OFG Bancorp (OFG) 8-K Results of Operations and Financial Condition

Exhibit 99

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 RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2008

SAN JUAN, Puerto Rico, May 6, 2008 — Oriental Financial Group Inc. (NYSE: OFG) today announced results for the first quarter ended March 31, 2008.

The Group reported income available to common shareholders of $15.6 million, an increase of 59.8% from the year ago quarter. This represented a return on average assets of 1.06% and a return on average common equity of 20.63%, compared with 1.01% and 14.54%, respectively, in the first quarter of 2007. Earnings per common share (fully diluted) of $0.64 were 60.0% greater than the $0.40 reported in the year ago quarter.

José Rafael Fernández, President and Chief Executive Officer, commented, “The strategies we have in place enabled us to continue to perform well despite the turbulent credit market and the recession in Puerto Rico. Highlights of the quarter include a reduction in net credit losses, continued improvement in loan production, ongoing expansion of the net interest margin, and a significant increase in customer deposits.”

Commentary and Outlook

Lending

“One of our key strategies, which has proven successful, was adopting conservative lending policies starting several years ago in light of weakening economic conditions in Puerto Rico,” Mr. Fernández explained.

As a result of these measures, in the first quarter, net credit losses declined 47.8% from the preceding quarter and 31.1% from a year ago. Non-performing loans increased by only $3.0 million, the smallest increase during the last six quarters.

“We are now seeing pockets of opportunity in lending,” Mr. Fernández noted. “Commercial loan production has been above $15 million for each of the last two quarters, following two previous quarters of low production. Mortgage originations of $44.6 million in the first quarter increased sequentially for the second consecutive quarter and exceeded $40 million for the first time in a year.”

The Banking-Financial Services Franchise

A second core strategy has been growing Oriental’s franchise with the objective of integrating the delivery of banking and financial services to mid and high net-worth clients, and building recurring non-interest income.

“This is a long term program that might not always result in year over year or sequential quarter increases, but that is producing positive results and value over time,” Mr. Fernández commented.

These marketing activities produced $107.0 million in retail deposits in the first quarter of 2008, for a record $1.2 billion in such deposits, representing an increase of 22.0% year over year and 10.1% quarter over quarter. “During this year’s first quarter we added $9.1 million in demand deposits, $38.8 million in retail certificates of deposit, and $65.9 million in savings accounts, despite the lowering of interest rates,” he explained.

Investment Securities Portfolio

A third major strategy involved repositioning Oriental’s investment portfolio in late 2006 and its related funding in early 2007 to improve net interest margin. As a direct consequence, along with asset growth, net interest income for the first quarter of 2008 totaled $24.9 million, an increase of 87.8% compared with a year ago, and the net interest margin expanded to 1.68% versus 1.18% in the year ago quarter.

“This marks the fifth consecutive quarter in which the net interest margin has improved,” Mr. Fernández said. “We remain attentive to market opportunities to further improve and lengthen net interest margin.”

Looking ahead, Mr. Fernández said that Oriental is well positioned to continue to benefit from these strategies.

The following are other highlights from the first quarter financial results:

Income Statement

• Net interest income increased $11.6 million over a year ago, primarily as a result of a higher overall yield and higher average balances of interest-earning assets and a lower overall average cost of interest-bearing liabilities.

• Total banking and financial service revenues of $7.5 million grew 10.8% compared with a year ago, reflecting increased revenues from investment banking and mortgage banking activities.

• The strengthening of the mortgage banking operations during 2007 has permitted the Group to continue to securitize and sell conforming mortgage loans in the secondary market on a more consistent basis.

• Assets under management, which generate recurring fees for the Group’s financial service businesses, reached $3.2 billion at March 31, 2008, an increase of 9.0% from a year ago.

• Other non-interest income consisted mainly of gains on sale of securities of $9.3 million and losses on derivative activities of $7.8 million versus the first quarter of 2007, which included an $8.2 million gain from elimination of forecasted transactions on interest rate swaps unwound in 2006.

• Non-interest expenses of $17.7 million for the 2008 first quarter increased 12.0% compared with the 2007 first quarter. Reflecting Oriental’s revenue growth, the efficiency ratio improved to 54.69% versus 78.95% in the year ago quarter.

• The results for the 2008 first quarter include an income tax benefit of $2.5 million which takes into account the expiration of certain tax contingencies and the reassessment of the valuation allowance for the deferred tax asset.

