FirstBank Puerto Rico sells Prepa loans
SAN JUAN – First BanCorp announced Tuesday that its subsidiary, FirstBank Puerto Rico, sold on March 10 its outstanding participation in a line of credit to the Puerto Rico Electric Power Authority (Prepa), reducing its exposure to Puerto Rico government related credits.
Gross proceeds from the sale have resulted in a slight incremental loss of about $570,000 as compared to the adjusted book balance, net of reserves, the bank said.
“We made the determination to prudently reduce our direct exposure to the Puerto Rico government. This sale reduces our year end NPAs by approximately 9%. Credit quality improvement remains a top priority for our team and this transaction contributes to our continuing efforts,” Aurelio Alemán, president and chief executive officer of First BanCorp, says in Tuesday’s release.