | Equity securities | $- | $50,632 | $- | $852 | $51,484 | | Mortgage servicing rights | - | - | 96,356 | - | 96,356 | | Loans held-for-sale | - | 9,998 | - | - | 9,998 | | Derivatives | - | 27,913 | - | - | 27,913 | | Total assets measured at fair value on a recurring basis | $6,588,763 | $14,109,983 | $97,694 | $852 | $20,797,292 | | Liabilities | | | | | | | Derivatives | $- | $(25,740) | $- | $- | $(25,740) | | Total liabilities measured at fair value on a recurring basis | $- | $(25,740) | $- | $- | $(25,740) | Loans held-for-sale measured at fair value Loans held-for-sale measured at fair value were priced based on secondary market prices. These loans are classified as Level 2. The following tables summarize the difference between the aggregate fair value and the aggregate unpaid principal balance for loans held- for-sale measured under the fair value option as of June 30, 2026 and December 31, 2025. | (In thousands) | June 30, 2026 / Fair Value | June 30, 2026 / Aggregate Unpaid Principal Balance | June 30, 2026 / Difference | | --- | --- | --- | --- | | Loans held for sale | $4,879 | $4,867 | $12 | | (In thousands) | December 31, 2025 / Fair Value | December 31, 2025 / Aggregate Unpaid Principal Balance | December 31, 2025 / Difference | | --- | --- | --- | --- | | Loans held for sale | $9,998 | $9,839 | $159 | No loans held-for-sale under the fair value option were 90 or more days past due or on non-accrual status as of June 30, 2026 and December 31, 2025. The fair value information included in the following tables is not as of period end, but as of the date that the fair value measurement was recorded during the six months ended June 30, 2026 and 2025 and excludes nonrecurring fair value measurements of assets no longer outstanding as of the reporting date. 76 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _Six months ended June 30, 2026_ | (In thousands) / NONRECURRING FAIR VALUE MEASUREMENTS / Assets | Level 1 | Level 2 | Level 3 | Write-downs | | --- | --- | --- | --- | --- | | Loans held-in-porfolio [1] | $- | $- | $17,111 | $(2,069) | | Loans held-for-sale [2] | - | 83,700 | - | (71,300) | | Other real estate owned [3] | - | - | 2,992 | (518) | | Other foreclosed assets [3] | - | - | 184 | (36) | | Total assets measured at fair value on a nonrecurring basis | $- | $83,700 | $20,287 | $(73,923) | [1]Relates mainly to certain impaired collateral dependent loans. The impairment was measured based on the fair value of the collateral, which is derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations. Costs to sell are excluded from the reported fair value amount. [2]Relates to impaired commercial loan for which the Corporation has the intent to sell as of June 30, 2026. [3]Represents the fair value of foreclosed real estate and other collateral owned that were written down to their fair value. Costs to sell are excluded from the reported fair value amount. _Six months ended June 30, 2025_ | (In thousands) / NONRECURRING FAIR VALUE MEASUREMENTS / Assets | Level 1 | Level 2 | Level 3 | Write-downs | | --- | --- | --- | --- | --- | | Loans[1] | $- | $- | $4,361 | $(91) | | Other real estate owned [2] | - | - | 3,919 | (1,573) | | Other foreclosed assets [2] | - | - | 162 | (46) | | Total assets measured at fair value on a nonrecurring basis | $- | $- | $8,442 | $(1,710) | [1]Relates mainly to certain impaired collateral dependent loans. The impairment was measured based on the fair value of the collateral, which is derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations. Costs to sell are excluded from the reported fair value amount. [2]Represents the fair value of foreclosed real estate and other collateral owned that were written down to their fair value. Costs to sell are excluded from the reported fair value amount. The following tables present the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the quarters and six months ended June 30, 2026 and 2025. _Quarters ended June 30, 2026_ | (In thousands) | MBSclassifiedas debtsecuritiesavailable-for-sale | Othersecuritiesclassified asdebt securitiesavailable-for-sale | MBSclassifiedas tradingaccountdebtsecurities | Othersecuritiesclassifiedas tradingaccount debtsecurities | Mortgageservicingrights | Totalassets | | --- | --- | --- | --- | --- | --- | --- | | Balance at March 31, 2026 | $383 | $750 | $85 | $95 | $94,232 | $95,545 | | Gains (losses) included in earnings | (1) | - | - | (6) | (232) | (239) | | Additions | - | - | - | - | 485 | 485 | | Settlements | (25) | (229) | - | - | - | (254) | | Balance at June 30, 2026 | $357 | $521 | $85 | $89 | $94,485 | $95,537 | | Changes in unrealized gains (losses) included inearnings relating to assets still held at June 30, 2026 | $- | $- | $- | $- | $2,005 | $2,005 | 77 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _Six months ended June 30, 2026_ | (In thousands) | MBSclassifiedas debtsecuritiesavailable-for-sale | Othersecuritiesclassified asdebt securitiesavailable-for-sale | MBSclassifiedas tradingaccountdebtsecurities | Othersecuritiesclassifiedas tradingaccount debtsecurities | Mortgageservicingrights | Totalassets | | --- | --- | --- | --- | --- | --- | --- | | Balance at January 1, 2026 | $405 | $750 | $84 | $99 | $96,356 | $97,694 | | Gains (losses) included in earnings | - | - | 1 | (10) | (2,871) | (2,880) | | Gains (losses) included in OCI | 2 | - | - | - | - | 2 | | Additions | - | - | - | - | 1,000 | 1,000 | | Settlements | (50) | (229) | - | - | - | (279) | | Balance at June 30, 2026 | $357 | $521 | $85 | $89 | $94,485 | $95,537 | | Changes in unrealized gains (losses) included inearnings relating to assets still held at June 30, 2026 | $- | $- | $1 | $18 | $1,532 | $1,551 | _Quarter ended June 30, 2025_ | (In thousands) | MBSclassifiedas debtsecuritiesavailable-for-sale | Othersecuritiesclassified asdebt securitiesavailable-for-sale | MBSclassifiedas tradingaccount debtsecurities | Othersecuritiesclassifiedas tradingaccount debtsecurities | Mortgageservicingrights | Totalassets | | --- | --- | --- | --- | --- | --- | --- | | Balance at March 31, 2025 | $457 | $750 | $84 | $127 | $104,743 | $106,161 | | Gains (losses) included in earnings | - | - | - | (5) | (1,954) | (1,959) | | Gains (losses) included in OCI | - | - | - | - | - | - | | Additions | - | - | - | - | 288 | 288 | | Settlements | (25) | - | - | - | - | (25) | | Balance at June 30, 2025 | $432 | $750 | $84 | $122 | $103,077 | $104,465 | | Changes in unrealized gains (losses) included inearnings relating to assets still held at June 30, 2025 | $- | $- | $- | $8 | $348 | $356 | _Six months ended June 30, 2025_ | (In thousands) | MBSclassifiedas debtsecuritiesavailable-for-sale | Othersecuritiesclassified asdebt securitiesavailable-for-sale | CMOsclassifiedas tradingaccount debtsecurities | MBSclassified astrading accountsecurities | Othersecuritiesclassifiedas tradingaccount debtsecurities | Mortgageservicingrights | Totalassets | | --- | --- | --- | --- | --- | --- | --- | --- | | Balance at January 1, 2025 | $484 | $2,250 | $- | $84 | $133 | $108,103 | $111,054 | | Gains (losses) included in earnings | - | - | - | - | (11) | (5,524) | (5,535) | | Gain (losses) included in OCI | (2) | | | | | | (2) | | Additions | - | - | - | - | - | 498 | 498 | | Settlements | (50) | - | - | - | - | - | (50) | | Transfers out of Level 3 | $- | $(1,500) | $- | $- | $- | $- | $(1,500) | | Balance at June 30, 2025 | $432 | $750 | $- | $84 | $122 | $103,077 | $104,465 | | Changes in unrealized gains (losses)included in earnings relating to assetsstill held at June 30, 2025 | $- | $- | $- | $- | $16 | $(977) | $(961) | Gains and losses (realized and unrealized) included in earnings for the quarters and six months ended June 30, 2026 and 2025 for Level 3 assets and liabilities included in the previous tables are reported in the Consolidated Statements of Operations as follows: | (In thousands) | Quarter ended June 30, 2026 / Total gains(losses) includedin earnings | Quarter ended June 30, 2026 / Changes in unrealized gains (losses) relating toassets still held at reporting date | Six months ended June 30, 2026 / Total gains(losses) includedin earnings | Six months ended June 30, 2026 / Changes in unrealized gains (losses) relating toassets still held at reporting date | | --- | --- | --- | --- | --- | | Mortgage banking activities | $(232) | $2,005 | $(2,871) | $1,532 | | Trading account profit (loss) | (6) | - | (9) | 19 | | Total | $(238) | $2,005 | $(2,880) | $1,551 | 78 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) | (In thousands) | Quarter ended June 30, 2025 / Total gains(losses) includedin earnings | Quarter ended June 30, 2025 / Changes in unrealized gains (losses) relating toassets still held at reporting date | Six months ended June 30, 2025 / Total gains(losses) includedin earnings | Six months ended June 30, 2025 / Changes in unrealized gains (losses) relating toassets still held at reporting date | | --- | --- | --- | --- | --- | | Mortgage banking activities | $(1,954) | $348 | $(5,524) | $(977) | | Trading account profit (loss) | (5) | 8 | (11) | 16 | | Provision for credit losses | - | - | - | - | | Total | $(1,959) | $356 | $(5,535) | $(961) | The following tables include quantitative information about significant unobservable inputs used to derive the fair value of Level 3 instruments, excluding those instruments for which the unobservable inputs were not developed by the Corporation such as prices of prior transactions and/or unadjusted third-party pricing sources at June 30, 2026 and 2025. | (In thousands) | Fair value at June 30, 2026 | Valuation technique | Unobservable inputs | Weighted average (range) [1] | | --- | --- | --- | --- | --- | | Other - trading | $89 | Discounted cash flow model | Weighted average life | 2 years | | | | | Yield | 12.0% | | | | | Prepayment speed | 10.8% | | Loans held-in-portfolio | $17,111 | External appraisal | Haircut applied on | | | | | | external appraisals | 23.8% (5.0% - 35.0%) | [1]Weighted average of significant unobservable inputs used to develop Level 3 fair value measurements were calculated by relative fair value. [2]Loans held-in-portfolio in which haircuts were not applied to external appraisals were excluded from this table. | (In thousands) | Fair value at June 30, 2025 | Valuation technique | Unobservable inputs | Weighted average (range) [1] | | --- | --- | --- | --- | --- | | Other - trading | $122 | Discounted cash flow model | Weighted average life | 2 years | | | | | Yield | 12.0% | | | | | Prepayment speed | 10.8% | | Loans held-in-portfolio | $4,361 | External appraisal | Haircut applied on | | | | | | external appraisals | 5.0% | [1]Weighted average of significant unobservable inputs used to develop Level 3 fair value measurements were calculated by relative fair value. [2]Loans held-in-portfolio in which haircuts were not applied to external appraisals were excluded from this table. ### Note 20 - Fair value of financial instruments The fair value of financial instruments is the amount at which an asset or obligation could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. For those financial instruments with no quoted market prices available, fair values have been estimated using present value calculations or other valuation techniques, as well as management’s best judgment with respect to current economic conditions, including discount rates, estimates of future cash flows, and prepayment assumptions. Many of these estimates involve various assumptions and may vary significantly from amounts that could be realized in actual transactions. The fair values reflected herein have been determined based on the prevailing rate environment at June 30, 2026 and December 31, 2025, as applicable. In different interest rate environments, fair value estimates can differ significantly, especially for certain fixed rate financial instruments. In addition, the fair values presented do not attempt to estimate the value of the Corporation’s fee generating businesses and anticipated future business activities, that is, they do not represent the Corporation’s value as a going concern. There have been no changes in the Corporation’s valuation methodologies and inputs used to estimate the fair values for each class of financial assets and liabilities not measured at fair value. The following tables present the carrying amount and estimated fair values of financial instruments with their corresponding level in the fair value hierarchy. The aggregate fair value amounts of the financial instruments disclosed do not represent management’s estimate of the underlying value of the Corporation. 79 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _June 30, 2026_ | (In thousands) | Carrying / amount | Level 1 | Level 2 | Level 3 | Measured / at NAV | Fair value | | --- | --- | --- | --- | --- | --- | --- | | Financial Assets: | | | | | | | | Cash and due from banks | $365,013 | $365,013 | $- | $- | $- | $365,013 | | Money market investments | 4,555,489 | 4,545,508 | 9,981 | - | - | 4,555,489 | | Trading account debt securities, excluding derivatives [1] | 31,168 | 3,405 | 27,590 | 173 | - | 31,168 | | Debt securities available-for-sale [1] | 24,792,835 | 10,040,663 | 14,751,294 | 878 | - | 24,792,835 | | Debt securities held-to-maturity: | | | | | | | | U.S. Treasury securities | $6,154,728 | $- | $6,133,383 | $- | $- | $6,133,383 | | Obligations of Puerto Rico, States and political subdivisions | 35,619 | - | - | 36,338 | - | 36,338 | | Collateralized mortgage obligation-federal agency | 1,483 | - | 1,295 | - | - | 1,295 | | Securities in wholly owned statutory business trusts | 5,960 | - | 5,960 | - | - | 5,960 | | Total debt securities held-to-maturity | $6,197,790 | $- | $6,140,638 | $36,338 | $- | $6,176,976 | | Equity securities: | | | | | | | | FHLB stock | $67,428 | $- | $67,428 | $- | $- | $67,428 | | FRB stock | 104,788 | - | 104,788 | - | - | 104,788 | | Other investments | 64,458 | - | 56,041 | 7,068 | 1,386 | 64,495 | | Total equity securities | $236,674 | $- | $228,257 | $7,068 | $1,386 | $236,711 | | Loans held-for-sale | $88,579 | $- | $88,579 | $- | $- | $88,579 | | Loans held-in-portfolio | 38,965,030 | - | - | 38,117,234 | - | 38,117,234 | | Mortgage servicing rights | 94,485 | - | - | 94,485 | - | 94,485 | | Derivatives | 28,518 | - | 28,518 | - | - | 28,518 | _June 30, 2026_ | (In thousands) | Carrying / amount | Level 1 | Level 2 | Level 3 | Measured / at NAV | Fair value | | --- | --- | --- | --- | --- | --- | --- | | Financial Liabilities: | | | | | | | | Deposits: | | | | | | | | Demand deposits | $60,328,037 | | $60,328,037 | $- | $- | $60,328,037 | | Time deposits | 9,905,078 | | 9,672,021 | - | - | 9,672,021 | | Total deposits | $70,233,115 | $- | $70,000,058 | $- | $- | $70,000,058 | | Assets sold under agreements to repurchase | $77,521 | $- | $106,441 | $- | $- | $106,441 | | Other short-term borrowings [2] | 675,000 | - | 675,000 | - | - | $675,000 | | Notes payable: | | | | | | | | FHLB advances | $114,620 | $- | $112,942 | $- | $- | $112,942 | | Unsecured senior debt securities | 397,277 | - | 414,004 | - | - | 414,004 | | Junior subordinated deferrable interest debentures (related to trust preferred securities) | 198,413 | - | 198,452 | - | - | 198,452 | | Total notes payable | $710,310 | $- | $725,398 | $- | $- | $725,398 | | Derivatives | $26,953 | $- | $26,953 | $- | $- | $26,953 | [1]Refer to Note 19 to the Consolidated Financial Statements for the fair value by class of financial asset and its hierarchy level. [2]Refer to Note 12 to the Consolidated Financial Statements for the composition of other short-term borrowings. 80 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _December 31, 2025_ | (In thousands) | Carrying / amount | Level 1 | Level 2 | Level 3 | Measured / at NAV | Fair value | | --- | --- | --- | --- | --- | --- | --- | | Financial Assets: | | | | | | | | Cash and due from banks | $402,755 | $402,755 | $- | $- | $- | $402,755 | | Money market investments | 4,626,506 | 4,616,272 | 10,234 | - | - | 4,626,506 | | Trading account debt securities, excluding derivatives [1] | 36,569 | 12,450 | 23,936 | 183 | - | 36,569 | | Debt securities available-for-sale [1] | 20,574,972 | 6,576,313 | 13,997,504 | 1,155 | - | 20,574,972 | | Debt securities held-to-maturity: | | | | | | | | U.S. Treasury securities | $7,268,967 | $- | $7,309,991 | $- | $- | $7,309,991 | | Obligations of Puerto Rico, States and political subdivisions | 45,295 | - | 6,766 | 39,564 | - | 46,330 | | Collateralized mortgage obligation-federal agency | 1,495 | - | 1,306 | - | - | 1,306 | | Securities in wholly owned statutory business trusts | 5,960 | - | 5,960 | - | - | 5,960 | | Total debt securities held-to-maturity | $7,321,717 | $- | $7,324,023 | $39,564 | $- | $7,363,587 | | Equity securities: | | | | | | | | FHLB stock | $68,422 | $- | $68,422 | $- | $- | $68,422 | | FRB stock | 102,665 | - | 102,665 | - | - | 102,665 | | Other investments | 58,761 | - | 50,632 | 7,817 | 852 | 59,301 | | Total equity securities | $229,848 | $- | $221,719 | $7,817 | $852 | $230,388 | | Loans held-for-sale | $9,998 | $- | $9,998 | $- | $- | $9,998 | | Loans held-in-portfolio | 38,519,462 | - | - | 37,858,044 | - | 37,858,044 | | Mortgage servicing rights | 96,356 | - | - | 96,356 | - | 96,356 | | Derivatives | 27,913 | - | 27,913 | - | - | 27,913 | _December 31, 2025_ | (In thousands) | Carrying / amount | Level 1 | Level 2 | Level 3 | Measured / at NAV | Fair value | | --- | --- | --- | --- | --- | --- | --- | | Financial Liabilities: | | | | | | | | Deposits: | | | | | | | | Demand deposits | $56,710,732 | $- | $56,710,732 | $- | $- | $56,710,732 | | Time deposits | 9,479,361 | - | 9,305,980 | - | - | 9,305,980 | | Total deposits | $66,190,093 | $- | $66,016,712 | $- | $- | $66,016,712 | | Assets sold under agreements to repurchase | $39,001 | $- | $39,004 | $- | $- | $39,004 | | Other short-term borrowings [2] | 650,000 | - | 650,000 | - | - | 650,000 | | Notes payable: | | | | | | | | FHLB advances | $164,620 | $- | $163,417 | $- | $- | $163,417 | | Unsecured senior debt securities | 396,558 | - | 419,300 | - | - | 419,300 | | Junior subordinated deferrable interest debentures (related to trust preferred securities) | 198,399 | - | 191,909 | - | - | 191,909 | | Total notes payable | $759,577 | $- | $774,626 | $- | $- | $774,626 | | Derivatives | $25,740 | $- | $25,740 | $- | $- | $25,740 | [1]Refer to Note 19 to the Consolidated Financial Statements for the fair value by class of financial asset and its hierarchy level. [2]Refer to Note 12 to the Consolidated Financial Statements for the composition of other short-term borrowings. Refer to Note 16 to the Consolidated Financial Statements for the notional amount of commitments to extend credit, which represents the unused portion of credit facilities granted to customers, and letters of credit, which represent the contractual amount that is required to be paid in the event of nonperformance, at June 30, 2026 and December 31, 2025. The fair value of commitments to extend credit and letters of credit, which are based on the fees charged to enter into those agreements, are not material to Popular’s financial statements. 81 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) ### Note 21 - Net income per common share The following table sets forth the computation of net income per common share (“EPS"), basic and diluted, for the quarters and six months ended June 30, 2026 and 2025: | (In thousands, except per share information) | Quarters ended June 30, 2026 | Quarters ended June 30, 2025 | Six months ended June 30, 2026 | Six months ended June 30, 2025 | | --- | --- | --- | --- | --- | | Net income | $278,214 | $210,440 | $523,888 | $387,942 | | Preferred stock dividends | (353) | (353) | (706) | (706) | | Net income applicable to common stock | $277,861 | $210,087 | $523,182 | $387,236 | | Average common shares outstanding | 63,880,929 | 68,050,361 | 64,347,094 | 68,661,851 | | Average potential dilutive common shares | 34,881 | 29,288 | 36,618 | 25,808 | | Average common shares outstanding - assuming dilution | 63,915,810 | 68,079,649 | 64,383,712 | 68,687,659 | | Basic EPS | $4.35 | $3.09 | $8.13 | $5.64 | | Diluted EPS | $4.35 | $3.09 | $8.13 | $5.64 | For the quarters and six months ended June 30, 2026 and 2025, the Corporation calculated the impact of potential dilutive common shares under the treasury stock method, consistent with the method used for the preparation of the financial statements for the year ended December 31, 2025. For a discussion of the calculation under the treasury stock method, refer to Note 30 of the Consolidated Financial Statements included in the 2025 Form 10-K. ### Note 22 - Revenue from contracts with customers The following table presents the Corporation’s revenue streams from contracts with customers by reportable segment for the quarters and six months ended June 30, 2026 and 2025. | (In thousands) | Quarter ended June 30, 2026 / BPPR | Quarter ended June 30, 2026 / Popular U.S. | Six months ended June 30, 2026 / BPPR | Six months ended June 30, 2026 / Popular U.S. | | --- | --- | --- | --- | --- | | Service charges on deposit accounts | 36,398 | $2,639 | $72,459 | $5,344 | | Other service fees: | | | | | | Debit card fees | 31,293 | 245 | 61,078 | 469 | | Insurance fees, excluding reinsurance | 8,663 | 2,076 | 16,583 | 4,767 | | Credit card fees, excluding late fees and membership fees | 30,134 | 353 | 57,320 | 699 | | Sale and administration of investment products | 9,998 | - | 20,185 | - | | Trust fees | 8,070 | - | 15,818 | - | | Total revenue from contracts with customers [1] | $124,556 | $5,313 | $243,443 | $11,279 | [1]The amounts include intersegment transactions of $0.4 million and $0.8 million, respectively, for the quarter and six months ended June 30, 2026. | (In thousands) | Quarter ended June 30, 2025 / BPPR | Quarter ended June 30, 2025 / Popular U.S. | Six months ended June 30, 2025 / BPPR | Six months ended June 30, 2025 / Popular U.S. | | --- | --- | --- | --- | --- | | Service charges on deposit accounts | $36,194 | $2,632 | $72,650 | $5,230 | | Other service fees: | | | | | | Debit card fees | 27,707 | 211 | 53,941 | 409 | | Insurance fees, excluding reinsurance | 8,719 | 2,223 | 16,400 | 3,910 | | Credit card fees, excluding late fees and membership fees [2] | 28,145 | 334 | 53,530 | 739 | | Sale and administration of investment products | 9,058 | - | 18,031 | - | | Trust fees | 6,879 | - | 13,510 | - | | Total revenue from contracts with customers [1] | $116,702 | $5,400 | $228,062 | $10,288 | [1]The amounts include intersegment transactions of $0.6 million and $1.2 million, respectively, for the quarter and six months ended June 30, 2025. Revenue from contracts with customers is recognized when, or as, the performance obligations are satisfied by the Corporation by transferring the promised services to the customers based on ASC Topic 606 Revenue from Contracts with Customers. Revenue streams identified from contracts with customers, as listed above, will have certain timing for recognition based on the nature of the contract including when the obligation is satisfied and/or services are rendered. Service charges on deposit accounts, debit card fees, and credit card fees are recognized at a point in time, upon the occurrence of an activity or an event. Interchange fees on debit and credit card transactions are recognized upon settlement of the payment transaction. For more details over nature and timing of revenue streams from 82 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) contracts with customers refer to Note 31 on the 2025 Form 10-K for a complete description of the nature and timing of revenue streams from contracts with customers. ### Note 23 - Stock-based compensation Incentive Plan On May 12, 2020, the stockholders of the Corporation approved the Popular, Inc. 2020 Omnibus Incentive Plan, which permits the Corporation to issue several types of stock-based compensation to employees and directors of the Corporation and/or any of its subsidiaries (the “2020 Incentive Plan"). The 2020 Incentive Plan replaced the Popular, Inc. 2004 Omnibus Incentive Plan, which was in effect prior to the adoption of the 2020 Incentive Plan (the “2004 Incentive Plan" and, together with the 2020 Incentive Plan, the “Incentive Plan"). Participants under the Incentive Plan are designated by the Talent and Compensation Committee of the Board of Directors (or its delegate, as determined by the Board). Under the Incentive Plan, the Corporation has issued restricted stock and performance shares to its employees and restricted stock and restricted stock units (“RSUs”) to its directors. The restricted stock granted under the Incentive Plan to employees becomes vested based on the employees’ continued service with Popular. Unless otherwise stated in an agreement, the compensation cost associated with the shares of restricted stock granted prior to 2021 was determined based on a two-prong vesting schedule. These grants include ratable vesting over five or four years commencing at the date of grant (the "graduated vesting portion") with a portion vested at termination of employment after attainment of 55 years of age and 10 years of service or 60 years of age and 5 years of service (the "retirement vesting portion”). The graduated vesting portion is accelerated at termination of employment after attaining the earlier of 55 years of age and 10 years of service or 60 years of age and 5 years of service. Restricted stock granted on or after 2021 have ratable vesting in equal annual installments over a period of 4 years or 3 years, depending on the classification of the employee. The vesting schedule is accelerated at termination of employment after attaining the earlier of 55 years of age and 10 years of service or 60 years of age and 5 years of service. The performance share awards granted under the Incentive Plan consist of the opportunity to receive shares of Popular, Inc.’s common stock provided that the Corporation achieves certain goals during a three-year performance cycle. The goals are based on two metrics weighted equally: the Relative Total Shareholder Return (“TSR") and the Absolute Return on Average Tangible Common Equity (“ROTCE”). The TSR metric is a market condition under ASC Topic 718. For equity settled awards based on market conditions, the fair value is determined as of the grant date and is not subsequently revised based on actual performance. The ROTCE metric is a performance condition under ASC Topic 718. For equity settled awards based on a performance condition, the fair value is determined based on the probability of achieving the ROTCE goal as of each reporting period. The TSR and ROTCE metrics are equally weighted and work independently. The number of shares that will ultimately vest ranges from 50% to a 150% target based on both market (TSR) and performance (ROTCE) conditions. The performance shares vest at the end of the three-year performance cycle. If a participant terminates employment after attaining the earlier of 55 years of age and 10 years of service or 60 years of age and 5 years of service, the performance shares shall continue outstanding and vest at the end of the performance cycle. The following table summarizes the restricted stock and performance shares activity under the Incentive Plan for members of management. | (Not in thousands) | Shares | Weighted-Average Grant Date Fair Value | | --- | --- | --- | | Non-vested at December 31, 2024 | 247,908 | $66.86 | | Granted | 226,259 | 100.35 | | Performance Shares Quantity Adjustment | 55,517 | 91.18 | | Vested | (293,939) | 90.00 | | Forfeited | (8,787) | 66.53 | | Non-vested at December 31, 2025 | 226,958 | $76.13 | | Granted | 138,840 | $147.46 | | Performance Shares Quantity Adjustment | 22,293 | $119.19 | | Vested | (200,701) | $104.83 | | Forfeited | (1,258) | $91.51 | | Non-vested at June 30, 2026 | 186,132 | $107.91 | During the quarter ended June 30, 2026, 60,625 shares of restricted stock (June 30, 2025 – 121,649) were awarded to management under the Incentive Plan. During the quarters ended June 30, 2026 and 2025, no performance shares were awarded to management under the Incentive Plan. During the six months ended June 30, 2026, 103,020 shares of restricted stock (June 30, 2025 – 194,268) and 35,820 performance shares (June 30, 2025 - 47,494) were awarded to management under the Incentive Plan. 83 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) During the quarter ended June 30, 2026, the Corporation recognized $4.9 million of restricted stock expense related to management incentive awards, with a tax benefit of $1.2 million (June 30, 2025 - $6.9 million, with a tax benefit of $1.0 million). For the six months ended June 30, 2026, the Corporation recognized $10.8 million of restricted stock expense related to management incentive awards, with a tax benefit of $1.8 million (June 30, 2025 - $14.4 million, with a tax benefit of $1.6 million). For the six months ended June 30, 2026, the fair market value of the restricted stock and performance shares vested was $23.3 million on the grant date and $44.0 million at vesting date. This differential triggers a windfall of $7.6 million that was recorded as a reduction to income tax expense. During the quarter ended June 30, 2026, the Corporation recognized $1.4 million of performance shares expense, with a tax benefit of $98 thousand due to performance shares target adjustment (June 30, 2025 - $0.8 million, with a tax benefit of $61 thousand). For the six months ended June 30, 2026, the Corporation recognized $5.3 million of performance shares expense, with a tax benefit of $0.3 million (June 30, 2025 - $4.2 million, with a tax benefit of $0.5 million). The total unrecognized compensation cost related to non-vested restricted stock awards and performance shares to members of management at June 30, 2026 was $18.3 million and is expected to be recognized over a weighted- average period of 1.53. The following table summarizes the restricted stock activity under the Incentive Plan for members of the Board of Directors: | (Not in thousands) / Non-vested at December 31, 2024 | RSUs / Restricted stock / - | Weighted-Average Grant Date Fair Value per Unit / $- | | --- | --- | --- | | Granted | 24,476 | 101.33 | | Vested | (5,363) | 104.33 | | Forfeited | - | - | | Non-vested at December 31, 2025 | 19,113 | $100.49 | | Granted | 14,235 | 146.16 | | Vested | (4,941) | 140.81 | | Forfeited | - | - | | Non-vested at June 30, 2026 | 28,407 | $116.36 | The equity awards granted to members of the Board of Directors of Popular, Inc. (the “Directors") after May 2025 will vest and become non- forfeitable on the first anniversary of the grant date of such award. Equity awards granted to the Directors may be paid in either common stock or RSUs, at each Director’s election. If RSUs are elected, the Directors may defer the delivery of the shares of common stock underlying the RSUs award until their retirement. To the extent that cash dividends are paid on the Corporation’s outstanding common stock, the Directors will receive an additional number of RSUs that reflect a reinvested dividend equivalent During the quarter ended June 30, 2026, 12,163 RSUs and 906 shares of restricted stock were granted to the Directors (June 30, 2025 - 17,816 RSUs and 2,688 shares of restricted stock) and the Corporation recognized $0.5 million of expense related to these shares with a tax benefit of $86 thousand (June 30, 2025 - $0.4 million with a tax benefit of $84 thousand). For the six months ended June 30, 2026, the Corporation granted 13,329 RSUs and 906 shares of restricted stock to the Directors (June 30, 2025 - 19,362 RSUs and 2,688 shares of unrestricted stock) and the Corporation recognized $1.1 million of expense related to these shares, with a tax benefit of $0.2 million, (June 30, 2025 - $0.7 million, with a tax benefit of $0.1 million). For the six months ended June 30, 2026, the fair market value of the restricted stock and performance shares vested was $0.4 million on the grant date and $0.8 million at vesting date. This differential triggers a windfall of $0.2 million that was recorded as a reduction to income tax expense. ### Note 24 - Income taxes For the quarter ended June 30, 2026, the Corporation recorded income tax expense of $45.7 million, a decrease of $2.2 million from $47.9 million in the comparable 2025 period. The effective tax rate ("ETR") decreased to 14.1% from 18.5%. For the six-month period ended June 30, 2026, income tax expense was $92.7 million, consistent with the $92.9 million reported for the same period in 2025. The ETR decreased to 15.0% from 19.3% for the first six months of 2025. The lower ETR for both the quarter and six month periods were driven by higher exempt income and other tax benefits, including the vesting of stock awards, the purchase of tax credits, and income subject to preferential income tax rates. The Puerto Rico statutory tax rate is 37.5% for both periods. