The most recent report from the rating agency DBRS Morningstar establishes that FACE BANK International (FACEBANK) managed to maintain the rating and the stable forecast granted last year, informed the general manager Julio Carbonell.
The executive indicated that in its most recent review, the DBRS favorably considered FACEBANK’s compliance with the United States regulatory agencies, its business structure, and being the only international bank that maintains a real-time connection (online) with the Bank. of the Federal Reserve of New York.
In addition, he pointed out that these were the fundamental aspects for the rating obtained, which for the second year remains at BB.
When issuing its report, the rating house highlighted that, despite being a relatively young international bank, FACEBANK “has built a profitable banking franchise, helping its international clients to do business transactions in the United States.”
“FACEBANK has shown improvement and strong profitability metrics driven by a high net interest margin (NIM), supported by low financing costs and above-average performance on its residential mortgage loan portfolio, its top loan category,” reads the communication of the DBRS.
It was founded in 2006 in Puerto Rico and its asset base is in South Florida.
FACEBANK maintains its operation in Puerto Rico with a staff of 40 employees and the bank’s asset base is in the South Florida real estate market, where most of its clients acquire properties through mortgage loans with a minimum of up to 30% of ‘down payment’.
This makes the loan-to-value (LTV) ratio lower, and so does the risk. Also, delinquencies have remained low, with less than 10% of clients taking advantage of moratoriums due to the COVID-19 pandemic. Mortgages in South Florida are originated by the subsidiary of FACEBANK; Florida Home Trust Mortgage.
Every FACEBANK mortgage customer must create a deposit account, which helps make the operation sustainable, but the bank does not charge maintenance fees for the accounts. On the other hand, one third of the institution’s investments are in agency bonds and low-risk US Treasury products, an aspect that, together with its rigorous evaluation standards for clients and potential clients, allows it to have even more stability .
To continue increasing its client portfolio, FACEBANK has created an operational structure of international correspondent or institutional business development facilitators (IBDF). Such associates must meet rigorous anti-money laundering standards and be financially sound. In this way, FACEBANK will be able to facilitate access to the American financial system to foreign banks that wish to expand their business internationally.
“It is a new way of facilitating business. International banks, which do not have access to the dollar, end up seeing it as the best way to expand their local businesses and strengthen their brand, said Jairo Amaro, CFO of FACEBANK.