Popular(US:BPOP)2026-01-27 12:00Financial Performance - Net income for Q4 2025 was $233.9 million, up from $211.3 million in Q3 2025, representing a 10.9% increase[1][2] - Adjusted net income for Q4 2025 was $224.2 million, excluding a partial reversal of the FDIC special assessment reserve of $9.7 million[1][12] - Earnings per share (EPS) increased to $3.53 in Q4 2025 from $3.15 in Q3 2025, reflecting a 12.1% growth[1][5] - Basic EPS for Q4 2025 increased to $3.53 from $3.15 in Q3 2025, and $2.51 in Q4 2024, representing a year-over-year growth of 40.6%[56] - Net income for the fourth quarter of 2025 was reported at $233.90 million, compared to $211.31 million in the same quarter last year, representing a year-over-year increase of 10.7%[59] Interest Income and Margin - Net interest income rose to $657.6 million in Q4 2025, an increase of $11.0 million compared to Q3 2025, driven by lower interest expenses and loan growth[1][16] - Total interest income for Q4 2025 was $955.49 million, a decrease of $11.16 million from Q3 2025, but an increase of $35.72 million compared to Q4 2024[58] - Net interest margin improved to 3.61% in Q4 2025, up from 3.51% in Q3 2025, indicating enhanced profitability on interest-earning assets[1][16] - The net interest margin on a taxable equivalent basis increased to 4.03% from 3.90%, reflecting a 0.13% improvement[61] - The net interest margin on a taxable equivalent basis improved to 4.03% in Q4 2025 from 3.62% in Q4 2024, an increase of 0.41%[63] Loan Portfolio - Total loans held-in-portfolio increased by $640.4 million to $39.3 billion from Q3 2025, with average quarterly loan balances up by $397.2 million[1][16] - Loans held-in-portfolio increased to $39.75 billion, an increase of $2.23 billion compared to the previous year[60] - Total loans increased to $733,464 million in Q4 2025 from $689,684 million in Q4 2024, representing a growth of $43,780 million[63] - Total loans held-in-portfolio increased to $39,327,518 thousand, a growth of $640,360 thousand or 1.66% from Q3 2025, and up $2,219,866 thousand or 5.98% from Q4 2024[70] Non-Performing Loans and Credit Losses - Non-performing loans (NPLs) decreased by $3.9 million from Q3 2025, with the NPLs to loans ratio improving to 1.27%[1][16] - Total non-performing loans decreased by $3.9 million to $498.3 million, with a non-performing loans to total loans ratio of 1.27%[34] - The allowance for credit losses (ACL) increased to $808.1 million, with an ACL to loans ratio of 2.05%[37] - Total non-performing assets decreased to $540,776 thousand, down from $545,152 thousand in the previous quarter[81] - New non-performing loans for the quarter ended December 31, 2025, amounted to $21,800 thousand, while non-performing loans charged-off totaled $3,044 thousand[83] Deposits and Liabilities - Deposits totaled $66.2 billion, a decrease of $323.3 million from Q3 2025, primarily due to a reduction in public deposits[1][16] - Total liabilities increased by $149.1 million from the third quarter of 2025, driven by higher unsettled U.S. Treasury securities purchases[45] - Total deposits decreased slightly to $66.19 billion, down by $323.31 million from the previous quarter[60] - Total liabilities increased to $69.10 billion, reflecting a rise of $149.06 million from the previous quarter[60] Stockholders' Equity - The Common Equity Tier 1 ratio stood at 15.72%, with tangible book value per share increasing to $82.65, up $3.53 from Q3 2025[1][4] - Stockholders' equity increased by $133.4 million compared to the third quarter of 2025, primarily due to net income of $233.9 million for the quarter[45] - Total stockholders' equity increased to $6,249,079 thousand as of December 31, 2025, up from $6,115,672 thousand in the previous quarter[95] - Total tangible common equity rose to $5,431,906 thousand, compared to $5,298,115 thousand in the prior quarter[95] Operating Expenses and Tax Rate - Operating expenses totaled $473.2 million, a decrease of $22.1 million compared to the previous quarter, excluding a partial reversal of the FDIC special assessment[26] - The effective tax rate for Q4 2025 was 16.0%, up from 14.5% in the previous quarter, with an adjusted effective tax rate of 17.8%[31] Market Capitalization - Market capitalization as of December 31, 2025, was $8.183 billion, down from $8.645 billion at the end of Q3 2025, but up from $6.597 billion at the end of Q4 2024[56]