Balance Sheet Highlights

• Total interest earning assets of approximately $6.0 billion increased 18.8% over a year ago. This was primarily due to a 26.2% year over year increase in the investment portfolio, to $4.8 billion. This growth is in line with management’s strategy of supplementing the generally low level of loan originations with the purchase of high-quality investments with a favorable spread.

• During the last 12 months the held to maturity investment portfolio was reduced by $626.5 million due to maturities and repayments, with the proceeds principally reinvested in the available for sale investment portfolio at more favorable spreads.

• Funding for the asset growth during the first quarter of 2008 came mainly from a $195.6 million increase in deposits, which totaled $1.4 billion at March 31, 2008, up 7.8% from a year ago and 15.7%, from the preceding quarter.

Credit Quality

• Net credit losses in the first quarter decreased to 0.24% of average loans outstanding. The increase in non-performing loans that has been affecting most of the industry is not expected to translate into significantly higher losses for Oriental since most of its loans are well collateralized with adequate loan-to-value ratios.

• The Group follows a conservative residential mortgage lending policy, with more than 90% of its residential mortgage portfolio consisting of fixed-rate, fully amortizing, fully documented loans that do not have the level of risk associated with subprime loans offered by certain major US mortgage loan originators. Furthermore, Oriental has never been active in negative amortization loans or adjustable rate mortgage loans.

• The allowance for loan losses stood at $11.1 million (0.93% of total loans) at March 31, 2008, compared to $8.0 million (0.65% of total loans) at March 31, 2007.

Capital

• Stockholders’ equity was $338.8 million at March 31, 2008, reflecting a slight increase from the year ago quarter, but a 5.8% decline from the previous quarter. Book value per common share of $11.14 at March 31, 2008 is a slight increase from a year ago and a 1.9% decline from the preceding quarter.

• The sequential change in stockholders’ equity and book value reflects mark to market valuation on the available for sale investment securities portfolio, mostly offset by a 23.6% increase in retained earnings.

• The 1.1% year over year decline in total average shares outstanding and equivalents reflects share repurchases during 2007.

• The Group maintains capital ratios comfortably in excess of the regulatory requirements. At March 31, 2008, the Leverage Capital Ratio was 6.67% (1.7 times the minimum of 4.00%), the Tier I Risk-Based Capital Ratio was 17.02% (4.3 times the minimum of 4.00%), and the Total Risk-Based Capital Ratio was 17.49% (2.2 times the minimum of 8.00%).

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 44^th year in business, Oriental provides a full range of mortgage, commercial and consumer banking services through 24 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 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 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.

# # #

	QUARTER ENDED
	31-Mar-08			31-Mar-07			%			31-Dec-07
Summary of Operations(Dollars in thousands, except per share data):
Interest Income:
Loans	$	19,828		$	21,849			-9.2	%	$	19,940
Investment securities		62,273			39,651			57.1	%		62,198
Total interest income		82,101			61,500			33.5	%		82,138
Interest Expense:
Deposits		12,429			12,370			0.5	%		13,385
Securities sold under agreements to repurchase		40,240			32,789			22.7	%		40,950
Other borrowed funds		4,523			3,075			47.1	%		4,800
Total interest expense		57,192			48,234			18.6	%		59,135
Net interest income		24,909			13,266			87.8	%		23,003
Provision for loan losses		1,650			1,075			53.5	%		2,486
Net interest income after provision for loan losses		23,259			12,191			90.8	%		20,517
Non-Interest Income:
Financial service revenues		4,240			4,843			-12.5	%		4,666
Banking service revenues		1,527			1,874			-18.5	%		1,861
Investment banking revenues		738			—			100.0	%		13
Mortgage banking activities		1,006			62			1522.6	%		1,160
Total banking and financial service revenues		7,511			6,779			10.8	%		7,700
Net gain (loss) on:
Sale of securities		9,297			359			2489.7	%		2,617
Derivatives		(7,803	)		8,418			-192.7	%		2,459
Other investments		110			(360	)		130.6	%		—
Sale of foreclosed real estate		(250	)		37			-775.7	%		(357	)
Other		(1	)		19			-105.3	%		24
Total non-interest income		8,864			15,252			-41.9	%		12,442
Non-Interest Expenses:
Compensation and employees’ benefits		7,715			6,745			14.4	%		7,154
Occupancy and equipment		3,287			2,994			9.8	%		3,243
Professional and service fees		1,880			1,538			22.2	%		1,845
Advertising and business promotion		1,074			793			35.4	%		1,492
Directors and investor relations expenses		278			531			-47.6	%		495
Loan servicing expenses		331			523			-36.7	%		328
Taxes, other than payroll and income taxes		611			448			36.4	%		608
Electronic banking charges		418			458			-8.7	%		479
Clearing and wrap fees expenses		294			253			16.2	%		74
Communication		325			338			-3.8	%		301
Insurance		602			216			178.7	%		210
Printing, postage, stationery and supplies		277			202			37.1	%		274
Other		638			788			-19.0	%		529
Total non-interest expenses		17,730			15,827			12.0	%		17,032
Income before income taxes		14,393			11,616			23.9	%		15,927
Income tax expense (benefit)		(2,455	)		624			-493.4	%		551
Net income		16,848			10,992			53.3	%		15,376
Less: Dividends on preferred stock		(1,201	)		(1,200	)		-0.1	%		(1,201	)
Income available to common shareholders	$	15,647		$	9,792			59.8	%	$	14,175

