Popular, Inc. · NASDAQ:BPOP
Popular — Q3 2026 Earnings Presentation
34 slides from Popular's earnings presentation, Oct 22, 2026
Slide 1: Investor Presentation Third Quarter 2026
Investor Presentation Third Quarter 2026
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those regarding Popular’s business, financial condition, results of operations an
Slide 3: Strategic Framework
Strategic Framework BE SIMPLE AND EFFICIENT Deliver solutions faster, improve productivity and reduce costs BE THE #1 BANK FOR OUR CUSTOMERS Meet customers where they are. We are their first choice, always one step ahead, fostering loyalty and deepening relationships at every stage of their lives, t
Slide 4: Q3 2026 Highlights
Q3 2026 Highlights See Slide 15 for footnotes Differences due to rounding ($ in millions, except per share information) Income Statement Q3 2026 Q2 2026 Change Q3 2025 Net Income $ 266 $ 278 $ (12) $ 211 Net Interest Margin (NIM) 3.63% 3.66% -3 bps 3.51% Net Interest Margin FTE1 4.16% 4.17% -1 bps 3
Slide 5: Q3 2026 Business Highlights
Q3 2026 Business Highlights Differences due to rounding ($ in millions) Q3 2026 Q2 2026 Change Q3 2025 Net Income $ 222 $ 233 $ (11) $ 189 Net Interest Margin 3.81% 3.85% -4 bps 3.71% Loans Held-in-Portfolio 28,245 27,976 269 27,131 P.R. Public Deposits 21,466 22,705 (1,239) 20,076 Total Deposits 56
Slide 6: Financial Summary
Financial Summary Differences due to rounding Quarterly Results (unaudited) ($ in thousands, except EPS) Q3 2026 Q2 2026 Variance Net interest income $ 698,930 $ 693,419 $ 5,511 Provision for credit losses 58,593 65,873 (7,280) Net interest income after provision for credit losses $ 640,337 $ 627,54
Slide 7: Net Interest Income and NIM Dynamics
Net Interest Income and NIM Dynamics Q3 2026 Highlights: • Net interest income increased $6 million to $699 million • Net interest margin decreased 3 bps to 3.63% • Net interest margin (FTE) decreased 1 bp to 4.16% ‐ Money market and investment securities yields (FTE) increased 13 bps to 3.82% • Mon
Slide 8: Non-Interest Income
Non-Interest Income Q3 2026 Highlights: • Non-interest income decreased $5 million QoQ to $176 million - Banking fees decreased $2 million driven by lower deposit service charges related to a new product launched in August - Other operating income includes a $5 million benefit related to a commercia
Slide 9: Operating Expenses
Operating Expenses Differences due to rounding Q3 2026 Highlights: • Operating expenses increased $21 million QoQ to $506 million: - Personnel costs increased $16 million, driven by $7 million in higher salaries following merit increase effective in Q3 and one additional day in the quarter, $5 milli
Slide 10: Non-Performing Assets
Non-Performing Assets Q3 2026 Highlights: • Total NPAs decreased by $37 million, driven by the sale of an $84 million NPL held-for-sale • Total BPPR NPLs increased $52 million, primarily driven by a $74 million commercial relationship offset by a $34 million partial charge-off related to a commercia
Slide 11: NCOs and Allowance for Credit Losses
NCOs and Allowance for Credit Losses Q3 2026 Highlights: • NCOs decreased $30 million, driven by lower commercial charge-offs by $38 million due to the resolution of a commercial relationship in Q2 that resulted in a $71 million charge-off, offset in part by a $34 million partial charge-off of a com
Slide 12: Capital
Capital Q3 2026 Highlights: • Tangible common book value per common share decreased $1.64 to $86.30, driven by higher unrealized losses of AFS investment securities • During the quarter repurchased $179 million in common stock at an average price of $168.40 and paid quarterly common stock dividend o
Slide 13: Driving Value
13 Driving Value Franchise Market leader in Puerto Rico • Extensive customer base with 2.1 million customers • Solid deposit franchise and a well diversified loan portfolio • Distinct multichannel experience with top digital solutions and an unmatched branch network • Diversified business model, str
Slide 14: 2026 Guidance
14 Guidance 2026 Guidance Original PY 2026 Guidance Updated Guidance Commentary Net Interest Income 5%-7% increase for the year ~8.5% for the year Unchanged Non-Interest Income $160 million - $165 million per quarter ~$170 million in Q4 Upper end of Q2 guidance NCOs 55 bps-70 bps annualized 80 bps-9
Slide 15: Footnotes
15 Footnotes Slide 4: 1- Fully taxable equivalent (“FTE”) net interest margin (“NIM”) represents a non-GAAP financial measure. See the Corporation's earnings press release, Form 10-Q and Form 10-K filed, or to be filed, with the U.S. Securities and Exchange Commission for the applicable periods’ GAA
Slide 16: Third Quarter 2026 Appendix
Investor Presentation Third Quarter 2026 Appendix
Slide 17: Corporate Structure Summary
Earnings Earnings 17 Corporate Structure Summary Corporate Structure Banco Popular de Puerto Rico Franchise Selected equity investments: Banco BHD León under Corporate segment • Dominican Republic bank • 15.63% stake • 2025 net income of $306 million Industry Financial Services Headquarters San Juan
Slide 18: Business Segments Financial Results
