McColl Partners, LLC ("McColl Partners") acted as financial advisor to Oriental Financial Group, Inc. (the “Company”) in Oriental Bank and Trust’s (“Oriental”) acquisition of all of the retail deposits and substantially all of the assets and operations of Eurobank from FDIC receivership on April 30, 2010.
Under Oriental’s agreement with the FDIC, Oriental assumed approximately $1.7 billion in assets and $722 million in deposits, as well as 22 branches in Puerto Rico. The assets include an approximate $1.6 billion loan portfolio which will be subject to a loss-sharing arrangement with the FDIC. Under the arrangement, the FDIC will bear 80 percent of qualifying losses. Oriental bid a deposit premium of 1.25 percent and an asset discount of (13.8) percent. The FDIC estimates the cost to the Deposit Insurance Fund to be $744 million.
About Oriental Financial Group, Inc.
Oriental is a diversified financial services company headquartered in San Juan, Puerto Rico. The Company has $6.5 billion in assets, operates through 21 financial centers in Puerto Rico, and has three business segments (Banking, Treasury, and Financial Services). The Company’s products and services include commercial and mortgage lending; checking and savings accounts; financial planning, insurance, money management and investment brokerage; as well as corporate and individual trust, and retirement products and programs.
About McColl Partners, LLC
McColl Partners is an independent investment banking firm specializing in the needs of management and owners of middle-market companies. With significant experience working with entrepreneurs, family-owned businesses, private equity groups, public companies, financial institutions, and divisions of large companies, the firm is dedicated to offering strategic advice and assistance to its clients regarding mergers and acquisitions and private capital raising assignments.
For more information about this transaction or our Financial Institutions Group, please contact Charlie Welch or Phil Colaco at 704-333-0525. More information about McColl Partners can be found at www.mccollpartners.com.
