Nearly five years after falling under the Federal Deposit Insurance Corp.’s watch, First BanCorp, parent company of FirstBank Puerto Rico, announced Thursday the regulator has terminated the Consent Order under which it had been operating since June 2, 2010.
“I am very pleased to report that after almost five years our Consent Order has been lifted. The termination of the Consent Order marks yet another significant milestone for FirstBank, reflecting our improved performance and our team’s dedication and determination to improving our franchise capital position, asset quality and profitability,” said First BanCorp. President Aurelio Alemán.
A Consent Order is issued when the FDIC has “determined that it had reason to believe that the bank engaged in unsafe or unsound banking practices and violations of law and/or regulations.”
In the case of First BanCorp., the bank agreed to take certain actions intended to address various matters the FDIC brought up at the time of the review, including among others, the development and adoption of a plan to attain certain capital levels, and the reduction of non-performing and classified assets that have impacted FirstBank’s financial condition and performance.
Back then, the bank said it had been working for several months to address many of the items were outlined in the agreements that stemmed from an FDIC examination conducted during the latter half of 2009. The financial institution met the established minimum regulatory capital ratios for a well-capitalized bank at the time, and was working toward further strengthening its position by deploying a capital plan strategy.
“I want to take this opportunity to thank our Board of Directors, shareholders and especially our dedicated staff. I would also like to thank our clients for their continuous support over the years. We realize there is more work to be done and look forward to the future,” Alemán said.