Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 35

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1A
Chunk 35
---
our business involves lending money,
which exposes us to
credit risk and
risk of loss if
borrowers 
do
not
repay
their
loans,
leases, credit
cards
or
other
credit
obligations.
The
performance of
these
credit
portfolios
significantly 
affects our
financial condition
and results
of operations.
We have
in the
past been
adversely affected
by negative
changes in
the 
financial condition of our clients due to weakness in
the Puerto Rico and U.S. economy. If the current economic environment were to 
deteriorate, more customers may have difficulty in repaying their credit obligations, which may result in higher levels
of credit losses 
and reserves for credit losses. 
We are exposed to
increased credit risks and credit losses
to the extent our clients are
concentrated by industry segment 
or type of client. 
Our credit risk and credit
losses can increase to the extent
our loans are concentrated in borrowers engaged in
the same 
or similar
activities or
in borrowers
who as
a group
may be
uniquely or
disproportionately affected
by certain
economic or
market 
conditions. We have significant
exposure to borrowers in certain
economic sectors, such as residential
and commercial real estate, 
hospitality and healthcare. Challenging economic or market conditions that affect
the industries or types of clients to
which we have 
significant exposure
could result
in higher
credit
losses and
adversely affect
our business,
financial condition,
liquidity,
results of 
operations or capital position. 
We also
have direct
lending and
investment exposure
to Puerto
Rico government
entities, which
have faced
significant 
fiscal challenges.
At December
31, 2024,
our exposure
to the
Puerto Rico
government consisted
of $336
million in
direct lending 
exposure to Puerto
Rico municipalities and
$220 million in
loans insured or
securities issued by
Puerto Rico governmental
entities 
but for which the principal
source of repayment is non-governmental.
and indirect lending exposure to the
Puerto Rico government 
in the
form of
loans to
private borrowers
who are
service providers,
lessors, suppliers
or have
other relationships
with the
Puerto 
Rico government