Page 1 of 5

	QUARTER ENDED
	31-Mar-08			31-Mar-07			%			31-Dec-07
(Dollars in thousands, except per share data):
EARNINGS (LOSS) PER SHARE
Basic	$	0.65		$	0.40			62.5	%	$	0.59
Diluted	$	0.64		$	0.40			60.0	%	$	0.59
COMMON STOCK DATA
Average common shares outstanding		24,171			24,472			-1.2	%		24,120
Average potential common shares-options		125			93			34.4	%		34
Total average shares outstanding and equivalents		24,296			24,565			-1.1	%		24,154
Common shares outstanding at end of period		24,296			24,483			-0.8	%		24,119
Book value per common share	$	11.14		$	11.04			0.9	%	$	11.35
Cash dividends per share of common stock	$	0.14		$	0.14			—		$	0.14
Cash dividends declared on common shares	$	3,399		$	3,427			-0.8	%	$	3,377
Pay-out ratio		21.54	%		35.00	%		-38.5	%		23.73	%
SELECTED FINANCIAL DATA
PERFORMANCE RATIOS:
Return on average assets		1.06	%		1.01	%		5.0	%		1.04	%
Return on average common equity		20.63	%		14.54	%		41.9	%		20.08	%
Efficiency ratio		54.69	%		78.95	%		-30.7	%		55.47	%
TAX EQUIVALENT SPREAD
Interest-earning assets		5.55	%		5.46	%		1.6	%		5.74	%
Tax equivalent adjustment		1.12	%		1.30	%		-13.8	%		1.15	%
Interest-earning assets — tax equivalent		6.67	%		6.76	%		-1.3	%		6.89	%
Interest-bearing liabilities		4.21	%		4.57	%		-7.9	%		4.42	%
Tax equivalent interest rate spread		2.46	%		2.19	%		12.3	%		2.47	%
Tax equivalent interest rate margin		2.80	%		2.48	%		12.9	%		2.76	%
NORMAL SPREAD
Investments		5.28	%		4.85	%		8.9	%		5.47	%
Loans		6.66	%		7.07	%		-5.8	%		6.74	%
Interest-earning assets		5.55	%		5.46	%		1.6	%		5.74	%
Deposits		4.14	%		4.08	%		1.5	%		4.77	%
Borrowings		4.23	%		4.77	%		-11.3	%		4.32	%
Interest-bearing liabilities		4.21	%		4.57	%		-7.9	%		4.42	%
Interest rate spread		1.34	%		0.89	%		50.6	%		1.32	%
Interest rate margin		1.68	%		1.18	%		42.4	%		1.61	%
AVERAGE BALANCES
Investments	$	4,721,542		$	3,269,937			44.4	%	$	4,545,878
Loans		1,191,305			1,235,569			-3.6	%		1,182,800
Interest-earning assets	$	5,912,847		$	4,505,506			31.2	%	$	5,728,678
Deposits	$	1,200,361		$	1,212,907			-1.0	%	$	1,121,800
Borrowings		4,233,176			3,006,251			40.8	%		4,232,917
Interest-bearing liabilities	$	5,433,537		$	4,219,158			28.8	%	$	5,354,717

