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April 14, 2008 |
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R&G FINANCIAL: Gets Regulatory OK for April Dividend Payments R&G Financial Corporation 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 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 Mr. Victor Galan, a director and former chairman and chief executive officer of the company, 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 relates that 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 expects that the payment of dividends and distributions on its outstanding preferred stock or its trust preferred securities is unlikely in the foreseeable future. About R&G Financial Corp. 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. At June 30, 2006, the company operated 37 bank branches in Puerto Rico, 35 bank branches in the Orlando, Tampa/St. Petersburg and Jacksonville, Florida and Augusta, Georgia markets, and 49 mortgage offices in Puerto Rico, including 37 facilities located within R-G Premier Bank's banking branches. * * * R&G Financial Corporation continues to carry Fitch's 'CCC' long- term issuer default rating which was assigned in September 2007. |
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