OFG Bancorp, parent company of Oriental Bank, announced the Virgin Islands Banking Board approved the first regulatory step related to the acquisition of Scotiabank’s U.S. Virgin Island operations.
The permit authorizes Oriental to organize a bank in the territory. To assume Scotiabank’s operations and start serving customers in the USVI, Oriental will also need a license and approval from the Board and approvals from federal and Puerto Rico regulators.
“The Board was pleased with Oriental Bank’s presentation and its overall positive view of the economic impact its presence will have in the Territory,” said Lt. Governor Tregenza A. Roach, Chairman of the Virgin Islands Banking Board.
“We appreciate the consideration the Board gave our application and the assistance of the Division of Banking, Insurance and Financial Regulation in the application process,” said Ganesh Kumar, senior executive vice president of OFG Bancorp.
“We look forward to a long and beneficial relationship as we have had for more than 50 years in Puerto Rico,” Kumar said.
On June 26, OFG Bancorp announced its subsidiary Oriental Bank would acquire Scotiabank’s Puerto Rico operation for $550 million and its USVI branch operation for $10 million.
Scotiabank’s Puerto Rico and USVI operations will be merged into Oriental Bank and its related businesses. The acquisition is subject to customary regulatory approvals, which will likely take about six months to complete.
Once completed, Oriental will have a network of 58 branches, 431 ATM machines, and nearly 2,400 employees, including the 1,000 currently working for Scotiabank.