First BanCorp. Announces Payment of Dividends on Preferred Stock

SAN JUAN, Puerto Rico--()--First BanCorp. (the “Corporation”) (NYSE: FBP), the bank holding company for FirstBank Puerto Rico, announced today that its Board of Directors declared the following monthly cash dividends on its outstanding shares of Series A through E Noncumulative Perpetual Monthly Income Preferred Stock (the “Preferred Stock”):

               
Series

Monthly
Dividend Per
Share

Outstanding
Shares

Record Date Payment Date
 
A $0.14843750 197,386 December 28, 2016 December 30, 2016
B $0.17395800 296,146 December 15, 2016 December 30, 2016
C $0.15416670 249,852 December 15, 2016 December 30, 2016
D $0.15104167 285,522 December 15, 2016 December 30, 2016
E $0.14583330 415,240 December 15, 2016 December 30, 2016
 

Dividends on the Preferred Stock are non-cumulative and payable monthly if and when declared out of funds legally available for such payments. During 2009, the Corporation suspended dividend payments on the Corporation’s Common and Preferred Stock. The dividend currently declared represents the Preferred Stock dividend for the month of December 2016.

President and Chief Executive Officer Aurelio Alemán stated, “We are pleased that we are able to pay the preferred dividends and view this as a positive capital action following the publishing of our DFAST results in October. The Corporation continues to produce bottom line results leading to a growing capital base. We are focused on the levers needed to drive shareholder value.”

The Corporation’s ability to continue to declare and pay dividends on the Preferred Stock is dependent on certain Federal regulatory considerations, including the guidelines of the Federal Reserve Board regarding capital adequacy and dividends and on the requirements of the written agreement dated June 3, 2010 (the “Written Agreement”) that the Corporation entered into with the Federal Reserve Bank of New York (the “Federal Reserve”) that, among other things, prohibits the Corporation from paying dividends to stockholders without the Federal Reserve’s consent.

Although there is no assurance that any dividends will be declared on the Corporation’s Preferred Stock in any future periods, the Corporation intends to continue to request the Federal Reserve’s approval pursuant to the requirements of the Written Agreement to enable it to continue to pay the monthly dividends on its Preferred Stock.

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. Among the subsidiaries of FirstBank Puerto Rico are First Federal Finance Corp. and First Express, both small loan companies, and FirstBank Puerto Rico Securities, a broker-dealer subsidiary. 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 declare dividends on the Corporation’s Preferred Stock in any future periods, the Corporation’s ability to continue to pay interest on its subordinated debentures, and the Corporation’s intention to request the Federal Reserve’s approval pursuant to the requirements of the Written Agreement to enable it to continue to pay the monthly dividends on its Preferred Stock and the quarterly interest due on its trust preferred securities once regulatory approvals expire. Such statements are subject to known and unknown risks, uncertainties and contingencies that may cause actual results to differ materially from the expectations, intentions, beliefs, plans, estimates or predictions of the future 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 Annual Report on Form 10-K, in its Quarterly Reports on Form 10-Q and in other filings with the SEC. 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, except as required by the federal securities laws.

Contacts

First BanCorp.
John B. Pelling III, 787-729-8003
Investor Relations Officer
john.pelling@firstbankpr.com

Contacts

First BanCorp.
John B. Pelling III, 787-729-8003
Investor Relations Officer
john.pelling@firstbankpr.com