Strong capital ratios Longstanding and stable market position in Puerto Rico Long-term benefits to the local franchise and the expected synergies from the acquisition of Banco Santander Puerto Rico A very high proportion of nonperforming assets (NPAs) Large exposures to loan types that could experience higher losses due to economic weakness resulting from the COVID-19 pandemic High geographic concentration in Puerto Rico, which has been plagued by infrastructure issues, fiscal austerity, and outmigration S&P Global Ratings' stable outlook acknowledges the potential competitive advantages for FirstBank Puerto Rico (FBP) from increased scale in its business franchise following the Banco Santander acquisition, the improvement in the combined entity's deposit funding and liquidity, and its strong capital position. On balance, in the near
