POPULAR, INC.
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 9, 2026
BPOP$157.78+0.8%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0000763901-26-000019
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0000763901-26-000025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 864 previous paragraphs and 882 current paragraphs.
334 unchanged; 328 reworded; 208 added; 188 removed; 14 previous and 12 current paragraphs rearranged.
Tables are not compared: 32 previous and 32 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (208)
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Q, readers should consider.
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interest income and higher non-interest income, partially offset by higher provision for credit losses and operating expenses.
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•Net interest income amounted to$699 million, an increase of$52 million when compared to the quarter ended September 30,
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•Non-interest income amounted to$176 million, an increase of$4 million when compared to the quarter ended September 30,
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2025, mainly driven by higher other service fees resulting from higher debit card activity and credit card transaction volumes and
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higher asset management fees associated with growth in assets under management. In addition, mortgage banking revenues
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benefited from a favorable mortgage servicing rights ("MSR") valuation adjustment and lower portfolio runoff.
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ended September 30, 2025. The increase was mainly driven by higher salaries resulting from annual merit increases, incentives
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and profit sharing. Higher other operating expenses, net occupancy expense and an increase in technology and software
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well as balance sheet information as of September 30, 2026 and December 31, 2025.
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reporting measures with similar names.
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2026 was$801 million, an increase of$81 million when compared to the same period in 2025.
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public deposits and the repricing of interest-bearing deposits in Popular U.S. Total cost of deposits decreased 15 basis points to 1.64%
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the same quarter in 2025.
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•higher income from investment securities by $57 million or 40 basis points mainly due to higher average balances of U.S.
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Treasury securities, at higher yields, resulting from higher deposit balances and the reinvesting of maturities in higher-yielding
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investment securities;
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commercial, mortgage and personal loan portfolio along with higher loan yields, which increased byseven basis points to 7.56%;
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and
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repricing continued to reflect lower short-term market rates prevailing earlier in the year, coupled with lower deposit costs in
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market rates which declined in late 2025.
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NII for thenine months ended September 30, 2026 was$2.1 billion, an increase of$179 million when compared to the same period in 2025.
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NII on a taxable equivalent basis (“FTE”) of$2.3 billion, increased$266 million when compared with the same period of 2025.
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nine months ended September 30, 2025 were:
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yields driven by the mortgage, auto and commercial portfolios;
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purchases and reinvestments, mainly in higher yielding U.S. Treasury notes; and
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Nine month period ended September 30,
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unfunded commitments of$97 million, anincrease of$22 million when compared to the same quarter of the previous year.
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•In the BPPR segment, the provision for loan losses was$99 million, anincrease of$27 million, mainly driven by the commercial
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portfolio, partially offset by a decrease in the mortgage, consumer, and construction loan portfolios. The increase was mainly
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attributable to specific reserves related to two commercial & industrial ("C&I") relationships totaling $71 million, compared to the
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impact of $31 million provision for a specific reserve related to a single C&I relationship during the same quarter in 2025. This
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was partially offset by lower reserve requirements in the auto and personal loan portfolios due to improved portfolio credit
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The decrease in the construction portfolio was primarily driven by lower reserve requirements due to changes in macroeconomic
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variables.
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•In the Popular U.S. segment, there was a release of$3 million for the quarter ended September 30, 2026, a positive variance of
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$4 million when compared with the same quarter in the previous year, mainly driven by lower provision expense in both the
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commercial and consumer loan segments by $3 million and $1 million, respectively. The decrease in reserve needs for the
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consumer portfolio were driven by improvements in the credit quality of the portfolio and the decrease in reserve needs for the
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commercial portfolio were mainly attributed to reductions in the Commercial Real Estate ("CRE") portfolio, following the
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SIGNIFICANT EVENTS
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Capital Actions
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On July 23, 2026, the Corporation announced the following capital actions:
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payable in the fourth quarter of 2026, subject to the approval of the Corporation’s Board of Directors; and
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•a new common stock repurchase authorization of up to $1 billion.
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The Corporation’s planned common stock repurchases may be executed in open market transactions, privately negotiated transactions,
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block trades or any other manner determined by the Corporation. The Corporation has repurchased approximately $280 million in common
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stock to date in 2026 and, as of June 30, 2026, had fully utilized the $500 million common stock repurchase authorization approved in 2025.
