EXHIBIT 99
Puerto Rico Contact:
Juan C. Cruz,
Oriental Financial Group
(787) 771-6820
Juan C. Cruz,
Oriental Financial Group
(787) 771-6820
U.S. Contact:
Steven Anreder and Gary Fishman,
Anreder & Company
(212) 532-3232
Steven Anreder and Gary Fishman,
Anreder & Company
(212) 532-3232
ORIENTAL FINANCIAL GROUP REPORTS RESULTS FOR THE
FIRST QUARTER ENDED MARCH 31, 2007
SAN JUAN, Puerto Rico, May 3, 2007 — Oriental Financial Group Inc. (NYSE: OFG) today announced results for the first quarter ended March 31, 2007. The Group reported income available to common shareholders of $9.8 million, or $0.40 per common share (diluted), as compared to income of $6.9 million, or $0.28 per share in the March 2006 quarter and a loss of $19.3 million, or ($0.78) per share, in the December 2006 quarter.
Net interest income for the March 2007 quarter significantly improved as compared to the last three quarters due to the initial favorable effects of the Group’s previously announced repositioning of its available for sale (AFS) securities portfolio and the restructuring of its repurchase agreements (repos) portfolio, as well as a more stable interest rate environment. On a sequential quarter basis, net interest margin improved 46 basis points, to 1.18%, the first significant quarter to quarter increase since the quarter ended December 31, 2003.
The Group previously announced a net gain of approximately $11 million from the July 2006 unwinding of interest rate swaps that had been used to hedge rising interest costs of short-term repos. This gain was included in other comprehensive income, and was being recognized into earnings as a reduction of interest expense on remaining short-term borrowings. The recent repo restructuring, however, significantly reduced the Group’s short-term borrowings during the March 2007 quarter, eliminating the forecasted transactions the swaps were intended to hedge. As a result, Oriental was required to recognize the remaining balance of $8.2 million (equal to $0.33 per diluted share) of the gain as non-interest income in the quarter ended March 31, 2007.
Commentary and Outlook
José Rafael Fernández, President and CEO, commented: “During the first quarter, most of the actions we took to reposition the AFS portfolio and its funding in December 2006 did not take effect until January 2007, and the actions we took to further restructure such funding in February 2007 did not take effect until March 2007. Thus, we anticipate the full benefits of these changes should be reflected in the current June 2007 quarter. Financial services continued to perform well due to the ongoing success of our targeted marketing strategies, and new products added in brokerage, insurance and trust. Because of the local economic environment, we took a more conservative stance with regard to loan
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production, especially ensuring our high credit standards, and sold fewer mortgages, retaining most of our origination in our portfolio. Our credit quality and capital position both remained strong during the quarter. Based on the strategic program we have implemented, we believe that we are well positioned to continue to improve our results during 2007 and 2008.”
As previously reported, in December 2006, the Group sold approximately $865 million of securities, replacing them with approximately $860 million of higher yielding triple-A securities, and restructured $900 million in short-term repos to lower interest costs. In December 2006, Oriental exercised the call provision of approximately $36 million of subordinated capital notes, the extinguishment of which is expected to generate interest expense savings of approximately $3.0 million a year. In February 2007, Oriental restructured another $1 billion of short-term repos at an interest cost savings of 95 basis points, and purchased approximately $900 million in U.S. agency securities for the AFS portfolio, funded to produce a favorable net spread of about 150 basis points, locked in for two years on $750 million and one year on the balance. This transaction was executed in March. At March 31, 2007, Oriental had approximately $514 million of short-term repos as compared to approximately $1.6 billion at December 31, 2006.
Analysis of First Quarter 2007 Results of Operations
Interest income for the 2007 first quarter increased 9.8%, to $61.5 million, when compared to the first quarter of 2006. This reflected a 34.4% increase from loans, due to both higher balances and interest rates, and a 0.2% decline from investments. On a sequential quarter basis, interest income increased 5.0%, reflecting a 2.0% increase from loans and a 6.8% increase from securities. Interest expense increased 18.3% from the year ago quarter, to $48.2 million. This reflected both higher costs of funds, due to Federal Reserve Open Market Committee rate hikes over the past year, and higher balances of deposits and borrowings. On a sequential quarter basis, interest expense declined 2.2%, mainly due to the repositioning of the repo portfolio. As a result, while net interest income declined 12.8% from the year ago quarter, to $13.3 million, on a sequential quarter basis, it increased 43.4%.
