Financial Data and Key Metrics Changes - The company reported a net income of $211 million and EPS of $3.15, an increase of $1 million and $0.06 per share respectively, driven by higher revenues and an expanding net interest margin [4][10] - Net interest income increased by $15 million to $647 million, with a net interest margin expansion of two basis points on a gap basis [10][14] - The effective tax rate decreased to 14.5% from 18.5% in the previous quarter, influenced by a higher proportion of exempt income [16][71] Business Line Data and Key Metrics Changes - Loan growth was strong at $502 million for the quarter, with contributions from both banks, primarily in commercial and construction lending [10][11] - Non-interest income was $171 million, an increase of $3 million compared to the previous quarter, driven by solid performance across fee-generating segments [14] - Total operating expenses increased by $3 million to $495 million, primarily due to a non-cash goodwill impairment [15] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico remained low at 5.6%, with consumer spending showing resilience and a 5% increase in combined credit and debit card sales [5][6] - Mortgage balances at Banco Popular increased by $129 million, indicating strong home purchase activity [5] - The tourism sector benefited from significant events, contributing to increased economic activity [6][7] Company Strategy and Development Direction - The company’s strategy focuses on being the number one bank for customers, simplifying operations, and achieving a sustainable 14% return on tangible common equity [7][8] - Investments are being made in digital and payment solutions to enhance customer engagement and streamline operations [8][9] - The company is committed to improving cash management and credit delivery for small and mid-sized businesses [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic trends in Puerto Rico, citing a backlog of federal disaster recovery funds and ongoing real estate and tourism projects [6][23] - The company aims to close out 2025 on a high note, focusing on deposit retention and loan generation [23] - Management remains confident in the risk profile of the loan portfolios despite isolated credit events [20][45] Other Important Information - The CET1 ratio was 15.8%, a decrease of 12 basis points due to loan growth and capital actions [17] - The company declared a quarterly common stock dividend of $0.75 per share, an increase from the previous quarter [17] Q&A Session Summary Question: On margin and asset yields - Management indicated that they expect net interest margin to continue expanding despite potential rate cuts, with strong tailwinds from upcoming maturities in the investment portfolio [30][49] Question: On credit trends, especially in auto loans - Management remains optimistic about consumer credit trends, noting that delinquency rates are still lower year-over-year [33][34] Question: On large commercial loans and reserves - Management clarified that the loans in question are current on payments, and the decision to classify them as non-accrual was due to deteriorating circumstances [40][41] Question: On competition in the deposit market - Management acknowledged increased competition but emphasized their commitment to rational pricing and maintaining strong client relationships [74] Question: On underwriting standards amid increased competition - Management confirmed that they maintain rigorous underwriting standards and are not compromising on credit quality despite competitive pressures [78][80]