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Significant components of the Corporation’s deferred tax assets and liabilities at June 30, 2026, and December 31, 2025, were as follows: 84 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _June 30, 2026_ | (In thousands) | PR | US | Total | | --- | --- | --- | --- | | Deferred tax assets: | | | | | Tax credits available for carryforward | $7,318 | $61,577 | $68,895 | | Net operating loss and other carryforward available | 67,396 | 542,842 | 610,238 | | Postretirement and pension benefits | 29,371 | - | 29,371 | | Allowance for credit losses | 325,466 | 29,215 | 354,681 | | Depreciation | 8,528 | 8,036 | 16,564 | | FDIC-assisted transaction | 152,665 | - | 152,665 | | Lease liability | 31,121 | 18,353 | 49,474 | | Unrealized net loss on investment securities | 160,070 | 15,108 | 175,178 | | Mortgage Servicing Rights | 14,597 | - | 14,597 | | Other temporary differences | 31,753 | 7,230 | 38,983 | | Total gross deferred tax assets | 828,285 | 682,361 | 1,510,646 | | Deferred tax liabilities: | | | | | Intangibles | 97,484 | 57,329 | 154,813 | | Right of use assets | 28,352 | 16,685 | 45,037 | | Deferred loan origination fees/cost | 16,568 | 2,171 | 18,739 | | Loans acquired | 17,305 | - | 17,305 | | Other temporary differences | 9,715 | 429 | 10,144 | | Total gross deferred tax liabilities | 169,424 | 76,614 | 246,038 | | Valuation allowance | 83,979 | 386,586 | 470,565 | | Net deferred tax asset | $574,882 | $219,161 | $794,043 | _December 31, 2025_ | (In thousands) | PR | US | Total | | --- | --- | --- | --- | | Deferred tax assets: | | | | | Tax credits available for carryforward | $7,318 | $46,632 | $53,950 | | Net operating loss and other carryforward available | 59,578 | 568,156 | 627,734 | | Postretirement and pension benefits | 29,453 | - | 29,453 | | Allowance for credit losses | 255,017 | 28,465 | 283,482 | | Deferred loan origination fees/cost | 7,205 | (2,474) | 4,731 | | Depreciation | 8,422 | 7,899 | 16,321 | | FDIC-assisted transaction | 152,665 | - | 152,665 | | Lease liability | 27,382 | 17,758 | 45,140 | | Unrealized net loss on investment securities | 160,809 | 12,850 | 173,659 | | Difference in outside basis from pass-through entities | 54,457 | - | 54,457 | | Mortgage Servicing Rights | 15,375 | - | 15,375 | | Other temporary differences | 26,347 | 7,586 | 33,933 | | Total gross deferred tax assets | 804,028 | 686,872 | 1,490,900 | | Deferred tax liabilities: | | | | | Intangibles | 92,797 | 55,760 | 148,557 | | Right of use assets | 24,846 | 15,875 | 40,721 | | Loans acquired | 17,053 | - | 17,053 | | Other temporary differences | 7,082 | 429 | 7,511 | | Total gross deferred tax liabilities | 141,778 | 72,064 | 213,842 | | Valuation allowance | 78,153 | 386,587 | 464,740 | | Net deferred tax asset | $584,097 | $228,221 | $812,318 | The net deferred tax assets shown in the table above at June 30, 2026, is reflected in the Consolidated Statements of Financial Condition as $794.7 million in net deferred tax assets in the “Other assets" caption (December 31, 2025 - $814.2 million) and $649 thousand in deferred tax liabilities in the “Other liabilities" caption (December 31, 2025 - $1.9 million), reflecting the aggregate deferred tax assets or liabilities of individual tax-paying subsidiaries of the Corporation in their respective tax jurisdiction, Puerto Rico or the United States. At June 30, 2026, the net deferred tax assets of the U.S. operations, before valuation allowance, amounted to $605.8 million. After considering the valuation allowance of $386.6 million, the total net deferred tax assets amounted to $219.2 million. The U.S. Operations have generated taxable income each of the last three years. The financial results for the six-months period of 2026 continue to show an upward trend similar to 2024 and 2025. These financial results are objectively verifiable positive evidence. Additionally, the Corporation considered as negative evidence inconsistency in performance trends, including lower than anticipated results in recent periods. Also, management considered the uncertainty in predicting future taxable income, given the impact of external factors such as changes in 85 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) macroeconomic conditions, geopolitical issues, and shifts in monetary policy. In addition, management evaluated the expiration period of the NOLs carried forward which begin to expire in 2028. Since the Corporation evaluates the realization of the deferred tax assets by taxing jurisdiction on a quarterly basis, as additional information becomes available and performance indicators evolve, the weight assigned to factors considered in the assessment could change. At June 30, 2026, after weighting all positive and negative evidence, the Corporation concluded that it is more likely than not that $219.2 million of the deferred tax assets from the U.S. operations, comprised mainly of net operating losses, will be realized. The Corporation based this determination on its estimated taxable income available to realize the deferred tax assets for the remaining carryforward periods, together with the historical level of book income adjusted by permanent differences and taxable income. Management will continue to monitor and review the U.S. operation’s results, including recent earnings trends, pre-tax earnings forecasts, new tax initiatives, and performance indicators, such as net income versus forecast, targeted loan growth, net interest income margin, changes in deposit costs, allowance for credit losses, charge-offs, NPLs inflows, and NPA balances. Significant changes, or a combination of changes, could positively or negatively impact the amount of deferred tax assets to be realized in the future. At June 30, 2026, the Corporation’s net deferred tax assets related to its Puerto Rico operations amounted to $658.9 million. The Corporation’s Puerto Rico Banking operation has a historical record of profitability. This is considered as strong objectively verifiable positive evidence that outweighs any negative evidence considered by management in the evaluation of the realization of the deferred tax assets. Based on this evidence and management’s estimate of future taxable income, the Corporation has concluded that it is more likely than not that such net deferred tax assets of the Puerto Rico Banking operations will be realized. The Holding Company operation has been in a cumulative loss position. Management expects these losses will be a trend in future years. This objectively verifiable negative evidence is considered by Management strong negative evidence that suggests that income in future years will be insufficient to support the realization of all deferred tax assets. After weighting of all positive and negative evidence Management concluded, as of the reporting date, that it is more likely than not that the Holding Company will not be able to realize any portion of the deferred tax assets. Accordingly, the Corporation has maintained a valuation allowance on the deferred tax assets of $84.0 million as of June 30, 2026. The Corporation and its subsidiaries file income tax returns in Puerto Rico, the U.S. federal jurisdiction, various U.S. states and political subdivisions, and foreign jurisdictions. At June 30, 2026, the following years remain subject to examination in the U.S. Federal jurisdiction, 2022 and thereafter; and in the Puerto Rico jurisdiction, 2019 and thereafter. ### Note 25 - Supplemental disclosure on the consolidated statements of cash flows Additional disclosures on cash flow information and non-cash activities for the six months ended June 30, 2026 and June 30, 2025 are listed in the following table: | (In thousands) | June 30, 2026 | June 30, 2025 | | --- | --- | --- | | Non-cash activities: | | | | Loans transferred to other real estate | $21,158 | $14,006 | | Loans transferred to other property | 42,288 | 45,065 | | Total loans transferred to foreclosed assets | 63,446 | 59,071 | | Loans transferred to other assets | 17,991 | 26,604 | | Financed sales of other real estate assets | 1,252 | 2,580 | | Financed sales of other foreclosed assets | 28,861 | 29,089 | | Total financed sales of foreclosed assets | 30,113 | 31,669 | | Financed sale of premises and equipment | 26,570 | 29,727 | | Transfers from loans held-in-portfolio to loans held-for-sale | 95,495 | 2,662 | | Transfers from loans held-for-sale to loans held-in-portfolio | 804 | 1,224 | | Loans securitized into investment securities [1] | 21,403 | 6,852 | | Trades receivable from brokers and counterparties | 6,868 | 22 | | Trades payable to brokers and counterparties | 6,868 | 593,949 | | Net change in receivables from investments maturities | - | 14,377 | | Recognition of mortgage servicing rights on securitizations or asset transfers | 1,000 | 498 | | Loans booked under the GNMA buy-back option | 8,702 | 3,339 | | Capitalization of lease right of use asset | 17,888 | 9,143 | [1]Includes loans securitized into trading securities and subsequently sold before quarter end. 86 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) The following table provides a reconciliation of cash and due from banks, and restricted cash reported within the Consolidated Statements of Financial Condition that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows. | (In thousands) | June 30, 2026 | June 30, 2025 | | --- | --- | --- | | Cash and due from banks | $359,049 | $394,211 | | Restricted cash and due from banks | 5,964 | 6,420 | | Restricted cash in money market investments | 9,981 | 10,371 | | Total cash and due from banks, and restricted cash [2] | $374,994 | $411,002 | [2]Refer to Note 4 - Restrictions on cash and due from banks and certain securities for nature of restrictions. ### Note 26 - Segment reporting The Corporation’s corporate structure consists of two reportable segments – Banco Popular de Puerto Rico and Popular U.S. Management determined the reportable segments based on the internal reporting used to evaluate performance and to assess where to allocate resources. The segments were determined based on the organizational structure, which focuses primarily on the markets the segments serve, as well as on the products and services offered by the segments. The chief operating decision maker (“CODM”) of the Corporation is the Chief Executive Officer (“CEO") who utilizes net income as one of the segment profitability measures, to evaluate the performance of each reportable segment and assess where to allocate resources effectively. The CEO receives profitability reports that include net income per segment, net interest income and other income and expense categories. The CODM uses the segment’s net income and components of net income, including segment revenues and expenses to assess performance and to manage important aspects by each reportable segments, such as human capital, investment in technology, making budget allocations, as well as other strategic decisions. Banco Popular de Puerto Rico: The Banco Popular de Puerto Rico reportable segment includes commercial, consumer and retail banking operations, as well as mortgage and auto lending operations conducted at BPPR, including U.S. based activities conducted through its New York Branch. Other financial services within the BPPR segment include the trust service units of BPPR, asset management services of Popular Asset Management and the brokerage operations of Popular Securities, and the insurance agency and reinsurance businesses of Popular Insurance, Popular Risk Services, Popular Life Re, and Popular Re. Popular U.S.: Popular U.S. reportable segment consists of the banking operations of Popular Bank (PB), Popular Insurance Agency, U.S.A., and PEF. PB operates through a retail branch network in the U.S. mainland under the name of Popular, and equipment leasing and financing services through PEF. Popular Insurance Agency, U.S.A. offers investment and insurance services across the PB branch network. The Corporate group consists primarily of the holding companies Popular, Inc., Popular North America, Popular International Bank and certain of the Corporation’s investments accounted for under the equity method, including BHD. The accounting policies of the individual operating segments are the same as those of the Corporation. Transactions between reportable segments are primarily conducted at market rates, resulting in profits that are eliminated for reporting consolidated results of operations. Assets representing transactions between reportable segments or the Corporate group are also eliminated in the tables presented below. The tables that follow present the results of operations and total assets by reportable segments: 87 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **2026** _For the quarter ended June 30, 2026_ | (In thousands) | BPPR | Popular U.S. | Intersegment Eliminations | | --- | --- | --- | --- | | Interest income | $779,759 | $201,358 | $- | | Interest expense | 189,836 | 88,282 | - | | Net interest income | 589,923 | 113,076 | - | | Provision for credit losses | 63,156 | 2,752 | - | | Non-interest income | 155,700 | 7,296 | (22) | | Personnel costs | 165,537 | 27,461 | (22) | | Professional fees | 14,075 | 1,751 | - | | Technology and software expenses | 67,349 | 11,008 | - | | Processing and transactional services | 36,695 | 533 | - | | Amortization of intangibles | 239 | 145 | - | | Depreciation expense | 11,886 | 2,146 | - | | Other operating expenses [1] | 122,034 | 23,697 | - | | Total operating expenses | 417,815 | 66,741 | (22) | | Income before income tax | 264,652 | 50,879 | - | | Income tax expense | 31,748 | 14,293 | - | | Net income | $232,904 | $36,586 | $- | | Segment assets | $63,517,017 | $15,032,815 | $(38,964) | | [1] Other operating expenses includes net occupancy expenses, equipment expense, excluding depreciation, other operating taxes, communications expense, business promotion expenses, deposit insurance costs and OREO expenses. | | | | _For the quarter ended June 30, 2026_ | (In thousands) | Reportable Segments | Corporate | Eliminations | Total Popular, Inc. | | --- | --- | --- | --- | --- | | Interest income | $981,117 | $1,144 | $(622) | $981,639 | | Interest expense | 278,118 | 10,724 | (622) | 288,220 | | Net interest income (expense) | 702,999 | (9,580) | - | 693,419 | | Provision for credit losses (benefit) | 65,908 | (35) | - | 65,873 | | Non-interest income | 162,974 | 18,354 | (783) | 180,545 | | Personnel costs | 192,976 | 36,084 | (29) | 229,031 | | Professional fees | 15,826 | 8,977 | (319) | 24,484 | | Technology and software expenses | 78,357 | 12,614 | - | 90,971 | | Processing and transactional services | 37,228 | 38 | - | 37,266 | | Amortization of intangibles | 384 | - | - | 384 | | Depreciation expense | 14,032 | 376 | - | 14,408 | | Other operating expenses [1] | 145,731 | (57,802) | (343) | 87,586 | | Total operating expenses | 484,534 | 287 | (691) | 484,130 | | Income before income tax | 315,531 | 8,522 | (92) | 323,961 | | Income tax expense | 46,041 | (294) | - | 45,747 | | Net income | $269,490 | $8,816 | $(92) | $278,214 | | Segment assets | $78,510,868 | $5,690,030 | $(5,228,598) | $78,972,300 | | [1] Other operating expenses includes net occupancy expenses, equipment expense, excluding depreciation, other operating taxes, communications expense, business promotion expenses, deposit insurance costs and OREO expenses. | | | | | 88 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _For the six months ended June 30, 2026_ | (In thousands) | BPPR | Popular U.S. | Intersegment Eliminations | | --- | --- | --- | --- | | Interest income | $1,528,260 | $399,606 | $- | | Interest expense | 370,391 | 174,823 | - | | Net interest income | 1,157,869 | 224,783 | - | | Provision for credit losses | 136,689 | 5,135 | - | | Non-interest income | 300,477 | 15,248 | (43) | | Personnel costs | 318,171 | 52,608 | (43) | | Professional fees | 26,041 | 4,400 | - | | Technology and software expenses | 133,070 | 20,542 | - | | Processing and transactional services | 75,152 | 1,140 | - | | Amortization of intangibles | 479 | 289 | - | | Depreciation expense | 22,852 | 4,335 | - | | Other operating expenses [1] | 244,359 | 48,986 | - | | Total operating expenses | 820,124 | 132,300 | (43) | | Income before income tax | 501,533 | 102,596 | - | | Income tax expense | 64,259 | 29,045 | - | | Net income | $437,274 | $73,551 | $- | | Segment assets | $63,517,017 | $15,032,815 | $(38,964) | _For the six months ended June 30, 2026_ | (In thousands) | Reportable Segments | Corporate | Eliminations | Total Popular, Inc. | | --- | --- | --- | --- | --- | | Interest income | $1,927,866 | $2,470 | $(1,481) | $1,928,855 | | Interest expense | 545,214 | 21,523 | (1,481) | 565,256 | | Net interest income (expense) | 1,382,652 | (19,053) | - | 1,363,599 | | Provision for credit losses (benefit) | 141,824 | (65) | - | 141,759 | | Non-interest income | 315,682 | 32,198 | (1,709) | 346,171 | | Personnel costs | 370,736 | 74,422 | (58) | 445,100 | | Professional fees | 30,441 | 20,324 | (728) | 50,037 | | Technology and software expenses | 153,612 | 26,498 | - | 180,110 | | Processing and transactional services | 76,292 | 61 | - | 76,353 | | Amortization of intangibles | 768 | - | - | 768 | | Depreciation expense | 27,187 | 759 | - | 27,946 | | Operating expenses [1] | 293,345 | (121,464) | (755) | 171,126 | | Total operating expenses | 952,381 | 600 | (1,541) | 951,440 | | Income before income tax | 604,129 | 12,610 | (168) | 616,571 | | Income tax expense | 93,304 | (621) | - | 92,683 | | Net income (loss) | $510,825 | $13,231 | $(168) | $523,888 | | Segment assets | $78,510,868 | $5,690,030 | $(5,228,598) | $78,972,300 | | [1] Other operating expenses includes net occupancy expenses, equipment expense, excluding depreciation, other operating taxes, communications expense, business promotion expenses, deposit insurance costs and OREO expenses. | | | | | . 89 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) **2025** _For the quarter ended June 30, 2025_ | (In thousands) | BPPR | Popular U.S. | Intersegment Eliminations | | --- | --- | --- | --- | | Interest income | $748,712 | $195,668 | $(1,041) | | Interest expense | 210,237 | 93,474 | (1,041) | | Net interest income | 538,475 | 102,194 | - | | Provision for credit losses (benefit) | 42,452 | 6,532 | - | | Non-interest income | 145,685 | 7,421 | - | | Personnel costs | 164,794 | 27,387 | - | | Professional fees | 13,025 | 2,450 | - | | Technology and software expenses | 64,226 | 10,345 | - | | Processing and transactional services | 37,276 | 582 | - | | Amortization of intangibles | 240 | 145 | - | | Depreciation expense | 10,344 | 2,266 | - | | Other operating expenses[1] | 132,004 | 28,021 | - | | Total operating expenses | 421,909 | 71,196 | - | | Income before income tax | 219,799 | 31,887 | - | | Income tax expense | 35,256 | 9,280 | - | | Net income | $184,543 | $22,607 | $- | | Segment assets | $60,926,458 | $14,865,364 | $(120,633) | _For the quarter ended June 30, 2025_ | (In thousands) | Reportable Segments | Corporate | Eliminations | Total Popular, Inc. | | --- | --- | --- | --- | --- | | Interest income | 943,339 | 1,578 | (1,045) | 943,872 | | Interest expense | 302,670 | 10,698 | (1,045) | 312,323 | | Net interest income (expense) | $640,669 | $(9,120) | $- | $631,549 | | Provision for credit losses (benefit) | 48,984 | (43) | - | 48,941 | | Non-interest income | 153,106 | 16,107 | (736) | 168,477 | | Personnel costs | 192,181 | 37,174 | - | 229,355 | | Professional fees | 15,475 | 12,887 | (254) | 28,108 | | Technology and software expenses | 74,571 | 10,125 | - | 84,696 | | Processing and transactional services | 37,858 | 3 | - | 37,861 | | Amortization of intangibles | 385 | - | - | 385 | | Depreciation expense | 12,610 | 429 | - | 13,039 | | Other operating expenses[1] | 160,025 | (60,181) | (527) | 99,317 | | Total operating expenses | 493,105 | 437 | (781) | 492,761 | | Income before income tax | 251,686 | 6,593 | 45 | 258,324 | | Income tax expense (benefit) | 44,536 | 3,277 | 71 | 47,884 | | Net income | $207,150 | $3,316 | $(26) | $210,440 | | Segment assets | $75,671,189 | $5,786,893 | $(5,392,992) | $76,065,090 | [1]Other operating expenses includes net occupancy expenses, equipment expense, excluding depreciation, other operating taxes, communications expense, business promotion expenses, deposit insurance costs and OREO expenses. 90 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) _For the six months ended June 30, 2025_ | (In thousands) | BPPR | Popular U.S. | Intersegment Eliminations | | --- | --- | --- | --- | | Interest income | $1,480,600 | $382,060 | $(2,722) | | Interest expense | 420,233 | 186,924 | (2,722) | | Net interest income | 1,060,367 | 195,136 | - | | Provision for credit losses | 95,964 | 17,142 | - | | Non-interest income | 283,190 | 13,564 | - | | Personnel costs | 316,078 | 52,829 | - | | Professional fees | 26,084 | 5,189 | - | | Technology and software expenses | 128,377 | 20,433 | - | | Processing and transactional services | 74,455 | 1,179 | - | | Amortization of intangibles | 582 | 400 | - | | Depreciation expense | 20,038 | 4,463 | - | | Other operating expenses [1] | 260,758 | 53,640 | - | | Total operating expenses | 826,372 | 138,133 | - | | Income before income tax | 421,221 | 53,425 | - | | Income tax expense | 70,699 | 16,002 | - | | Net income | $350,522 | $37,423 | $- | | Segment assets | $60,926,458 | $14,865,364 | $(120,633) | _For the six months ended June 30, 2025_ | (In thousands) | Reportable Segments | Corporate | Eliminations | Total Popular, Inc. | | --- | --- | --- | --- | --- | | Interest income | $1,859,938 | $3,114 | $(2,182) | $1,860,870 | | Interest expense | 604,435 | 21,471 | (2,182) | 623,724 | | Net interest income (expense) | 1,255,503 | (18,357) | - | 1,237,146 | | Provision for credit losses (benefit) | 113,106 | (84) | - | 113,022 | | Non-interest income | 296,754 | 25,136 | (1,352) | 320,538 | | Personnel costs | 368,907 | 73,161 | - | 442,068 | | Professional fees | 31,273 | 24,244 | (584) | 54,933 | | Technology and software expenses | 148,810 | 19,554 | - | 168,364 | | Processing and transactional services | 75,634 | 8 | - | 75,642 | | Amortization of intangibles | 982 | - | - | 982 | | Depreciation expense | 24,501 | 818 | - | 25,319 | | Other operating expenses [1] | 314,398 | (116,583) | (1,350) | 196,465 | | Total operating expenses | 964,505 | 1,202 | (1,934) | 963,773 | | Income before income tax | 474,646 | 5,661 | 582 | 480,889 | | Income tax expense (benefit) | 86,701 | 5,952 | 294 | 92,947 | | Net income | $387,945 | $(291) | $288 | $387,942 | | Segment assets | $75,671,189 | $5,786,893 | $(5,392,992) | $76,065,090 | [1]Other operating expenses includes net occupancy expenses, equipment expense, excluding depreciation, other operating taxes, communications expense, business promotion expenses, deposit insurance costs and OREO expenses. Geographic Information The following information presents selected financial information based on the geographic location where the Corporation conducts its business. The banking operations of BPPR are primarily based in Puerto Rico, where it has the largest retail banking franchise. BPPR also conducts banking operations in the U.S. Virgin Islands, the British Virgin Islands and New York. BPPR’s banking operations in the mainland United States include commercial lending activities in addition to periodic loan participations with PB. During the six months ended June 30, 2026, BPPR did not participate in loans originated by PB (2025 - $29.0 million). Total assets for the BPPR segment related to its operations in the United States amounted to $1.2 billion (December 31, 2025 - $1.4 billion), including $101.0 million in multifamily loans (December 31, 2025 - $102.0 million), $378.0 million in commercial real estate loans (December 31, 2025 - $435.0 million), $674.0 million in C&I loans (December 31, 2025 - $714.0 million), and $23.0 million in unsecured personal loans (December 31, 2025 - $41.0 million). During the six months ended June 30, 2026, the BPPR segment generated $42.0 million (June 30, 2025 - $51.4 million) in revenues from its operations in the United States, mainly from net interest income. In the Virgin Islands, the BPPR segment offers banking products, including loans and deposits. Total assets for the BPPR segment related to its operations in the U.S. and British Virgin Islands amounted to $1.1 billion (December 31, 2025 -$1.0 billion). The BPPR segment generated $27.7 million in revenues during the six months ended June 30, 2026 (June 30, 2025 - $25.0 million) from its operations in the U.S. and British Virgin Islands. 91 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Geographic Information | (In thousands) | Quarter ended / June 30, 2026 | Quarter ended / June 30, 2025 | Six months ended / June 30, 2026 | Six months ended / June 30, 2025 | | --- | --- | --- | --- | --- | | Revenues: [1] | | | | | | Puerto Rico | $701,488 | $636,232 | $1,369,559 | $1,246,193 | | United States | 139,422 | 139,274 | 279,085 | 266,490 | | Other | 33,054 | 24,520 | 61,126 | 45,001 | | Total consolidated revenues | $873,964 | $800,026 | $1,709,770 | $1,557,684 | [1]Total revenues include net interest income, service charges on deposit accounts, other service fees, mortgage banking activities, net gain (loss),including impairment, on equity securities, net gain on trading account debt securities, adjustments to indemnity reserves on loans sold, and other operating income. Selected Balance Sheet Information: | (In thousands) | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | Puerto Rico | | | | Total assets | $61,313,912 | $57,955,465 | | Loans | 26,370,150 | 25,853,231 | | Deposits | 56,416,936 | 52,451,498 | | United States | | | | Total assets | $16,255,576 | $16,101,705 | | Loans | 12,949,579 | 12,966,468 | | Deposits | 11,891,146 | 11,987,581 | | Other | | | | Total assets | $1,402,812 | $1,291,097 | | Loans | 518,712 | 517,817 | | Deposits [1] | 1,925,033 | 1,751,014 | [1]Represents deposits from BPPR operations located in the U.S. and British Virgin Islands. ### Note 27 - Subsequent events Sale of Commercial Loan Held-For-Sale In June 2026, the Corporation reclassified a $155.0 million loan held-in-portfolio to loan held-for-sale given its intent to sell; this resulted in a $71.3 million charge-off during Q2 2026. The loan was subsequently sold on July 2, 2026 for the remaining $83.7 million. 92 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) ## Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This report includes management’s discussion and analysis (“MD&A”) of the consolidated financial position and financial performance of Popular, Inc. (the “Corporation" or “Popular"). All accompanying tables, financial statements and notes included elsewhere in this report should be considered an integral part of this analysis. The Corporation is a diversified, publicly owned financial holding company subject to the supervision and regulation of the Board of Governors of the Federal Reserve System. The Corporation has operations in Puerto Rico, the United States (“U.S.") mainland and the U.S. and British Virgin Islands. In Puerto Rico, the Corporation provides retail, mortgage, commercial banking services and auto and equipment leasing and financing through its principal banking subsidiary, Banco Popular de Puerto Rico (“BPPR"), as well as broker-dealer and insurance services through specialized subsidiaries. In the U.S. mainland, the Corporation provides retail, mortgage and commercial banking services, as well as equipment leasing and financing, through its New York-chartered banking subsidiary, Popular Bank (“PB" or “Popular U.S."), which has branches located in New York, New Jersey and Florida. Note 26 to the Consolidated Financial Statements presents information about the Corporation’s business segments. As a financial services company, the Corporation’s earnings are significantly affected by general business and economic conditions in the markets which we serve. Lending and deposit activities and fee income generation are influenced by the level of business spending and investment, consumer income, spending and savings, capital market activities, competition, customer preferences, interest rate conditions and prevailing market rates on competing products. The Corporation operates in a highly regulated environment and may be adversely affected by changes in federal and local laws and regulations. Also, competition with other financial institutions, as well as with non-traditional financial service providers and technology companies that provide electronic and internet-based financial solutions and services, could adversely affect its profitability. The Corporation continuously monitors general business and economic conditions, industry-related indicators and trends, competition, interest rate volatility, credit quality indicators, loan and deposit demand, operational and systems efficiencies, revenue enhancements and changes in the regulation of financial services companies. The description of the Corporation’s business contained in Item 1 of the 2025 Form 10-K, while not all inclusive, discusses additional information about the business of the Corporation. Readers should also refer to “Part I - Item 1A" of the 2025 Form 10-K and “Part II - Item 1A" of this Form 10-Q for a discussion of certain risks and uncertainties to which the Corporation is subject, many beyond the Corporation’s control that, in addition to the other information in this Form 10-Q, readers should consider. The Corporation’s common stock is traded on the NASDAQ Global Select Market under the symbol BPOP. SIGNIFICANT EVENTS Capital Actions 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. 93 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) OVERVIEW Financial highlights for the quarter ended June 30, 2026 The Corporation’s net income for the quarter ended June 30, 2026 amounted to $278.2 million, an increase of $67.8 million when compared to net income of $210.4 million for the quarter ended June 30, 2025. Higher net income was mainly driven by higher net interest income, higher non-interest income, and lower operating expenses partially offset by an increase in the provision for credit losses. Financial highlights for the quarter ended June 30, 2026 include: - Net interest income amounted to $693.4 million, an increase of $61.9 million when compared to the quarter ended June 30, 2025 driven by higher investments in U.S. Treasury securities at higher yields, loan growth and lower cost of deposits, mainly P.R. public deposits, partially offset by lower money market investments. Net interest income on a taxable equivalent basis for the second quarter of 2026 was $788.8 million, an increase of $91.6 million when compared to the same quarter for 2025. Net interest margin expanded by 17 basis points to 3.66% when compared to the same period in 2025. On a taxable equivalent basis, net interest margin expanded by 32 basis points to 4.17% when compared to the same period in 2025. - The provision for credit losses amounted to $65.5 million for the quarter ended June 30, 2026, an increase of $17.1 million when compared to the quarter ended June 30, 2025, driven by higher specific reserves in the BPPR commercial loan portfolio associated with the unreserved portion of a $155 million nonperforming loan held-in-portfolio ("NPL") transferred to loans held-for- sale ("LHFS") with a resulting $71 million charge-off and specific reserves related to two commercial and industrial relationships totaling $129 million that were classified as NPLs during the quarter, partially offset by lower provisions for certain consumer loan portfolios attributable to improved credit metrics, improved macroeconomic assumptions, net recoveries in the mortgage portfolio and lower volumes in the auto loan portfolio. Provision for credit losses decreased at PB primarily due to the higher qualitative reserves established during the second quarter of 2025, compared to 2026, to maintain adequate ACL coverage as well as an overall improvement in credit quality. - Non-interest income amounted to $180.5 million, an increase of $12.1 million when compared to the quarter ended June 30, 2025, mainly driven by higher credit and debit card fee income driven by higher activity and purchase volumes including those of commercial credit cards that benefited from the recent launch of new corporate-focused products. - Operating expenses amounted to $484.1 million for the quarter, reflecting a decrease of $8.6 million when compared to the quarter ended June 30, 2025. The decrease was mainly driven by lower operational loss reserves and lower professional services expense, partially offset by higher technology and software expenses as a result of our continued investment in technology and higher business promotion expenses. - Income tax expense of $45.7 million with an effective tax rate (“ETR”) of 14.1% during the quarter ended June 30, 2026, compared to an income tax expense of $47.9 million with an ETR of 18.5% for the quarter ended June 30, 2025 due to higher exempt income and other tax benefits, including the vesting of stock awards, the purchase of tax credits, and income subject to preferential tax rates. - At June 30, 2026, the Corporation’s total assets amounted to $79.0 billion, compared to $75.3 billion at December 31, 2025. The increase of $3.7 billion was primarily due to an increase in the available-for-sale (“AFS”) securities portfolio, driven by reinvestment in U.S. Treasury securities, and higher loans held-in-portfolio partially offset by a decrease in held-to-maturity (“HTM”) investment securities driven by maturities and principal paydowns. - Deposits amounted to $70.2 billion at June 30, 2026, an increase of $4.0 billion from December 31, 2025, primarily driven by growth at BPPR, mainly in P.R. public deposits and commercial deposits. - Stockholders’ equity amounted to $6.4 billion at June 30, 2026, compared to $6.2 billion at December 31, 2025. The Corporation and its banking subsidiaries continue to be well capitalized. As of June 30, 2026, the Corporation’s tangible book value per common share was $87.94, an increase of $5.29 from December 31, 2025. The Common Equity Tier 1 Capital Ratio at June 30, 2026 was 16.08%, compared to 15.72% at December 31, 2025. Refer to Table 1 for selected financial data for the quarters and for the six months ended June 30, 2026 and June 30, 2025. 94 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Table 1 - Financial Highlights | Financial Condition Highlights / (In thousands) | Ending balances at / June 30, 2026 | Ending balances at / December 31, 2025 | Ending balances at / Variance | Average for the six months ended / June 30, 2026 | Average for the six months ended / June 30, 2025 | Average for the six months ended / Variance | | --- | --- | --- | --- | --- | --- | --- | | Money market investments | $4,555,489 | $4,626,506 | $(71,017) | $4,973,483 | $6,314,487 | $(1,341,004) | | Investment securities | 31,264,698 | 28,168,918 | 3,095,780 | 30,486,350 | 28,642,361 | 1,843,989 | | Loans[1] | 39,838,441 | 39,337,516 | 500,925 | 39,423,927 | 37,310,383 | 2,113,544 | | Earning assets[2] | 75,658,628 | 72,132,940 | 3,525,688 | 74,883,761 | 72,267,231 | 2,616,530 | | Total assets | 78,972,300 | 75,348,267 | 3,624,033 | 76,933,119 | 75,391,749 | 1,541,370 | | Deposits | 70,233,115 | 66,190,093 | 4,043,022 | 68,343,999 | 66,112,327 | 2,231,672 | | Borrowings | 1,462,831 | 1,448,578 | 14,253 | 1,294,179 | 1,120,666 | 173,513 | | Total liabilities | 72,539,295 | 69,099,188 | 3,440,107 | 70,610,924 | 68,224,476 | 2,386,448 | | Stockholders’ equity[3] | 6,433,005 | 6,249,079 | 183,926 | 6,322,196 | 7,167,273 | (845,077) | | Operating Highlights / (In thousands, except per share information) | Quarters ended June 30, 2026 | Quarters ended June 30, 2025 | Quarters ended June 30, / Variance | Six months ended June 30, 2026 | Six months ended June 30, 2025 | Six months ended June 30, / Variance | | --- | --- | --- | --- | --- | --- | --- | | Net interest income | $693,419 | $631,549 | $61,870 | $1,363,599 | $1,237,146 | $126,453 | | Provision for credit losses | 65,873 | 48,941 | 16,932 | 141,759 | 113,022 | 28,737 | | Non-interest income | 180,545 | 168,477 | 12,068 | 346,171 | 320,538 | 25,633 | | Operating expenses | 484,130 | 492,761 | (8,631) | 951,440 | 963,773 | (12,333) | | Income before income tax | 323,961 | 258,324 | 65,637 | 616,571 | 480,889 | 135,682 | | Income tax expense | 45,747 | 47,884 | (2,137) | 92,683 | 92,947 | (264) | | Net income | $278,214 | $210,440 | $67,774 | $523,888 | $387,942 | $135,946 | | Net income applicable to common stock | $277,861 | $210,087 | $67,774 | $523,182 | $387,236 | $135,946 | | Net income per common share - basic | $4.35 | $3.09 | $1.26 | $8.13 | $5.64 | $2.49 | | Net income per common share - diluted | $4.35 | $3.09 | $1.26 | $8.13 | $5.64 | $2.49 | | Dividends declared per common share | $0.75 | $0.70 | $0.05 | $1.50 | $1.40 | $0.10 | | Selected Statistical Information | Quarters ended June 30, 2026 | Quarters ended June 30, 2025 | Six months ended June 30, 2026 | Six months ended June 30, 2025 | | --- | --- | --- | --- | --- | | Common Stock Data | | | | | | End market price | $164.18 | $110.21 | $164.18 | $110.21 | | Book value per common share at period end | 100.38 | 87.31 | 100.38 | 87.31 | | Profitability Ratios | | | | | | Return on assets | 1.41% | 1.11% | 1.35% | 1.04% | | Return on common equity | 15.18 | 11.77 | 14.48 | 10.93 | | Net interest spread (non-taxable equivalent basis) | 3.10 | 2.85 | 3.10 | 2.79 | | Net interest spread (taxable equivalent) - non-GAAP | 3.61 | 3.21 | 3.59 | 3.14 | | Net interest margin (non-taxable equivalent basis) | 3.66 | 3.49 | 3.67 | 3.45 | | Net interest margin (taxable equivalent) - non-GAAP | 4.17 | 3.85 | 4.16 | 3.80 | | Capitalization Ratios | | | | | | Average equity to average assets | 9.32% | 9.48% | 9.36% | 9.51% | | Common equity Tier 1 capital | 16.08 | 15.91 | 16.08 | 15.91 | | Tangible common book value per common share (non-GAAP)[4] | 87.94 | 75.41 | 87.94 | 75.41 | | 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) | 20.12 | 14.38 | 19.16 | 13.28 | | Return on average tangible common equity ("ROTCE") (non-GAAP) [2] | 17.02 | 13.26 | 16.25 | 12.32 | | Tier I capital | 16.13 | 15.96 | 16.13 | 15.96 | | Total capital | 17.85 | 17.70 | 17.85 | 17.70 | | Tier 1 leverage | 8.57 | 8.51 | 8.57 | 8.51 | [1] Includes loans held-for-sale. [2] Excludes 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 [3] Stockholders' equity for June 30, 2025 excludes certain 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 [4] Refer to Table 9 for reconciliation to GAAP financial measures. Non-GAAP Financial Measures This Form 10-Q contains financial information prepared under accounting principles generally accepted in the United States (“U.S.GAAP") and non-GAAP financial measures. Management uses non-GAAP financial measures when it is determined that these measures provide meaningful information about the underlying performance of the Corporation’s ongoing operations. Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies. 95 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Adjusted net income - Non-GAAP Financial Measure In addition to analyzing the Corporation’s results on a reported basis, management monitors whether the impact of certain non-recurring or infrequent transactions need to be excluded from the results of operations to present what is then considered to be "adjusted net income" of the Corporation. Management believes that the "adjusted net income" provides meaningful information about the underlying performance of the Corporation’s ongoing operations. The "adjusted net income" is a non-GAAP financial measure. There were no non-GAAP adjustments for the quarter and six months ended June 30, 2026. Net interest income on a taxable equivalent basis - Non-GAAP Financial Measure Net interest income, on a taxable equivalent basis, is presented with its different components in Tables 2 and 3 for the quarter and six months ended June 30, 2026, as compared with the same period in 2025, segregated by major categories of interest earning assets and interest-bearing liabilities. The main sources of tax-exempt interest income are certain loans and investments in obligations of the U.S. Government, its agencies and sponsored entities, and certain obligations of the Commonwealth of Puerto Rico and its agencies and assets held by the Corporation’s international banking entities. On Tables 2 and 3, the interest income has been converted to a taxable equivalent basis, using the applicable statutory income tax rates for each period net of interest expense that the Puerto Rico tax law requires to be disallowed, based on an equal proportion of tax-exempt assets to total assets, and by an allocation of general and administrative expenses attributed to exempt income, reducing the benefit of the tax-exempt income. The effective yield, on a taxable equivalent basis, will vary depending on the level of these expenses that are attributed to the available exempt income. Under Puerto Rico tax law, the exempt interest can be deducted up to the amount of taxable income. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and exempt sources. Tangible Common Equity and Tangible Assets Tangible common equity, tangible common equity ratio, tangible assets and tangible book value per common share are non-GAAP financial measures. Tangible common equity ratio and tangible book value per common share should be used in conjunction with more traditional bank capital ratios commonly used by banks and analysts to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase accounting method for mergers and acquisitions. 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. The Corporation presents 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 Form 10-Q means return on average tangible common equity as adjusted to add back unrealized (gains) losses on AFS securities, including those transferred to HTM. Tangible common equity, tangible assets and other related measures should not be used in isolation or as a substitute for stockholders' equity, total assets or any other measure calculated in accordance with GAAP. Moreover, the way the Corporation calculates its tangible common equity, tangible assets and other related measures may differ from that of other companies reporting measures with similar names. Table 9 provides a reconciliation of total stockholders’ equity to tangible common equity and total assets to tangible assets as of June 30, 2026 and December 31, 2025. CRITICAL ACCOUNTING POLICIES / ESTIMATES The accounting and reporting policies followed by the Corporation and its subsidiaries conform to U.S. GAAP and general practices within the financial services industry. Various elements of the Corporation’s accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions and other subjective assessments. Management has discussed the development and selection of the critical accounting estimates with the Corporation’s Audit Committee. The Corporation has identified as critical accounting estimates those related to: (i) Fair Value Measurement of Financial Instruments; (ii) Loans and Allowance for Credit Losses; (iii) Income Taxes; (iv) Goodwill and Other Intangible Assets; and (v) Pension and Postretirement Benefit Obligations. For a summary of these critical accounting estimates, refer to the MD&A included in the 2025 Form 10-K. Also, refer to Note 2 to the Consolidated Financial Statements included in the 2025 Form 10-K for a summary of the Corporation’s significant accounting policies including those considered critical accounting estimates and to Note 3 to the Consolidated Financial Statements included in this Form 10-Q for information on recently adopted accounting standard updates. 96 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) STATEMENT OF OPERATIONS ANALYSIS NET INTEREST INCOME Net interest income (“NII”) for the quarter ended June 30, 2026 was $693.4 million, an increase of $61.9 million, when compared to the same quarter in 2025. NII growth was attributable to higher income from investments in U.S Treasury Securities, loan growth and lower cost of deposits by $23.8 million, primarily due to P.R. public deposits. Net interest income on a taxable equivalent basis for the second quarter of 2026 was $788.8 million, an increase of $91.6 million when compared to the same period in 2025. Net interest margin (“NIM”) for the quarter was 3.66%, an increase of 17 basis points when compared to the second quarter of 2025. On a taxable equivalent basis, NIM for the second quarter of 2026 was 4.17%, higher by 32 basis points compared to the second quarter of 2025, mainly due to higher level of tax-exempt securities and loans. NIM expansion, when compared to the same quarter of the previous year, was primarily due to higher yields on U.S. Treasury securities and lower deposit costs resulting from the repricing of market-linked high-cost deposits, mainly P.R. public deposits. Total cost of deposits decreased 21 basis points to 1.57% compared to the second quarter of 2025. Excluding P.R. public deposits, total deposit costs decreased five basis points to 1.10% compared to the same quarter in 2025. On a taxable equivalent basis, the main drivers of the increase for the second quarter of 2026 compared to the second quarter of 2025 were: - higher income from loans by $40.2 million, mostly due to higher average loan portfolio balances by $2.0 billion across most portfolios, along with higher yields from auto, leases and mortgage portfolios. When compared to the second quarter of 2025,  loan yields increased three basis points to 7.53%; - higher income from U.S. Treasury securities of $52.9 million, or 43 basis points, attributable to higher average balances from purchases and reinvestments in higher-yielding U.S. Treasury securities, including $2.5 billion of U.S. Treasury Notes ("U.S. T- Notes") purchased in the third quarter of 2025 and $1.1 billion U.S. T-Notes purchased in the second quarter of 2026; and - lower interest expense on deposits by $23.8 million or 28 basis points. The cost of interest-bearing deposits decreased by 28 basis points, driven by repricing of market-linked P.R. public deposits which decreased by 61 basis points to 2.61%, coupled with a decrease in Popular U.S. deposit costs attributable to repricing across most deposit products; partially offset by: - lower income from money market investments by $22.5 million or 76 basis points, as a result of lower average balances, driven by higher re-investment activity in U.S. Treasury securities and loan growth, coupled with lower yields resulting from declining short-term market rates during late 2025. 97 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Table 2 - Analysis of Levels & Yields on a Taxable Equivalent Basis (Non-GAAP) Quarter ended June 30, 2026 _(In millions) · (In thousands)_ | Average Volume / 2026 | Average Volume / 2025 | Average Volume / Variance | Average Yields / Costs / 2026 | Average Yields / Costs / 2025 | | Interest / 2026 | Interest / 2025 | Interest / Variance | Variance Attributable to / Rate | Variance Attributable to / Volume | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | $5,095 | $6,251 | $(1,156) | 3.70% | 4.46% | Money market investments | $47,021 | $69,532 | $(22,511) | $(10,800) | $(11,711) | | 31,091 | 28,809 | 2,282 | 3.69 | 3.29 | Investment securities [1] | 286,115 | 236,372 | 49,743 | 25,813 | 23,930 | | 32 | 27 | 5 | 5.76 | 5.99 | Trading securities | 454 | 407 | 47 | (16) | 63 | | 36,218 | 35,087 | 1,131 | 3.69 | 3.50 | Total money market, investment and trading securities | 333,590 | 306,311 | 27,279 | 14,997 | 12,282 | | | | | | | Loans: | | | | | | | 19,932 | 18,676 | 1,256 | 6.73 | 6.73 | Commercial | 334,494 | 313,493 | 21,001 | (80) | 21,081 | | 1,764 | 1,459 | 305 | 7.90 | 8.19 | Construction | 34,729 | 29,806 | 4,923 | (1,113) | 6,036 | | 1,970 | 1,963 | 7 | 7.45 | 7.18 | Leasing | 36,680 | 35,249 | 1,431 | 1,307 | 124 | | 8,732 | 8,339 | 393 | 6.15 | 5.89 | Mortgage | 134,236 | 122,873 | 11,363 | 5,431 | 5,932 | | 3,310 | 3,211 | 99 | 13.74 | 14.00 | Consumer | 113,356 | 112,083 | 1,273 | (1,995) | 3,268 | | 3,867 | 3,937 | (70) | 9.32 | 9.14 | Auto | 89,901 | 89,706 | 195 | 1,809 | (1,614) | | 39,575 | 37,585 | 1,990 | 7.53 | 7.50 | Total loans | 743,396 | 703,210 | 40,186 | 5,359 | 34,827 | | $75,793 | $72,672 | $3,121 | 5.70% | 5.57% | Total earning assets | $1,076,986 | $1,009,521 | $67,465 | $20,356 | $47,109 | | | | | | | Interest bearing deposits: | | | | | | | $8,819 | $8,062 | $757 | 1.69% | 1.71% | NOW and money market | $37,237 | $34,288 | $2,949 | $(1,647) | $4,596 | | 14,817 | 14,605 | 212 | 0.78 | 0.83 | Savings | 28,640 | 30,378 | (1,738) | (1,134) | (604) | | 8,907 | 8,532 | 375 | 2.95 | 3.15 | Time deposits | 65,411 | 67,032 | (1,621) | (4,675) | 3,054 | | 21,502 | 20,333 | 1,169 | 2.61 | 3.22 | P.R. public deposits | 139,966 | 163,360 | (23,394) | (32,122) | 8,728 | | 54,045 | 51,532 | 2,513 | 2.01 | 2.29 | Total interest bearing deposits | 271,254 | 295,058 | (23,804) | (39,578) | 15,774 | | 15,268 | 14,825 | 443 | | | Non-interest bearing demand deposits | | | | | | | 69,313 | 66,357 | 2,956 | 1.57 | 1.78 | Total deposits | 271,254 | 295,058 | (23,804) | (39,578) | 15,774 | | 539 | 470 | 69 | 3.85 | 4.52 | Short-term borrowings | 5,172 | 5,300 | (128) | (831) | 703 | | 741 | 832 | (91) | 6.38 | 5.79 | Other medium and long-term debt | 11,794 | 11,965 | (171) | 1,253 | (1,424) | | 55,325 | 52,834 | 2,491 | 2.09 | 2.36 | Total interest bearing liabilities (excluding demand deposits) | 288,220 | 312,323 | (24,103) | (39,156) | 15,053 | | 5,200 | 5,013 | 187 | | | Other sources of funds | | | | | | | $75,793 | $72,672 | $3,121 | 1.53% | 1.72% | Total source of funds | $288,220 | $312,323 | $(24,103) | $(39,156) | $15,053 | | | | | 4.17% | 3.85% | Net interest margin/ income on a taxable equivalent basis (Non- GAAP) | $788,766 | $697,198 | $91,568 | $59,512 | $32,056 | | | | | 3.61% | 3.21% | Net interest spread | | | | | | | | | | | | Taxable equivalent adjustment | 95,347 | 65,649 | 29,698 | | | | | | | 3.66% | 3.49% | Net interest margin/ income non-taxable equivalent basis (GAAP) | $693,419 | $631,549 | $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. NII for the six months ended June 30, 2026 was $1.4 billion, an increase of $126.5 million when compared to the same period in 2025. The NII increase was attributable to higher income from U.S. Treasury securities and loan growth, and lower cost on deposits by $62.2 million, mainly due to lower cost of P.R. public deposits by 64 basis points compared to the same period in 2025. NII on a taxable equivalent basis (“FTE”) of $1.5 billion, increased $185.5 million when compared with the same period of 2025. NIM increased 22 basis points to 3.67%. NIM FTE was 4.16%, an increase of 36 basis points when compared to the same period in 2025. NIM expansion was mainly driven by money market and investments securities yields which increased by 17 basis points, purchases and re-investments of maturities into higher yielding U.S. Treasury securities, and lower deposit costs resulting mainly from the repricing of P.R. 98 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) public market-linked high-cost deposits. Total cost of deposits decreased 24 basis points to 1.57% compared to the same period in 2025. Excluding P.R. public deposits, total deposit costs decreased seven basis points to 1.09% compared to the same period in 2025. On a taxable equivalent basis, the main drivers for the six months ended on June 30, 2026 compared to the six months ended June 30, 2025: - higher income from loans by $87.2 million, or four basis points, driven by loan growth particularly across most portfolios, along with higher loan yields driven by the auto, leases and mortgage portfolios; - higher income from U.S. Treasury securities by $95.3 million, or 44 basis points, primarily reflecting higher average balances due to purchases of and reinvestments in higher-yielding U.S. Treasury securities including $2.5 billion of U.S. T-Notes purchased in the third quarter of 2025 and $1.1 billion U.S. T-Notes purchased in the second quarter of 2026; and - lower interest expense on deposits by $62.2 million or 24 basis points. The cost of interest-bearing deposits declined by 32 basis points, driven by a 64 basis point decrease in market-linked P.R. public deposits to 2.63%, coupled with lower deposit costs in Popular U.S. attributable to repricing of online savings and time deposits; partially offset by: - lower income from money market investments by $48.4 million or 76 basis points, reflecting lower average balances and lower yields attributable to the decline in short-term market rates during late 2025. 99 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Table 3 - Analysis of Levels & Yields on a Taxable Equivalent Basis (Non-GAAP) Six month period ended June 30, 2026 _(In millions) · (In thousands)_ | Average Volume / 2026 | Average Volume / 2025 | Average Volume / Variance | Average Yields / Costs / 2026 | Average Yields / Costs / 2025 | | Interest / 2026 | Interest / 2025 | Interest / Variance | Variance Attributable to / Rate | Variance Attributable to / Volume | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | $4,973 | $6,314 | $(1,341) | 3.70% | 4.46% | Money market investments | $91,261 | $139,698 | $(48,437) | $(21,575) | $(26,862) | | 30,454 | 28,613 | 1,841 | 3.61 | 3.22 | Investment securities [1] | 545,012 | 456,807 | 88,205 | 50,353 | 37,852 | | 33 | 29 | 4 | 5.66 | 5.90 | Trading securities | 916 | 847 | 69 | (36) | 105 | | 35,460 | 34,956 | 504 | 3.62 | 3.45 | Total money market, investment and trading securities | 637,189 | 597,352 | 39,837 | 28,742 | 11,095 | | | | | | | Loans: | | | | | | | 19,828 | 18,585 | 1,243 | 6.72 | 6.72 | Commercial | 660,881 | 619,461 | 41,420 | (21) | 41,441 | | 1,731 | 1,385 | 346 | 8.02 | 8.15 | Construction | 68,796 | 55,995 | 12,801 | (964) | 13,765 | | 1,977 | 1,951 | 26 | 7.40 | 7.14 | Leasing | 73,139 | 69,693 | 3,446 | 2,485 | 961 | | 8,698 | 8,254 | 444 | 6.11 | 5.86 | Mortgage | 265,915 | 241,789 | 24,126 | 10,791 | 13,335 | | 3,310 | 3,207 | 103 | 13.80 | 14.02 | Consumer | 226,486 | 222,989 | 3,497 | (3,386) | 6,883 | | 3,880 | 3,929 | (49) | 9.32 | 9.11 | Auto | 179,398 | 177,511 | 1,887 | 4,154 | (2,267) | | 39,424 | 37,311 | 2,113 | 7.53 | 7.49 | Total loans | 1,474,615 | 1,387,438 | 87,177 | 13,059 | 74,118 | | $74,884 | $72,267 | $2,617 | 5.68% | 5.54% | Total earning assets | $2,111,804 | $1,984,790 | $127,014 | $41,801 | $85,213 | | | | | | | Interest bearing deposits: | | | | | | | $8,687 | $8,022 | $665 | 1.66% | 1.72% | NOW and money market | $71,397 | $68,290 | $3,107 | $(5,927) | $9,034 | | 14,725 | 14,556 | 169 | 0.77 | 0.85 | Savings | 56,353 | 61,658 | (5,305) | (3,967) | (1,338) | | 8,812 | 8,466 | 346 | 2.97 | 3.18 | Time deposits | 129,654 | 133,713 | (4,059) | (9,545) | 5,486 | | 20,935 | 20,310 | 625 | 2.63 | 3.27 | P.R. public deposits | 273,268 | 329,260 | (55,992) | (65,601) | 9,609 | | 53,159 | 51,354 | 1,805 | 2.01 | 2.33 | Total interest bearing deposits | 530,672 | 592,921 | (62,249) | (85,040) | 22,791 | | 15,185 | 14,758 | 427 | | | Non-interest bearing demand deposits | | | | | | | 68,344 | 66,112 | 2,232 | 1.57 | 1.81 | Total deposits | 530,672 | 592,921 | (62,249) | (85,040) | 22,791 | | 568 | 297 | 271 | 3.86 | 4.57 | Short-term borrowings | 10,875 | 6,726 | 4,149 | (1,116) | 5,265 | | 757 | 847 | (90) | 6.32 | 5.72 | Other medium and long-term debt | 23,709 | 24,077 | (368) | 2,474 | (2,842) | | 54,484 | 52,498 | 1,986 | 2.09 | 2.40 | Total interest bearing liabilities (excluding demand deposits) | 565,256 | 623,724 | (58,468) | (83,682) | 25,214 | | 5,215 | 5,011 | 204 | | | Other sources of funds | | | | | | | $74,884 | $72,267 | $2,617 | 1.52% | 1.74% | Total source of funds | $565,256 | $623,724 | $(58,468) | $(83,682) | $25,214 | | | | | 4.16% | 3.80% | Net interest margin/ income on a taxable equivalent basis (Non- GAAP) | $1,546,548 | $1,361,066 | $185,482 | $125,483 | $59,999 | | | | | 3.59% | 3.14% | Net interest spread | | | | | | | | | | | | Taxable equivalent adjustment | 182,949 | 123,920 | 59,029 | | | | | | | 3.67% | 3.45% | Net interest margin/ income non-taxable equivalent basis (GAAP) | $1,363,599 | $1,237,146 | $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. 100 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Provision for Credit Losses - Loans Held-in-Portfolio and Unfunded Commitments For the quarter ended June 30, 2026, the Corporation recorded a provision for credit losses related to loans held-in-portfolio and unfunded commitments of $65.5 million, an increase of $17.1 million when compared to the same quarter of the previous year. The provision for loan and lease losses was $65.2 million, an increase of $15.6 million compared to the same quarter of the previous year, and the provision for unfunded commitments was $0.4 million, an unfavorable variance of $1.5 million, mainly driven by a release of the unfunded commitments reserve in BPPR during the second quarter of 2025. As discussed in Note 8 to the Consolidated Financial Statements, the Corporation estimates the ACL by weighting the outputs of optimistic, baseline, and pessimistic scenarios. Among the three scenarios evaluated to estimate the ACL, the baseline scenario was assigned the highest probability, followed by the pessimistic scenario, and then the optimistic scenario with the lowest probability. There were no changes to the probability weights assigned during the second quarter of 2026 when compared to June 30, 2025. The major drivers of the changes in the provision for loan losses during the quarter by business segment when compared to the same quarter in 2025, were as follows: - In the BPPR segment, the provision for loan losses was $61.7 million, an increase of $18.6 million. The increase was primarily attributable to a $51.4 million increase in provision expense for the commercial loan portfolio, reflecting higher specific reserves, including a portion of the $71.3 million charge-off related to a $155.0 million non-performing loan transferred to held-for-sale that had not been previously reserved, as well as specific reserves for two commercial and industrial loans totaling $129.0 million that were placed on non-performing status during the second quarter of 2026. This increase was partially offset by a $32.7 million decrease in provision expense for the consumer and mortgage loan segments driven by improved credit metrics in the consumer portfolios and improved macroeconomic assumptions and higher net recoveries in the mortgage loan segment.  - In the Popular U.S. segment, the provision for loan losses was $3.4 million for the quarter ended June 30, 2026, a decrease of $3.0 million, mainly driven by lower provisions in both the commercial and mortgage segments, with reductions of $1.6 million and $1.3 million, respectively. The favorable variance was due to higher qualitative reserves for commercial loans established in the second quarter of 2025, in addition to an overall improvement in credit quality. For the six months ended June 30, 2026, the provision for credit losses related to loans held-in-portfolio and unfunded commitments amounted to $141.3 million, an increase of $29.0 million, compared to the six months ended June 30, 2025. The provision for loan losses was $140.8 million, an increase of $26.1 million, and the provision related to reserves for unfunded commitments was $0.5 million, an unfavorable variance of $2.9 million, mainly driven by a release of the unfunded commitments reserves by $2.4 million in the six-month period ended June 30, 2025. The major drivers of the change in the provision for loan losses during the six months ended June 30, 2026 by business segment when compared to the same period in 2025, were as follows: - In the BPPR segment, the provision for loan losses was $136.2 million, an increase of $39.2 million, driven by higher provision expense in the commercial loan segment associated with the $71.3 million charge-off mentioned above, partially offset by lower provision in the mortgage loan portfolio due to higher recoveries recognized, consumer loans with lower reserves, and changes in macroeconomic forecasts. - In the Popular U.S. segment, the provision for loan losses was $5.8 million, a decrease of $13.1 million, driven by lower provision expense in both the commercial and consumer loan segments, due to higher qualitative reserves established in 2025 to address ACL coverage and improvements in overall credit quality. At June 30, 2026, the total allowance for credit losses for loans held-in-portfolio amounted to $784.8 million, a decrease of $23.2 million when compared to December 31, 2025. The ratio of the allowance for credit losses to loans held-in-portfolio was 1.97% at June 30, 2026 compared to 2.05 % at December 31, 2025. Refer to Note 8 to the Consolidated Financial Statements for additional information on the Corporation’s methodology to estimate its ACL. Refer to the Credit Risk section of this MD&A for a detailed analysis of net charge-offs, non- performing assets, the allowance for credit losses and selected loan losses statistics. Non-Interest Income Non-interest income for the second quarter of 2026 of $180.5 million, an increase of $12.1 million when compared with the same quarter for the previous year. The variance was primarily due to: - higher other service fees by $8.3 million, primarily driven by a $5.9 million increase in debit and credit card fees, reflecting growth in transaction activity and higher purchase volumes, coupled with a $1.1 million increase in asset management fees driven by higher assets under management; and - higher other operating income by $2.4 million, mainly due to a $6.1 million increase in earnings from an investment accounted for under the equity method that benefited from an unrealized gain of $3.1 million in the valuation of an investment, partially offset by two items recognized in Q2 2025, a $2.8 million reimbursement of excess interest paid to the U.S. Internal Revenue Service 101 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) (“IRS”) related to late payment penalties on tax withholdings for intercompany distributions previously disclosed in 2024, and a $1.2 million cash distribution from the exit of a legacy equity investment. Non-interest income for the six months ended June 30, 2026 of $346.2 million, an increase of $25.6 million when compared to the same period of the previous year. The main factors that contributed to the variance were: - higher other service fees by $16.7 million, primarily driven by an $11.3 million increase in debit and credit card fees, reflecting growth in transaction activity and higher purchase volumes including those of commercial credit cards, coupled with a $4.3 million increase in asset management fees driven by higher assets under management; and - higher other operating income by $6.2 million, primarily reflecting a $10.5 million increase in earnings from an investment accounted for under the equity method, partially offset by a $3.9 million reimbursement of excess interest paid to the U.S. Internal Revenue Service (“IRS”) related to late payment penalties on tax withholdings for intercompany distributions, and a $1.2 million cash distribution from the exit of a legacy equity investment. Operating Expenses Operating expenses for the second quarter of 2026 totaled $484.1 million, a decrease of $8.6 million when compared to the same quarter of 2025. The main drivers of the variance were: - lower other operating expenses by $10.4 million, attributable to a $5.6 million decrease in insurance claim reserves compared to the second quarter of 2025 and a $3.1 million decrease in reserves for operational losses; and - lower professional fees by $3.6 million, primarily reflecting lower advisory fees associated with corporate initiatives and regulatory compliance activities, partially offset by: - higher technology and software expenses by $6.3 million, primarily reflecting increased software cost amortization driven by continued investments in technology and transformation initiatives, together with higher IT consulting fees; partially offset by lower network management service expenses. Operating expenses for the six months ended June 30, 2026 were $951.4 million, a decrease of $12.3 million when compared to the same period of 2025. The variance was primarily due to: - lower other operating expenses by $19.1 million, primarily due to lower reserves for operational losses by $5.2 million and lower insurance claim reserves by $5.6 million, higher gains on the sale of OREO properties by $3.2 million and a $2.4 million decrease in pension expense due to a lower discount rate used in the actuarial analysis when compared to the same period of 2025; - lower professional fees by $4.9 million, primarily driven by lower advisory expenses associated with corporate initiatives and regulatory compliance activities; partially offset by: - higher technology and software expenses by $11.7 million, primarily attributable to increases in software cost amortization, equipment depreciation, and IT consulting fees driven by continued investments in technology and transformation initiatives; partially offset by lower application and network management service charges; and - higher personnel costs by $3.0 million, mainly due to a $4.1 million increase in salaries driven by higher headcount and annual salary revisions, together with a $3.2 million increase in other compensation expenses; partially offset by a $4.2 million decrease in profit-sharing expense when compared to the same period of 2025. 102 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Table 4 - Operating Expenses | (Dollars in thousands) | Quarters ended June 30, 2026 | Quarters ended June 30, 2025 | Quarters ended June 30, / Variance | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | Six Months Ended June 30, / Variance | | --- | --- | --- | --- | --- | --- | --- | | Salaries | $134,448 | $132,752 | 1,696 | $269,261 | 263,702 | 5,559 | | Commissions, incentives and other bonuses | 39,911 | 40,551 | (640) | 74,814 | 78,537 | (3,723) | | Profit sharing | 10,000 | 13,000 | (3,000) | 8,797 | 13,000 | (4,203) | | Pension, postretirement and medical insurance | 18,773 | 18,458 | 315 | 33,669 | 33,024 | 645 | | Other personnel costs, including payroll taxes | 25,899 | $24,594 | 1,305 | 58,559 | 53,805 | 4,754 | | Total personnel costs | 229,031 | 229,355 | (324) | 445,100 | 442,068 | 3,032 | | Net occupancy expenses | 27,764 | 29,140 | (1,376) | 55,063 | 56,358 | (1,295) | | Equipment expenses | 5,879 | 5,789 | 90 | 11,108 | 11,091 | 17 | | Other taxes | 17,707 | 18,632 | (925) | 35,384 | 37,357 | (1,973) | | Professional fees | 24,484 | 28,108 | (3,624) | 50,037 | 54,933 | (4,896) | | Technology and software expenses | 90,971 | 84,696 | 6,275 | 180,110 | 168,364 | 11,746 | | Processing and transactional services | | | | | | | | Credit and debit cards | 13,236 | 13,044 | 192 | 27,442 | 25,970 | 1,472 | | Other processing and transactional services | 24,030 | 24,817 | (787) | 48,911 | 49,672 | (761) | | Total processing and transactional services | 37,266 | 37,861 | (595) | 76,353 | 75,642 | 711 | | Communications | 4,261 | 5,010 | (749) | 8,770 | 9,914 | (1,144) | | Business promotion | | | | | | | | Rewards and customer loyalty programs | 19,600 | 18,047 | 1,553 | 34,992 | 34,412 | 580 | | Other business promotion | 8,300 | 8,338 | (38) | 15,768 | 15,648 | 120 | | Total business promotion | 27,900 | 26,385 | 1,515 | 50,760 | 50,060 | 700 | | Deposit insurance | 9,977 | 9,407 | 570 | 19,894 | 19,442 | 452 | | Other real estate owned (OREO) expense (income) | (3,238) | (4,124) | 886 | (7,856) | (7,454) | (402) | | Other operating expenses | | | | | | - | | Operational losses | 3,118 | 6,185 | (3,067) | 7,093 | 12,323 | (5,230) | | All other | 8,626 | 15,932 | (7,306) | 18,856 | 32,693 | (13,837) | | Total other operating expenses | 11,744 | 22,117 | (10,373) | 25,949 | 45,016 | (19,067) | | Amortization of intangibles | 384 | 385 | (1) | 768 | 982 | (214) | | Total operating expenses | $484,130 | $492,761 | (8,631) | 951,440 | 963,773 | (12,333) | Income Taxes For the quarter ended June 30, 2026, the Corporation recorded income tax expense of $45.7 million, a decrease of $2.2 million when compared to the same period in 2025. The effective tax rate ("ETR") decreased to 14.1% from 18.5% driven by higher exempt income and other benefits including the purchase of tax credits and income subject to preferential income tax rates. For the six-month period ended June 30, 2026, income tax expense was $92.7 million, compared to $92.9 million reported for the same period in 2025. The ETR for the six-month period ended June 30, 2026, was 15.0% compared to 19.3% in the same period for 2025 driven by higher exempt income and other benefits, including the vesting of stock awards, the purchase of tax credits, and income subject to preferential income tax rates. At June 30, 2026, the Corporation had a net deferred tax asset amounting to $794.0 million, net of a valuation allowance of $470.6 million.  The net deferred tax asset related to the U.S. Operations was $219.2 million, net of a valuation allowance of $386.6 million. Refer to Note 24 to the Consolidated Financial Statements for additional information on deferred tax asset balances. REPORTABLE SEGMENT RESULTS The Corporation’s reportable segments for managerial reporting purposes consist of Banco Popular de Puerto Rico and Popular U.S. A Corporate group has also been defined to support the reportable segments. For a description of the Corporation’s reportable segments, including additional financial information and the underlying management accounting process, refer to Note 26 to the Consolidated Financial Statements. The corporate group reported a net income of $8.8 million for the quarter ended June 30, 2026, compared with a net income of $3.3 million for the same quarter of the previous year. For the six months ended June 30, 2026, the corporate group reported a net income of $13.2 million, compared to a net loss of $0.3 million for the same period of the previous year, mainly due to higher income from equity method investments. There were no intercompany distributions between the U.S. subsidiaries and the bank holding companies. Highlights on the earnings results for the reportable segments are discussed below: 103 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Banco Popular de Puerto Rico The Banco Popular de Puerto Rico (“BPPR”) reportable segment’s net income amounted to $232.9 million for the quarter ended June 30, 2026, higher by $48.4 million when compared to the same quarter of the previous year. The main drivers for a higher income included: - net interest income increased $51.4 million to $589.9 million. The increase was primarily driven by higher income from money market and investment securities by $10.1 million or three basis points mainly driven by higher income of U.S. Treasury securities and by higher income from loans by $20.9 million driven by loan growth across most portfolios. The increase was also attributable to a $20.1 million, or 28 basis point, decrease on interest expense from deposits, primarily due to a 61 basis point reduction in the cost of market-linked Puerto Rico public deposits driven by a decline in short-term market rates when compared to the same period in 2025. NIM expanded 17 basis points to 3.85%. Deposit costs, at 1.32%, were lower by 21 basis points; - higher non-interest income by $10.1 million mainly due to higher service fees by $7.9 million driven by higher debit and credit card fees due to higher transaction activity and higher purchase volumes, as well as an increase in asset management fees; - lower operating expenses by $4.1 million mostly due to lower operational loss reserves by $9.0 million, partially offset by higher technology and software expenses by $3.1 million due to continuing investments in technology and transformation initiatives and higher professional fees by $1.1 million; and - lower income tax expense by $3.5 million mainly due to higher exempt income; partially offset by: - higher provision for credit losses by $18.6 million which resulted in a provision of $61.8 million for the quarter ended June 30, 2026. Refer to section "Provision for credit losses-Loans held-in-portfolio and unfunded commitments" in this MD&A for more discussion over the drivers of the provision for credit losses by business segment. For the six months ended June 30, 2026, the BPPR segment recorded a net income of $437.3 million compared to a net income of $350.4 million for the same period of the previous year. The factors that contributed to the variance in the financial results included the following: - net interest income increased $97.5 million to $1.2 billion compared with the same period of 2025. The increase was primarily driven by higher income from loans by $41.0 million driven by loan growth across most portfolios and higher income from money market and investment securities by $6.7 million mainly driven by U.S. Treasury securities, partially offset by lower income from money market investments. The increase was also attributable to a $49.5 million, or 30 basis points, decrease in interest expense on deposits, primarily due to a 64 basis point reduction in the cost of market-linked Puerto Rico public deposits driven by a decline in short-term market rates. NIM expanded 20 basis points to 3.86%. Deposit costs, at 1.31%, were lower by 23 basis points; - higher non-interest income by $17.3 million mainly due to higher service fees by $14.8 mainly due to higher debit and credit card fees driven by higher transaction activity and higher purchase volumes, as well as an increase in asset management fees; - lower operating expenses by $6.3 million mostly due to lower operational losses by $11.0 million and higher gains on repossessed unit sales by $3.2 million, partially offset by higher technology and software expenses by $4.7 million due to continuing investments in technology and transformation initiatives, and higher personnel costs by $2.1 million mainly due to an increase in salaries expenses driven by exempt employees; and - lower income tax expense by $6.4 million due mainly to higher exempt income; partially offset by: - the provision for credit losses increased by $39.2 million to $135.1 million. Refer to section "Provision for credit losses-Loans held-in-portfolio and unfunded commitments" in this MD&A for more discussion over the drivers of the provision for credit losses by business segment. Popular U.S. For the quarter ended June 30, 2026, the reportable segment of Popular U.S. reported a net income of $36.6 million, compared with a net income of $22.6 million for the same quarter of the previous year. The main drivers for higher net income are the following: - Net interest income increased $10.9 million to $113.1 million. The increase was primarily driven by higher income from loans resulting from higher average balances and yields in the commercial portfolio by 16 basis points, or $8.8 million. The increase was also due to a $5.1 million, or 24 basis points, decrease in interest expense on deposits, primarily due to repricing across most deposit products driven by a decline in short-term market rates; and 104 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) - the provision for loan losses was $3.4 million, a decrease of $3.0 million. Refer to section "Provision for credit losses-Loans held- in-portfolio and unfunded commitments" in this MD&A for more discussion over the drivers of the provision for credit losses by business segment; partially offset by: - higher income tax expense by $5.0 million due to higher income before tax. For the six months ended June 30, 2026, the reportable segment of Popular U.S. recorded a net income of $73.6 million, compared with a net income of $37.4 million for the same period of the previous year. The factors that contributed to the variance in the financial results included the following: - Net interest income increased $29.6 million to $224.8 million. The increase was primarily driven by higher income from loans resulting from higher average balances and yields in the commercial portfolio. The increase also benefited from a $16.1 million, or 34 basis point, decrease in deposit interest expense, primarily due to repricing across most deposit products driven by a decline in short-term market rates; and - provision for loan losses was $5.8 million, a decrease of $13.1 million. Refer to section Provision for Credit Losses-Loans Held-in- Portfolio and Unfunded Commitments in this MD&A for more discussion over the drivers of the provision for credit losses by business segment; partially offset by: - higher income tax expense by $13.0 million due to higher income before tax. STATEMENT OF FINANCIAL CONDITION ANALYSIS Assets The Corporation’s total assets were $79.0 billion at June 30, 2026, compared to $75.3 billion at December 31, 2025. The variance in total assets of $3.7 billion was driven by an increase in AFS securities and loan growth across most portfolios, partially offset by a decrease in HTM securities. Refer to the Consolidated Statements of Financial Condition included in this report and to the following narrative for additional information. Money market investments and investment securities Money market investments decreased by $71.0 million as of June 30, 2026, when compared to December 31, 2025, due to the use of funds for loan growth and to the purchase of U.S. Treasury securities. AFS securities increased $4.2 billion, driven by investment in U.S. Treasury securities of $4.5 billion, partially offset by maturities and principal paydowns, mainly in mortgage-backed securities (“MBS”) and higher unrealized losses in AFS securities of $94.0 million. HTM securities decreased by $1.1 billion driven by maturities, partially offset by the accretion of $90.8 million of the discount related to U.S. Treasury securities previously reclassified from AFS to HTM. Refer to Note 5 and to ### Note 6 to the Consolidated Financial Statements for additional information with respect to the Corporation’s debt securities available-for- sale and held-to-maturity. Loans Loans held-in-portfolio were $39.7 billion at June 30, 2026, an increase of $422.3 million when compared to December 31, 2025. In the BPPR segment loan balances increased by $318.2 million, mainly in the mortgage, commercial and construction portfolios. The Popular U.S. segment also increased by $104.1 million mainly due to higher commercial real estate loans, partially offset by lower commercial multi- family and runoff from the exited residential mortgage business. At June 30, 2026, the Corporation’s loans to non-depository financial institutions (‘’NDFIs’’) amounted to $551.4 million, an increase of $6.4 million, compared to December 31, 2025. This increase was related to higher mortgage credit intermediaries by $24.8 million, mostly in Popular Bank, partially offset by decreases of $11.2 million in consumer and commercial credit intermediaries and $7.2 million in insurance companies. At June 30, 2026, the Corporation’s exposure to NDFIs was composed of $262.1 million to insurance companies for general corporate purposes unrelated to lending activities, $162.7 million related to consumer and commercial credit intermediaries, and $126.5 million related to mortgage credit intermediaries. All loans to NDFIs are current in their contractual payments and carry a ‘pass’ rating. Refer to Table 5 for a breakdown of the Corporation’s loan portfolio. Also, refer to Note 7 in the Consolidated Financial Statements for detailed information about the Corporation’s loan portfolio composition and loan purchases and sales. 