Non-interest revenue from financial and banking services, and mortgage banking activities, excluding investment banking fees, increased 15.6%, to $6.8 million, compared to $5.9 million in the year ago quarter. Financial service revenues increased 48.9%, to $4.8 million, compared to $3.3 million in the year ago quarter, more than offsetting a 13.9% decline to $1.9 million in banking service revenues, and a minimal contribution from mortgage banking activities, due to the decision to reduce production and sales in the secondary market.
Net gain on the sale of securities, derivatives and other non-interest income totaled $8.5 million for the March 2007 quarter. This compares to $1.4 million for the March 2006 quarter and a loss of $16.9 million for the December 2006 quarter, which included losses on the sale of securities related to the AFS repositioning and of impaired securities, and the early extinguishment of subordinated capital notes.
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Non-interest expenses in the first quarter of 2007 amounted to $15.8 million, a 6.3% increase compared to the year-ago first quarter, but a 16.3% decline from the sequential quarter.
March 31, 2007 Balance Sheet Analysis
Total loans, net, at March 31, 2007 amounted to $1.23 billion, an increase of 31.1% from a year ago and 1.8% from December 31, 2006. The year over year increase reflects increases of 37.5%, or $254.6 million, in mortgage loans, and 6.8%, or $15.0 million, in commercial loans. Loan production and purchases in the March 2007 quarter declined 22.0%, to $72.3 million, compared to the March 2006 quarter, and declined 29.8% compared to the December 2006 quarter.
Deposits totaled $1.33 billion at March 31, 2007, representing increases of 5.0% compared to a year ago and 8.5% compared to December 31, 2006, due to the continued success of the Oriental Money savings account. Year over year, savings balances increased 184.9%, or $199.5 million, more than offsetting a $115.7 decline in certificates of deposit and a $19.7 million decrease in demand deposits.
Credit Quality
Oriental’s provision for loan losses was $1.1 million in the March 2007 quarter (102.9% of net credit losses) compared to $1.5 million in the December 2006 quarter and $1.1 million in the March 2006 quarter. The provision is based on an analysis by the Group of the credit quality and composition of its loan portfolio to maintain the allowance at an adequate level.
At March 31, 2007, non-performing loans were $43.9 million (3.53% of total loans), compared to $38.3 million (3.14%) at December 31, 2006 and $29.9 million (3.16%) at March 31, 2006. The current level reflects an increase of $5.7 million in non-performing residential mortgage loans from the December 2006 quarter due to the overall growth in the residential loan portfolio and the current economic situation in Puerto Rico. This increase is not expected to translate into significantly higher losses as these loans are generally well collateralized with adequate loan to value ratios.
Net credit losses in the March 2007 quarter remained relatively low at $1.0 million (0.34% of average loans outstanding) compared to $1.1 million (0.36%) during the December 2006 quarter and $0.6 million (0.25%) during the March 2006 quarter.
Capital
Stockholders’ equity at March 31, 2007 was $338.3 million, or $11.04 per share, compared to $343.6 million, or $11.19 per share, a year ago, and $336.4 million, or $10.98 per share, at December 31, 2006. The Group’s capital ratios remain significantly above regulatory capital requirements. At March 31, 2007, the Leverage Capital Ratio was 8.21%, Tier I Risk-Based Capital Ratio was 19.15%, and Total Risk-Based Capital Ratio was 19.56%.
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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 42nd year in business, Oriental provides a full range of mortgage, commercial and consumer banking services through 25 financial centers in Puerto Rico, as well as financial planning, trust, insurance, investment brokerage and investment banking services. 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 the Group’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 the Group’s filings with the Securities and Exchange Commission. These or other factors could cause actual results to differ materially from forward-looking statements. The Group also disclaims any obligations to update information contained in this news release as a result of developments occurring after the date of issuance.