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The timing, quantity and price of the Corporation's common stock repurchases will be subject to various factors, including market conditions,
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the Corporation’s capital position, liquidity and financial performance, the capital impact of strategic initiatives and tax and regulatory
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considerations, including regulatory approvals for subsidiary dividends. The common stock repurchase authorization does not require the
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Corporation to acquire a specific dollar amount or number of shares and may be modified, suspended or terminated at any time without prior
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notice.
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higher non-interest income, and lower operating expenses partially offset by an increase in the provision for credit losses.
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•Net interest income amounted to$693.4 million, an increase of$61.9 million when compared to the quarter ended June 30, 2025
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public deposits, partially offset by lower money market investments. Net interest income on a taxable equivalent basis for the
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associated with the unreserved portion of a $155 million nonperforming loan held-in-portfolio ("NPL") transferred to loans held-for-
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sale ("LHFS") with a resulting $71 million charge-off and specific reserves related to two commercial and industrial relationships
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totaling $129 million that were classified as NPLs during the quarter, partially offset by lower provisions for certain consumer loan
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portfolios attributable to improved credit metrics, improved macroeconomic assumptions, net recoveries in the mortgage portfolio
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and lower volumes in the auto loan portfolio. Provision for credit losses decreased at PB primarily due to the higher qualitative
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reserves established during the second quarter of 2025, compared to 2026, to maintain adequate ACL coverage as well as an
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overall improvement in credit quality.
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•Non-interest income amounted to$180.5 million, an increase of$12.1 million when compared to the quarter ended June 30,
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2025, mainly driven by higher credit and debit card fee income driven by higher activity and purchase volumes including those of
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commercial credit cards that benefited from the recent launch of new corporate-focused products.
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quarter ended June 30, 2025. The decrease was mainly driven by lower operational loss reserves and lower professional services
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higher business promotion expenses.
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preferential tax rates.
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interest-bearing liabilities.
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2026 and December 31, 2025.
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2026 was$788.8 million, an increase of$91.6 million when compared to the same period in 2025.
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portfolios, along with higher yields from auto, leases and mortgage portfolios. When compared to the second quarter of 2025,
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loan yields increased three basis points to 7.53%;
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•higher income from U.S. Treasury securities of $52.9 million, or 43 basis points, attributable to higher average balances from
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purchases and reinvestments in higher-yielding U.S. Treasury securities, including $2.5 billion of U.S. Treasury Notes ("U.S. T-
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Notes") purchased in the third quarter of 2025 and $1.1 billion U.S. T-Notes purchased in the second quarter of 2026; and
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a decrease in Popular U.S. deposit costs attributable to repricing across most deposit products;
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short-term market rates during late 2025.
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NII for thesix months ended June 30, 2026 was$1.4 billion, an increase of$126.5 million when compared to the same period in 2025. The
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insurance services through specialized subsidiaries. In the U.S. mainland, the Corporation provides retail, mortgage and commercial
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insurance services through specialized subsidiaries. In the U.S. mainland, the Corporation provides retail and commercial banking services,
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banking services, as well as equipment leasing and financing, through its New York-chartered banking subsidiary, Popular Bank (“PB" or
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as well as equipment leasing and financing, through its New York-chartered banking subsidiary, Popular Bank (“PB" or “Popular U.S."),
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“Popular U.S."), which has branches located in New York, New Jersey and Florida. Note 26 to the Consolidated Financial Statements
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which has branches located in New York, New Jersey and Florida. Note 26 to the Consolidated Financial Statements presents information
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presents information about the Corporation’s business segments.
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about the Corporation’s business segments.
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The description of the Corporation’s business contained in Item 1 of the 2025 Form 10-K, while not all inclusive, discusses additional
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The description of the Corporation’s business contained in Item 1 of the 2025 Annual Report on Form 10-K, while not all inclusive, discusses
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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
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additional information about the business of the Corporation. Readers should also refer to “Part I - Item 1A" of the 2025 Annual Report on
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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
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Form 10-K and “Part II - Item 1A" of this Quarterly Report on Form 10-Q for a discussion of certain risks and uncertainties to which the
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control that, in addition to the other information in this Form 10-Q, readers should consider.
