Enhancing Shareholder Value: First BanCorp Unveils $225 Million Stock Buyback Program and Dividend Declaration for Q3 2024
First BanCorp (FBP), the bank holding company for FirstBank Puerto Rico, recently made an important announcement regarding its capital actions. The corporation's Board of Directors has approved a stock repurchase program and declared a quarterly cash dividend on its outstanding common stock. These measures demonstrate the company's commitment to enhancing shareholder value and reinforcing its financial strength.
First BanCorp's Board of Directors has given the green light for a new stock repurchase program, allowing the company to buy back up to $225 million of its outstanding common stock. This repurchase program is expected to be executed throughout the end of the third quarter of 2024, signifying the company's confidence in its future performance and growth prospects.
In addition to the stock buyback program, First BanCorp has also declared a quarterly cash dividend of $0.14 per share on its outstanding common stock. Shareholders of record at the close of business on August 24, 2023, will be eligible to receive the dividend, which is scheduled to be paid on September 8, 2023. This move reflects the company's commitment to providing returns to its shareholders in the form of dividends.
Aurelio Alemán, the President, and Chief Executive Officer of First BanCorp, expressed confidence in the company's strong balance sheet and capital ratios, which are well above the "well capitalized" thresholds. This robust financial position allows the company to deploy capital in a balanced manner to support growth and financial soundness while also rewarding shareholders.
The corporation's stock repurchase program will be implemented using various methods, including open market purchases, accelerated share repurchases, privately negotiated transactions, or plans, including Rule 10b5-1 plans, while ensuring compliance with all legal and regulatory requirements. This flexibility allows First BanCorp to adapt its repurchase strategy based on its capital position, liquidity, financial performance, stock trading price, and general market conditions.
It's essential to note that the stock repurchase program is subject to change based on evolving circumstances. The corporation reserves the right to modify, extend, suspend, or terminate the repurchase program at any time at its discretion. The decision-making process will consider a range of factors to ensure that it aligns with the company's strategic objectives and prevailing market conditions.
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