OFG Bancorp (OFG) 8-K Oriental Financial Group Fourth Quarter & 2011 Results

Exhibit 99

Oriental Financial Group Fourth Quarter & 2011 Results

SAN JUAN, Puerto Rico, January 30, 2012 – Oriental Financial Group Inc. (NYSE: OFG) today announced results for the fourth quarter and year ended December 31, 2011.

“We achieved major progress in 2011 executing on our strategies, growing our franchise value and returning capital to investors,” said José Rafael Fernández, President, Chief Executive Officer and Vice- Chairman of the Board. “We are entering 2012 with increasing momentum in our ability to expand quality credit and deposit relationships, as well as continuing to build our reputation as a solid commercial lender.

“We are also selectively reducing our wholesale funding and generating more interest income from loans. The 2010 Eurobank acquisition is becoming more accretive than originally expected. This should continue to benefit Oriental in upcoming quarters as well.

“During the fourth quarter, we reduced and renewed certain repos in a manner that should positively impact results in 2012 and beyond. We also recorded a charge on a CDO sold in January. On a pre-tax operating income basis, we had a solidly profitable fourth quarter and an excellent year.

“The steps we have taken are expected to enhance Oriental’s plans to grow our banking capabilities, fortify our already strong capital position, and further improve performance.”

2011 Financial Summary

• Income available to common shareholders of $29.6 million, or $ 0.67 per diluted share, compared to loss of $18.2 million, or ($0.50) per share, in 2010.

• Pre-tax operating income of $48.6 million increased 22.5% from $39.7 million in 2010.

• Strong growth in core lending, banking and wealth management operations, including a more than 38% increase in commercial loan production.

• Book value per share at December 31, 2011 of $15.22, up 6.2% from a year ago and 1.5% from September 30, 2011.

• Due to the Company’s stock repurchase program, common shares outstanding at December 31, 2011 of 41.2 million were reduced 11.0% from a year ago and 6.3% from September 30, 2011.

• Cash dividends per common share of $0.21 for the year, up 23.5% from 2010.

• Net credit losses of only 0.81% of average loans outstanding, while the allowance for loan losses increased 17.8%.

4Q11 Financial Summary

• Loss to common shareholders of $13.1 million, or ($0.31) per share, which includes an income tax benefit of $4.8 million. This compares to income of $3.9 million, or $0.08 per share, in the year ago quarter, and income of $15.6 million, or $0.35 per share, in the quarter ended September 30, 2011.

• Results reflected the following charges that are not considered part of Oriental’s pre-tax operating income: (i) a $15.0 million other than temporary impairment (OTTI) charge on the aforementioned collateralized debt obligation (CDO); (ii) a $2.4 million write-down of interest receivable on delinquent residential mortgage loans; and (iii) a $2.4 million write-down on foreclosed properties and other non-performing real estate-related assets, most of which were acquired as part of the FDIC assisted Eurobank acquisition.

• Oriental sold the aforementioned CDO in January 2012 for $10.5 million. The security, which was no longer consistent with the Company’s investment strategy, had experienced market deterioration in recent months. At September 30, 2011, it had an unrealized loss of approximately $10.0 million.

• Pre-tax operating income of $6.1 million. This compares to a loss of $0.6 million in the year ago quarter and income of $11.5 million in the third quarter of 2011. Compared to the preceding quarter, the fourth quarter of 2011 included $6.2 million in additional premium amortization on mortgage backed securities (MBS), partially offset by continued growth in core lending, banking and wealth management activities.

4Q11 Income Statement Analysis

• Interest income from loans of $39.4 million increased 11.3% from the third quarter. Growth was due to continued improved performance of covered loans (the former Eurobank loans) and growth of Oriental’s non-covered commercial, auto leasing and consumer loan portfolio.

• Interest income from investment securities of $25.9 million declined 28.5% from the third quarter. This primarily reflected increased premium amortization, based on an increase in repayments as a result of the current interest rate environment. Other factors were lower balances and yields.

• Total interest expense of $37.4 million declined 4.3% from the third quarter. This was due to reduced cost of deposits (both retail and wholesale) and lower cost and lower balances of wholesale funding.

• Total banking and wealth management revenues of $12.4 million increased 9.8% from the third quarter. Wealth management revenues grew 10.0% due to increased brokerage and trust business. Assets under management of $4.1 billion at December 31, 2011 were up 4.0% from September 30, 2011, including a 7.5% increase in brokerage account assets. Banking service revenues increased 14.6% due to the use of more commercial products and services.

