First BanCorp in San Juan, Puerto Rico, has been freed from a longstanding regulatory order.
The $11.9 billion-asset company said in a press release Thursday that the Federal Reserve had terminated a 2010 written agreement.
First BanCorp said it would voluntarily comply with key provisions of the agreement that require it to seek regulatory approval before paying dividends or receiving payments from its bank. The company will also seek approval before making payments on subordinated debt and trust preferred securities or prior to taking on new debt or redeeming stock.
The termination “demonstrates our successful implementation of the required actions to improve our financial condition and strengthen our capital position,” Aurelio Alemán, First BanCorp’s CEO, said in the release.
Alemán added that blows delivered by Hurricanes Irma and Maria had disrupted the company’s progress. “While these are challenging times for our communities, customers and employees, we will rebuild and support efforts to do so” he said.
Since signing the written agreement, First BancCorp has improved its Tier 1 capital ratio from 12% to 18.6% in mid-2017.
In the wake of the storms, First BanCorp says it is assessing the financial impact. Roughly a third of its 58 branches in Puerto Rico and the U.S. Virgin Islands remain closed, it said.