First BanCorp, the bank holding company for FirstBank Puerto Rico, has concluded the acquisition of Santander BanCorp and its subsidiary Banco Santander Puerto Rico.
Under the deal terms, Santander BanCorp and Banco Santander will be fully merged into FirstBank.
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Banco Santander had approximately $5.5bn in assets, $2.7bn in total loans, and $4.2bn in deposits as of 31 July 2020.
FirstBank paid $394.8m in cash consideration, representing 117.5% of Banco Santander’s core tangible common equity, at a premium of $58.8m. it also paid $882.8m for Santander’s BanCorp excess capital (paid at par).
FirstBank president and CEO Aurelio Aleman said: “We welcome the Banco Santander employees and customers and look forward to exceeding their expectations with an expanded branch network and service channels and enhanced technological offerings.
“This transaction significantly improves our scale, talent strength, and competitiveness in retail, commercial, and business banking. Our existing customers will also benefit from this expanded reach.
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By GlobalData“The integration process will be carried out gradually to minimize the impact on FirstBank and Banco Santander customers, and we expect to complete the integration process during the second quarter of 2021.
“In the meantime, each of the FirstBank and Banco Santander customers prior to the merger will continue to conduct their banking business through their existing relationship branches and corresponding bank platforms.”
Post-merger, FirstBank and Banco Santander customers will gain access to 73 branches across Puerto Rico, and over 445 fee-free ATMs, and over 100 ATMs with remote deposit capacity.
