Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 60

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 5
Chunk 60
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company.” As noted above, a bank
holding company electing to be a financial 
holding company must itself be and remain
well capitalized and well managed. The Federal Reserve Board’s
regulations applicable 
to bank holding companies separately define
“well capitalized” for bank holding companies,
such as Popular,
to require maintaining 
a tier 1 capital
ratio of at least
6% and a total capital
ratio of at least 10%.
Popular and PNA have elected
to be treated as
financial 
holding
companies.
A
depository
institution
is
deemed
to
be
“well
managed”
if,
at
its
most
recent
inspection,
examination
or 
subsequent review
by the
appropriate federal banking
agency (or
the appropriate state
banking agency), the
depository institution 
received
at
least
a
“satisfactory”
composite
rating
and
at
least
a
“satisfactory”
rating
for
the
management
component
of
the 
composite
rating.
If,
after
becoming
a
financial
holding
company,
the
company
fails
to
continue
to
meet
any
of
the
capital
or 
management requirements
for financial
holding company
status, the
company
must
enter into
a confidential
agreement with
the 
Federal
Reserve
Board
to
comply
with
all
applicable capital
and
management
requirements.
If
the
company
does
not
return
to 
compliance
within
180
days,
the
Federal
Reserve
Board
may
extend
the
agreement
or
may
order
the
company
to
divest
its 
subsidiary banks or the
company may discontinue, or
divest investments in companies
engaged in, activities permissible only
for a 
bank holding company that has elected to be treated as a financial
holding company. In addition, if a depository institution subsidiary 
controlled by a financial holding company does not
maintain a CRA rating of at least “satisfactory,” the financial holding company
will 
be subject to restrictions on certain new activities
and acquisitions. 
The Federal Reserve Board
may in certain circumstances limit
our ability to conduct
activities and make acquisitions that 
would otherwise be permissible for
a financial holding company.
Furthermore,