Financial Data and Key Metrics Changes - The company reported a net income of $211 million and EPS of $3.15, an increase of $1 million and $0.06 per share compared to the previous quarter [4] - Net interest income (NII) was $647 million, up $15 million, driven by higher average deposit balances and fixed-rate asset repricing [10] - The effective tax rate decreased to 14.5% from 18.5% in the previous quarter, influenced by a higher proportion of exempt income [16] Business Line Data and Key Metrics Changes - Loan growth was strong at $502 million for the quarter, with Banco Popular contributing $357 million and Popular Bank contributing $145 million, primarily in commercial and construction lending [10] - Non-interest income increased to $171 million, up $3 million from the previous quarter, driven by robust customer transaction activity [14] - Total operating expenses rose to $495 million, an increase of $3 million, primarily due to a non-cash goodwill impairment [15] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico remained low at 5.6%, with consumer spending showing resilience and a 5% increase in combined credit and debit card sales [5] - Mortgage balances at Banco Popular increased by $129 million, indicating strong home purchase activity [5] - The tourism sector benefited from significant events, contributing to increased economic activity [6][7] Company Strategy and Development Direction - The company aims to be the number one bank for customers by deepening relationships and enhancing digital solutions [7] - The strategic framework focuses on being simple and efficient, while also aiming for a sustainable 14% return on tangible common equity [8] - Ongoing investments in technology and digital capabilities are expected to drive future growth and improve customer experiences [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic trends in Puerto Rico, citing a backlog of federal disaster recovery funds and ongoing real estate projects [6] - The company remains focused on maintaining expense discipline and achieving sustainable returns above 12% [4][23] - Management noted that credit quality metrics were stable, excluding two isolated commercial loan issues [18][20] Other Important Information - The CET1 ratio was 15.8%, a decrease of 12 basis points due to loan growth [17] - The company declared a quarterly common stock dividend of $0.75 per share, an increase from the previous quarter [17] - The allowance for credit losses increased to $786 million, driven by two commercial exposures [21] Q&A Session Summary Question: On margin and asset yields - Management indicated that they expect net interest margin (NIM) to continue expanding despite potential rate cuts, supported by fixed asset repricing [30] Question: On loan yields and credit trends - Management noted that while new loan yields are expected to slow, they remain optimistic about consumer credit trends, particularly in Puerto Rico [33] Question: On large commercial loans and reserves - Management clarified that the large commercial loans in question are still current on payments, and the decision to classify them as non-accrual was based on deteriorating conditions [40] Question: On competition and underwriting standards - Management confirmed that they maintain rigorous underwriting standards despite increased competition in the market [78] Question: On future guidance and tax rates - Management provided clarity on the effective tax rate guidance for 2025, indicating it would be a clean number without significant noise from discrete events [71]

Financial Data and Key Metrics Changes - The company reported net income of $211 million and EPS of $3.15, an increase of $1 million and $0.06 per share respectively, driven by higher revenues and expanding net interest margin [2][3][11] - Net interest income increased by $15 million to $647 million, with net interest margin expanding by two basis points on a GAAP basis [11][12] - Total operating expenses were $495 million, an increase of $3 million compared to the previous quarter, primarily due to a non-cash goodwill impairment [16][17] Business Line Data and Key Metrics Changes - Loan growth was strong, with an increase of $502 million in total loans, driven by commercial and construction lending across both banks [12][13] - Non-interest income was $171 million, an increase of $3 million compared to Q2, benefiting from robust customer transaction activity [15][16] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico remained low at 5.6%, with solid business activity reflected in consumer spending and tourism [4][5] - Combined credit and debit card sales for Banco Popular customers increased by approximately 5% compared to 2024 [5] Company Strategy and Development Direction - The company’s strategic framework focuses on being the number one bank for customers, simplifying operations, and achieving top performance with a long-term goal of a 14% return on capital [8][9] - Recent initiatives include expanding digital capabilities and modernizing branches to enhance customer engagement [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic trends in Puerto Rico, citing strong consumer spending and a healthy construction sector [5][6] - The company aims to maintain sustainable returns above 12% for the year and is focused on deposit retention and loan generation [26][27] Other Important Information - The effective tax rate for Q3 was 14.5%, down from 18.5% in Q2, influenced by a higher proportion of exempt income [18][19] - The company declared a quarterly common stock dividend of $0.75 per share, an increase of $0.05 from Q2, and repurchased approximately $119 million in shares during Q3 [20] Q&A Session Summary Question: Margin and Asset Yields - Management indicated that they expect net interest margin to continue expanding despite potential rate cuts, supported by fixed asset repricing and loan growth [31][32] Question: Credit Trends - Management remains optimistic about consumer credit trends, noting that delinquency rates are still lower year-over-year [35] Question: Large C&I Loan Reserves - Management clarified that the loans in question are current on payments, and the decision to classify them as non-accrual was due to deteriorating business conditions [38][39] Question: Competition and Underwriting Standards - Management confirmed that there has been no relaxation in underwriting standards despite increased competition, emphasizing a conservative approach [80][81]

