Oct 22, 2026 earnings call — Quarterly results, capital return and credit update
Popular reported net income of $266 million for the quarter.
Revenue $0.9B (est $0.9B) · EPS $4.21 (est $3.95)
Key quotes
"Given our year-to-date commercial charge-offs and NPL inflows this quarter, we now expect net charge-offs to be in the range of 80-90 basis points for the full year."
"We continue to return capital to shareholders, repurchasing $179 million of common stock in the quarter. We also increased the quarterly dividend to $0.90 per share, beginning with the payment on October 1."
"The program supports deposit retention and has also generated more than $90 million in loans."
Analyst Q&A 5
credit, preferred issuance, federal spending
Q (Jared Shaw · Barclays): He asked whether the fourth-quarter net charge-off guidance reflects loss on the disclosed commercial loan or broader portfolio weakness. He also asked about plans for preferred issuance and how much federal spending remains unspent.
A: Management said the net charge-off guidance reflects potential scenarios, including the disclosed C&I deals, while core consumer and mortgage portfolios continue to perform well. They said preferred issuance is discretionary because current rates are unattractive and they will not force a deal. They said slightly over $43 billion remains of the federal spending and third-quarter FEMA-related spending picked up.
"I would say that our net charge-off guidance for the fourth quarter mainly reflects our potential scenarios, including the C&I deals that we have disclosed." — Jorge Jose García (CEO)
reinvestment rates and public funds risk
Q (Timur Braziler · UBS): He asked why reinvested securities yielded 4.3% when 2- and 3-year yields were higher during the quarter, and whether future reinvest rates will track those yields. He also asked if public funds balances could be drawn down before the 28 election.
A: The treasurer said the 4.3% reflects purchases made throughout the quarter, so the rate is an average of maturities over time rather than the quarter-end rate. They noted about $1.5 billion-$1.6 billion of investments reprice each quarter and $600 million-$700 million were very low-rate legacy holdings that will reprice higher. Management expects some municipal spending pickup but does not foresee significant declines in balances from infrastructure spending, and federal oversight and flow-in/flow-out dynamics matter.
"I think of it more as on average during the quarter and not just the endpoint as the quarter." — Analyst
loan growth slowdown
Q (Arren Cyganovich · Truist): He asked why loan growth is expected to slow into the fourth quarter, given strong commercial growth in prior quarters. He also asked if this changes the bank's view of loan growth beyond this quarter.
A: Management said one driver is auto lending, which has been below expectations and reduces growth. They also said they are being more disciplined in the U.S., pushing teams to deepen relationships and lead with deposits, which slows single-product production. They expect some construction payoffs and see Puerto Rico demand limited more by supply than by lack of demand.
"The other thing is that we are trying to be a lot more disciplined in our US business as well." — Jorge Jose García (CEO)
loan yields and expense drivers
Q (Kelly Motta · KBW): She asked whether loan yield could fall because mix shifts (weaker auto growth) and how new origination yields are coming in. She also asked why they lowered expense guidance to the low end.
A: Management said loan yields have been affected by higher rates more on consumer loans and that quarter-to-quarter yields declined, but they do not see loan yield as a near-term pressure and expect NII to keep expanding. On expenses, they said they did not delay projects; teams implemented and identified $50 million in recurring efficiencies that will benefit next year and the guide includes expected profit-sharing.
"But right now, I do not think loan yield is something, you know, that is putting pressure, you know, in terms of as we look forward." — Lidio V. Soriano (CFO)
near-term NIM, loan growth, ROTCE drivers
Q (Manuel Navas · Piper Sandler): He asked how to think about near-term NIM, especially with a possible December rate hike, and what would make loan growth accelerate. He also asked what drives the high or low end of the ROTCE guidance.
A: They said repricing of the investment portfolio and short-term assets/liabilities is a tailwind that should raise asset yields and lift NII, with trajectory depending on mix between investments and loans. Management said if public deposits grow, that will put pressure on NIM but will boost NII. For loan growth to accelerate, management pointed to stronger population and project activity, noting $4 billion of manufacturing investment announced as an example; ROTCE is driven by credit costs, NII growth, and execution on deposit and segment strategies.
"I mean, if we continue to see growth in public deposits, that does put pressure on NIM." — Jorge Jose García (CEO)