10-K: Popular, Inc. Details Securities Registered Under Exchange Act in Latest 10-K Filing

Popular, Inc.'s recent 10-K filing provides a detailed description of its registered securities, including common stock and trust preferred securities, as of December 31, 2023.

Summary

• Popular, Inc.'s 10-K filing details the securities registered under Section 12 of the Securities Exchange Act of 1934.
• The registered securities include common stock with a par value of $0.01 per share and 6.125% Cumulative Monthly Income Trust Preferred Securities.
• The filing describes the rights and preferences of both the common stock and the trust preferred securities.
• As of December 31, 2023, Popular's authorized capital stock consists of 170,000,000 shares of common stock and 30,000,000 shares of preferred stock.
• Common stockholders are entitled to one vote per share and do not have cumulative voting rights.
• Holders of common stock are entitled to receive dividends if declared by the Board of Directors.
• In the event of liquidation, common stockholders are entitled to receive pro rata any assets distributable to a stockholder.
• The 6.125% Cumulative Monthly Income Trust Preferred Securities are traded on The Nasdaq Stock Market LLC under the symbol BPOPM.
• Distributions on the Capital Securities are fixed at an annual rate of 6.125% of the stated liquidation amount of $25 per Capital Security.
• The Company has the right to defer payments of interest on the Debentures at any time and from time to time by extending the interest payment period for a period (an Extension Period) of up to 60 consecutive months, but not beyond the maturity of the Debentures.
• The Company has the right, subject to any required prior approval of the Federal Reserve, to redeem the Debentures at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest to the date of redemption.

Sentiment

Score: 6

Explanation: The document is primarily descriptive and factual, outlining the terms and conditions of Popular, Inc.'s securities. The sentiment is neutral as it presents information without expressing strong positive or negative opinions.

Positives

• Common stockholders are entitled to receive dividends if declared by the Board of Directors.
• The Company has the right to defer payments of interest on the Debentures at any time and from time to time by extending the interest payment period for a period (an Extension Period) of up to 60 consecutive months, but not beyond the maturity of the Debentures.

Negatives

• The Company has the right to defer payments of interest on the Debentures at any time and from time to time by extending the interest payment period for a period (an Extension Period) of up to 60 consecutive months, but not beyond the maturity of the Debentures.
• The Company can offset against payments then due under the Debentures any corresponding payments made to holders of Capital Securities by the Company in connection with a Direct Action.

Risks

• The Charter provides that a director, or the entire Board of Directors, may be removed by the stockholders only for cause.
• The Guarantee does not cover payment of distributions or amounts payable on redemption or liquidation of the Capital Securities when the Trust does not have funds on hand available to make such payments.
• The Indenture Does Not Restrict the Company's Ability to Take Certain Actions that may Affect the Debentures

Future Outlook

The document outlines potential future actions related to the Trust, Debentures, and Capital Securities, including redemptions, dissolutions, and amendments to agreements.

Industry Context

This announcement is typical for publicly traded financial institutions and provides transparency to investors regarding the company's capital structure and the rights and obligations associated with its securities.

Comparison to Industry Standards

• The capital structure and security features described are common among publicly traded financial institutions.
• Comparable companies such as First BanCorp, OFG Bancorp, and other regional banks in the US and Puerto Rico also have similar disclosures in their SEC filings.
• The specific terms of the securities, such as the interest rate and redemption provisions, are within the range of what is typically offered in the market for similar instruments.

Stakeholder Impact

• Shareholders: The document provides information relevant to their rights and potential returns.
• Employees: The document does not directly impact employees.
• Customers: The document does not directly impact customers.
• Suppliers: The document does not directly impact suppliers.
• Creditors: The document provides information relevant to the company's debt obligations.

Key Dates

Keywords

securities, common stock, preferred stock, debentures, dividends, liquidation, redemption, trust, guarantee, Popular Inc