- First BanCorp (NYSE:FBP) agrees to acquire Banco Santander Puerto Rico for a $63M premium to BSPR's core tangible common equity in an all-cash deal.
- Base purchase price is $425M plus $638M of BSPR’s excess capital as of June 30, 2019 paid at par.
- As of June 30, 2019, BSPR had $6.2B of assets, $3.1B of loans, and $5.0B of deposits.
- Sees deal generating 35% accretion to fully phased-in 2020 consensus EPS with a tangible book value per share earnback period of 2.6 years.
- Pretax annual cost savings of $48M expected to be fully achieved in 2021.
- Sees one-time restructuring charges of $76M, to be phased-in 50% at close and remainder in 2021.
- FirstBank won't assume any of BSPR's non-performing assets.
- Update with Banco Santander details: For the seller, Banco Santander (NYSE:SAN), the price of ~$1.1B represents a 1.1x price to total book value; the transaction is expected to close in mid-2020.
- The deal will lead to an increase in the Banco Santander Group's CET1 capital of 5-6 basis points and immaterial impact on Santander Group attributable profit.
- Conference call on Oct. 22 at 10 AM ET.