Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 34

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1A
Chunk 34
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monetary and
tax policies
of various
governmental bodies,
particularly the
Federal 
Reserve Board.
Changes in
these policies,
including changes
in interest
rates, impact
various aspects
of our
business, including 
loan originations,
the speed
of prepayments,
loan delinquencies,
the value
of our
investments, the
rates we
receive on
our loans 
and investment
securities, our
ability to
maintain and
generate deposits
and the
rates we
pay on
our deposits
and other
funding 
sources. The
effects of
these changes
may be
amplified if
we are
unable to
effectively manage
the sensitivity
of our
assets and 
liabilities to market interest rate changes.
The
rapid
rise
in
interest
rates
in
2022
resulted
in
approximately
$2.5
billion
in
unrealized
mark-to-market
losses
on 

  25 
available-for-sale securities held in our investment securities portfolio. In October 2022, we transferred U.S. Treasury securities with 
a fair value of approximately $6.5 billion (par value of
$7.4 billion), and with accumulated unrealized losses of $873 million, from our 
available-for-sale portfolio to
our held-to-maturity portfolio.
While the size
of our unrealized
mark-to-market losses on
available-for-
sale
securities
had
been
reduced
to
$1.3
billion
as
of
December
31,
2024,
if
interest
rates
were
to
again
rise
rapidly
or
for
a 
prolonged period, we may accumulate significant additional mark-to-market
losses on investment securities in our available-for-sale 
portfolio, which may adversely affect our tangible capital
and impact our ability to return capital to our
stockholders. 
For a discussion of the Corporation’s
interest rate sensitivity, please refer
to the “Risk Management” section of the MD&A 
in this Form 10-K. 
BUSINESS RISKS 
Negative
changes
in
the
financial
condition
of
our
clients
have
adversely
impacted
us
in
the
past
and
may
adversely 
impact us in the future. 

A significant portion of