First BanCorp in San Juan, Puerto Rico, has put another big problem behind it.

The $11.9 billion-asset company said in press release Monday that it sold its outstanding participation in a line of credit to the Puerto Rico Electric Power Authority to an unnamed buyer, resulting in a loss of roughly $570,000.


First BanCorp, led by CEO Aurelio Alemán, has been taking steps to improve its overall credit quality.

This sale reduced the company’s nonperforming assets by about 9%. Nonperforming assets totaled $735 million at Dec. 31.

The transaction should also lower First BanCorp’s total direct exposure to the Puerto Rican government by 20%, to about $258 million, Joe Gladue, an analyst at Merion Capital, wrote in a note to clients.

“The sale removes an item that presented risks of greater losses and occupied management time and investor attention,” Gladue wrote.

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