Financial Data and Key Metrics Changes - The company reported a net income of $211 million and EPS of $3.15, an increase of $1 million and $0.06 per share, respectively, driven by higher revenues and an expanding net interest margin [4][10] - Net interest income increased by $15 million to $647 million, with a net interest margin expansion of two basis points on a gap basis [11][12] - The effective tax rate decreased to 14.5% from 18.5% in the previous quarter, influenced by a higher proportion of exempt income [17][61] Business Line Data and Key Metrics Changes - Loan growth was strong at $502 million, with contributions from both banks, primarily in commercial and construction lending [11][12] - Non-interest income was $171 million, an increase of $3 million compared to the previous quarter, driven by robust customer transaction activity [15] - Total operating expenses increased by $3 million to $495 million, primarily due to a non-cash goodwill impairment [16] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico remained low at 5.6%, with consumer spending resilient and healthy [5][6] - Combined credit and debit card sales for Banco Popular customers increased by approximately 5% compared to the third quarter of 2024 [5] - The construction sector showed solid momentum, supported by public and private investments [6] Company Strategy and Development Direction - The company’s strategy focuses on being the number one bank for customers, simplifying operations, and achieving a sustainable 14% return on tangible common equity [7][9] - Recent initiatives include expanding digital capabilities and modernizing branches to enhance customer engagement [9][10] - The company is committed to improving cash management and credit delivery for small and mid-sized businesses [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic trends in Puerto Rico, citing a backlog of federal disaster recovery funds and new development projects [6][23] - The company aims to close out 2025 on a high note, focusing on deposit retention and loan generation [23] - Management remains confident in the risk profile of the loan portfolios despite recent credit quality concerns related to two large commercial loans [20][40] Other Important Information - The CET1 ratio decreased to 15.8%, primarily due to loan growth and capital actions [18] - The company declared a quarterly common stock dividend of $0.75 per share, an increase from the previous quarter [18] Q&A Session Summary Question: Margin and Asset Yields - Management indicated that they expect net interest margin (NIM) to continue expanding despite potential rate cuts, supported by fixed asset repricing and loan growth [26][27] Question: Credit Trends - Management noted that the increase in delinquency rates is within seasonal variations, and they remain optimistic about the consumer credit outlook [30][31] Question: Large CNI Loan Reserves - The company clarified that the large commercial loan remains current on payments, and the decision to classify it as non-accrual was due to deteriorating circumstances [34][35] Question: Competition in Deposits - Management acknowledged increased competition in the market but emphasized their commitment to rational pricing and maintaining strong client relationships [63][64] Question: Future Guidance on ROCI - Management confirmed that the target of a sustainable 14% ROCI is a guiding principle, with ongoing efforts to improve net income performance [57][59]

Financial Performance - Net income increased by $1 million to $211 million in Q3 2025 compared to Q2 2025[3] - Net interest income increased by $15 million to $647 million in Q3 2025[4, 18] - Earnings per share (EPS) increased by $006 to $315 in Q3 2025[3] - Tangible book value per share increased by $371 to $7912[6] Balance Sheet - Loans held in portfolio grew by $502 million or 13% to $38687 million[3, 4, 62] - Total deposits decreased by $704 million or 11% to $66513 million[3, 4] - Common Equity Tier 1 decreased 12 bps to 1579%[6] Credit Quality - Non-performing loans (NPLs) increased by $190 million to $502 million, with the NPL ratio at 130% versus 082% in Q2 2025[3, 6] - The ACL-NPL ratio decreased to 157% from 247% in Q2 2025[3, 6] - Net charge-offs (NCO) ratio increased to 060% from 045% in Q2 2025[3, 6] Business Segment Performance - BPPR's loans held in portfolio increased by $357 million to $27131 million[7, 9] - Popular US's loans held in portfolio increased by $145 million to $11525 million[7, 9]

