First BanCorp Cites $2.4B Doral Payment

First BanCorp, San Juan, Puerto Rico, has reported a cash payment of approximately $2.4 billion from Doral Financial Corp. to First BanCorp's subsidiary FirstBank, "substantially reducing" the balance of approximately $2.9 billion in mortgage-related commercial loans outstanding to Doral.The commercial loans resulted from First BanCorp's previously announced revised classification of several mortgage-related transactions with Doral. The payment reduced the balance of the commercial loans to Doral to approximately $450 million, First BanCorp said, adding that it "expects additional accelerated payments by Doral." The loans had been recorded as purchases of residential real estate loans from Doral by FirstBank, and they were later reclassified as commercial loans secured by mortgages. FirstBank has agreed to reimburse Doral for 40% of the net losses incurred by Doral as a result of sales of the mortgages, subject to certain conditions. First BanCorp can be found online at http://www.firstbankpr.com.