Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 21

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1
Chunk 21
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3,
the
FDIC finalized
a
rule
that
imposes
a special
assessment to
recover the
costs to
the
DIF 
resulting
from
the
FDIC’s
use,
in
March
2023,
of
the systemic
risk
exception to
the
least-cost resolution
test
under the
FDIA
in 
connection with the
receiverships of Silicon
Valley Bank
and Signature Bank.
The FDIC estimated
in approving the
rule that those 
assessed losses
total approximately $16.3
billion. The
rule provides
that this
loss estimate
will be
periodically adjusted, which
will 
affect
the
amount
of
the
special assessment.
Under the
rule, the
assessment
base
is
the
estimated uninsured
deposits that
an 
insured depository
institution reported
in its
Consolidated Reports of
Condition and Income
(“Call Report”)
at December
31, 2022, 
excluding the
first
$5 billion
in estimated
uninsured deposits.
For a
holding company
that
has more
than one
insured depository 
institution
subsidiary,
such
as
Popular,
the
$5
billion
exclusion
is
allocated
among
the
company’s
insured
depository
institution 
subsidiaries
in
proportion
to
each
insured
depository
institution’s
estimated
uninsured
deposits.
The
special
assessments
are 
collected at an
annual rate of
approximately 13.4 basis points
per year (3.36
basis points per
quarter) over eight quarters,
with the 
first assessment period having begun
January 1, 2024. Because the
estimated loss pursuant to the
systemic risk determination will 
be periodically adjusted,
the FDIC retains
the ability to
cease collection early,
extend the special
assessment collection period
and 
impose a
final shortfall
special assessment
on a
one-time basis.
In June
2024, due
to the
increase in
the estimate
of losses,
the 
FDIC announced that it
projects that the special assessment will
be collected for an additional
two quarters beyond the initial
eight-
quarter collection period, at a lower rate