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Popular Q1 Earnings Top Estimates on Higher NII, Expenses Decline Y/Y
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Key Takeaways
BPOP Q1 EPS of $3.78 beat estimates and rose from $2.56 a year ago on higher NII and fee income.
Popular saw revenues rise 10.3%, with NII up 10.7% and expenses down nearly 1% year over year.
BPOP faced headwinds from lower loans, higher provisions, and worsening credit quality metrics.
Popular, Inc. (BPOP - Free Report) reported first-quarter 2026 earnings per share of $3.78, which surpassed the Zacks Consensus Estimate of $3.30. The bottom line compared favorably with $2.56 in the year-ago quarter.
The results benefited primarily from a rise in net interest income (NII), fee income and deposit balances. A decline in operating expenses was also encouraging in the quarter. However, lower loan balances and higher provisions were headwinds.
The company’s net income (GAAP basis) came in at $245.7 million, which rose 38.4% year over year.
Popular’s Revenues Up & Expenses Down Y/Y
Total quarterly revenues were $835.8 million, rising 10.3% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $898.9 million.
Quarterly NII was $670.2 million, up 10.7% year over year. Also, net interest margin (non-taxable equivalent basis) expanded 26 basis points to 3.66%.
Non-interest income increased 8.9% year over year to $165.6 million. The rise was primarily driven by an increase in other service fees, mortgage banking activities, net gain, including impairment, on equity securities and other operating income.
Total operating expenses decreased nearly 1% year over year to $467.3 million. The fall primarily stemmed from a decrease in total business promotion, total other operating expenses and amortization of intangibles.
BPOP’s Loans Fall & Deposits Rise Sequentially
As of March 31, 2026, total loans held-in-portfolio decreased marginally on a sequential basis to $39.7 billion. Total deposits were $67.6 billion, up 2.1% from the previous quarter.
Popular’s Credit Quality Deteriorates
In the first quarter of 2026, Popular recorded a provision for credit losses of $75.7 million, up 16.1% from the prior-year quarter.
As of March 31, 2026, non-performing assets were $503.8 million, which increased 37.5% year over year. The non-performing assets to total assets ratio was 0.66% compared with 0.49% as of March 31, 2025.
BPOP’s Capital Ratios Decline
As of March 31, 2026, the Common Equity Tier 1 capital ratio and the Tier 1 capital ratio were 15.92% and 15.98%, respectively, down from 16.11% and 16.16% in the year-ago quarter.
Popular’s Share Repurchase Update
In the reported quarter, the company repurchased 1.16 million shares of common stock for $155.2 million. As of March 31, 2026, $126 million remained available under the current authorization.
Our View on BPOP
NII expansion and stabilizing funding costs are likely to support Popular’s top-line growth in the near term. Additionally, its strong balance sheet position, backed by solid liquidity, is expected to offer support. However, weakening asset quality, elevated provisions and significant exposure to the commercial loan portfolio are likely to affect financials.
Hancock Whitney Corp.’s (HWC - Free Report) first-quarter 2026 adjusted earnings per share of $1.52 beat the Zacks Consensus Estimate of $1.48. Further, the bottom line rose 10.1% from the prior-year quarter.
HWC’s results were supported by higher net interest income (NII) and modest loan growth. However, the quarter was significantly impacted by a securities portfolio restructuring loss. Deposits also declined modestly. Additionally, higher expenses and increased provisions acted as headwinds.
F.N.B. Corporation (FNB - Free Report) reported first-quarter 2026 earnings of 38 cents per share, which matched the Zacks Consensus Estimate. The bottom line jumped 18.8% year over year.
The quarterly results of FNB benefited from higher net interest income (NII) and non-interest income. Higher average loans and deposits were other positives. However, higher non-interest expenses and provisions hurt the results to some extent.
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Popular Q1 Earnings Top Estimates on Higher NII, Expenses Decline Y/Y
Key Takeaways
Popular, Inc. (BPOP - Free Report) reported first-quarter 2026 earnings per share of $3.78, which surpassed the Zacks Consensus Estimate of $3.30. The bottom line compared favorably with $2.56 in the year-ago quarter.
The results benefited primarily from a rise in net interest income (NII), fee income and deposit balances. A decline in operating expenses was also encouraging in the quarter. However, lower loan balances and higher provisions were headwinds.
The company’s net income (GAAP basis) came in at $245.7 million, which rose 38.4% year over year.
Popular’s Revenues Up & Expenses Down Y/Y
Total quarterly revenues were $835.8 million, rising 10.3% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $898.9 million.
Quarterly NII was $670.2 million, up 10.7% year over year. Also, net interest margin (non-taxable equivalent basis) expanded 26 basis points to 3.66%.
Non-interest income increased 8.9% year over year to $165.6 million. The rise was primarily driven by an increase in other service fees, mortgage banking activities, net gain, including impairment, on equity securities and other operating income.
Total operating expenses decreased nearly 1% year over year to $467.3 million. The fall primarily stemmed from a decrease in total business promotion, total other operating expenses and amortization of intangibles.
BPOP’s Loans Fall & Deposits Rise Sequentially
As of March 31, 2026, total loans held-in-portfolio decreased marginally on a sequential basis to $39.7 billion. Total deposits were $67.6 billion, up 2.1% from the previous quarter.
Popular’s Credit Quality Deteriorates
In the first quarter of 2026, Popular recorded a provision for credit losses of $75.7 million, up 16.1% from the prior-year quarter.
As of March 31, 2026, non-performing assets were $503.8 million, which increased 37.5% year over year. The non-performing assets to total assets ratio was 0.66% compared with 0.49% as of March 31, 2025.
BPOP’s Capital Ratios Decline
As of March 31, 2026, the Common Equity Tier 1 capital ratio and the Tier 1 capital ratio were 15.92% and 15.98%, respectively, down from 16.11% and 16.16% in the year-ago quarter.
Popular’s Share Repurchase Update
In the reported quarter, the company repurchased 1.16 million shares of common stock for $155.2 million. As of March 31, 2026, $126 million remained available under the current authorization.
Our View on BPOP
NII expansion and stabilizing funding costs are likely to support Popular’s top-line growth in the near term. Additionally, its strong balance sheet position, backed by solid liquidity, is expected to offer support. However, weakening asset quality, elevated provisions and significant exposure to the commercial loan portfolio are likely to affect financials.
Popular, Inc. Price, Consensus and EPS Surprise
Popular, Inc. price-consensus-eps-surprise-chart | Popular, Inc. Quote
Currently, Popular carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of BPOP’s Peers
Hancock Whitney Corp.’s (HWC - Free Report) first-quarter 2026 adjusted earnings per share of $1.52 beat the Zacks Consensus Estimate of $1.48. Further, the bottom line rose 10.1% from the prior-year quarter.
HWC’s results were supported by higher net interest income (NII) and modest loan growth. However, the quarter was significantly impacted by a securities portfolio restructuring loss. Deposits also declined modestly. Additionally, higher expenses and increased provisions acted as headwinds.
F.N.B. Corporation (FNB - Free Report) reported first-quarter 2026 earnings of 38 cents per share, which matched the Zacks Consensus Estimate. The bottom line jumped 18.8% year over year.
The quarterly results of FNB benefited from higher net interest income (NII) and non-interest income. Higher average loans and deposits were other positives. However, higher non-interest expenses and provisions hurt the results to some extent.