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 FIRST QUARTER
EARNINGS PER COMMON SHARE OF $0.97
EARNINGS PER COMMON SHARE OF $0.97
SAN JUAN, April 23, 2009 — Oriental Financial Group Inc. (NYSE: OFG) today reported income available to common shareholders of $23.5 million for the first quarter ended March 31, 2009. This represented a return on average assets of 1.53% and a return on average common equity of 49.14%, compared with 1.06% and 20.63%, respectively, in the first quarter of 2008. Diluted earnings per common share of $0.97 were 51.6% greater than the $0.64 reported in the year ago quarter.
Highlights
| • | Strong sequential increases in residential mortgage and commercial loan production | |
| • | Retail deposits increased 10.73%, or $116.2 million, from December 31, 2008 | |
| • | Sequential increase of 75.9% in mortgage banking activities | |
| • | Sequential increase of 3.0% in net interest income | |
| • | Stockholders’ equity increased $58.0 million during the quarter | |
| • | Book value per common share increased to $10.38 from $7.96 at December 31, 2008 | |
| • | Gain of $10.3 million on the sale of securities |
“We are pleased with the Group’s performance, considering the recession in Puerto Rico and the state of the financial markets,” said José Rafael Fernández, President and Chief Executive Officer. “These results reflect our effective investment securities strategy, the growing strength of our client franchise, our focus on credit quality, and the dedication of our people. We remain well positioned to benefit from our strategies in the foreseeable future.”
Revenues
Net interest income was $30.7 million, 23.1% and 3.0% higher than the year ago quarter and previous quarter, respectively. Growth reflects the significant reduction in cost of funds, which has declined more rapidly than the yield on interest-earning assets.
Non-interest income was $17.2 million, 94.6% higher than the first quarter of 2008. Growth reflects a gain on the sale of government securities from another sharp increase in market values, the result of the U.S. Treasury’s expanded plan to purchase such securities in the secondary market; increased mortgage banking activities from the sale of conforming residential mortgage production into the secondary market; and lower banking and financial service revenues, in line with first quarter industry trends; and continued de-emphasis of overdraft privilege program.
Non-Interest Expenses
Non-interest expenses of $19.3 million increased year over year at a lower rate than revenues, resulting in an improved efficiency ratio of 51.65% (compared to 54.69% in the year-ago quarter).
Income Taxes
The effective income tax rate was 2.7% for the first quarter of 2009, which includes Puerto Rico’s new taxes on the earnings of international banking entities and financial institutions, versus tax benefits in the first and fourth quarters of 2008.
Capital
At March 31, 2009, stockholders’ equity increased $58.0 million to $319.4 million, or 22.2% from December 31, 2008, reflecting increased values in the investment securities portfolio and the increase in retained earnings. Book value per common share increased 30.4% and tangible common equity to risk-weighted assets of 9.82% increased 141 basis points during the quarter.
The Group maintains capital ratios in excess of regulatory requirements. At March 31, 2009, the Leverage Capital Ratio was 6.71% (1.7 times the minimum of 4.00%); Tier I Risk-Based Capital Ratio was 16.41% (4.1 times the minimum of 4.00%), and the Total Risk-Based Capital Ratio was 17.01% (2.1 times the minimum of 8.00%). In dollars, Leverage Capital and Tier 1 Risk-Based Capital of $417.0 million increased $27.7 million from December 31, 2008, and Total Risk-Based Capital of $432.1 million increased $28.6 million.
The Financial Service-Banking Franchise
The Group’s niche market approach to the integrated delivery of services to mid and high net worth clients performed well, resulting in expanded market share.
Lending
Loan production of $85.1 million was up 38.3% from the year ago quarter and 24.3% from the previous quarter, as the Group’s capital levels and low credit losses compared to most banking institutions enabled it to continue prudent lending. The average FICO score was 720 and the average loan to value ratio was 82% on residential mortgage loans originated in the first quarter of 2009.
Deposits
Sequential growth in retail deposits from the fourth quarter of 2008 reflects a $115.1 million increase in demand deposits, primarily from new accounts.
Assets Under Management
Assets under management, which generate recurring fees, declined only 6.8% from December 31, 2008, as a high proportion of fixed income investments helped offset the 11.7% decline in equity markets, as measured by the S&P 500 index. Outflows were minimal.
