OFG Bancorp (NYSE:OFG) agrees to acquire Scotiabank's (NYSE:
BNS) Puerto Rico operation for $550M in cash and Scotiabank's U.S. Virgin Island branch operation for a $10M deposit premium.
The acquired operations will be merged into OFG's Oriental Bank and its related businesses, and will make Oriental the second largest in Puerto Rico in core deposits, branches, automated and interactive teller machines, and mortgage servicing.
The acquisition is expected to be ~40% accretive to OFG's 2020 EPS and significantly expand return on tangible common equity.
OFG will fund the deal with excess capital; the transaction is priced at 1.15x adjusted tangible book value for the Puerto Rico operation and 2% deposit premium for the USVI branches.
Expected to expand Oriental's mortgage servicing book five-fold to ~$5B.
OFG azione +20% AH