OFG Bancorp (OFG) 8-K Oriental Financial Group Reports Third Quarter 2010 Results

	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 THIRD QUARTER 2010 RESULTS

• Pre-Tax Operating Income of $12.8 Million

• Third QuarterForm 10-Q Filed Today

SAN JUAN, Puerto Rico, November 4, 2010 — Oriental Financial Group Inc. (NYSE: OFG) today announced pre-tax operating income of $12.8 million for the third quarter ended September 30, 2010, and book value per common share of $14.01 and tangible common equity to total assets of 8.72% as of that date.

Oriental highlighted strong net interest income from loans and non-interest income from banking and wealth management revenues, as well as increased commercial loan and lease production, total assets managed and core retail deposits. In addition, the Company reported an initial step in deleveraging its balance sheet and reducing the size of its investment securities portfolio.

“Oriental is being positively transformed by the Eurobank acquisition into a bank that generates more recurring income from customer-based businesses versus income from investments,” said José Rafael Fernández, Vice Chairman of the Board, President and Chief Executive Officer. “We are generating a record percentage of interest income from loans compared to total income, which mitigates reduced income from lower investment yields in today’s markets and the third quarter’s strategic reduction of the investment securities portfolio. In addition, we are beginning to generate noticeably higher volume of commercial loans and leases, while non-interest revenues are continuing to grow in volume and as a proportion of total income. Going forward our focus is on continuing to increase revenues through commercial loan production and our banking and wealth management activities, while reducing our cost of funds and completing the Eurobank cost-savings and integration program.”

Net non-operating charges of approximately $44.3 million resulted in a loss available to common shareholders of $30.5 million, or ($0.67) per share. Details can be found below under “Non-Operating Items.”

Highlights

• Greater proportion of interest income from loans.Interest income of $81.2 million increased 1.7% compared to the second quarter as 16.8% growth from loans more than offset a 7.1% decline from investment securities due to lower yields. Interest income from loans represented a record 42% of total interest income compared to 23% in the year ago quarter, and loans to assets increased to 25% at September 30, 2010 compared to 18% a year ago. Interest income for the third quarter included $16.7 million from former Eurobank loans.

• Deleveraged balance sheet.On August 16, 2010, Oriental paid off at maturity a 4.39%, $100 million repurchase agreement, and on September 27, 2010, repaid the $595 million outstanding principal balance of a 0.88% purchase money promissory note to the FDIC, which was issued as part of the Eurobank transaction. Total investments declined to 59% of assets at September 30, 2010 compared to 71% a year ago, and borrowings declined to 61% of interest-bearing liabilities compared to 68%. Approximately 96% of Oriental’s investment securities 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.

• Strong growth in commercial production.While total loan production and purchases increased 15.7%, to $103.4 million, from the second quarter, production of commercial loans and leases combined increased 40.5% to $31.0 million. Year-to-date, commercial loans and lease production is up 102.3% to $73.1 million, representing 27% of total loan production and purchases, versus 16% for the year ago period. As part of its commitment to grow its lending activities, Oriental has almost doubled its commercial lending staff in 2010.

• Continued growth of banking and wealth management revenues.These revenues totaled $11.4 million, up 14.4% from the second quarter. Bank service revenues increased 13.5%, primarily reflecting a full quarter of business and fees generated by the former Eurobank branches, versus two months in the second quarter. Mortgage banking activities increased 46.1% due in part to higher production, reflecting expanded market share. Year-to-date total banking and wealth management revenues are up 33.0%, to $28.8 million, representing 24% of total net revenues versus 20% a year ago.

• Increased growth of wealth management assets.Total assets managed of $3.5 billion at September 30, 2010 grew 10.6% from June 30, 2010, with 14.0% growth of trust assets and 5.8% growth of broker-dealer assets. Growth is benefitting from improved market values as well as increased asset gathering from Oriental’s strong capital position in the local market.

• Continued growth of core retail deposits.Total retail deposits increased $63.9 million, to $1.9 billion from the end of the second quarter, as Oriental began to benefit from its larger and more strategically located network of 30 branches. Core retail deposits, which have grown sequentially nine quarters in a row, increased to 29% of interest-bearing liabilities at September 30, 2010 compared to 24% a year ago.

Other Factors

• Net interest marginof 2.22% declined 8 basis points from the second quarter. Higher yield from three months of former Eurobank loans and lower cost of funds were able to offset most of the decline in yield from investments.