Financial Performance - Net income for Q3 2025 was $211.3 million, a slight increase from $210.4 million in Q2 2025[2] - Earnings per share (EPS) rose to $3.15 in Q3 2025, compared to $3.09 in Q2 2025[2] - Non-interest income for Q3 2025 was $171.2 million, an increase from $168.5 million in Q2 2025[2] - Basic EPS for Q3 2025 increased to $3.15 from $3.09 in Q2 2025 and $2.16 in Q3 2024, representing a year-over-year growth of 46%[57] - Net income applicable to common stock for Q3 2025 was $210.96 million, slightly up from $210.09 million in Q2 2025 and significantly higher than $154.97 million in Q3 2024[59] - Market capitalization reached $8.645 billion as of September 30, 2025, compared to $7.487 billion at the end of Q2 2025, reflecting a growth of 15.4%[57] - Return on average common equity for Q3 2025 was 11.60%, compared to 11.77% in Q2 2025 and 8.82% in Q3 2024[57] Income and Expenses - Net interest income increased by $15.0 million to $646.5 million in Q3 2025, with a net interest margin of 3.51%, up from 3.49% in Q2 2025[2] - Operating expenses totaled $495.3 million, up from $492.8 million in Q2 2025[2] - Total operating expenses for Q3 2025 were $495.29 million, a slight increase from $492.76 million in Q2 2025 and $467.32 million in Q3 2024[59] - Total interest income for Q3 2025 was $966.65 million, up 2.43% from Q2 2025 and 3.23% from Q3 2024[59] Loans and Credit Quality - Non-performing loans (NPLs) increased to $190.6 million, raising the NPLs to loans ratio to 1.30% from 0.82% in Q2 2025[2] - Total non-performing loans (NPLs) increased by $190.6 million to $502.2 million, with the NPL ratio rising to 1.30% from 0.82% in the previous quarter[31][38] - The allowance for credit losses (ACL) as of September 30, 2025, was $786.2 million, an increase of $16.7 million from the previous quarter, with an ACL to loans ratio of 2.03%[33][35] - The provision for loan losses for Q3 2025 was $74.5 million, up $25.0 million from $49.5 million in Q2 2025, primarily due to higher provisions for commercial loans[36][39] - The Corporation's net charge-offs (NCOs) for the quarter were $57.8 million, an increase of $15.6 million compared to the previous quarter[31][38] - Total past due loans increased to $91,092 thousand, with $49,021 thousand past due for 90 days or more[75] - Total non-performing loans held-in-portfolio increased to $502,202 thousand, representing 1.3% of loans held-in-portfolio, up from 0.8% in the previous quarter[80] Assets and Liabilities - Total assets amounted to $75.1 billion at September 30, 2025, a decrease of $1.0 billion from the second quarter of 2025[42] - Total liabilities decreased by $1.2 billion from the second quarter of 2025[42] - Stockholders' equity increased by $161.7 million compared to the second quarter of 2025, primarily due to net income of $211.3 million[42] - Total stockholders' equity increased to $6,115,672 thousand as of September 30, 2025, compared to $5,954,018 thousand in the previous quarter[91] Capital Ratios - Common Equity Tier 1 ratio stood at 15.79%, with Tangible Book Value per share increasing to $79.12[2] - The Tier 1 capital ratio stood at 15.84% as of September 30, 2025, compared to 15.96% in Q2 2025 and 16.48% in Q3 2024[57] - The ACL to NPLs ratio decreased to 156.6% from 246.9% in the previous quarter, reflecting the impact of two significant commercial exposures[35] - Tangible common equity to tangible assets ratio improved to 7.13% from 6.81% in the previous quarter[91] Shareholder Actions - The company repurchased 1,000,862 shares for $119.4 million, raising the common stock dividend to $0.75 per share from $0.70[2] - As of September 30, 2025, $429.0 million remained available for stock repurchase under the active repurchase authorization[43] - The company declared dividends of $0.75 per common share for Q3 2025, an increase from $0.70 in Q2 2025 and $0.62 in Q3 2024[59]

