Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 20

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1
Chunk 20
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. 
FDIC Insurance
Substantially all the deposits of BPPR and PB are insured up to applicable limits by the Deposit Insurance Fund (“DIF”) of 
the
FDIC,
and
BPPR
and
PB
are
subject
to
FDIC
deposit
insurance
assessments
to
maintain
the
DIF.
Deposit
insurance 
assessments are
based on
the average
consolidated total
assets of
the insured
depository institution
minus the
average tangible 
equity of the institution during the assessment period. For larger
depository institutions with over $10 billion in assets,
such as BPPR 
and PB, the FDIC uses a “scorecard” methodology, which considers CAMELS ratings, among
other measures, that seeks to capture 
both the probability that an individual large institution will
fail and the magnitude of the impact on the DIF
if such a failure occurs. The 
FDIC has the ability
to make discretionary adjustments to the
total score based upon significant
risk factors that are not
adequately 
captured in the calculations. The initial base deposit insurance assessment rate for larger depository institutions ranges from 3 to 30 
basis points on an annualized basis.
After the effect of
potential base-rate adjustments, the total base assessment rate could
range 
from 1.5 to 40 basis points on an annualized
basis. 
In
October
2022,
the
FDIC
finalized
a
rule
that
increased
initial
base
deposit
insurance
assessment
rates
by
2
basis 
points, beginning with the first quarterly assessment period of 2023. The FDIC, as required under the Federal Deposit Insurance Act 
(“FDIA”), established
a plan
in September
2020 to
restore the
DIF reserve
ratio to
meet or
exceed the
statutory minimum
of 1.35 
percent within
eight years. The
increased assessment is
intended to improve
the likelihood that
the DIF
reserve ratio would
reach 
the required minimum by the statutory deadline
of September 30, 2028. 
As of December 31, 2024, BPPR and
PB had a DIF average total asset
less average tangible equity assessment base of 
approximately $67 billion. 
On
November 16,
202