105 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Table 5 - Loans Ending Balances | (In thousands) | June 30, 2026 | December 31, 2025 | Variance | | --- | --- | --- | --- | | Loans held-in-portfolio: | | | | | Commercial | | | | | Commercial multi-family | $2,399,424 | $2,455,790 | $(56,366) | | Commercial real estate non-owner occupied | 5,620,875 | 5,543,284 | 77,591 | | Commercial real estate owner occupied | 3,256,702 | 3,153,080 | 103,622 | | Commercial and industrial | 8,774,084 | 8,607,412 | 166,672 | | Total Commercial | 20,051,085 | 19,759,566 | 291,519 | | Construction | 1,732,075 | 1,674,899 | 57,176 | | Mortgage | 8,780,334 | 8,649,440 | 130,894 | | Leasing | 1,968,035 | 2,001,365 | (33,330) | | Consumer | | | - | | Credit cards | 1,237,997 | 1,256,717 | (18,720) | | Home equity lines of credit | 85,357 | 78,692 | 6,665 | | Personal | 1,952,725 | 1,906,228 | 46,497 | | Auto | 3,766,648 | 3,819,812 | (53,164) | | Other | 175,606 | 180,799 | (5,193) | | Total Consumer | 7,218,333 | 7,242,248 | (23,915) | | Total loans held-in-portfolio | $39,749,862 | $39,327,518 | $422,344 | | Loans held-for-sale: | | | | | Commercial | $83,700 | $- | $83,700 | | Mortgage | 4,879 | 9,998 | (5,119) | | Total loans held-for-sale | $88,579 | $9,998 | $78,581 | | Total loans | $39,838,441 | $39,337,516 | $500,925 | Other assets Other assets amounted to $1.8 billion at June 30, 2026, an increase of $56.2 million when compared to $1.7 billion at December 31, 2025. The variance was mainly driven by an increase of $33.6 million in investments under the equity method, primarily due to the equity pickup from our investment in BHD, and an increase in prepaid taxes, mainly municipal taxes of $22.4 million. Refer to Note 10 to the Consolidated Financial Statements for a breakdown of the principal categories that comprise the caption of “Other Assets” in the Consolidated Statements of Financial Condition at June 30, 2026 and December 31, 2025. Liabilities The Corporation’s total liabilities were $72.5 billion at June 30, 2026, an increase of $3.4 billion, when compared to December 31, 2025. The following is a discussion of the significant changes in liabilities. Deposits and Borrowings Total Deposits The Corporation’s deposits totaled $70.2 billion as of June 30, 2026, compared to $66.2 billion as of December 31, 2025. Ending deposit balances increased by $4.0 billion, while average quarterly balances grew by $3.0 billion. The average deposit balance, excluding P.R. public deposits, increased by $1.2 billion. At the end of the second quarter of 2026, P.R. public deposits were $22.7 billion, representing 32% of total deposits. P.R. public deposits are expected to range between $20 billion and $22 billion through the end of 2026. However, the rate at which public deposit balances may change is uncertain and difficult to predict. The amount and timing of any such change is likely to be impacted by, for example, the level of federal assistance and speed at which it is distributed, the use of local funds to cover federal assistance programs during the U.S. government shutdown, the financial condition, liquidity and cash management practices of the Puerto Rico Government and its instrumentalities, and the implementation of fiscal and debt adjustment plans approved pursuant to PROMESA or other actions mandated by the Fiscal Oversight and Management Board for Puerto Rico (the “Oversight Board”) or by reductions in federal funding available for Puerto Rico. P.R. public deposits costs are generally indexed to changes in short-term market rates with a one-quarter lag, in accordance with contractual terms. As a result, these deposits’ costs have typically lagged variable asset repricing. These deposits require that the bank pledge high credit quality securities as collateral; therefore, liquidity risks arising from deposit outflows are lower. Total deposit costs, excluding P.R. public deposits, demonstrate the stability of core deposits, low cost and low betas. The volume and cost of P.R. public deposits and the proportion of high-cost deposits in the U.S. directly impact the balance and mix of earning assets and therefore represent a key factor in the Corporation’s ability to expand its net interest margin. 106 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Refer to Table 6 for a breakdown of the Corporation’s deposits at June 30, 2026 and December 31, 2025. Table 6 - Deposits Ending Balances | (In thousands) | June 30, 2026 | December 31, 2025 | Variance | | --- | --- | --- | --- | | Deposits excluding P.R. public deposits: | | | | | Demand deposits | $15,085,454 | $15,298,712 | $(213,258) | | Savings, NOW and money market deposits (non-brokered) | 23,376,410 | 22,655,936 | 720,474 | | Savings, NOW and money market deposits (brokered) | 79,505 | 87,566 | (8,061) | | Time deposits (non-brokered) | 8,113,712 | 7,861,848 | 251,864 | | Time deposits (brokered CDs) | 873,116 | 866,772 | 6,344 | | Sub-total deposits excluding P.R. public deposits | 47,528,197 | 46,770,834 | 757,363 | | P.R. public deposits: | | | | | Demand deposits [1] | 11,438,732 | 11,534,301 | (95,569) | | Savings, NOW and money market deposits (non-brokered) | 10,347,936 | 7,134,217 | 3,213,719 | | Time deposits (non-brokered) | 918,250 | 750,741 | 167,509 | | Sub-total P.R. public deposits | 22,704,918 | 19,419,259 | 3,285,659 | | Total deposits | $70,233,115 | $66,190,093 | $4,043,022 | [1] Includes interest bearing demand deposits. Borrowings The Corporation’s borrowings totaled $1.5 billion at June 30, 2026 compared to $1.4 billion at December 31, 2025. Refer to Note 12 to the Consolidated Financial Statements for detailed information on the Corporation’s borrowings. Also, refer to the Liquidity section in this MD&A for additional information on the Corporation’s funding sources. Stockholders’ Equity Stockholders’ equity totaled $6.4 billion at June 30, 2026, an increase of $183.9 million when compared to December 31, 2025. The increase was principally due to net income for the six months ended June 30, 2026 of $523.9 million, the amortization of unrealized losses from securities previously reclassified to HTM of $72.6 million and a favorable variance in foreign currency translation adjustments of $22 million from our investment in BHD, partially offset by the after-tax effect of higher net unrealized losses in the AFS securities portfolio of $74.9 million and an increase in treasury stock of $277.9 million, mainly due to common stock repurchases, and common and preferred dividends declared of $97.5 million. Refer to the Consolidated Statements of Financial Condition, Comprehensive Income and Changes in Stockholders’ Equity for information on the composition of stockholders’ equity. During the six months ended June 30, 2026, Popular repurchased 1,988,767 shares of common stock for $280.5 million at an average price of $141.04 per share. The composition of the Corporation’s financing to total assets at June 30, 2026 and December 31, 2025 is included in Table 7. Table 7 - Financing to Total Assets | (Dollars in millions) | June 30, 2026 | December 31, 2025 | % (decrease) increase / from 2026 to 2025 | % of total assets / 2026 | % of total assets / 2025 | | --- | --- | --- | --- | --- | --- | | Non-interest-bearing core deposits | $15,096 | $15,304 | (1.4)% | 19.1% | 20.3% | | Interest-bearing core deposits | 49,039 | 46,017 | 6.6% | 62.1% | 61.1% | | Interest-bearing other deposits | 6,098 | 4,869 | 25.2% | 7.7% | 6.4% | | Repurchase agreements | 78 | 39 | 100.0% | 0.1% | 0.1% | | Other short-term borrowings | 675 | 650 | 3.8% | 0.9% | 0.9% | | Notes payable | 710 | 760 | (6.6)% | 0.9% | 1.0% | | Other liabilities | 843 | 1,460 | (42.3)% | 1.1% | 1.9% | | Stockholders’ equity | 6,433 | 6,249 | 2.9% | 8.1% | 8.3% | CAPITAL Regulatory Capital The Corporation, BPPR and PB are subject to regulatory capital requirements established by the Federal Reserve Board. The risk-based capital standards applicable to the Corporation, BPPR and PB (“Basel III capital rules") are based on the final capital framework for strengthening international capital standards, known as Basel III, of the Basel Committee on Banking Supervision. As of June 30, 2026, the Corporation’s, BPPR’s and PB’s capital ratios continue to exceed the minimum requirements for being “well-capitalized". The risk-based capital ratios presented in Table 8, which include common equity tier 1, Tier 1 capital, total capital and leverage capital as of June 30, 2026 and December 31, 2025. 107 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Table 8 - Capital Adequacy Data | (Dollars in thousands) | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | Common equity tier 1 capital: | | | | Common stockholders' equity - U.S. GAAP basis | $6,410,862 | 6,226,936 | | AOCI related adjustments due to opt-out election | 1,096,276 | 1,096,805 | | Goodwill, net of associated deferred tax liability (DTL) | (628,281) | (639,734) | | Intangible assets, net of associated DTLs | (4,308) | (5,076) | | Deferred tax assets and other deductions | (204,414) | (215,404) | | Common equity tier 1 capital | $6,670,135 | $6,463,527 | | Additional tier 1 capital: | | | | Preferred stock | 22,143 | 22,143 | | Additional tier 1 capital | $22,143 | $22,143 | | Tier 1 capital | $6,692,278 | $6,485,670 | | Tier 2 capital: | | | | Trust preferred securities subject to phase in as tier 2 | 192,674 | 192,674 | | Other inclusions (deductions), net | 522,000 | 517,723 | | Tier 2 capital | $714,674 | $710,397 | | Total risk-based capital | $7,406,952 | $7,196,067 | | Minimum total capital requirement to be well capitalized | $4,149,128 | $4,112,375 | | Excess total capital over minimum well capitalized | $3,257,824 | $3,083,692 | | Total risk-weighted assets | $41,491,279 | $41,123,753 | | Total assets for leverage ratio | $78,115,437 | $74,661,894 | | Risk-based capital ratios: | | | | Common equity tier 1 capital | 16.08% | 15.72% | | Tier 1 capital | 16.13 | 15.77 | | Total capital | 17.85 | 17.50 | | Tier 1 leverage | 8.57 | 8.69 | The Basel III capital rules provide that a depository institution is deemed to be well capitalized if it maintains a leverage ratio of at least 5%, a common equity Tier 1 ratio of at least 6.5%, a Tier 1 capital ratio of at least 8% and a total risk-based ratio of at least 10%. The Corporation, BPPR and PB leverage ratio, common equity Tier 1 ratio and Tier 1 capital ratio, respectively as of June 30, 2026, continue to exceed the minimum requirements for being “well-capitalized" under the Basel III capital rules. The increase in the common equity Tier I capital ratio, Tier I capital ratio, and total capital ratio, as of June 30, 2026 as compared to December 31, 2025 was mainly due to the six month period's earnings, partially offset by the repurchase of common stock, common stock dividends, and higher risk weighted assets driven by the increase in loans held-in-portfolio. The decrease in the leverage ratio was driven by higher total assets which are impacted by zero-risk weighted assets that did not have a significant impact on the risk weighted assets, partially offset by the six month period's earnings. Reconciliation to Tangible Common Equity and Tangible Assets Table 9 provides a reconciliation of total stockholders’ equity to tangible common equity and total assets to tangible assets as of June 30, 2026, and December 31, 2025. 108 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Table 9 - Reconciliation of Tangible Common Equity and Tangible Assets | (In thousands, except share or per share information) | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | Total stockholders’ equity | $6,433,005 | $6,249,079 | | Less: Preferred stock | (22,143) | (22,143) | | Less: Goodwill | (789,954) | (789,954) | | Less: Other intangibles | (4,308) | (5,076) | | Total tangible common equity | $5,616,600 | $5,431,906 | | Total assets | 78,972,300 | 75,348,267 | | Less: Goodwill | (789,954) | (789,954) | | Less: Other intangibles | (4,308) | (5,076) | | Total tangible assets | $78,178,038 | $74,553,237 | | Tangible common equity to tangible assets | 7.18% | 7.29% | | Common shares outstanding at end of period | 63,866,681 | 65,719,385 | | Tangible book value per common share | $87.94 | $82.65 | | Line item | Quarterly average | Quarterly average | | --- | --- | --- | | Total stockholders’ equity | $6,354,694 | $6,938,571 | | Less: Preferred Stock | (22,143) | (22,143) | | Less: Goodwill | (789,954) | (789,954) | | Less: Other intangibles | (4,559) | (5,328) | | Total tangible equity before adjusting for the impact of unrealized (gains) losses on AFS securities including those transferred to HTM | $5,538,038 | $6,121,146 | | Return on average tangible common equity before adjusting the impact of unrealized (gains) losses on AFS securities including those transferred to HTM | 20.12% | 15.14% | | Add: Average unrealized (gains) losses on AFS securities | 824,631 | 56,761 | | Add: Average unrealized (gains) losses on AFS securities transferred to HTM | 184,136 | 259,058 | | Total tangible equity after add back of impact of unrealized (gains) losses on AFS securities, including those to HTM | $6,546,805 | $6,436,965 | | Return on average tangible common equity after add back of impact of unrealized (gains) losses on AFS securities including those transferred to HTM (''ROTCE'') | 17.02% | 14.39% | [1] Average balances exclude unrealized gains or losses on debt securities available-for-sale. RISK MANAGEMENT Market / Interest Rate Risk The Corporation’s assets that are mainly subject to market valuation risk are debt securities classified as available-for-sale. Refer to Note 5 and Note 6 to the Consolidated Financial Statements for further information on the debt securities available-for-sale and held-to-maturity portfolios. Debt securities classified as available-for-sale and held-to-maturity amounted to $24.8 billion and $6.2 billion, respectively, as of June 30, 2026. Other assets subject to market risk include mortgage servicing rights ("MSRs") with a fair value of $94.5 million as of June 30, 2026. Interest Rate Risk (“IRR") The Corporation’s net interest income is subject to various categories of interest rate risk, including repricing, basis, yield curve and option risks. In managing interest rate risk, management may alter the mix of floating and fixed rate assets and liabilities, change pricing schedules, adjust maturities through sales and purchases of investment securities, and enter into derivative contracts, among other alternatives. Management utilizes various tools to assess IRR, including NII simulation modeling, static gap analysis, and Economic Value of Equity (“EVE") to monitor the risk arising from the dynamic characteristics of assets and liabilities subject to IRR. The three methodologies complement each other and are used jointly in the evaluation of the Corporation’s IRR. NII simulation modeling is prepared for a five-year period, which in conjunction with the EVE analysis, provides management a better view of long-term IRR. The Corporation processes NII simulations under interest rate scenarios in which the yield curve is assumed to rise and decline by the same magnitude (parallel shifts). The rate scenarios considered in these market risk simulations include instantaneous parallel changes of -100, -200, +100, and +200 basis points during the succeeding twelve-month period. Assumptions included in these analyses include that the balance sheet remains flat, relative levels of market interest rates across all yield curve points and indexes, interest rate spreads, loan prepayments and deposit elasticity. Thus, they should not be relied upon as indicative of actual results and do not contemplate actions that 109 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) management may engage in as a response to future changes in interest rates. Additionally, the Corporation is also subject to the risk inherent in the use of different rate indexes for the repricing of assets and liabilities, as well as the risk of pricing lags due to contractual or timing differences between the market and management response to changes in the rate environment. These forward-looking computations are management’s best estimate based on known and available information and actual results may differ. The following table presents the results of the simulations at June 30, 2026 and December 31, 2025, assuming a static balance sheet and parallel changes over flat spot rates over a one-year time horizon: Table 10 - Net Interest Income Sensitivity (One Year Projection) | (Dollars in thousands) / Change in interest rate | June 30, 2026 / Amount Change | June 30, 2026 / Percent Change | December 31, 2025 / Amount Change | December 31, 2025 / Percent Change | | --- | --- | --- | --- | --- | | +200 basis points | (10,913) | (0.38) | (7,520) | (0.27) | | +100 basis points | (5,586) | (0.19) | (4,379) | (0.16) | | -100 basis points | 5,040 | 0.17 | 2,691 | 0.10 | | -200 basis points | 16,617 | 0.58 | 7,488 | 0.27 | As of June 30, 2026, NII simulations showed that the Corporation’s sensitivity position was liability sensitive. The variation in results as compared to December 31, 2025, was mainly due to an increase in market-linked Puerto Rico public sector deposits, partly offset by an increase in U.S. Treasury Bills. The profile reflects that in rising rate scenarios, the Corporation's net interest income would slightly decline during the one-year horizon due mainly to the large proportion of market-linked Puerto Rico public sector deposits, offset in part by variable rate loan repricing and intermediate maturity assets coming due within one year. The Corporation’s loan and investment portfolios are subject to prepayment risk. Prepayment risk also could have a significant impact on the duration of mortgage-backed securities and collateralized mortgage obligations. Trading The Corporation engages in trading activities in the ordinary course of business at its subsidiaries, BPPR and Popular Securities. Popular Securities’ trading activities consist primarily of market-making activities to meet expected customers’ needs related to its retail brokerage business, and purchases and sales of U.S. Government and government sponsored securities with the objective of realizing gains from expected short-term price movements. BPPR’s trading activities consist primarily of holding U.S. Government sponsored mortgage-backed securities and economic hedges of the related market risk with “TBA” (to-be-announced) market transactions. In addition, BPPR uses forward contracts or TBAs that have characteristics similar to that of the forecasted security and its conversion timeline to hedge its securitization pipeline. At June 30, 2026, the Corporation held trading securities with a fair value of $31.2 million, representing 0.04% of the Corporation’s total assets, compared with $36.6 million and 0.05%, respectively, at December 31, 2025. The trading portfolio consists principally of investment grade securities such as mortgage-backed securities of $26.7 million with a weighted average yield of 5.04% and U.S. Treasuries of $3.7 million with a weighted average yield of 2.00% at June 30, 2026 and $23.4 million with a yield of 5.20% and $12.5 million with a yield of 2.57%, respectively, as of December 31, 2025. The Corporation’s trading activities are limited by internal policies. For each of the two subsidiaries, the market risk assumed under trading activities is measured by the 5-day net value-at-risk (“VAR"), with a confidence level of 99%. The VAR measures the maximum estimated loss that may occur over a 5-day holding period, given a 99% probability. The Corporation’s trading portfolio had a 5-day VAR of $0.4 million for the last week in June 2026. VAR models include assumptions and estimates thus actual results could differ from the outputs from these models and assumptions. Back-testing is performed on model results to compare actual results against maximum estimated losses, in order to evaluate model and assumptions accuracy. In the opinion of management, the size and composition of the trading portfolio does not represent a significant source of market risk for the Corporation. Liquidity Liquidity Risk Management Process The Corporation has adopted policies and limits to monitor the Corporation’s liquidity position and that of its banking subsidiaries. Refer to the Enterprise Risk Management section of Management’s Discussion and Analysis included in the 2025 Form 10-K for information on the framework in place to monitor, review, and approve policies to measure, limit and manage funding activities and strategies impacting liquidity risk. Additionally, contingency funding plans are used to model various stress events of different magnitudes that affect different time 110 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) horizons, to assist management in evaluating the size of the liquidity buffers needed if those events occur. However, such models may not predict accurately how the market and customers might react to every event and are dependent on many assumptions. The objective of effective liquidity management is to ensure that the Corporation has sufficient liquidity to meet all its financial obligations, finance expected future growth, fund planned capital distributions and maintain a reasonable safety margin for cash needs under both normal and stressed market conditions. Sources of Liquidity Deposits, including customer deposits, brokered deposits and public funds deposits, continue to be the most significant source of funds for the Corporation, representing 89% of funding of the Corporation’s total assets as of June 30, 2026 and 88% as of December 31, 2025. The ratio of total ending loans to deposits remained at 57% at June 30, 2026 and 59% at December 31, 2025. In addition to traditional deposits, the Corporation maintains borrowing arrangements, which amounted to $1.5 billion in outstanding balances at June 30, 2026 (December 31, 2025 - $1.4 billion). A detailed description of the Corporation’s borrowings, including their terms, is included in Note 12 to the Consolidated Financial Statements. Also, the Consolidated Statements of Cash Flows in the accompanying Consolidated Financial Statements provide information on the Corporation’s cash inflows and outflows. The following sections provide further information on the Corporation’s major funding activities and needs, as well as the risks involved in these activities. Banking Subsidiaries Primary sources of funding for the Corporation’s banking subsidiaries (BPPR and PB or, collectively, “the banking subsidiaries") include retail, commercial and public sector deposits, brokered deposits, unpledged investment securities, mortgage loan securitization and, to a lesser extent, loan sales. In addition, the Corporation maintains borrowing facilities with the FHLB and at the discount window of the Federal Reserve Bank of New York (the “FRB") and has a considerable amount of collateral pledged that can be used to raise funds under these facilities. At June 30, 2026, the Corporation’s available liquidity decreased to $26.3 billion from $27.0 billion on December 31, 2025. During the second quarter of 2026, the Corporation continued to have significant on-balance sheet and off-balance sheet sources of liquidity. The liquidity sources of the Corporation at June 30, 2026 are presented in Table 11 below: Table 11 - Liquidity Sources | (In thousands) | June 30, 2026 / BPPR | June 30, 2026 / Popular U.S. | June 30, 2026 / Total | December 31, 2025 / BPPR | December 31, 2025 / Popular U.S. | December 31, 2025 / Total | | --- | --- | --- | --- | --- | --- | --- | | Unpledged securities and unused funding sources: | | | | | | | | Money market (excess funds at the Federal Reserve Bank) | $3,592,807 | $952,701 | $4,545,508 | $3,595,806 | $1,020,478 | $4,616,284 | | Unpledged securities | 4,997,192 | 742,829 | 5,740,021 | 5,215,981 | 1,057,129 | 6,273,110 | | FHLB borrowing capacity | 3,138,834 | 972,928 | 4,111,762 | 3,291,672 | 692,744 | 3,984,416 | | Discount window of the Federal Reserve Bank borrowing capacity | 8,108,977 | 3,814,202 | 11,923,179 | 8,472,866 | 3,644,486 | 12,117,352 | | Total available liquidity | $19,837,810 | $6,482,660 | $26,320,470 | $20,576,325 | $6,414,837 | $26,991,162 | Refer to Note 15 to the Consolidated Financial Statements for additional information of the Corporation’s borrowing facilities available through its banking subsidiaries. The principal uses of funds for the banking subsidiaries include loan originations, investment portfolio purchases, loan purchases and repurchases, repayment of outstanding obligations (including deposits), advances on certain serviced portfolios and operational expenses. Also, the banking subsidiaries assume liquidity risk related to collateral posting requirements for certain activities mainly in connection with contractual commitments, recourse provisions, servicing advances, derivatives and credit card licensing agreements. The banking subsidiaries maintain sufficient funding capacity to address large increases in funding requirements such as deposit outflows. The Corporation has established liquidity guidelines that require the banking subsidiaries to have sufficient liquidity to cover all short-term borrowings and a portion of deposits. Deposits are a key source of funding. Refer to Table 6 for a breakdown of deposits by major types. Core deposits are generated from a large base of consumer, corporate and public sector customers. Core deposits include certificates of deposit under $250,000, all interest- bearing transactional deposit accounts, non-interest-bearing deposits, and savings deposits. Core deposits exclude brokered deposits and certificates of deposit over $250,000. Core deposits, excluding P.R. public funds, which are fully collateralized, have historically provided the 111 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Corporation with a sizable source of relatively stable and low-cost funds. P.R. public funds, while linked to market interest rates, provide a stable source of funding with an attractive earning spread. As of June 30, 2026, total Puerto Rico public sector deposits were $22.7 billion, compared to $19.4 billion at December 31, 2025. Core deposits represented 91% of total deposits at $64.1 billion, as of June 30, 2026, compared with 92% at $60.9 billion as of December 31, 2025. Core deposits financed 84% of the Corporation’s earning assets at June 30, 2026, compared to 85% at December 31, 2025. The distribution by maturity of certificates of deposit with denominations of $250,000 and over at June 30, 2026 is presented in the table that follows: Table 12 - Distribution by Maturity of Certificates of Deposit of $250,000 and Over | (In thousands) | | | --- | --- | | 3 months or less | $2,797,544 | | Over 3 to 12 months | 1,059,243 | | Over 1 year to 3 years | 317,536 | | Over 3 years | 124,493 | | Total | $4,298,816 | The Corporation had $1.0 billion in brokered deposits at June 30, 2026, which financed approximately 1% of its total assets (December 31, 2025 - $1.0 billion and 1%, respectively). As of June 30, 2026, the banking subsidiaries had sufficient current and projected liquidity sources to meet their anticipated cash flow obligations, as well as special needs and off-balance sheet commitments, in the ordinary course of business and have sufficient liquidity resources to address a stress event. Although the banking subsidiaries have historically been able to replace maturing deposits and advances, no assurance can be given that they would be able to replace those funds in the future if the Corporation’s financial condition or general market conditions were to deteriorate. The Corporation’s financial flexibility would be severely constrained if the banking subsidiaries are unable to maintain access to funding or if adequate funding is not available to accommodate future financing needs at acceptable interest rates. The banking subsidiaries also are required to deposit cash or qualifying securities to meet margin requirements on repurchase agreements, deposit agreements and other collateralized borrowing facilities. To the extent that the value of securities previously pledged as collateral declines because of market changes, the Corporation will be required to deposit additional cash or securities to meet its margin or collateral requirements and would need to rely more heavily on alternative funding sources. In these scenarios, the Corporation’s financial flexibility and ability to grow revenues may not increase proportionately to cover costs and profitability would be adversely affected. The Corporation considers balances in excess of $250,000 to have a higher potential liquidity risk. Table 13 reflects the aggregate balance in deposit accounts in excess of $250,000, including collateralized public funds and deposits outside of the U.S. and its territories. Collateralized public funds, as presented in Table 13, represent public deposit balances from governmental entities in the U.S. and its territories, including Puerto Rico and the United States Virgin Islands, collateralized based on such jurisdictions’ applicable collateral requirements. Table 13 - Deposits | (Dollars in thousands) | June 30, 2026 / BPPR | June 30, 2026 / % of Total | June 30, 2026 / Popular U.S. | June 30, 2026 / % of Total | June 30, 2026 / Popular, Inc.(Consolidated) | June 30, 2026 / % of Total | | --- | --- | --- | --- | --- | --- | --- | | Deposits: | | | | | | | | Deposits balances under $250,000 [1] | $24,267,518 | 41% | $8,245,018 | 69% | $32,512,536 | 46% | | Transactional deposits balances over $250,000 | 8,048,585 | 14% | 2,570,947 | 22% | 10,619,532 | 15% | | Time deposits balances over $250,000 | 2,509,172 | 4% | 677,263 | 6% | 3,186,435 | 5% | | Uninsured foreign deposits | 506,412 | 1% | - | -% | 506,412 | 1% | | Collateralized public funds | 23,144,085 | 40% | 264,115 | 2% | 23,408,200 | 33% | | Intercompany deposits | 194,191 | -% | 173,438 | 1% | - | -% | | Total deposits | $58,669,963 | 100% | $11,930,781 | 100% | $70,233,115 | 100% | [1] Includes the first $250,000 in balances of transactional and time deposit accounts with balances in excess of $250,000. 112 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) | (Dollars in thousands) | December 31, 2025 / BPPR | December 31, 2025 / % of Total | December 31, 2025 / Popular U.S. | December 31, 2025 / % of Total | December 31, 2025 / Popular, Inc.