First BanCorp Announces Strategic Reorganization
First BanCorp. (the "Corporation") (NYSE: FBP), the bank holding company for FirstBank Puerto Rico, has embarked on a strategic reorganization aimed at streamlining operations, enhancing customer experience, and aligning resources for significant future growth. This initiative is a core component of the company’s corporate succession plan.
President and CEO Aurelio Alemán expressed excitement about the changes, stating, "We are committed to nurturing our internal talent and aligning our structure with our strategic objectives. These changes will ensure our ongoing success, propelled by a motivated team dedicated to sustainable growth and clients’ needs.”
Leadership Transition and Retirement of Key Executives
As part of this reorganization, the Corporation will see the retirement of two key executives. Cassan Pancham, Executive Vice President and Business Group Executive, will retire effective May 15, 2025. He has held vast responsibilities overseeing the Mortgage and Insurance segments, along with commercial business administration in the Eastern Caribbean.
Carlos Power, another Executive Vice President and Business Group Executive, will also retire on May 2, 2025. He has managed pivotal areas like Unsecured Consumer Lending and Auto business operations. Alemán acknowledged their contributions over four decades, stating, "We extend our heartfelt gratitude and wish them the best in their future paths.” Both executives will assist in a smooth transition to ensure ongoing success for the Corporation.
New Roles and Expanded Responsibilities
Starting from April 1st, the Corporation will implement crucial new appointments and expand several leadership roles. A notable introduction is the title of Senior Vice President Division Directors ("SVP Division Director"), which recognizes the complexity of the responsibilities being taken on by certain leaders.
Nayda Rivera-Batista Takes on a New Role
Nayda Rivera-Batista, currently the Chief Risk Officer, will transition to the new role of Executive Vice President and Chief Consumer Officer. She will oversee a broadened portfolio including Mortgage, Unsecured Consumer Lending, Auto, and Insurance lines. This new position highlights her strong leadership capabilities and prior success during her tenure at the Corporation. Additionally, Luzmarie Vélez and Alexis Colon will report to Rivera as SVP Division Directors.
Strengthening Compliance and Risk Management
In further organizational shifts, Sara Alvarez, Executive Vice President and General Counsel, will expand her role to encompass more regulatory compliance oversight. This highlights the Corporation’s commitment to maintaining rigorous adherence to industry regulations. Carmen Pagan will become SVP Division Director reporting to Alvarez as part of these adjustments.
Enhancements to Risk Management and Financial Oversight
Juan Carlos Pavia will take on greater responsibilities as Chief Credit Officer, particularly overseeing Portfolio Risk Management initiatives. Moreover, Lillian Diaz will manage the entire Eastern Caribbean Region, incorporating both commercial business and branch operations into her oversight.
Myrna Rivera will step up as the new Chief Risk Officer (CRO) and SVP Division Director, linking her extensive risk management expertise to the Corporation’s broader strategies. Said Ortiz will also be appointed SVP Division Director, overseeing critical units like Controllership and Financial Credit Risk.
About First BanCorp.
First BanCorp. operates as the parent company for FirstBank Puerto Rico, a state-chartered bank with operations spanning Puerto Rico, the U.S. Virgin Islands, and Florida, along with FirstBank Insurance Agency, LLC. The company is publicly traded on the New York Stock Exchange under the symbol "FBP." Through effective leadership restructuring and a focus on operational efficiency, First BanCorp is setting itself up for transformative growth and enhanced service delivery.
Frequently Asked Questions
What prompted First BanCorp's strategic reorganization?
The reorganization aims to improve operational efficiency, customer experience, and align resources for sustainable growth.
Who are the key executives retiring?
Cassan Pancham and Carlos Power are set to retire, marking a significant transition in leadership.
What new roles have been created in the reorganization?
Nayda Rivera-Batista has been appointed as the Executive Vice President and Chief Consumer Officer, among other leadership enhancements.
How does First BanCorp plan to improve compliance?
Sara Alvarez will oversee expanded compliance responsibilities to ensure strict adherence to regulations and industry standards.
What is the significance of the new SVP Division Director title?
This title reflects the increased scope and complexity of responsibilities among senior leaders within the Corporation.
