Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at several firms [1] - He is a Professional Engineer and Project Management Professional with degrees in Civil Engineering & Mathematics and a Master's in Engineering focused on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for like-minded investors, fostering community engagement and knowledge sharing [2]

Group 1 - High-yield stocks attract income-focused investors due to their potential for higher dividends compared to normal or low-yielding stocks [1] - The company invests significant resources, including thousands of hours and over $100,000 annually, into researching profitable investment opportunities [2] - The approach has resulted in over 180 five-star reviews from satisfied members who are experiencing benefits [2] Group 2 - The company offers high-yield strategies at a fraction of the cost, aiming to maximize returns for investors [2] - Immediate access to top investment picks is available for new members, highlighting the urgency of joining [1]

Core Viewpoint - Popular, Inc. (BPOP) reported a strong quarterly performance with adjusted earnings per share (EPS) of $2.56, exceeding expectations and showing significant year-over-year growth [1][2]. Financial Performance - The company's net income on a GAAP basis reached $177.5 million, reflecting a 71.9% increase year over year [2]. - Total quarterly revenues amounted to $757.7 million, surpassing the Zacks Consensus Estimate of $756.1 million and increasing by 6% from the previous year [3]. - Net interest income (NII) was reported at $605.6 million, a 10% rise year over year, with the net interest margin expanding by 24 basis points to 3.40% [3]. Income and Expenses - Non-interest income decreased by 7.2% year over year to $152.1 million, primarily due to lower income from mortgage banking activities and losses on equity securities [4]. - Total operating expenses fell by 2.5% year over year to $471 million, driven by reductions in personnel costs and other operating expenses [4]. Loans and Deposits - As of March 31, 2025, total loans held-in-portfolio increased slightly to $37.3 billion, while total deposits rose by 1.4% to $65.8 billion [5]. Credit Quality - The provision for credit losses was $64.1 million, down 11.7% from the prior year, indicating improved credit quality [6]. - Non-performing assets decreased by 15.8% year over year to $366.2 million, with the non-performing assets to total assets ratio improving to 0.49% [6]. Capital Ratios - As of March 31, 2024, the Common Equity Tier 1 capital ratio and Tier 1 capital ratio were 16.11% and 16.16%, respectively, showing a decline from the previous year [7]. Share Repurchase - In the reported quarter, the company repurchased 1,270,569 shares of common stock for a total of $222.3 million [8]. Strategic Outlook - The company is positioned to benefit from its business transformation efforts and modernization of customer channels, with an increase in loans and deposits strengthening its balance sheet [9].

Financial Data and Key Metrics Changes - Net interest income increased by $15 million, and net interest margin expanded by five basis points to 3.4%, primarily due to lower deposit costs [10][18] - Deposit balances grew by $935 million, with both banks contributing to the increase [11][20] - Tangible book value per share increased by nearly $4 to approximately $72, driven by quarterly net income and lower unrealized losses in the investment portfolio [12][30] - Total operating expenses were $471 million, an increase of $3 million compared to the previous quarter [24] Business Line Data and Key Metrics Changes - Loan balances increased by $146 million, primarily driven by the Commercial and Construction segments in Popular Bank [10][19] - Mortgage loan balances at Banco Popular increased by $136 million, driven primarily by home purchase activity [15] - Non-interest income was $152 million, a decrease of $13 million compared to the previous quarter [22] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico was 5.5%, remaining around all-time lows [14] - Combined credit and debit card sales for Banco Popular customers increased by approximately 6% compared to the first quarter of 2024 [15] - Passenger traffic at the San Juan International Airport increased by 11% during the quarter [16] Company Strategy and Development Direction - The company aims to continue its transformation efforts, focusing on strengthening its market-leading omnichannel experience and enhancing payment capabilities [71] - The ongoing disbursement of federal disaster recovery funds is expected to support economic activity in Puerto Rico for several years [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged recent market volatility due to tariff uncertainty but expressed confidence in the company's strong balance sheet and diversified business mix [13] - The company expects net interest income to increase by 7% to 9% this year, anticipating further net interest margin expansion [29] - Credit quality metrics improved during the first quarter, with lower early delinquencies and net charge-offs [32] Other Important Information - The company repurchased $122 million in shares at an average price of approximately $96 per share during the quarter [11][30] - The effective tax rate in the first quarter was 20%, with expectations for the year to be in the range of 19% to 21% [25] Q&A Session Summary Question: What are the implications of macro uncertainty and tariffs on investment in Puerto Rico? - Management noted that while the power grid is a concern, many industries, especially pharmaceuticals, are resilient and have their own power solutions [51][53] Question: Can you provide an update on deposit flows and seasonal growth? - Management indicated that deposit balances are about 35% higher on average compared to pre-pandemic levels, with positive momentum expected to continue [58][61] Question: What is the outlook for loan growth and potential payoffs? - Management acknowledged that while there is a positive outlook for loan growth, elevated payoffs and client uncertainty may temper growth expectations [120][121] Question: How does the company plan to achieve a sustainable 14% return on tangible common equity? - Management emphasized the need for execution across various areas, including deposit growth, expense control, and strategic decisions [136] Question: Will total fee income rebound after the recent decrease? - Management expects total fee income to increase, with guidance set between $155 million to $160 million per quarter for the year [144]

