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First BanCorp. Receives Regulatory Approval for Acquisition of Banco Santander Puerto Rico

By on July 28, 2020

SAN JUAN – First BanCorp., the bank holding company for FirstBank Puerto Rico, announced Tuesday that it has received the requisite regulatory approvals from the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and the Office of the Commissioner of Financial Institutions of Puerto Rico for FirstBank to complete the acquisition of the Puerto Rico operations of Banco Santander Puerto Rico.

The acquisition is expected to be completed by Sept. 1.

“On a pro forma basis based on June 30, 2020, upon closing of the transaction, FirstBank expects to have approximately $18.8 billion in assets, a $12 billion loan portfolio, $15.4 billion of deposits, and approximately 650,000 customers. In addition, FirstBank expects to have 450 ATMs, 73 branches, and more than 3,500 employees across the Corporation,” its press release reads.

Aurelio Alemán, president and CEO of the corporation, commented: “We are very pleased to have received regulatory approvals for this transformational transaction for our Corporation. We expect that this acquisition will significantly improve our scale and competitiveness in Puerto Rico and will be financially compelling to optimize the use of our excess capital.

“We have been preparing for a strategic transaction of this magnitude and have been working diligently on integration planning. The Santander team expands our talent bench in retail, commercial and business banking. First BanCorp will become a stronger competitor in Puerto Rico with the scale and breadth to better serve customers, and further our investments in innovation and talent development. We are greatly appreciative of expanding our client base and we will work hard to continue enhancing our portfolio of products, services and channels to meet their needs and exceed their expectations.”

Until the conversion of the banks’ systems is completed, FirstBank plans to continue using certain of Santander’s technology platforms. As a result, Santander customers will continue to make transactions normally, and after the acquisition is completed will be able to use FirstBank ATMs without out-of-network fees.

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