• Non interest expensesof $32.7 million were $4.9 million higher than in the second quarter. The third quarter included $10.2 million related to the integration of Eurobank versus $5.4 million in the second quarter. In late September, Oriental closed nine former Eurobank branches and consolidated two Oriental branches into the former Eurobank branch network. Oriental’s network now consists of 30 branches, most of which are concentrated in the San Juan metropolitan area, a key target market. In late October, most former Eurobank IT functions transferred to Oriental’s platform. These actions are expected to reduce Eurobank-related expenses approximately $1.5 million in the fourth quarter, and along with other steps, achieve 30-35% Eurobank cost savings by the start of 2011.

• Net credit losses(excluding loans covered under shared-loss agreements with the FDIC) of $2.5 million increased $387 thousand from the second quarter and total $5.8 million year to date, in line with Oriental’s previously stated expectations of $8 million to $9 million in 2010. Non-performing loans (NPLs) increased marginally from the second quarter. Oriental’s NPLs generally reflect the economic environment in Puerto Rico. Oriental does not expect NPLs to result in significantly higher losses as most are well-collateralized residential mortgage loans with adequate loan-to-value ratios.

Capital

• Total stockholders’ equity of $717.1 million declined $21.6 million from June 30, 2010, reflecting the change in retained earnings and reduction in accumulated other comprehensive income (OCI).

• Oriental continues to maintain regulatory capital ratios well above the requirements for a well-capitalized institution. At September 30, 2010, the Leverage Capital Ratio was 8.99%, Tier-1 Risk-Based Capital Ratio was 24.00%, and Total Risk-Based Capital Ratio was 25.02%. In addition, Tangible Common Equity to risk-weighted assets was 21.86%.

Non-Operating Items

• The previously disclosed deemed dividend of $22.7 million related to the conversion of Oriental’s Mandatorily Convertible Non-Cumulative Non-Voting Perpetual Preferred Stock, Series C, which raised a net $189 million in connection with the Eurobank acquisition, which was converted into 13.32 million shares of common stock on July 8, 2010. The deemed dividend did not affect total stockholders’ equity or book value per common share, but did reduce income per common share for the quarter and nine months ended September 30, 2010. The $22.7 million represents the intrinsic value between the conversion rate of $15.015 and the common stock closing price of $16.62 on April 30, 2010, the date the Series C Preferred Stock was issued and sold.

• Gain of $14.0 million on the sale of securities, as Oriental took further advantage of the low interest rate environment to lock in profits.

• Charges of $14.7 million in other-than-temporary impairment on the BALTA private label CMO. As a result of continual refinements to Oriental’s impairment methodology, loss assumptions now consider the macroeconomic effect of the recent foreclosure moratorium in some states and other economic uncertainties.

• Loss of $22.6 million on derivative activities. This reflected realized losses of $17.3 million due to the termination of forward-settle swaps with a notional amount of $1.25 billion. These terminations allowed Oriental to enter into new forward-settle swap contracts for the same notional amount, while effectively reducing the interest rate of the pay-fixed side of such deals from an average rate of 2.45% to an average rate of 1.83%. The balance reflected an unrealized valuation loss of $4.9 million on the new swaps. These forward-settle swaps will enable Oriental to fix, at 1.83%, the price of $1.25 billion in repurchase agreement funding ($900 million up for renewal in December 2011 and $350 million in May 2012) that currently have a blended cost of 4.40%.

• Accretion of $1.8 million of the FDIC loss share indemnification asset related to the former Eurobank loan portfolios. 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.

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 (defined as net interest income, after provision for loan and lease losses, plus banking and wealth management revenues, less non-interest expenses, and 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 Friday, November 5, 2010 at 2:00 PM Eastern & Puerto Rico Time. The call will be accessible live via a webcast on Oriental’s Investor Relations website at www.orientalfg.com. A webcast replay will be available shortly thereafter. Access the webcast link in advance to download any necessary software.

10-Q

Simultaneous with the issuance of this news release, Oriental is filing its SEC Form 10-Q for the quarter ended September 30, 2010, accessible at www.sec.gov or www.orientalfg.com.

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 46^th 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, through 30 financial centers. Investor information about Oriental can be found at www.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.