Financial Performance - Net income remained stable at $178 million in Q1 2025 compared to Q4 2024[4] - Net Interest Margin (NIM) increased by 5 bps to 3.40%[4] - Fully Taxable Equivalent (FTE) NIM expanded by 11 bps to 3.73%[4] - Earnings Per Share (EPS) increased to $2.56 from $2.51[4] Balance Sheet - Total deposits increased by $935 million, a 1.4% increase[6, 11] - Excluding P R public deposits, customer deposits increased by $776 million[11] - Loans held in portfolio increased by $146 million to $37,254 million[6] Credit Quality - Non-Performing Loans (NPLs) decreased by $37 million to $314 million[7, 11] - The NPL Ratio improved to 0.84% from 0.95% in Q4[7, 11] - Net Charge-Off (NCO) Ratio decreased to 0.53% from 0.74%[7, 11] Capital Actions - Repurchased $122 million of common stock at an average price of $96 24 per share[11] - Paid quarterly common stock dividend increased 13% to $0 70[11]

Popular (BPOP) Q1 2025 Earnings Call April 23, 2025 11:00 AM ET Company Participants Paul Cardillo - Senior VP & Investor Relations OfficerIgnacio Alvarez - CEOJavier D. Ferrer - President & COOJorge Garcia - Executive VP & CFOLidio Soriano - Executive VP & Chief Risk Officer of Corporate Risk Management GroupFrank Schiraldi - Managing DirectorBen Gerlinger - Vice President of Equity ResearchGerard Cassidy - Managing DirectorTimur Braziler - Director - Mid-Cap Bank Equity ResearchJared Shaw - Managing Direc ...

Core Viewpoint - Popular (BPOP) reported quarterly earnings of $2.56 per share, exceeding the Zacks Consensus Estimate of $2.26 per share, and showing an increase from $1.87 per share a year ago [1] Financial Performance - The earnings surprise for the quarter was 13.27%, with the company previously expected to earn $2.04 per share but actually earning $2.51, resulting in a surprise of 23.04% [2] - Popular's revenues for the quarter ended March 2025 were $757.66 million, surpassing the Zacks Consensus Estimate by 0.21%, and up from $714.56 million year-over-year [3] Stock Performance - Popular shares have declined approximately 4.9% since the beginning of the year, while the S&P 500 has decreased by 10.1% [4] - The current Zacks Rank for Popular is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $2.52 on revenues of $769.18 million, and for the current fiscal year, it is $10.04 on revenues of $3.11 billion [8] - The Zacks Industry Rank for Banks - Southeast is in the top 29% of over 250 Zacks industries, suggesting a favorable outlook for the sector [9]