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ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE:OFG)
Financial Summary
(NYSE:OFG)
QUARTER ENDED | ||||||||||||||||
31-Mar-07 | 31-Mar-06 | % | 31-Dec-06 | |||||||||||||
Summary of Operations (in thousands, except per share data): | ||||||||||||||||
Interest Income: | ||||||||||||||||
Loans | $ | 21,849 | $ | 16,253 | 34.4 | % | $ | 21,431 | ||||||||
Investment securities | 39,651 | 39,739 | -0.2 | % | 37,129 | �� | ||||||||||
Total interest income | 61,500 | 55,992 | 9.8 | % | 58,560 | |||||||||||
Interest Expense: | ||||||||||||||||
Deposits | 12,370 | 10,498 | 17.8 | % | 13,126 | |||||||||||
Securities sold under agreements to repurchase | 32,789 | 26,363 | 24.4 | % | 32,188 | |||||||||||
Other borrowed funds | 3,075 | 3,919 | -21.5 | % | 3,993 | |||||||||||
Total interest expense | 48,234 | 40,780 | 18.3 | % | 49,307 | |||||||||||
Net interest income | 13,266 | 15,212 | -12.8 | % | 9,253 | |||||||||||
Provision for loan losses | (1,075 | ) | (1,101 | ) | -2.4 | % | (1,470 | ) | ||||||||
Net interest income after provision for loan losses | 12,191 | 14,111 | -13.6 | % | 7,783 | |||||||||||
Non-Interest Income: | ||||||||||||||||
Financial service revenues | 4,843 | 3,252 | 48.9 | % | 4,725 | |||||||||||
Banking service revenues | 1,874 | 2,176 | -13.9 | % | 2,294 | |||||||||||
Investment banking revenue | — | 1,709 | -100.0 | % | (452 | ) | ||||||||||
Mortgage banking activities | 62 | 436 | -85.8 | % | 1,178 | |||||||||||
Total banking and financial service revenues | 6,779 | 7,573 | -10.5 | % | 7,745 | |||||||||||
Net gain (loss) on sale of securities | 358 | 47 | 661.7 | % | (20,106 | ) | ||||||||||
Net gain on derivatives | 8,418 | 882 | 854.4 | % | 3,931 | |||||||||||
Loss on early extinguishment of subordinated capital notes | — | — | 0.0 | % | (915 | ) | ||||||||||
Other | (304 | ) | 451 | -167.4 | % | 224 | ||||||||||
Total non-interest income | 15,251 | 8,953 | 70.3 | % | (9,121 | ) | ||||||||||
Non-Interest Expenses: | ||||||||||||||||
Compensation and employees’ benefits | 6,745 | 6,173 | 9.3 | % | 6,589 | |||||||||||
Occupancy and equipment | 2,994 | 2,889 | 3.6 | % | 3,024 | |||||||||||
Advertising and business promotion | 793 | 937 | -15.4 | % | 1,502 | |||||||||||
Directors and investors relations | 531 | 144 | 268.8 | % | 1,729 | |||||||||||
Professional and service fees | 1,538 | 1,624 | -5.3 | % | 1,792 | |||||||||||
Communication | 338 | 447 | -24.4 | % | 337 | |||||||||||
Loan servicing expenses | 523 | 455 | 14.9 | % | 527 | |||||||||||
Taxes, other than payroll and income taxes | 448 | 600 | -25.3 | % | 792 | |||||||||||
Electronic banking charges | 458 | 468 | -2.1 | % | 463 | |||||||||||
Printing, postage, stationery and supplies | 202 | 186 | 8.6 | % | 192 | |||||||||||
Insurance | 216 | 213 | 1.4 | % | 209 | |||||||||||
Other | 1,041 | 747 | 39.4 | % | 1,745 | |||||||||||
Total non-interest expenses | 15,827 | 14,883 | 6.3 | % | 18,901 | |||||||||||