# # #

ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)

	QUARTER ENDED												NINE-MONTH PERIOD ENDED
SUMMARY OF OPERATIONS (Dollars in thousands):	30-Sep-10			30-Sep-09			%			30-Jun-10			30-Sep-10			30-Sep-09			%
Interest Income:
Loans	$	34,347		$	18,248			88.2	%	$	29,399		$	81,382		$	55,329			47.1	%
Mortgage-backed securities		40,429			48,750			-17.1	%		41,519			125,542			151,179			-17.0	%
Investment securities		6,367			11,412			-44.2	%		8,782			24,213			37,567			-35.5	%
Short term investments		78			140			-44.3	%		143			263			511			-48.5	%
Total interest income		81,221			78,550			3.4	%		79,843			231,400			244,586			-5.4	%
Interest Expense:
Deposits		12,680			13,990			-9.4	%		11,951			35,874			41,962			-14.5	%
Securities sold under agreements to repurchase		25,128			27,209			-7.6	%		25,486			75,900			90,937			-16.5	%
Advances from FHLB and other borrowings		3,082			3,106			-0.8	%		3,053			9,147			9,277			-1.4	%
FDIC-guaranteed term notes		1,021			1,021			0.0	%		1,021			3,063			2,154			42.2	%
Note payable to the FDIC		823			—			100.0	%		1,064			1,887			—			100.0	%
Subordinated capital notes		327			333			-1.8	%		305			930			1,158			-19.7	%
Total interest expense		43,061			45,659			-5.7	%		42,880			126,801			145,488			-12.8	%
Net interest income		38,160			32,891			16.0	%		36,963			104,599			99,098			5.6	%
Provision for loan and lease losses		4,100			4,400			-6.8	%		4,100			12,214			11,250			8.6	%
Net interest income after provision for loan and lease losses		34,060			28,491			19.5	%		32,863			92,385			87,848			5.2	%
Non-Interest Income (Loss):
Wealth management revenues		4,554			3,764			21.0	%		4,625			13,157			10,163			29.5	%
Banking service revenues		3,414			1,424			139.7	%		3,007			8,030			4,330			85.5	%
Mortgage banking activities		3,418			2,232			53.1	%		2,339			7,555			7,191			5.1	%
Investment banking revenues (losses)		59			—			100.0	%		34			93			(4	)		-2425.0	%
Total banking and wealth management revenues		11,445			7,420			54.2	%		10,005			28,835			21,680			33.0	%
Total loss on other-than-temporarily impaired securities		(14,739	)		(44,737	)		-67.1	%		(1,796	)		(39,674	)		(107,331	)		-63.0	%
Portion of loss on securities recognized in other comprehensive income		—			36,478			-100.0	%		—			22,508			94,656			-76.2	%
Other-than-temporary impairment on securities		(14,739	)		(8,259	)		78.5	%		(1,796	)		(17,166	)		(12,675	)		35.4	%
Net gain (loss) on:
Sales of securities		13,954			35,528			-60.7	%		11,833			37,807			56,388			-33.0	%
Derivatives		(22,580	)		(64	)		35181.3	%		(26,615	)		(59,832	)		19,778			-402.5	%
Trading securities		4			(505	)		-100.8	%		1			2			12,427			-100.0	%
Bargain purchase from FDIC-assisted acquisition		—			—			0.0	%		9,944			9,940			—			100.0	%
