First BanCorp Announces Sale of $223 million (Book Value) of Non-Performing Residential Mortgage Loans and Other Real Estate Owned

First BanCorp Announces Sale of $223 million (Book Value) of Non-Performing Residential Mortgage Loans and Other Real Estate Owned

SAN JUAN, Puerto Rico--(BUSINESS WIRE)-- First BanCorp (the “Corporation”) (NYSE: FBP  ) , the bank holding company for FirstBank Puerto Rico (“FirstBank” or “the Bank”), announced that the Bank has completed a sale of non-performing residential mortgage loans with an unpaid principal balance of $236.6 million (book value of $203.6 million), as well as other real estate owned (“OREO”) properties with an appraised value of $22.3 million (book value $19.2 million). The aggregate sales price is approximately $128.3 million in an all cash transaction, or approximately 49.6% of the sum of the unpaid principal balance of the loans and the appraised value of the OREO. This transaction will adversely affect the results for the second quarter by approximately $71.7 million (pre-tax), including $2.2 million of estimated selling costs.

The completion of this transaction together with other transactions and events previously reported in this period will have the effect of improving the Bank’s ratio of non-performing assets to total assets on a pro-forma basis as of March 31, 2013, from 8.35% to 5.93%.

Mission Capital Advisors, LLC advised FirstBank on the transaction.

“We continue to aggressively address credit issues in legacy loans during this persistently challenging economic environment. We have made great strides over the last two quarters through opportunistic loan sales. These transactions have greatly improved our credit risk profile and our capital position remains strong,” said First BanCorp’s President and CEO Aurelio Alemán.

About First BanCorp

First BanCorp is the parent corporation of FirstBank, a state-chartered commercial bank with operations in Puerto Rico, the Virgin Islands and Florida, and of FirstBank Insurance Agency. First BanCorp and FirstBank operate within U.S. banking laws and regulations. The Corporation operates a total of 154 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 are First Federal Finance Corp., a small loan company; FirstBank Puerto Rico Securities Corp., a broker-dealer subsidiary; First Management of Puerto Rico; and FirstMortgage, Inc., a mortgage origination company. In the U.S. Virgin Islands, FirstBank operates First Express, a small loan company. First BanCorp’s Common Stock trades on the New York Stock Exchange under the symbol “FBP.”



First BanCorp
John B. Pelling, III, 305-577-6000, ext. 162
Investor Relations Officer
john.pelling@firstbankpr.com

KEYWORDS:   Caribbean  Puerto Rico

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