Group 1 - Crude Value Insights provides an investment service and community focused on the oil and natural gas sectors, emphasizing cash flow and companies that generate it [1] - The service offers subscribers access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Group 2 - A two-week free trial is available for new subscribers, promoting engagement with oil and gas investment opportunities [2]

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1] - Subscribers have access to a model account with over 50 stocks, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Subscription Offer - A two-week free trial is available for new subscribers, allowing them to explore the oil and gas investment opportunities [2]

Core Insights - Sharpie® is relaunching the Extra Fine Permanent Marker after nearly a decade due to significant consumer demand, including requests from notable figures like Kansas City football coach Andy Reid [2][4][5] - The marker will be available exclusively at Walmart, featuring retro-inspired packaging that honors its heritage [2][4] Product Details - The Sharpie Extra Fine Permanent Marker was originally launched in the 1980s and has been a favorite for over 30 years, known for its clean, bold lines and precision [3][5] - The marker was discontinued to make way for the Ultra Fine Permanent Marker, but consumer demand led to its revival [4] - The markers are priced at $1.97 for a 2-count black pack and $4.87 for a 5-count black and assorted packs [6] Brand and Market Position - Sharpie has a long history, with the first pen-style permanent marker introduced in 1964, and continues to innovate across various writing tools [7] - The Extra Fine tip is designed for exceptional control, delivering crisp lines and intricate details, available in classic colors like Black, Blue, Green, and Red [8] - Sharpie products are made to write on various surfaces, with quick-drying, water-resistant, and fade-resistant ink [9] Company Background - Newell Brands, the parent company of Sharpie, is a leading global consumer goods company with a diverse portfolio of well-known brands [10]

Core Insights - Global equity markets experienced broad positive returns in Q3 2025, driven by resilient corporate earnings, enthusiasm for AI, and the U.S. Federal Reserve's first interest rate cut of the year [3][21] - Emerging markets, particularly China, led the gains, supported by a U.S. trade truce and strength in the tech sector [3][4] - The Polaris Global Equity Composite gained 5.04% (net of fees) for the quarter, underperforming the MSCI World Index, which returned 7.36% [5][6] Market Performance - Developed markets saw weaker currencies benefiting export-oriented indices, with Japan's TOPIX Index up 11.0% and the U.K.'s FTSE All-Share Index up 6.9% [4] - The U.S. market, represented by the S&P 500 Index, gained over 8%, primarily due to tech and communication stocks [4] - France and Germany underperformed due to geopolitical and fiscal concerns, with tepid growth projections under new U.S. trade policy [4] Sector Analysis - The healthcare sector was the best performer, with notable gains from pharmaceutical stocks, while financials, consumer discretionary, and IT also contributed positively [5][6] - Health insurers faced challenges, with UnitedHealth Group and CVS Health posting over 10% returns, while Elevance Health's shares dropped sharply due to profit guidance cuts [7] - In IT, Samsung Electronics excelled with strong performance in HBM technology and a significant deal with Tesla for AI chip manufacturing [11] Company Highlights - United Therapeutics Corp. was a top contributor to portfolio performance, driven by positive clinical trial results for its drug Tyvaso, potentially adding $4-5 billion in peak sales [6] - AbbVie, Inc. expects high single-digit revenue growth through 2029, with flagship drugs projected to exceed $31 billion in sales by 2027 [6] - The Carlyle Group Inc. outperformed in the financial sector, up over 20% due to strong fee-based credit and secondaries business [8] Investment Strategy - The current economic environment is characterized by a "two-speed" economy, with a concentrated AI-driven boom amidst subdued growth in other sectors [21][22] - Financials are seen as attractive due to stable net interest margins and loan growth, while defensives like consumer staples and healthcare are expected to perform well [22] - Opportunities in economically-sensitive sectors are being explored, with a focus on industrials benefiting from AI integration and supply chain modernization [22][23]