Exhibit 99
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| | Puerto Rico Contact:
Marilyn Santiago-Colón,
Oriental Financial Group Inc.
(787) 993-4648
U.S. Contact:
Steven Anreder and Gary Fishman,
Anreder & Company
(212) 532-3232 |
ORIENTAL FINANCIAL GROUP REPORTS SECOND QUARTER INCOME AVAILABLE TO
COMMON SHAREHOLDERS OF $12.5 MILLION OR $0.38 PER SHARE
Reflects FDIC-Assisted Eurobank Acquisition on April 30, 2010 and Organic Growth
SAN JUAN, Puerto Rico, August 4, 2010 — Oriental Financial Group Inc. (NYSE: OFG) today announced income available to common shareholders for the second quarter ended June 30, 2010 of $12.5 million, or $0.38 per diluted share.
José Rafael Fernández, Vice Chairman of the Board, President and Chief Executive Officer, said second quarter 2010 results were affected by two significant events: Oriental’s April 30, 2010 FDIC-assisted acquisition of certain Eurobank assets, liabilities and operations, and Oriental’s April 28, 2010 issuance of Mandatorily Convertible Non-Cumulative Non-Voting Perpetual Preferred Stock, Series C, which raised a net $189 million in connection with the Eurobank acquisition and was converted to common stock on July 8, 2010.
“The key takeaway from the second quarter of 2010 is that the acquisition of Eurobank is proceeding well — financially, operationally and strategically,” said Mr. Fernández. “It is fitting as we had expected into our plans of generating more recurring income from our customer based businesses versus capital markets, and the integration process is going smoothly.”
Second Quarter 2010 Highlights
Mr. Fernández noted the following highlights from Oriental’s second quarter 2010 performance:
| 1. | | Increased interest income from loans.It expanded 76.5% sequentially due to the addition of the former Eurobank loans. As a share of total interest income, income from loans represented 38.1% versus 25.0% in the sequential quarter. |
| 2. | | Expanded net interest margin.Reflecting the higher yield on loans and the reduction in the average cost of deposits and borrowings, net interest margin expanded to 2.29% from 1.88% in the sequential quarter. |
| 3. | | Higher banking revenues.This grew 69.8% on a sequential quarter basis, primarily reflecting increased fees from existing Oriental and the former Eurobank customers. |
| 4. | | Increase in deposit base.Retail deposits of $1.8 billion rose 24.2% from March 31, 2010, reflecting growth from both former Eurobank and Oriental’s existing customers. |
| 5. | | Increased capital.Book value of $14.49 per common share at June 30, 2010 increased 20.6% from March 31, 2010, reflecting significant improvement in the valuation of the investment securities portfolio and increased retained earnings. |
| 6. | | Increased assets.Total financial assets managed and owned of $11.3 billion at June 30, 2010 increased 18.8% from March 31, 2010, reflecting growth of trust assets managed, broker-dealer assets gathered and assets owned. |
“The Eurobank acquisition is creating growth opportunities for Oriental,” said Mr. Fernández. “We will be able to significantly expand our branch network with the former Eurobank branches we decide to retain. Former Eurobank customers represent a solid base from which to continue to grow Oriental’s personalized wealth management services. The combination of Eurobank’s and Oriental’s commercial banking operations creates a strong platform from which to expand market share.”
Net Interest Income
Net interest income of $38.7 million increased 31.3% quarter over quarter.
| • | | Interest income of $81.5 million increased 15.9% sequentially, resulting in a yield of 4.84% for the second quarter of 2010 compared to 4.50% in the preceding quarter. |
| • | | The sequential increase in both income and yield is primarily attributable to $13.5 million from former Eurobank loans, which more than offset lower interest rates on new government agency securities in which Oriental reinvested to replace securities sold or which matured over the last 12 months. |
| • | | Interest expense of $42.9 million reflects a reduction in cost of funds to 2.58% compared to 2.88% in the sequential quarter, due primarily to lower cost of funds from both Oriental and Eurobank-acquired deposit accounts. |
Banking and Wealth Management Revenues
Banking and wealth management revenues of $9.8 million increased 32.0% on a sequential quarter basis, reflecting:
| • | | The addition of approximately $1.2 million in banking service revenues, primarily due to a higher volume of fees from existing Oriental and the former Eurobank’s commercial and retail deposit accounts as well as commercial point of sale and cash management services. |
| • | | Continued growth of Oriental’s wealth management revenues. Trust assets managed and broker dealer assets gathered totaling $3.2 billion at June 30, 2010, most of which generate recurring income, increased 7.3% from March 31, 2010. Sequential growth reflected the addition of approximately $140 million in trust assets from the former Eurobank operations and growth from Oriental’s existing operations. |
| • | | A rebound in revenues from Oriental’s mortgage banking activities, reflecting higher production than in the previous quarter, better pricing of product sold into the secondary market, and increased origination fees and servicing income. Oriental sells most of its conforming mortgages, which typically account for approximately 90% of quarterly production, into the secondary market. |
Other Gains and Losses
Other gains and losses of $2.5 million included the following major items:
| • | | $16.5 million bargain purchase gain from the FDIC-assisted transaction, as previously reported in Oriental’s July 16, 2010 8-K/A in connection with the Eurobank acquisition. |
| • | | $11.8 million gain on the sale of securities, as Oriental took further advantage of the falling interest rate environment to lock in profits. |
| • | | $1.4 million accretion of the FDIC loss share indemnification asset related to the former Eurobank loan portfolio. The estimated fair value of this asset was determined by discounting the projected cash flows related to the loss sharing agreements based on expected reimbursements, primarily for credit losses on covered assets. The time value of money incorporated into the present value computation is accreted over the shorter life of the loss sharing agreements or the holding period of the covered assets. |
| • | | A favorable change of $909,000 in the estimated fair value of an equity appreciation instrument issued to, but not exercised, by the FDIC in connection with the Eurobank acquisition. |
| • | | Losses on derivative activities of $26.6 million, which included realized losses of $24.7 million due to the termination of forward-settle swaps with a notional amount of $900 million. These terminations allowed Oriental to enter into new forward-settle swap contracts for the same notional amount, and effectively reduce the interest rate of the pay-fixed side of such deals from an average rate of 3.53% to an average rate of 2.45%. The losses on derivative activities also included $1.5 million of a valuation loss on the new swaps. |
| • | | $1.8 million in other than temporary impairment charges on the BALTA private label CMO. |
Non-Interest Expenses
Non-interest expenses of $27.9 million increased $7.5 million on a sequential quarter basis. Approximately $5.4 million of the sequential increase was due to the Eurobank acquisition, of which approximately $1 million is considered to be one-time acquisition-related costs. The current non-interest expense run rate for former Eurobank operations is about $3.5 million a month, including contracted third party services, representing savings of approximately 25% from when they were acquired. Oriental expects additional reductions in Eurobank related costs from branch and operational synergies and system conversions which are estimated to be completed prior to year end 2010.
