Popular Completes Sale of Loan and Servicing Assets of U.S. Mortgage Subsidiary, Popular Financial Holdings, to Goldman Sachs
November 03 2008 - 5:21PM
PR Newswire (US)
Transaction Significantly Reduces Popular's U.S. Subprime Market
Exposure and Increases Liquidity SAN JUAN, Puerto Rico, Nov. 3
/PRNewswire-FirstCall/ -- Popular, Inc. ("Popular")
(NASDAQ:BPOPNASDAQ:BPOPONASDAQ:BPOPP) (Popular) announced today
that it has completed the sale of the loan and servicing assets of
its U.S. mortgage subsidiary Popular Financial Holdings, Inc. to
various Goldman Sachs affiliates. The sale would result in a
reduction of approximately $900M in loans and mortgage servicing
assets that are mainly accounted at fair value, providing Popular
with more than $700 million in additional liquidity and
significantly reducing Popular's U.S. subprime assets. "The closing
of this transaction is a major step forward in our efforts to build
capital and liquidity, and create a leaner and more efficient
business. We continue to focus on reducing the size of our
footprint in the mainland U.S. to a level better suited to present
economic conditions while taking steps to improve profitability
across our business," said Richard L. Carrion, Chairman, President
and CEO of Popular. Popular recently announced a number of
aggressive steps to restructure its U.S. banking operations,
including a greater integration with corporate operations in Puerto
Rico, the consolidation or sale of underperforming branches, and
the closing, sale or downsizing of lending businesses that do not
generate deposits or fee income. Popular is also undertaking
expense reduction initiatives and evaluating product lines that do
not deliver adequate returns on equity. Popular, Inc. is a full
service financial services provider based in Puerto Rico with
operations in Puerto Rico, the United States, the Caribbean and
Latin America. As the leading financial institution in Puerto Rico,
with over 300 branches and offices, the Corporation offers retail
and commercial banking services through its principal banking
subsidiary, Banco Popular de Puerto Rico, as well as auto and
equipment leasing and financing, mortgage loans, consumer lending,
investment banking, broker-dealer and insurance services through
specialized subsidiaries. In the United States, the Corporation
operates Banco Popular North America ("BPNA"), including its
wholly-owned subsidiary E-LOAN. BPNA is a community bank providing
a broad range of financial services and products to the communities
it serves. BPNA operates branches in New York, California,
Illinois, New Jersey, Florida and Texas. E-LOAN provides an online
platform to raise deposits for BPNA. The Corporation, through its
transaction processing company, EVERTEC, continues to use its
expertise in technology as a competitive advantage in its expansion
throughout the United States, the Caribbean and Latin America, as
well as internally servicing many of its subsidiaries' system
infrastructures and transactional processing businesses. The
Corporation is exporting its 115 years of experience through these
regions while continuing its commitment to meeting the needs of
retail and business clients through innovation, and to fostering
growth in the communities it serves. DATASOURCE: Popular, Inc.
CONTACT: Investors, Jorge A. Junquera, Chief Financial Officer,
Senior Executive Vice President, +1-787-754-1685, or media, Teruca
Rullan, Senior Vice President, Corporate Communications,
+1-787-281-5170, or cellular, +1-917-679-3596, both of Popular Web
site: http://www.popularinc.com/
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