(Consolidated) | December 31, 2025 / % of Total | | --- | --- | --- | --- | --- | --- | --- | | Deposits | | | | | | | | Deposits balances under $250,000 [1] | $23,873,328 | 44% | $8,283,967 | 69% | $32,157,295 | 49% | | Transactional deposits balances over $250,000 | 8,254,961 | 15% | 2,341,365 | 19% | 10,596,326 | 16% | | Time deposits balances over $250,000 | 2,182,301 | 4% | 794,183 | 7% | 2,976,484 | 4% | | Uninsured foreign deposits | 446,360 | 1% | - | -% | 446,360 | 1% | | Collateralized public funds | 19,748,934 | 36% | 264,694 | 2% | 20,013,628 | 30% | | Intercompany deposits | 235,251 | -% | 349,483 | 3% | - | -% | | Total deposits | $54,741,135 | 100% | $12,033,692 | 100% | $66,190,093 | 100% | [1] Includes the first $250,000 in balances of transactional and time deposit accounts with balances in excess of $250,000. Bank Holding Companies The principal sources of funding for the BHCs, which are Popular, Inc. (holding company only) and PNA, include cash on hand, investment securities, dividends received from banking and non-banking subsidiaries, asset sales, credit facilities available from affiliate banking subsidiaries and proceeds from potential securities offerings. Dividends from banking and non-banking subsidiaries are subject to various regulatory limits and authorization requirements imposed by banking regulators, including the FED and the NYDFS, that may limit the ability of those subsidiaries to act as a source of funding to the BHCs. The principal uses of these funds include the repayment of debt, interest payments to holders of senior debt and junior subordinated deferrable interest debentures (related to trust preferred securities), the payment of dividends to common stockholders, repurchases of the Corporation’s securities and capitalizing its subsidiaries. The outstanding balance of notes payable at the BHCs amounted to $595.7 million at June 30, 2026 and $595.0 million December 31, 2025. The contractual maturities of the BHCs notes payable at June 30, 2026 are presented in Table 14. Table 14 - Distribution of BHC's Notes Payable by Contractual Maturity | Year | (In thousands) | | --- | --- | | 2028 | $397,277 | | Later years | 198,413 | | Total | $595,690 | As of June 30, 2026, the BHCs had cash and money markets investments totaling $316 million and borrowing potential of $165 million from its secured facility with BPPR. The BHCs’ liquidity position continues to be adequate with sufficient cash on hand, investments and other sources of liquidity that are expected to be sufficient to meet all interest payments and dividend obligations for the foreseeable future. Additionally, the Corporation’s latest quarterly paid dividend was $0.75 per share or approximately $48.1 million per quarter. The BHCs have in the past borrowed in the corporate debt market primarily to finance their non-banking subsidiaries and refinance debt obligations. These sources of funding are more costly given that two out of three principal credit rating agencies rate the Corporation’s debt securities below “investment grade". The Corporation has a shelf registration statement filed and effective with the Securities and Exchange Commission, which permits the Corporation to issue an unspecified amount of debt or equity securities. Non-Banking Subsidiaries The principal sources of funding for the non-banking subsidiaries include internally generated cash flows from operations, loan sales, repurchase agreements, capital injections and borrowed funds from their direct parent companies or the holding companies. The principal uses of funds for the non-banking subsidiaries include repayment of maturing debt, operational expenses and payment of dividends to the BHCs. Dividends During the six months ended June 30, 2026, the Corporation declared cash dividends of $1.50 per common share outstanding ($96.8 million in the aggregate). The dividends for the Corporation’s Series A preferred stock amounted to $0.7 million for the six months ended on June 30, 2026. On July 23, 2026, the Corporation announced an increase in its 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 by the Corporation’s Board of Directors. 113 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) During the six months ended June 30, 2026, the BHCs received dividends and distributions amounting to $175 million from BPPR and $30 million from its other non-banking subsidiaries. Dividends from BPPR constitute Popular, Inc.’s primary source of liquidity. In addition, during the six months ended June 30, 2026, PIBI, a wholly owned subsidiary of Popular, Inc., had no dividends. In addition to regulatory limits previously discussed, the ability of a bank subsidiary to up-stream dividends to its BHC could be impacted by its financial performance and capital, including tangible and regulatory capital, thus potentially limiting the amount of cash up-streamed to the BHCs from the banking subsidiaries. This could, in turn, affect BHC’s ability to declare dividends on its outstanding common and preferred stock, repurchase its securities or meet its debt obligations, for example. At June 30, 2026, BPPR could declare a dividend of up to approximately $237 million without prior approval of the Federal Reserve Board due to its retained income, declared dividend activity and transfers to statutory reserves over the measurement period. In addition, pursuant to the FRB requirements, PB may not declare or pay a dividend without the prior approval of the Federal Reserve Board and the NYSDFS. Other Funding Sources and Capital In addition to cash reserves held at the FRB that totaled $4.6 billion at June 30, 2026, the debt securities portfolio provides an additional source of liquidity, which may be realized through either securities sales, collateralized borrowings or repurchase agreements. The Corporation’s debt securities portfolio consists primarily of liquid U.S. government debt securities, U.S. government sponsored agency debt securities, U.S. government sponsored agency mortgage-backed securities, and U.S. government sponsored agency collateralized mortgage obligations that can be used to raise funds in the repo markets. The availability of repurchase agreements would be subject to having sufficient unpledged collateral available at the time the transactions are consummated, in addition to overall liquidity and risk appetite of the various counterparties. Refer to Table 11 for details of the Corporation’s unpledged debt securities and available credit facilities with the FHLB and the discount window of the Federal Reserve Bank. A substantial portion of these debt securities could be used to raise financing in the U.S. money markets or from secured lending sources, subject to changes in their fair market value and customary adjustments (haircuts). Additional liquidity may be provided through loan maturities, prepayments and sales. The loan portfolio provides a source of collateral to secure the available credit facilities with the FHLB and the discount window of the Federal Reserve Bank. The loan portfolio can also be used to obtain funding in the capital markets. Mortgage loans and some types of consumer loans, have secondary markets which the Corporation could use. Off-Balance Sheet Arrangements and Other Commitments In the ordinary course of business, the Corporation engages in financial transactions that are not recorded on the balance sheet or may be recorded on the balance sheet in amounts that are different than the full contract or notional amount of the transaction. As a provider of financial services, the Corporation routinely enters into commitments with off-balance sheet risk to meet the financial needs of its customers. Refer to Note 16 to the Consolidated Financial Statements for information on the Corporation’s commitments to extend credit and other non-credit commitments. Other types of off-balance sheet arrangements that the Corporation enters in the ordinary course of business include derivatives, operating leases and provision of guarantees, indemnifications, and representation and warranties. Refer Note 15 to the Consolidated Financial Statements for a detailed discussion related to the Corporation’s guarantees, indemnifications obligations, and representation and warranties arrangements. The Corporation monitors its cash requirements, including its contractual obligations and debt commitments. Financial Information of Guarantor and Issuers of Registered Guaranteed Securities The principal sources of funding for Popular, Inc. Holding Company (“PIHC”) and Popular North America, Inc. (“PNA”) have included dividends received from their banking and non-banking subsidiaries subject to statutory provisions that limit dividends paid by the banking subsidiary without regulatory approval, asset sales and proceeds from the issuance of debt and equity. The Corporation (''PIHC”) is the parent holding company of Popular North America (“PNA") and operates financial services through its subsidiaries. PNA, a wholly owned subsidiary of Popular, Inc., manages entities such as Equity One, Inc., and PB, including PB’s subsidiaries: Popular Equipment Finance, LLC, Popular Insurance Agency, U.S.A., and E-LOAN, Inc. PNA has issued junior subordinated debentures guaranteed by PIHC (the “obligor group"), purchased by statutory trusts established by the Corporation using proceeds from trust preferred securities (“capital securities”) and common securities of the trusts. PIHC guarantees the junior subordinated debentures issued by PNA. If PIHC fails to make interest payments on the debentures held by the trust, the trust will not distribute payments on the capital securities. The guarantee ranks subordinate and junior in right of payment to all other liabilities of PIHC and equally with all other PIHC-issued guarantees, allowing direct legal action against PIHC without involving other entities. 114 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Funding for PIHC and PNA includes dividends from subsidiaries, asset sales, and proceeds from debt and equity issuance. Statutory provisions limit the dividends an insured depository institution can pay to its holding company without regulatory approval. The summarized financial information below shows the combined financial position of the obligor group as of June 30, 2026 and December 31, 2025, and the results of their operations for the six-month periods ended June 30, 2026 and June 30, 2025. Excluded are investments and equity in earnings from subsidiaries and affiliates outside the obligor group. Intercompany balances and transactions within the obligor group have been eliminated. Material amounts due from, due to, and transactions with subsidiaries and affiliates are shown separately. Related party transactions are also presented separately. Table 15 - Summarized Statement of Condition | (In thousands) | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | Assets | | | | Cash and money market investments | $316,104 | $524,882 | | Investment securities | 41,892 | 38,656 | | Accounts receivables from non-obligor subsidiaries | 23,337 | 12,798 | | Other loans (net of allowance for credit losses of $67 (2025 - $132)) | 23,528 | 24,169 | | Investment in equity method investees | 5,145 | 5,145 | | Other assets | 103,711 | 91,618 | | Total assets | $513,717 | $697,268 | | Liabilities and Stockholders' deficit | | | | Accounts payable to non-obligor subsidiaries | $9,284 | $7,669 | | Notes payable | 595,690 | 594,958 | | Other liabilities | 124,882 | 135,785 | | Stockholders' deficit | (216,139) | (41,144) | | Total liabilities and stockholders' deficit | $513,717 | $697,268 | Table 16 - Summarized Statement of Operations | (In thousands) | For the period ended / June 30, 2026 | For the period ended / June 30, 2025 | | --- | --- | --- | | Income: | | | | Dividends from non-obligor subsidiaries | $205,000 | $215,100 | | Interest income from non-obligor subsidiaries and affiliates | 1,554 | 2,248 | | Earnings from investments in equity method investees | - | 1 | | Other operating income | 3,073 | 6,155 | | Total income | $209,627 | $223,504 | | Expenses: | | | | Services provided by non-obligor subsidiaries and affiliates (net of reimbursement by subsidiaries for services provided by parent of $133,928 (2025 - $127,054)) | $9,941 | $7,739 | | Other expenses | 11,598 | 14,359 | | Income tax (benefit) expense | (613) | 5,952 | | Total expenses | $20,926 | $28,050 | | Net income | $188,701 | $195,454 | In addition to the dividend income reflected in the Statement of Operations table above, during the six months ended June 30, 2025, the obligor group recorded a $23.0 million of capital distributions from non-obligor subsidiary which was recorded as a reduction to the investment. Risk to Liquidity The Corporation’s liquidity may come under pressure if it experiences significant unexpected cash outflows due to deposit withdrawals, which could arise from various factors like economic conditions, loss of depositor confidence, competition, exogenous events, regulatory requirements or changes, a downgrade in credit rating, or other events causing counterparties to avoid exposure. Investors should refer to Liquidity Risks section of “Part I, Item 1 A" of 2025 Form 10-K for an additional discussion of liquidity risks to which the Corporation is subject. Credit Risk Geographic and Government Risk The Corporation is exposed to geographic and government risk. The Corporation’s assets and revenue composition by geographical area and by business segment reporting are presented in Note 26 to the Consolidated Financial Statements. Readers should refer to Economic and Market Risk section and Business Risk Section of “Part I, Item 1A” of the 2025 Form 10-K for an additional discussion on how the 115 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Corporation is impacted by global and local economic and market conditions, including weakness in the economy, particularly in Puerto Rico, where a significant portion of our business is concentrated. This section also addresses how our credit risk and credit losses can increase to the extent our loans are concentrated on borrowers engaged in the same or similar activities or in borrowers who as a group may be uniquely or disproportionately affected by certain economic or market conditions. Commonwealth of Puerto Rico A significant portion of our financial activities and credit exposure is concentrated in the Commonwealth of Puerto Rico (“Puerto Rico") which has faced severe economic and fiscal challenges in the past and may face additional challenges in the future. Economic Performance Based on the latest estimates of the Puerto Rico Planning Board, real GNP in Puerto Rico is projected to have grown by 0.4% in fiscal year 2026 (July 2025-June 2026) and by 0.3% in fiscal year 2027 (July 2026-June 2027). Meanwhile, the Puerto Rico Economic Activity Index reflected a 0.7% year-over-year decrease in May 2026. While this index is not a direct measure of real GNP, it serves as an indicator of ongoing economic activity. In 2021 and 2022, inflation rose sharply in the U.S. and Puerto Rico due to post-pandemic demand and supply chain disruptions. Inflation began to decrease by mid-2022 as the Federal Reserve raised interest rates, largely stabilizing by September 2024, leading to a series of rate reductions by the Federal Reserve for the first time in four years. As of June 2026, the U.S. Consumer Price Index reflected a 3.5% year-over-year increase, which, while below peak 2022 levels, remains above the Federal Reserve’s 2% target. The annual rate of inflation has increased since February 2026 (2.4%), primarily driven by higher energy and gasoline prices resulting from the recent geopolitical conflict involving Iran. In Puerto Rico, the Consumer Price Index reflected a year-over-year increase of 4.6% in May 2026, up from 4% in April 2026. The full the extent to which the conflict in Iran may impact the global and Puerto Rico economies has yet to be determined. Fiscal Challenges of Puerto Rico and its Municipalities As Puerto Rico’s economy contracted in the 2000s, public debt increased rapidly due to borrowing to cover deficits to pay debt service, pension benefits, and other expenditures. By 2016, the government had over $120 billion in combined debt and unfunded pension liabilities, lost access to capital markets, and faced a fiscal crisis. In response, the U.S. Congress enacted PROMESA in June 2016. PROMESA established an Oversight Board with significant control over Puerto Rico’s fiscal and economic affairs, including those of its public corporations, instrumentalities and municipalities (collectively, “PR Government Entities”). In August 2025, President Donald J. Trump dismissed six of the seven members of the Oversight Board, reportedly due to inefficient leadership and excessive spending. Three of the dismissed members subsequently filed suit in federal court challenging the legality of their dismissal. On October 3, 2025, the court issued a preliminary injunction that effectively reinstated such members and barred the seating of replacement members while the case proceeds. Such ruling was appealed to the United States Court of Appeals for the First Circuit on December 3, 2025, and the appeal remains pending. It is still too early to determine what impact these developments may have on Puerto Rico’s fiscal and economic affairs. Under PROMESA, the Oversight Board will remain in place until market access is restored and balanced budgets are achieved for at least four consecutive years. PROMESA also established two mechanisms for the restructuring of the obligations of PR Government Entities: (a) Title III, an in-court process akin to that of the U.S. Bankruptcy Code and which permits adjustment of a broad range of obligations, and (b) Title VI, a largely out-of-court process through which a supermajority of creditors can accept modifications to debt and bind holdouts. Since 2017, Puerto Rico and several of its instrumentalities have availed themselves of these mechanisms. The Puerto Rico government exited Title III in March 2022, and several instrumentalities, such as the Government Development Bank and the Puerto Rico Highways and Transportation Authority have also completed debt restructurings under Titles III or VI of PROMESA. However, the Puerto Rico Electric Power Authority is still undergoing its debt restructuring. Puerto Rico's economic difficulties have also impacted its municipalities. Historically, the central government provided significant municipal subsidies. However, these have decreased pursuant to fiscal measures required by the Oversight Board. This decline has been partly offset by federal disaster and COVID-relief funding received by municipalities in recent years. The latest Puerto Rico fiscal plan proposes a restructured grant system to enhance municipal services and encourage accountability through performance metrics. Municipalities are subject to PROMESA, and the Oversight Board has required certain municipalities to submit fiscal plans and annual budgets for review and approval. Municipalities are also required to seek Oversight Board approval to issue, guarantee or modify their debts and to enter into significant contracts. To date no municipality has availed itself of the debt restructuring mechanisms available to them under PROMESA. 116 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Exposure of the Corporation The credit quality of BPPR’s loan portfolio is closely tied to the economic conditions in Puerto Rico. Deterioration in the Puerto Rico economy could potentially increase delinquencies and charge-offs, thereby impacting the Corporation’s financial health. The Corporation has direct exposure to P.R. Government Entities, which are mainly concentrated in obligations from various Puerto Rico municipalities. Additionally, the Corporation holds loans and securities insured by P.R. Government Entities, such as the Housing Finance Authority, whose ability to honor guarantees depends on its financial condition. BPPR’s commercial, mortgage, and consumer loan portfolios are also exposed to risks from private borrowers who are service providers or have other relationships with the Puerto Rico government and government employees who could be negatively affected by Puerto Rico’s fiscal challenges. For further discussion of the Corporation’s direct and indirect exposure to the Puerto Rico government and its instrumentalities and municipalities, please refer to Note 16 – Commitments and Contingencies to the Consolidated Financial Statements. The Corporation also maintains significant deposits from P.R. Government Entities, with future balances subject to various uncertainties. Further information on Puerto Rico Government deposits is included in Note 11 – Deposits to the Consolidated Financial Statements. United States Virgin Islands The Corporation has operations in the United States Virgin Islands (the “USVI”) and has credit exposure to USVI government entities. For further discussion of the Corporation’s direct and indirect exposure to USVI government entities, please refer to Note 16. Non-Performing Assets ("NPAs") NPAs include primarily past-due loans that are no longer accruing interest, renegotiated loans, and real estate property acquired through foreclosure. A summary, including certain credit quality metrics, is presented in Table 17. During the second quarter of 2026, the Corporation’s overall credit quality metrics remained stable. The quarter included the resolution of a significant $155.0 million non-performing commercial relationship, which resulted in a $71.3 million charge-off and the transfer of the remaining $83.7 million carrying amount to loans held-for-sale ("LHFS"). 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. Total NPAs of $546.7 million as of June 30, 2026 increased by $5.9 million when compared with December 31, 2025. Total NPLs of $413.4 million decreased by $84.9 million from December 31, 2025. BPPR’s NPLs decreased by $90.9 million, primarily driven by reductions in commercial and consumer NPLs of $64.5 million and $21.2 million, respectively. The decline in the commercial NPLs reflects the resolution of a $155.0 million relationship, described above. 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. Popular U.S. NPLs increased by $6.0 million, mostly driven by higher commercial NPLs by $9.2 million, offset in part by a decrease of $3.2 million in the mortgage NPLs. On June 30, 2026, the ratio of NPLs to total loans held-in-portfolio was 1.04%, compared to 1.27% on December 31, 2025. Other real estate owned loans (“OREOs”) totaled $49.6 million, an increase of $7.1 million from December 31, 2025. The Corporation’s commercial loan portfolio secured by real estate (“CRE’’) amounted to $11.3 billion on June 30, 2026, with $3.3 billion secured by owner-occupied properties (December 31, 2025 - $11.2 billion and $3.2 billion, respectively). CRE NPLs amounted to $66.1 million on June 30, 2026, compared with $76.0 million on December 31, 2025. The CRE NPL ratios for the BPPR and Popular U.S. segments were 0.86% and 0.38%, respectively, on June 30, 2026, compared with 1.23% and 0.25%, respectively, on December 31, 2025. The non-owner occupied CRE portfolio was $5.6 billion at June 30, 2026, split between $3.3 billion in BPPR and $2.3 billion in Popular U.S. This portfolio is diversified across sectors: retail (32%), hotels (19%), and office space (12%) which together represent two-thirds of total non-owner occupied CRE exposure. Specifically, office space leasing accounts for just 1.7% ($673.6 million) of the total loan portfolio, mainly comprising mid-rise properties with an average loan size of $2.4 million, and is well diversified by tenant type. Within CRE, the commercial multi-family portfolio is $2.4 billion (approximately 6% of total loans), concentrated in New York Metro ($1.3 billion), South Florida ($651.9 million) and Puerto Rico ($242.0 million) regions. In the New York Metro, there is no exposure to rent- controlled buildings and rent-stabilized units make up less than 40% of total units, with most originated after 2019. In addition to the NPLs included in Table 18, on June 30, 2026, there were $407.8 million of performing loans, mostly commercial loans, which in management’s opinion, are currently subject to potential future classification as non-performing (December 31, 2025 - $499.6 million). 117 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Table 17 - Non-Performing Assets | (Dollars in thousands) | June 30, 2026 / BPPR | June 30, 2026 / Popular U.S. | June 30, 2026 / Popular,Inc. | June 30, 2026 / As a % ofloans HIP bycategory | December 31, 2025 / BPPR | December 31, 2025 / Popular U.S. | December 31, 2025 / Popular,Inc. | December 31, 2025 / As a % ofloans HIP bycategory | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Commercial | | | | | | | | | | Commercial multi-family | $- | $8,931 | $8,931 | 0.4% | $112 | $8,636 | $8,748 | 0.4% | | Commercial real estate non-owner occupied | 26,016 | 6,950 | 32,966 | 0.6 | 35,692 | 7,020 | 42,712 | 0.8 | | Commercial real estate owner occupied | 15,374 | 8,865 | 24,239 | 0.7 | 24,567 | - | 24,567 | 0.8 | | Commercial and industrial | 138,389 | 6,563 | 144,952 | 1.7 | 183,914 | 6,498 | 190,412 | 2.2 | | Total Commercial | 179,779 | 31,309 | 211,088 | 1.1 | 244,285 | 22,154 | 266,439 | 1.3 | | Leasing | 7,182 | - | 7,182 | 0.4 | 9,179 | - | 9,179 | 0.5 | | Mortgage | 129,240 | 10,233 | 139,473 | 1.6 | 132,373 | 13,422 | 145,795 | 1.7 | | Consumer | | | | | | | | | | Home equity lines of credit | - | 3,320 | 3,320 | 3.9 | - | 2,796 | 2,796 | 3.6 | | Personal | 16,605 | 751 | 17,356 | 0.9 | 18,863 | 1,233 | 20,096 | 1.1 | | Auto | 31,474 | - | 31,474 | 0.8 | 52,200 | - | 52,200 | 1.4 | | Other | 3,544 | - | 3,544 | 2.0 | 1,809 | 29 | 1,838 | 1.0 | | Total Consumer | 51,623 | 4,071 | 55,694 | 0.8 | 72,872 | 4,058 | 76,930 | 1.1 | | Total non-performing loans held-in- portfolio | 367,824 | 45,613 | 413,437 | 1.0 | 458,709 | 39,634 | 498,343 | 1.3 | | Non-performing loans held-for-sale | 83,700 | - | 83,700 | | - | - | - | | | Other real estate owned (“OREO”) | 49,093 | 464 | 49,557 | | 41,929 | 504 | 42,433 | | | Total non-performing assets | $500,617 | $46,077 | $546,694 | | $500,638 | $40,138 | $540,776 | | | Accruing loans past due 90 days or more[1] | $219,748 | $175 | $219,923 | | $228,772 | $188 | $228,960 | | | Ratios: | | | | | | | | | | Non-performing assets to total assets | 0.80% | 0.28% | 0.69% | | 0.85% | 0.25% | 0.72% | | | Non-performing loans held-in-portfolio to loans held-in-portfolio | 1.31 | 0.39 | 1.04 | | 1.66 | 0.34 | 1.27 | | | Allowance for credit losses to loans held-in-portfolio | 2.47 | 0.79 | 1.97 | | 2.60 | 0.77 | 2.05 | | | Allowance for credit losses to non-performing loans, excluding held-for-sale | 188.21 | 202.89 | 189.83 | | 156.51 | 227.42 | 162.15 | | [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 30, 2026 (December 31, 2025 - $47 million). Furthermore, the Corporation has $25 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation’s policy to exclude these balances from non-performing assets (December 31, 2025 - $27 million). For the quarter ended June 30, 2026, total inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $145.3 million, when compared to the inflows for the same period in 2025. Inflows of NPLs held-in-portfolio at the BPPR segment increased by $135.0 million, compared to the same period in 2025, mainly driven by higher commercial NPL inflows by $134.3 million. Inflows of NPLs held-in-portfolio at the Popular U.S. segment increased by $10.8 million from the same period in 2025, driven by higher commercial NPL inflows of the same amount. 118 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Table 18 to Table 23 present the Corporation’s inflows to NPLs for the quarters and six months ended June 30, 2026 and 2025. Table 18 - Activity in Non-Performing Loans Held-in-Portfolio (Excluding Consumer Loans) | (Dollars in thousands) | For the quarter ended June 30, 2026 / BPPR | For the quarter ended June 30, 2026 / Popular U.S. | For the quarter ended June 30, 2026 / Popular, Inc. | For the six months ended June 30, 2026 / BPPR | For the six months ended June 30, 2026 / Popular U.S. | For the six months ended June 30, 2026 / Popular, Inc. | | --- | --- | --- | --- | --- | --- | --- | | Beginning balance | $356,009 | $34,173 | $390,182 | $376,658 | $35,576 | $412,234 | | Plus: | | | | | | | | New non-performing loans | 166,759 | 19,633 | 186,392 | 210,220 | 25,366 | 235,586 | | Advances on existing non-performing loans | - | 66 | 66 | | 247 | 247 | | Less: | | | | | | | | Non-performing loans transferred to OREO | (2,286) | - | (2,286) | (5,397) | - | (5,397) | | Non-performing loans charged-off | (72,916) | (1,580) | (74,496) | (85,117) | (1,604) | (86,721) | | Loans returned to accrual status / loan collections | (54,847) | (10,750) | (65,597) | (103,645) | (18,043) | (121,688) | | Loans transferred to held-for-sale | (83,700) | - | (83,700) | (83,700) | - | (83,700) | | Ending balance NPLs | $309,019 | $41,542 | $350,561 | $309,019 | $41,542 | $350,561 | Table 19 - Activity in Non-Performing Loans Held-in-Portfolio (Excluding Consumer Loans) | (Dollars in thousands) | For the quarter ended June 30, 2025 / BPPR | For the quarter ended June 30, 2025 / Popular U.S. | For the quarter ended June 30, 2025 / Popular, Inc. | For the six months ended June 30, 2025 / BPPR | For the six months ended June 30, 2025 / Popular U.S. | For the six months ended June 30, 2025 / Popular, Inc. | | --- | --- | --- | --- | --- | --- | --- | | Beginning balance | $191,103 | $46,594 | $237,697 | $209,543 | $53,544 | $263,087 | | Plus: | | | | | | | | New non-performing loans | 32,205 | 8,909 | 41,114 | 69,228 | 17,067 | 86,295 | | Advances on existing non-performing loans | - | 20 | 20 | - | 38 | 38 | | Less: | | | | | | | | Non-performing loans transferred to OREO | (2,385) | (433) | (2,818) | (4,940) | (433) | (5,373) | | Non-performing loans charged-off | (790) | (583) | (1,373) | (1,717) | (1,713) | (3,430) | | Loans returned to accrual status / loan collections | (30,503) | (4,744) | (35,247) | (82,484) | (18,740) | (101,224) | | Ending balance NPLs | $189,630 | $49,763 | $239,393 | $189,630 | $49,763 | $239,393 | Table 20 - Activity in Non-Performing Commercial Loans Held-in-Portfolio | (Dollars in thousands) | For the quarter ended June 30, 2026 / BPPR | For the quarter ended June 30, 2026 / Popular U.S. | For the quarter ended June 30, 2026 / Popular, Inc. | For the six months ended June 30, 2026 / BPPR | For the six months ended June 30, 2026 / Popular U.S. | For the six months ended June 30, 2026 / Popular, Inc. | | --- | --- | --- | --- | --- | --- | --- | | Beginning balance | $226,642 | $24,473 | $251,115 | $244,285 | $22,154 | $266,439 | | Plus: | | | | | | | | New non-performing loans | 136,095 | 16,382 | 152,477 | 141,099 | 19,587 | 160,686 | | Advances on existing non-performing loans | - | 62 | 62 | - | 232 | 232 | | Less: | | | | | | | | Non-performing loans transferred to OREO | (301) | - | (301) | (951) | - | (951) | | Non-performing loans charged-off | (73,035) | (1,571) | (74,606) | (84,696) | (1,574) | (86,270) | | Loans returned to accrual status / loan collections | (25,922) | (8,037) | (33,959) | (36,258) | (9,090) | (45,348) | | Loans transferred to held-for-sale | (83,700) | - | (83,700) | (83,700) | - | (83,700) | | Ending balance NPLs | $179,779 | $31,309 | $211,088 | $179,779 | $31,309 | $211,088 | Table 21 - Activity in Non-Performing Commercial Loans Held-in-Portfolio | (Dollars in thousands) | For the quarter ended June 30, 2025 / BPPR | For the quarter ended June 30, 2025 / Popular U.S. | For the quarter ended June 30, 2025 / Popular, Inc. | For the six months ended June 30, 2025 / BPPR | For the six months ended June 30, 2025 / Popular U.S. | For the six months ended June 30, 2025 / Popular, Inc. | | --- | --- | --- | --- | --- | --- | --- | | Beginning balance | $42,597 | $17,507 | $60,104 | $51,101 | $23,654 | $74,755 | | Plus: | | | | | | | | New non-performing loans | 1,768 | 5,632 | 7,400 | 7,549 | 11,045 | 18,594 | | Advances on existing non-performing loans | - | 20 | 20 | - | 37 | 37 | | Less: | | | | | | | | Non-performing loans transferred to OREO | (140) | - | (140) | (260) | - | (260) | | Non-performing loans charged-off | (403) | (583) | (986) | (1,142) | (1,713) | (2,855) | | Loans returned to accrual status / loan collections | (1,656) | (865) | (2,521) | (15,082) | (11,312) | (26,394) | | Ending balance NPLs | $42,166 | $21,711 | $63,877 | $42,166 | $21,711 | $63,877 | 119 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Table 22 - Activity in Non-Performing Mortgage Loans Held-in-Portfolio | (Dollars in thousands) | For the quarter ended June 30, 2026 / BPPR | For the quarter ended June 30, 2026 / Popular U.S. | For the quarter ended June 30, 2026 / Popular, Inc. | For the six months ended June 30, 2026 / BPPR | For the six months ended June 30, 2026 / Popular U.S. | For the six months ended June 30, 2026 / Popular, Inc. | | --- | --- | --- | --- | --- | --- | --- | | Beginning balance | $129,367 | $9,700 | $139,067 | $132,373 | $13,422 | $145,795 | | Plus: | | | | | | | | New non-performing loans | 30,664 | 3,251 | 33,915 | 69,121 | 5,779 | 74,900 | | Advances on existing non-performing loans | - | 4 | 4 | - | 15 | 15 | | Less: | | | | | | | | Non-performing loans transferred to OREO | (1,985) | - | (1,985) | (4,446) | - | (4,446) | | Non-performing loans charged-off | 119 | (9) | 110 | (421) | (30) | (451) | | Loans returned to accrual status / loan collections | (28,925) | (2,713) | (31,638) | (67,387) | (8,953) | (76,340) | | Ending balance NPLs | $129,240 | $10,233 | $139,473 | $129,240 | $10,233 | $139,473 | Table 23 - Activity in Non-Performing Mortgage Loans Held-in-Portfolio | (Dollars in thousands) | For the quarter ended June 30, 2025 / BPPR | For the quarter ended June 30, 2025 / Popular U.S. | For the quarter ended June 30, 2025 / Popular, Inc. | For the six months ended June 30, 2025 / BPPR | For the six months ended June 30, 2025 / Popular U.S. | For the six months ended June 30, 2025 / Popular, Inc. | | --- | --- | --- | --- | --- | --- | --- | | Beginning balance | $148,506 | $29,087 | $177,593 | $158,442 | $29,890 | $188,332 | | Plus: | | | | | | | | New non-performing loans | 30,437 | 3,277 | 33,714 | 61,679 | 6,022 | 67,701 | | Advances on existing non-performing loans | - | - | - | - | 1 | 1 | | Less: | | | | | | | | Non-performing loans transferred to OREO | (2,245) | (433) | (2,678) | (4,680) | (433) | (5,113) | | Non-performing loans charged-off | (387) | - | (387) | (575) | - | (575) | | Loans returned to accrual status / loan collections | (28,847) | (3,879) | (32,726) | (67,402) | (7,428) | (74,830) | | Ending balance NPLs | $147,464 | $28,052 | $175,516 | $147,464 | $28,052 | $175,516 | 120 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Loan Delinquencies Another key measure used to evaluate and monitor the Corporation’s asset quality is loan delinquencies. Loans delinquent 30 days or more, as a percentage of their related portfolio category on June 30, 2026 and December 31, 2025, are presented below. Table 24 - Loan Delinquencies | (Dollars in thousands) | June 30, 2026 / Loans delinquent30 days or more | June 30, 2026 / Total loans | June 30, 2026 / Total delinquenciesas a percentageof total loans | December 31, 2025 / Loans delinquent30 days or more | December 31, 2025 / Total loans | December 31, 2025 / Total delinquenciesas a percentageof total loans | | --- | --- | --- | --- | --- | --- | --- | | Commercial | | | | | | | | Commercial multi-family | $24,820 | $2,399,424 | 1.03% | $24,982 | $2,455,790 | 1.02% | | Commercial real estate non-owner occupied | 40,867 | 5,620,875 | 0.73 | 47,068 | 5,543,284 | 0.85 | | Commercial real estate owner occupied | 28,724 | 3,256,702 | 0.88 | 28,008 | 3,153,080 | 0.89 | | Commercial and industrial | 162,561 | 8,774,084 | 1.85 | 215,068 | 8,607,412 | 2.50 | | Total Commercial | 256,972 | 20,051,085 | 1.28 | 315,126 | 19,759,566 | 1.59 | | Construction | 12,491 | 1,732,075 | 0.72 | 17,283 | 1,674,899 | 1.03 | | Mortgage | | | | | | | | Mortgage insured [1] | 403,239 | 3,406,774 | 11.84 | 429,796 | 3,166,679 | 13.57 | | Mortgage uninsured | 267,706 | 5,373,560 | 4.98 | 329,504 | 5,482,761 | 6.01 | | Total Mortgage | 670,945 | 8,780,334 | 7.64 | 759,300 | 8,649,440 | 8.78 | | Leasing | 35,089 | 1,968,035 | 1.78 | 37,567 | 2,001,365 | 1.88 | | Consumer | | | | | | | | Credit cards | 43,913 | 1,237,997 | 3.55 | 51,846 | 1,256,717 | 4.13 | | Home equity lines of credit | 4,351 | 85,357 | 5.10 | 4,160 | 78,692 | 5.29 | | Personal | 47,098 | 1,952,725 | 2.41 | 53,632 | 1,906,228 | 2.81 | | Auto | 150,791 | 3,766,648 | 4.00 | 186,798 | 3,819,812 | 4.89 | | Other | 5,433 | 175,606 | 3.09 | 5,929 | 180,799 | 3.28 | | Total Consumer | 251,586 | 7,218,333 | 3.49 | 302,365 | 7,242,248 | 4.18 | | Loans held-for-sale | 83,700 | 88,579 | 94.49 | - | 9,998 | — | | Total | $1,310,783 | $39,838,441 | 3.29% | $1,431,641 | $39,337,516 | 3.64% | [1] Loans that carry certain guarantees from FHA or the VA. Refer to Note 7 to the Consolidated Financial Statements for additional information of guaranteed loans. Allowance for Credit Losses Loans Held-in-Portfolio The ACL represents management’s estimate of expected credit losses through the remaining contractual life of the different loan segments, impacted by expected prepayments. The ACL is maintained at a sufficient level to provide for estimated credit losses on collateral dependent loans as well as loans modified for borrowers with financial difficulties separately from the remainder of the loan portfolio. The Corporation’s management evaluates the adequacy of the ACL on a quarterly basis. In this evaluation, management considers current conditions, macroeconomic economic expectations through a reasonable and supportable period, historical loss experience, portfolio composition by loan type and risk characteristics, results of periodic credit reviews of individual loans, and regulatory requirements, amongst other factors. The Corporation must rely on estimates and exercise judgment regarding matters where the ultimate outcome is unknown, such as economic developments affecting specific customers, industries, or markets. Other factors that can affect management’s estimates are recalibration of statistical models used to calculate lifetime expected losses, changes in underwriting standards, financial accounting standards and loan impairment measurements, among others. Changes in the financial condition of individual borrowers, in economic conditions, and in the condition of the various markets in which collateral may be sold, may also affect the required level of the allowance for credit losses. Consequently, the business financial condition, liquidity, capital, and results of operations could also be affected. On June 30, 2026, the ACL amounted to $784.8 million, a decrease of $23.2 million from December 31, 2025. The decline primarily reflects improvement in consumer credit performance and favorable portfolio and macroeconomic developments. The ACL for BPPR decreased by $25.6 million as of June 30, 2026, compared to December 31, 2025. The decline was primarily due to a $24.7 million reduction in reserves for consumer loans, mainly driven by improved credit quality in the auto and credit card portfolios. The reserve for commercial loans remained flat from December 31, 2025, reflecting the transfer to LHFS of the $155.0 million NPL and related $71.3 million charge-off, partially offset by higher reserves associated with NPL inflows during the quarter and loan growth. In PB, the ACL as of June 30, 2026 remained stable at $92.5 million. 