Popular(US:BPOP)2025-11-10 20:14Financial Performance - The Corporation's net income for Q3 2025 was $211.3 million, an increase of $56.0 million from $155.3 million in Q3 2024[301]. - Net interest income reached $646.5 million, up $74.0 million compared to Q3 2024, driven by lower deposit costs and loan growth[302]. - Non-interest income increased to $171.2 million, a rise of $7.1 million from Q3 2024, mainly due to higher credit and debit card fees[305]. - The net income per common share for Q3 2025 was $3.15, an increase of $0.99 from $2.16 in Q3 2024[307]. - Adjusted net income for the nine months ended September 30, 2024, was $595.572 million, with a total income tax expense of $127.241 million, resulting in a net income of $468.331 million[313]. - Banco Popular de Puerto Rico's net income for Q3 2025 was $189.0 million, up from $125.8 million in Q3 2024, representing a 50.2% increase[347]. - Net income for the nine months ended September 30, 2025, was $342,681 thousand, down from $423,046 thousand in the prior year[427]. Income and Expenses - Operating expenses amounted to $495.3 million, reflecting an increase of $28.0 million from Q3 2024, driven by higher personnel costs[305]. - Total operating expenses for the nine months ended September 30, 2025, increased by $59.7 million when excluding certain prior period tax withholdings and FDIC Special Assessment impacts[335]. - Personnel costs increased by $31.1 million in Q3 2025, driven by higher incentives and salaries, with total personnel costs reaching $232.988 million[338]. - The effective tax rate for Q3 2025 was 14.5%, down from 21.5% in Q3 2024, with an income tax expense of $36.0 million compared to $42.5 million in the prior year[339]. Assets and Liabilities - Total assets as of September 30, 2025, were $75.1 billion, an increase of $2.1 billion from $73.0 billion at the end of 2024[305]. - Total liabilities increased by $1.5 billion to $69.0 billion as of September 30, 2025[358]. - Stockholders' equity rose to $6.1 billion, compared to $5.6 billion at the end of 2024, with a tangible book value per share of $79.12[305]. - The Corporation's net deferred tax asset was $835.5 million as of September 30, 2025, net of a valuation allowance of $465.0 million[341]. Credit Losses and Provisions - The provision for credit losses was $75.1 million, an increase of $3.7 million from the previous year, primarily due to higher reserves in commercial loans[302]. - The total allowance for credit losses for loans held-in-portfolio amounted to $786.2 million as of September 30, 2025, compared to $746.0 million as of December 31, 2024, with a ratio of 2.03%[331]. - The provision for loan losses for the nine months ended September 30, 2025, in the BPPR segment was $168.5 million, a decrease of $18.3 million compared to the same period in 2024[333]. - The provision for loan losses in the Popular U.S. segment for the nine months ended September 30, 2025, was $20.8 million, an increase of $18.2 million driven by changes in credit quality within the commercial portfolio[333]. Deposits and Funding - Deposits increased to $66.5 billion, up $1.6 billion from December 31, 2024, driven by higher time deposits[305]. - Total deposits as of September 30, 2025, amounted to $66,513,404 thousand, with a breakdown of $54,877,997 thousand from BPPR and $12,161,598 thousand from Popular U.S.[402]. - Core deposits represented 92% of total deposits at $60.9 billion as of September 30, 2025, consistent with 92% at $59.9 billion as of December 31, 2024[398]. - The Corporation's borrowings totaled $1.2 billion, an increase of $70.7 million from December 31, 2024, primarily due to higher FHLB advances[363]. Non-Performing Assets - The Corporation's non-performing assets (NPAs) totaled $545.2 million as of September 30, 2025, an increase of $137.1 million compared to December 31, 2024[446]. - Non-performing loans (NPLs) reached $502.2 million, up by $151.4 million from December 31, 2024, with a ratio of NPLs to total loans held-in-portfolio at 1.30%[450][451]. - The ratio of non-performing assets to total assets increased to 0.84% from 0.61% in the previous period[458]. - The total inflows of NPLs at the BPPR segment increased by $205.2 million compared to the same period in 2024[460]. Economic Environment - The Puerto Rico Planning Board estimates real GNP growth of 2.1% for fiscal year 2024 and 1.1% for fiscal year 2025, with a forecast of 0.5% growth for fiscal year 2026[433]. - The U.S. Consumer Price Index showed a year-over-year increase of 3.0% as of September 2025, while Puerto Rico's Consumer Price Index increased by 1.9%[434]. - The economic challenges in Puerto Rico have led to increased delinquencies and charge-offs, impacting the Corporation's overall financial stability[443].