"Puerto Rico-based Popular Bank is exiting the mortgage business, according to an announcement made last week during the company's third-quarter earnings call. Specifically, as part of our ongoing efforts to improve profitability, we decided to exit the U.S. residential mortgage origination business and to close four underperforming branches in the New York metro area, said Jorge Garcia, Popular's chief financial officer. We will remain focused on areas where we feel we can invest to achieve improved operating leverage."
"The company, which has branches in New York, New Jersey and South Florida, did not specify how many employees will be impacted by the closure. It's not easy impacting our colleagues, Garcia continued. We don't believe, given our funding profile and deposit franchise in the U.S., that's a business that we really want to be in at this time. Garcia remarked that the company expects to reinvest in other things and move toward a sustainable performance."
"Popular Bank reported net income of $211.3 million in Q3 2025, up slightly from $210.4 million in the previous quarter. But the company's U.S. operations posted net income of $14.3 million for the third quarter, a drop from $16.4 million in Q2 2025. In addition, operating expenses for U.S. operations increased by $1.6 million to a total of $95.1 million, largely reflective of higher compensation and technology costs."
Popular Bank will exit the U.S. residential mortgage origination business and close four underperforming branches in the New York metro area to improve profitability. The bank will remain focused on areas where it can invest to achieve improved operating leverage and plans to reinvest toward sustainable performance. The company did not specify how many employees will be affected by the branch closures and acknowledged the difficulty of impacting colleagues. Popular reported consolidated net income of $211.3 million in Q3 2025, while U.S. operations net income fell to $14.3 million amid higher U.S. operating expenses driven by compensation and technology costs.
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