Undistributed Earnings Allocated to Convertible Preferred Shares
During the second quarter of 2010, Oriental issued $200 million in Mandatorily Convertible Non-Cumulative Voting Perpetual Preferred Stock, Series C that was converted on July 8, 2010 into 13.32 million shares of common stock. The income available for common shareholders for the quarter has been reduced by $3.1 million, representing the allocation of the net income that corresponds to the convertible preferred shares. This did not affect total stockholders’ equity or book value per common share, but it did reduce income per common share for the quarter and six month period ended June 30, 2010.
Investments
Investments of $4.9 billion at June 30, 2010 were approximately $327.0 million higher than at March 31, 2010, reflecting the investment of excess cash. Approximately 96% of Oriental’s portfolio consists of fixed-rate mortgage-backed securities or notes, guaranteed or issued by FNMA, FHLMC or GNMA, and U.S. agency senior debt obligations, backed by a U.S. government sponsored entity or the full faith and credit of the U.S. government.
Loans
Total loans, net, of $1.9 billion at June 30, 2010 were 72.1% higher than at March 31, 2010. Sequentially, non-covered gross loans (primarily consisting of the Oriental existing loan portfolio) increased approximately $8.2 million, while covered loans (the FDIC-assisted Eurobank loan portfolio) added $809.9 million. Total loan production and purchases of $89.3 million increased 14.4% quarter over quarter. Of the sequential increase, more than half came from Oriental’s existing residential mortgage loan production and about 16% from the former Eurobank leasing operation, with the balance from Oriental’s existing commercial and consumer loan production.
Other Assets
Other assets of $693.2 million at June 30, 2010 compared to $155.2 million at March 31, 2010. The increase primarily reflects the second quarter addition of a $517.7 million FDIC loss share indemnification asset and approximately $20.6 million in foreclosed real estate, both arising out of the Eurobank acquisition. As reported in the 8-K/A filed July 16, 2010, as part of the Eurobank loan portfolio fair value estimation, Oriental established the FDIC loss share indemnification asset at April 30, 2010, representing the present value of the estimated losses on covered loans and certain other covered assets to be reimbursed by the FDIC under the loss sharing agreements.
Deposits and Borrowings
Deposits of $2.5 billion at June 30, 2010 increased 39.7% from March 31, 2010. The $360.2 million sequential increase in core deposits consisted of approximately $100 million from Oriental operations and approximately $260 million from the former Eurobank operations, including a modest increase since April 30th. The $363.2 million sequential quarter increase in institutional deposits represents mainly deposits assumed as part of the Eurobank acquisition, net of maturities. The sequential quarter increase in borrowings primarily reflects Oriental’s note payable to the FDIC of $711.1 million in connection with the Eurobank acquisition.
Capital
Total stockholders’ equity of $746.0 million increased 60.7% or $281.9 million from March 31, 2010. The increase primarily reflects $189 million in net proceeds from the Preferred Stock, Series C; a $78.4 million improvement in accumulated other comprehensive income due to the favorable environment for fixed income securities during the quarter; and increased retained earnings. There were 33.0 million shares outstanding at June 30, 2010 compared to 24.2 million a year ago. The increase was primarily attributable to Oriental’s first quarter of 2010 equity offering, which raised a net $95 million.
Oriental maintains regulatory capital ratios well above the requirements for a well-capitalized institution. At June 30, 2010, the Leverage Capital Ratio was 9.37%, Tier-1 Risk-Based Capital Ratio was 24.17%, and Total Risk-Based Capital Ratio was 25.09%. In addition, Tangible Common Equity to Total Assets was 5.88% and total equity to risk-weighted assets, which takes into consideration that nearly all of Oriental’s securities portfolio is backed by a U.S. government sponsored entity or the full faith and credit of the U.S. government, was 24.55%.
Credit Quality (excludes covered assets)
Provision for loan and lease losses of $4.1 million increased $450,000 from the year ago quarter and $86,000 quarter over quarter. Net credit losses of $2.1 million were virtually level with a year ago and up $765,000 sequentially; for the first six months of 2010, net credit losses of $3.4 million are down 23.5% from the comparable year ago period. The allowance for loan and lease losses, stood at $28.0 million, 67.5% higher than the year ago quarter and 7.8% above the sequential quarter. It now represents 2.40% of loans versus 1.39% in the year ago quarter and 2.24% in the sequential quarter.
Non-performing loans of $110.0 million at June 30, 2010, while up $20.2 million year over year, increased just $738,000 from March 31, 2010. Oriental’s non-performing loans generally reflect the economic environment in Puerto Rico. Oriental does not expect non-performing loans to result in significantly higher losses as most are well-collateralized with adequate loan-to-value ratios. Oriental believes that credit quality might be starting to stabilize although it would require at least two more quarters to confirm this trend.
Non-GAAP Financial Measures
From time to time, Oriental uses certain non-GAAP measures of financial performance to supplement the financial statements presented in accordance with GAAP. Oriental presents non-GAAP measures when its management believes that the additional information is useful and meaningful to investors. Non-GAAP measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The presentation of non-GAAP measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP.
Oriental’s management has reported and discussed the results of operations herein both on a GAAP basis and on a pre-tax operating income basis (as defined as net interest income after provision for loan and lease losses and banking and wealth management revenues, less non-interest expenses, and as calculated on the accompanying table). Oriental’s management believes that, given the nature of the items excluded from the definition of pre-tax operating income, it is useful to state what the results of operations would have been without them so that investors can see the financial trends from Oriental’s continuing business.
Tangible common equity consists of common equity less goodwill. Management believes that the ratios of tangible common equity to total assets and to risk-weighted assets assist investors in analyzing Oriental’s capital position.
Conference Call
A conference call to discuss Oriental’s results, outlook and related matters will be held on Wednesday, August 4, 2010 at 10:00 AM Eastern & Puerto Rico Time. The call will be accessible live via a webcast on Oriental’s Investor Relations website atwww.orientalfg.com. A webcast replay will be available shortly thereafter. Access the webcast link in advance to download any necessary software.
About Oriental Financial Group
Oriental Financial Group Inc. is a diversified financial holding company operating under U.S. and Puerto Rico banking laws and regulations. Now in its 46th year in business, Oriental provides a full range of mortgage, commercial and consumer banking services, as well as financial planning, trust, insurance, investment brokerage and investment banking services, primarily in Puerto Rico. Investor information about Oriental can be found atwww.orientalfg.com.
Forward-Looking Statements
This news release may contain forward-looking statements that reflect management’s beliefs and expectations and are subject to risks and uncertainties inherent to Oriental’s business, including, without limitation, the effect of economic and market conditions, the level and volatility of interest rates, and other risks and considerations detailed in Oriental’s filings with the Securities and Exchange Commission. These or other factors could cause actual results to differ materially from forward-looking statements. Oriental also disclaims any obligations to update information contained in this news release because of developments occurring after the date of issuance.