Credit Quality
Net credit losses increased $0.9 million from the fourth quarter of 2008. The provision for loan losses for the first quarter of 2009 was $3.2 million (136.6% of net credit losses), increasing the allowance for loan losses by 6.0% to $15.1 million, as compared to the fourth quarter of 2008.
Non-performing loans increased $9.1 million from the fourth quarter, reflecting the economic environment in Puerto Rico. Based on historical performance, the Group does not expect non-performing loans to result in significantly higher losses as most are well-collateralized with adequate loan-to-value ratios. In residential mortgage lending, more than 90% of the Group’s portfolio consists of fixed-rate, fully amortizing, fully documented loans that do not have the level of risk generally associated with subprime loans. In commercial lending, more than 90% of its loans are collateralized by real estate.
The Investment Securities Portfolio
The average balance was $5.0 billion, up 5.5% from the first quarter of 2008 and up 3.9% from the fourth quarter of 2008.
Approximately 86% of the 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, and thus backed by a U.S. government sponsored entity or the full faith and credit of the U.S. government (84%), and Puerto Rico Government and agency obligations (2%). The remaining balance consists of non-agency collateralized mortgage obligations (11%), the majority of which are backed by prime fixed-rate residential mortgage collateral, and structured credit investments (3%).
Conference Call
A conference call to discuss the firm’s results, outlook and related matters will be held on Friday, April 24, 2009 at 10:00 am (ET). The call will be accessible live via a webcast on the Group’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 45th year in business, Oriental provides a full range of mortgage, commercial and consumer banking services through 23 Oriental Group 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 because of developments occurring after the date of issuance.
# # #
 | ORIENTAL FINANCIAL GROUP Financial Summary (NYSE: OFG) |
| QUARTER ENDED | ||||||||||||||||
| 31-Mar-09 | 31-Mar-08 | % | 31-Dec-08 | |||||||||||||
| Summary of Operations(Dollars in thousands, except per share data): | ||||||||||||||||
Interest Income: | ||||||||||||||||
| Loans | $ | 18,320 | $ | 19,828 | -7.6 | % | $ | 19,684 | ||||||||
| Investment securities and other | 65,611 | 62,273 | 5.4 | % | 67,352 | |||||||||||
Total interest income | 83,931 | 82,101 | 2.2 | % | 87,036 | |||||||||||
Interest Expense: Deposits | 13,823 | 12,429 | 11.2 | % | 13,035 | |||||||||||
| Securities sold under agreements to repurchase | 35,799 | 40,240 | -11.0 | % | 40,459 | |||||||||||
| Other borrowed funds | 3,644 | 4,523 | -19.4 | % | 3,766 | |||||||||||
Total interest expense | 53,266 | 57,192 | -6.9 | % | 57,260 | |||||||||||
Net interest income | 30,665 | 24,909 | 23.1 | % | 29,776 | |||||||||||
| Provision for loan losses | 3,200 | 1,650 | 93.9 | % | 3,280 | |||||||||||
Net interest income after provision for loan losses | 27,465 | 23,259 | 18.1 | % | 26,496 | |||||||||||
Non-Interest Income: | ||||||||||||||||
