Popular, Inc. filed a Current Report on Form 8-K on November 9, 2026, disclosing a $38 million additional provision for credit losses recognized as a subsequent event in its third-quarter 2026 financial statements, stemming from a quick service restaurant borrower that filed for Chapter 11 bankruptcy.

Key Highlights

  • $38 million additional provision: Popular, Inc. recognized an extra provision for credit losses of $38 million for the quarter ended September 30, 2026, related to a single commercial and industrial loan relationship in the quick service restaurant industry at Banco Popular de Puerto Rico.
  • Borrower filed for Chapter 11: According to the filing, the borrower "substantially ceased operations and filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code" after the original earnings press release was issued.
  • Net income revised to $242,385 thousand: Updated net income for Q3 2026 is $242,385 thousand, down from $266,334 thousand as reported in the original earnings release, a decrease of $23,949 thousand.
  • Basic EPS revised to $3.84: Updated basic earnings per share fell to $3.84 from $4.21 as originally reported; diluted EPS was revised to $3.83 from $4.21.
  • Allowance for Credit Losses increased to $808,810 thousand: The updated allowance rose $38,123 thousand from the originally reported $770,687 thousand.
  • Full-year 2026 NCO guidance raised: The corporation now expects net charge-offs for full-year 2026 to be in the range of 90 bps to 95 bps, up from the prior guidance of 80 bps to 90 bps, due to an expected fourth-quarter charge-off related to the same relationship.
  • Common Equity Tier 1 Capital at 16.01%: The updated CET1 ratio is 16.01%, compared to 16.06% as originally reported, a decrease of 5 basis points.

Popular, Inc. Revises Q3 2026 Financials After QSR Borrower Bankruptcy

According to the filing, Popular, Inc. (NASDAQ:BPOP) disclosed in its Form 8-K dated November 9, 2026, that a borrower in the quick service restaurant industry with a commercial and industrial loan relationship with Banco Popular de Puerto Rico substantially ceased operations and filed for Chapter 11 bankruptcy after the corporation's original Q3 2026 earnings press release had been issued. The filing stated that the relationship had entered nonperforming status during the second quarter of 2026, and that certain reserves and charge-offs had already been recorded in the third quarter. The corporation determined these developments constituted a recognized subsequent event requiring adjustment of its interim consolidated financial statements for the quarter ended September 30, 2026, which had not yet been issued at that time.

As a result, the corporation recognized an additional provision for credit losses of $38 million for Q3 2026, bringing total provision for credit losses to $96,716 thousand, up from $58,593 thousand as originally reported. Net income after the revision stands at $242,385 thousand, compared to $266,334 thousand in the original earnings release. The allowance for credit losses to loans held-in-portfolio ratio increased to 2.02% from 1.92%, and total assets were revised to $77,735,045 thousand from $77,758,872 thousand. Return on average tangible common equity (a non-GAAP measure) was updated to 14.39% from 15.80%, a decrease of 141 basis points, as the filing noted these non-GAAP measures "are intended to supplement, and should not be considered a substitute for, GAAP results."

The filing also indicated that the corporation's full-year 2026 net charge-off guidance has been revised upward to 90 bps to 95 bps from 80 bps to 90 bps, reflecting the expected fourth-quarter charge-off connected to this borrower relationship. The corporation noted that all other elements of its full-year 2026 outlook, as included in the original earnings press release, remain unchanged. The filing contains forward-looking statements that, according to Popular, Inc., "are not guarantees of future performance" and involve risks and uncertainties.

What Was Disclosed

Popular, Inc. filed an 8-K on November 9, 2026, revising its Q3 2026 financial results to reflect a $38 million additional credit loss provision tied to a quick service restaurant borrower's Chapter 11 filing, and raised its full-year 2026 net charge-off guidance to 90-95 bps.