Income (loss) before income taxes | 11,615 | 8,181 | 42.0 | % | (20,239 | ) | ||||||||||
Income tax expense (benefit) | 624 | 131 | 376.3 | % | (2,187 | ) | ||||||||||
Net income (loss) | 10,991 | 8,050 | 36.5 | % | (18,052 | ) | ||||||||||
Less: Dividends on preferred stock | (1,200 | ) | (1,200 | ) | 0.0 | % | (1,201 | ) | ||||||||
Income available (loss) to common shareholders | $ | 9,791 | $ | 6,850 | 42.9 | % | $ | (19,253 | ) | |||||||
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QUARTER ENDED | ||||||||||||||||
31-Mar-07 | 31-Mar-06 | % | 31-Dec-06 | |||||||||||||
EARNINGS PER SHARE | ||||||||||||||||
Earning (loss) per common share (basic) | $ | 0.40 | $ | 0.28 | 42.9 | % | $ | (0.78 | ) | |||||||
Earning (loss) per common share (diluted) | $ | 0.40 | $ | 0.28 | 42.9 | % | $ | (0.78 | ) | |||||||
Dividends declared per common share | $ | 0.14 | $ | 0.14 | 0.0 | % | $ | 0.14 | ||||||||
Average shares outstanding | 24,472 | 24,613 | -0.6 | % | 24,455 | |||||||||||
Average potential common shares-options | 93 | 137 | -32.1 | % | 82 | |||||||||||
Total average shares outstanding and equivalents | 24,565 | 24,750 | -0.7 | % | 24,537 | |||||||||||
Common shares outstanding at end of period | 24,483 | 24,620 | -0.6 | % | 24,453 | |||||||||||
Book value per common share | $ | 11.04 | $ | 11.19 | -1.3 | % | $ | 10.98 | ||||||||
SELECTED FINANCIAL DATA | ||||||||||||||||
PERFORMANCE RATIOS: | ||||||||||||||||
Return on average assets | 1.01 | % | 0.70 | % | 44.3 | % | -1.62 | % | ||||||||
Return on average common equity | 14.54 | % | 9.40 | % | 54.7 | % | -27.60 | % | ||||||||
Efficiency ratio | 78.95 | % | 65.32 | % | 20.9 | % | 117.52 | % | ||||||||
Leverage capital ratio | 8.21 | % | 9.67 | % | -15.1 | % | 8.42 | % | ||||||||
Tier 1 risk-based capital | 19.15 | % | 33.88 | % | -43.5 | % | 21.57 | % | ||||||||
Total risk-based capital | 19.56 | % | 34.44 | % | -43.2 | % | 22.04 | % | ||||||||
TAX EQUIVALENT SPREAD | ||||||||||||||||
Interest-earning assets | 5.46 | % | 5.04 | % | 8.3 | % | 5.25 | % | ||||||||
Tax equivalent adjustment | 1.30 | % | 1.18 | % | 10.2 | % | 1.24 | % | ||||||||
Interest-earning assets — tax equivalent | 6.76 | % | 6.22 | % | 8.7 | % | 6.49 | % | ||||||||
Interest-bearing liabilities | 4.57 | % | 3.96 | % | 15.4 | % | 4.85 | % | ||||||||
Tax equivalent interest rate spread | 2.19 | % | 2.26 | % | -3.1 | % | 1.64 | % | ||||||||
Tax equivalent interest rate margin | 2.48 | % | 2.55 | % | -2.7 | % | 1.96 | % | ||||||||
NORMAL SPREAD | ||||||||||||||||
Investments | 4.85 | % | 4.52 | % | 7.3 | % | 4.54 | % | ||||||||
Loans | 7.07 | % | 7.05 | % | 0.3 | % | 7.10 | % | ||||||||
Interest-earning assets | 5.46 | % | 5.04 | % | 8.3 | % | 5.25 | % | ||||||||
Deposits | 4.08 | % | 3.39 | % | 20.4 | % | 4.18 | % | ||||||||
Borrowings | 4.77 | % | 4.20 | % | 13.6 | % | 5.15 | % | ||||||||
Interest-bearing liabilities | 4.57 | % | 3.96 | % | 15.4 | % | 4.85 | % | ||||||||
