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Goodwill and other intangible assets | 9 Months Ended
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Sep. 30, 2025
Goodwill and Intangible Assets Disclosure |
Goodwill And Other Intangible Assets | Note 11 – Goodwill and other intangible assets Goodwill The following table shows the changes in the carrying amount of goodwill for the nine months ended September 30, 2025 and 2024, by reportable segments (refer to Note 32 for the definition of the Corporation’s reportable segment): September 30, 2025 Balance at Goodwill Balance at (In thousands) January 1, 2025 impairment September 30, 2025 Banco Popular de Puerto Rico $ 434,909 $ - $ 434,909 Popular U.S. 368,045 (13,000) 355,045 Total Popular, Inc. $ 802,954 $ (13,000) $ 789,954 September 30, 2024 Balance at Goodwill Balance at (In thousands) January 1, 2024 impairment September 30, 2024 Banco Popular de Puerto Rico $ 436,383 $ - $ 436,383 Popular U.S. 368,045 - 368,045 Total Popular, Inc. $ 804,428 $ - $ 804,428 Other Intangible Assets The following table reflects the components of other intangible assets subject to amortization: Gross Carrying Accumulated Net Carrying (In thousands) Amount Amortization Value September 30, 2025 Core deposits $ 12,810 $ 12,810 $ - Other customer relationships 14,286 9,586 4,700 Total other intangible assets $ 27,096 $ 22,396 $ 4,700 December 31, 2024 Core deposits $ 12,810 $ 12,595 $ 215 Other customer relationships 14,286 8,435 5,851 Total other intangible assets $ 27,096 $ 21,030 $ 6,066 During the quarter ended September 30, 2025, the Corporation recognized $ 0.4 million in amortization expense related to other intangible assets with definite useful lives (September 30, 2024 - $ 0.7 million). During the nine months ended September 30, 2025, the Corporation recognized $ 1.4 million in amortization related to other intangible assets with definite useful lives (September 30, 2024 - $ 2.2 million). The following table presents the estimated amortization of the intangible assets with definite useful lives for each of the following periods: (In thousands) Remaining 2025 $ 384 Year 2026 1,440 Year 2027 959 Year 2028 959 Year 2029 958 Results of the Annual Goodwill Impairment Test The Corporation’s goodwill and other identifiable intangible assets having an indefinite useful life are tested for impairment, at least annually and on a more frequent basis if events or circumstances indicate impairment could have taken place. Such events could include, among others, a significant adverse change in the business climate, an adverse action by a regulator, an unanticipated change in the competitive environment and a decision to change the operations or dispose of a reporting unit. Management monitors events or changes in circumstances between annual tests to determine if these events or changes in circumstances would more likely than not reduce the fair value of its reporting units below their carrying amounts. The reporting units evaluated are one level below the business segments and correspond to the legal entities within each reportable segment. In accordance with push-down accounting, all goodwill is assigned to the reporting units following a business combination. When evaluating goodwill for impairment, the Corporation may decide to first perform a qualitative assessment, or “Step Zero” impairment test, to determine whether it is more likely than not that impairment has occurred. The qualitative assessment includes a review of macroeconomic conditions, industry and market considerations, internal cost factors, and our own overall financial and share price performance, among other factors. If it is determined that it is more likely than not that the carrying amounts of our reporting units exceed their fair value, the Corporation will perform a quantitative assessment and calculate the estimated fair value of the respective reporting unit. If the carrying amount of a reporting unit’s goodwill exceeds the fair value of that goodwill, an impairment loss is recognized. To assess a reporting unit’s fair value, the Corporation generally uses a combination of methods such as discounted cash flow analysis and market multiples. The financial projections used in the discounted cash flow (“DCF”) valuation analysis are based on the most recent (as of the valuation date) projections presented to the Corporation’s Asset / Liability Management Committee (“ALCO”). These projections reflect management’s expectations for the reporting unit’s financial prospects considering economic and industry conditions. The Corporation evaluates the results obtained under the valuation methodology to identify and understand the key value drivers, to ascertain that the results obtained are reasonable and appropriate under the circumstances. Elements considered include current market and economic conditions, developments in specific lines of business, and any particular features of the individual reporting units. The Corporation completed its annual goodwill impairment evaluation during the third quarter of 2025, using July 31, 2025 as the evaluation date. Through a qualitative analysis, Step Zero, the Corporation determined that for all reporting units, except for the Popular Equipment Finance (‘’PEF’’) reporting unit, it is more-likely-than-not that the fair value exceeded the carrying value. As a result, the Corporation performed a quantitative test to assess PEF’s goodwill impairment. The results of the PEF annual goodwill impairment test as of July 31, 2025, indicated that the estimated fair value was below it’s carrying amount. Accordingly, the Corporation recognized a goodwill impairment charge of $ 13.0 million, which was mainly driven by lower projected earnings for the forecasted period, primarily due to lower lending activity. The following tables present the gross amount of goodwill and accumulated impairment losses by reportable segments. September 30, 2025 Balance at Balance at September 30, Accumulated September 30, 2025 impairment 2025 (In thousands) (gross amounts) losses (net amounts) Banco Popular de Puerto Rico $ 438,710 $ 3,801 $ 434,909 Popular U.S. 564,456 209,411 355,045 Total Popular, Inc. $ 1,003,166 $ 213,212 $ 789,954 December 31, 2024 Balance at Balance at December 31, Accumulated December 31, 2024 impairment 2024 (In thousands) (gross amounts) losses (net amounts) Banco Popular de Puerto Rico $ 438,710 $ 3,801 $ 434,909 Popular U.S. 564,456 196,411 368,045 Total Popular, Inc. $ 1,003,166 $ 200,212 $ 802,954

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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