BPOPM

Popular, Inc. Depositary Shares Series M represent fractional interests in Popular Inc. preferred stock, with each depositary share representing a 1/1,000th ownership interest in a share of preferred stock. This structure makes the securities accessible at lower price points than whole preferred shares. Series M preferred stock ranks senior to common stock for dividend payments and liquidation proceeds but is subordinate to all debt obligations in Popular's capital structure. These securities provide investors with priority income from Popular Inc., Puerto Rico's largest financial institution. Series M preferred shares pay fixed quarterly dividends at the rate specified in offering documents, providing predictable income streams. As preferred securities, dividend payments must be made to Series M holders before any distributions to common stockholders, offering income priority. Preferred shareholders generally have limited or no voting rights except under specific circumstances such as dividend arrearages or proposed actions affecting preferred shareholder rights. The securities are perpetual with no stated maturity date, though Popular typically retains optional redemption rights exercisable after an initial non-call period. These depositary shares appeal to income-focused investors seeking regular dividend payments, capital structure priority, and exposure to Popular Inc.'s diversified banking franchise in Puerto Rico and U.S. mainland markets. The securities' credit quality reflects Popular's financial strength including capital adequacy, asset quality, profitability, and ability to navigate challenges in Puerto Rico's economy. Preferred share prices exhibit sensitivity to interest rate movements (inverse relationship) and credit spreads reflecting market assessment of Popular's financial condition. Puerto Rico-related risks including economic challenges, natural disaster exposure, and fiscal uncertainties impact investor perceptions, though Popular has demonstrated resilience through various crises. Investors should evaluate both banking industry risks and preferred stock characteristics including interest rate sensitivity, call risk, limited upside participation, and subordination to debt while ranking senior to common equity.