Page 2 of 5

	AS OF
	31-Mar-08			31-Mar-07			%			31-Dec-07
(Dollars in thousands)
BALANCE SHEET
Cash and due from banks	$	50,052		$	69,413			-27.9	%	$	88,983
Interest-earning assets:
Investments:
Trading securities		93			461			-79.8	%		1,122
Investment securities available-for-sale, at fair value with amortized cost of $3,497,906 (December 31, 2007 - $3,063,750, March 31, 2007 - 1,828,459)		3,465,741			1,825,942			89.8	%		3,069,282
Investment securities held-to-maturity, at amortized cost with fair value of $1,263,455 (December 31, 2007 - $1,478,112, March 31, 2007 - 1,880,479)		1,277,171			1,903,707			-32.9	%		1,492,887
Other investments		150			31,578			-99.5	%		1,662
Federal Home Loan Bank (FHLB) stock, at cost		20,658			14,197			45.5	%		20,658
Total investments		4,763,813			3,775,885			26.2	%		4,585,611
Loans:
Mortgage loans		989,284			932,989			6.0	%		989,487
Commercial loans, mainly secured by real estate		156,508			236,739			-33.9	%		157,198
Consumer loans		28,178			33,419			-15.7	%		29,245
Loans receivable, gross		1,173,970			1,203,147			-2.4	%		1,175,930
Less: Deferred loan fees, net		(3,022	)		(3,411	)		11.4	%		(2,875	)
Loans receivable		1,170,948			1,199,736			-2.4	%		1,173,055
Allowance for loan losses		(11,092	)		(8,046	)		-37.9	%		(10,161	)
Loans receivable, net		1,159,856			1,191,690			-2.7	%		1,162,894
Mortgage loans held for sale		25,577			42,204			-39.4	%		16,672
Total loans, net		1,185,433			1,233,894			-3.9	%		1,179,566
Total interest-earning assets		5,949,246			5,009,779			18.8	%		5,765,177
Securities and loans sold but not yet delivered		26,995			74,289			-63.7	%		—
Accrued interest receivable		37,026			30,482			21.5	%		52,315
Premises and equipment, net		21,587			19,853			8.7	%		21,779
Deferred tax asset, net		12,931			13,562			-4.7	%		10,362
Foreclosed real estate		4,119			5,320			-22.6	%		4,207
Investment in equity indexed options		34,475			39,746			-13.3	%		40,709
Investment in limited partnership		—			11,021			-100.0	%		—
Prepaid expenses		4,532			1,858			143.9	%		2,714
Investment in Statutory Trusts		1,085			1,086			-0.1	%		1,086
Goodwill		2,007			2,006			0.0	%		2,006
Servicing asset		2,819			1,364			106.7	%		2,526
Accounts receivable and other assets		11,245			12,274			-8.4	%		7,992
Total assets	$	6,158,119		$	5,292,053			16.4	%	$	5,999,855
Interest-bearing liabilities:
Deposits:
Demand deposits	$	128,273		$	124,610			2.9	%	$	119,152
Savings accounts		453,711			307,319			47.6	%		387,790
Individual retirement accounts		310,907			324,737			-4.3	%		317,744
Retail certificates of deposit		271,053			197,237			37.4	%		232,239
Total Retail Deposits		1,163,944			953,903			22.0	%		1,056,925
Wholesale certificates of deposit		278,044			383,682			-27.5	%		189,495
Total deposits		1,441,988			1,337,585			7.8	%		1,246,420

