OFG Bancorp announced it has filed applications at four regulatory agencies for consent of its proposed acquisition of Scotiabank de Puerto Rico, according to public notices published Tuesday.
The petitions to the Federal Reserve, the Federal Deposit Insurance Corp., the Puerto Rico Office of the Commissioner of Financial Institutions and the U.S. Virgin Islands Banking Board seek approval of the transaction announced June 26, 2019.
As this media outlet reported, OFG Bancorp’s subsidiary Oriental Bank will acquire Scotiabank’s Puerto Rico operation for $550 million and its U.S. Virgin Island branch operation for $10 million.
Scotiabank’s Puerto Rico and USVI operations will be merged into Oriental Bank and its related businesses. As part of the process, Oriental must lay out its transaction to the regulatory agencies mentioned.
“The Federal Reserve considers a number of factors in deciding whether to approve the application, including the record of performance of the banks we own in helping to meet local credit needs,” Oriental said in the public notice. The public is encouraged to file comments in writing.
If the merger is completed, Oriental will keep its main office in San Juan, and “it is contemplated that the branches of Oriental Bank and Scotiabank de Puerto Rico will continue to operate as branches of Oriental Bank,” it said.
The transaction also calls for keeping the Scotiabank located in that bank’s Scotia Tower on Jesús T. Piñero Ave. as a branch of The Bank of Nova Scotia.
Meanwhile, the Scotiabank locations in the U.S. Virgin Islands — in Charlotte Amalie and St. Croix — will be converted into Oriental Bank branches, marking this financial institution’s debut in the neighboring islands.
In July, OFG Bancorp 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 authorized Oriental to organize a bank in the territory. But the deal must still receive a banking license from the same regulatory body to seal the deal.