Core Viewpoint - Popular, Inc. (BPOP) reported strong second-quarter 2025 adjusted earnings per share (EPS) of $3.09, exceeding expectations and showing growth from the previous year [1][10] Financial Performance - The company's net income on a GAAP basis was $210.4 million, reflecting an 18.4% increase year over year [2] - Total quarterly revenues reached $800 million, a 9% increase from the same quarter last year [3] - Net interest income (NII) was $631.5 million, up 11.1% year over year, with the net interest margin expanding by 27 basis points to 3.49% [3] - Non-interest income increased by 1.3% year over year to $168.5 million, driven by higher service charges and net gains on equity securities [4] Expenses and Provisions - Total operating expenses rose by 4.9% year over year to $492.7 million, primarily due to increased personnel costs and business promotion [4][10] - Provisions for credit losses were $48.9 million, up 4.6% from the prior year [6] Loans and Deposits - Total loans held-in-portfolio increased by 2.5% sequentially to $37.4 billion, while total deposits rose by 2.1% to $67.2 billion [5] Credit Quality - Non-performing assets decreased by 13.1% year over year to $357.7 million, with a non-performing assets to total assets ratio of 0.47% [6] Capital Ratios - As of June 30, 2025, the Common Equity Tier 1 capital ratio and Tier 1 capital ratio were 15.91% and 15.96%, respectively, down from 16.48% and 16.54% in the previous year [7] Share Repurchase - In the reported quarter, the company repurchased 1,136,390 shares of common stock for $112 million [8] Strategic Positioning - The company is positioned to benefit from business transformation efforts and modernization of customer channels, with an increase in loans and deposits strengthening its balance sheet [11]

Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Core Insights - Popular reported strong Q2 2025 earnings, with EPS at $3.09, exceeding the consensus estimate of $2.54, and revenue at $800 million, surpassing the expected $792.79 million [1][2] - The company raised its quarterly dividend and announced a new share repurchase program, indicating a positive outlook [1] Financial Performance - EPS (GAAP) increased by 26.0% year-over-year from $2.46 in Q2 2024 to $3.09 in Q2 2025 [2] - Revenue (GAAP) grew by 8.9% year-over-year from $734.6 million in Q2 2024 to $800 million in Q2 2025 [2] - Net interest income rose to $631.5 million, an 11.1% increase from $568.3 million in the previous year [2] - Net interest margin improved to 3.49%, up from 3.22% a year earlier [2] Business Strategy - Popular focuses on personal and commercial banking, with over half of its loan portfolio tied to real estate in Puerto Rico [3] - The company is investing in technology upgrades and digital transformation to enhance customer experience and operational efficiency [4] Quarterly Highlights - Net income for the quarter reached $210.4 million, a significant increase from the prior quarter [5] - Deposit balances grew to $67.22 billion, reflecting a $1.40 billion increase from the first quarter [6] - Non-performing loans decreased, with the non-performing loan ratio narrowing to 0.82% from 0.96% a year earlier [7] Capital Position - The Common Equity Tier 1 ratio stood at 15.91%, indicating a strong capital position [9] - The company repurchased 1.14 million shares valued at $112 million during the quarter, nearing completion of a $500 million buyback plan [9] Future Outlook - Management did not provide new financial guidance but reiterated loan growth targets of 3-5% for fiscal 2025 [12] - The quarterly dividend was raised by 7% to $0.75 per share, pending board approval [13]

Popular, Inc. (NASDAQ:BPOP) Q2 2025 Earnings Call July 23, 2025 11:00 AM ET Company Participants Javier D. Ferrer-Fernández - President, CEO, Corporate Secretary & Director Jorge Jose García - Executive VP & CFO Lidio V. Soriano - Executive VP & Chief Risk Officer of Corporate Risk Management Group Paul J. Cardillo - Senior VP & Investor Relations Officer Conference Call Participants Forrest Hamilton - RBC Capital Markets, Research Division Jared David Wesley Shaw - Barclays Bank PLC, Research Division Kell ...

Core Viewpoint - The comparison between Popular (BPOP) and Synovus Financial (SNV) indicates that BPOP presents a better value opportunity for investors at this time [1][3]. Valuation Metrics - BPOP has a forward P/E ratio of 11.01, while SNV has a forward P/E of 11.02 [5]. - BPOP's PEG ratio is 0.62, indicating a more favorable expected earnings growth rate compared to SNV's PEG ratio of 1.01 [5]. - BPOP's P/B ratio is 1.38, compared to SNV's P/B ratio of 1.62, suggesting BPOP is more undervalued relative to its book value [6]. Analyst Outlook - BPOP holds a Zacks Rank of 2 (Buy), indicating a more positive earnings estimate revision activity compared to SNV's Zacks Rank of 3 (Hold) [3][7]. - The stronger estimate revision activity for BPOP suggests an improving analyst outlook, making it a more attractive option for value investors [3][7]. Value Grades - BPOP has a Value grade of A, while SNV has a Value grade of C, further supporting the conclusion that BPOP is the superior investment choice at present [6].