• Non-interest expenses of $30.4 million were flat with the third quarter due to effective cost controls.

Partial Pay Down of Repurchase Agreements

• In December 2011, $600 million in repurchase agreement (repo) funding with an average cost of 4.23% matured. Utilizing cash on hand and proceeds from the sale of approximately $77 million of mortgage backed securities, half of the repos were paid off. The remaining balance was renewed for an average period of approximately three and a half years at an effective fixed rate of 2.36%.

• These transactions enabled Oriental to eliminate $300 million in wholesale funding, reduce cost of funds on an additional $300 million of borrowings, and deploy cash at a significantly higher return – all of which is expected to generate approximately $13 million more in net interest income on an annualized basis. Oriental reduced repo funding by a total of $400 million in 2011, including the early extinguishment of a $100 million repo in the third quarter.

December 31, 2011 Balance Sheet Analysis

• Cash and cash equivalents (including securities purchased under agreements to resell) of $605.5 million declined $76.9 million from September 30, 2011, reflecting the aforementioned repo pay down, partially offset by repayments on MBS.

• Total investments of $3.9 billion declined 5.4% from September 30, 2011, primarily reflecting the aforementioned pre-payments on MBS and sale of securities.

• Total non-covered loans of approximately $1.2 billion increased 1.2% from September 30, 2011. Growth of commercial, leasing and consumer loans more than offset the reduction of residential mortgage loans. Covered loans of $533.5 million declined 5.0% from September 30, 2011 as they continue to pay down.

• Loan production in the strategically significant commercial category totaled $47.5 million, up 58.0% from the third quarter. For the year, commercial loan production increased 38.3%, to $139.8 million.

• Retail deposits of $2.0 billion remained approximately level compared to September 30, 2011 as cost of those deposits dropped to 1.66% from 1.79%. For the year, interest-bearing savings and demand deposits increased 2.2%, while cost of retail deposits dropped to 1.81% in 2011 from 2.23% in 2010.

• Stockholders’ equity of $695.6 million declined 4.4% from September 30, 2011, primarily due to stock repurchases. Book value per share, however, increased to $15.22 as of December 31, 2011 from $14.99 as of September 30, 2011.

Other 4Q11 Highlights

• Credit Quality: The allowance of $37.0 million increased 3.2%, equal to 3.06% of total non-covered loans and leases versus 3.00% at September 30, 2011. Net credit losses of $2.7 million resulted in a total of $9.6 million for the year. Non-performing assets increased less than 1.0% from September 30, 2011.

• Stock Repurchases: As part of its authorization to repurchase $70 million in shares of its common stock in the open market, Oriental bought approximately 2.8 million shares, at an average price of $10.57 per share, during the quarter ended December 31, 2011. Under the current authorization, Oriental can buy back approximately $40 million more in shares. For all of 2011, Oriental bought approximately 5.2 million shares at an average price of $11.28 per share.

• Capital: Oriental maintains regulatory capital ratios well above the requirements for a well-capitalized institution. At December 31, 2011, the Leverage Capital Ratio was 9.65%, Tier-1 Risk-Based Capital Ratio was 31.56%, and Total Risk-Based Capital Ratio was 32.84%.

Conference Call

A conference call to discuss Oriental’s results, outlook and related matters will be held Tuesday, January 31, 2012, at 8:30 AM Eastern Time / 9:30 AM Puerto Rico Time. The call will be accessible live via a webcast on Oriental’s Investor Relations website atwww.orientalfg.com. A webcast replay will be available shortly thereafter. Access the webcast link in advance to download any necessary software.

About Oriental Financial Group

Oriental Financial Group Inc. is a diversified financial holding company that operates under U.S. and Puerto Rico banking laws and regulations, principally through its two subsidiaries, Oriental Bank and Trust and Oriental Financial Services. Now in its 48^th year in business, Oriental provides a full range of commercial, consumer and mortgage 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 atwww.orientalfg.com.

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, less 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.

