Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 28

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1
Chunk 28
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the 
institution fails to comply with the
plan. The federal banking agencies may not
accept a capital restoration plan without determining, 
among other things,
that the plan
is based
on realistic assumptions
and is
likely to succeed
in restoring the
depository institution’s 
capital. If a depository institution fails to submit an
acceptable plan, it is treated as if it is
significantly undercapitalized. 
Significantly
undercapitalized
depository
institutions
may
be
subject
to
a
number
of
requirements
and
restrictions, 
including orders to
sell sufficient voting
stock to become
adequately capitalized, requirements to
reduce total assets
and cessation 
of receipt
of deposits
from correspondent
banks. Critically
undercapitalized depository
institutions are
subject to
appointment of
a 
receiver or conservator. 

  17 
The capital-based prompt
corrective action provisions
of the FDIA
apply to
the FDIC-insured depository
institutions such 
as
BPPR
and
PB,
but
they
are
not
directly
applicable
to
holding
companies
such
as
Popular
and
PNA,
which
control
such 
institutions. As of December 31, 2024,
both BPPR and PB met the quantitative requirements
for ‘well capitalized’ status. 
Restrictions on Dividends and Repurchases 
The
principal
sources
of
funding
for
Popular
and
PNA
have
included
dividends
received
from
their
banking
and
non-
banking subsidiaries, asset sales
and proceeds from
the issuance of
debt and equity.
Various statutory
provisions limit the amount 
of
dividends an
insured depository
institution may
pay to
its
holding company
without regulatory
approval. A
member bank
must 
obtain the approval of the
Federal Reserve Board for any
dividend, if the total of
all dividends declared by the
member bank during 
the calendar year would exceed the total of its net income for that year,
combined with its retained net income for the preceding two 
years, after
considering those
years’ dividend
activity,
less any
required transfers to
surplus or
to a
fund for
the retirement
of any 
preferred stock