Regulatory capital requirements

12 Months Ended

Dec. 31, 2024

Regulatory Capital Requirements

Regulatory Capital Requirments

Note 20 – Regulatory capital requirements

The Corporation, BPPR and PB are subject to various regulatory capital requirements imposed by the federal banking agencies.

Failure to meet minimum capital requirements can lead to certain mandatory and additional discretionary actions by regulators that,

if undertaken, could have a direct material effect on the Corporation’s consolidated financial statements. Popular, Inc., BPPR and

PB are subject to Basel III capital requirements, including minimum and well capitalized regulatory capital ratios and compliance

with the standardized approach for determining risk-weighted assets. 

The Basel III Capital Rules established a Common Equity Tier I (“CET1”) capital measure and related regulatory capital ratio CET1

to risk-weighted assets. 

The Basel III Capital Rules provide that a depository institution will be deemed to be well capitalized if it maintained a leverage ratio

of at least

5

%, a CET1 ratio of at least

6.5

%, a Tier 1 risk-based capital ratio of at least

8

% and a total risk-based ratio of at least

10

%. Management has determined that at December 31, 2024 and 2023, the Corporation exceeded all capital adequacy

requirements to which it is subject.

The Corporation has been designated by the Federal Reserve Board as a Financial Holding Company (“FHC”) and is eligible to

engage in certain financial activities permitted under the Gramm-Leach-Bliley Act of 1999.

Pursuant to the adoption of the CECL accounting standard on January 1, 2020, the Corporation elected to use a five-year transition

period option as permitted in the final interim regulatory capital rules effective March 31, 2020. The five-year transition period

provision delays for two years the estimated impact of the adoption of the CECL accounting standard on regulatory capital, followed

by a three-year transition period to phase out the aggregate amount of the capital benefit provided during the initial two-year delay.

At December 31, 2024 and 2023, BPPR and PB were well-capitalized under the regulatory framework for prompt corrective action. 

The following tables present the Corporation’s risk-based capital and leverage ratios at December 31, 2024 and 2023 under the

Basel III regulatory guidance.

Actual 

Capital adequacy minimum

requirement (including

conservation capital buffer) [1]

(Dollars in thousands)

Amount 

Ratio

Amount

Ratio

2024

Total Capital (to Risk-Weighted Assets):

Corporation

$

6,968,203

17.83

%

$

4,102,713

10.50

%

BPPR

4,734,198

17.04

2,917,399

10.50

PB

1,524,930

13.93

1,149,278

10.50

Common Equity Tier I Capital (to Risk-Weighted Assets):

Corporation

$

6,262,792

16.03

%

$

2,735,142

7.00

%

BPPR

4,383,759

15.78

1,944,932

7.00

PB

1,461,436

13.35

766,186

7.00

Tier I Capital (to Risk-Weighted Assets):

Corporation

$

6,284,935

16.08

%

$

3,321,244

8.50

%

BPPR

4,383,759

15.78

2,361,704

8.50

PB

1,461,436

13.35

930,368

8.50

Tier I Capital (to Average Assets):

Corporation 

$

6,284,935

8.66

%

$

2,903,739

4.00

% 

BPPR

4,383,759

7.48

2,343,289

4.00

PB

1,461,436

10.64

549,618

4.00

[1] The conservation capital buffer included for these ratios is

2.5

%, except for the Tier I to Average Asset ratio for which the buffer is not applicable

and therefore the capital adequacy minimum of

4

% is presented.

Actual 

Capital adequacy minimum

requirement (including

conservation capital buffer)

(Dollars in thousands)

Amount 

Ratio

Amount

Ratio

2023

Total Capital (to Risk-Weighted Assets):

Corporation

$

6,733,964

18.13

%

$

3,900,365

10.500

%

BPPR

4,811,675

18.15

2,782,976

10.500

PB

1,491,549

14.38

1,088,754

10.500

Common Equity Tier I Capital (to Risk-Weighted Assets):

Corporation

$

6,053,315

16.30

%

$

2,600,243

7.000

%

BPPR

4,478,033

16.90

1,855,317

7.000

PB

1,426,037

13.75

725,836

7.000

Tier I Capital (to Risk-Weighted Assets):

Corporation

$

6,075,458

16.36

%

$

3,157,438

8.500

%

BPPR

4,478,033

16.90

2,252,885

8.500

PB

1,426,037

13.75

881,372

8.500

Tier I Capital (to Average Assets):

Corporation 

$

6,075,458

8.51

%

$

2,854,127

4

%

BPPR

4,478,033

7.64

2,343,174

4

PB

1,426,037

11.23

507,942

4

The following table presents the minimum amounts and ratios for the Corporation’s banks to be categorized as well-capitalized.

2024

2023

(Dollars in thousands)

Amount 

Ratio 

Amount 

Ratio

Total Capital (to Risk-Weighted Assets):

BPPR

$

2,778,475

10

%

$

2,650,453

10

%

PB

1,094,551

10

1,036,909

10

Common Equity Tier I Capital (to Risk-Weighted Assets):

BPPR

$

1,806,009

6.5

%

$

1,722,795

6.5

%

PB

711,458

6.5

673,991

6.5

Tier I Capital (to Risk-Weighted Assets):

BPPR

$

2,222,780

8

%

$

2,120,363

8

%

PB

875,641

8

829,527

8

Tier I Capital (to Average Assets):

BPPR

$

2,929,111

5

%

$

2,928,968

5

%

PB

687,022

5

634,927

5