UNITED STATES OF AMERICA
BEFORE THE
BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM
WASHINGTON, D.C.
|
Written
Agreement by and between
EUROBANCSHARES,
INC.
San Juan,
Puerto Rico
and
FEDERAL RESERVE
BANK OF
NEW
YORK
New York, New
York
|
Docket No. 09-137-WA/RB-HC
|
WHEREAS, Eurobancshares, Inc., San Juan, Puerto,
Rico (“Eurobancshares”), a registered bank holding
company, owns and controls Eurobank, San Juan, Puerto Rico, a state
chartered nonmember bank (the “Bank”);
WHEREAS, it is the common goal of Eurobancshares
and the Federal Reserve Bank of New York (the “Reserve
Bank”) to maintain the financial soundness of Eurobancshares
so that Eurobancshares may serve as a source of strength to the
Bank;
WHEREAS, Eurobancshares and the Reserve Bank
have mutually agreed to enter into this Written Agreement (the
“Agreement”); and
WHEREAS, on September 26, 2009, the board of
directors of Eurobancshares, at a duly constituted meeting, adopted
a resolution authorizing and directing Rafael Arrillaga-Torrens,
Jr. to enter into this Agreement on behalf of Eurobancshares, and
consenting to compliance with each and every provision of this
Agreement by Eurobancshares and its institution-affiliated parties,
as defined in sections 3(u) and 8(b)(3) of the Federal Deposit
Insurance Act, as amended (the “FDI Act”) (12 U.S.C.
§§ 1813(u) and 1818(b)(3)).
NOW, THEREFORE, Eurobancshares and the Reserve
Bank agree as follows:
Capital
Plan
1. Within
60 days of this Agreement, Eurobancshares shall submit to the
Reserve Bank an acceptable written plan to maintain sufficient
capital at Eurobancshares, on a consolidated basis, and the Bank,
as a separate legal entity on a stand-alone basis. The
plan shall, at a minimum, address, consider, and
include:
(a) The
consolidated organization’s and the Bank’s current and
future capital requirements, including compliance with the Capital
Adequacy Guidelines for Bank Holding Companies: Risk-Based Measure
and Tier 1 Leverage Measure, Appendices A and D of Regulation Y of
the Board of Governors (12 C.F.R. Part 225, App. A and D) and the
applicable capital adequacy guidelines for the Bank issued by the
Bank’s federal regulator;
(b) the
adequacy of the Bank’s capital, taking into account the
volume of classified credits, concentrations of credit, allowance
for loan and lease losses (“ALLL”), current and
projected asset growth, and projected retained earnings;
(c) the
source and timing of additional funds to fulfill the consolidated
organization’s and the Bank’s future capital
requirements;
(d) supervisory
requests for additional capital at the Bank or the requirements of
any supervisory action imposed on the Bank by its federal or state
regulator; and
(e) the
requirements of section 225.4(a) of Regulation Y of the Board of
Governors (12 C.F.R. § 225.4(a)) that Eurobancshares serve as
a source of strength to the Bank.
2. Eurobancshares
shall notify the Reserve Bank, in writing, no more than 30 days
after the end of any quarter in which Eurobancshares’
consolidated capital ratios or the Bank’s capital ratios
(total risk-based, tier 1 risk-based, or leverage) fall below the
respective plan’s minimum ratios. Together with the
notification, Eurobancshares shall submit an acceptable written
plan that details the steps Eurobancshares will take to increase
its and/or the Bank’s capital ratios above the plan’s
minimums.
Dividends
3.
(a) Eurobancshares
shall not decl
