Popular, Inc.

Good day and thank you for standing by. Welcome to the Popular, Inc. second quarter 2026 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, the Investor Relations Officer at Popular, Paul Cardillo. Please go ahead.

Good morning and thank you for joining us. With me on the call today is our President and CEO, Javier Ferrer, our CFO, Jorge Garcia, and our CRO, Lidio Soriano. They will review our results for the second quarter and then answer your questions. Other members of our management team will also be available during the Q&A session. Before we begin, I would like to remind you that during today's call, we may make forward-looking statements regarding Popular, such as projections of revenue, earnings, credit quality, expenses, taxes, and capital, as well as statements regarding Popular's plans and objectives. These statements are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements are discussed in today's earnings release and our SEC filings. You may find today's press releases and our SEC filings on our web page at popular.com. I will now turn the call over to Javier.

Well, thank you, Paul, and good morning, everyone. Before going into our results, I'd like to comment briefly on this morning's announcement about my retirement at the end of August. After close to 12 incredible years at Popular and with the organization in a very strong position, I have decided to focus on my health and spending meaningful time with my family and close friends. I do so with great pride about what we have accomplished as a team and with complete confidence that Popular is left in the best possible hands. Jorge has the experience The vision and the heart to lead this organization forward with strength and care. He's not only a great professional, but even a better human being. I will work closely with him in the coming weeks in what will surely be a successful transition. Jorge also has the support of an extraordinary management team, which includes among other talented and dedicated leaders Lidio as the new CFO, and Luis Sosa as the new CRO. I extend my most sincere congratulations to the three of them. These appointments reflect a thoughtful succession process and demonstrate the depth, experience, and strength of our leaders. It's not about one person. It's about the whole institution and the quality of its people. Okay. With that, please turn to slide four to discuss the highlights of a very strong quarter. We reported net income of $278 million, an earnings per share of $4.35, an increase of $0.57 per share, or 15% from the first quarter. Results reflected higher net interest income, solid fee generation, continued balance sheet growth, and Strong Capital Generation. Compared to the second quarter of last year, earnings per share increased by 41%. Our ROTC improved to 17% during the quarter. We are very pleased with this result and remain focused on delivering sustainable, through the cycle, shareholder returns. Loans held in portfolio increased by $460 million during the quarter. Javier Ferrer-Fernández, Jorge García, Lidio Soriano, Manuel Chinea, Denissa Rodriguez Adorno, Maria Cristina Gonzalez Noguera Noguera Noguera Repurchasing $125 million of common stock, fully utilizing our prior $500 million authorization, and paying our quarterly dividend of $0.75 per share. Earlier this morning, we announced a planned 20% increase in our quarterly dividend to $0.90 per share and a new $1 billion share repurchase authorization. Before turning it to Jorge, I will comment on the business environment in Puerto Rico briefly. Business activity in Puerto Rico remained stable during the second quarter. While some indicators have somewhat moderated from the strong levels experienced over the last several years, overall economic conditions continue to be supported by a healthy labor market, strong tourism activity, ongoing infrastructure investment, and strong consumer spending. The labor market is healthy. with unemployment at 5.8% in June, employment remained broadly stable and continued to benefit from strength in construction, leisure, and hospitality. Consumer spending remained strong. Popular's debit and credit card sales volume increased by more than 7% year-over-year, demonstrating continued activity across our customer base. Mortgage balances at Banco Popular increased modestly during the quarter, and demand continues to be supported by strong underlying fundamentals, although affordability remains a constraint. Construction activity remains strong and is being supported by both public and private investment, including the continued deployment of federal disaster recovery funds and a growing pipeline of private sector projects. We are encouraged by the unshoring and Manufacturing Investment Activity. Since 2025, the manufacturing sector has announced approximately 2.3 billion of investments and more than 5,000 direct jobs across pharmaceutical, aerospace, logistics, technology and advanced manufacturing sectors. Tourism continues to be a major source of strength for the Puerto Rico economy. Hotel demand approached 2 million room nights, or 81% occupancy, from January through May of this year, increasing approximately 7% versus the same period in 2025. To boot, cruise passenger arrivals increased approximately 45% year-over-year through May. Air passenger traffic at Luis Muñoz Landing Airport moderated a bit from record levels, declining approximately 4% year over year during the quarter. However, Puerto Rico continues to benefit from airline expansion announcements, including new routes and increased service from JetBlue, Southwest, Frontier, and Avelo Airlines, which should support future visitation and economic activity. Moving to our strategic framework, we continue advancing our three objectives. to be the number one bank for our customers, to be simple and efficient, and to be a top performing bank. Our strategy is centered on delivering innovative, relevant solutions to our clients that deepen relationships, improve their experience in every interaction with us, and support sustainable growth across the markets we serve. To achieve this, we are focused on providing our clients with the flexibility to interact with popular through the channel that best meets their needs while maintaining our high service standards. Frankly, it comes down to delivering great experiences. To blend the speed and convenience of self-service with personalized support and the human touch, we have continued to invest in our physical and digital channels. Key examples are the ongoing modernization of our retail network to enhance Thank you for joining us today. with our retail customers and help them make informed financial decisions. These initiatives are delivering measurable results. On the commercial side, our modernized cash management platform is improving the client's experience through mobile functionality and enhanced money movement capabilities. Also, our newly launched corporate credit card solutions continue to gain traction and already account for nearly half of our commercial purchase volume. We continue to expand our targeted segments strategy by tailoring our offerings to the unique needs of specific client groups throughout their personal and professional journeys. In Puerto Rico, we are deepening relationships with healthcare professionals and pursuing opportunities in other attractive, high-value segments. In the US, we're working to enhance Our community association banking business developing capabilities that simplify the customer experience and enable business growth. Together, these initiatives reinforce the strategic intent behind our new institutional campaign, Aquí Creces. The campaign reflects our conviction that Popular is uniquely positioned to support The growth of our customers, businesses, and communities we serve. As they grow, we grow. I will now turn the call over to Jorge for more details on our financial results. Jorge?