FACEBANK Confirms Position as a Solid International Bank Based in Puerto Rico

FACEBANK International, the first international bank with real-time connection to the Federal Reserve Bank of New York (FRBNY), retained its ranking with a stable forecast and is shaping up as a strong financial institution in 2022, informed Julio Carbonell, General Manager.

 Carbonell highlighted the importance of the fact that, even in the midst of the prolonged crisis caused by the COVID-19 pandemic, FACEBANK managed to show a steady progress in the expansion of their Latin American regions and in maintaining its BB rating for the third consecutive year, according to the most recent report from credit rating agency DBRS Morningstar.

“This achievement demonstrates FACEBANK’s resilience and financial strength, where—despite the market conditions, the yield curve, and the effects of the pandemic—we have been able to solidify our presence in Latin American markets and improve our performance indexes,” stated the bank’s General Manager, who is currently attending the 55th. Annual Meeting of the Latin American Banking Federation (FELABAN, for its Spanish acronym), which is being held in South Florida.

“The launching of digital products this year has been instrumental in promoting banking services to the Latin American community in the United States,” said Carbonell.

In their latest report issued on Oct. 19, DBRS acknowledged FACEBANK’s online connection to the FRBNY as a “key component” to FACEBANK’s rating “which allows it to efficiently clear deposits for its customers, saving both time and expense.” DBRS stated in a press release that, “[w]e view this as a competitive advantage for FACEBANK, as it is the only IBE with this connectivity.”

The credit rating agency attributed FACEBANK’s positive evaluation to its adequately diversified investment grade corporate portfolio with 23% of its liquid assets available for sale, including U.S. Government bonds. Furthermore, its Net Interest Margin (NIM) is above average, as well as the performance of its mortgage subsidiary, Florida Home Trust Mortgage, where its asset base is located. Property values have soared in South Florida following the COVID-19 pandemic, while default rates have remained low, which has further strengthened the bank’s asset base.

“FACEBANK’s financial strength despite current market conditions is due to, first of all, a solid customer base that have placed their trust in our bank and a sound administration that applies the best practices of the banking industry; this has allowed us to maintain an excellent asset quality, as well as excellent relations with the regulatory entities,” explained Jairo Amaro, FACEBANK’s CFO. “Also, our innovation in banking services and digital banking, and the launching of the PipolPay (for money transfers) and Nueva Cuenta Dólar (for bank account openings) applications, are an integral part of our strategic plan for the future,” explained Amaro. 

15 years in Puerto Rico

Established in Puerto Rico since 2006, with a workforce of 56 (direct) employees, FACEBANK conducts its operations in compliance with all U.S. and international laws and regulations. The bank’s asset base is in South Florida’s real estate market, where the majority of its clients acquire properties through mortgage loans with minimum down payments of up to 30%. This lowers the loan-to-value (LTV) ratio, significantly reducing risk for these loans.

FACEBANK has also built an operational structure for international correspondent banking services with international business development facilitators (IBDF), which facilitate the creation and management of U.S. dollar deposit accounts in different countries. Each IBDF must comply with strict anti-money laundering standards and be financially sound. In doing so, FACEBANK is able to facilitate access to the American financial system for foreign customers that wish to expand their business internationally.

FACEBANK has a portfolio of over 40,000 customers in countries within North, Central, and South America. Its strict compliance with U.S. regulatory agencies since its founding 15 years ago, its status as the only international bank that maintains a real-time connection with the Federal Reserve Bank of New York, and its diversified business structure, provide the foundation for this banking institution’s growth as it enters its second decade of operations.