| Financial service revenues | 3,114 | 4,240 | -26.6 | % | 3,985 | |||||||||||
| Banking service revenues | 1,393 | 1,527 | -8.8 | % | 1,398 | |||||||||||
| Investment banking revenues (losses) | (12 | ) | 738 | -101.6 | % | — | ||||||||||
| Mortgage banking activities | 2,153 | 1,006 | 114.0 | % | 1,224 | |||||||||||
Total banking and financial service revenues | 6,648 | 7,511 | -11.5 | % | 6,607 | |||||||||||
| Net gain (loss) on: | ||||||||||||||||
| Sale of securities | 10,340 | 9,314 | 11.0 | % | 25,162 | |||||||||||
| Derivatives | 434 | (7,803 | ) | 105.6 | % | 304 | ||||||||||
| Mortgage tax credits | — | — | 0.0 | % | (2,480 | ) | ||||||||||
| Other investments | 13 | 110 | -88.2 | % | 16 | |||||||||||
| Trading securities | (27 | ) | (17 | ) | -58.8 | % | 19 | |||||||||
| Sale of foreclosed real estate | (162 | ) | (250 | ) | 35.2 | % | (218 | ) | ||||||||
| Other | — | (1 | ) | 100.0 | % | 1 | ||||||||||
Total non-interest income | 17,246 | 8,864 | 94.6 | % | 29,411 | |||||||||||
Non-Interest Expenses: Compensation and employees’ benefits | 7,724 | 7,715 | 0.1 | % | 7,291 | |||||||||||
| Occupancy and equipment | 3,489 | 3,287 | 6.1 | % | 3,630 | |||||||||||
| Professional and service fees | 2,608 | 1,880 | 38.7 | % | 2,599 | |||||||||||
| Advertising and business promotion | 1,204 | 1,074 | 12.1 | % | 1,213 | |||||||||||
| Insurance | 815 | 602 | 35.4 | % | 622 | |||||||||||
| Taxes, other than payroll and income taxes | 646 | 611 | 5.7 | % | 652 | |||||||||||
| Electronic banking charges | 540 | 418 | 29.2 | % | 484 | |||||||||||
| Loan servicing | 383 | 331 | 15.7 | % | 361 | |||||||||||
| Communication | 379 | 325 | 16.6 | % | 328 | |||||||||||
| Directors and investor relations | 349 | 278 | 25.5 | % | 305 | |||||||||||
| Clearing and wrap fees | 330 | 294 | 12.2 | % | 349 | |||||||||||
| Other | 806 | 915 | -11.9 | % | 901 | |||||||||||
Total non-interest expenses | 19,273 | 17,730 | 8.7 | % | 18,735 | |||||||||||
Income before income taxes | 25,438 | 14,393 | 76.7 | % | 37,172 | |||||||||||
| Income tax expense (benefit) | 690 | (2,455 | ) | 128.1 | % | (3,240 | ) | |||||||||
Net income | 24,748 | 16,848 | 46.9 | % | 40,412 | |||||||||||
| Less: Dividends on preferred stock | (1,201 | ) | (1,201 | ) | 0.0 | % | (1,201 | ) | ||||||||
Income available to common shareholders | $ | 23,547 | $ | 15,647 | 50.5 | % | $ | 39,211 | ||||||||
Page 1
| ORIENTAL FINANCIAL GROUP Financial Summary (NYSE: OFG) |
| QUARTER ENDED | ||||||||||||||||
| 31-Mar-09 | 31-Mar-08 | % | 31-Dec-08 | |||||||||||||
| (Dollars in thousands, except per share data): | ||||||||||||||||
EARNINGS PER SHARE | ||||||||||||||||
| Basic | $ | 0.97 | $ | 0.65 | 49.2 | % | $ | 1.61 | ||||||||
| Diluted | $ | 0.97 | $ | 0.64 | 51.6 | % | $ | 1.61 | ||||||||
COMMON STOCK DATA | ||||||||||||||||
| Average common shares outstanding | 24,245 | 24,164 | 0.3 | % | 24,295 | |||||||||||
| Average potential common shares-options | 3 | 125 | -97.6 | % | 16 | |||||||||||
Total average shares outstanding and equivalents | 24,248 | 24,289 | -0.2 | % | 24,311 | |||||||||||
| Common shares outstanding at end of period | 24,223 | 24,285 | -0.3 | % | 24,297 | |||||||||||
| Book value per common share | $ | 10.38 | $ | 11.15 | -6.9 | % | $ | 7.96 | ||||||||
