SAN JUAN, Puerto Rico, Sept. 17 Popular-buy-portfolio
SAN JUAN, Puerto Rico, Sept. 17 /PRNewswire-FirstCall/ -- Popular, Inc.
(Nasdaq: BPOP) announced today that its leading banking franchise in Puerto
Rico, Banco Popular of Puerto Rico, has reached an agreement to purchase from
R-G Mortgage Corp., a unit of R-G Financial, the third-party mortgage
servicing rights to a mortgage loan portfolio of approximately $5.1 billion.
The transaction is expected to close in the fourth quarter of 2008.
"This transaction will further fortify our leading position in Puerto Rico
and it is immediately accretive," said Richard L. Carrion, Chairman of the
Board and Chief Executive Officer of Popular, Inc.
"We continue to grow in our main market," said David Chafey, President of
Banco Popular of Puerto Rico. "This agreement increases our servicing
portfolio to approximately $20 billion, creates the opportunity for cost
synergies and provides an avenue to service an attractive clientele."
Forward-Looking Statements
The information included in this press release may contain certain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based on management's
current expectations and involve certain risks and uncertainties that may
cause actual results to differ materially from those expressed in forward-
looking statements. Factors such as changes in interest rate environment, as
well as general changes in business market and economic conditions may cause
actual results to differ from those contemplated by such forward-looking
statements. For a discussion of such risks and uncertainties, see the
Corporation's Annual Report on Form 10-K for the year ended December 31, 2007
as well as its filings with the U.S. Securities and Exchange Commission. The
Corporation assumes no obligation to update any forward-looking statements to
reflect occurrences or unanticipated events or circumstances after the date of
such statements.
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, and Popular Financial Holdings ("PFH"). 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 offers online consumer direct
lending and provides an online platform to raise deposits for BPNA. PFH
primarily continues to carry a maturing loan portfolio and operates a mortgage
loan servicing unit. 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 114 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.
Contact:
Investor Relations:
Jorge A. Junquera
Chief Financial Officer
Senior Executive Vice President
787-754-1685
Media Relations:
Teruca Rullan
Senior Vice President
Corporate Communications
787-281-5170 or 917-679-3596 (mobile)
SOURCE Popular, Inc.
