Santander BanCorp Announces Delayed Filing of Form 10-K
March 31 2006 - 5:55PM
PR Newswire (US)
SAN JUAN, Puerto Rico, March 31 /PRNewswire-FirstCall/ -- Santander
BanCorp (NYSE: SBP; LATIBEX: XSBP) announced today that its annual
report on Form 10-K for the year ended December 31, 2005 will be
further delayed. As previously disclosed, the Company intends to
include in its 2005 Form 10-K restated financial statements at and
for the years ended December 31, 2003 and December 31, 2004 and
restated financial information at and for the years ended December
31, 2001 and December 31, 2002. The Corporation will also restate
its quarterly reports on Form 10-Q for the first, second and third
quarters of 2005. These restatements will reflect the adjustments
described in the Company's Report on Form 8-K dated March 7, 2006.
The Company has substantially completed preparation of its
financial statements at and for the year ended December 31, 2005
and its restated financial statements for the affected periods.
However, the Company has not yet completed its analysis of the
accounting treatment for certain transactions with an unrelated
local financial institution during the first and second quarters of
2005, as described in its March 7, 2006 Form 8-K. If the Company
concludes that it should reverse its prior accounting for these
transactions, the effect of these possible adjustments will be a
reduction in net income of $1.7 million, or $0.04 per share, in the
first quarter of 2005 and an increase in net income of
approximately $0.2 million for the second, third and fourth
quarters of 2005 combined, for a total reduction of net income for
the full year 2005 of $1.5 million, or $0.03 per share. Although
the Company cannot be certain of the amount of time required to
complete its restatement process, it continues to work actively to
finalize and file its annual report on Form 10-K as expeditiously
as possible. Institutional Background Santander BanCorp is a
publicly held financial holding company that is traded on the New
York Stock Exchange (SBP) and on Latibex (Madrid Stock Exchange)
(XSBP). Banco Santander Central Hispano, S.A (Santander) owns 91%
of the outstanding common stock of Santander BanCorp. The Company
has four wholly owned subsidiaries, Banco Santander Puerto Rico,
Santander Securities Corporation, Santander Insurance Agency and
Santander Financial Services, Inc. Banco Santander Puerto Rico (the
Bank) has been operating in Puerto Rico for nearly three decades.
It offers a full array of services through 63 branches in the areas
of commercial, mortgage and consumer banking, supported by a team
of over 1,400 employees. The Bank through its wholly owned
subsidiary, Santander Mortgage Corporation, has 6 additional
offices to offer mortgage banking products and services. Santander
Securities offers securities brokerage services and provides
portfolio management services through its wholly owned subsidiary
Santander Asset Management Corporation. Santander Insurance Agency
offers life, health and disability coverage as a corporate agent
and also operates as a general agent. Santander Financial Services,
Inc. through, Island Finance, its recently acquired business unit,
provides consumer loans and real estate-secured loans to customers
through its 70 stores in Puerto Rico, as well as sales finance
contracts through retail merchants. For more information, visit the
Company's website at http://www.santandernet.com/. DATASOURCE:
Santander BanCorp CONTACT: Evelyn Vega, +1-787-777-4546, or Maria
Calero, +1-787-777-4437, both of Santander BanCorp Web site:
http://www.santandernet.com/
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