POPULAR, INC.BPOP
POPULAR, INC. Goodwill & Intangibles Disclosure
Note 14 – Goodwill and other intangible assets
Goodwill
The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024, by
reportable segments (refer to Note 36 for the definition of the Corporation’s reportable segments):
December 31, 2025
Balance at
Goodwill
Balance at
(In thousands)
January 1, 2025
impairment
December 31, 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
December 31, 2024
Balance at
Write down from
Balance at
(In thousands)
January 1, 2024
December 31, 2024
Banco Popular de Puerto Rico
$
436,383
$
(1,474)
$
434,909
Popular U.S.
368,045
-
368,045
Total Popular, Inc.
$
804,428
$
(1,474)
$
802,954
[1] During the year ended December 31, 2024, the Corporation recognized a write-down to goodwill due to the sale of its daily-rental business.
Other intangible assets
At December 31, 2025, the Corporation had intangible assets subject to amortization amounting to $
4.3
2024- $
6.1
Results of the Annual Goodwill Impairment Test
The Corporation evaluates goodwill 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.
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 its
carrying amount. Accordingly, the Corporation recognized a goodwill impairment charge of $
13.0
lower projected earnings for the forecasted period, primarily due to lower lending activity.
Changes to the Annual Goodwill Impairment Test Date
The Corporation has historically evaluated its goodwill for impairment annually as of July 31 or more frequently. After completing the
annual test during the third quarter of 2025, the Corporation changed the date of its annual assessment of goodwill to October 1st
for all reporting units. The change in testing date for goodwill is a change in accounting principle, which management believes is
preferable as the new date of the assessment will create a more efficient and timely process surrounding the impairment tests by
better aligning with its annual planning and budgeting process.
The Corporation has determined that this change does not have a
material effect on its financial statements considering the requirements to assess goodwill impairment upon certain triggering events
in current and prior periods and its internal control over financial reporting. The Corporation has determined that it is impracticable to
objectively determine projected cash flows and related valuation estimates that would have been used as of each October 1st of
prior reporting periods without the use of hindsight. As such, the Corporation prospectively applied the change in annual goodwill
impairment testing date from October 1, 2025.
As of October 1, 2025, management performed a qualitative impairment assessment and determined that for the Puerto Rico based
reporting units, it was more-likely-than-not that the fair value exceeded their carrying value, resulting in no impairment. For the U.S.
based subsidiaries, Popular Bank and PEF, a quantitative goodwill impairment test was performed, resulting in no impairment.
The following tables present the gross amount of goodwill and accumulated impairment losses by reportable segments.
December 31, 2025
Balance at
Balance at
December 31,
Accumulated
December 31,
2025
impairment
2025
(In thousands)
losses
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
December 31,
Accumulated
December 31,
2024
impairment
2024
(In thousands)
losses
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
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.