Financial Performance - Net income for Q1 2025 was $177.5 million, slightly down from $177.8 million in Q4 2024[2] - EPS rose to $2.56 in Q1 2025, compared to $2.51 in Q4 2024[4] - Net income for Q1 2025 was $177.502 million, a slight decrease from $177.817 million in Q4 2024, but a significant increase from $103.283 million in Q1 2024, reflecting a year-over-year growth of 71.8%[63] - The effective tax rate for the first quarter of 2025 was 20.2%, compared to 19.8% for the previous quarter[29] - Return on average common equity improved to 10.07% in Q1 2025, compared to 9.94% in Q4 2024 and 6.07% in Q1 2024[60] - The return on average tangible common equity for the first quarter of 2025 is reported at 11.36%, an increase from 11.22% in the previous quarter[101] Income and Revenue - Net interest income increased to $605.6 million in Q1 2025, up $14.8 million from Q4 2024[4] - Total interest income for Q1 2025 was $916.998 million, a slight decrease of 0.3% from $919.767 million in Q4 2024, but an increase of 2.6% from $894.141 million in Q1 2024[62] - Net interest income after provision for credit losses rose to $541.516 million in Q1 2025, up 3.2% from $524.657 million in Q4 2024 and 13.3% from $478.146 million in Q1 2024[62] - Total non-interest income decreased to $152.1 million in Q1 2025, down from $164.7 million in Q4 2024[4] - Total non-interest income decreased to $152.061 million in Q1 2025, down 7.7% from $164.703 million in Q4 2024, but relatively stable compared to $163.818 million in Q1 2024[62] Assets and Liabilities - Total assets amounted to $74.0 billion at March 31, 2025, an increase of $993.2 million from the previous quarter[45] - Total liabilities increased to $68,238,911 thousand, up by $806,594 thousand from the prior quarter[64] - Total stockholders' equity increased to $5,799,695 thousand from the previous quarter, primarily due to net income of $177.5 million[45] - The total assets of the company reached $74,038,606,000 as of March 31, 2025, up from $73,045,383,000 at the end of 2024[101] Loans and Credit Quality - Loans held in portfolio rose to $37.3 billion, an increase of $146.4 million from Q4 2024[4] - Non-performing loans decreased by $36.7 million, with the NPLs to loans ratio at 0.84%[4] - The provision for loan losses for the first quarter of 2025 was $65.2 million, a decrease from $69.1 million in the previous quarter[39] - Net charge-offs for the quarter were $49.1 million, down $18.3 million from the fourth quarter of 2024, with an annualized NCO ratio of 0.53%[31][42] - Total non-performing assets decreased to $366.2 million as of March 31, 2025, from $408.0 million in the previous quarter[42] - The total current loans amount to $36.113 billion, reflecting a stable loan portfolio[85] - The total loans held-in-portfolio increased to $37.254 billion from $37.107 billion, indicating growth in the loan portfolio[85] Capital and Ratios - Common Equity Tier 1 ratio stood at 16.11% as of March 31, 2025[4] - Tier 1 capital ratio remained strong at 16.16% in Q1 2025, slightly up from 16.08% in Q4 2024[60] - The allowance for credit losses (ACL) as of March 31, 2025, was $762.1 million, an increase of $16.1 million from the previous quarter, resulting in an ACL to loans ratio of 2.05%[36][38] - The allowance for credit losses to loans held-in-portfolio increased to 2.05% from 2.01%[85] Shareholder Actions - Capital actions included the repurchase of 1,270,569 shares for $122.3 million during Q1 2025[4] - The Corporation repurchased 1.3 million shares of common stock at an average price of $96.24 during the first quarter of 2025[47] Market Performance - The market capitalization of Popular, Inc. was $6.372 billion as of March 31, 2025, down from $6.597 billion at the end of Q4 2024[60]

Company Overview - Popular (BPOP) shares increased by 6.5% to $86.91 in the last trading session, following a period of 6.6% loss over the past four weeks, indicating a significant recovery in stock performance [1][2] - The company operates Banco Popular and other banks in Puerto Rico and the U.S., with expected quarterly earnings of $2.26 per share, reflecting a year-over-year growth of 20.9% [3] Earnings and Revenue Expectations - Revenues for the upcoming report are projected to be $756.11 million, which is a 5.8% increase compared to the same quarter last year [3] - The consensus EPS estimate for Popular has been revised 0.8% higher in the last 30 days, suggesting a positive trend that may lead to further price appreciation [5] Market Sentiment and Industry Context - The stock price increase was driven by optimism following President Trump's announcement of a 90-day pause on import tariffs, which alleviated trade tension concerns and boosted investor confidence in the banking sector [2] - Popular is part of the Zacks Banks - Southeast industry, where another stock, Home BancShares (HOMB), also saw a 6.6% increase in its last trading session, although it has returned -9.5% over the past month [5]

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at notable firms [1] - He is a Professional Engineer and Project Management Professional with degrees in Civil Engineering & Mathematics and a Master's in Engineering focused on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in investment strategies [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for investors to share insights and strategies [2]