| Cash dividends per share of common stock | $ | 0.04 | $ | 0.14 | -71.4 | % | $ | 0.14 | ||||||||
| Cash dividends declared on common shares | $ | 972 | $ | 3,399 | -71.4 | % | $ | 3,402 | ||||||||
| Pay-out ratio | 4.12 | % | 21.88 | % | -81.1 | % | 8.70 | % | ||||||||
SELECTED FINANCIAL DATA | ||||||||||||||||
PERFORMANCE RATIOS: | ||||||||||||||||
| Return on average assets | 1.53 | % | 1.06 | % | 44.3 | % | 2.57 | % | ||||||||
| Return on average common equity | 49.14 | % | 20.63 | % | 138.2 | % | 99.67 | % | ||||||||
| Efficiency ratio | 51.65 | % | 54.69 | % | -5.6 | % | 51.49 | % | ||||||||
TAX EQUIVALENT SPREAD | ||||||||||||||||
| Interest-earning assets | 5.43 | % | 5.55 | % | -2.2 | % | 5.78 | % | ||||||||
| Tax equivalent adjustment | 1.68 | % | 1.84 | % | -8.7 | % | 1.92 | % | ||||||||
| Interest-earning assets — tax equivalent | 7.11 | % | 7.39 | % | -3.8 | % | 7.70 | % | ||||||||
| Interest-bearing liabilities | 3.64 | % | 4.21 | % | -13.5 | % | 4.01 | % | ||||||||
| Tax equivalent interest rate spread | 3.47 | % | 3.18 | % | 9.1 | % | 3.69 | % | ||||||||
| Tax equivalent interest rate margin | 3.66 | % | 3.52 | % | 4.0 | % | 3.90 | % | ||||||||
NORMAL SPREAD | ||||||||||||||||
| Investments | 5.27 | % | 5.28 | % | -0.2 | % | 5.62 | % | ||||||||
| Loans | 6.09 | % | 6.66 | % | -8.6 | % | 6.39 | % | ||||||||
| Interest-earning assets | 5.43 | % | 5.55 | % | -2.2 | % | 5.78 | % | ||||||||
| Deposits | 3.27 | % | 4.14 | % | -21.0 | % | 3.35 | % | ||||||||
| Borrowings | 3.79 | % | 4.23 | % | -10.4 | % | 4.25 | % | ||||||||
| Interest-bearing liabilities | 3.64 | % | 4.21 | % | -13.5 | % | 4.01 | % | ||||||||
| Interest rate spread | 1.79 | % | 1.34 | % | 33.6 | % | 1.77 | % | ||||||||
| Interest rate margin | 1.98 | % | 1.68 | % | 17.9 | % | 1.98 | % | ||||||||
AVERAGE BALANCES | ||||||||||||||||
| Investments | $ | 4,980,245 | $ | 4,721,542 | 5.5 | % | $ | 4,791,032 | ||||||||
| Loans | 1,203,736 | 1,191,305 | 1.0 | % | 1,231,864 | |||||||||||
| Interest-earning assets | $ | 6,183,981 | $ | 5,912,847 | 4.6 | % | $ | 6,022,896 | ||||||||
| Deposits | $ | 1,689,300 | $ | 1,200,361 | 40.7 | % | $ | 1,554,648 | ||||||||
| Borrowings | 4,159,397 | 4,233,176 | -1.7 | % | 4,159,521 | |||||||||||
| Interest-bearing liabilities | $ | 5,848,697 | $ | 5,433,537 | 7.6 | % | $ | 5,714,169 | ||||||||
Page 2
| ORIENTAL FINANCIAL GROUP Financial Summary (NYSE: OFG) |
| AS OF | ||||||||||||||||
| 31-Mar-09 | 31-Mar-08 | % | 31-Dec-08 | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||
BALANCE SHEET | ||||||||||||||||
Cash and due from banks | $ | 293,750 | $ | 50,052 | 486.9 | % | $ | 66,372 | ||||||||
Interest-earning assets: | ||||||||||||||||
Investments: | ||||||||||||||||
| Trading securities | 608 | 93 | 553.8 | % | 256 | |||||||||||
| Investment securities available-for-sale, at fair value with amortized cost of $4,648,495 (March 31, 2008 - $3,497,906, December 31, 2008 - $4,052,574) | 4,555,533 | 3,465,741 | 31.4 | % | 3,924,207 | |||||||||||
| Investment securities held-to-maturity, at amortized cost with fair value of $1,263,260 at March 31, 2008 | — | 1,277,171 | -100.0 | % | — | |||||||||||