Forward-Looking Statements

The information included in this document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in forward-looking statements. Factors that might cause such a difference include, but are not limited to (i) the rate of declining growth in the economy and employment levels, as well as general business and economic conditions; (ii) changes in interest rates, as well as the magnitude of such changes; (iii) the fiscal and monetary policies of the federal government and its agencies; (iv) changes in federal bank regulatory and supervisory policies, including required levels of capital; (v) the relative strength or weakness of the consumer and commercial credit sectors and of the real estate market in Puerto Rico; (vi) the performance of the stock and bond markets; (vii) competition in the financial services industry; (viii) possible legislative, tax or regulatory changes; and (ix) difficulties in combining the operations of any acquired entity. For a discussion of such factors and certain risks and uncertainties to which Oriental is subject, see Oriental’s annual report on Form 10-K for the year ended December 31, 2010, as well as its other filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, Oriental assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

# # #

Contacts:

Puerto Rico:Marilyn Santiago (msantiago@OrientalFG.com), Oriental Financial Group Inc., (787) 993-4648

U.S.:Steven Anreder (steven.anreder@anreder.com) and Gary Fishman (gary.fishman@anreder.com), Anreder & Company, (212) 532-3232

ORIENTAL FINANCIAL GROUP

Financial Summary

(NYSE: OFG)

SUMMARY OF OPERATIONS(Dollars in thousands):

	QUARTER ENDED												YEAR TO DATE
	31-Dec-11			31-Dec-10			%			30-Sep-11			31-Dec-11			31-Dec-10			%
Interest Income:
Loans
Loans not covered under shared-loss agreements with the FDIC	$	17,239		$	18,160			-5.1	%	$	17,161		$	68,333		$	71,310			-4.2	%
Loans covered under shared-loss agreements with the FDIC		22,158			15,926			39.1	%		18,222			67,665			44,158			53.2	%
Total interest income from loans		39,397			34,086			15.6	%		35,383			135,998			115,468			17.8	%
Mortgage-backed securities		23,649			35,977			-34.3	%		33,515			151,924			161,518			-5.9	%
Investment securities		1,897			2,205			-14.0	%		2,366			8,000			26,418			-69.7	%
Short term investments		314			134			134.3	%		272			1,106			397			178.6	%
Total interest income		65,257			72,402			-9.9	%		71,536			297,028			303,801			-2.2	%
Interest Expense:
Deposits		10,519			12,673			-17.0	%		11,413			45,645			48,603			-6.1	%
Securities sold under agreements to repurchase		22,402			24,709			-9.3	%		23,206			93,279			100,609			-7.3	%
Advances from FHLB and other borrowings		3,116			3,101			0.5	%		3,121			12,347			12,248			0.8	%
FDIC-guaranteed term notes		1,021			1,021			0.0	%		1,021			4,084			4,084			0.0	%
Note payable to the FDIC		—			—			0.0	%		—			—			1,887			-100.0	%
Subordinated capital notes		316			308			2.6	%		305			1,231			1,238			-0.6	%
Total interest expense		37,374			41,812			-10.6	%		39,066			156,586			168,669			-7.2	%
Net interest income		27,883			30,590			-8.8	%		32,470			140,442			135,132			3.9	%
Provision for non-covered loan and lease losses		3,800			3,700			2.7	%		3,800			15,200			15,914			-4.5	%
Provision for (recapture of) covered loan and lease losses, net		—			6,282			-100.0	%		(1,936	)		(1,387	)		6,282			-122.1	%
Total provision for loan and lease losses, net		3,800			9,982			-61.9	%		1,864			13,813			22,196			-37.8	%
Net interest income after provision for loan and lease losses		24,083			20,608			16.9	%		30,606			126,629			112,936			12.1	%
Non-Interest Income (Loss):
Wealth management revenues		5,927			4,717			25.7	%		5,387			20,571			17,967			14.5	%
Banking service revenues		3,648			3,756			-2.9	%		3,182			13,788			11,797			16.9	%
Mortgage banking activities		2,859			1,999			43.0	%		2,758			9,876			9,554			3.4	%
Total banking and wealth management revenues		12,434			10,472			18.7	%		11,327			44,235			39,318			12.5	%
Total loss on other-than-temporarily impaired securities		(15,018	)		—			-100.0	%		—			(15,018	)		(39,674	)		62.1	%
Portion of loss on securities recognized in other comprehensive income		—			—			0.0	%		—			—			22,508			-100.0	%
Other-than-temporary impairments on securities		(15,018	)		—			-100.0	%		—			(15,018	)		(17,166	)		12.5	%
Net accretion (amortization) of FDIC loss-share indemnification asset		(3,189	)		1,416			-325.2	%		(2,422	)		(3,379	)		4,330			-178.0	%
Fair value adjustment on FDIC equity appreciation instrument		—			—			0.0	%		—			—			909			-100.0	%
Net gain (loss) on:
Sales of securities		4,895			(22,775	)		121.5	%		13,971			27,996			15,032			86.2	%
Derivatives		(4,851	)		22,953			-121.1	%		(709	)		(13,220	)		(36,824	)		64.1	%
Trading securities		8			21			-61.9	%		14			(15	)		23			-165.2	%
Foreclosed real estate		(1,383	)		(241	)		-473.9	%		(199	)		(1,717	)		(524	)		-227.7	%
Early extinguishment of repurchase agreement		—			—			0.0	%		(4,790	)		(4,790	)		—			-100.0	%
Other		(3,251	)		53			-6234.0	%		(14	)		(3,103	)		99			-3234.3	%
Total non-interest income (loss), net		(10,355	)		11,899			-187.0	%		17,178			30,989			5,197			496.3	%
Non-Interest Expenses:
Compensation and employee benefits		11,041			11,354			-2.8	%		11,593			45,552			41,723			9.2	%
Professional and service fees		5,236			4,939			6.0	%		5,309			21,742			16,491			31.8	%
Occupancy and equipment		4,419			5,073			-12.9	%		4,369			17,407			18,556			-6.2	%
Insurance		1,709			1,788			-4.4	%		1,302			6,642			7,006			-5.2	%
Electronic banking charges		1,724			1,392			23.9	%		1,375			5,709			4,504			26.8	%
Taxes, other than payroll and income taxes		1,299			1,348			-3.6	%		1,184			4,721			5,106			-7.5	%
Advertising, business promotion, and strategic initiatives		1,589			1,639			-3.1	%		1,686			5,975			4,978			20.0	%
Loan servicing and clearing expenses		907			512			77.1	%		975			3,979			3,051			30.4	%
Foreclosure and repossession expenses		633			1,311			-51.7	%		819			2,936			2,830			3.7	%
Communication		411			656			-37.3	%		391			1,623			2,561			-36.6	%
Director and investor relations		328			365			-10.1	%		352			1,305			1,463			-10.8	%
Printing, postage, stationery and supplies		327			393			-16.8	%		292			1,264			1,188			6.4	%
Other		785			879			-10.7	%		769			3,447			3,141			9.7	%
Total non-interest expenses		30,408			31,649			-3.9	%		30,416			122,302			112,598			8.6	%
Income (loss) before income taxes		(16,680	)		858			-2044.1	%		17,368			35,316			5,535			538.0	%
Income tax expense (benefit)		(4,794	)		(4,216	)		-13.7	%		580			866			(4,298	)		120.1	%
Net income (loss)		(11,886	)		5,074			-334.3	%		16,788			34,450			9,833			250.4	%
Less: Dividends on preferred stock		(1,200	)		(1,200	)		0.0	%		(1,201	)		(4,802	)		(5,334	)		10.0	%
Less: Deemed dividend on preferred stock beneficial conversion feature		—			—			0.0	%		—			—			(22,711	)		100.0	%
Income available (loss) to common shareholders	$	(13,086	)	$	3,874			-437.8	%	$	15,587		$	29,648		$	(18,212	)		262.8	%

