Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 32

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1A
Chunk 32
---
greater risks
than other
banking companies
with a 
wider geographic base. 
Puerto Rico
has faced significant
economic and fiscal
challenges in the
past, including a
severe recession that
began in 
2007 and
persisted for
over a
decade and
an acute
fiscal crisis
that led
the Puerto
Rico government
to file
for a
form
of federal 
bankruptcy protection
in 2017.
Puerto Rico’s
fiscal and
economic challenges
have in
the past
adversely affected
our customers, 
resulting
in
higher
delinquencies,
charge-offs
and
increased
losses
for
us.
While
Puerto
Rico’s
economy
has
been
gradually 
recovering
and
the
Puerto
Rico
government
emerged from
bankruptcy
in
2022,
Puerto
Rico
still
faces
significant
economic
and 
fiscal challenges.
Puerto Rico’s
economy is
closely tied
to the
U.S. economy,
as well
as
highly reliant
on U.S.
public policy
and funding 
decisions. Puerto Rico
has historically received
significant federal support
for a
wide range of
government programs and
services, 
including healthcare, education,
infrastructure and social
assistance programs. More
recently, Puerto
Rico has
received significant 
federal stimulus,
disaster relief and
reconstruction funding, which
has served as
a major
driver of
economic activity.
Reductions in 
federal
funding
for
Puerto
Rico
or
delays
in
disbursements
could
significantly
impact
Puerto
Rico’s
economy
and
hinder 
reconstruction efforts, including the restoration
and improvement of critical infrastructure. The
Trump Administration is conducting
a 
review
of
federal
funding,
and
we
believe
that
the
amount
of
federal
funding
to
programs
that
have
benefited
the
Puerto
Rico 
economy could
be reduced,
perhaps significantly.
Beyond direct
funding, broader
shifts in
U.S. policy,
such as
changes to
tax or 
trade policies,
and shifts