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ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)
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| | | QUARTER ENDED | | | SIX-MONTH PERIOD ENDED | |
| Summary of Operations (Dollars in thousands, except per share data): | | 30-Jun-10 | | | 30-Jun-09 | | | % | | | 31-Mar-10 | | | 30-Jun-10 | | | 30-Jun-09 | | | % | |
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Interest Income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 31,065 | | | $ | 18,707 | | | | 66.1 | % | | $ | 17,598 | | | $ | 48,663 | | | $ | 37,027 | | | | 31.4 | % |
| Mortgage-backed securities | | | 41,519 | | | | 51,721 | | | | -19.7 | % | | | 43,594 | | | | 85,113 | | | | 102,429 | | | | -16.9 | % |
| Investment securities | | | 8,782 | | | | 11,433 | | | | -23.2 | % | | | 9,063 | | | | 17,845 | | | | 26,155 | | | | -31.8 | % |
| Short term investments | | | 143 | | | | 190 | | | | -24.7 | % | | | 42 | | | | 185 | | | | 371 | | | | -50.1 | % |
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Total interest income | | | 81,509 | | | | 82,051 | | | | -0.7 | % | | | 70,297 | | | | 151,806 | | | | 165,982 | | | | -8.5 | % |
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Interest Expense: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 11,927 | | | | 14,149 | | | | -15.7 | % | | | 11,243 | | | | 23,170 | | | | 27,972 | | | | -17.2 | % |
| Securities sold under agreements to repurchase | | | 25,487 | | | | 27,929 | | | | -8.7 | % | | | 25,285 | | | | 50,772 | | | | 63,728 | | | | -20.3 | % |
| Advances from FHLB and other borrowings | | | 3,053 | | | | 3,075 | | | | -0.7 | % | | | 3,012 | | | | 6,065 | | | | 6,171 | | | | -1.7 | % |
| FDIC-guaranteed term notes | | | 1,021 | | | | 1,021 | | | | 0.0 | % | | | 1,021 | | | | 2,042 | | | | 1,133 | | | | 80.2 | % |
| Purchase money note issued to the FDIC | | | 1,064 | | | | — | | | | 100.0 | % | | | — | | �� | | 1,064 | | | | — | | | | 100.0 | % |
| Subordinated capital notes | | | 305 | | | | 389 | | | | -21.6 | % | | | 298 | | | | 603 | | | | 825 | | | | -26.9 | % |
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Total interest expense | | | 42,857 | | | | 46,563 | | | | -8.0 | % | | | 40,859 | | | | 83,716 | | | | 99,829 | | | | -16.1 | % |
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Net interest income | | | 38,652 | | | | 35,488 | | | | 8.9 | % | | | 29,438 | | | | 68,090 | | | | 66,153 | | | | 2.9 | % |
| Provision for loan and lease losses | | | 4,100 | | | | 3,650 | | | | 12.3 | % | | | 4,014 | | | | 8,114 | | | | 6,850 | | | | 18.5 | % |
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Net interest income after provision for loan and lease losses | | | 34,552 | | | | 31,838 | | | | 8.5 | % | | | 25,424 | | | | 59,976 | | | | 59,303 | | | | 1.1 | % |
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Non-Interest Income (loss): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Wealth management revenues | | | 4,625 | | | | 3,285 | | | | 40.8 | % | | | 3,978 | | | | 8,603 | | | | 6,399 | | | | 34.4 | % |
| Banking service revenues | | | 2,797 | | | | 1,602 | | | | 74.6 | % | | | 1,647 | | | | 4,444 | | | | 2,995 | | | | 48.4 | % |
| Investment banking revenues | | | 34 | | | | 8 | | | | 325.0 | % | | | — | | | | 34 | | | | (4 | ) | | | 950.0 | % |
| Mortgage banking activities | | | 2,339 | | | | 2,806 | | | | -16.6 | % | | | 1,797 | | | | 4,136 | | | | 4,959 | | | | -16.6 | % |
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Total banking and wealth management revenues | | | 9,795 | | | | 7,701 | | | | 27.2 | % | | | 7,422 | | | | 17,217 | | | | 14,349 | | | | 20.0 | % |
| Net gain (loss) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sales of securities | | | 11,833 | | | | 10,520 | | | | 12.5 | % | | | 12,020 | | | | 23,853 | | | | 20,860 | | | | 14.3 | % |
| Other than temporary impairments on securities | | | (1,796 | ) | | | (4,416 | ) | | | 59.3 | % | | | (632 | ) | | | (2,428 | ) | | | (4,416 | ) | | | 45.0 | % |
| Derivatives | | | (26,615 | ) | | | 19,408 | | | | -237.1 | % | | | (10,636 | ) | | | (37,251 | ) | | | 19,842 | | | | -287.7 | % |
| Trading securities | | | 1 | | | | 12,959 | | | | -100.0 | % | | | (3 | ) | | | (2 | ) | | | 12,932 | | | | -100.0 | % |
| Bargain purchase from FDIC assisted acquisition | | | 16,463 | | | | — | | | | 100.0 | % | | | — | | | | 16,463 | | | | — | | | | 100.0 | % |
| Fair value adjustment on FDIC equity appreciation instrument | | | 909 | | | | — | | | | 100.0 | % | | | — | | | | 909 | | | | — | | | | 100.0 | % |
| Accretion of FDIC loss-share indemnification asset | | | 1,444 | | | | — | | | | 100.0 | % | | | — | | | | 1,444 | | | | — | | | | 100.0 | % |
| Foreclosed real estate | | | (26 | ) | | | (136 | ) | | | 80.9 | % | | | (117 | ) | | | (143 | ) | | | (298 | ) | | | 52.0 | % |
| Other | | | 295 | | | | 15 | | | | 1866.7 | % | | | 23 | | | | 318 | | | | 28 | | | | 1035.7 | % |
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Total non-interest income, net | | | 12,303 | | | | 46,051 | | | | -73.3 | % | | | 8,077 | | | | 20,380 | | | | 63,297 | | | | -67.8 | % |
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Non-Interest Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Compensation and employee benefits | | | 10,427 | | | | 8,020 | | | | 30.0 | % | | | 8,250 | | | | 18,677 | | | | 15,744 | | | | 18.6 | % |
| Occupancy and equipment | | | 4,601 | | | | 3,758 | | | | 22.4 | % | | | 3,594 | | | | 8,195 | | | | 7,247 | | | | 13.1 | % |
| Professional and service fees | | | 3,920 | | | | 2,394 | | | | 63.7 | % | | | 2,153 | | | | 6,073 | | | | 5,002 | | | | 21.4 | % |
| Insurance | | | 1,733 | | | | 3,472 | | | | -50.1 | % | | | 1,833 | | | | 3,566 | | | | 4,287 | | | | -16.8 | % |
| Advertising and business promotion | | | 1,361 | | | | 1,028 | | | | 32.4 | % | | | 699 | | | | 2,060 | | | | 2,232 | | | | -7.7 | % |