| Other investments | 150 | 150 | 0.0 | % | 150 | |||||||||||
| Federal Home Loan Bank (FHLB) stock, at cost | 19,812 | 20,658 | -4.1 | % | 21,013 | |||||||||||
Total investments | 4,576,103 | 4,763,813 | -3.9 | % | 3,945,626 | |||||||||||
Loans: | ||||||||||||||||
| Mortgage loans | 968,334 | 989,284 | -2.1 | % | 1,000,076 | |||||||||||
| Commercial loans | 194,145 | 156,508 | 24.0 | % | 187,077 | |||||||||||
| Consumer loans | 21,330 | 28,178 | -24.3 | % | 23,054 | |||||||||||
Loans receivable, gross | 1,183,809 | 1,173,970 | 0.8 | % | 1,210,207 | |||||||||||
| Less: Deferred loan fees, net | (3,509 | ) | (3,022 | ) | -16.1 | % | (3,364 | ) | ||||||||
Loans receivable | 1,180,300 | 1,170,948 | 0.8 | % | 1,206,843 | |||||||||||
| Allowance for loan losses | (15,147 | ) | (11,092 | ) | -36.6 | % | (14,293 | ) | ||||||||
Loans receivable, net | 1,165,153 | 1,159,856 | 0.5 | % | 1,192,550 | |||||||||||
| Mortgage loans held for sale | 34,278 | 25,577 | 34.0 | % | 26,562 | |||||||||||
Total loans, net | 1,199,431 | 1,185,433 | 1.2 | % | 1,219,112 | |||||||||||
Total interest-earning assets | 5,775,534 | 5,949,246 | -2.9 | % | 5,164,738 | |||||||||||
| Securities sold but not yet delivered | 289,565 | 26,995 | 972.7 | % | 834,976 | |||||||||||
| Accrued interest receivable | 38,585 | 37,026 | 4.2 | % | 43,914 | |||||||||||
| Premises and equipment, net | 21,540 | 21,587 | -0.2 | % | 21,184 | |||||||||||
| Deferred tax asset, net | 23,422 | 12,931 | 81.1 | % | 28,463 | |||||||||||
| Foreclosed real estate | 9,681 | 4,119 | 135.0 | % | 9,162 | |||||||||||
| Investment in equity indexed options | 8,991 | 34,475 | -73.9 | % | 12,801 | |||||||||||
| Mortgage tax credits | 5,047 | 1,754 | 187.7 | % | 5,047 | |||||||||||
| Prepaid expenses | 2,817 | 2,778 | 1.4 | % | 3,433 | |||||||||||
| Investment in Statutory Trust | 1,086 | 1,086 | 0.0 | % | 1,086 | |||||||||||
| Goodwill | 2,006 | 2,006 | 0.0 | % | 2,006 | |||||||||||
| Servicing asset | 3,467 | 2,819 | 23.0 | % | 2,819 | |||||||||||
| Debt issuance costs | 4,381 | 901 | 386.3 | % | 900 | |||||||||||
| Accounts receivable and other assets | 12,013 | 10,344 | 16.1 | % | 8,635 | |||||||||||
Total assets | $ | 6,491,885 | $ | 6,158,119 | 5.4 | % | $ | 6,205,536 | ||||||||
Interest-bearing liabilities: | ||||||||||||||||
Deposits: | ||||||||||||||||
| Demand deposits | $ | 568,808 | $ | 128,330 | 343.2 | % | $ | 453,690 | ||||||||
| Savings accounts | 55,079 | 453,711 | -87.9 | % | 50,153 | |||||||||||
| Individual retirement accounts | 291,982 | 310,907 | -6.1 | % | 286,691 | |||||||||||
| Retail certificates of deposit | 282,901 | 270,996 | 4.4 | % | 292,045 | |||||||||||
| Total Retail Deposits | 1,198,770 | 1,163,944 | 3.0 | % | 1,082,579 | |||||||||||
| Institutional deposits | 161,168 | 150,969 | 6.8 | % | 184,283 | |||||||||||
| Brokered deposits | 452,247 | 127,075 | 255.9 | % | 518,438 | |||||||||||
Total deposits | 1,812,185 | 1,441,988 | 25.7 | % | 1,785,300 | |||||||||||
Page 3
| ORIENTAL FINANCIAL GROUP Financial Summary (NYSE: OFG) |
| AS OF | ||||||||||||||||
| 31-Mar-09 | 31-Mar-08 | % | 31-Dec-08 | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||
Borrowings: | ||||||||||||||||
