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8-K - FORM 8-K - OFG BANCORP | g23233e8vk.htm |
EX-2.1 - EX-2.1 - OFG BANCORP | g23233exv2w1.htm |
Exhibit 99.1
Puerto Rico Contact: Marilyn Santiago-Colón, Oriental Financial Group Inc. (787) 993-4648 U.S. Contact: Steven Anreder and Gary Fishman, Anreder & Company (212) 532-3232 |
ORIENTAL BANK AND TRUST ACQUIRES
THE OPERATIONS OF EUROBANK FROM THE FDIC
THE OPERATIONS OF EUROBANK FROM THE FDIC
TRANSFORMATIVE ACQUISITION INCLUDES EXPECTED DEPOSITS OF APPROXIMATELY
$785 MILLION AND EXPECTED ASSETS OF APPROXIMATELY $1.7 BILLION,
INCREASES BRANCHES TO 43, AND BROADENS MARKET OPPORTUNITIES
$785 MILLION AND EXPECTED ASSETS OF APPROXIMATELY $1.7 BILLION,
INCREASES BRANCHES TO 43, AND BROADENS MARKET OPPORTUNITIES
SAN JUAN, PUERTO RICO, April 30, 2010 Oriental Financial Group Inc. (the Company) (NYSE: OFG)
today announced that its commercial bank subsidiary, Oriental Bank and Trust (Oriental), has
acquired all of the retail deposits and substantially all of the assets and operations of Eurobank
from the Federal Deposit Insurance Corporation, as receiver of Eurobank.
José Rafael Fernández, President, CEO and Vice Chairman of the Board of the Company, said this
transaction helps restore normalcy to the Puerto Rico banking industry and represents a
transformative event for Oriental one that maintains Orientals historic financial strength
while providing new growth opportunities. This transaction significantly enhances Orientals
position in Puerto Rico and is very much in line with our strategy to expand the integrated
delivery of our services to mid and high net worth clients, and to increase our mix of loans
relative to investment securities.
We warmly welcome our new customers the consumers and businesses previously served by
Eurobank, continued Mr. Fernández. From your point of view, it will be business as usual. Your
deposits are now held in a well capitalized bank with a 46-year history of strength, service and
stability. And your deposits remain insured by the FDIC to the fullest extent permitted by law.
We are also very excited to welcome Eurobanks employees to the Oriental team.
Oriental has a culture that treasures its customer relationships. We pride ourselves in helping
our customers manage their finances through Orientals advisory model of delivery. We are flexible
and nimble in our service delivery. And we employ advanced technology that enables us to provide
for smooth and efficient operations. Representatives of Oriental are at all branches to assist
you, should you have any questions.
Under Orientals agreement with the FDIC, Oriental assumed expected deposits of approximately $785
million and expected assets of approximately $1.7 billion, including an approximately $1.58
billion loan portfolio which will be subject to a loss sharing arrangement pursuant to which the
FDIC will bear 80% of qualifying losses. As part of this transaction, the Company issued to the
FDIC a value appreciation instrument. Additionally, Oriental will issue to the FDIC a promissory
note in the amount of approximately $715.5 million to be repaid within one year of closing, subject
to up to 4 one-year renewals. The note covers a portion of the excess of assets acquired over the
liabilities assumed, rather than requiring Oriental to pay cash for such amount. The remaining
amount of such excess, which is expected to be approximately $100 million, will be paid in cash.
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The Company and Oriental were advised on this transaction by Keefe, Bruyette & Woods, Inc., as
financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP and McConnell Valdés LLC, as legal
advisors.
Eurobank customers who have questions about todays transaction can call the FDIC toll-free at
1-800-591-2903. The phone number will be operational this evening until 9:00 p.m., Atlantic
Standard Time (AST); on Saturday from 9:00 a.m. to 6:00 p.m., AST; on Sunday from noon to 6:00
p.m., AST; and thereafter from 8:00 a.m. to 8:00 p.m., AST.
About Oriental Financial Group
Oriental Financial Group Inc. is a diversified financial holding company operating under U.S. and
Puerto Rico banking laws and regulations. Now in its 46th year in business, Oriental
provides a full range of mortgage, commercial and consumer banking services through 43 Oriental
Group financial centers in Puerto Rico, as well as financial planning, trust, insurance, investment
brokerage and investment banking services. Investor information about Oriental can be found at
www.orientalfg.com.
Forward-Looking Statements
This press release contains certain forward-looking information about Oriental Financial Group that
is intended to be covered by the safe harbor for forward-looking statements provided by the
Private Securities Litigation Reform Act of 1995. All statements other than statements of
historical fact are forward-looking statements. Such statements involve inherent risks and
uncertainties, many of which are difficult to predict and are generally beyond the control of
Oriental Financial Group. Oriental Financial Group cautions readers that a number of important
factors could cause actual results to differ materially from those expressed in, or implied or
projected by, such forward-looking statements. If any of these risks or uncertainties materializes
or if any of the assumptions underlying such forward-looking statements proves to be incorrect,
Oriental Financial Groups results could differ materially from those expressed in, or implied or
projected by such forward-looking statements. Oriental Financial Group assumes no obligation to
update such forward-looking statements, except as required by law. For a more complete discussion
of risks and uncertainties, investors and security holders are urged to read the section titled
Risk Factors in Oriental Financial Groups Annual Report on Form 10-K and any other reports filed
by it with the SEC. The documents filed by Oriental Financial Group with the SEC may be obtained at
the SECs website at www.sec.gov. These documents may also be obtained free of charge from Oriental
Financial Group by directing a request to: Oriental Financial Group Inc., Investor Relations c/o
Anreder & Company, 286 Madison Avenue, Suite 907, New York, NY 10017; telephone: (212) 532-3232 or
(800) 421-1003; fax: (212) 679-7999; e-mail: ofg@anreder.com.
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