121 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) The Corporation’s ratio of the allowance for credit losses to loans held-in-portfolio was 1.97% on June 30, 2026, compared to 2.05% on December 31, 2025. The ratio of the ACL to NPLs held-in-portfolio stood at 189.8%, compared to 162.1% on December 31, 2025. Refer to Note 8 to the Consolidated Financial Statements, for additional information on the Corporation’s methodology to estimate its ACL, including probability weights assigned. Tables 25 and 26 detail the allowance for credit losses by loan categories and the percentage it represents of total loans held-in- portfolio and NPLs. The breakdown is made for analytical purposes, and it is not necessarily indicative of the categories in which future loan losses may occur. Table 25 - Allowance for Credit Losses - Loan Portfolios _June 30, 2026_ | (Dollars in thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held- in-portfolio | Total non-performing loansheld-in-portfolio | ACL to non-performing loansheld-in-portfolio | | --- | --- | --- | --- | --- | --- | | Commercial | | | | | | | Commercial multi-family | $18,919 | $2,399,424 | 0.79% | $8,931 | 211.84% | | Commercial real estate non-owner occupied | 55,810 | 5,620,875 | 0.99% | 32,966 | 169.30% | | Commercial real estate owner occupied | 52,639 | 3,256,702 | 1.62% | 24,239 | 217.17% | | Commercial and industrial | 185,396 | 8,774,084 | 2.11% | 144,952 | 127.90% | | Total Commercial | $312,764 | $20,051,085 | 1.56% | $211,088 | 148.17% | | Construction | 14,360 | 1,732,075 | 0.83% | - | - | | Mortgage | 79,522 | 8,780,334 | 0.91% | 139,473 | 57.02% | | Leasing | 17,627 | 1,968,035 | 0.90% | 7,182 | 245.43% | | Consumer | | | | | | | Credit cards | 84,817 | 1,237,997 | 6.85% | - | - | | Home equity lines of credit | 1,423 | 85,357 | 1.67% | 3,320 | 42.86% | | Personal | 102,422 | 1,952,725 | 5.25% | 17,356 | 590.12% | | Auto | 164,543 | 3,766,648 | 4.37% | 31,474 | 522.79% | | Other | 7,354 | 175,606 | 4.19% | 3,544 | 207.51% | | Total Consumer | $360,559 | $7,218,333 | 5.00% | $55,694 | 647.39% | | Total | $784,832 | $39,749,862 | 1.97% | $413,437 | 189.83% | N.M. - Not meaningful. 122 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Table 26 - Allowance for Credit Losses - Loan Portfolios _December 31, 2025_ | (Dollars in thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held- in-portfolio | Total non-performing loansheld-in-portfolio | ACL to non-performing loansheld-in-portfolio | | --- | --- | --- | --- | --- | --- | | Commercial | | | | | | | Commercial multi-family | $19,345 | $2,455,790 | 0.79% | $8,748 | 221.14% | | Commercial real estate non-owner occupied | 58,717 | 5,543,284 | 1.06% | 42,712 | 137.47% | | Commercial real estate owner occupied | 48,451 | 3,153,080 | 1.54% | 24,567 | 197.22% | | Commercial and industrial | 180,934 | 8,607,412 | 2.10% | 190,412 | 95.02% | | Total Commercial | $307,447 | $19,759,566 | 1.56% | $266,439 | 115.39% | | Construction | 13,826 | 1,674,899 | 0.83% | - | - | | Mortgage | 80,554 | 8,649,440 | 0.93% | 145,795 | 55.25% | | Leasing | 18,620 | 2,001,365 | 0.93% | 9,179 | 202.85% | | Consumer | | | | | | | Credit cards | 91,124 | 1,256,717 | 7.25% | - | - | | Home equity lines of credit | 1,335 | 78,692 | 1.70% | 2,796 | 47.75% | | Personal | 106,612 | 1,906,228 | 5.59% | 20,096 | 530.51% | | Auto | 180,364 | 3,819,812 | 4.72% | 52,200 | 345.52% | | Other | 8,174 | 180,799 | 4.52% | 1,838 | 444.72% | | Total Consumer | $387,609 | $7,242,248 | 5.35% | $76,930 | 503.85% | | Total | $808,056 | $39,327,518 | 2.05% | $498,343 | 162.15% | Annualized net charge-offs (recoveries) The following table presents annualized net charge-offs (recoveries) to average loans held-in-portfolio (“HIP") by loan category for the quarters and six months ended June 30, 2026 and 2025. Table 27 - Annualized Net Charge-offs (Recoveries) to Average Loans Held-in-Portfolio | Line item | Quarters ended / June 30, 2026 / BPPR | Quarters ended / June 30, 2026 / Popular U.S. | Quarters ended / June 30, 2026 / Popular Inc. | Quarters ended / June 30, 2025 / BPPR | Quarters ended / June 30, 2025 / Popular U.S. | Quarters ended / June 30, 2025 / Popular Inc. | | --- | --- | --- | --- | --- | --- | --- | | Commercial | 2.44% | 0.06% | 1.37% | —% | 0.02% | 0.01% | | Mortgage | (0.26) | (0.01) | (0.23) | (0.14) | (0.01) | (0.12) | | Leasing | 0.37 | — | 0.37 | 0.56 | — | 0.56 | | Consumer | 2.14 | 3.04 | 2.15 | 2.29 | 4.00 | 2.33 | | Total annualized net charge-offs (recoveries) to average loans held-in- portfolio | 1.46% | 0.08% | 1.05% | 0.61% | 0.07% | 0.45% | | Line item | Six months ended / June 30, 2026 / BPPR | Six months ended / June 30, 2026 / Popular U.S. | Six months ended / June 30, 2026 / Popular Inc. | Six months ended / June 30, 2025 / BPPR | Six months ended / June 30, 2025 / Popular U.S. | Six months ended / June 30, 2025 / Popular Inc. | | --- | --- | --- | --- | --- | --- | --- | | Commercial | 1.44% | 0.03% | 0.81% | (0.05)% | 0.02% | (0.02)% | | Construction | (0.01) | — | — | — | — | — | | Mortgage | (0.20) | (0.01) | (0.17) | (0.14) | (0.03) | (0.12) | | Leasing | 0.45 | — | 0.45 | 0.62 | — | 0.62 | | Consumer | 2.41 | 3.06 | 2.42 | 2.55 | 3.95 | 2.59 | | Total annualized net charge-offs (recoveries) to average loans held-in-portfolio | 1.16% | 0.06% | 0.83% | 0.67% | 0.07% | 0.49% | NCOs for the quarter ended June 30, 2026 amounted to $104.1 million, increasing by $61.9 million when compared to the same period in 2025. The BPPR segment increased by $61.5 million, mainly driven by a single charge-off of a commercial and industrial loan of $71.3 million that was reclassified to LHFS, partially offset by lower charge-offs in mortgage and consumer loans. The PB segment NCOs increased by $0.3 million, mainly driven by higher commercial multi-family NCOs by $0.7 million, offset by lower consumer NCOs by $0.6 million. NCOs for the six months ended June 30, 2026 amounted to $164.1 million, increasing by $72.8 million when compared to the same period in 2025. The BPPR segment increased by $73.4 million, mainly driven by the same single $71.3 million commercial and industrial loan charge-off mentioned above. The PB segment NCOs increased by $0.6 million, mainly driven by higher consumer NCOs by $1.2 million, offset by lower commercial multi-family NCOs by $0.8 million. 123 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Loan Modifications For the quarter ended June 30, 2026, modified loans to borrowers with financial difficulty amounted to $150.2 million, of which $101.0 million were in accruing status. The BPPR segment’s modifications to borrowers with financial difficulty amounted to $147.1 million, mainly comprised of commercial and mortgage loans of $125.1 million and $15.9 million, respectively. A total of $10.9 million of the mortgage modifications were related to government guaranteed loans. The Popular U.S. segment’s modifications to borrowers with financial difficulty amounted to $3.1 million, mostly comprised of commercial and mortgage loans of $2.1 million and $1.0 million, respectively. Refer to Note 8 to the Consolidated Financial Statements for additional information on modifications made to borrowers experiencing financial difficulties. ADOPTION OF NEW ACCOUNTING STANDARDS AND ISSUED BUT NOT YET EFFECTIVE ACCOUNTING STANDARDS Refer to Note 3, “New Accounting Pronouncements" to the Consolidated Financial Statements. 124 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) ## Item 3. Quantitative and Qualitative Disclosures About Market Risk Quantitative and qualitative disclosures for the current period can be found in the Market Risk section of this report, which includes changes in market risk exposures from disclosures presented in the 2025 Form 10-K. ## Item 4. Controls and Procedures Disclosure Controls and Procedures The Corporation’s management, with the participation of the Corporation’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Corporation’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”) as of the end of the period covered by this report. Based on such evaluation, the Corporation’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Corporation’s disclosure controls and procedures are effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Corporation in the reports that it files or submits under the Exchange Act and such information is accumulated and communicated to management, as appropriate, to allow timely decisions regarding required disclosures. Internal Control Over Financial Reporting There have been no changes in the Corporation’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting. 125 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) Part II - Other Information ## Item 1. Legal Proceedings For a discussion of Legal Proceedings, see Note 16 to the Consolidated Financial Statements. ## Item 1A. Risk Factors In addition to the other information set forth in this report, you should carefully consider the risk factors discussed under “Part I - Item 1A - Risk Factors" in our 2025 Form 10-K. These factors could materially adversely affect our business, financial condition, liquidity, results of operations and capital position, and could cause our actual results to differ materially from our historical results or the results contemplated by the forward-looking statements contained in this report. Also refer to the discussion in “Part I - Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations" in this report for additional information that may supplement or update the discussion of risk factors below and in our 2025 Form 10-K. There have been no material changes to the risk factors previously disclosed under Item 1A of the Corporation’s 2025 Form 10-K. The risks described in our 2025 Form 10-K and in this report are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, liquidity, results of operations and capital position. ## Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The Corporation did not have any unregistered sales of equity securities during the quarter ended June 30, 2026. Issuer Purchases of Equity Securities The following table sets forth the details of purchases of common stock by the Corporation and its affiliated purchasers during the quarter ended June 30, 2026: **Issuer Purchases of Equity Securities** | Not in thousands / Period | Total Numberof Shares Purchased [1] | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs [2] | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs [2] | | --- | --- | --- | --- | --- | | April 1 - April 30 | 133,640 | $142.01 | 133,541 | $106,902,448 | | May 1 -May 31 | 409,481 | 148.31 | 380,592 | 50,522,845 | | June 1 - June 30 | 320,112 | 156.57 | 319,236 | 542,639 | | Total | 863,233 | $150.40 | 833,369 | $542,639 | [1] Includes 99, 28,889 and 876 shares of the Corporation’s common stock acquired by the Corporation during April, May and June 2026, respectively, in connection with the satisfaction of tax withholding obligations on vested awards of restricted stock or restricted stock units granted to directors and certain employees under the Corporation’s Omnibus Incentive Plan. The acquired shares of common stock were added back to treasury stock. [2] As part of its capital plan, in July 2025, the Corporation announced plans to repurchase up to $500 million in common stock, in addition to the $500 million in common stock repurchase program announced in July 2024. As of June 30, 2026, and since the first authorization in 2024, the Corporation repurchased 8,905,311 shares of common stock for $999.3 million at an average price of $112.21 per share, as part of the 2024 and 2025 common stock repurchase programs. ## Item 3. Defaults Upon Senior Securities None. ## Item 4. Mine Safety Disclosures Not applicable. ## Item 5. Other Information Rule 10b5-1 Trading Plans or Other Preplanned Trading Arrangements Certain of our officers or directors have made, and may from time to time make, elections to participate in, and are participating in, our dividend reinvestment and purchase plan, the Company stock fund associated with our 401 (k) plans and/or the Company stock fund associated with our non-qualified deferred compensation plans and have shares withheld to cover withholding taxes upon the vesting of equity awards, which may be designed to satisfy the affirmative defense conditions of Rule 10b5-1 under the Exchange Act or may constitute non-Rule 10b5-1 trading arrangements (as defined in Item 408(c) of Regulation S-K). 126 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) ## Item 6. Exhibits Exhibit Index | Exhibit No | Exhibit Description | | --- | --- | | 3.1 | Restated Certificate of Incorporation of Popular, Inc. as of May 8, 2026 (Incorporated by reference to Exhibit 3.1 of Popular Inc.’s Current Report on Form 8-K dated May 8, 2026 and filed May 11, 2026) | | 3.2 | Amended and Restated By-Laws of Popular, Inc. as of May 8, 2026 (Incorporated by reference to Exhibit 3.2 of Popular Inc.’s Current Report on Form 8-K dated May 8, 2026 and filed May 11, 2026) | | 10.1 | Award Agreement, dated July 22, 2026, entered into by and between Javier D. Ferrer and his spouse and Popular, Inc. (1)* | | 10.2 | Services Agreement, dated July 22, 2026, entered into by and between Javier D. Ferrer and Popular, Inc. (1)* | | 22.1 | Issuers of Guaranteed Securities (Incorporated by reference to Exhibit 22.1 of Popular, Inc.'s Annual Report on Form 10-K for the year ended December 31,2025) | | 31.1 | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(1) | | 31.2 | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(1) | | 32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002(1) | | 32.2 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002 (1) | | 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline Document. | | 101.SCH | Inline XBRL Taxonomy Extension Calculation Linkbase Document(1) | | 101.CAL | Inline XBRL Taxonomy Extension Definitions Linkbase Document(1) | | 101.DEF | Inline XBRL Taxonomy Extension Label Linkbase Document(1) | | 101.LAB | Inline XBRL Taxonomy Extension Presentation Linkbase Document(1) | | 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document(1) | | 104 | The cover page of Popular, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 20252026,formatted in Inline XBRL (included within the Exhibit 101 attachments)(1) | (1) Included herewith *This exhibit is a management contract or compensatory plan or arrangement. Popular, Inc. has not filed as exhibits certain instruments defining the rights of holders of debt of Popular, Inc. not exceeding 10% of the total assets of Popular, Inc. and its consolidated subsidiaries. Popular, Inc. hereby agrees to furnish upon request to the Commission a copy of each instrument defining the rights of holders of senior and subordinated debt of Popular, Inc., or of any of its consolidated subsidiaries. 127 [Table of Content](#i255eb36da5c74ca8bb95d2e920a4f2a5_7) SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. POPULAR, INC. (Registrant) Date: August 7, 2026 By: Isl Jorge J. Garcia Jorge J. Garcia Executive Vice President & Chief Financial Officer Date: August 7, 2026 By: Isl Denissa M. Rodriguez Denissa M. Rodriguez Senior Vice President & Corporate Comptroller --- ## EX-10.1 SEC source: [exh101awardagreement7212.htm](https://www.sec.gov/Archives/edgar/data/763901/000076390126000019/exh101awardagreement7212.htm) ![Slide 1]() > **Source slide transcript** > > EXHIBIT 10.1 AWARD AGREEMENT This AWARD AGREEMENT (“Agreement”) is made and entered into by and between Javier D. Ferrer (“Executive”), his wife Blanca M. Pujals (“spouse”) and their conjugal partnership (collectively referred to as the “Executive and his spouse”), and Popular, Inc. (the “Corporation”) as of July 22, 2026. WHEREAS, Executive is currently employed by the Corporation as President and Chief Executive Officer; WHEREAS, Executive has decided to voluntarily retire from the Corporation effective August 31, 2026; WHEREAS, the Corporation has retained Executive following his retirement to provide certain consulting services to the Corporation and its subsidiaries (together, the “Popular Group”), pursuant to the Services Agreement, dated of even date herewith (the “Services Agreement”); and WHEREAS, in connection with the Corporation’s and Executive’s 2026 performance, the Corporation, through the Talent and Compensation Committee of the Board of Directors of the Corporation (the “Committee”) has decided to grant Executive the equity award set forth in this Agreement and certain other payments and benefits as provided herein. NOW THEREFORE, in consideration of the promises, and the agreements of the parties set forth in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 1. Equity Award. Subject to the terms and conditions set forth herein, the Committee hereby grants Executive an equity award (the “Award”) consisting of the number of shares of Restricted Stock set forth in Annex 1 hereto. The Award is made under the Popular, Inc. 2020 Omnibus Incentive Plan, as amended (the “Plan”), and, except as otherwise provided herein, shall be subject to the terms of the Plan. Capitalized terms used but not otherwise defined in this Agreement have the meanings given in the Plan. 2. Equity Award Vesting and Payout. Subject to this Section 2 and Sections 7 and 8 of this Agreement: (a) Restricted Stock Vesting. The Award shall become vested on August 31, 2027 (the “Vesting Date”), subject to the terms and conditions of this Agreement, to the continuous employment of Executive with the Corporation until August 31, 2026 (the “Retirement Date”) and to Executive’s continuous compliance with the terms of the Services Agreement through the Vesting Date. (b) Death. In the event of the Executive’s death and provided that Executive’s rights in respect of the Award have not been previously terminated, the --- ![Slide 2]() > **Source slide transcript** > > 2 Award shall immediately vest and be paid to the representative of Executive’s estate promptly after Executive’s death. (c) Disability. If Executive becomes subject to Disability and provided that Executive’s rights in respect of the Award have not been previously terminated, the Award shall immediately vest and shall be paid to Executive promptly after Executive becomes subject to Disability. (d) Payout. The shares vested in accordance with this Section 2 will cease to be subject to the restrictions of Sections 3 and 4 of this Agreement and will be delivered to Executive as soon as administratively practicable, generally within 45 days following the date of vesting. 3. Termination of Award. (a) Except as provided herein, Executive’s rights in respect of the Award shall immediately terminate, and no Award shall be paid in respect thereof, if at any time prior to the Retirement Date Executive terminates his employment or at any time prior to the Vesting Date Executive materially breaches the Services Agreement. (b) If the Corporation terminates Executive’s employment for Cause prior to the Retirement Date, the Award shall be cancelled and the provisions under the Plan will apply. 4. Non-transferability. The Award (or any rights and obligations hereunder) may not be sold, exchanged, transferred, assigned, pledged, hypothecated or otherwise disposed of or hedged, in any manner (including through the use of any cash-settled instrument), whether voluntarily or involuntarily and whether by operation of law or otherwise, other than by will or by the laws of descent and distribution. 5. Withholding, Consents and Legends. (a) Executive shall be solely responsible for any applicable taxes (including, without limitation, income and excise taxes) and penalties, and any interest that accrues thereon, incurred in connection with the Award. The Corporation will withhold shares of Common Stock for the payment of taxes in connection with the vesting of the Award or upon the occurrence of any other event that, in accordance with applicable law, will generate a tax liability with regards to the Award. The Corporation will withhold shares of Common Stock with a value equal to the amount of taxes that the Corporation determines it is required to withhold under applicable laws (with such withholding obligation determined based on any applicable minimum statutory withholding rates). The Corporation will use the Fair Market Value of the Common Stock on the Vesting Date or such other date, as applicable, in order to determine the number of shares to be withheld. If Executive wishes to remit cash to the Corporation (through payroll deduction or otherwise), in each case in an amount sufficient in the opinion of the Corporation to satisfy such withholding obligation, Executive must notify the Corporation in advance and do so in compliance with all applicable laws and pursuant to such rules as the Corporation may establish from time to time, including, but not limited to, the Corporation’s Insider Trading Policy. --- ![Slide 3]() > **Source slide transcript** > > 3 (b) Executive’s right to receive shares pursuant to the Award is conditioned on the receipt to the reasonable satisfaction of the Committee of any required documentation that the Committee may reasonably determine to be necessary or advisable. 6. Other Payments and Benefits. (a) Short-Term Incentive for 2026. Subject to Section 7 of this Agreement, Executive will be eligible to receive a short-term cash incentive for 2026, approved by the Committee upon consideration of the Corporation’s and the Executive’s performance year-to-date, in the amount of $1,620,000 (subject to applicable tax withholdings and deductions) (the “2026 Short-Term Incentive”). The approved amount corresponds to an annualized award equal to 202.5% times base pay prorated for the portion of the 2026 performance year during which Executive will be employed by the Corporation. The 2026 Short-Term Incentive will be payable within ten (10) days of the Effective Date (as defined in Annex 2) subject to Section 7 of this Agreement. (b) Medical Coverage. Subject to Section 7 of this Agreement, upon Executive’s retirement, Executive and his spouse will continue to be covered under the Corporation’s health plan, at no cost to them, at the same coverage level as was in effect prior to the Retirement Date, for a period of up to 36 months after the Retirement Date (i.e., until up to August 31, 2029) (the “Medical Coverage Period”). In the event of Executive’s death before or during the Medical Coverage Period, the continuation of health insurance coverage described above will cease, and his spouse will then be eligible to elect continuation coverage in accordance with the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) and the following paragraph will not apply. Subject to Section 7 of this Agreement, Executive and his spouse will be offered the opportunity to continue their health plan coverage in accordance with COBRA starting on September 1, 2029. The continuation of the health plan coverage under this paragraph shall be pursuant to, and in accordance with COBRA. Pursuant to the separate notice of COBRA benefits which will be provided to Executive and his spouse, they shall complete the required forms to elect continuation of medical benefits under COBRA, if they wish to elect this benefit, and Executive agrees that he will be responsible to timely pay the full COBRA premiums, plus an additional 2% to cover administrative fees. The benefits described in this Section 6(b) shall be referred to herein as the “Medical Benefits.” The Award, the 2026 Short-Term Incentive, and the Medical Benefits are herein collectively referred to as the “Agreement Payments and Benefits.” (c) Equity Grants. i) Restricted Stock: At various times during Executive’s employment with the Corporation, he was awarded Restricted Stock under the Plan and the Popular, Inc. 2004 Omnibus Incentive Plan, as amended (collectively, the “Equity Plans”), with the most recent award granted in February 2026. Under the terms of the Equity Plans, the Corporation will accelerate the vesting of any unvested portion of the Restricted Stock as of the Retirement Date (excluding the Award, 41,928 shares in the aggregate), which will be delivered to him as soon as administratively practicable after --- ![Slide 4]() > **Source slide transcript** > > 4 the Retirement Date. The Corporation will withhold shares of common stock with a value equal to the payment of the taxes that it determines it is required to withhold under applicable tax laws with respect to the award vesting, and shall cause the restrictions on the remainder of the shares to lapse. By accepting delivery of the shares, Executive acknowledges that he is subject to the Corporation’s Insider Trading Policy. ii) Performance Shares: At various times during Executive’s employment with the Corporation, he was awarded Performance Shares under the Plan, with the most recent award granted in February 2026. Outstanding unvested Performance Shares (25,936 shares at target in the aggregate) will vest, respectively, in February 2027, February 2028 and February 2029 according to the terms and vesting schedule in the relevant Popular, Inc. Long-Term Equity Incentive Award and Agreement. Upon vesting, the Performance Shares will be delivered to Executive as soon as administratively practicable after the applicable vesting date. The Corporation will withhold shares of common stock with a value equal to the payment of the taxes that it determines it is required to withhold under applicable tax laws with respect to the award vesting. By accepting delivery of the shares, Executive acknowledges that he is subject to the Corporation’s Insider Trading Policy. Subject to the provisions hereunder, Executive acknowledges, agrees and warrants that he is not entitled to any other incentive payments, bonuses, equity grants, Restricted Stock, Performance Shares or other compensation under the compensation plans and policies of the Corporation. (d) Retirement Benefits. Executive and the Corporation acknowledge and agree that Executive has accrued benefits under the Popular, Inc. Puerto Rico Savings and Investment Plan and the Popular, Inc. Puerto Rico Nonqualified Deferred Compensation Plan (the “Retirement Plans”), and that his benefits under the Retirement Plans shall be determined in accordance with the provisions thereof and any election related thereto. Any payments or benefits hereunder shall be excluded from eligible compensation for purposes of determining any deferral amounts or benefit values under the Retirement Plans. (e) No Further Benefits, Payments, Etc. Executive acknowledges and agrees that except as expressly provided herein, his coverage under any compensation or benefit plan, program, policy or arrangement sponsored or maintained by the Popular Group shall cease and be terminated as of the Retirement Date. Executive further acknowledges and agrees that no payment made by the Corporation pursuant to this Agreement is subject to any employer matching obligation or any other employer contribution under any benefit or deferred compensation plan, whether or not any such payment is characterized as wages or other compensation. 