| Taxes, other than payroll and income taxes | | | 1,291 | | | | 649 | | | | 98.9 | % | | | 857 | | | | 2,148 | | | | 1,295 | | | | 65.9 | % |
| Electronic banking charges | | | 1,113 | | | | 596 | | | | 86.7 | % | | | 678 | | | | 1,791 | | | | 1,136 | | | | 57.7 | % |
| Loan servicing expenses | | | 452 | | | | 388 | | | | 16.5 | % | | | 427 | | | | 879 | | | | 771 | | | | 14.0 | % |
| Communication | | | 740 | | | | 402 | | | | 84.1 | % | | | 342 | | | | 1,082 | | | | 781 | | | | 38.5 | % |
| Directors and investor relations | | | 388 | | | | 332 | | | | 16.9 | % | | | 315 | | | | 703 | | | | 681 | | | | 3.2 | % |
| Clearing and wrap fees expenses | | | 342 | | | | 237 | | | | 44.3 | % | | | 297 | | | | 639 | | | | 567 | | | | 12.7 | % |
| Printing, postage, stationery and supplies | | | 292 | | | | 215 | | | | 35.8 | % | | | 203 | | | | 495 | | | | 471 | | | | 5.1 | % |
| Foreclosure and repossession expenses | | | 270 | | | | 200 | | | | 35.0 | % | | | 302 | | | | 572 | | | | 446 | | | | 28.3 | % |
| Training and travel | | | 243 | | | | 163 | | | | 49.1 | % | | | 228 | | | | 471 | | | | 250 | | | | 88.4 | % |
| Other | | | 699 | | | | 360 | | | | 94.2 | % | | | 215 | | | | 914 | | | | 577 | | | | 58.4 | % |
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Total non-interest expenses | | | 27,872 | | | | 22,214 | | | | 25.5 | % | | | 20,393 | | | | 48,265 | | | | 41,487 | | | | 16.3 | % |
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Income before income taxes | | | 18,983 | | | | 55,675 | | | | -65.9 | % | | | 13,108 | | | | 32,091 | | | | 81,113 | | | | -60.4 | % |
| Income tax expense | | | 1,634 | | | | 4,761 | | | | -65.7 | % | | | 1,172 | | | | 2,806 | | | | 5,451 | | | | -48.5 | % |
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Net income | | | 17,349 | | | | 50,914 | | | | -65.9 | % | | | 11,936 | | | | 29,285 | | | | 75,662 | | | | -61.3 | % |
| Less: Dividends on preferred stock | | | (1,733 | ) | | | (1,201 | ) | | | -44.3 | % | | | (1,201 | ) | | | (2,934 | ) | | | (2,401 | ) | | | -22.2 | % |
| Less: Allocation of undistributed earnings for participating preferred shares | | | (3,104 | ) | | | — | | | | -100.0 | % | | | — | | | | (3,104 | ) | | | — | | | | -100.0 | % |
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Income available to common shareholders | | $ | 12,512 | | | $ | 49,713 | | | | -74.8 | % | | $ | 10,735 | | | $ | 23,247 | | | $ | 73,261 | | | | -68.3 | % |
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ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)
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| | | QUARTER ENDED | | | SIX-MONTH PERIOD ENDED | |
| (Dollars in thousands, except per share data): | | 30-Jun-10 | | | 30-Jun-09 | | | % | | | 31-Mar-10 | | | 30-Jun-10 | | | 30-Jun-09 | | | % | |
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PRE-TAX OPERATING INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income after provision for loan and lease losses | | $ | 34,552 | | | $ | 31,838 | | | | 8.5 | % | | $ | 25,424 | | | $ | 59,976 | | | $ | 59,303 | | | | 1.1 | % |
| Core non-interest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Wealth management revenues | | | 4,625 | | | | 3,285 | | | | 40.8 | % | | | 3,978 | | | | 8,603 | | | | 6,399 | | | | 34.4 | % |
| Banking service revenues | | | 2,797 | | | | 1,602 | | | | 74.6 | % | | | 1,647 | | | | 4,444 | | | | 2,995 | | | | 48.4 | % |
| Investment banking revenues | | | 34 | | | | 8 | | | | 100.0 | % | | | — | | | | 34 | | | | (4 | ) | | | 950.0 | % |
| Mortgage banking activities | | | 2,339 | | | | 2,806 | | | | -16.6 | % | | | 1,797 | | | | 4,136 | | | | 4,959 | | | | -16.6 | % |
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Total core non-interest income | | | 9,795 | | | | 7,701 | | | | 27.2 | % | | | 7,422 | | | | 17,217 | | | | 14,349 | | | | 20.0 | % |
| Less non interest expenses | | | (27,872 | ) | | | (22,214 | ) | | | -25.5 | % | | | (20,393 | ) | | | (48,265 | ) | | | (41,487 | ) | | | -16.3 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Total Pre-tax operating income | | $ | 16,475 | | | $ | 17,325 | | | | -4.9 | % | | $ | 12,453 | | | $ | 28,928 | | | $ | 32,165 | | | | -10.1 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
INCOME PER COMMON SHARE | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.38 | | | $ | 2.05 | | | | -81.5 | % | | $ | 0.42 | | | $ | 0.79 | | | $ | 3.02 | | | | -73.8 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Diluted | | $ | 0.38 | | | $ | 2.04 | | | | -81.5 | % | | $ | 0.41 | | | $ | 0.79 | | | $ | 3.02 | | | | -73.8 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
COMMON STOCK DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average common shares outstanding and equivalents | | | 33,053 | | | | 24,318 | | | | 35.9 | % | | | 25,932 | | | | 29,471 | | | | 24,280 | | | | 21.4 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash dividends per share of common stock | | $ | 0.04 | | | $ | 0.04 | | | | 0.0 | % | | $ | 0.04 | | | $ | 0.08 | | | $ | 0.08 | | | | 0.0 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Cash dividends declared on common shares | | $ | 1,322 | | | $ | 972 | | | | 36.0 | % | | $ | 1,322 | | | $ | 2,644 | | | $ | 1,944 | | | | 36.0 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Pay-out ratio | | | 10.53 | % | | | 1.96 | % | | | 437.1 | % | | | 9.76 | % | | | 10.13 | % | | | 2.65 | % | | | 282.3 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SELECTED FINANCIAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