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Corporation is subject, many beyond the Corporation’s control that, in addition to the other information in this Quarterly Report on Form 10-
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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
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The Corporation’s net income for the quarter ended September 30, 2026 amounted to$242 million, an increase of$31 million when
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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,
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compared to net income of$211 million for the quarter ended September 30, 2025. Higher net income was mainly driven by higher net
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driven by higher investments in U.S. Treasury securities at higher yields, loan growth and lower cost of deposits, mainly P.R.
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2025 driven by higher investments in U.S. Treasury securities at higher yields, loan growth and lower cost of deposits, mainly P.R.
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interest margin expanded by 32 basis points to 4.17% when compared to the same period in 2025.
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$81 million when compared to the same quarter for 2025. Net interest margin expanded by 12 basis points to 3.63% when
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margin expanded by 17 basis points to 3.66% when compared to the same period in 2025. On a taxable equivalent basis, net
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compared to the same period in 2025, while a taxable equivalent basis net interest margin expanded by 26 basis points to 4.16%.
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•The provision for credit losses amounted to$65.5 million for the quarter ended June 30, 2026, anincrease of$17.1 million when
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•The provision for credit losses amounted to$97 million for the quarter ended September 30, 2026, anincrease of$22 million
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compared to the quarter ended June 30, 2025, driven by higher specific reserves in the BPPR commercial loan portfolio
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when compared to the quarter ended September 30, 2025, primarily driven by higher specific reserves in the commercial
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decrease in provision expense for the consumer and mortgage loan segments driven by improved credit metrics in the consumer
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portfolio, partially offset by lower provision expense in the consumer and mortgage loan portfolios.
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•Operating expenses amounted to$484.1 million for the quarter, reflecting a decrease of$8.6 million when compared to the
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•Operating expenses amounted to$506 million for the quarter, reflecting an increase of$10 million when compared to the quarter
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expense, partially offset by higher technology and software expenses as a result of our continued investment in technology and
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expenses are results of our continued investment in technology andhigher business promotion expenses.
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•Income tax expense of$45.7 million with an effective tax rate (“ETR”) of 14.1% during the quarter ended June 30, 2026,
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•Income tax expense amounted to$30 million with an effective tax rate (“ETR”) of 11.0% during the quarter ended September 30,
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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
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2026, compared to$36 million with an ETR of 14.5% for the quarter ended September 30, 2025.
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•At June 30, 2026, the Corporation’s total assets amounted to$79.0 billion, compared to$75.3 billion at December 31, 2025. The
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•At September 30, 2026, the Corporation’s total assets amounted to$77.7 billion, compared to$75.3 billion at December 31, 2025.
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increase of $3.7 billion was primarily due to an increase in the available-for-sale (“AFS”) securities portfolio, driven by
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The increase of $2.4 billion was primarily due to an increase in the available-for-sale (“AFS”) securities portfolio, driven by
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•Deposits amounted to$70.2 billion at June 30, 2026, an increase of $4.0 billion from December 31, 2025, primarily driven by
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•Deposits amounted to$68.7 billion at September 30, 2026, an increase of$2.5 billion from December 31, 2025, primarily driven
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growth at BPPR, mainly in P.R. public deposits and commercial deposits.
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by growth at BPPR, mainly in P.R. public deposits and commercial deposits.
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•Stockholders’ equity amounted to$6.4 billion at June 30, 2026, compared to$6.2 billion at December 31, 2025. The Corporation
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•Stockholders’ equity amounted to$6.2 billion at September 30, 2026, a decrease of $34 million when compared to December 31,
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and its banking subsidiaries continue to be well capitalized. As of June 30, 2026, the Corporation’s tangible book value per
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The Corporation and its banking subsidiaries continue to be well capitalized. As of September 30, 2026, the Corporation’s
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common share was$87.94, an increase of$5.29 from December 31, 2025. The Common Equity Tier 1 Capital Ratio at June 30,
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tangible book value per common share was$85.92, an increase of$3.27 from December 31, 2025. The Common Equity Tier 1
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2026 was 16.08%, compared to 15.72% at December 31, 2025.
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Capital Ratio at September 30, 2026 was 16.01%, compared to 15.72% at December 31, 2025.
