-
Banco Popular got the most press for agreeing to buy the failed Doral Bank. But the deal also revealed one surprise winner, First BanCorp, while another institution, OFG Bancorp, was shut out of the process.
March 5 -
Sun Bancorp in Mount Laurel, N.J., swung to a profit thanks to branch closings and other expense reductions.
April 27 -
City National Bank has agreed to commit $11 billion in Community Reinvestment Act spending over the next five years in connection with its proposed sale to Toronto-based Royal Bank of Canada.
April 24
Popular Inc. in San Juan, Puerto Rico, reported better-than-expected first-quarter earnings despite grappling with the higher costs associated with its acquisition of assets from the failed Doral Bank.
The company posted a 13% dip in net income, to $74.8 million, from the same period a year earlier. Earnings per share of 71 cents still exceeded the average estimate of analysts Bloomberg polled by a healthy margin of 18 cents.
One of the particular benefits of the
The Doral deal also caused a jump in noninterest expenses, which rose 13%, to $312.3 million. Costs associated with the company's reorganization of its mainland division, Banco Popular North America, also contributed to this increase.
The rise in expenses was partially matched, however, by a 20% spike in noninterest income, to $115.2 million. Contributing to this upswing was $4.1 million in income related to the bank's loss-sharing agreements with the Federal Deposit Insurance Corp. program, versus $24.2 million in expenses under the program a year earlier. An increase in mortgage banking income also supported the growth.
Net interest income slipped 2% to $343.2 million, despite the addition of loans via the Doral acquisition. The net interest margin tightened 13 basis points, to 4.57%.