PERFORMANCE RATIOS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.88 | % | | | 3.05 | % | | | -71.1 | % | | | 0.73 | % | | | 0.41 | % | | | 2.30 | % | | | -82.2 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Return on average common equity | | | 9.87 | % | | | 80.89 | % | | | -87.8 | % | | | 13.39 | % | | | 5.67 | % | | | 66.98 | % | | | -91.5 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Efficiency ratio | | | 57.53 | % | | | 51.43 | % | | | 11.9 | % | | | 55.33 | % | | | 56.58 | % | | | 51.54 | % | | | 9.8 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TAX EQUIVALENT SPREAD | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-earning assets | | | 4.84 | % | | | 5.30 | % | | | -8.7 | % | | | 4.50 | % | | | 4.40 | % | | | 5.36 | % | | | -17.9 | % |
| Tax equivalent adjustment | | | 1.58 | % | | | 1.75 | % | | | -9.7 | % | | | 1.49 | % | | | 1.44 | % | | | 1.77 | % | | | -18.6 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Interest-earning assets — tax equivalent | | | 6.42 | % | | | 7.05 | % | | | -8.9 | % | | | 5.99 | % | | | 5.84 | % | | | 7.13 | % | | | -18.1 | % |
| Interest-bearing liabilities | | | 2.58 | % | | | 3.13 | % | | | -17.6 | % | | | 2.88 | % | | | 2.72 | % | | | 3.38 | % | | | -19.5 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Tax equivalent interest rate spread | | | 3.84 | % | | | 3.92 | % | | | -2.0 | % | | | 3.11 | % | | | 3.12 | % | | | 3.75 | % | | | -16.8 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Tax equivalent interest rate margin | | | 3.87 | % | | | 4.04 | % | | | -4.2 | % | | | 3.37 | % | | | 3.41 | % | | | 3.90 | % | | | -12.6 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NORMAL SPREAD | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments | | | 4.24 | % | | | 5.07 | % | | | -16.4 | % | | | 4.13 | % | | | 4.18 | % | | | 5.17 | % | | | -19.1 | % |
| Loans | | | 6.28 | % | | | 6.27 | % | | | 0.2 | % | | | 6.17 | % | | | 4.93 | % | | | 6.18 | % | | | -20.2 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Interest-earning assets | | | 4.84 | % | | | 5.30 | % | | | -8.7 | % | | | 4.50 | % | | | 4.40 | % | | | 5.36 | % | | | -17.9 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 2.18 | % | | | 3.25 | % | | | -32.9 | % | | | 2.71 | % | | | 2.41 | % | | | 3.26 | % | | | -26.1 | % |
| Borrowings | | | 2.78 | % | | | 3.08 | % | | | -9.7 | % | | | 2.95 | % | | | 2.86 | % | | | 3.43 | % | | | -16.6 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities | | | 2.58 | % | | | 3.13 | % | | | -17.6 | % | | | 2.88 | % | | | 2.72 | % | | | 3.38 | % | | | -19.5 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest rate spread | | | 2.26 | % | | | 2.17 | % | | | 4.1 | % | | | 1.62 | % | | | 1.68 | % | | | 1.98 | % | | | -15.2 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Interest rate margin | | | 2.29 | % | | | 2.29 | % | | | 0.0 | % | | | 1.88 | % | | | 1.97 | % | | | 2.13 | % | | | -7.5 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AVERAGE BALANCES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments | | $ | 4,755,872 | | | $ | 4,998,921 | | | | -4.9 | % | | $ | 5,106,338 | | | $ | 4,930,137 | | | $ | 4,989,635 | | | | -1.2 | % |
| Loans | | | 1,979,216 | | | | 1,193,396 | | | | 65.8 | % | | | 1,140,111 | | | | 1,973,205 | | | | 1,198,537 | | | | 64.6 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Interest-earning assets | | $ | 6,735,088 | | | $ | 6,192,317 | | | | 8.8 | % | | $ | 6,246,449 | | | $ | 6,903,342 | | | $ | 6,188,172 | | | | 11.6 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | $ | 2,185,316 | | | $ | 1,743,799 | | | | 25.3 | % | | $ | 1,658,924 | | | $ | 1,923,574 | | | $ | 1,716,700 | | | | 12.1 | % |
| Borrowings | | | 4,448,576 | | | | 4,215,544 | | | | 5.5 | % | | | 4,018,051 | | | | 4,234,505 | | | | 4,187,626 | | | | 1.1 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities | | $ | 6,633,892 | | | $ | 5,959,343 | | | | 11.3 | % | | $ | 5,676,975 | | | $ | 6,158,079 | | | $ | 5,904,326 | | | | 4.3 | % |
| | | | | | | | | | | | | | | | | | | | | | |
ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)
| | | | | | | | | | | | | | | | | | | | | |
| | | AS OF | |
| (Dollars in thousands) | | 30-Jun-10 | | | 30-Jun-09 | | | % | | | 31-Mar-10 | | | 31-Dec-09 | |
| | | | | | | | | | | | | | | | | | | | | |
BALANCE SHEET | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | $ | 472,635 | | | $ | 307,062 | | | | 53.9 | % | | $ | 468,081 | | | $ | 277,123 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Investments: | | | | | | | | | | | | | | | | | | | | |
| Trading securities | | | 56 | | | | 904 | | | | -93.8 | % | | | 293 | | | | 523 | |
| Investment securities available-for-sale, at fair value, with amortized cost of $4,913,909 (June 30, 2009 - $5,064,700, March 31, 2010 - $4,673,956, December 31, 2009 - $5,044,017): | | | | | | | | | | | | | | | | | | | | |
| FNMA and FHLMC certificates | | | 3,647,734 | | | | 2,768,465 | | | | 31.8 | % | | | 3,277,247 | | | | 2,764,173 | |
| Obligations of US Government sponsored agencies | | | 603,735 | | | | 921,247 | | | | -34.5 | % | | | 595,501 | | | | 1,007,091 | |
| Non-agency collateralized mortgage obligations | | | 71,805 | | | | 476,192 | | | | -84.9 | % | | | 71,197 | | | | 446,037 | |
| CMO’s issued by US Government sponsored agencies | | | 204,920 | | | | 319,091 | | | | -35.8 | % | | | 248,713 | | | | 286,509 | |
| GNMA certificates | | | 303,637 | | | | 258,721 | | | | 17.4 | % | | | 317,559 | | | | 346,103 | |
| Structured credit investments | | | 41,606 | | | | 143,823 | | | | -71.1 | % | | | 40,090 | | | | 38,383 | |
| Puerto Rico Government and agency obligations | | | 68,091 | | | | 62,981 | | | | 8.1 | % | | | 66,512 | | | | 65,364 | |
| | | | | | | | | | | | | | | | |
| Total investment securities available-for-sale | | | 4,941,528 | | | | 4,950,520 | | | | -0.2 | % | | | 4,616,819 | | | | 4,953,659 | |
| | | | | | | | | | | | | | | | |
| Federal Home Loan Bank (FHLB) stock, at cost | | | 22,496 | | | | 19,937 | | | | 12.8 | % | | | 19,937 | | | | 19,937 | |
| Other investments | | | 150 | | | | 150 | | | | 0.0 | % | | | 150 | | | | 150 | |
| | | | | | | | | | | | | | | | |