18 Q3 2026 vs. Q2 2026 Business Segments Financial Results BPPR Popular U.S. (Unaudited) ($ in millions) Q3 2026 Q2 2026 Variance Q3 2026 Q2 2026 Variance Net interest income $ 592 $ 590 $ 2 $ 117 $ 113 $ 4 Provision for credit losses 61 63 (2) (3) 3 (6) Net interest income after provision for credi
Slide 19: Loan Composition and Yields
19 Loan Composition and Yields Q3 2026 Highlights: • Loans held-in-portfolio increased $293 million driven by commercial, mortgage and consumer loans • Average loan yields (FTE) increased 3 bps to 7.56% Loans Held-in-Portfolio Average (ending balances, $ in millions) Q3 2026 Q2 2026 Variance Q3 2026
Slide 20: Funding Profile and Deposit Composition
20 Funding Profile and Deposit Composition Q3 2026 Highlights: • Deposits at $68.7 billion, with P.R. public deposits at $21.5 billion, representing 31% of total deposits • Total cost of deposits increased 7 bps to 1.64% • Borrowings at $1.3 billion, composed of long-term notes and short term FHLB a
Slide 21: Deposit Beta
21 Deposit Beta • BPPR's retail and commercial accounts are low beta products and typically respond more slowly to changes in short-term interest rates. However, given the higher starting point of this cycle and the competitive environment, betas may rise above levels seen in the prior rising rate c
Slide 22: Investment Portfolio
22 Investment Portfolio Q3 2026 Highlights: • Conservative investment portfolio, with the majority invested in short to intermediate U.S. Treasuries, which are tax exempt in Puerto Rico • Investment portfolio duration 1.6 years; including cash, 1.4 years • Unrealized loss in the AFS portfolio increa
Slide 23: Allowance for Credit Losses – Q3 2026
23 Allowance for Credit Losses – Q3 2026 Q3 2026 ACL Movement: • Moody’s 2026 baseline shows GDP growth consistent with the previous forecast • NCOs impacted by a $34 million partial charge-off of a commercial relationship • Commercial portfolio ACL movement driven by higher reserves for NPLs • Reta
Slide 24: Commercial and Industrial Portfolio
24 Commercial and Industrial Portfolio Q3 2026 Highlights: • The Commercial and Industrial portfolio is mainly concentrated in the following industries: other services (mostly U.S. community association loans), public administration, retail trade, and finance and insurance • NPLs at $192 million, a
Slide 25: Non-Owner Occupied CRE Portfolio
25 Non-Owner Occupied CRE Portfolio Q3 2026 Highlights: • Non-Owner Occupied CRE (CRE NOO) exposure mainly in retail, hotels and office space • Office exposure limited to 1.8% of total loan portfolio and 12% of the CRE NOO portfolio ‐ Office space mainly in mid-rise properties with diversified tenan
Slide 26: Multifamily Loan Portfolio
26 Multifamily Loan Portfolio Q3 2026 Highlights: • 86% of the portfolio concentrated in Popular U.S. • Strong credit risk profile with low levels of delinquency, NCOs and classified loans • New York Multifamily loan portfolio: ‐ Represents $1.3 billion or 3.4% of our total loan portfolio ‐ Underwri
Slide 27: P.R. Mortgage Loan Portfolio
27 P.R. Mortgage Loan Portfolio Q3 2026 Highlights: • 46% of the P.R. mortgage loan portfolio is comprised of U.S. government guaranteed loans • Origination average FICO scores above 750 and LTV approximately 75% 78% Original LTV 75%72%73%73%67%70%74%77%
Slide 28: Auto Loan Portfolio
28 Auto Loan Portfolio Q3 2026 Highlights: • Delinquency and NCO levels for the period remained below the historical average benchmark • Increase in early delinquency from Q2 due to seasonal factors • Weighted-average FICO scores of approximately 735 • Q3 auto loan originations were approximately 68
Slide 29: Auto Lease Portfolio
29 Auto Lease Portfolio Q3 2026 Highlights: • Delinquency and NCO levels for the period are below the historical average benchmark • Weighted-average FICO scores of approximately 742 Avg. 2011-2019 9/30/2026 2.06% 1.83% Avg. 2011-2019 YTD 0.65% 0.61%
Slide 30: P.R. Personal Loan Portfolio
30 P.R. Personal Loan Portfolio Q3 2026 Highlights: • Delinquency remained below the historical average benchmark • NCO levels for the period above the historical average benchmark, with significant improvements in most recent vintages • Weighted-average FICO scores of approximately 750 in recent vi
Slide 31: Credit Cards Portfolio
31 Credit Cards Portfolio Q3 2026 Highlights: • Delinquency has followed an overall improving trend, with recent quarter-over-quarter increase • NCOs above historical benchmarks, with an overall declining trend since 2025 • Weighted-average FICO scores of approximately 773 Avg. 2011-2019 9/30/2026 3
Slide 32: P.R. Public Sector Exposure
32 P.R. Public Sector Exposure • As of September 30, 2026, our direct exposure outstanding to P.R. municipalities amounted to $374 million, decreasing by $41 million from the prior quarter • Our direct exposure to P.R. government entities at September 30, 2026 includes an exposure associated with Au
Slide 33: Popular's Credit Ratings
33 2026 January S&P upgrades outlook to Positive Senior Unsecured Ratings Fitch BBB- Stable Outlook S&P BB+ Positive Outlook Moody’s Baa3 Stable Outlook 2021 March Moody’s revised outlook to Positive April Moody’s upgrades to Ba3 from B1 Fitch and S&P revised outlook to Positive June Fitch upgrades
Slide 34: Third Quarter 2026
Investor Presentation Third Quarter 2026