First BanCorp to pay interest deferred on trust preferred securities

By Wendy Van Sickle

Columbus, Ohio, June 9 – First BanCorp received regulatory approval to bring current the unpaid interest on its $216 million of outstanding trust preferred securities outstanding, according to a news release issued Thursday.

The corporation had elected to defer the quarterly interest payments since March 2012. The total of the deferred payments accrued through March 13, 2016 plus the interest for the second quarter of 2016 is about $31.2 million.

Payments will be made on the corresponding due dates of June 17 and June 20.

The corporation is still operating under a written agreement with the Federal Reserve, which provides that prior written approval from the Federal Reserve is required to declare or pay any dividends or make any distributions of interest, principal or other sums on subordinated debentures or trust-preferred securities.

The corporation may decide to defer future payments, and dividends on preferred shares remain suspended, the news release noted.

First BanCorp is the bank holding company for FirstBank Puerto Rico. It is based in San Juan.

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