7. Release and Waiver As a condition to receipt of the Agreement Payments and Benefits and in consideration of the terms, conditions hereof, Executive and his spouse must (i) execute, deliver, and not revoke this Agreement in accordance with the terms hereof and (ii) following the Retirement Date, execute, deliver, and not revoke the release attached hereto as Annex 2 (the “Release”) in accordance with the terms thereof. In addition, --- ![Slide 5]() > **Source slide transcript** > > 5 Executive and his spouse agree to execute any additional documentation as the Corporation deems necessary and appropriate to ensure an effective release of claims. (a) General Release. Executive and his spouse knowingly and voluntarily state and agree, on their behalf and on behalf of their current, former and future heirs, executors, administrators, attorneys, agents and assigns, that they do not have, and in any event that they waive, terminate, cancel, release and discharge forever the Popular Group from any and all actions, causes of action, claims, allegations, rights, obligations, liabilities, or charges (collectively the “Claims”) that they have or may have, whether known or unknown, by reason of any matter, cause or thing occurring at any time before and including the date of execution of this Agreement, including, without limitation, claims for compensation or bonuses (including, without limitation, any claim for an award under any compensation plan or arrangement); breach of contract; tort; wrongful, unjust, abusive, unfair, constructive, or unlawful discharge or dismissal; impairment of economic opportunity; defamation; age and national origin discrimination; workplace harassment; sexual harassment or discrimination; discrimination based on marital status; back pay; front pay; benefits; attorney's fees; emotional distress; intentional infliction of emotional distress; assault; battery, pain and suffering; punitive or exemplary damages; all claims under Title VII of the Civil Rights Act of 1964, the Civil Rights Acts of 1866 and 1991 and Executive Order 11246, which prohibit employment discrimination based on race, color, religion, sex, or national origin; the Age Discrimination in Employment Act of 1967 and the Older Workers Benefit Protection Act of 1990, which prohibit employment discrimination because of age against individuals who are 40 years of age or older; the Equal Pay Act, which prohibits sex-based wage discrimination against men and women who perform substantially equal work in the same establishment; the Americans with Disabilities Act (ADA), which prohibits employment discrimination against qualified individuals with disabilities in the private sector, and in state and local governments; and Sections 501 and 505 of the Rehabilitation Act of 1973, which prohibit federal contractors to discriminate in employment against qualified individuals with disabilities; the Genetic Information Nondiscrimination Act (GINA) of May 21, 2008, which prohibits discrimination against employees based on genetic information; the Family and Medical Leave Act, which protects employees' rights to medical and family leave; the Uniformed Services Employment and Reemployment Rights Act (USERRA); the Vietnam Era Veterans' Readjustment Assistance Act of 1974 (VEVRAA); the Immigration Reform and Control Act; the Fair Credit Reporting Act; the Racketeer Influenced and Corrupt Organizations Act; the Sabine Pilot Doctrine; Section 885 of the American Jobs Creation Act of 2004; the Constitution of Puerto Rico, which prohibits discriminatory treatment; Law 69 of July 6, 1985, which prohibits employment discrimination on the basis of sex; Law 17 of April 22, 1988, which prohibits sexual harassment in employment; Law 90 of August 7, 2020, which prohibits workplace harassment; Law 100 of June 30, 1959, as amended, which prohibits employment discrimination based on age, race, color, sex, sexual orientation, gender identity, marital status, social or national origin, social condition, political affiliation, political or religious beliefs, or against an employee for being a victim or being perceived as a victim of domestic violence, sexual aggression or stalking, or based on sexual orientation or gender identity; Law 16 of March 8, 2017 (Equal Pay Act of Puerto Rico); Law 61 of August 1, 2017; Law 116 of December 20, 1991; Law 44 of July 2, 1985, which prohibits employment discrimination against qualified individuals with disabilities or under any other local, state or federal law which prohibits discrimination, harassment or retaliation; Law 217 of September 29, 2006 --- ![Slide 6]() > **Source slide transcript** > > 6 (Law for the Implementation of a Protocol to Handle Situations of Violence); Law 139 of June 26, 1968 (SINOT); Law 45 of April 18, 1935 (State Insurance Fund); Law 4 of January 26, 2017 (Transformation and Labor Flexibility Act); Law 41 of 2022; the Employee Retirement Income Security Act of 1974 (ERISA); the Workers Adjustment Retraining and Notification Act (WARN); the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA); the Health Insurance Portability and Accountability Act (HIPAA); the Occupational Safety and Health Act (OSHA); the Families First Coronavirus Response Act de 2020 (FFCRA); the CARES Act of 2020; the Fair Labor Standards Act of 1938 (FLSA); the National Labor Relations Act; the Federal Bankruptcy Act; the Insurance and the Civil Codes of Puerto Rico; Law 80 of May 30, 1976, as amended, or any other law that protects against wrongful or unjustified terminations of employment; Law 379 of May 15, 1948 (Days and Hours of Work); Law 96 of June 26, 1956 (Minimum Wage); Law 148 of June 30, 1969 (Christmas Bonus); Law 37 of April 9, 2020; Law 180 of July 27, 1998 (vacation and sick leave); Law 60 of January 27, 2018; Law 28 of January 21, 2018; and any other federal, state or local (including Puerto Rico) laws, whether based on statute, regulation or common law, providing workers' compensation benefits; restricting an employer's right to terminate employees or otherwise regulating employment; or enforcing express or implied employment contracts or requiring an employer to deal with employees fairly or in good faith; providing recourse for alleged wrongful discharge, harassment or discrimination, physical or personal injury, emotional distress, fraud, negligent misrepresentation, libel, slander, defamation and similar or related claims, or any law regarding wages or compensation, retaliation, negligence, loss of consortium, intentional infliction of emotional distress, negligent infliction of emotional distress, or any other claim and any alleged injuries they may have suffered up to and including the date of execution of this Agreement. In addition, in consideration of the provisions of this Agreement, Executive and his spouse further agree to waive any and all rights under the laws of any jurisdiction in the United States or Puerto Rico that limit a general release to those claims that are known or suspected to exist in Executive and his spouse's favor as of the date of execution of this Agreement. In addition, Executive represents and warrants that he has not been the victim of retaliation under Section 704 of the Civil Rights Act of 1964 (42 USC § 2000e- 3); the Age Discrimination in Employment Act (ADEA, 29 USC § 3(d)); the Federal Deposit Insurance Act (FDIA, 12 USC § 1831j); Article 8 of Law 17 of April 22, 1988 (29 L.P.R.A. § 155h); Article 20 of Law 69 of July 6, 1985 (29 L.P.R.A § 340); Law 115 of December 20, 1991, as amended by Law 169 of September 29, 2014 (29 L.P.R.A § 94 et seq.); Section 806 of the Sarbanes Oxley Act of 2002; the Securities Exchange Act of 1934; or any other federal or local statute or regulation which prohibits retaliation against an employee. Furthermore, Executive and his spouse, their heirs, executors, assignees, and agents do not have, and if they had they hereby waive any claim of any type, and the remedies, under any federal, state or Commonwealth of Puerto Rico law, including those related to or that may be alleged as arising from the employment relationship between Executive and the Corporation, or the termination of the same, and grant the most complete release for any claim or cause of action they have or may have or had, known or unknown, whether in law or in equity, in contract, or torts, against the Popular Group, and they acknowledge and agree that they will not file suit in the United States District Court, any Federal or state courts, any Commonwealth of Puerto Rico court or --- ![Slide 7]() > **Source slide transcript** > > 7 in any arbitral forum for any cause of action that could arise from Executive’s employment or the termination of his employment under any local, state or federal employment law or regulation. Executive and his spouse, based on personal knowledge, recognize and declare that they have not suffered damages caused by, or attributable to, the Popular Group, and that their relatives, heirs, executors, assignees and/or agents, or any other parties claiming a relationship of dependence, interest or affection with Executive, have not suffered any damage that may be blamed on, or attributable to, the Popular Group for any reason including, but not limited to the employment relationship of Executive, the termination of employment and any incident or fact which occurred during his employment with the Corporation. Executive and his spouse agree to hold harmless and indemnify the Popular Group, including reasonable attorney's fees and costs incurred by the Popular Group, for any action filed by any member of their family or by any of their relatives or by any other parties claiming a relationship of dependence, interest or affection with them for the causes of action being released herein. The parties agree and understand that the purpose of this paragraph is to exclude the Popular Group from any liability or cause of action that could be filed pursuant to Santini v. Service Air, Inc., 137 D.P.R. 1 (1994). (b) Acknowledgements by Executive and his Spouse. Executive and his spouse acknowledge and agree that they have read this Agreement in its entirety and that this Agreement includes a general release of all known and unknown claims, including, without limitation, to rights and claims arising under the Age Discrimination in Employment Act (“ADEA”). Executive and his spouse further acknowledge and agree that: i) this Agreement does not release, waive or discharge any rights or Claims that may arise for actions or omissions after the date of execution of this Agreement; ii) Executive and his spouse are entering into this Agreement and releasing, waiving and discharging rights or Claims only in exchange for consideration which they are not already entitled to receive; iii) Executive and his spouse have been advised, and are being advised by the Corporation, to consult with an attorney and tax advisor before executing this Agreement; iv) Executive and his spouse have been advised, and are being advised by this Agreement, that he and his spouse have twenty-one (21) days within which to consider this Agreement; and v) this Agreement must be signed and returned by Executive and his spouse to the Corporation through José Coleman Tió, Esq., by email at Jose.ColemanTio@popular.com, no later than twenty-one (21) days after the date this Agreement is delivered to them; that is, by no later than August 11, 2026. In order to receive the Agreement Payments and Benefits, Executive and his spouse must also comply with the terms of this Agreement and, following the Retirement Date, sign, deliver, and not revoke the Release attached as Annex 2. No modifications or revisions, if any, to this Agreement after it is first presented to Executive and his spouse shall extend or otherwise modify the consideration period provided in this Agreement. If Executive and his spouse fail to execute and return this Agreement, or the Release, --- ![Slide 8]() > **Source slide transcript** > > 8 within the specified time period, they will forfeit any right to the Agreement Payments and Benefits, and the Corporation will have no obligation to provide such payment or benefits. Executive and his spouse agree that they may not sign the Annex 2 prior to the Retirement Date, but must sign and deliver it to the Corporation on or within twenty- one (21) days after the Retirement Date. (c) Right to Revoke. Executive and his spouse may revoke this Agreement at any time during the period of seven (7) days following the date they sign this Agreement and return it to the Corporation. Executive and his spouse may revoke this Agreement at any time during such seven-day period by delivering (or causing to be delivered) to the Corporation, through José Coleman Tió, Esq., by email at Jose.ColemanTio@popular.com, written notice of their revocation of this Agreement no later than 5:00 p.m. Eastern time on the seventh (7th) full day following the date of execution of this Agreement. 8. Restrictive Covenants. (a) In consideration of the terms of the Award, Executive agrees to the restrictive covenants and associated remedies as set forth below, which exist independently of and in addition to any obligation to which Executive is subject under the terms of any other agreement with the Popular Group. (b) For the period commencing on the Retirement Date and ending on the first anniversary of the Retirement Date, Executive will not do any of the following, either directly or indirectly or through associates, agents, or employees: i) work or associate (including as a director, officer, employee, partner, consultant, agent or advisor) with or otherwise provide services to, or operate, manage or control in any way, a Competitive Enterprise performing the same or similar duties as those which were performed by Executive in the Popular Group during the 12- month period immediately preceding the Retirement Date. “Competitive Enterprise” means any business enterprise that either (1) engages in commercial or consumer financial services, retail banking or internet banking or other financial, investment, financial advisor, trust or insurance services to either commercial or consumer customers in the Commonwealth of Puerto Rico or the States of New York or Florida, or (2) holds a 5% or greater equity, voting or profit participation interest in any enterprise that engages in such a competitive activity within the Commonwealth of Puerto Rico or the States of New York or Florida; ii) solicit, recruit or assist in the solicitation or recruitment of any employee or consultant of the Popular Group (or who was an employee or consultant of the Popular Group within the prior six months of the Retirement Date) for the purpose of encouraging that employee or consultant to leave the Popular Group’s employ or sever an agreement for services; or iii) solicit, participate in or assist in the solicitation of any of the Popular Group’s customers serviced by Executive or with whom Executive had a Material Contact and/or regarding whom Executive received Confidential Information (as defined in the Popular Group’s Code of Ethics) during the three-year period prior to the Retirement Date who were still customers of the Popular Group during the --- ![Slide 9]() > **Source slide transcript** > > 9 immediately preceding 12-month period, for the purpose of providing products or services in competition with the Popular Group’s products or services. “Material Contact” means interaction between the Executive and the customer within the three years prior to the Retirement Date which takes place to manage, service or further the business relationship. The term “Solicit”, when used in this section, will mean any direct or indirect communication of any kind regardless of who initiates it, that in any way invites, advises, encourages or requests any person to take any action; provided that such term will not be deemed to include solicitation by public advertisement media of general distribution (i.e., not targeted to present employees, consultants or customers of the Popular Group) without specific instruction or direction by Executive. (c) Non-Disparagement. Executive and his spouse agree to refrain from performing any act, engaging in any conduct or course of action, or making or publishing any statements, claims, allegations or assertions which have or may reasonably have the effect of demeaning the name or business reputation of the Popular Group or any of its employees, officers, directors, agents or advisors in their capacities as such or which adversely affects (or may reasonably be expected to adversely affect) the best interests (economic or otherwise) of any of them. In addition, the Corporation agrees to instruct the current members of the Corporation’s Board of Directors and Senior Management Team to refrain from performing any act, engaging in any conduct or course of action, or making or publishing any statements, claims, allegations or assertions which have or may reasonably have the effect of demeaning the name or business reputation of Executive and his spouse or which adversely affects (or may reasonably be expected to adversely affect) the best interests (economic or otherwise) of any of them. The parties agree that nothing in this Agreement shall preclude them from fulfilling any duty or obligation that they may have at law, from responding to any subpoena or official inquiry from any court or government agency, including providing truthful testimony, documents subpoenaed or requested or otherwise cooperating in good faith with any proceeding or investigation, or from taking any reasonable actions to enforce their rights under this Agreement in accordance with the dispute resolution provisions specified in this Agreement or from exercising their right to provide truthful information to any governmental entity or to file a charge with or participate in an investigation conducted by any governmental entity. Notwithstanding the foregoing, Executive agrees to waive his right to recover monetary damages in connection with any charge, complaint or lawsuit filed by him or anyone else on his behalf (whether involving a governmental entity or not); provided that Executive is not agreeing to waive, and this Agreement shall not be read as requiring Executive to waive, any right he may have to receive an award for information provided to any governmental entity. Nothing herein shall be intended to prevent Executive from initiating, participating in, or offering testimony in proceedings related to sexual harassment claims or proceedings before the National Labor Relations Board or otherwise exercising his rights or supporting the rights of other employees pursuant to Section 7 of the National Labor Relations Act. (d) If Executive breaches any of the terms of this Section 8, the Award shall be immediately and irrevocably forfeited for no consideration. This paragraph does not constitute the Corporation’s exclusive remedy for violation of the restrictive covenant obligations, and the Corporation may seek any additional legal or equitable remedy, including injunctive relief, for any such violation. --- ![Slide 10]() > **Source slide transcript** > > 10 9. [Reserved.] 10. No Rights to Continued Employment. Nothing in this Agreement shall be construed as giving Executive any right to continued employment by the Corporation or any of its affiliates or affect any right that the Corporation or any of its affiliates may have to terminate or alter the terms and conditions of Executive’s employment. 11. Successors and Assigns of the Corporation. The terms and conditions of this Agreement shall be binding upon, and shall inure to the benefit of, the Corporation and its successor entities. 12. Committee Discretion. Subject to the terms of the Equity Plans and the Retirement Plans, the Committee shall have full discretion with respect to any actions to be taken or determinations to be made in connection with this Agreement, and its determinations shall be final, binding and conclusive. 13. Amendment. The Committee reserves the right at any time to amend the terms and conditions set forth in this Agreement; provided that, notwithstanding the foregoing, no such amendment shall materially adversely affect Executive’s rights and obligations under this Agreement without Executive’s consent (or the consent of Executive’s estate, if such consent is obtained after Executive’s death), and provided, further, that the Committee may not postpone the payout of shares to occur at any time after the applicable time provided for in this Agreement. Any amendment of this Agreement shall be in writing signed by an authorized member of the Committee or a person or persons designated by the Committee. 14. Adjustment; Other Plan Provisions. Subject to Section 13 of this Agreement, the Committee shall adjust equitably the terms of the Award in accordance with Section 5.3 of the Plan, if applicable. Subject to the terms of this Agreement, the Award shall be subject to the terms of the Plan, including, but not limited to, the provisions of Section 8.4 related to dividends and voting rights. Cash dividends paid on the Award and on all of the Common Stock that may be subsequently acquired with such cash dividends, will be invested in the purchase of additional shares of Common Stock of the Corporation in accordance with the Popular, Inc. Dividend Reinvestment and Stock Purchase Plan; such shares are not subject to the restrictions and are immediately vested. The Award shall be held in custody by the Fiduciary Services Division of Banco Popular de Puerto Rico. 15. Governing Law and Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Puerto Rico, without regard to principles of conflicts of laws. Any civil action or legal proceeding arising out of or relating to the Agreement will be brought exclusively in the courts of the Commonwealth of Puerto Rico. 16. Severability. Should a court or arbiter with competent jurisdiction determine that any clause in this Agreement is illegal, invalid, or unenforceable under present or future law, such provision will be fully severable, and the remaining provisions of the Agreement will remain in full force and effect. --- ![Slide 11]() > **Source slide transcript** > > 11 17. Incentive Recoupment. The Award and the 2026 Short-Term Incentive shall be subject to the terms of the Popular, Inc. Compensation Recoupment Policy in effect as of the Grant Date and as such policy may be required to be modified in accordance with applicable law or regulation. 18. Headings. The headings in this Agreement are for the purpose of convenience only and are not intended to define or limit the construction of the provisions hereof. 19. Counterparts. The Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which taken together will constitute one and the same instrument. [Signature Page Follows] --- ![Slide 12]() > **Source slide transcript** > > 12 IN WITNESS WHEREOF, the Corporation and Executive have caused this Agreement to be duly executed and delivered as of July 22, 2026. POPULAR, INC. ACCEPTED: By: Manuel Chinea By: Javier D. Ferrer Title: Executive Vice President and Title: President and Chief Executive Officer Chief Experience & Administration Services Officer /s/ Manuel Chinea /s/ Javier D. Ferrer _____________________ _____________________ Signature Signature By: Blanca M. Pujals /s/ Blanca M. Pujals _____________________ Signature --- ![Slide 13]() > **Source slide transcript** > > 13 ANNEX 1 POPULAR, INC. AWARD Recipient: Javier D. Ferrer Employee Number: 49473 Restricted Stock Grant Date: July 22, 2026 Total Dollar Value of Award: $2,600,000 Common Stock Market Price as of closing on Grant Date: $173.89 Total Shares of Restricted Stock Awarded: 14,952 Restricted Stock Vesting Date: August 31, 2027 --- ![Slide 14]() > **Source slide transcript** > > 14 ANNEX 2 GENERAL RELEASE General Release (this “Release”), by Javier D. Ferrer (“Executive”), his wife Blanca M. Pujals (“spouse”) and their conjugal partnership (collectively referred to as “Executive and his spouse”), in favor of Popular, Inc. (the “Corporation”) and any of its subsidiaries and affiliates (collectively, the “Popular Group”) and any of their respective past or present shareholders, principals, directors, officers, employees, managers, agents, attorneys, trustees, fiduciaries, representatives, insurers, assigns or benefit plan administrators (collectively the “Released Parties”). RECITALS WHEREAS, Executive was employed by the Corporation as President and Chief Executive Officer; and WHEREAS, Executive is eligible to receive certain payments and benefits under that certain Award Agreement, dated as of July 22, 2026 (the “Agreement”) that are conditioned on the execution and effectiveness of this Release. NOW, THEREFORE, in consideration of the covenants and agreements hereinafter set forth, the parties agree as follows: 1. General Release. Executive and his spouse knowingly and voluntarily waive, terminate, cancel, release and discharge forever the Released Parties from any and all actions, causes of action, claims, allegations, rights, obligations, liabilities, or charges (collectively the “Claims”) that they have or may have, whether known or unknown, by reason of any matter, cause or thing occurring at any time before and including the date of execution of this Release, including, without limitation, claims for compensation or bonuses (including, without limitation, any claim for an award under any compensation plan or arrangement); breach of contract; tort; wrongful, unjust, abusive, unfair, constructive, or unlawful discharge or dismissal; impairment of economic opportunity; defamation; age and national origin discrimination; workplace harassment; sexual harassment or discrimination; discrimination based on marital status; back pay; front pay; benefits; attorney's fees; whistleblower claims; emotional distress; intentional infliction of emotional distress; assault; battery, pain and suffering; punitive or exemplary damages; all claims under Title VII of the Civil Rights Act of 1964, the Civil Rights Acts of 1866 and 1991 and Executive Order 11246, which prohibit employment discrimination based on race, color, religion, sex, or national origin; the Age Discrimination in Employment Act of 1967 and the Older Workers Benefit Protection Act of 1990, which prohibit employment discrimination because of age against individuals who are 40 years of age or older; the Equal Pay Act, which prohibits sex- based wage discrimination against men and women who perform substantially equal work in the same establishment; the Americans with Disabilities Act (ADA), which prohibits employment discrimination against qualified individuals with disabilities in the private sector, and in state and local governments; and Sections 501 and 505 of the Rehabilitation Act of 1973, which prohibit federal contractors to discriminate in employment against qualified individuals with disabilities; the Genetic Information Nondiscrimination Act (GINA) of May 21, 2008, which prohibits discrimination against --- ![Slide 15]() > **Source slide transcript** > > 15 employees based on genetic information; the Family and Medical Leave Act, which protects employees' rights to medical and family leave; the Uniformed Services Employment and Reemployment Rights Act (USERRA); the Vietnam Era Veterans' Readjustment Assistance Act of 1974 (VEVRAA); the Immigration Reform and Control Act; the Fair Credit Reporting Act; the Racketeer Influenced and Corrupt Organizations Act; the Sabine Pilot Doctrine; Section 885 of the American Jobs Creation Act of 2004; the Constitution of Puerto Rico, which prohibits discriminatory treatment; Law 69 of July 6, 1985, which prohibits employment discrimination on the basis of sex; Law 17 of April 22, 1988, which prohibits sexual harassment in employment; Law 90 of August 7, 2020, which prohibits workplace harassment; Law 100 of June 30,1959, as amended, which prohibits employment discrimination based on age, race, color, sex, sexual orientation, gender identity, marital status, social or national origin, social condition, political affiliation, political or religious beliefs, or against an employee for being a victim or being perceived as a victim of domestic violence, sexual aggression or stalking, or based on sexual orientation or gender identity; Law 16 of March 8, 2017 (Equal Pay Act of Puerto Rico); Law 61 of August 1, 2017; Law 116 of December 20, 1991; Law 44 of July 2, 1985, which prohibits employment discrimination against qualified individuals with disabilities or under any other local, state or federal law which prohibits discrimination, harassment or retaliation; Law 217 of September 29, 2006 (Law for the Implementation of a Protocol to Handle Situations of Violence); Law 139 of June 26, 1968 (SINOT); Law 45 of April 18, 1935 (State Insurance Fund); Law 4 of January 26, 2017 (Transformation and Labor Flexibility Act); Law 41 of 2022; the Employee Retirement Income Security Act of 1974 (ERISA); the Workers Adjustment Retraining and Notification Act (WARN); the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA); the Health Insurance Portability and Accountability Act (HIPAA); the Occupational Safety and Health Act (OSHA); the Families First Coronavirus Response Act de 2020 (FFCRA); the CARES Act of 2020; the Fair Labor Standards Act of 1938 (FLSA); the National Labor Relations Act; the Federal Bankruptcy Act; the Insurance and the Civil Codes of Puerto Rico; Law 80 of May 30, 1976 or any other law that protects against wrongful or unjustified terminations of employment; Law 379 of May 15, 1948 (Days and Hours of Work); Law 96 of June 26, 1956 (Minimum Wage); Law 148 of June 30, 1969 (Christmas Bonus); Law 37 of April 9, 2020; Law 180 of July 27, 1998 (vacation and sick leave); Law 60 of January 27, 2018; Law 28 of January 21, 2018; and any other federal, state or local (including Puerto Rico) laws, whether based on statute, regulation or common law, providing workers' compensation benefits; restricting an employer's right to terminate employees or otherwise regulating employment; or enforcing express or implied employment contracts or requiring an employer to deal with employees fairly or in good faith; providing recourse for alleged wrongful discharge, harassment or discrimination, physical or personal injury, emotional distress, fraud, negligent misrepresentation, libel, slander, defamation and similar or related claims, or any law regarding wages or compensation, retaliation, negligence, loss of consortium, intentional infliction of emotional distress, negligent infliction of emotional distress, or any other claim and any alleged injuries they may have suffered up to and including the date of execution of this Release. In addition, in consideration of the provisions of this Release, Executive and his spouse further agree to waive any and all rights under the laws of any jurisdiction in the United States or Puerto Rico that limit a general release to those claims that are known or suspected to exist in Executive and his spouse’s favor as of the Effective Date (as defined below). --- ![Slide 16]() > **Source slide transcript** > > 16 In addition, Executive represents and warrants that he has not been the victim of retaliation under Section 704 of the Civil Rights Act of 1964 (42 USC § 2000e-3); the Age Discrimination in Employment Act (ADEA, 29 USC § 3(d)); the Federal Deposit Insurance Act (FDIA, 12 USC § 831j); Article 8 of Law 17 of April 22, 1988 (29 L.P.R.A. § 155h); Article 20 of Law 69 of July 6, 1985 (29 L.P.R.A § 340); Law 115 of December 20, 1991, as amended by Law 169 of September 29, 2014 (29 L.P.R.A § 94 et seq.); Section 806 of the Sarbanes Oxley Act of 2002; the Securities Exchange Act of 1934; or any other federal or local statute or regulation which prohibits retaliation against an employee. Furthermore, Executive and his spouse, their heirs, executors, assignees, and agents do not have, and if they had they hereby waive any claim of any type, and the remedies, under any federal, state or Commonwealth of Puerto Rico law, including those related to or that may be alleged as arising from the employment relationship between Executive and the Corporation, or the termination of the same, and grant the most complete release for any claim or cause of action they have or may have or had, known or unknown, whether in law or in equity, in contract, or torts, against the Released Parties, and they acknowledge and agree that they will not file suit in the United States District Court, any Federal or state courts, any Commonwealth of Puerto Rico court or in any arbitral forum for any cause of action that could arise from Executive’s employment or the termination of his employment under any local, state or federal employment law or regulation. Executive and his spouse, based on personal knowledge, recognize and declare that they have not suffered damages caused by, or attributable to, the Released Parties, and that their relatives, heirs, executors, assignees and/or agents, or any other parties claiming a relationship of dependence, interest or affection with Executive, have not suffered any damage that may be blamed on, or attributable to, the Released Parties for any reason including, but not limited to the employment relationship of Executive, the termination of employment and any incident or fact which occurred during his employment with the Corporation. Executive and his spouse agree to hold harmless and indemnify the Released Parties, including reasonable attorney’s fees and costs incurred by the Released Parties, for any action filed by any member of their family or by any of their relatives or by any other parties claiming a relationship of dependence, interest or affection with them for the causes of action being released herein. The parties agree and understand that the purpose of this paragraph is to exclude the Released Parties from any liability or cause of action that could be filed pursuant to Santini v. Service Air, Inc., 137 D.P.R. 1 (1994). 2. No Further Payments. Except as provided in the Agreement, Executive acknowledges that he has been fully compensated by the Popular Group under its rules, policies, practices, plans, programs and regulations, and any contract or agreement, applicable laws and regulations, and that nothing is owed for salaries, vacations, bonuses, incentives, separation benefits, severance payment, reimbursement of expenses, “allowances”, or for any other concept including, but not limited to his participation in any other kind of plan, program or incentive, and that all of his wages and benefits with the Popular Group have been settled to his entire satisfaction. 3. Surviving Claims. Notwithstanding anything herein to the contrary, this Release shall not: --- ![Slide 17]() > **Source slide transcript** > > 17 (a) release any Claims relating to the Agreement Payments and Benefits (as defined in the Agreement); (b) release any Claims arising after the date of execution of this Release; (c) limit or prohibit in any way Executive’s (or his beneficiaries’ or legal representatives’) ability to bring an action to enforce the terms of this Release; (d) release any claim for benefits under plans covered by the Employee Retirement Income Security Act of 1974, as amended, to the extent that such claims may not lawfully be waived or for any payments or benefits under any plans of the Popular Group that have vested according to the terms of those plans; (e) release any Claims that may not lawfully be waived; or (f) release any Claims for indemnification in accordance with applicable laws and the Popular Group’s corporate governance documents. 4. Protected Activity. Notwithstanding anything herein to the contrary, this Release shall not preclude Executive or his spouse from fulfilling any duty or obligation that they may have at law, from responding to any subpoena or official inquiry from any court or government agency, including providing truthful testimony, documents subpoenaed or requested or otherwise cooperating in good faith with any proceeding or investigation, or from taking any reasonable actions to enforce their rights under this Release in accordance with the dispute resolution provisions specified in this Release or from exercising their right to provide truthful information to any governmental entity or to file a charge with or participate in an investigation conducted by any governmental entity. Notwithstanding the foregoing, Executive agrees to waive his right to recover monetary damages in connection with any charge, complaint or lawsuit filed by him or anyone else on his behalf (whether involving a governmental entity or not); provided that Executive is not agreeing to waive, and this Release shall not be read as requiring Executive to waive, any right he may have to receive an award for information provided to any governmental entity. Nothing herein shall be intended to prevent Executive from initiating, participating in, or offering testimony in proceedings related to sexual harassment claims or proceedings before the National Labor Relations Board or otherwise exercising his rights or supporting the rights of other employees pursuant to Section 7 of the National Labor Relations Act. 5. Additional Representations. Executive and his spouse further represent and warrant that they have not filed any civil action, suit, arbitration, administrative charge, or legal proceeding against any Released Party nor have they assigned, pledged, or hypothecated any Claim to any person and no other person has an interest in the Claims that they are releasing. 6. Acknowledgements by Executive and his Spouse. Executive and his spouse acknowledge and agree that they have read this Release in its entirety and that this Release is a general release of all known and unknown claims, including, without limitation, to rights and claims arising under the Age Discrimination in Employment Act (ADEA). Executive and his spouse further acknowledge and agree that: --- ![Slide 18]() > **Source slide transcript** > > 18 (a) this Release does not release, waive or discharge any rights or Claims that may arise for actions or omissions after the date of execution of this Release; (b) Executive and his spouse are executing this Release and releasing, waiving and discharging rights or Claims only in exchange for consideration which they are not already entitled to receive; (c) Executive and his spouse have been advised, and are being advised, to consult with an attorney and tax advisor before executing this Release, and acknowledge that they, in fact, have consulted with an attorney and tax advisor; (d) Executive and his spouse have been advised, and are being advised, that they have twenty-one (21) days within which to consider the Release; and (e) Executive and his spouse are aware that the Agreement and this Release shall become null and void if they revoke their agreement to this Release within seven (7) days following the date of execution of this Release. Executive and his spouse may revoke this Release at any time during such seven-day period by delivering (or causing to be delivered) to the Corporation, through José Coleman Tió, Esq., by email at Jose.ColemanTio@popular.com, written notice of their revocation of this Release no later than 5:00 p.m. Eastern time on the seventh (7th) full day following the date of execution of this Release (the “Effective Date”). Executive and his spouse agree and acknowledge that a letter of revocation that is not received by such date and time will be invalid and will not revoke this Release. 7. Additional Agreements. Executive and his spouse agree that should any person or entity file or cause to be filed any civil action, suit, arbitration, or other legal proceeding seeking equitable or monetary relief concerning any claim released by Executive and his spouse herein, they shall not seek or accept any personal relief from or as the result of such civil action, suit, arbitration, or other legal proceeding. 8. Governing Law and Jurisdiction. This Release shall be governed by and construed in accordance with the laws of the Commonwealth of Puerto Rico, without regard to principles of conflicts of laws. Any civil action or legal proceeding arising out of or relating to the Release will be brought exclusively in the courts of the Commonwealth of Puerto Rico. 9. Severability. Should a court or arbiter with competent jurisdiction determine that any clause in this Release is illegal, invalid, or unenforceable under present or future law, such provision will be fully severable, and the remaining provisions of the Release will remain in full force and effect. 10. Headings. The headings in this Release are for the purpose of convenience only and are not intended to define or limit the construction of the provisions hereof. 