Fair value adjustment on FDIC equity appreciation instrument		—			—			0.0	%		909			909			—			100.0	%
Accretion of FDIC loss-share indemnification asset		1,756			—			100.0	%		1,557			3,314			—			100.0	%
Foreclosed real estate		(140	)		(278	)		-49.6	%		(27	)		(283	)		(576	)		-50.9	%
Early extinguishment of repurchase agreement		—			(17,551	)		-100.0	%		—			—			(17,551	)		-100.0	%
Other		(8	)		31			-125.8	%		42			61			94			-35.1	%
Total non-interest income (loss), net		(10,308	)		16,322			-163.2	%		5,853			3,587			79,565			-95.5	%
Non-Interest Expenses:
Compensation and employee benefits		11,732			7,882			48.8	%		10,427			30,440			23,626			28.8	%
Occupancy and equipment		5,620			3,747			50.0	%		4,601			13,815			10,994			25.7	%
Professional and service fees		5,480			2,459			122.9	%		3,920			11,552			7,461			54.8	%
Insurance		1,651			1,273			29.7	%		1,733			5,218			5,560			-6.2	%
Taxes, other than payroll and income taxes		1,611			834			93.2	%		1,291			3,759			2,129			76.6	%
Advertising and business promotion		1,275			1,097			16.2	%		1,361			3,339			3,329			0.3	%
Electronic banking charges		1,322			471			180.7	%		1,113			3,112			1,607			93.7	%
Communication		826			382			116.2	%		740			1,905			1,163			63.8	%
Loan servicing expenses		443			397			11.6	%		452			1,321			1,167			13.2	%
Clearing and wrap fees expenses		579			293			97.6	%		342			1,217			860			41.5	%
Foreclosure and repossession expenses		545			204			167.2	%		270			1,117			650			71.8	%
Directors and investor relations		396			348			13.8	%		388			1,098			1,029			6.7	%
Printing, postage, stationery and supplies		299			194			54.1	%		292			795			665			19.5	%
Training and travel		167			194			-13.9	%		243			639			444			43.9	%
Leases expenses		86			—			100.0	%		36			121			—			100.0	%
Other		673			710			-5.2	%		639			1,502			1,287			16.7	%
Total non-interest expenses		32,705			20,485			59.7	%		27,848			80,950			61,971			30.6	%
Income (loss) before income taxes		(8,953	)		24,328			-136.8	%		10,868			15,022			105,442			-85.8	%
Income tax expense (benefit)		(2,358	)		3,001			-178.6	%		925			(262	)		8,452			-103.1	%
Net income (loss)		(6,595	)		21,327			-130.9	%		9,943			15,284			96,990			-84.2	%
Less: Dividends on preferred stock		(1,200	)		(1,201	)		-0.1	%		(1,733	)		(4,134	)		(3,602	)		14.8	%
Less: Deemed dividend on preferred stock beneficial conversion feature		(22,711	)		—			-100.0	%		—			(22,711	)		—			-100.0	%
Less: Allocation of unidistributed earnings for participating preferred shares		—			—			0.0	%		(3,104	)		—			—			0.0	%
Income available (loss) to common shareholders	$	(30,506	)	$	20,126			-251.6	%	$	5,106		$	(11,561	)	$	93,388			-112.4	%