Total investments | | | 4,964,230 | | | | 4,971,511 | | | | -0.1 | % | | | 4,637,199 | | | | 4,974,269 | |
| | | | | | | | | | | | | | | | |
| Securities sold but not yet delivered | | | 1,490 | | | | 360,764 | | | | -99.6 | % | | | 116,747 | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | | |
Loans non-covered by FDIC shared-loss agreements: | | | | | | | | | | | | | | | | | | | | |
Mortgage | | | 900,358 | | | | 946,439 | | | | -4.9 | % | | | 906,282 | | | | 918,935 | |
| Commercial | | | 210,978 | | | | 199,136 | | | | 5.9 | % | | | 203,739 | | | | 197,777 | |
| Leasing | | | 1,451 | | | | — | | | | 100.0 | % | | | — | | | | — | |
| Consumer | | | 28,390 | | | | 20,982 | | | | 35.3 | % | | | 22,954 | | | | 22,864 | |
| | | | | | | | | | | | | | | | |
Total loans receivable non-covered by FDIC shared-loss agreements, gross | | | 1,141,177 | | | | 1,166,557 | | | | -2.2 | % | | | 1,132,975 | | | | 1,139,576 | |
| Less: Deferred loan fees, net | | | (3,590 | ) | | | (3,651 | ) | | | 1.7 | % | | | (3,504 | ) | | | (3,496 | ) |
| | | | | | | | | | | | | | | | |
Total loans receivable non-covered by FDIC shared-loss agreements | | | 1,137,587 | | | | 1,162,906 | | | | -2.2 | % | | | 1,129,471 | | | | 1,136,080 | |
| Allowance for loan and lease losses | | | (28,002 | ) | | | (16,718 | ) | | | -67.5 | % | | | (25,977 | ) | | | (23,272 | ) |
| | | | | | | | | | | | | | | | |
Total loans receivable non-covered by FDIC shared-loss agreements, net | | | 1,109,585 | | | | 1,146,188 | | | | -3.2 | % | | | 1,103,494 | | | | 1,112,808 | |
| Mortgage loans held for sale | | | 27,519 | | | | 40,886 | | | | -32.7 | % | | | 27,785 | | | | 27,261 | |
| | | | | | | | | | | | | | | | |
Total loans non-covered by FDIC shared-loss agreements, net | | | 1,137,104 | | | | 1,187,074 | | | | -4.2 | % | | | 1,131,279 | | | | 1,140,069 | |
| | | | | | | | | | | | | | | | |
Loans covered by FDIC shared-loss agreements: | | | | | | | | | | | | | | | | | | | | |
| Loans secured by residential properties | | | 194,891 | | | | — | | | | 100.0 | % | | | — | | | | — | |
| Commercial and construction | | | 473,288 | | | | — | | | | 100.0 | % | | | — | | | | — | |
| Leasing | | | 120,003 | | | | — | | | | 100.0 | % | | | — | | | | — | |
| Consumer | | | 21,713 | | | | — | | | | 100.0 | % | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total loans covered by FDIC shared-loss agreements | | | 809,895 | | | | — | | | | 100.0 | % | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total loans, net | | | 1,946,999 | | | | 1,187,074 | | | | 64.0 | % | | | 1,131,279 | | | | 1,140,069 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| FDIC loss-share indemnification asset | | | 517,695 | | | | — | | | | 100.0 | % | | | — | | | | — | |
| Foreclosed real estate (covered by FDIC shared-loss agreements) | | | 19,495 | | | | — | | | | 100.0 | % | | | — | | | | — | |
| Foreclosed real estate (non-covered by FDIC shared-loss agreements) | | | 12,277 | | | | 9,174 | | | | 33.8 | % | | | 9,918 | | | | 9,347 | |
| Other repossessed assets (covered by FDIC shared-loss agreements) | | | 3,091 | | | | — | | | | 100.0 | % | | | — | | | | — | |
| Core deposit intangible | | | 1,399 | | | | — | | | | 100.0 | % | | | — | | | | — | |
| FDIC expense reimbursement receivable | | | 985 | | | | — | | | | 100.0 | % | | | — | | | | — | |
| Accrued interest receivable | | | 34,672 | | | | 37,785 | | | | -8.2 | % | | | 37,100 | | | | 33,656 | |
| Deferred tax asset, net | | | 19,517 | | | | 25,756 | | | | -24.2 | % | | | 32,186 | | | | 31,685 | |
| Prepaid FDIC Insurance | | | 19,565 | | | | — | | | | 100.0 | % | | | 20,996 | | | | 22,568 | |
| Premises and equipment, net | | | 18,113 | | | | 20,706 | | | | -12.5 | % | | | 18,571 | | | | 19,775 | |
| Other prepaid expenses | | | 7,312 | | | | 7,605 | | | | -3.9 | % | | | 3,496 | | | | 4,269 | |
| Derivative asset | | | — | | | | — | | | | 0.0 | % | | | 49 | | | | 8,511 | |
| Servicing asset | | | 9,285 | | | | 5,242 | | | | 77.1 | % | | | 7,569 | | | | 7,120 | |
| Mortgage tax credits | | | 1,954 | | | | 3,819 | | | | -48.8 | % | | | 3,819 | | | | 3,819 | |
| Debt issuance costs | | | 2,915 | | | | 4,146 | | | | -29.7 | % | | | 3,223 | | | | 3,531 | |
| Goodwill | | | 2,006 | | | | 2,006 | | | | 0.0 | % | | | 2,006 | | | | 2,006 | |
| Investment in statutory trust | | | 1,086 | | | | 1,086 | | | | 0.0 | % | | | 1,086 | | | | 1,086 | |
| Investment in equity indexed options | | | 4,433 | | | | 2,412 | | | | 83.8 | % | | | 7,875 | | | | 6,464 | |
| Accounts receivable and other assets | | | 17,390 | | | | 4,156 | | | | 318.4 | % | | | 7,319 | | | | 5,535 | |
| | | | | | | | | | | | | | | | |
Total assets | | $ | 8,078,544 | | | $ | 6,950,304 | | | | 16.2 | % | | $ | 6,508,519 | | | $ | 6,550,833 | |
| | | | | | | | | | | | | | | | |
ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)
| | | | | | | | | | | | | | | | | | | | | |
| | | AS OF | |
| (Dollars in thousands) | | 30-Jun-10 | | | 30-Jun-09 | | | % | | | 31-Mar-10 | | | 31-Dec-09 | |
| | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | |
| Non-interest bearing demand deposits | | $ | 168,647 | | | $ | 61,878 | | | | 172.5 | % | | $ | 90,925 | | | $ | 73,548 | |
| Interest-bearing demand, savings and money market deposits | | | 921,437 | | | | 683,124 | | | | 34.9 | % | | | 747,505 | | | | 706,750 | |
| Individual retirement accounts | | | 337,141 | | | | 298,925 | | | | 12.8 | % | | | 317,620 | | | | 312,843 | |
| Retail certificates of deposit | | | 419,655 | | | | 259,326 | | | | 61.8 | % | | | 330,641 | | | | 312,410 | |
| | | | | | | | | | | | | | | | |
| Total Retail Deposits | | | 1,846,880 | | | | 1,303,253 | | | | 41.7 | % | | | 1,486,691 | | | | 1,405,551 | |
| Institutional deposits | | | 547,993 | | | | 139,684 | | | | 292.3 | % | | | 184,763 | | | | 136,683 | |
| Brokered Deposits | | | 143,398 | | | | 409,509 | | | | -65.0 | % | | | 144,879 | | | | 203,267 | |
