Company: BPOPM
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001140361-25-010189
Chunk: 38

Company: POPULAR, INC.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 38
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 million adjustment for withholding tax on prior period distributions, the adjusted net income for 2024 was $646.1 million, an increase of 10% compared to the previous year. The variance was mainly driven by higher net interest income, offset in part by a higher provision for credit losses and higher operating expenses. The increase in operating expenses reflects our planned investment in our transformation initiatives, our people and our efforts to expand our capabilities in cybersecurity, risk management, data and technology. For incentive compensation purposes, the Talent and Compensation Committee (the “Committee”) adjusted the 2024 GAAP net income only for the impact of the FDIC Special Assessment to arrive at an adjusted after-tax net income of $623.3 million. Refer to the GAAP to non-GAAP reconciliation in Appendix A. Popular’s common stock (“BPOP”) closed 2024 at $94.06, 15% higher than year-end 2023. Popular's stock narrowly underperformed the Nasdaq Bank Index (“^BANK”), which increased by 17% in 2024, but outperformed the KBW Nasdaq Regional Banking index (“KRX”), which increased by 10% in the same period.

EXECUTIVE AND DIRECTOR COMPENSATION | 45

TABLE OF CONTENTS

Some of Popular’s additional key corporate highlights during 2024 included:

| Lending                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| •Increased our loan portfolio to $37.1 billion, $2 billion or 6% higher than 2023.                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| •Grew BPPR lending in most business segments, led by commercial loans. Popular Bank achieved growth in commercial and construction loans.                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| •Secured 2024 year-end deposits of $65 billion, an increase of $1.3 billion or 2%, mainly driven by higher public sector deposits in Puerto Rico and higher-cost deposits from Popular Bank’s online channel. In Puerto Rico, our broker dealer subsidiary received a significant portion of client funds seeking higher yields on their excess liquidity, growing its assets under management by 32% to $10.8 billion in 2024.                                                                                                                              |
| Profitability and Credit Quality                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| •Increased the Corporation’s net interest margin by 11 basis points year-over-year to 3.24%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| •Maintained stable credit quality on our loan portfolio, with a 7 basis points decrease