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April 8, 2008 |
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R&G FINANCIAL: Gets Regulatory Approval to Pay April Dividends R&G Financial Corporation has received regulatory permission to make dividend payments for April on its four outstanding series of preferred stock, and distributions for April on its trust preferred securities issues. Regulatory approvals are necessary as a result of the company's previously announced agreements with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and Commissioner of Financial Institutions of the Commonwealth of Puerto Rico. The permission granted by the Federal Reserve was conditioned upon the financial support provided by R&G Financial director, former Chairperson and Chief Executive Officer Victor Galan, through his purchase of a small portfolio of delinquent loans, which will assist the company in the partial funding of the company's April dividend payments. The company continues to believe it is very uncertain that future dividends and distributions will be approved absent material improvements to the company's liquidity, capital and cash flows. While it is possible that approval may be obtained and the company is taking steps to apply for further approvals, the company currently expects that the payment of dividends and distributions on its outstanding preferred stock or its trust preferred securities is unlikely in the foreseeable future. Headquartered in San Juan, Puerto Rico, R&G Financial Corp. (PNK: RGFC.PK) -- http://www.rgonline.com/ -- is a financial holding company with operations in Puerto Rico and the United States, providing banking, mortgage banking, investments, consumer finance and insurance through its wholly owned subsidiaries, R-G Premier Bank, R-G Crown Bank, R&G Mortgage Corporation, Puerto Rico's second largest mortgage banker, R-G Investments Corporation, the company's Puerto Rico broker- dealer, and R-G Insurance Corporation, its Puerto Rico insurance agency. The company operates 37 bank branches in Puerto Rico, 36 bank branches in the Orlando, Tampa/St. Petersburg and Jacksonville, Florida and Augusta, Georgia markets, and 44 mortgage offices in Puerto Rico, including 36 facilities located within R-G Premier Bank's banking branches. * * * As of September 2007, R&G Financial carried Fitch Ratings' CCC long-term issuer default rating. |
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