The Virgin Islands Banking Board has given OFG Bancorp, the financial holding company operating three subsidiaries – Oriental Bank, Oriental Financial Services and Oriental Insurance – in the US and Puerto Rico, permission to organize a bank in the territory.
This is the first step to OFG Bancorp being able to acquire Scotiabank’s United States Virgin Islands operations. The next step for the financial holding company is to the get a license and approval from the board and approvals from federal and Puerto Rico regulators.
Tregenza A. Roach is the lieutenant governor of the United States Virgin Island and the chairman of the Virgin Islands Banking Board. Commenting on the decision, he said, “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.”
Ganesh Kumar, senior executive vice president at OFG Bancorp, stated, “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.”
Kumar continued, “We look forward to a long and beneficial relationship as we have had for more than 50 years in Puerto Rico.”
OFG Bancorp announced the acquisition of Scotiabank’s United States Virgin Islands operations at the end of June 2019. The deal was worth $550m. The deal will see the operations merge into Oriental Bank and its related businesses.
Commenting at the time, José Rafael Fernández, president, CEO and vice chairman of the board of OFG Bancorp and Oriental Bank, said, “The acquisition provides the combined companies with greater prospects for growth, profitability and employee engagement. It is also an excellent opportunity to deploy OFG’s excess capital to accelerate the implementation of our differentiation strategy, enhance financial performance and increase shareholder value.”
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