Popular, one of the largest banks in Puerto Rico, is engaged in advanced negotiations to offload some of its mainland US branches to multiple buyers.
People familiar with the matter were quoted by The Wall Street Journal as saying that the bank’s Rosemont, Illinois-based subsidiary, will soon announce separate deals to sell its Chicago and California area branches as well as some branches in Florida.
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The source further added that an auction for the branches has been underway for approximately six weeks.
Potential bidders comprise smaller banks including Wintrust Financial, Metropolitan Bank Group and First Midwest Bancorp.
It is believed that the branch divesture is part of the bank’s plan to reduce operational expenses and streamline operations amid intense competition.
Popular manages approximately 90 mainland US bank offices across New York, Illinois, California, Florida and New Jersey.
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By GlobalDataThe bank, which received bailout package through the US Treasury Department’s crisis-era bailout program due to losses sustained during the financial crisis of 2008, still has to pay nearly $935m to creditors.
