Popular, Inc. · NASDAQ:BPOP
Popular — Q3 2026 Earnings Presentation
34 slides from Popular's earnings presentation, 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 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, to drive growth BE SIMPLE AND EFFICIENT Deliver solutions faster, improve productivity an
Slide 4: Q3 2026 Highlights
Q3 2026 Highlights Financial Highlights Quarter Highlights ($ in millions, except per share information) Income Statement Q3 2026 Q2 2026 Change Q3 2025 Highlights: Net Income $ 266 $ 278 $ (12) $ 211 • ROTCE of 15.80% vs. 17.02% in Q2 Net Interest Margin (NIM) 3.63% 3.66% -3 bps 3.51% • Net interes
Slide 5: Q3 2026 Business Highlights
Q3 2026 Business Highlights BPPR Popular U.S. ($ in millions) Q3 2026 Q2 2026 Change Q3 2025 ($ in millions) Q3 2026 Q2 2026 Change Q3 2025 Net Income $ 222 $ 233 $ (11) $ 189 Net Income $ 42 $ 36 $ 6 $ 18 Net Interest Margin 3.81% 3.85% -4 bps 3.71% Net Interest Margin 3.20% 3.17% 3 bps 2.94% Loans
Slide 6: Financial Summary
Financial Summary 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 $ 627,546 $ 12,791 Banking fees 115,
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: Change vs. • Non-interest income decreased $5 million QoQ Q2 Q3 ($ in millions) Q3 2026 Q2 2026 Variance Q3 2025 2026 2025 to $176 million Service charges on deposits $ 37.1 $ 39.0 $ (1.9) $ 39.1 (5%) (5%) - Banking fees decreased $2 million driven by lower de
Slide 9: Operating Expenses
Operating Expenses Q3 2026 Highlights: Change vs. • Operating expenses increased $21 million Q2 Q3 ($ in millions) Q3 2026 Q2 2026 Variance Q3 2025 2026 2025 QoQ to $506 million: Salaries $ 141.4 $ 134.4 $ 6.9 $ 139.4 5% 1% - Personnel costs increased $16 million, driven by $7 million in higher sala
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: Allowance for Credit Losses • NCOs decreased $30 million, driven by lower commercial charge-offs ($ in millions) by $38 million due to the resolution of a commercial relationship in ACL ACL ACL/Loan Portfolios Q3 2026 Q2 2026 Variance Q3 2026
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
Driving Value 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, strong capital a
Slide 14: Guidance
Guidance Annual ROTCE target of 14%-17% 2026 Guidance Original PY 2026 Guidance Updated Guidance Commentary 5%-7% increase for the year ~8.5% for the year Unchanged Net Interest Income $160 million - $165 million per quarter ~$170 million in Q4 Upper end of Q2 guidance Non-Interest Income Based on Y
Slide 15: Footnotes
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’ GAAP t
Slide 16: Appendix
Investor Presentation Third Quarter 2026 Appendix
Slide 17: Corporate Structure
Corporate Structure Franchise Summary Corporate Structure Industry Financial Services Headquarters San Juan, Puerto Rico Assets = $77.8 billion Assets $77.8 billion (among top 50 BHCs in the U.S.) Banco Popular Popular’s Popular Holding Co. (including Popular de Securities Insurance North equity Pue
Slide 18: Q3 2026 vs. Q2 2026 Business Segments
Q3 2026 vs. Q2 2026 Business Segments Financial Results BPPR Popular U.S. (Unaudited) ($ 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 credit l
Slide 19: Loan Composition and Yields
Loan Composition and Yields Q3 2026 Highlights: Loans Held-in-Portfolio Average • Loans held-in-portfolio increased $293 million (ending balances, driven by commercial, mortgage and consumer $ in millions) Q3 2026 Q2 2026 Variance Q3 2026 Yields (FTE) loans Commercial $ 20,361 $ 20,051 $ 310 $ 20,15
Slide 20: Funding Profile and Deposit Composition
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 adva
Slide 21: Deposit Beta
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 cycl
Slide 22: Investment Portfolio
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 increased
Slide 23: Allowance for Credit Losses – Q3 2026
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 • Retail
Slide 24: Commercial and Industrial Portfolio
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 $47
Slide 25: Non-Owner Occupied CRE Portfolio
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 tenants
Slide 26: Multifamily Loan Portfolio
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 ‐ Underwritte
Slide 27: P.R. Mortgage Loan Portfolio
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% 77% 74% 70% 67% 73% 73% 72% 75% Original LTV 27
Slide 28: Auto Loan Portfolio
Auto Loan Portfolio Q3 2026 Highlights: Avg. 2011-2019 9/30/2026 6.17% 4.37% • 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
Slide 29: Auto Lease Portfolio
Auto Lease Portfolio Q3 2026 Highlights: Avg. 2011-2019 9/30/2026 2.06% 1.83% • Delinquency and NCO levels for the period are below the historical average benchmark • Weighted-average FICO scores of approximately 742 Avg. 2011-2019 YTD 0.65% 0.61% 29
Slide 30: P.R. Personal Loan Portfolio
P.R. Personal Loan Portfolio Q3 2026 Highlights: Avg. 2011-2019 9/30/2026 • Delinquency remained below the historical average 3.61% 2.59% benchmark • NCO levels for the period above the historical average benchmark, with significant improvements in most recent vintages • Weighted-average FICO scores
Slide 31: Credit Cards Portfolio
Credit Cards Portfolio Q3 2026 Highlights: Avg. 2011-2019 9/30/2026 3.74% 3.83% • 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 approximat
Slide 32: P.R. Public Sector Exposure
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 Autom
Slide 33: Popular's Credit Ratings
Popular’s Credit Ratings Senior SeniorUnsecured Ratings Unsecured Ratings Fitch BBB- Stable Outlook S&P BB+ Positive Outlook Moody’s Baa3 Stable Outlook 2021 2022 2025 2026 April Moody’s upgrades to June April September August Ba3 from B1 Fitch S&P Moody’s Moody’s March upgrades to September January
Slide 34: Investor Presentation Third Quarter 2026
Investor Presentation Third Quarter 2026