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EX-99.1 - EX-99.1 - FIRST BANCORP /PR/ | exhibit2.htm |
8-K - LIVE FILING - FIRST BANCORP /PR/ | htm_41358.htm |
EX-3.1 - EX-3.1 - FIRST BANCORP /PR/ | exhibit1.htm |
FIRST BANCORP ANNOUNCES FILING OF ITS 2010 ANNUAL REPORT ON FORM 10-K AND UPDATES REPORTED
FINANCIAL RESULTS
SAN JUAN, Puerto Rico April 15, 2011 First BanCorp (the Corporation), [NYSE:FBP], [NYSE:FBPPrA], [NYSE:FBPPrB], [NYSE:FBPPrC], [NYSE:FBPPrD], [NYSE:FBPPrE], announced today the filing of its 2010 Annual Report on Form 10-K, which reflects a revised net loss for the quarter and year ended December 31, 2010. As discussed in a previous filing with the Securities and Exchange Commission, the Corporation was further evaluating the impact in the fourth quarter of 2010 of certain non-cash items on its financial statements, including a deferred tax asset valuation allowance adjustment. Upon completion of its review, the Corporation recorded an incremental non-cash charge of $93.7 million to the valuation allowance of its banking subsidiary deferred tax asset, which adjustment took the revised net loss for the year ended December 31, 2010 to $524.3 million, compared to a net loss of $275.2 million for the year ended December 31, 2009.
Additional financial information regarding First BanCorp can be found in its Annual Report for the year 2010 filed today on Form 10-K.
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 all operate within U.S. banking laws and regulations. The
Corporation operates a total of 170 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; First Management of Puerto Rico; and FirstMortgage, Inc., a
mortgage origination company. In the U.S. Virgin Islands, FirstBank operates First Insurance VI, an
insurance agency, and First Express, a small loan company.Additional information about First
BanCorp may be found at www.firstbankpr.com.
Safe Harbor
This press release may contain forward-looking statements concerning the Corporations future
economic performance. The words or phrases expect, anticipate, look forward, should,
believes and similar expressions are meant to identify forward-looking statements within the
meaning of Section 27A of the Private Securities Litigation Reform Act of 1995, and are subject to
the safe harbor created by such section. The Corporation wishes to caution readers not to place
undue reliance on any such forward-looking statements, which speak only as of the date made, and
to advise readers that various factors, including, but not limited to, uncertainty about whether
the Corporation will be able to fully comply with the written agreement dated June 3, 2010 that the
Corporation entered into with the Federal Reserve Bank of New York (FED) and the order dated June
2, 2010 (the Order) that the Corporation and FirstBank Puerto Rico entered into with the FDIC and
the Office of the Commissioner of Financial Institutions of Puerto Rico that, among other things,
require the Corporation to attain certain capital levels and reduce its special mention,
classified, delinquent and non-accrual assets; uncertainty as to whether the Corporation will be
able to issue $350 million of equity so as to meet the remaining substantive condition necessary to
compel the U.S. Treasury to convert into common stock the shares of Series G Preferred Stock that
the Corporation issued to the U.S. Treasury; uncertainty as to whether the Corporation will be able
to complete future capital-raising efforts; uncertainty as to the availability of certain funding
sources, such as retail brokered CDs; the risk of not being able to fulfill the Corporations cash
obligations or pay dividends to its shareholders in the future due to its inability to receive
approval from the FED to receive dividends from FirstBank Puerto Rico; the risk of being subject to
possible additional regulatory actions; the strength or weakness of the real estate markets and of
the consumer and commercial credit sectors and their impact on the credit quality of the
Corporations loans and other assets, including the Corporations construction and commercial real
estate loan portfolios, which have contributed and may continue to contribute to, among other
things, the increase in the levels of non-performing assets, charge-offs and the provision expense
and may subject the Corporation to further risk from loan defaults and foreclosures; adverse
changes in general economic conditions in the United States and in Puerto Rico, including the
interest rate scenario, market liquidity, housing absorption rates, real estate prices and
disruptions in the U.S. capital markets, which may reduce interest margins, impact funding sources
and affect demand for all of the Corporations products and services and the value of the
Corporations assets; the Corporations reliance on brokered CDs and the Corporations ability to
obtain, on a periodic basis, approval to issue brokered CDs to fund operations and provide
liquidity in accordance with the terms of the Order; an adverse change in the Corporations ability
to attract new clients and retain existing ones; a decrease in demand for the Corporations
products and services and lower revenues and earnings because of the continued recession in Puerto
Rico and the current fiscal problems and budget deficit of the Puerto Rico government; a need to
recognize additional impairments on financial instruments or goodwill relating to acquisitions;
uncertainty about regulatory and legislative changes for financial services companies in Puerto
Rico, the United States and the U.S. and British Virgin Islands, which could affect the
Corporations financial performance and could cause the Corporations actual results for future
periods to differ materially from prior results and anticipated or projected results; uncertainty
about the effectiveness of the various actions undertaken to stimulate the United States economy
and stabilize the United States financial markets, and the impact such actions may have on the
Corporations business, financial condition and results of operations; changes in the fiscal and
monetary policies and regulations of the federal government, including those determined by the
Federal Reserve System, the FDIC, government-sponsored housing agencies and local regulators in
Puerto Rico and the U.S. and British Virgin Islands; the risk of possible failure or circumvention
of controls and procedures and the risk that the Corporations risk management policies may not be
adequate; the risk that the FDIC may further increase the deposit insurance premium and/or require
special assessments to replenish its insurance fund, causing an additional increase in the
Corporations non-interest expense; risks of not being able to generate sufficient income to
realize the benefit of the deferred tax asset; risks of not being able to recover the assets
pledged to Lehman Brothers Special Financing, Inc.; changes in the Corporations expenses
associated with acquisitions and dispositions; the adverse effect of litigation; developments in
technology; risks associated with further downgrades in the credit ratings of the Corporations
long-term senior debt; general competitive factors and industry consolidation; and the possible
future dilution to holders of common stock resulting from additional issuances of common stock or
securities convertible into common stock. The Corporation does not undertake, and specifically
disclaims any obligation, to update any forward-looking statements to reflect occurrences or
unanticipated events or circumstances after the date of such statements.
###
First BanCorp
Alan Cohen
Senior Vice President
Marketing and Public Relations
alan.cohen@firstbankpr.com
787-729-8256