Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 22

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1
Chunk 22
---
. 
Brokered Deposits
The FDIA
and regulations
adopted thereunder
restrict the
use of
brokered deposits
and the
rate of
interest payable
on 
deposits for institutions
that are less
than well capitalized.
Popular does not
believe the brokered
deposits regulations have
had or 
will have a material effect on the funding or liquidity
of BPPR and PB. 
Capital Adequacy
Popular, PNA,
BPPR and PB are
each required to comply
with applicable capital adequacy standards
established by the 
federal
banking
agencies
(the
“Capital
Rules”),
which
implement
the
Basel
III
framework
set
forth
by
the
Basel
Committee
on 
Banking Supervision (the “Basel Committee”) as
well as certain provisions of the Dodd-Frank Act. 
Among other
matters, the
Capital Rules:
(i) impose
a capital
measure called
“Common Equity
Tier
1” (“CET1”)
and the 
related regulatory capital ratio of CET1 to risk-weighted assets; (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 
capital” instruments meeting
certain revised requirements;
and (iii) mandate
that most deductions/adjustments to
regulatory capital 

  15 
measures be made
to CET1
and not to
the other components
of capital.
Under the Capital
Rules, for most
banking organizations, 
including
Popular,
the
most
common
form
of
Additional
Tier
1
capital
is
non-cumulative
perpetual preferred
stock
and
the
most 
common form of Tier
2 capital is subordinated notes and
a portion of the
allocation for loan and lease losses,
in each case, subject 
to the Capital Rules’ specific requirements. 
Pursuant to the Capital Rules, the minimum
capital ratios are: 
4.5% CET1 to risk-weighted assets; 
6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted
assets; 
8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and 
4% Tier 1 capital to average consolidated assets