Popular Pays Dividend on Preferred Stock
December 21 2010 - 4:05PM
Business Wire
Popular, Inc. (Nasdaq:BPOP) (the “Corporation”) announced today
that at a meeting held on Tuesday, December 21, 2010, its Board of
Directors declared the following monthly cash dividends on its
outstanding shares of Non-cumulative Monthly Income Preferred
Stock:
- a monthly cash dividend of $0.1328125
per share of 6.375% Non-cumulative Monthly Income Preferred Stock,
2003 Series A, to be paid on December 31, 2010 to holders of record
as of December 28, 2010
- a monthly cash dividend of $0.171875
per share of 8.25% Non-cumulative Monthly Income Preferred Stock,
Series B, to be paid on December 31, 2010 to holders of record as
of December 28, 2010
Dividends on the Preferred Stock are non-cumulative and payable
monthly if and when declared out of funds legally available for
such payments. During 2009, the Corporation suspended dividend
payments on the Preferred Stock. The dividend declared on December
21, 2010 represents a monthly Preferred Stock dividend for December
2010. The Corporation has no obligation to pay non-cumulative
dividends for any period prior to December 2010 and does not intend
to do so.
During 2009, the Corporation suspended dividend payments on the
Common Stock. The Corporation’s ability to declare and pay
dividends is dependent on certain Federal regulatory
considerations, including the guidelines of the Federal Reserve
Board regarding capital adequacy and dividends. Moreover, the
Federal Reserve Board and the FDIC have issued policy statements
stating that bank holding companies and insured banks should
generally pay dividends only out of current operating earnings. The
Corporation has no current plans to resume dividend payments on the
Common Stock.
In connection with the resumption of payment of monthly
dividends on the Preferred Stock, which are approximately $3.7
million per year on an annualized basis, the Corporation has
committed to the Board of Governors of the Federal Reserve System
to fund the dividend payments out of newly-issued Common Stock
issued to employees under the Corporation's existing savings and
investment plans or, if such issuances are insufficient, other
common equity capital raised by the Corporation. It is anticipated
that sufficient Common Stock will be issued under those plans to
cover the dividend payment. There can be no assurance that any
dividends will be declared on the Preferred Stock in any future
periods.
Founded in 1893, Popular, Inc. is the leading banking
institution by both assets and deposits in Puerto Rico and ranks
37th by assets among U.S. bank holding companies. In the United
States, Popular has established a community-banking franchise
providing a broad range of financial services and products with
branches in New York, New Jersey, Illinois, Florida and
California.
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