Page 1 of 6

ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)

	QUARTER ENDED												NINE-MONTH PERIOD ENDED
(Dollars in thousands, except per share data)	30-Sep-10			30-Sep-09			%			30-Jun-10			30-Sep-10			30-Sep-09			%
PRE-TAX OPERATING INCOME
Net interest income after provision for loan losses	$	34,060		$	28,491			19.5	%	$	32,863		$	92,385		$	87,848			5.2	%
Core non-interest income:
Wealth management revenues		4,554			3,764			21.0	%		4,625			13,157			10,163			29.5	%
Banking service revenues		3,414			1,424			139.7	%		3,007			8,030			4,330			85.5	%
Mortgage banking activities		3,418			2,232			53.1	%		2,339			7,555			7,191			5.1	%
Investment banking revenues		59			—			100.0	%		34			93			(4	)		100.0	%
Total core non-interest income		11,445			7,420			54.2	%		10,005			28,835			21,680			33.0	%
Less non interest expenses		(32,705	)		(20,485	)		59.7	%		(27,848	)		(80,950	)		(61,971	)		-30.6	%
Total Pre-tax operating income	$	12,800		$	15,426			-17.0	%	$	15,020		$	40,270		$	47,557			-15.3	%
INCOME (LOSS) PER COMMON SHARE
Basic	$	(0.67	)	$	0.83			-181.2	%	$	0.15		$	(0.33	)	$	3.85			-108.6	%
Diluted	$	(0.67	)	$	0.83			-181.2	%	$	0.15		$	(0.33	)	$	3.84			-108.6	%
COMMON STOCK DATA
Average common shares outstanding and equivalents		45,482			24,368			86.6	%		33,053			34,928			24,301			43.7	%
Cash dividends per share of common stock	$	0.04		$	0.04			-0.2	%	$	0.04		$	0.12		$	0.12			-2.6	%
Cash dividends declared on common shares	$	1,855		$	972			90.8	%	$	1,322		$	4,500		$	2,916			54.3	%
Pay-out ratio		-5.97	%		4.86	%		-222.9	%		25.93	%		-35.40	%		3.13	%		-1230.3	%
SELECTED FINANCIAL DATA
PERFORMANCE RATIOS:
Return on average assets		-0.33	%		1.32	%		-125.1	%		0.53	%		0.28	%		1.98	%		-85.8	%
Return on average common equity		-19.28	%		28.12	%		-168.6	%		4.91	%		-3.40	%		51.61	%		-106.6	%
Equity-to-assets ratio		9.69	%		6.00	%		61.6	%		9.15	%		9.69	%		6.00	%		61.6	%
Efficiency ratio		65.93	%		50.82	%		29.7	%		59.29	%		60.67	%		51.31	%		18.2	%
Expense ratio		1.24	%		0.86	%		43.5	%		1.11	%		1.09	%		0.88	%		24.0	%
TAX EQUIVALENT SPREAD
Interest-earning assets		4.73	%		5.19	%		-8.9	%		4.97	%		4.82	%		5.32	%		-9.4	%
Tax equivalent adjustment		1.53	%		1.79	%		-14.5	%		1.62	%		1.57	%		1.75	%		-10.3	%
Interest-earning assets — tax equivalent		6.26	%		6.98	%		-10.3	%		6.59	%		6.39	%		7.07	%		-9.6	%
Interest-bearing liabilities		2.42	%		3.12	%		-22.4	%		2.54	%		2.58	%		3.30	%		-21.8	%
Tax equivalent interest rate spread		3.84	%		3.86	%		-0.5	%		4.05	%		3.81	%		3.77	%		1.1	%
Tax equivalent interest rate margin		3.76	%		3.96	%		-5.1	%		3.92	%		3.75	%		3.91	%		-4.1	%
NORMAL SPREAD
Investments		3.78	%		4.94	%		-23.5	%		4.25	%		4.15	%		5.10	%		-18.6	%
Loans		7.20	%		6.24	%		15.4	%		6.99	%		6.86	%		6.22	%		10.3	%
Interest-earning assets		4.73	%		5.19	%		-8.9	%		4.97	%		4.82	%		5.32	%		-9.4	%
Deposits		2.03	%		3.10	%		-34.5	%		2.08	%		2.19	%		3.21	%		-31.8	%
Borrowings		2.63	%		3.13	%		-16.0	%		2.78	%		2.77	%		3.33	%		-16.8	%
Interest-bearing liabilities		2.42	%		3.12	%		-22.4	%		2.54	%		2.58	%		3.30	%		-21.8	%
Interest rate spread		2.31	%		2.07	%		11.6	%		2.43	%		2.24	%		2.02	%		10.9	%
Interest rate margin		2.22	%		2.17	%		2.3	%		2.30	%		2.18	%		2.15	%		1.4	%
AVERAGE BALANCES
Investments	$	4,960,528		$	4,886,104			1.5	%	$	4,749,435		$	4,820,361		$	4,949,814			-2.6	%
Loans		1,908,443			1,169,558			63.2	%		1,682,823			1,581,955			1,185,919			33.4	%
Interest-earning assets	$	6,868,971		$	6,055,662			13.4	%	$	6,432,258		$	6,402,316		$	6,135,733			4.3	%
Deposits	$	2,495,077		$	1,803,455			38.3	%	$	2,298,265		$	2,184,877		$	1,742,744			25.4	%
Borrowings		4,622,535			4,052,469			14.1	%		4,454,955			4,376,646			4,144,278			5.6	%
Interest-bearing liabilities	$	7,117,612		$	5,855,924			21.5	%	$	6,753,220		$	6,561,523		$	5,887,022			11.5	%

Page 2 of 6

ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)

