Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 36

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1A
Chunk 36
---
. While the overall fiscal situation of the Puerto
Rico government has improved in recent years, including
as a result 
of
the
government
and
certain
of
its
instrumentalities
having
restructured
their
debt
obligations,
some
Puerto
Rico
government 
entities, including certain municipalities, still face significant fiscal challenges.
A deterioration in the fiscal situation of the Puerto Rico 
government and its
instrumentalities, and in
particular the fiscal
situation of the
Puerto Rico
municipalities to which
we have
direct 
lending
exposure,
could
result
in
higher
credit
losses
and
reserves
for
credit
losses.
For
a
discussion
of
risks
related
to
the 
Corporation’s credit exposure
to the Puerto
Rico and USVI
governments, see the
Geographic and Government
Risk section in
the 
MD&A section of this Form 10-K. 
Deterioration in the
values of real
properties securing our commercial, mortgage
loan and construction portfolios
have in 
the past resulted, and may in the future result,
in increased credit losses and harm our results
of operations.
As of
December 31,
2024, approximately
55% of
our loan
portfolio consisted
of loans
secured by
real estate
collateral 
(comprised of 29% in commercial loans, 22% in residential
mortgage loans and 3% in construction loans). The
value of the collateral 
securing such loans is dependent upon economic conditions in the area in which the collateral is located. Weakness in the economy 
of some of the
markets we serve has in
the past resulted in significant
declines in the value of
the real properties securing our
loan 
portfolio, leading to increased credit losses. If the value of
the real estate properties securing our loan portfolio declines again in
the 
future, we may be
required to increase our
provisions for loan losses
and allowance for loan
losses. Any such increase could
have 
an adverse effect on
our financial condition and results of
operations. For more information on the credit
quality of our construction, 
commercial and mortgage portfolio, see the Credit
Risk section of the MD&A included in this
Form 10-K.
Defective and repurchased