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Refer to Table 1 for selected financial data for the quarters and for the six months ended June 30, 2026 and June 30, 2025.
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Refer to Table 1 for selected financial data for the quarters and for the nine months ended September 30, 2026 and September 30, 2025, as
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[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
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[3] Stockholders' equity for September 30, 2025 excludes certain unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities
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This Form 10-Q contains financial information prepared under accounting principles generally accepted in the United States (“U.S.GAAP")
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This Quarterly Report on Form 10-Q contains financial information prepared under accounting principles generally accepted in the United
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and non-GAAP financial measures. Management uses non-GAAP financial measures when it is determined that these measures provide
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States (“U.S. GAAP") and non-GAAP financial measures. Management uses non-GAAP financial measures when it is determined that these
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meaningful information about the underlying performance of the Corporation’s ongoing operations. Non-GAAP financial measures used by
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measures provide meaningful information about the underlying performance of the Corporation’s ongoing operations. Non-GAAP financial
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the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies.
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measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies.
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There were no non-GAAP adjustments for the quarter and six months ended June 30, 2026.
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There were no non-GAAP adjustments for the quarter and nine months ended September 30, 2026.
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Net interest income, on a taxable equivalent basis, is presented with its different components in Tables 2 and 3 for the quarter and six
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Net interest income and net interest margin, on a taxable equivalent basis, are presented with its different components in Tables 2 and 3 for
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months ended June 30, 2026, as compared with the same period in 2025, segregated by major categories of interest earning assets and
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the quarter and nine months ended September 30, 2026, as compared with the same period in 2025, segregated by major categories of
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information about the Corporation’s return on capital. Unless otherwise indicated, references to “ROTCE” in this Form 10-Q means return on
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information about the Corporation’s return on capital. Unless otherwise indicated, references to “ROTCE” in this Quarterly Report on Form
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average tangible common equity as adjusted to add back unrealized (gains) losses on AFS securities, including those transferred to HTM.
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10-Q means return on average tangible common equity as adjusted to add back unrealized (gains) losses on AFS securities, including
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Tangible common equity, tangible assets and other related measures should not be used in isolation or as a substitute for stockholders'
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those transferred to HTM. Tangible common equity, tangible assets and other related measures should not be used in isolation or as a
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public deposits. Net interest income on a taxable equivalent basis for the third quarter of 2026 was$801 million, an increase of
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transferred from available-for-sale to held-to-maturity
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interest earning assets and interest-bearing liabilities.
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•higher technology and software expenses by $15 million, primarily reflecting increased software cost amortization by $18 million
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products driven by a decline in short-term market rates when compared to the same period in 2025;
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credit losses by business segment; and
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to the Corporation’s debt securities available-for-sale and held-to-maturity.
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security and its conversion timeline to hedge its securitization pipeline.
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under both normal and stressed market conditions.
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can be used to raise funds under these facilities.
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liquidity risks to which the Corporation is subject.
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the categories in which future loan losses may occur.
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second quarter of 2026 was$788.8 million, an increase of$91.6 million when compared to the same quarter for 2025. Net interest
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deposits, mainly P.R. public deposits. Total cost of deposits decreased 21 basis points to 1.57% compared to the second quarter of 2025.
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from available-for-sale to held-to-maturity.
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•higher other operating income by $2.4 million, mainly due to a $6.1 million increase in earnings from an investment accounted for
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(“IRS”) related to late payment penalties on tax withholdings for intercompany distributions previously disclosed in 2024, and a
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cash distribution from the exit of a legacy equity investment.
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Refer to section "Provision for credit losses-Loans held-in-portfolio and unfunded commitments" in this MD&A for more
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•lower income tax expense by $6.4 million due mainly to higher exempt income;
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held-in-portfolio and unfunded commitments" in this MD&A for more discussion over the drivers of the provision for credit losses
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in-portfolio and unfunded commitments" in this MD&A for more discussion over the drivers of the provision for credit losses by
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in short-term market rates; and
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federal assistance and speed at which it is distributed, the use of local funds to cover federal assistance programs during the U.S.
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exceed the minimum requirements for being “well-capitalized" under the Basel III capital rules.
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subsidiaries and proceeds from potential securities offerings. Dividends from banking and non-banking subsidiaries are subject to various