| | | | | | | | | | | | | | | | |
Total deposits | | | 2,538,271 | | | | 1,852,446 | | | | 37.0 | % | | | 1,816,333 | | | | 1,745,501 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Borrowings: | | | | | | | | | | | | | | | | | | | | |
| Federal funds purchased and other short term borrowings | | | 45,200 | | | | 27,748 | | | | 62.9 | % | | | 37,953 | | | | 49,179 | |
| Securities sold under agreements to repurchase | | | 3,557,087 | | | | 3,757,510 | | | | -5.3 | % | | | 3,557,149 | | | | 3,557,308 | |
| Advances from FHLB | | | 281,735 | | | | 281,718 | | | | 0.0 | % | | | 281,687 | | | | 281,753 | |
| FDIC-guaranteed term notes | | | 105,834 | | | | 105,834 | | | | 100.0 | % | | | 105,112 | | | | 105,834 | |
| Purchase money note issued to the FDIC | | | 711,076 | | | | — | | | | 100.0 | % | | | — | | | | — | |
| Subordinated capital notes | | | 36,083 | | | | 36,083 | | | | 100.0 | % | | | 36,083 | | | | 36,083 | |
| | | | | | | | | | | | | | | | |
Total borrowings | | | 4,737,015 | | | | 4,208,893 | | | | 12.5 | % | | | 4,017,984 | | | | 4,030,157 | |
| | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 7,275,286 | | | | 6,061,339 | | | | 20.0 | % | | | 5,834,317 | | | | 5,775,658 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| FDIC payable on non-acquired investment portfolio | | | 17,528 | | | | — | | | | 100.0 | % | | | — | | | | — | |
| Derivative liability | | | 3,374 | | | | — | | | | 100.0 | % | | | — | | | | — | |
| Securities purchased but not yet received | | | 533 | | | | 497,360 | | | | -99.9 | % | | | 171,813 | | | | 413,359 | |
| Accrued expenses and other liabilities | | | 35,781 | | | | 31,971 | | | | 11.9 | % | | | 38,216 | | | | 31,650 | |
| | | | | | | | | | | | | | | | |
| Total liabilities | | | 7,332,502 | | | | 6,590,670 | | | | 11.3 | % | | | 6,044,346 | | | | 6,220,667 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Preferred stock | | | 245,289 | | | | 68,000 | | | | 260.7 | % | | | 68,000 | | | | 68,000 | |
| Additional paid-in capital from beneficial conversion feature | | | 22,711 | | | | — | | | | 100.0 | % | | | — | | | | — | |
| Common stock | | | 34,481 | | | | 25,739 | | | | 34.0 | % | | | 34,479 | | | | 25,739 | |
| Additional paid-in capital | | | 288,749 | | | | 212,962 | | | | 35.6 | % | | | 299,542 | | | | 213,445 | |
| Legal surplus | | | 48,325 | | | | 48,771 | | | | -0.9 | % | | | 46,480 | | | | 45,279 | |
| Retained earnings | | | 98,245 | | | | 131,154 | | | | -25.1 | % | | | 85,796 | | | | 77,584 | |
| Treasury stock, at cost | | | (17,120 | ) | | | (17,152 | ) | | | 0.2 | % | | | (17,127 | ) | | | (17,142 | ) |
| Accumulated other comprehensive income (loss) | | | 25,362 | | | | (109,840 | ) | | | 123.1 | % | | | (52,996 | ) | | | (82,739 | ) |
| | | | | | | | | | | | | | | | |
| Total Stockholders’ equity | | | 746,042 | | | | 359,634 | | | | 107.4 | % | | | 464,174 | | | | 330,166 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and stockholders’ equity | | $ | 8,078,544 | | | $ | 6,950,304 | | | | 16.2 | % | | $ | 6,508,520 | | | $ | 6,550,833 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
SELECTED FINANCIAL DATA AT PERIOD-END | | | | | | | | | | | | | | | | | | | | |
| Common shares outstanding at end of period | | | 32,988 | | | | 24,231 | | | | 36.1 | % | | | 32,983 | | | | 24,235 | |
| | | | | | | | | | | | | | | | |
| Book value per common share | | $ | 14.49 | | | $ | 12.04 | | | | 20.4 | % | | $ | 12.01 | | | $ | 10.82 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Trust Assets Managed | | $ | 1,859,941 | | | $ | 1,677,344 | | | | 10.90 | % | | $ | 1,688,831 | | | $ | 1,818,498 | |
| Broker-Dealer Assets Gathered | | | 1,347,224 | | | | 1,169,775 | | | | 15.2 | % | | | 1,301,080 | | | | 1,269,285 | |
| | | | | | | | | | | | | | | | |
| Total Assets Managed | | | 3,207,165 | | | | 2,847,119 | | | | 12.6 | % | | | 2,989,911 | | | | 3,087,783 | |
| Assets owned | | | 8,078,544 | | | | 6,950,304 | | | | 16.2 | % | | | 6,508,519 | | | | 6,550,833 | |
| | | | | | | | | | | | | | | | |
| Total financial assets managed and owned | | $ | 11,285,709 | | | $ | 9,797,423 | | | | 15.2 | % | | $ | 9,498,430 | | | $ | 9,638,616 | |
| | | | | | | | | | | | | | | | |
ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)
| | | | | | | | | | | | | | | | | | | | | |
| | | AS OF |
| | | 30-Jun-10 | | 30-Jun-09 | | % | | 31-Mar-10 | | 31-Dec-09 |
CAPITAL RATIOS | | | | | | | | | | | | | | | | | | | | |
| Leverage capital ratio | | | 9.37 | % | | | 7.31 | % | | | 28.2 | % | | | 7.82 | % | | | 6.52 | % |
| Leverage capital ratio required | | | 4.00 | % | | | 4.00 | % | | | | | | | 4.00 | % | | | 4.00 | % |
| Actual tier 1 capital | | $ | 734,427 | | | $ | 477,913 | | | | 53.7 | % | | $ | 518,423 | | | $ | 414,702 | |
| Tier 1 capital required | | $ | 313,601 | | | $ | 261,547 | | | | 19.9 | % | | $ | 265,217 | | | $ | 254,323 | |
| Excess over regulatory requirement | | $ | 420,826 | | | $ | 216,366 | | | | 94.5 | % | | $ | 253,206 | | | $ | 160,379 | |
| | | | | | | | | | | | | | | | | | | | | |
| Tier 1 risk-based capital ratio | | | 24.17 | % | | | 14.62 | % | | | 65.3 | % | | | 23.55 | % | | | 18.79 | % |
| Tier 1 risk-based capital ratio required | | | 4.00 | % | | | 4.00 | % | | | | | | | 4.00 | % | | | 4.00 | % |
| Actual tier 1 risk-based capital | | $ | 734,427 | | | $ | 477,913 | | | | 53.7 | % | | $ | 518,423 | | | $ | 414,702 | |
| Tier 1 risk-based capital required | | $ | 121,566 | | | $ | 130,793 | | | | -7.1 | % | | $ | 88,069 | | | $ | 88,295 | |
| Excess over regulatory requirement | | $ | 612,861 | | | $ | 347,139 | | | | 76.5 | % | | $ | 430,354 | | | $ | 326,407 | |
| Risk-weighted assets | | $ | 3,039,153 | | | $ | 3,269,349 | | | | -7.0 | % | | $ | 2,201,715 | | | $ | 2,207,383 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total risk-based capital ratio | | | 25.09 | % | | | 15.13 | % | | | 65.8 | % | | | 24.73 | % | | | 19.84 | % |
