R&G Financial to make March dividend payments, distributions, but future payments 'unlikely'

By Caroline Salls

Pittsburgh, March 7 - R&G Financial Corp. has received regulatory permission to make dividend payments for March on its four outstanding series of preferred stock and distributions for March on its trust preferred securities issues, but the company's ability to make future dividend payments and distributions is in jeopardy without improvements to its liquidity, capital and cash flows, according to a news release.

The regulatory approvals for the March dividend payments were conditioned on former chairman and chief executive officer Victor Galan's purchase of $5.2 million of delinquent loans to help the company make the payments.

R&G said payment of dividends and distributions on its outstanding preferred stock or its trust preferred securities "is unlikely in the foreseeable future."

As of Feb. 29, the company and Puerto Rico bank subsidiary R-G Premier Bank of Puerto Rico maintained capital ratios that complied with the requirements for "well-capitalized" status under federal bank regulations, the release said.

R&G is a San Juan, Puerto Rico, bank holding company.

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