The 30-day average stock price of First BanCorp has fallen below $1 a share, triggering a warning from the New York Stock Exchange it may be delisted for not meeting price criteria for its common stock, according to the bank. First BanCorp is the parent company of FirstBank VI, FirstBank Puerto Rico and several other regional financial entities.
First BanCorp has six months to have a closing share price and a 30 trading-day average share price of at least $1 in order to avoid the delisting of its shares. If the stock price does not come into compliance, the NYSE may delist its common stock. The company will be filing a plan of correction with the NYSE shortly, according to a statement from the company.
The action has no impact on day-to-day operations, according to Alan Cohen, senior vice president of marketing at First BanCorp. The share-price threshold is important to the NYSE because it wants to avoid being in the business of trading penny stocks, Cohen said. "When the price is below a dollar, changes in price become wider, percentage-wise, and more erratic," he said.
But the stock price and its fluctuations do not affect deposits or the banks operating revenues, he said.
"We have until early 2011 to cure the price issue, so we will be discovering the different avenues available," he said. "But meantime, trading is in no way, shape or form affected and there is no impact on our day-to-day business."