11. Counterparts. The Release may be executed in one or more counterparts, each of which will be deemed an original, but all of which taken together will constitute one and the same instrument. [Signature Page Follows] --- ![Slide 19]() > **Source slide transcript** > > 19 IN WITNESS WHEREOF, Executive and his spouse have signed this Release on _________________, 2026. _______________________ _______________________ Javier D. Ferrer Blanca M. Pujals ____________________ Manuel Chinea Chief Experience & Administration Services Officer Popular, Inc. --- --- ## EX-10.2 SEC source: [exh102ferrerservicesagre.htm](https://www.sec.gov/Archives/edgar/data/763901/000076390126000019/exh102ferrerservicesagre.htm) ![Slide 1]() > **Source slide transcript** > > EXHIBIT 10.2 SERVICES AGREEMENT This Agreement (the “Agreement”) is entered into by and between Popular, Inc. (“Popular”), a corporation duly organized existing under the laws of Commonwealth of Puerto Rico and Javier D. Ferrer (“Consultant”) (each a “Party” and together the “Parties”), on July 22, 2026. WHEREAS, Consultant is currently employed by Popular as President and Chief Executive Officer; WHEREAS, Consultant has decided to retire from Popular effective August 31, 2026; and WHEREAS, Popular desires to retain Consultant following his retirement to provide certain consulting services to Popular and its subsidiaries (together, the “Popular Group”), and Consultant desires to provide such consulting services to the Popular Group, all subject to the terms and conditions set forth herein; and NOW THEREFORE, in consideration of the promises and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the parties hereby agree as follows: 1. SERVICES 1.1 Service Engagement. Consultant represents and agrees that Consultant shall provide and render to the Popular Group such consulting services, as maybe reasonably requested by Popular, (i) to facilitate the transition of Consultant’s responsibilities to Consultant’s successor and (ii) to support other general business initiatives (collectively, the “Services”). 1.2 Independent Parties. Consultant is an independent contractor. Nothing in this Agreement creates an employer-employee relationship with Popular, nor a partnership, affiliation, joint venture, agency relationship or other form of business association between the Parties hereto. 2. FEES, INVOICES AND PAYMENT 2.1 Fees and Reimbursable Expenses. For the Services provided under this Agreement, Popular shall pay Consultant a fee equal to $100,000 per month, for an aggregate total fee of $1,200,000 during the Term (as defined below) (“Fees”). The Fees include all fees, costs and administrative and overhead expenses. Popular will reimburse Consultant only for those expenses previously agreed to by Popular and, unless otherwise stated, meal and travel expenses will be reimbursed in accordance with Popular’s guidelines, which will be provided upon request. 2.2 Payment. Popular will pay the Fees in United States Dollars, monthly in arrears, no later than the fifteenth (15th) day of the calendar month following the month in which such fee was earned. Popular will deposit the payment electronically to the bank account designated by Consultant or as otherwise mutually agreed to by the Parties. --- ![Slide 2]() > **Source slide transcript** > > 2 2.3 Taxes. Consultant shall pay all taxes related to the Services provided under this Agreement. If Popular is required by Federal or US state Law to withhold taxes on any amount payable to Consultant, Popular will deduct such taxes and pay them to the appropriate taxing authority, unless Consultant submits evidence of a government-issued exemption or waiver. However, Popular’s omission from withholding any applicable taxes, in whole or in part, will not discharge Consultant’s responsibility to pay any such taxes when due. Consultant shall indemnify Popular from any and all liability that may arise for nonpayment of any applicable taxes. Popular shall pay any state sales, use or value added tax applicable to the Services or products. The withholding Party shall provide proof of payment of the taxes withheld. 3. TERM AND TERMINATION 3.1 Term of the Agreement. The Agreement will commence on September 1, 2026 (the “Effective Date”) and will continue in effect until August 31, 2027 (the “Term”). 3.2 Termination. Either Party may terminate the Agreement for cause upon written notice to the other Party as follows: (1) if the cause for termination relates to a violation of Laws (defined below), breach of confidentiality, privacy or other compliance matter, the termination may be effective immediately or (2) for Consultant’s noncompliance with Consultant’s obligations under the Agreement, the effective termination date will be ten (10) days after delivery of the notice of the breach to the breaching Party if it remains uncured at the expiration thereof. 3.3 Effect of Termination. Upon expiration or termination of the Agreement for any reason, Consultant shall promptly: (a) deliver to Popular, upon request, all documents, work product, and other materials, whether or not complete, prepared by or on behalf of Consultant during the course of performing the Services for which Popular has made the corresponding payment; (b) return to Popular all Popular Group-owned property, equipment, or materials in his possession or control; (c) remove any Consultant-owned property, equipment, or materials located at the Popular Group’s locations; and (d) comply with the provisions related to the destruction of the Popular Group’s Confidential Information as provided below. 3.4 Survival of Terms. Any provision of the Agreement that expressly or by implication is intended to continue in force shall survive termination or expiration of the Agreement. 4. CONFIDENTIALITY OF INFORMATION 4.1 General. The Parties acknowledge that, in furtherance of the Agreement, the Consultant (the “Receiving Party”) may receive from the Popular Group (the “Disclosing Party”) Confidential Information. Unless otherwise agreed, the Disclosing Party will remain the owner of the Confidential Information and any derivative thereof and retains its entire right, title, and interest, including all intellectual property rights, therein. Any disclosure of such Confidential Information hereunder shall not be construed as an assignment, grant, option, license, or other transfer of any such right, title, or interest whatsoever to the Receiving --- ![Slide 3]() > **Source slide transcript** > > 3 Party. Other than the limited rights hereunder, the Receiving Party has no other rights in or to any Disclosing Party’s Confidential Information. 4.2 Definition of Confidential Information. The term “Confidential Information” means any and all of the Disclosing Party’s confidential or proprietary non-public information or data, whether in electronic or hard copy format, that is collected, generated, developed, or used in its business or operations. Confidential Information includes: (1) nonpublic information or data related to actual or potential employees, clients or suppliers including agreement terms and conditions and lists; (2) Intellectual Property (as defined below); (3) products or services currently provided or to be developed, including any market research, forecasts or surveys, plans, specifications, documentation, quality guidelines, and analyses of strengths or weaknesses; (4) marketing and sales information, such as techniques and data, product development and delivery schedules and methods and logistical requirements, strategic planning, marketing and advertising plans and budget; (5) technical and technological information, including computer software and related documentation, license terms, designs, formulas and algorithms, hardware and systems design, specifications, dataflow, networks, physical and systems environments, troubleshooting guidelines, test and audit results, data and databases, interfaces, performance characteristics and reports; (6) financial information, including, financial statements, revenue, income, overhead costs, profit margins, banking and financing data, budgeting data and reports, tax information and pricing policies; (7) organizational information including, merger, acquisition and expansion plans, facilities and equipment design and location; and (8) the Popular Group’s overall strategies and specific programs,, and the success or lack of success of those programs and strategies. To the extent applicable to the Services, Confidential Information includes the Popular Group’s clients’ statutorily protected non-public personal information or data (“Personal Data”) as defined in applicable Law and this Agreement. Confidential Information does not include information that the Receiving Party can reasonably demonstrate: (1) was already known to or was rightfully in the possession of the Receiving Party at the time of disclosure; (2) becomes a matter of public knowledge other than as a result of a breach of any obligation of confidentiality hereunder or under any confidentiality agreement that the Receiving Party may have with a third-party; (3) was independently developed by the Receiving Party without reference to any Confidential Information of the Disclosing Party; (4) was lawfully received from a third-party without a duty of confidentiality; or (5) was approved for release by the Disclosing Party in writing. Notwithstanding this exception, the Popular Group’s Intellectual Property and Personal Data will always be considered Confidential Information. 4.3 Confidential Information Use and Disclosure. (A) Notwithstanding anything herein to the contrary, this Agreement shall not limit the Receiving Party’s rights under applicable law to initiate communications directly with, provide information to, respond to any inquiries from, or report possible violations of law or regulation to any governmental entity or self-regulatory authority, or to file a charge with or participate in an investigation conducted by any governmental entity or self-regulatory authority, and the Receiving Party does not need the Disclosing Party’s permission to do so. In addition, it is understood that this Agreement shall not require the Receiving Party to notify the Disclosing --- ![Slide 4]() > **Source slide transcript** > > 4 Party of a request for information from any governmental entity or self-regulatory authority that is not directed to the Disclosing Party or of the Receiving Party’s decision to file a charge or complaint with or participate in an investigation conducted by any governmental entity or self-regulatory authority. Notwithstanding the foregoing, the Receiving Party recognizes that, in connection with any disclosure by the Receiving Party of any of the Disclosing Party’s Confidential Information in order to comply with applicable Law, or with a valid order issued by a court or governmental agency of competent jurisdiction, the Receiving Party must inform such court or governmental agency that the information the Receiving Party is providing is confidential. Nothing herein shall require either Party to fail to honor a subpoena, court or administrative order or a similar requirement or request on a timely basis. If Confidential Information includes materials subject to the attorney-client privilege, work product doctrine or any other applicable privilege concerning pending or reasonably foreseeable legal proceedings or governmental investigations, the sharing of such material is not intended to, and shall not, waive or diminish in any way the confidential nature of the information or its continued protection under the attorney-client privilege, work product doctrine or other applicable privilege. (B) The Consultant shall not, without Popular’s prior written consent: (i) use, reproduce, sell, market, disseminate, modify or disclose, reverse engineer, translate, discover the source code or trade secrets, render anonymous, aggregate, segregate or mine any Confidential Information for any purpose other than to perform the obligations for which the Confidential Information is being disclosed; (ii) disclose the Confidential Information; (iii) use, access, disclose, process, transmit, share or store Confidential Information outside of the jurisdiction of the United States; or (vi) remove any proprietary rights or confidentiality legend from the Confidential Information. 4.4 Confidential Supervisory Information. Consultant agrees that he will (i) not disclose Confidential Supervisory Information (“CSI”) to any person or entity without the prior written approval of Popular and the pertinent banking regulatory agency and (ii) not use the CSI for any purpose other than as necessary to provide the Services under this Agreement. “Confidential Supervisory Information” or “CSI” means nonpublic information that is by law or regulation exempt from disclosure and that is or was created or obtained in furtherance of a banking regulatory agency’s supervisory, investigatory or enforcement activities relating to a supervised financial institution, together with any information derived from or related to such information. Confidential Supervisory Information is confidential and privileged and remains at all times the property of the pertinent banking regulatory agency. 4.5 Protection of Confidential Information. The Consultant agrees to implement and maintain updated during the Term, controls necessary and appropriate for the Consultant in order to protect the Popular Group’s Confidential Information against anticipated threats or hazards or unauthorized access to or use thereof. If the Consultant discovers he has suffered an unauthorized access, disclosure, loss or use of the Popular Group’s Confidential Information, he will promptly notify the incident to Popular and will take all reasonable --- ![Slide 5]() > **Source slide transcript** > > 5 steps to immediately mitigate, remedy and prevent any further disclosure and assist the Popular Group in any investigation regarding the incident, all at his expense. 4.6 Destruction. Upon Popular’s request, the Consultant shall promptly return or destroy all copies of the Popular Group’s Confidential Information, whether in physical or digital formats, and derivatives and metadata related thereto including copies embedded in computer files, extracts from computer files and analyses or other material based upon the Confidential Information. Should Popular request evidence of the destruction of any such Confidential Information, the Consultant shall submit, within thirty (30) calendar days of such request (or such other time as agreed to between the Parties), an attestation executed by the Consultant certifying that any such Confidential Information has been destroyed. 5. COMPLIANCE AND AUDIT 5.1 Compliance Requirements. (A) Legal Requirements in General. Consultant will provide the Services and comply with his obligations under the Agreement in a professional manner and in accordance with industry best practices and in compliance with applicable federal, state, local, and foreign law, rule, regulation, administrative determinations, and guidance, as well as the judgments and orders issued by competent government authorities thereunder (“Laws”), and professional code of conduct. (B) OFAC. Consultant represents and warrants that: (a) he complies, and shall at all times during the Term continue to comply, with the regulations of the U.S. Treasury Department Office of Foreign Assets Control (“OFAC”) and any statute, executive order, or rule relating thereto, as well as any similar laws of a relevant jurisdiction that may be applicable to the Consultant; (b) he or persons acting on Consultant’s behalf do not, and shall not during the term of the Agreement, appear on OFAC’s Specially Designated Nationals and Blocked Persons List (“SDN List”), Foreign Sanctions Evaders List, or the Sectoral Sanctions Identification List (“SSI List”), or on any other similar list maintained by OFAC or any other governmental authority; (c) he is not located in any country or territory that is the subject to the broad U.S sanctions prohibitions; and (d) Consultant, is not as of the Effective Date, the subject of any investigation relating to a sanctions violation or a potential sanctions violation and if any is found in the future to be in such a violation, he will promptly inform Popular, to the extent not prohibited by Law. (C) Anti-Bribery/Anti-Corruption. 1) Consultant acknowledges and agrees that he complies and during the Term will continue to comply, with all applicable anti-bribery and anti-corruption Laws, including, but not limited to, the Foreign Corrupt Practices Act (15 USC §dd-1, et. seq.) (“ABC Laws”). To this effect, Consultant agrees that, while performing the Services or purporting to act on behalf of the Popular Group, Consultant will not: (1) make, offer, promise or authorize the payment of anything of value (including, but not limited to, unlawful gifts, bribes, meals, entertainment, kickbacks or --- ![Slide 6]() > **Source slide transcript** > > 6 benefits), either directly or through a third-party, to any official or employee of any local, U.S. or foreign government authority, organization or instrumentality thereof, or to any political party or official thereof or to any candidate for political office (a “Public Official”) for any purpose that violates applicable ABC Laws, in order to: (i) influence any act or decision of such Public Official, including a decision to do or omit to do any act in violation of his lawful duties or proper performance of functions; (ii) induce such Public Official to use its authority or position with any government entity or with any other person or entity, to influence any governmental act or decision; (iii) obtain or retain business for, direct business towards, or secure an improper advantage for, the Popular Group; or (iv) perform any act or make any decision that is otherwise prohibited by applicable law; or (2) solicit or accept anything of value in connection with the performance of any service or activity for or on behalf of the Popular Group. Furthermore, unless specifically requested, Consultant agrees not to, directly or through an intermediary: (1) contact any federal, state, local or foreign regulatory body or Public Official regarding any matter or issue in connection with the Services for the Popular Group; (2) engage in lobbying efforts on behalf of the Popular Group, or (3) make payments to a Public Official on behalf of the Popular Group solely to expedite or secure the performance of routine, non-discretionary government actions to which the Popular Group is already entitled (“facilitating payments”). 2) Consultant represents that, to the best of Consultant’s knowledge, he does not have a close association based on a family, romantic or friendship relationship (“personal relationship”) with a Public Official who may need to actor omit to act directly or indirectly as part of its lawful duties, in relation to any part of the Services Consultant renders for the Popular Group. 3) Consultant agrees to report in writing to Popular any known or suspected violations of applicable ABC Laws or the terms of this Section that occur in connection with Consultant’s performance of the Services, including if he identifies that any unlawful payment has occurred in violation of the above or if he receives a request or solicitation for any such payment. 5.2 Code of Ethics. Consultant represents that he has read, and shall comply with, the Code of Ethics for Popular Suppliers, as may be amended from time to time, a copy of which is located at https://investor.popular.comiengicorporate-governanceidefault.aspx or such other site identified by Popular. 5.3 Monitoring and Audit Rights. (A) Consultant acknowledges that the Popular Group, its internal or external auditors and its regulators may perform audits, assessments, examinations, or reviews of Consultant’s Services (“Audit”) in order to confirm compliance with the Agreement, as well as with Laws and industry standards. Upon Popular’s written request, at a time, frequency and place reasonably agreed to between the Parties, Consultant shall submit the information, provide periodic reports (including those of internal controls, systems, financial condition or compliance), respond to risk --- ![Slide 7]() > **Source slide transcript** > > 7 questionnaires or allow access to relevant systems, documents or physical premises in a timely manner so as to permit the Popular Group to comply with the Audit. If an Audit reveals areas of material concern to Popular, the Parties will agree on a plan to address the deficiency in an adequate and timely manner. If Consultant does not address such material deficiencies in accordance with the plan, Popular may modify the frequency of the monitoring activities at Consultant’s expense or terminate the Agreement for cause. 6. INTELLECTUAL PROPERTY 6.1 Ownership. Each Party acknowledges that the other Party owns the intellectual property associated with or related to the other Party and, in the case of Popular, its affiliates, and their respective businesses, products and services including copyrights, patents, patent disclosures and inventions (whether patentable or not), trademarks, service marks, trade secrets, know-how, and other confidential information, trade dress, trade names, logos, corporate names and domain names, together with all of the goodwill associated therewith, and derivative works in whatever medium whether or not registered, and all related rights therein (“Intellectual Property”). Each Party further acknowledges that it receives no right, title to or interest in or to any of the other Party’s Intellectual Property other than as provided under the Agreement. 6.2 Popular Ownership of Work Product. Unless otherwise explicitly agreed to in writing by the Parties, Popular is and will be the sole and exclusive owner of all right, title and interest throughout the world in and to all deliverables that are the results and proceeds of the Services performed under the Agreement, whether developed singly or jointly with any other person or entity, for or on behalf of the Popular Group (“Work Product”). The Work Product includes, without limitation, all works of authorship, data, materials or information gathered, originated, developed, processed or obtained, and all program codes or documentation together with any associated copyrights. Consultant agrees that all Work Product will be deemed “work for hire” as defined by Law for Popular and all copyrights therein automatically and immediately vest in Popular. If for any reason Work Product does not constitute work for hire, Consultant irrevocably assigns (and will perform all acts necessary to make such assignment) to Popular, for no additional consideration, the entire right, title, and interest throughout the world in and to such Work Product. 7. LIABILITY; INDEMNIFICATION 7.1 Indemnity. Each Party shall indemnify, hold harmless, and defend the other Party and each of its affiliates and their respective officers, directors, employees, agents, successors, and assigns (collectively, “Indemnitees”) against losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses, including professional fees and reasonable attorneys’ fees (collectively, “Losses”), related or incidental to, or arising out of: (i) the actual or alleged violation of Laws; (ii) actual or alleged act, failure to act or omission, constituting fraud, negligence or willful misconduct relating to the Services (iii) a third-party claim, suit, or proceeding arising out of, related to, or alleging infringement of intellectual property right by the Work Product or any Intellectual Property used to provide the Services or made available to the --- ![Slide 8]() > **Source slide transcript** > > 8 Popular Group as part of the Services; or (iv) claims alleging injury or damage to persons or property caused by Consultant during the provision of his Services. The indemnification obligations shall survive the termination of the Agreement. 7.2 Limitation of Liability. NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES INCLUDING LOSS OF PROFITS, REVENUE, BUSINESS OR SAVINGS, WHETHER IN AN ACTION IN CONTRACT OR TORT, EVEN IF SUCH DAMAGES ARE POSSIBLE OR FORESEEABLE. LIABILITY FOR GENERAL CLAIMS FOR BREACH OF CONTRACT WILL BE LIMITED TO AN AMOUNT EQUIVALENT TO THE FEES FOR SERVICES PAID OR PAYABLE BY POPULAR TO CONSULTANT DURING THE TWENTY-FOUR MONTHS PRIOR TO THE DATE OF THE CLAIM. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, THE LIMITATIONS SET FORTH IN THIS SECTION SHALL NOT APPLY IN THE EVENT OF EITHER PARTY’S GROSS NEGLIGENCE, WILLFUL MISCONDUCT, FRAUD, VIOLATION OF LAW (INCLUDING THOSE RELATED TO PRIVACY AND DATA PROTECTION), OR THIRD-PARTY CLAIMS FOR INTELLECTUAL PROPERTY INFRINGEMENT. 8. RESTRICTIVE COVENANTS 8.1 Non-Compete. During the Term, Consultant agrees that he will not work or associate (including as a director, officer, employee, partner, consultant, agent or advisor) with or otherwise provide services to, or operate, manage or control in any way, a Competitive Enterprise performing the same or similar duties as those which were performed by him during the 12-month period immediately preceding the Effective Date. “Competitive Enterprise” means any business enterprise that either (1) engages in commercial or consumer financial services, retail banking, internet banking, or other financial, investment, financial advisor, trust or insurance services to either commercial or consumer customers in the Commonwealth of Puerto Rico or the States of New York or Florida, or (2) holds a 5% or greater equity, voting or profit participation interest in any enterprise that engages in such a competitive activity within the Commonwealth of Puerto Rico or the States of New York or Florida. 8.2 Non-Solicitation of Customers. During the Term, Consultant agrees that he will not, directly or indirectly or through associates, agents, or employees solicit, participate in or assist in the solicitation of any of the Popular Group’s customers serviced by him or with whom he had Material Contact and/or regarding whom he received Confidential Information (as defined in Popular’s Code of Ethics) during the three-year period prior to Effective Date who were still customers of the Popular Group during the immediately preceding 12-month period, for the purpose of providing products or services in competition with the Popular Group’s products or services. “Material Contact” means interaction between Consultant and the customer within the three-years prior to the Effective Date which takes place to manage, service or further the business relationship. 8.3 Non-Solicitation of Popular Employees. During the Term, Consultant agrees that he will not, directly or indirectly or through associates, agents, or employees solicit, recruit or --- ![Slide 9]() > **Source slide transcript** > > 9 assist in the solicitation or recruitment of any employee or consultant of the Popular Group (or who was an employee or consultant of the Popular Group within the prior six months of the Effective Date) for the purpose of encouraging them to leave the Popular Group’s employ or sever an agreement for services. 8.4 Definition. The term “solicit”, when used in this section, will mean any direct or indirect communication of any kind regardless of who initiates it, that in any way invites, advises, encourages or requests any person to take any action; provided that such term will not be deemed to include solicitation by public advertisement media of general distribution (i.e., not targeted to present employees, consultants or customers of the Popular Group) without specific instruction or direction by Consultant. 9. GENERAL TERMS 9.1 Additional Representations and Warranties. Each Party represents and warrants to the other Party that (a) the Agreement will not violate the terms of any other agreement or contract to which such Party is bound nor require any third-party consent or approval; and (b) the Agreement constitutes a valid and binding obligation of such Party, enforceable against it in accordance with its terms except to the extent that enforceability may be limited by bankruptcy, insolvency, receivership, moratorium, reorganization or other similar laws affecting the enforcement of creditors’ rights generally or general principles of equity or considerations of public policy. 9.2 No Waiver. The failure or delay by a Party to require performance of the other Party of any provision of the Agreement shall not affect the right of such Party to enforce the same provision, nor shall the waiver by either Party of any breach of any provision hereof be taken or held to be a waiver of any succeeding breach of such provision, or as a waiver of the provision itself. The Parties may exercise any right or remedy in order to enforce the terms and conditions of the Agreement. 9.3 Notice. All notices or communication required hereunder must be made in writing to the corresponding Party’s contact and address. Legal notices (including claims, breach of contract, indemnification requests, and regulatory compliance issues) from Consultant to Popular must be sent by messenger with acknowledgement of receipt, certified mail or national courier. Any changes or additions to the above contact information must be notified in writing with receipt acknowledged. Notification to the Party’s contact of record shall be presumed correct. 9.4 Severability. Should a court or arbiter with competent jurisdiction determine that any clause is illegal, invalid, or unenforceable under present or future law, such provision will be fully severable, and the remaining provisions of the Agreement will remain in full force and effect. 9.5 Governing Law and Jurisdiction. The Agreement and all transactions contemplated therein will be governed by, and construed and enforced in accordance with, the laws of the Commonwealth of Puerto Rico, without regard to any conflicts of law provisions thereof. Any civil action or legal proceeding arising out of or relating to the Agreement will be --- ![Slide 10]() > **Source slide transcript** > > 10 brought exclusively in the courts of the Commonwealth of Puerto Rico. Each Party consents to the jurisdiction of such court in any such civil action or legal proceeding and waives any objection to the venue of any such civil action or legal proceeding in such court. EACH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS OR DUTIES UNDER THIS AGREEMENT. 9.6 Assignment. Popular may assign, whether voluntarily or involuntarily, by operation of law or otherwise, the Agreement or any rights or obligations under the Agreement to any subsidiary or affiliate without providing prior written notice to Consultant. Consultant may not assign, whether voluntarily or involuntarily, by operation of law or otherwise his rights and obligations under the Agreement without Popular’s prior written consent, which consent may be withheld at Popular’s convenience which may include following its vendor management procedures prior to allowing the assignee to provide the Services. 9.7 Entire Agreement and Amendments. The Agreement and any Annex, Schedule, appendix, exhibit, certificate, amendment or other document subsequently attached hereto will be incorporated and made a part hereof as if fully set forth herein and will be subject to the terms and conditions hereof and together with the Agreement will constitute the entire contract between the Parties, and supersedes all prior or contemporaneous agreements or understandings, written or oral, concerning the subject matter of the Agreement. The Agreement may not be modified, amended or supplemented in any manner except by mutual agreement of the Parties and set forth in a writing signed by a duly authorized representative of each Party. 9.8 No Third-Party Beneficiaries. The Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns and, unless otherwise agreed to by the Parties, nothing herein, express or implied, is intended to or shall confer upon any other person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of the Agreement. 9.9 EACH PARTY ACKNOWLEDGES THAT, BEFORE EXECUTING THIS AGREEMENT, SUCH PARTY HAS HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL (WHETHER OR NOT IT ACTUALLY ELECTED TO DO SO), AND HAS READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT SHALL NOT BE CONSTRUED AGAINST ANY PARTY BY REASON OF THE DRAFTING OR PREPARATION HEREOF. 9.10 Counterparts. The Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which taken together will constitute one and the same instrument. Signatures to the Agreement transmitted by electronic mail in .pdf form, or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing the original signature. The Parties may sign the Agreement using DocuSign, or any other electronic signature application. --- ![Slide 11]() > **Source slide transcript** > > 11 9.11 Electronic Signature. Each Party represents that if the Agreement is executed with an electronic signature application, the electronic signatures are the same as handwritten signatures for the purposes of validity, enforceability, and admissibility and will not dispute the legally binding nature thereof on the basis that the terms were accepted with an electronic signature. Furthermore, the Parties agree they shall (a) comply with all applicable electronic records and signatures laws, including but not limited to the Electronic Signatures in Global and National Commerce Act; and (b) ensure that their respective electronic signatures vendor has the necessary processes and controls to comply with the confidentiality obligations of the Agreement. Signature Page Follows --- ![Slide 12]() > **Source slide transcript** > > 12 IN WITNESS WHEREOF, the Parties have executed this Agreement on July 22, 2026. Popular, Inc. Consultant /s/ Manuel Chinea _______________ /s/ Javier D. Ferrer Name: Manuel Chinea Name: Javier D. Ferrer Title: Executive Vice President and Chief Experience & Administration Services Officer --- --- ## EX-31.1 SEC source: [exhibit311.htm](https://www.sec.gov/Archives/edgar/data/763901/000076390126000019/exhibit311.htm) ![Slide 1]() > **Source slide transcript** > > CERTIFICATION EXHIBIT 31.1 I, Javier D. Ferrer, certify that: 1. I have reviewed this report on Form 10-Q of Popular, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. Date: August 7, 2026 By: /s/ Javier D. Ferrer Javier D. Ferrer President and Chief Executive Officer --- --- ## EX-31.2 SEC source: [exhibit312.htm](https://www.sec.gov/Archives/edgar/data/763901/000076390126000019/exhibit312.htm) ![Slide 1]() > **Source slide transcript** > > CERTIFICATION EXHIBIT 31.2 I, Jorge J. Garcia, certify that: 1. I have reviewed this report on Form 10-Q of Popular, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. Date: August 7, 2026 By: /s/ Jorge J. García Jorge J. García Chief Financial Officer --- --- ## EX-32.1 SEC source: [exhibit321-digital.htm](https://www.sec.gov/Archives/edgar/data/763901/000076390126000019/exhibit321-digital.htm) ![Slide 1]() > **Source slide transcript** > > EXHIBIT 32.1 CERTIFICATION PURSUANT TO 18 U.S.C. Section 1350 Pursuant to 18 U.S.C. Section 1350, the undersigned officer of Popular, Inc. (the "Company"), hereby certifies that the Company's Report on Form 10-Q for the quarter ended June 30, 2026 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Dated: August 7, 2026 By: /s/ Javier D. Ferrer Name: Javier D. Ferrer Title: President and Chief Executive Officer A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. --- --- ## EX-32.2 SEC source: [exhibit322-digital.htm](https://www.sec.gov/Archives/edgar/data/763901/000076390126000019/exhibit322-digital.htm) ![Slide 1]() > **Source slide transcript** > > EXHIBIT 32.2 CERTIFICATION PURSUANT TO 18 U.S.C. Section 1350 Pursuant to 18 U.S.C. Section 1350, the undersigned officer of Popular, Inc. (the "Company"), hereby certifies that the Company's Report on Form 10-Q for the quarter ended June 30, 2026 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Dated: August 7, 2026 By: /s/ Jorge J. García Name: Jorge J. García Title: Chief Financial Officer A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. ---