First Annapolis Advices FirstBank Puerto Rico on Acquisition of the FirstBank-Branded Credit Card Portfolio from Bank of America
May 7, 2012, 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 FirstBank has signed a definitive agreement with FIA Card Services, N.A. to acquire the FirstBank-branded credit card portfolio of approximately $400 million. The portfolio consists of approximately 150,000 active credit card relationships.
“This acquisition diversifies our revenue stream and the composition of our loan portfolio. In addition, it provides significant opportunity to broaden and deepen our relationship with our customers and it accelerates our cross sell targets. The transaction strengthens our franchise value and will contribute to our objective to return the Corporation to profitability,” said Aurelio Alemán, President and Chief Executive Officer of First BanCorp.
The closing of the transaction is subject to the conditions set forth in the definitive agreement. FirstBank expects the transaction to close during the second quarter of 2012.
Upon closing of the transaction, customers will experience minimal impact since FIA Card Services, N.A. will continue to service the accounts under an interim servicing agreement into 2013.
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