First BanCorp Sells $237M Nonperforming Portfolio

First BanCorp, San Juan, P.R., has sold $237 million in nonperforming residential mortgages, plus an additional $22 million in real estate owned for $128 million in an all-cash transaction. The press release did not disclose the purchaser.

However, the deal will hurt First BanCorp’s 2Q13 results to the tune of nearly $72 million on a pretax basis. This includes $2 million of estimated selling costs.

But this deal, combined with other recent transactions, will drop the company’s nonperforming assets to total assets ratio to 5.93% from 8.35% as of March 31 on a pro-forma basis.

Mission Capital Advisors LLC advised the company on this sale.

“We have made great strides over the last two quarters through opportunistic loan sales. These transactions have greatly improved our credit risk profile and our capital position remains strong,” said president and CEO Aurelio Aleman.