Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 29

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1
Chunk 29
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. During the year
ended December 31, 2024, BPPR declared
cash dividends of $600
million, a portion of
which was 
used by Popular for the payments of the cash dividends on its
outstanding common stock. At December 31, 2024, BPPR needed to 
obtain prior approval of the Federal Reserve Board before declaring a dividend
in excess of $318 million due to its
retained income, 
declared dividend activity and transfers to statutory reserves over the
three year’s ended December 31, 2024. In addition, a member 
bank may
not declare
or pay
a dividend
in an
amount greater
than its
undivided profits
as reported
in its
Report of
Condition and 
Income, unless the member bank has received the approval of
the Federal Reserve Board. A member bank also may not permit
any 
portion of its permanent capital to
be withdrawn unless the withdrawal has
been approved by the Federal Reserve Board.
Pursuant 
to
these
requirements, PB
may
not
declare
or
pay
a
dividend without
the
prior
approval
of
the
Federal
Reserve
Board
and
the 
NYSDFS.
During the year
ended December 31,
2024, PB
declared cash dividends
of $50
million, a portion
of which
was used
by 
Popular for the payments of the cash dividends on
its outstanding common stock. 
It is Federal Reserve Board policy that bank holding companies generally should pay dividends on common
stock only out 
of net
income available to
common shareholders
over the past
year and
only if
the prospective rate
of earnings retention
appears 
consistent with the organization’s current and
expected future capital needs, asset quality
and overall financial condition. Moreover, 
under Federal Reserve Board policy, a bank
holding company should not maintain dividend levels that place undue pressure on the 
capital of depository
institution subsidiaries or that
may undermine the bank
holding company’s ability to
be a source
of strength to 
its
banking subsidiaries.
Federal Reserve
policy
also
provides that
a
bank
holding company
should
inform
the
Federal
Reserve 
reasonably in advance of declaring or paying a dividend that
exceeds earnings for the period for which the dividend is
being paid or 
that could