| Total risk-based capital ratio required | | | 8.00 | % | | | 8.00 | % | | | | | | | 8.00 | % | | | 8.00 | % |
| Actual total risk-based capital | | $ | 762,429 | | | $ | 494,631 | | | | 54.1 | % | | $ | 544,400 | | | $ | 437,975 | |
| Total risk-based capital required | | $ | 243,132 | | | $ | 261,586 | | | | -7.1 | % | | $ | 176,137 | | | $ | 176,591 | |
| Excess over regulatory requirement | | $ | 519,297 | | | $ | 233,083 | | | | 122.8 | % | | $ | 368,263 | | | $ | 261,384 | |
| | | | | | | | | | | | | | | | | | | | | |
| Tangible common equity to total assets | | | 5.88 | % | | | 4.19 | % | | | 40.3 | % | | | 6.06 | % | | | 3.97 | % |
| Tangible common equity to total risk-weighted assets | | | 15.62 | % | | | 8.90 | % | | | 75.5 | % | | | 17.90 | % | | | 11.79 | % |
| Total equity to total assets | | | 9.23 | % | | | 5.20 | % | | | 77.5 | % | | | 7.13 | % | | | 5.04 | % |
| Total equity to risk-weighted assets | | | 24.55 | % | | | 11.05 | % | | | 122.2 | % | | | 21.08 | % | | | 14.96 | % |
ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | QUARTER ENDED | | | SIX-MONTH PERIOD ENDED | |
| (Dollars in thousands) | | 30-Jun-10 | | | 30-Jun-09 | | | % | | | 31-Mar-10 | | | 30-Jun-10 | | | 30-Jun-09 | | | % | |
Loan Production and Purchases Summary: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Mortgage loans production | | $ | 58,424 | | | $ | 60,276 | | | | -3.10 | % | | $ | 52,310 | | | $ | 110,734 | | | $ | 126,007 | | | | -12.10 | % |
| Mortgage loans purchased | | | 5,368 | | | | 3,651 | | | | 47.00 | % | | | 3,499 | | | | 8,867 | | | | 5,827 | | | | 52.20 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Total mortgage | | | 63,792 | | | | 63,927 | | | | -0.20 | % | | | 55,809 | | | | 119,601 | | | | 131,834 | | | | -9.30 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | 20,238 | | | | 7,519 | | | | 169.20 | % | | | 20,070 | | | | 40,308 | | | | 25,586 | | | | 57.50 | % |
| Leasing | | | 1,794 | | | | — | | | | 100.00 | % | | | — | | | | 1,794 | | | | — | | | | 100.00 | % |
| Consumer | | | 3,509 | | | | 2,075 | | | | 69.10 | % | | | 2,232 | | | | 5,741 | | | | 3,380 | | | | 69.90 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Total loan production and purchases | | $ | 89,333 | | | $ | 73,521 | | | | 21.50 | % | | $ | 78,111 | | | $ | 167,444 | | | $ | 160,800 | | | | 4.10 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| |
CREDIT DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net credit losses (recoveries): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Mortgage | | $ | 1,267 | | | $ | 767 | | | | 65.20 | % | | $ | 1,096 | | | $ | 2,363 | | | $ | 2,162 | | | | 9.30 | % |
| Commercial | | | 379 | | | | 1,099 | | | | -65.50 | % | | | 99 | | | | 478 | | | | 1,697 | | | | -71.80 | % |
| Consumer | | | 429 | | | | 213 | | | | 101.40 | % | | | 115 | | | | 544 | | | | 566 | | | | -3.90 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Total net credit losses | | $ | 2,075 | | | $ | 2,078 | | | | -0.10 | % | | $ | 1,310 | | | $ | 3,385 | | | $ | 4,424 | | | | -23.50 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Net credit losses to average loans outstanding | | | 0.42 | % | | | 0.70 | % | | | -40.10 | % | | | 0.46 | % | | | 0.34 | % | | | 0.74 | % | | | -53.60 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | AS OF | |
| | | 30-Jun-10 | | | 30-Jun-09 | | | % | | | 31-Mar-10 | | | 31-Dec-09 | |
| |
| Allowance for loan and lease losses | | $ | 28,002 | | | $ | 16,718 | | | | 67.5 | % | | $ | 25,977 | | | $ | 23,272 | |
| | | | | | | | | | | | | | | | |
| Allowance coverage ratios: | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan and lease losses to total loans (excluding loans covered by FDIC shared-loss agreements) | | | 2.40 | % | | | 1.39 | % | | | 73.1 | % | | | 2.25 | % | | | 2.00 | % |
| | | | | | | | | | | | | | | | |
| Allowance for loan and lease losses to non-performing loans | | | 25.45 | % | | | 18.60 | % | | | 36.8 | % | | | 23.80 | % | | | 22.30 | % |
| | | | | | | | | | | | | | | | |
| Allowance for loan and lease losses to non-residential non-performing loans | | | 185.63 | % | | | 216.69 | % | | | -14.3 | % | | | 161.10 | % | | | 144.25 | % |
| | | | | | | | | | | | | | | | |
| |
| Non-performing assets summary (excluding assets covered by FDIC shared-loss agreements): | | | | | | | | | | | | | | | | | | | | |
| Mortgage | | $ | 94,943 | | | $ | 82,162 | | | | 15.6 | % | | $ | 92,532 | | | $ | 88,238 | |
| Commercial | | | 14,220 | | | | 6,868 | | | | 107.0 | % | | | 16,156 | | | | 15,688 | |
| Consumer | | | 865 | | | | 847 | | | | 2.1 | % | | | 602 | | | | 445 | |
| | | | | | | | | | | | | | | | |
| Non-performing loans | | | 110,028 | | | | 89,877 | | | | 22.4 | % | | | 109,290 | | | | 104,371 | |
| Foreclosed properties | | | 12,277 | | | | 9,174 | | | | 33.8 | % | | | 9,918 | | | | 9,347 | |
| | | | | | | | | | | | | | | | |
| Non-performing assets | | $ | 122,305 | | | $ | 99,051 | | | | 23.5 | % | | $ | 119,208 | | | $ | 113,718 | |
| | | | | | | | | | | | | | | | |
| |
| Non-performing loans to total loans (excluding loans covered by FDIC shared-loss agreements) | | | 9.44 | % | | | 7.47 | % | | | 26.4 | % | | | 9.44 | % | | | 8.97 | % |
| | | | | | | | | | | | | | | | |
| Non-performing loans to total assets (excluding assets covered by FDIC shared-loss agreements) | | | 1.52 | % | | | 1.29 | % | | | 17.8 | % | | | 1.68 | % | | | 1.59 | % |
| | | | | | | | | | | | | | | | |
| Non-performing assets to total assets (excluding assets covered by FDIC shared-loss agreements) | | | 1.69 | % | | | 1.43 | % | | | 18.2 | % | | | 1.83 | % | | | 1.74 | % |
| | | | | | | | | | | | | | | | |
| Non-performing assets to total capital | | | 16.39 | % | | | 24.99 | % | | | -34.4 | % | | | 23.42 | % | | | 31.61 | % |
| | | | | | | | | | | | | | | | |