	AS OF
(Dollars in thousands)	30-Sep-10			30-Sep-09			%			30-Jun-10			31-Dec-09
BALANCE SHEET
Cash and cash equivalents	$	142,936		$	170,443			-16.1	%	$	472,635		$	277,123
Investments:
Trading securities		102			39			161.5	%		56			523
Investment securities available-for-sale, at fair value, with amortized cost of $4,304,055 (September 30, 2009 - $4,604,048, June 30, 2010 - $4,913,939, December 31, 2009 - $5,044,017):
FNMA and FHLMC certificates		3,509,126			2,601,515			34.9	%		3,647,734			2,764,172
Obligations of US Government sponsored agencies		301,550			695,912			-56.7	%		603,735			1,007,091
Non-agency collateralized mortgage obligations		63,246			457,216			-86.2	%		71,805			446,037
CMO’s issued by US Government sponsored agencies		194,427			302,502			-35.7	%		204,920			286,509
GNMA certificates		137,890			229,760			-40.0	%		303,637			346,103
Structured credit investments		42,443			141,259			-70.0	%		41,606			38,383
Puerto Rico Government and agency obligations		68,406			64,462			6.1	%		68,091			65,364
Total investment securities available-for-sale		4,317,088			4,492,626			-3.9	%		4,941,528			4,953,659
Federal Home Loan Bank (FHLB) stock, at cost		22,496			19,937			12.8	%		22,496			19,937
Other investments		150			150			0.0	%		150			150
Total investments		4,339,836			4,512,752			-3.8	%		4,964,230			4,974,269
Securities sold but not yet delivered		317,209			417,280			-24.0	%		1,490			—
Loans:
Loans not covered under shared-loss agreements with the FDIC:
Mortgage		887,251			932,696			-4.9	%		900,358			918,935
Commercial		217,280			194,718			11.6	%		210,978			197,777
Leasing		5,926			—			100.0	%		1,451			—
Consumer		30,757			21,446			43.4	%		28,390			22,864
Total loans receivable not covered under shared-loss agreeements with the FDIC, gross		1,141,214			1,148,860			-0.7	%		1,141,177			1,139,576
Less: Deferred loan fees, net		(4,236	)		(3,305	)		28.2	%		(3,590	)		(3,496	)
Total loans receivable not covered under shared-loss agreeements with the FDIC		1,136,978			1,145,555			-0.7	%		1,137,587			1,136,080
Allowance for loan and lease losses		(29,640	)		(20,176	)		46.9	%		(28,002	)		(23,272	)
Loans receivable, net		1,107,338			1,125,379			-1.6	%		1,109,585			1,112,808
Mortgage loans held for sale		31,432			26,213			19.9	%		27,519			27,261
Total loans not covered under shared-loss agreeements with the FDIC, net		1,138,770			1,151,592			-1.1	%		1,137,104			1,140,069
Loans covered under shared-loss agreements with the FDIC:
Construction development, secured by residential properties		18,165			—			100.0	%		19,048			—
Residential mortgages		175,125			—			100.0	%		178,866			—
Commercial and other construction		414,661			—			100.0	%		424,634			—
Leasing		95,207			—			100.0	%		114,707			—
Consumer		19,700			—			100.0	%		21,533			—
Loans covered under shared-loss agreements with the FDIC		722,858			—			100.0	%		758,788			—
Total loans, net		1,861,628			1,151,592			61.7	%		1,895,892			1,140,069
FDIC shared-loss indemnification asset		562,364			—			100.0	%		560,608			—
Foreclosed real estate (covered under shared-loss agreements with the FDIC)		19,322			—			100.0	%		19,495			—
Foreclosed real estate (not covered under shared-loss agreements with the FDIC)		13,765			8,319			65.5	%		12,277			9,347
Other repossessed assets (covered under shared-loss agreements with the FDIC)		2,748			—			100.0	%		3,091			—
Core deposit intangible		1,363			—			100.0	%		1,399			—
FDIC expense reimbursement receivable		—			—			0.0	%		985			—
Accrued interest receivable		30,644			39,970			-23.3	%		34,633			33,656
Deferred tax asset, net		30,650			26,590			15.3	%		22,060			31,685
Prepaid FDIC Insurance		18,235			—			100.0	%		19,565			22,568
Premises and equipment, net		17,125			20,202			-15.2	%		18,113			19,775
Other prepaid expenses		7,134			6,720			6.2	%		7,312			4,269
Derivative asset		—			—			0.0	%		—			8,511
Servicing asset		9,647			6,135			57.2	%		9,285			7,120
Mortgage tax credits		1,954			3,819			-48.8	%		1,954			3,819
Debt issuance costs		2,607			3,839			-32.1	%		2,915			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		7,106			5,983			18.8	%		4,433			6,464
Accounts receivable and other assets		13,692			4,310			217.7	%		17,659			5,535
Total assets	$	7,403,057		$	6,381,046			16.0	%	$	8,073,123		$	6,550,833

Page 3 of 6

ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)

