Popular, Inc. (NASDAQ:BPOP) reported first-quarter 2026 results on Thursday that topped profit expectations, although revenue came in below forecasts.
Shares gained 2.39% following the announcement.
Strong earnings growth
The bank posted earnings per share of $3.78, exceeding the analyst consensus of $3.31.
Net income totaled $245.7 million for the quarter ended March 31, 2026, rising from $233.9 million in the previous quarter and $177.5 million in the same period last year.
Revenue misses estimates
Total revenue reached $835.81 million, falling short of the $849.66 million analysts had expected.
Overall revenue declined compared to the first quarter of 2025, reflecting lower non-interest income despite stronger net interest performance.
Net interest income and margins improve
Net interest income increased to $670.2 million, up $12.6 million from the prior quarter, supported by reduced deposit costs.
Net interest margin expanded to 3.66%, compared with 3.61% in the fourth quarter.
“We delivered a strong start to 2026, with net income of $246 million and earnings per share of $3.78, up 38% and 48%, respectively, YoY, reflecting disciplined execution across our businesses and continued momentum throughout the franchise,” said Javier D. Ferrer, President and Chief Executive Officer.
Expenses decline and credit quality improves
Operating expenses came in at $467.3 million, down $5.9 million from the fourth quarter.
Excluding a $15.3 million partial reversal of an FDIC special assessment in the prior quarter, expenses fell by $21.2 million.
Credit quality showed signs of improvement, with non-performing loans decreasing to $458.1 million from $498.3 million in the previous quarter.
Mixed credit trends
Net charge-offs rose to $60.0 million from $49.6 million, mainly due to an $11.1 million charge-off on a commercial loan.
The allowance for credit losses ratio increased slightly to 2.10% from 2.05%.
Shareholder returns remain strong
The company returned $204 million to shareholders during the quarter, including $155.2 million in share buybacks and dividends.
Return on average tangible common equity improved to 15.46%, up from 14.39% in the prior quarter.