Popular (BPOP) Q2 2025 Earnings Call July 23, 2025 11:00 AM ET Company ParticipantsPaul Cardillo - SVP & IROPaul Cardillo - SVP & IROJavier Ferrer - President, CEO & DirectorJorge García - Executive VP & CFOLidio Soriano - Executive VP & Chief Risk Officer of Corporate Risk Management GroupGerard Cassidy - Managing DirectorTimur Braziler - Director - Mid-Cap Bank Equity ResearchKelly Motta - Managing DirectorJared Shaw - Managing DirectorOperatorHello, everybody, and welcome to the Popular Incorporated Seco ...

Financial Data and Key Metrics Changes - The company reported net income of $210 million and EPS of $3.09 per share, an increase of $32 million and $0.53 per share respectively compared to the first quarter [6][14] - The return on tangible common equity improved to 13.3%, an increase of 190 basis points from the previous quarter [14][15] - Net interest income increased by $26 million to $632 million, driven by balance sheet growth and lower deposit costs [16][19] Business Line Data and Key Metrics Changes - Loan growth exceeded $900 million during the quarter, with significant contributions from commercial and construction lending [7][18] - Mortgage balances increased by $158 million, while auto loan and lease balances rose by $76 million [9] - Non-interest income was $168 million, an increase of $16 million compared to Q1, driven by higher transaction activity [22] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico remained low at 5.5%, with consumer spending showing resilience [8] - Combined credit and debit card sales for Banco Popular customers increased by approximately 4% compared to the same quarter last year [8] - The tourism sector is expected to generate approximately $200 million in additional local economic activity due to a major concert event [9][10] Company Strategy and Development Direction - The company announced a new common stock repurchase program of up to $500 million and a 7% increase in its quarterly dividend to $0.75 per share, reflecting a strong capital position [6] - Ongoing transformation efforts aim to enhance customer experiences, modernize technology, and drive sustainable growth [11][12] - The company is focused on maintaining its market position and promoting economic progress in Puerto Rico [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth opportunities in Puerto Rico, supported by federal disaster recovery funds [10][11] - The company expects to exceed a 12% return on tangible common equity for the full year, driven by improved credit outlook and net interest income [15] - Credit quality metrics improved, with lower non-performing loans and charge-offs, indicating a strong risk profile [28][34] Other Important Information - Total operating expenses increased by $22 million to $493 million, with personnel costs being the largest contributor [23] - The company repurchased approximately $112 million in shares during the quarter, with $33 million remaining on the previous repurchase authorization [27] Q&A Session Summary Question: Impact of stablecoins on Popular's business - Management is exploring potential use cases for stablecoins following the approval of the Genius Act, acknowledging its future impact on the industry [40][41] Question: Profit sharing accruals and revenue guidance - The profit sharing accrual of $13 million is based on exceeding budgeted net income by at least 3%, with expectations to reach the maximum cap of $40 million if performance continues [43][44] Question: Deposit competition and seasonality - Management noted increased competition for commercial deposits but emphasized their focus on deposit retention strategies [47][49] Question: Loan growth and federal stimulus impact - The company is seeing deployment of federal funds in Puerto Rico and expects more projects to be announced soon [70][71] Question: Fee income guidance and trends - Management indicated that second and fourth quarters typically see higher transactional activity, with updated guidance reflecting steady trends [72][74] Question: Capital and buyback pace - The current pace of share buybacks is considered reasonable, with management finding the share price attractive [76]

Financial Performance - Net income for Q2 2025 was $210 million, an increase of $32 million compared to Q1 2025 and Q2 2024[8] - Net interest income increased by $26 million to $632 million[8, 24] - Earnings per share (EPS) increased by $053 to $309[8] - Return on average tangible common equity (ROTCE) was 1326%[8] Balance Sheet - Loans held in portfolio grew by $931 million or 25%[8, 10] - Total deposits increased by $14 billion or 21%[10] - Tangible book value per share increased by $339 to $7541[8, 10] - Total assets reached $76065 million[8] Credit Quality - Non-performing loans (NPLs) decreased by $2 million to $312 million[8, 10] - NPL ratio improved to 082% compared to 084% in Q1 2025[8, 10] - Net charge-off (NCO) ratio was 045% compared to 053% in Q1 2025[8, 10] Capital Actions - The company repurchased $1120 million in common stock at an average price of $9854 per share[10, 44] - A new common stock repurchase program of up to $500 million was announced[10, 44]

Exhibit 99.1 Popular, Inc. Announces Second Quarter 2025 Financial Results SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the "Corporation," "Popular," "we," "us," "our") (NASDAQ:BPOP) reported net income of $210.4 million for the quarter ended June 30, 2025, compared to net income of $177.5 million for the quarter ended March 31, 2025. "We delivered strong performance in the second quarter, highlighted by higher net interest income, an expanding net interest margin, healthy loan and deposit growt ...

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