| Federal funds purchased and other short term borrowings | 44,310 | 36,517 | 21.3 | % | 29,193 | |||||||||||
| Securities sold under agreements to repurchase | 3,757,411 | 3,847,633 | -2.3 | % | 3,761,121 | |||||||||||
| Advances from FHLB | 281,675 | 331,853 | -15.1 | % | 308,442 | |||||||||||
| FDIC-guaranteed term notes | 105,112 | — | 100.0 | % | — | |||||||||||
| Subordinated capital notes | 36,083 | 36,083 | — | 36,083 | ||||||||||||
Total borrowings | 4,224,591 | 4,252,086 | -0.6 | % | 4,134,839 | |||||||||||
Total interest-bearing liabilities | 6,036,776 | 5,694,074 | 6.0 | % | 5,920,139 | |||||||||||
Securities purchased but not yet received | 112,628 | 101,375 | 11.1 | % | 398 | |||||||||||
Accrued expenses and other liabilities | 23,130 | 23,912 | -3.3 | % | 23,682 | |||||||||||
Total liabilities | 6,172,534 | 5,819,361 | 6.1 | % | 5,944,219 | |||||||||||
Preferred Equity | 68,000 | 68,000 | 0.0 | % | 68,000 | |||||||||||
Common Equity: | ||||||||||||||||
| Common stock | 25,739 | 25,732 | 0.0 | % | 25,739 | |||||||||||
| Additional paid-in capital | 212,784 | 212,056 | 0.3 | % | 212,625 | |||||||||||
| Legal surplus | 45,471 | 42,140 | 7.9 | % | 43,016 | |||||||||||
| Retained earnings | 71,353 | 55,977 | 27.5 | % | 51,233 | |||||||||||
| Treasury stock, at cost | (17,164 | ) | (17,184 | ) | 0.1 | % | (17,109 | ) | ||||||||
| Accumulated other comprehensive loss | (86,832 | ) | (47,963 | ) | -81.0 | % | (122,187 | ) | ||||||||
Total common equity | 251,351 | 270,758 | -7.2 | % | 193,317 | |||||||||||
Stockholders’ equity | 319,351 | 338,758 | -5.7 | % | 261,317 | |||||||||||
Total liabilities and stockholders’ equity | $ | 6,491,885 | $ | 6,158,119 | 5.4 | % | $ | 6,205,536 | ||||||||
CAPITAL RATIOS | ||||||||||||||||
| Leverage Capital Ratio | 6.71 | % | 6.67 | % | 0.6 | % | 6.38 | % | ||||||||
| Minimum Leverage Capital Ratio Required | 4.00 | % | 4.00 | % | 4.00 | % | ||||||||||
| Actual Tier 1 Capital | $ | 416,955 | $ | 407,984 | 2.2 | % | $ | 389,235 | ||||||||
| Minimum Tier 1 Capital Required | $ | 248,534 | $ | 244,590 | 1.6 | % | $ | 244,101 | ||||||||
| Tier 1 Risk-Based Capital Ratio | 16.41 | % | 17.02 | % | -3.6 | % | 17.11 | % | ||||||||
| Minimum Tier 1 Risk-Based Capital Ratio Required | 4.00 | % | 4.00 | % | 4.00 | % | ||||||||||
| Actual Tier 1 Risk-Based Capital | $ | 416,955 | $ | 407,984 | 2.2 | % | $ | 389,235 | ||||||||
| Minimum Tier 1 Risk-Based Capital Required | $ | 101,609 | $ | 95,864 | 6.0 | % | $ | 91,022 | ||||||||
| Total Risk-Based Capital Ratio | 17.01 | % | 17.49 | % | -2.7 | % | �� | 17.73 | % | |||||||
| Minimum Total Risk-Based Capital Ratio Required | 8.00 | % | 8.00 | % | 8.00 | % | ||||||||||
| Actual Total Risk-Based Capital | $ | 432,102 | $ | 419,075 | 3.1 | % | $ | 403,528 | ||||||||
| Minimum Total Risk-Based Capital Required | $ | 203,219 | $ | 191,728 | 6.0 | % | $ | 182,044 | ||||||||
| Tangible common equity to total assets | 3.84 | % | 4.36 | % | -11.9 | % | 3.08 | % | ||||||||
| Tangible common equity to risk-weighted assets | 9.82 | % | 11.21 | % | -12.5 | % | 8.41 | % | ||||||||
| Total equity to total assets | 4.92 | % | 5.50 | % | -10.5 | % | 4.21 | % | ||||||||
| Total equity to risk-weighted assets | 12.57 | % | 14.13 | % | -11.1 | % | 11.48 | % | ||||||||
