Ultrapower endofunctor of sets
= Ultrapower endofunctor of sets
For an ultrafilter $U$ on $A$, the assignment
$$
F(B)=B^A/U
$$
is an endofunctor of sets. It preserves finite limits. If $U$ is countably complete, every map $A\to\coprod_nB_n$ lands in one summand on a $U$-large set, so $F$ also preserves countable coproducts.