First BanCorp. (the “Corporation”) (NYSE: FBP), the bank holding company
for FirstBank Puerto Rico (“FirstBank” or “the Bank”), announced that
the Bank has entered into a definitive agreement to sell a portfolio
comprised of mostly non-performing and classified commercial loans and
real estate owned totaling $199.8 million of unpaid principal balance,
or $150.1 million of book value, for $87.6 million in cash or 43.8% of
the unpaid principal balance of the assets. This transaction is expected
to close in early June 2015.
This transaction will result in a pretax loss, net of reserves, of
approximately $47.2 million. At the completion of the transaction,
FirstBank will reduce its classified assets and nonperforming assets by
approximately $149.1 million and $94.7 million, respectively. The
resulting March 31, 2015 pro form non-performing asset to total asset
ratio will decline from 5.74% to 5.02%.
"This transaction accelerates improvement in our risk profile and will
contribute to future reductions in our expense base. We view this as a
positive step as we continue addressing credit quality in a challenged
economic environment," said First BanCorp. President and CEO Aurelio
Alemán-Bermudez.
About First BanCorp.
First BanCorp. is the parent corporation of FirstBank Puerto Rico, a
state-chartered commercial bank with operations in Puerto Rico, the
Virgin Islands and Florida, and of FirstBank Insurance Agency. First
BanCorp. and FirstBank Puerto Rico operate within U.S. banking laws and
regulations. The Corporation operates a total of 153 branches,
stand-alone offices, and in-branch service centers throughout Puerto
Rico, the U.S. and British Virgin Islands, and Florida. Among the
subsidiaries of FirstBank Puerto Rico are First Federal Finance Corp., a
small loan company; FirstBank Puerto Rico Securities, a broker-dealer
subsidiary; and First Management of Puerto Rico, a domestic corporation
that holds tax-exempt assets. In the U.S. Virgin Islands, FirstBank
operates First Express, a small loan company. First BanCorp’s shares of
common stock trade on the New York Stock Exchange under the symbol FBP.
Additional information about First BanCorp. may be found at www.firstbankpr.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150526005466/en/
Copyright Business Wire 2015