Continental Capital Corp. has agreed to be acquired by R&G Financial Corp., a $2.3 billion-asset bank based in San Juan, Puerto Rico.

Continental is one of the largest originators of single-family loans in Suffolk County, and the largest originator of FHA and VA loans in the New York metropolitan area.

Michael J. Wallace, chairman and chief executive of Continental, said the merger will give his company the financial strength to expand outside of its core markets.

The acquisition would bring R&G into the U.S. market for the first time. Hamilton, Carter, Smith & Co., the Beverly Hills, Calif., investment banking boutique, represented Continental in the negotiations.

The sale price was not disclosed, but Hamilton Carter's president, Gregory J. Bennett, said the deal includes a cash payment at closing plus payments over four years to Continental employees who are shareholders who remain with the company under employment contracts.

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