FirstBank Puerto Rico has been authorised to acquire Banco Santander Puerto Rico in $63m deal

First BanCorp, the parent company behind FirstBank Puerto Rico, has given it the green light to go ahead with its purchase of Banco Santander Puerto Rico for a $63m.

The transaction is subject to receipt of all necessary regulatory approvals.

As of the end of June this year, Banco Santander Puerto Rico had $6.2bn of assets, $3.1bn of loans and $5bn of deposits. On a pro forma basis based on these numbers, after the transaction FirstBank Puerto Rico will have approximately $17.6bn in assets, a $12.0bn loan portfolio, and $14.2bn of deposits.

Aurelio Alemán, president and CEO of First BanCorp., expressed his excitement about the deal. “After completing comprehensive due diligence, we have signed an agreement to acquire Banco Santander Puerto Rico,” he said.

“This acquisition will significantly improve our scale and competitiveness in Puerto Rico, while enhancing our funding and risk profile. The transaction is financially compelling and generates 35% accretion to fully phased-in 2020 consensus earnings per share with a tangible book value per share earnback period of 2.6 years.”

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