By the early 1960s, Westernbank had expanded to the western and southwestern region of the island, with bank branches in the towns of Aguadilla, San Germán and Cabo Rojo.

In 1988, facing an impending recession in the US and Puerto Rico, Westernbank began applying the same conservative measures, to reduce inherent risks and protect the bank's capital position.

During the following years, between 1989 and 1990, private and public savings banks on the island, with the exception of Westernbank, faced losses, restated their financial statements, and saw significant decreases in their stock prices.

This reorganization created the parent company, W Holding, and converted its main divisions, such as Westernbank, into wholly owned subsidiaries.

This move diversified the company's services while at the same time improving its investment portfolio, given that it could now place property, casualty, life and disability insurance while generating commission income.