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First BanCorp announces $225M stock repurchase, quarterly cash dividend

First BanCorp., the bank holding company for FirstBank Puerto Rico, announced its board of directors approved a pair of capital actions that will take place over the next few months.

First, the financial institution announced a new stock repurchase program of up to $225 million of its outstanding common stock that it expects to execute through the end of the third quarter of 2024.

It also announced the declaration of a quarterly cash dividend of 14 cents per share on its outstanding common stock. The dividend is payable Sept. 8 to shareholders of record at the close of business on Aug. 24.

First BanCorp. expects to repurchase approximately $150 million of its outstanding common stock during the second half of 2023, of which $75 million relates to the remaining amount of the previously approved stock repurchase program, which was resumed in July.

“Our balance sheet and capital ratios remain strong, with ratios significantly above ‘well capitalized’ thresholds. We intend to continue 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 in the form of dividends and stock repurchases,” said First BanCorp. President Aurelio Alemán.

Repurchases under the program may be executed through open market purchases, accelerated share repurchases and privately negotiated transactions or plans, and will be conducted in accordance with applicable legal and regulatory requirements.

The corporation’s common stock repurchase program will be subject to several factors, including the corporation’s capital position, liquidity, financial performance, 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 financial institution’s discretion. Any repurchased shares are expected to be held as treasury shares.

First BanCorp. will release second quarter results later this week.

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This story was written by our staff based on a press release.

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