Stockholders' Equity

12 Months Ended

Dec. 31, 2016

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 both periods, December 31, 2016 and 2015 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, 2016 and 2015, the Bank’s legal surplus amounted to $76.3 million and $70.4 million, 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, 2016 the Company did not purchase any shares under the program. 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

At December 31, 2016 the number of shares that may yet be purchased under the $70 million program is estimated at 590,141 and was calculated by dividing the remaining balance of $7.7 million by $13.10 (closing price of the Company common stock at December 31, 2016.

The activity in connection with common shares held in treasury by the Company for the years ended December 31, 2016 and 2015 is set forth below:

	Year Ended December 31,
	2016			2015
		Dollar			Dollar
	Shares	Amount		Shares	Amount
	(In thousands, except shares data)
Beginning of year	8,757,960	$	105,379	8,012,254	$	97,070
Common shares used upon lapse of restricted stock units	(46,935)		(519)	(58,279)		(641)
Common shares repurchased as part of the stock repurchase program	-		-	803,985		8,950
End of year	8,711,025	$	104,860	8,757,960	$	105,379