First BanCorp Announces Capital Actions

Rhea-AI Summary

First BanCorp (NYSE: FBP), the holding company for FirstBank Puerto Rico, has announced significant capital actions approved by its Board of Directors. These include:

• A quarterly cash dividend of $0.16 per share on outstanding common stock, payable on September 13, 2024, to shareholders of record as of August 29, 2024.
• A new repurchase program of up to $250 million, potentially including common stock or junior subordinated debentures, to be executed through Q4 2025.
• This is in addition to the $50 million remaining from the July 2023 stock repurchase program.

CEO Aurelio Alemán emphasized the 's commitment to returning capital to stakeholders while balancing growth, financial soundness, and shareholder distributions.

Positive

• Declared quarterly cash dividend of $0.16 per share
• Approved new repurchase program of up to $250 million
• $50 million remaining from previous stock repurchase program
• Commitment to returning capital to stakeholders

Negative

• None.

Insights

Financial Analyst

First BanCorp's capital actions, including the quarterly dividend and the new repurchase program, signal confidence in the company's financial health. The dividend of $0.16 per share is a tangible return to shareholders and demonstrates the company's profitability. The repurchase program, especially its substantial size of $250 million, indicates that the company believes its stock is undervalued and is a savvy way to enhance shareholder value. These actions will likely lead to a positive short-term price movement as they reflect strong capital management.

Market Research Analyst

The new repurchase program of up to $250 million is a robust move. By potentially increasing demand for its stock through buybacks, the company could drive up its stock price. The flexibility mentioned (open market purchases, accelerated share repurchases and privately negotiated transactions) allows the company to adapt to market conditions, showing strategic foresight. Investors might view this as a sign of the company's strong cash flow and good governance.

Legal Expert

The use of Rule 10b5-1 plans and the adherence to legal and regulatory requirements for repurchases are reassuring for stakeholders. This compliance ensures transparency and minimizes legal risks, which is important for maintaining investor confidence. Furthermore, the discretion given to management to adjust the buyback program based on various factors like capital position and market conditions provides flexibility to respond to changing economic circumstances, which is a prudent move legally and strategically.

SAN JUAN, Puerto Rico--(BUSINESS WIRE)-- First BanCorp. (the “Corporation”) (NYSE: FBP), the bank holding company for FirstBank Puerto Rico, announced today that its Board of Directors approved the following capital actions:

• The declaration of a quarterly cash dividend of $0.16 per share on its outstanding common stock. The dividend is payable on September 13, 2024 to shareholders of record at the close of business on August 29, 2024.
• A new repurchase program of up to $250 million that could include repurchases of common stock or junior subordinated debentures, which we expect to be executed at management’s discretion through the end of the 4^th quarter of 2025. This approval is in addition to the $50 million remaining under the stock repurchase program announced on July 24, 2023.

Aurelio Alemán, President and Chief Executive Officer, stated "This authorization reflects the Corporation’s commitment to continue returning capital to our stakeholders. We intend to use a balanced approach to deploy capital generated by our operations to both support growth and financial soundness, and to distribute capital to shareholders, including in the form of dividends and stock repurchases.”

Repurchases under the program may be executed through open market purchases, accelerated share repurchases, privately negotiated transactions or plans, including Rule 10b5-1 plans, and/or redemption of junior subordinated debentures, and will be conducted in accordance with applicable legal and regulatory requirements. The Corporation’s repurchase program will be subject to various factors, including the Corporation’s capital position, liquidity, financial performance and alternative uses of capital, stock trading price, and general market conditions. The repurchase program may be modified, extended, suspended, or terminated at any time at the Corporation’s discretion. Any repurchased shares are expected to be held as treasury shares.

About First BanCorp.

First BanCorp. is the parent corporation of FirstBank Puerto Rico, a state-chartered commercial bank with operations in Puerto Rico, the U.S. and British Virgin Islands and Florida, and of FirstBank Insurance Agency, LLC. Among the subsidiaries of FirstBank Puerto Rico is First Federal Finance Limited Liability Company, a small loans company. First BanCorp’s shares of common stock trade on the New York Stock Exchange under the symbol “FBP.”

Safe Harbor

This press release may contain “forward-looking statements” concerning the Corporation. The words or phrases “expect,” “anticipate,” “intend,” “look forward,” “should,” “would,” “believes” and similar expressions are meant to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created by such sections. Such forward-looking statements include, but are not limited to, statements regarding the Corporation’s ability to pay dividends on the Corporation’s Common Stock in any future periods. Forward-looking statements involve known and unknown risks, uncertainties and contingencies that may cause actual results to differ materially from the expectations expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to the factors described in the Corporation’s most recent Annual Report on Form 10-K, in its Quarterly Reports on Form 10-Q and in our other filings with the Securities and Exchange Commission. The Corporation undertakes no obligation to update any “forward-looking statements” to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240722482300/en/

First BanCorp.

Ramon Rodríguez

Senior Vice President

Corporate Strategy and Investor Relations

(787) 729-8200 Ext. 82179

ramon.rodriguez@firstbankpr.com

Source: First BanCorp.

FAQ

What is the amount of First BanCorp's (FBP) newly declared quarterly cash dividend?

First BanCorp (FBP) has declared a quarterly cash dividend of $0.16 per share on its outstanding common stock.

When is the payment date for First BanCorp's (FBP) latest quarterly dividend?

The quarterly dividend is payable on September 13, 2024, to shareholders of record at the close of business on August 29, 2024.

What is the size of First BanCorp's (FBP) new repurchase program?

First BanCorp (FBP) has approved a new repurchase program of up to $250 million, which could include repurchases of common stock or junior subordinated debentures.

When does First BanCorp's (FBP) new repurchase program end?

The new repurchase program is expected to be executed through the end of the 4th quarter of 2025.