OFG Bancorp announced it has received the OK from the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and the Puerto Rico Office of the Commissioner of Financial Institutions needed so that its banking subsidiary, Oriental Bank, may complete the acquisition of the local and U.S. Virgin Islands operations of Scotiabank.
The USVI deal is still pending final approval and related licenses from the USVI Banking Board, which is slated to meet on Dec. 16, according to published reports. OFG expects to complete the acquisition by Dec. 31, 2019, it announced.
“Upon closing, Scotiabank’s Puerto Rico and USVI operations will further strengthen Oriental’s position as the premier retail bank in Puerto Rico,” Oriental said in a statement.
“Oriental will have the second largest market share in Puerto Rico in core deposits, branches, automated and interactive teller machines, mortgage servicing, and insurance brokerage, in addition to becoming the third largest bank in USVI by deposits,” it added.
Oriental will have a diversified loan portfolio totaling $7.2 billion, deposits of $7.9 billion, and approximately 500,000 customers. Its mortgage servicing book will expand five-fold to approximately $5 billion, providing critical mass to become a meaningful source of non-interest income.
In addition, Oriental will have 460 ATMs and 11 Interactive Teller Machines, 55 branches, and more than 2,400 employees.
“We’re combining two excellent franchises to create a strongly capitalized, market-leading institution,” said Oriental President José Rafael Fernández. “We’re excited about welcoming Scotia’s valued customers and talented team into the Oriental family.”
“The new Oriental will offer a wide array of products and services with a special emphasis on consumers and small businesses in Puerto Rico and USVI, building upon our differentiated reputation for convenience and helping customers better manage their finances,” he added.
Upon closing and for a transitional period, Oriental will continue using the Scotiabank technology platforms.
As a result, customers can interact with the bank, and use branches, as they do currently without any need for change. In addition, customers will be able to use all Oriental ATMs at no charge and make credit card, mortgage, car and personal loan payments and make deposits by cash or check through express mailboxes in all branches.