Page 3 of 5

	AS OF
	31-Mar-08			31-Mar-07			%			31-Dec-07
(Dollars in thousands)
Borrowings:
Federal funds purchased and other short term borrowings		36,517			3,139			1063.3	%		27,460
Securities sold under agreements to repurchase		3,847,633			3,321,105			15.9	%		3,861,411
Advances from FHLB		331,853			195,000			70.2	%		331,898
Subordinated capital notes		36,083			36,083			—			36,083
Total borrowings		4,252,086			3,555,327			19.6	%		4,256,852
Total interest-bearing liabilities		5,694,074			4,892,912			16.4	%		5,503,272
Securities and loans purchased but not yet received		101,375			40,067			153.0	%		111,431
Accrued expenses and other liabilities		23,912			20,752			15.2	%		25,691
Total liabilities		5,819,361			4,953,731			17.5	%		5,640,394
Preferred Equity		68,000			68,000			—			68,000
Common Equity:
Common stock		25,732			25,461			1.1	%		25,557
Additional paid-in capital		212,056			209,226			1.4	%		210,073
Legal surplus		42,140			37,424			12.6	%		40,573
Retained earnings		55,977			31,956			75.2	%		45,296
Treasury stock, at cost		(17,184	)		(12,848	)		-33.7	%		(17,023	)
Accumulated other comprehensive loss		(47,963	)		(20,897	)		-129.5	%		(13,015	)
Total common equity		270,758			270,322			0.2	%		291,461
Stockholders’ equity		338,758			338,322			0.1	%		359,461
Total liabilities and stockholders’ equity	$	6,158,119		$	5,292,053			16.4	%	$	5,999,855
CAPITAL RATIOS
Leverage Capital Ratio		6.67	%		8.21	%		-18.8	%		6.69	%
Minimum Leverage Capital Ratio Required		4.00	%		4.00	%		4.00	%
Actual Tier 1 Capital	$	407,984		$	379,926			7.4	%	$	396,309
Minimum Tier 1 Capital Required	$	244,590		$	185,066			32.2	%	$	236,847
Tier 1 Risk-Based Capital Ratio		17.02	%		19.15	%		-11.1	%		18.59	%
Minimum Tier 1 Risk-Based Capital Ratio Required		4.00	%		4.00	%		4.00	%
Actual Tier 1 Risk-Based Capital	$	407,984		$	379,926			7.4	%	$	396,309
Minimum Tier 1 Risk-Based Capital Required	$	95,864		$	79,357			20.8	%	$	85,292
Total Risk-Based Capital Ratio		17.49	%		19.56	%		-10.6	%		19.06	%
Minimum Total Risk-Based Capital Ratio Required		8.00	%		8.00	%		8.00	%
Actual Total Risk-Based Capital	$	419,075		$	387,972			8.0	%	$	406,470
Minimum Total Risk-Based Capital Required	$	191,728		$	158,713			20.8	%	$	170,583
Tangible Common Equity to Total Assets		4.36	%		5.07	%		-14.0	%		4.82	%
SELECTED FINANCIAL DATA AT PERIOD-END
Trust Assets Managed		1,927,638			1,850,912			4.15	%	$	1,962,226
Broker-Dealer Assets Gathered		1,290,973			1,101,542			17.2	%		1,281,168
Total Assets Managed		3,218,611			2,952,454			9.0	%		3,243,394
Assets owned		6,158,119			5,292,053			16.4	%		5,999,855
Total financial assets managed and owned	$	9,376,730		$	8,244,507			13.7	%	$	9,243,249
Number of financial centers		24			25			-4.0	%		24

Page 4 of 5

	QUARTER ENDED
	31-Mar-08			31-Mar-07			%			31-Dec-07
(Dollars in thousands)
Loan Production and Purchases Summary:
Mortgage loans production	$	44,578		$	50,937			-12.5	%	$	35,154
Mortgage loans purchased		4,691			4,572			2.6	%		389
Total mortgage		49,269			55,509			-11.2	%		35,543
Commercial		15,737			15,139			4.0	%		21,758
Consumer		1,233			1,633			-24.5	%		1,470
Total loan production and purchases	$	66,239		$	72,281			-8.4	%	$	58,771
CREDIT DATA
Net credit losses:
Mortgage	$	166		$	546			-69.6	%	$	740
Commercial		(13	)		(10	)		-30.0	%		12
Consumer		567			509			11.4	%		628
Total net credit losses	$	720		$	1,045			-31.1	%	$	1,380
Net credit losses to average loans outstanding		0.24	%		0.34	%		-29.4	%		0.47	%

	AS OF
	31-Mar-08			31-Mar-07			%			31-Dec-07
Allowance for loan losses	$	11,092		$	8,046			37.90	%	$	10,161
Allowance coverage ratios:
Allowance for loan losses to total loans		0.93	%		0.65	%		43.08	%		0.85	%
Allowance for loan losses to non-performing loans		16.04	%		18.34	%		-12.50	%		15.37	%
Allowance for loan losses to non-residential non-performing loans		289.16	%		212.86	%		35.80	%		314.39	%
Non-performing assets summary:
Mortgage	$	65,331		$	40,091			63.00	%		62,878
Commercial, mainly real estate		2,754			3,115			-11.60	%		2,414
Consumer		1,082			665			62.70	%		818
Non-performing loans		69,167			43,871			57.70	%		66,110
Foreclosed properties		4,119			5,320			-22.60	%		4,207
Non-performing assets	$	73,286		$	49,191			49.00	%		70,317
Non-performing loans to total loans		5.78	%		3.53	%		63.70	%		5.56	%
Non-performing loans to total assets		1.12	%		0.83	%		34.90	%		1.10	%
Non-performing assets to total assets		1.19	%		0.93	%		28.00	%		1.17	%
Non-performing assets to total capital		21.63	%		14.54	%		48.80	%		19.56	%

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