Popular, Inc. Sells Six Branches in New Jersey; Updates Branch Network Restructuring Plan
May 21 2009 - 4:05PM
PR Newswire (US)
SAN JUAN, Puerto Rico, May 21 /PRNewswire-FirstCall/ -- Popular,
Inc. (NASDAQ:BPOP), the leading financial institution in Puerto
Rico, said today it reached an agreement to sell six branches in
New Jersey and approximately $250 million in deposits to Investors
Bancorp. The transaction is structured as an asset purchase for
cash at a premium over the deposits and subject to regulatory
approval and other customary closing conditions. Closing of the
transaction is expected to occur within the third quarter of 2009.
In addition to the sale, Popular also plans to close its in-store
branch network in California which represents 22 of its 46 branches
in the state. Excluding the branches mentioned above, Popular
operates 41 branches in the New York and New Jersey region, 16
branches in Illinois, 24 branches in Southern California and 23
branches in Florida. Popular operates 177 branches in Puerto Rico,
where it holds the No. 1 market share in total deposits, and eight
branches in the U.S. and British Virgin Islands. "We continue to
consolidate our U.S. footprint to create a more nimble organization
and focus on core banking activities in strategic markets," said
Popular, Inc. Chairman and CEO Richard L. Carrion. "The sale allows
us to better allocate our resources at the New York region, where
we have operated since 1961." As previously announced, Popular is
reducing the size of its U.S. banking operations to achieve a
leaner and more efficient U.S. business model and integrating both
banking subsidiaries under one management to help counter the
economic environment and prepare businesses for future growth.
"Both banks are now integrated under one management. We have moved
forward our plan to restructure our branch network. These actions
reduce costs and create synergies that maximize productivity in
what continues to be a difficult economic scenario," said Popular,
Inc. President and Chief Operating Officer David H. Chafey, Jr. "We
are confident that with this restructured branch network we can
continue to serve and fulfill the banking needs of the clients in
our main banking regions of New York/New Jersey, Southern and
Central Florida, Illinois and southern California." In conjunction
with its business strategy, Popular has adapted an aggressive
cost-efficiency program across the Corporation, as it helps spur
economic recovery in its communities through sound lending. Popular
has generated $34 million in annual savings through cost-efficiency
measures and approved more than $1.8 billion in new, renewed and
restructured credit during the first three months of 2009. 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 177 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, 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 and
Florida. E-LOAN markets deposit accounts under its name for the
benefit of BPNA and offers loan customers the option of being
referred to a trusted consumer lending partner. The Corporation,
through its transaction processing company, EVERTEC, continues to
use its expertise in technology as a competitive advantage in its
expansion throughout 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 meet the needs of retail
and business clients through innovation and to foster growth in the
communities it serves. DATASOURCE: Popular, Inc. CONTACT: Investor
Relations: Jorge A. Junquera, Chief Financial Officer, Senior
Executive Vice President, +1-787-754-1685; or Media Relations:
Teruca Rullan, Senior Vice President, Corporate Communications,
+1-787-281-5170, +1-917-679-3596 (mobile), both of Popular, Inc.
Copyright
Popular (NASDAQ:BPOP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Popular (NASDAQ:BPOP)
Historical Stock Chart
From Jul 2023 to Jul 2024