	AS OF
(Dollars in thousands)	30-Sep-10			30-Sep-09			%			30-Jun-10			31-Dec-09
Deposits:
Non-interest bearing demand deposits	$	168,590		$	73,097			130.1	%	$	169,202		$	73,548
Interest-bearing savings and demand deposits		953,922			769,119			24.1	%		921,034			706,750
Individual retirement accounts		351,743			307,717			14.3	%		337,141			312,843
Retail certificates of deposit		436,706			253,644			72.2	%		419,655			312,410
Total Retail Deposits		1,910,961			1,403,577			36.1	%		1,847,032			1,405,551
Institutional deposits		406,266			160,243			153.5	%		547,993			136,683
Brokered Deposits		278,048			354,085			-21.5	%		143,398			203,267
Total deposits		2,595,275			1,917,905			35.3	%		2,538,423			1,745,501
Borrowings:
Short-term borrowings		29,959			35,328			-15.2	%		45,201			49,179
Securities sold under agreements to repurchase		3,541,520			3,557,086			-0.4	%		3,557,087			3,557,308
Advances from FHLB		281,753			281,741			0.0	%		281,735			281,753
FDIC-guaranteed term notes		105,112			105,112			0.0	%		105,834			105,834
Note payable to the FDIC		—			—			0.0	%		711,076			—
Subordinated capital notes		36,083			36,083			0.0	%		36,083			36,083
Total borrowings		3,994,427			4,015,350			-0.5	%		4,737,016			4,030,157
Total interest-bearing liabilities		6,589,702			5,933,255			11.1	%		7,275,439			5,775,658
FDIC net settlement payable		41,601			—			100.0	%		17,528			—
Derivative liability		8,289			690			1101.3	%		3,374			—
Securities purchased but not yet received		—			30,945			-100.0	%		533			413,359
Accrued expenses and other liabilities		46,405			33,587			38.2	%		37,613			31,650
Total liabilities		6,685,997			5,998,477			11.5	%		7,334,487			6,220,667
Preferred stock		68,000			68,000			0.0	%		245,289			68,000
Additional paid-in capital from beneficial conversion feature		—			—			0.0	%		22,711			—
Common stock		47,808			25,739			85.7	%		34,481			25,739
Additional paid-in capital		498,486			213,264			133.7	%		288,749			213,445
Legal surplus		46,958			52,659			-10.8	%		47,585			45,279
Retained earnings		59,845			146,421			-59.1	%		91,579			77,584
Treasury stock, at cost		(17,116	)		(17,147	)		-0.2	%		(17,120	)		(17,142	)
Accumulated other comprehensive income (loss), net		13,079			(106,367	)		-112.3	%		25,362			(82,739	)
Total stockholders’ equity		717,060			382,569			87.4	%		738,636			330,166
Total liabilities and stockholders’ equity	$	7,403,057		$	6,381,046			16.0	%	$	8,073,123		$	6,550,833
SELECTED FINANCIAL DATA AT PERIOD-END
Common shares outstanding at end of period		46,317			24,232			91	%		32,988			24,235
Book value per common share	$	14.01		$	12.98			8	%	$	14.27		$	10.82
Trust assets managed	$	2,120,833		$	1,759,464			20.5	%	$	1,859,941		$	1,818,498
Broker-dealer assets gathered		1,425,445			1,235,341			15.4	%		1,347,224			1,269,284
Total assets managed	$	3,546,278		$	2,994,805			18.4	%	$	3,207,165		$	3,087,782

Page 4 of 6

ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)

	AS OF
	30-Sep-10			30-Sep-09			%			30-Jun-10			31-Dec-09
CAPITAL RATIOS
Leverage capital ratio		8.99	%		7.69	%		16.9	%		9.26	%		6.52	%
Leverage capital ratio required		4.00	%		4.00	%					4.00	%		4.00	%
Actual tier I capital	$	708,869		$	496,541			42.8	%	$	734,427		$	414,702
Tier I capital required	$	315,235		$	258,445			22.0	%	$	317,404		$	254,323
Excess over regulatory requirement	$	393,634		$	238,096			65.3	%	$	417,023		$	160,379
Tier I risk-based capital ratio		24.00	%		15.81	%		51.8	%		24.17	%		18.79	%
Tier I risk-based capital ratio required		4.00	%		4.00	%					4.00	%		4.00	%
Actual tier I risk-based capital	$	708,869		$	496,541			42.8	%	$	734,427		$	414,702
Tier I risk-based capital required	$	118,134		$	125,657			-6.0	%	$	121,553		$	88,295
Excess over regulatory requirement	$	590,735		$	370,884			59.3	%	$	612,874		$	326,407
Total risk-based capital ratio		25.02	%		16.45	%		52.1	%		25.10	%		19.84	%
Total risk-based capital ratio required		8.00	%		8.00	%					8.00	%		8.00	%
Actual total risk-based capital	$	739,062		$	516,717			43.0	%	$	762,674		$	437,975
Total risk-based capital required	$	236,269		$	251,314			-6.0	%	$	243,105		$	176,591
Excess over regulatory requirement	$	502,793		$	265,403			89.4	%	$	519,569		$	261,384
Tangible common equity to total assets		8.72	%		4.90	%		78.0	%		5.88	%		3.97	%
Tangible common equity to total risk-weighted assets		21.86	%		9.95	%		119.7	%		15.62	%		11.79	%
Total equity to total assets		9.69	%		6.00	%		61.5	%		9.23	%		5.04	%
Total equity to risk-weighted assets		24.28	%		12.18	%		99.3	%		24.55	%		14.96	%

