Core Insights - Popular reported a total loan growth of $2.2 billion for 2025, marking a 6% increase, with significant contributions from commercial loans and construction loans [1] - The company achieved a net income of $833 million for the full year 2025, a 36% increase compared to 2024, and a fourth-quarter net income of $234 million, reflecting strong performance driven by higher net interest income and lower operating expenses [2][3][6] Financial Performance - For Q4 2025, Popular's earnings per share reached $3.53, an increase of $0.38 from the previous quarter, with a return on tangible common equity (ROTCE) exceeding 14% [2][6] - The net interest income (NII) for Q4 was $658 million, up $11 million from Q3, and for the full year, NII increased by $259 million, or 11% [6][7] - The fourth-quarter net interest margin expanded by 10 basis points to 3.61% on a GAAP basis, driven by higher loan balances and lower interest expenses [7] Loan and Deposit Trends - Loans grew by $641 million in Q4, with $497 million from Banco Popular de Puerto Rico (BBPR) and $144 million from Popular Bank, while management anticipates a consolidated loan growth of 3%-4% for 2026 [7][8] - Ending deposit balances decreased by $323 million in Q4, primarily due to expected outflows in Puerto Rico public deposits, which ended the quarter at $19.4 billion [10] Capital Management and Shareholder Returns - Popular repurchased approximately $500 million of common stock in 2025 and increased its quarterly dividend to $0.75 per share [5][18] - The Common Equity Tier 1 (CET1) ratio stood at 15.7% at year-end 2025, with tangible book value per share rising by 21% to $82.65 [17] Expense Management and Guidance - Operating expenses for Q4 were $473 million, down $22 million from Q3, with management expecting a 3% increase in GAAP expenses for 2026 [14][15] - For 2026, Popular guided to a net interest income growth of 5%-7% and a modest increase in expenses, while anticipating continued margin expansion albeit at a slower pace than in 2025 [4][8] Credit Quality - Credit metrics remained stable, with non-performing loans decreasing to 1.27% of total loans, and net charge-offs for the full year 2025 improved to 52 basis points [16]