Stockholders' Equity

12 Months Ended

Dec. 31, 2015

NOTE 20 – STOCKHOLDERS’ EQUITY

Additional Paid-in Capital

Additional paid-in capital represents contributed capital in excess of par value of common and preferred stock net of the costs of issuance. As of December 31, 2015 and 2014 accumulated issuance costs charged against additional paid in capital amounted to $13.6 million and $10.1 million for preferred and common stock, respectively.

Legal Surplus

The Puerto Rico Banking Act requires that a minimum of 10% of the Bank’s net income or loss for the year be transferred to a reserve fund until such fund (legal surplus) equals the total paid in capital on common and preferred stock. At December 31, 2015 and 2014, the Bank’s legal surplus amounted to $70.4 million and $70.5million, respectively. The amount transferred to the legal surplus account is not available for the payment of dividends to shareholders.

Treasury Stock

Under the Company’s current stock repurchase program it is authorized to purchase in the open market up to $70 million of its outstanding shares of common stock, of which approximately $7.7 million of authority remains. The shares of common stock repurchased are to be held by the Company as treasury shares. During the year ended December 31, 2015 the Company purchased 803,985 shares under this program for a total of $8.9 million, at an average price of $11.10 per share. During the year ended December 31, 2014 the Company purchased 1,153,998 shares at an average price of $14.66 per share.

	Total number of				Dollar amount of
	shares purchased as		Average		shares repurchased
		part of stock	price paid		(excluding
	repurchase programs		per share		commissions paid)
						(In thousands)
Period
April 2015		204,338	$	14.38	$	2,939
May 2015		48,200		13.09		631
June 2015		51,447		12.81		659
July 2015		500,000		9.39		4,696
Year Ended December 31, 2015		803,985	$	11.10	$	8,925


	Total number of				Dollar amount of
	shares purchased as		Average		shares repurchased
		part of stock	price paid		(excluding
	repurchase programs		per share		commissions paid)
						(In thousands)
Period
January 2014		57,700	$	14.73	$	850
February 2014		649,700		14.66		9,522
August 2014		100		15.50		2
October 2014		381,513		14.64		5,585
November 2014		63,100		14.69		927
December 2014		1,885		14.70		28
Year Ended December 31, 2014		1,153,998	$	14.66	$	16,914

At December 31, 2015 the number of shares that may yet be purchased under the $70 million program is estimated at 1,056,128 and was calculated by dividing the remaining balance of $7.7 million by $7.32 (closing price of the Company common stock at December 31, 2015). The Company did not purchase any shares of its common stock during the year ended December 31, 2015, other than through its publicly announced stock repurchase program.

The activity in connection with common shares held in treasury by the Company for the year ended December 31, 2015 and 2014 is set forth below:

	Year Ended December 31,
	2015			2014			2013
		Dollar			Dollar			Dollar
	Shares	Amount		Shares	Amount		Shares	Amount
	(In thousands, except shares data)
Beginning of year	8,012,254	$	97,070	7,030,101	$	80,642	7,090,597	$	81,275
Common shares used upon lapse of restricted stock units	(58,279)		(641)	(36,294)		(384)	(53,178)		(556)
Common shares repurchased as part of the stock repurchase program	803,985		8,950	1,153,998		16,948	-		-
Reclassification from common stock	-		-	(135,551)		(136)	-		-
Common shares used to match defined contribution plan, net	-		-	-		-	(7,318)		(77)
End of year	8,757,960	$	105,379	8,012,254	$	97,070	7,030,101	$	80,642