Interest rate spread | 0.89 | % | 1.08 | % | -17.6 | % | 0.40 | % | ||||||||
Interest rate margin | 1.18 | % | 1.37 | % | -13.9 | % | 0.72 | % | ||||||||
AVERAGE BALANCE | ||||||||||||||||
Investments | 3,269,937 | 3,519,685 | -7.1 | % | 3,146,868 | |||||||||||
Loans | 1,235,569 | 921,755 | 34.0 | % | 1,207,075 | |||||||||||
Interest-earning assets | 4,505,506 | 4,441,440 | 1.4 | % | 4,353,943 | |||||||||||
Deposits | 1,212,907 | 1,239,016 | -2.1 | % | 1,256,371 | |||||||||||
Borrowings | 3,006,251 | 2,881,429 | 4.3 | % | 2,808,397 | |||||||||||
Interest-bearing liabilities | 4,219,158 | 4,120,445 | 2.4 | % | 4,064,768 | |||||||||||
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BALANCE SHEET | As of | |||||||||||||||
31-Mar-07 | 31-Mar-06 | % | 31-Dec-06 | |||||||||||||
Cash and cash equivalents | ||||||||||||||||
Cash and due from banks | $ | 14,286 | $ | 13,227 | 8.0 | % | $ | 15,341 | ||||||||
Money market investments | 50,127 | 10,288 | 387.2 | % | 18,729 | |||||||||||
Total Cash and cash equivalents | 64,413 | 23,515 | 173.9 | % | 34,070 | |||||||||||
Interest-earning assets: | ||||||||||||||||
Investments: | ||||||||||||||||
Short term investments | 5,000 | 60,000 | -91.7 | % | 5,000 | |||||||||||
Trading securities | 461 | 320 | 44.1 | % | 243 | |||||||||||
Investment securities available-for-sale, at fair value with amortized cost of $1,828,459 (December 31, 2006 - $984,060, March 31, 2006 - $1,123,556) | 1,825,942 | 1,088,613 | 67.7 | % | 974,960 | |||||||||||
Investment securities held-to-maturity, at amortized cost with fair value of $1,880,479 (December 31, 2006 - $1,931,720, March 31, 2006 - $2,244,432) | 1,903,707 | 2,306,410 | -17.5 | % | 1,967,477 | |||||||||||
Other investments | 31,578 | — | 100.0 | % | 30,949 | |||||||||||
Federal Home Loan Bank (FHLB) stock, at cost | 14,197 | 19,403 | -26.8 | % | 13,607 | |||||||||||
Total investments | 3,780,885 | 3,474,746 | 8.8 | % | 2,992,236 | |||||||||||
Loans: | ||||||||||||||||
Mortgage loans | 932,989 | 678,421 | 37.5 | % | 935,432 | |||||||||||
Commercial loans, mainly secured by real estate | 236,739 | 221,693 | 6.8 | % | 241,702 | |||||||||||
Consumer loans | 33,419 | 38,089 | -12.3 | % | 35,772 | |||||||||||
Loans receivable, gross | 1,203,147 | 938,203 | 28.2 | % | 1,212,906 | |||||||||||
Less: Deferred loan fees, net | (3,411 | ) | (2,801 | ) | 21.8 | % | (3,123 | ) | ||||||||
Loans receivable | 1,199,736 | 935,402 | 28.3 | % | 1,209,783 | |||||||||||
Allowance for loan losses | (8,046 | ) | (7,160 | ) | 12.4 | % | (8,016 | ) | ||||||||
Loans receivable, net | 1,191,690 | 928,242 | 28.4 | % | 1,201,767 | |||||||||||
Mortgage loans held for sale | 42,204 | 12,998 | 224.7 | % | 10,603 | |||||||||||
Total loans, net | 1,233,894 | 941,240 | 31.1 | % | 1,212,370 | |||||||||||
Total interest-earning assets | 5,014,779 | 4,415,986 | 13.6 | % | 4,204,606 | |||||||||||
Securities and loans sold but not yet delivered | 74,289 | 1,192 | 6132.3 | % | 6,430 | |||||||||||
