Company: BPOPM
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001140361-25-010189
Chunk: 103

Company: POPULAR, INC.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 103
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 August 15, 2022, the Corporation completed the sale of its remaining 7,065,634 shares of common stock of Evertec (the “Evertec Stock Sale”, and collectively with the Business Acquisition Transaction, the “Evertec Transactions”). Following the Evertec Stock Sale, Popular no longer owns any Evertec common stock. The impact of the gain on the sale of Evertec shares used as consideration for the Business Acquisition Transaction in exchange for the acquired applications on July 1, 2022 and the net expense associated with the renegotiation of the MSA resulted in an after-tax gain of $97.9 million, while the Evertec Stock Sale and the related accounting adjustments resulted in an after-tax gain of $128.8 million, recorded during the third quarter of 2022, for an aggregate after-tax gain of $226.6 million. |

| [2] | During the fourth quarter of 2022, the Corporation recorded a partial reversal of the deferred tax asset valuation allowance of the U.S. operations of $68.2 million. As of December 31, 2022, the deferred tax asset (“DTA”) for the |

96 | 2025 POPULAR, INC. PROXY STATEMENT

TABLE OF CONTENTS

U.S. operations, mainly related to net operating losses (“NOLs”), was valued at $278 million, net of the corresponding valuation allowance of $402 million. The additional reversal during the fourth quarter was determined based on management’s expectation of the realization of additional amounts of federal and state NOLs over their remaining carryover period. Return on Average Tangible Common Equity (“ROATCE”)

| (In thousands)                       |     |      2022 |     |      2023 |     |      2024 |     | 3-yr. avg. |
| Adjusted net income (non-GAAP)       |     |  $807,770 |     |  $586,607 |     |  $623,265 |     |            |
| Preferred dividends                  |     |    -1,412 |     |    -1,412 |     |    -1,412 |     |            |
| Adjusted net income for common stock |     |   806,358 |     |   585,195 |     |   621,853 |     |            |
| Average Tangible Common Equity       |     | 5,212,836 |     | 5,745,420 |