Page 5 of 6

ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)

	QUARTER ENDED												NINE-MONTH PERIOD ENDED
(Dollars in thousands)	30-Sep-10			30-Sep-09			%			30-Jun-10			30-Sep-10			30-Sep-09			%
Loan Production and Purchases Summary:
Mortgage loans production	$	58,958		$	54,507			8.2	%	$	58,424		$	169,692		$	180,514			-6.0	%
Mortgage loans purchased		9,933			1,717			478.5	%		5,368			18,800			7,544			149.2	%
Total mortgage		68,891			56,224			22.5	%		63,792			188,492			188,058			0.2	%
Commercial		26,354			10,518			150.6	%		20,238			66,662			36,104			84.6	%
Leasing		4,597			—			100.0	%		1,794			6,391			—			100.0	%
Consumer		3,514			2,426			44.8	%		3,509			9,255			5,806			59.4	%
Total loan production and purchases	$	103,356		$	69,168			49.4	%	$	89,333		$	270,800		$	229,968			17.8	%
CREDIT DATA
Net credit losses, excluding loans covered under shared-loss agreements with the FDIC:
Mortgage	$	432		$	544			-20.6	%	$	1,267		$	2,795		$	2,706			3.3	%
Commercial		1,710			70			2342.9	%		379			2,188			1,767			23.8	%
Consumer		320			328			-2.4	%		429			863			894			-3.5	%
Total net credit losses	$	2,462		$	942			161.4	%	$	2,075		$	5,846		$	5,367			8.9	%
Net credit losses to average loans outstanding		0.85	%		0.32	%		165.0	%		0.72	%		0.67	%		0.60	%		12.3	%

	AS OF
	30-Sep-10			30-Sep-09			%			30-Jun-10			31-Dec-09
Allowance for loan and lease losses	$	29,640		$	20,176			46.9	%	$	28,002		$	23,272
Allowance coverage ratios:
Allowance for loan and lease losses to total loans (excluding loans covered under shared-loss agreements with the FDIC)		2.54	%		1.72	%		47.3	%		2.40	%		2.00	%
Allowance for loan and lease losses to non-performing loans		26.76	%		21.67	%		23.5	%		25.45	%		22.30	%
Non-performing assets summary (excluding assets covered under shared-loss agreements with the FDIC):
Mortgage	$	96,286		$	83,551			15.2	%	$	94,943		$	88,238
Commercial		13,862			8,792			57.7	%		14,220			15,688
Consumer		604			751			-19.6	%		865			445
Non-performing loans		110,752			93,094			19.0	%		110,028			104,371
Foreclosed properties		13,765			8,319			65.5	%		12,277			9,347
Non-performing assets	$	124,517		$	101,413			22.8	%	$	122,305		$	113,718
Non-performing loans to total loans (excluding loans covered under shared-loss agreements with the FDIC)		9.48	%		7.94	%		19.40	%		9.44	%		8.97	%
Non-performing loans to total assets (excluding assets covered under shared-loss agreements with the FDIC)		1.66	%		1.46	%		13.70	%		1.51	%		1.59	%
Non-performing assets to total assets (excluding assets covered under shared-loss agreements with the FDIC)		1.87	%		1.59	%		17.61	%		1.68	%		1.74	%
Non-performing assets to total capital		17.36	%		26.51	%		-34.52	%		16.56	%		34.44	%

Page 6 of 6