Accrued interest receivable | 30,482 | 29,539 | 3.2 | % | 27,940 | |||||||||||
Premises and equipment, net | 19,853 | 15,307 | 29.7 | % | 20,153 | |||||||||||
Deferred tax asset, net | 13,562 | 13,845 | -2.0 | % | 14,150 | |||||||||||
Foreclosed real estate | 5,320 | 4,312 | 23.4 | % | 4,864 | |||||||||||
Other assets | 69,355 | 60,402 | 14.8 | % | 61,477 | |||||||||||
Total assets | $ | 5,292,053 | $ | 4,564,098 | 15.9 | % | $ | 4,373,690 | ||||||||
Interest-bearing liabilities: | ||||||||||||||||
Deposits: | ||||||||||||||||
Demand deposits | 124,610 | 144,274 | -13.6 | % | 132,434 | |||||||||||
Savings accounts | 307,319 | 107,869 | 184.9 | % | 266,184 | |||||||||||
Certificates of deposit – wholesale | 383,682 | 441,205 | -13.0 | % | 323,771 | |||||||||||
Certificates of deposit – retail | 521,974 | 580,193 | -10.0 | % | 510,599 | |||||||||||
Total deposits | 1,337,585 | 1,273,541 | 5.0 | % | 1,232,988 | |||||||||||
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As of | ||||||||||||||||
31-Mar-07 | 31-Mar-06 | % | 31-Dec-06 | |||||||||||||
Borrowings: | ||||||||||||||||
Federal funds purchased and other short term borrowings | 3,139 | 13,811 | -77.3 | % | 13,568 | |||||||||||
Securities sold under agreements to repurchase | 3,321,105 | 2,513,986 | 32.1 | % | 2,535,923 | |||||||||||
Advances from FHLB | 195,000 | 300,000 | -35.0 | % | 181,900 | |||||||||||
Subordinated capital notes | 36,083 | 72,166 | -50.0 | % | 36,083 | |||||||||||
Term notes | — | 15,000 | -100.0 | % | 15,000 | |||||||||||
Total borrowings | 3,555,327 | 2,914,963 | 22.0 | % | 2,782,474 | |||||||||||
Total interest-bearing liabilities | 4,892,912 | 4,188,504 | 16.8 | % | 4,015,462 | |||||||||||
Securities and loans purchased but not yet received | 40,067 | 1,233 | 3149.6 | % | — | |||||||||||
Accrued expenses and other liabilities | 20,752 | 30,751 | -32.5 | % | 21,802 | |||||||||||
Total liabilities | 4,953,731 | 4,220,488 | 17.4 | % | 4,037,264 | |||||||||||
Preferred Equity | 68,000 | 68,000 | 0.0 | % | 68,000 | |||||||||||
Common Equity: | ||||||||||||||||
Common stock | 25,461 | 25,365 | 0.4 | % | 25,431 | |||||||||||
Additional paid-in capital | 209,226 | 208,581 | 0.3 | % | 209,033 | |||||||||||
Legal surplus | 37,424 | 36,780 | 1.8 | % | 36,245 | |||||||||||
Retained earnings | 31,956 | 54,825 | -41.7 | % | 26,772 | |||||||||||
Treasury stock, at cost | (12,848 | ) | (10,240 | ) | 25.5 | % | (12,956 | ) | ||||||||
Accumulated other comprehensive loss | (20,897 | ) | (39,701 | ) | -47.4 | % | (16,099 | ) | ||||||||
Total common equity | 270,322 | 275,610 | -1.9 | % | 268,426 | |||||||||||
Stockholders’ equity | 338,322 | 343,610 | -1.5 | % | 336,426 | |||||||||||
Total liabilities and stockholders’ equity | $ | 5,292,053 | $ | 4,564,098 | 15.9 | % | $ | 4,373,690 | ||||||||
Number of financial centers | 25 | 24 | 25 | |||||||||||||
SELECTED FINANCIAL DATA AT PERIOD-END | ||||||||||||||||
