Triumph Bancorp in Dallas Buys Certain Doral Assets
Regulators have shut Doral Bank, ending a tumultuous decade for the Puerto Rican bank. The $5.9 billion-asset Doral was the fourth bank to fail this year and the biggest bank to be closed since the $11 billion-asset Westernbank in Puerto Rico was shuttered in April 2010.
Popular and FirstBank gained critical branches and deposits in a region where growth is hard to come by. Some observers said it could also benefit the island to have one less competitor.
Triumph Bancorp in Dallas has purchased several entities that the Federal Deposit Insurance Corp. retained after the failure of Doral Financial in Puerto Rico.
The $1.3 billion-asset Triumph said in a press release late Tuesday that one of its units bought the equity of Doral Money, along with loans with a face value of roughly $37 million.
Triumph also gained the management contracts to two active collateralized-loan obligations with about $703 million in assets, increasing the company's assets under management to about $1.7 billion.
The company said it divested some securities associated with the CLOs to an unnamed third party.
The acquisition provides more resolution to the Feb. 27 closure of Doral Bank. Three other banks, along with investment firm J.C. Flowers & Co., divided the majority of Doral's assets and deposits.