SELECTED FINANCIAL DATA AT PERIOD-END | ||||||||||||||||
| Trust Assets Managed | $ | 1,617,855 | $ | 1,927,638 | -16.07 | % | $ | 1,706,286 | ||||||||
| Broker-Dealer Assets Gathered | 1,087,781 | 1,290,973 | -15.7 | % | 1,195,739 | |||||||||||
Total Assets Managed | 2,705,636 | 3,218,611 | -15.9 | % | 2,902,025 | |||||||||||
| Assets owned | 6,491,885 | 6,158,119 | 5.4 | % | 6,205,536 | |||||||||||
Total financial assets managed and owned | $ | 9,197,521 | $ | 9,376,730 | -1.9 | % | $ | 9,107,561 | ||||||||
Number of financial centers | 23 | 24 | -4.2 | % | 23 | |||||||||||
Page 4
| ORIENTAL FINANCIAL GROUP Financial Summary (NYSE: OFG) |
| QUARTER ENDED | ||||||||||||||||
| 31-Mar-09 | 31-Mar-08 | % | 31-Dec-08 | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||
Loan Production and Purchases Summary: | ||||||||||||||||
| Mortgage loans production | $ | 65,731 | $ | 44,578 | 47.5 | % | $ | 53,658 | ||||||||
| Mortgage loans purchased | 2,176 | 4,691 | -53.6 | % | 1,858 | |||||||||||
| Total mortgage | 67,907 | 49,269 | 37.8 | % | 55,516 | |||||||||||
| Commercial | 18,067 | 15,737 | 14.8 | % | 14,000 | |||||||||||
| Consumer | 1,305 | 1,233 | 5.8 | % | 814 | |||||||||||
| Total loan production and purchases | $ | 87,279 | $ | 66,239 | 31.8 | % | $ | 70,330 | ||||||||
CREDIT DATA | ||||||||||||||||
Net credit losses: | ||||||||||||||||
| Mortgage | $ | 1,396 | $ | 166 | 741.0 | % | $ | 850 | ||||||||
| Commercial | 598 | (13 | ) | 4700.0 | % | 225 | ||||||||||
| Consumer | 352 | 567 | -37.9 | % | 379 | |||||||||||
| Total net credit losses | $ | 2,346 | $ | 720 | 225.8 | % | $ | 1,454 | ||||||||
| Net credit losses to average loans outstanding | 0.78 | % | 0.24 | % | 225.0 | % | 0.47 | % | ||||||||
| AS OF | ||||||||||||||||
| 31-Mar-09 | 31-Mar-08 | % | 31-Dec-08 | |||||||||||||
| Allowance for loan losses | $ | 15,147 | $ | 11,092 | 36.60 | % | $ | 14,293 | ||||||||
| Allowance coverage ratios: | ||||||||||||||||
| Allowance for loan losses to total loans | 1.25 | % | 0.93 | % | 34.41 | % | 1.16 | % | ||||||||
| Allowance for loan losses to non-performing loans | 17.50 | % | 16.04 | % | 9.10 | % | 18.45 | % | ||||||||
| Allowance for loan losses to non-residential non-performing loans | 157.29 | % | 289.16 | % | -45.60 | % | 239.90 | % | ||||||||
| Non-performing assets summary: | ||||||||||||||||
| Mortgage | $ | 76,911 | $ | 65,332 | 17.70 | % | $ | 71,531 | ||||||||
| Commercial, mainly real estate | 8,847 | 2,754 | 221.20 | % | 5,186 | |||||||||||
| Consumer | 783 | 1,081 | -27.60 | % | 772 | |||||||||||
| Non-performing loans | 86,541 | 69,167 | 25.10 | % | 77,489 | |||||||||||
| Foreclosed properties | 9,681 | 4,119 | 135.00 | % | 9,162 | |||||||||||
| Non-performing assets | $ | 96,222 | $ | 73,286 | 31.30 | % | $ | 86,651 | ||||||||
| Non-performing loans to total loans | 7.13 | % | 5.78 | % | 23.40 | % | 6.28 | % | ||||||||
| Non-performing loans to total assets | 1.33 | % | 1.12 | % | 18.80 | % | 1.25 | % | ||||||||
| Non-performing assets to total assets | 1.48 | % | 1.19 | % | 24.40 | % | 1.40 | % | ||||||||
| Non-performing assets to total capital | 30.13 | % | 21.63 | % | 39.30 | % | 33.45 | % | ||||||||
Page 5