Bid Summary
Westernbank Puerto Rico, Mayaguez, PR
Closing Date: April 30, 2010
Winning Bidder:
Banco Popular de Puerto Rico
Winning Bid:
All deposits, whole bank with loss share - Asset Discount of 12.0%; Deposit Premium 0%, First Loss Tranche 0%, Equity Appreciation Instrument, Financing Note
Cover (second place) Bidder:
Scotiabank de Puerto Rico, Hato Rey, Puerto Rico
Cover Bid:
All deposits, whole bank with loss share - Asset Discount of 11.17%; Deposit Premium 1.66%; First Loss Tranche 0%; Value Appreciation Instrument.
Other Bidder Names and Locations:
Doral Bank, San Juan, Puerto Rico
Other Bids:
All deposits, modified whole bank with loss share - Asset Discount of 11.3%; Deposit Premium of 1%, First Loss Tranche 0%, Equity Appreciation Instrument, Financing Note.
All deposits, whole bank with loss share - Asset Discount of 11.80%; Deposit Premium of 0%, First Loss Tranche 0%, Equity Appreciation Instrument, Financing Note.
All deposits, modified whole bank with loss share - Asset Discount of 12.4%; Deposit Premium of 1%, First Loss Tranche 0%, Equity Appreciation Instrument, Financing Note.
All deposits, whole bank with loss share - Asset Discount of 15.4%; Deposit Premium of 1%, First Loss Tranche 0%, Equity Appreciation Instrument, Financing Note.
All deposits, whole bank with loss share - Asset Discount of 16.3%; Deposit Premium of 0%, First Loss Tranche 0%.
All deposits, whole bank with loss share - Asset Discount of 16.08%; Deposit Premium of 0%, First Loss Tranche 0%.
All deposits, whole bank with loss share - Asset Discount of 17.9%; Deposit Premium of 1%, First Loss Tranche 0%, Equity Appreciation Instrument, Financing Note.
Notes:
- The winning bidder's acquisition of all the deposits was the least costly resolution compared to a liquidation alternative and the other bids. The liquidation alternative was valued using valuation models to estimate the market value of the assets. The bids for loss share were valued using a discounted cash flow analysis for the loss share portfolio over the life of the loss share agreement.
- There are more bids than bidders because one or more bidders submitted more than one bid.
- For more information on the bid disclosure policy, see https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/biddocs.html