Trust Assets Managed | $ | 1,850,912 | $ | 1,877,958 | -1.4 | % | $ | 1,848,596 | ||||||||
Broker-Dealer Assets Gathered | 1,101,542 | 1,170,639 | -5.9 | % | 1,143,668 | |||||||||||
Total Assets Managed | 2,952,454 | 3,048,597 | -3.2 | % | 2,992,264 | |||||||||||
Assets owned | 5,292,053 | 4,564,098 | 15.9 | % | 4,373,690 | |||||||||||
Total financial assets managed and owned | $ | 8,244,507 | $ | 7,612,695 | 8.3 | % | $ | 7,365,954 | ||||||||
QUARTER ENDED | ||||||||||||||||
31-Mar-07 | 31-Mar-06 | % | 31-Dec-06 | |||||||||||||
CREDIT DATA | ||||||||||||||||
Net credit losses: | ||||||||||||||||
Mortgage | $ | 546 | $ | 199 | 174.1 | % | $ | 502 | ||||||||
Commercial | (10 | ) | 18 | -156.6 | % | 40 | ||||||||||
Consumer | 509 | 354 | 43.8 | % | 557 | |||||||||||
Total net credit losses | $ | 1,045 | $ | 571 | 83.0 | % | $ | 1,099 | ||||||||
Net credit losses to average loans outstanding | 0.34 | % | 0.25 | % | 36.0 | % | 0.36 | % | ||||||||
Allowance for loan losses | $ | 8,046 | $ | 7,160 | 12.4 | % | $ | 8,016 | ||||||||
Allowance coverage ratios: | ||||||||||||||||
Allowance for loan losses to total loans | 0.65 | % | 0.75 | % | -13.3 | % | 0.66 | % | ||||||||
Allowance for loan losses to non-performing loans | 18.34 | % | 23.91 | % | -23.3 | % | 20.93 | % | ||||||||
Allowance for loan losses to non-residential non-performing loans | 212.86 | % | 140.17 | % | 51.9 | % | 205.86 | % | ||||||||
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QUARTER ENDED | ||||||||||||||||
31-Mar-07 | 31-Mar-06 | % | 31-Dec-06 | |||||||||||||
Non-performing assets summary: | ||||||||||||||||
Mortgage | $ | 40,091 | $ | 24,833 | 61.4 | % | $ | 34,404 | ||||||||
Commercial, mainly real estate | 3,115 | 4,824 | -35.4 | % | 3,167 | |||||||||||
Consumer | 665 | 284 | 134.0 | % | 727 | |||||||||||
Non-performing loans | 43,871 | 29,941 | 46.5 | % | 38,298 | |||||||||||
Foreclosed properties | 5,320 | 4,312 | 23.4 | % | 4,864 | |||||||||||
Non-performing assets | $ | 49,191 | $ | 34,253 | 43.6 | % | $ | 43,162 | ||||||||
Non-performing loans to total loans | 3.53 | % | 3.16 | % | 11.7 | % | 3.14 | % | ||||||||
Non-performing loans to total assets | 0.83 | % | 0.66 | % | 25.8 | % | 0.88 | % | ||||||||
Non-performing assets to total assets | 0.93 | % | 0.75 | % | 24.0 | % | 0.99 | % | ||||||||
Non-performing assets to total capital | 14.54 | % | 9.97 | % | 45.8 | % | 12.83 | % | ||||||||
Loan Production and Purchases Summary: | ||||||||||||||||
Mortgage loans production | $ | 50,937 | $ | 63,197 | -19.4 | % | $ | 75,041 | ||||||||
Mortgage loans purchases | 4,572 | 7,655 | -40.3 | % | 10,099 | |||||||||||
Total mortgage | 55,509 | 70,851 | -21.7 | % | 85,140 | |||||||||||
Commercial | 15,139 | 15,546 | -2.6 | % | 15,558 | |||||||||||
Consumer | 1,633 | 6,262 | -73.9 | % | 2,302 | |||||||||||
Total loan production and purchases | $ | 72,281 | $ | 92,659 | -22.0 | % | $ | 103,000 | ||||||||
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