ORIENTAL FINANCIAL GROUP

Financial Summary

(NYSE: OFG)

	QUARTER ENDED												YEAR TO DATE
	31-Dec-11			31-Dec-10			%			30-Sep-11			31-Dec-11			31-Dec-10			%
(Dollars in thousands, except per share data)
PRE-TAX OPERATING INCOME
Net interest income	$	27,883		$	30,590			-8.8	%	$	32,470		$	140,442		$	135,132			3.9	%
Provision for non-covered loan and lease losses		(3,800	)		(3,700	)		-2.7	%		(3,800	)		(15,200	)		(15,914	)		4.5	%
Recapture of (provision for) covered loan and lease losses, net		—			(6,282	)		100.0	%		1,936			1,387			(6,282	)		122.1	%
Core non-interest income:
Wealth management revenues		5,927			4,717			25.7	%		5,387			20,571			17,967			14.5	%
Banking service revenues		3,648			3,756			-2.9	%		3,182			13,788			11,797			16.9	%
Mortgage banking activities		2,859			1,999			43.0	%		2,758			9,876			9,554			3.4	%
Total core non-interest income		12,434			10,472			18.7	%		11,327			44,235			39,318			12.5	%
Non-interest expenses		(30,408	)		(31,649	)		3.9	%		(30,416	)		(122,302	)		(112,598	)		-8.6	%
Total Pre-tax operating income	$	6,109		$	(569	)		1173.6	%	$	11,517		$	48,562		$	39,656			22.5	%
INCOME (LOSS) PER COMMON SHARE
Basic	$	(0.31	)	$	0.08			-467.7	%	$	0.35		$	0.67		$	(0.50	)		234.6	%
Diluted	$	(0.31	)	$	0.08			-467.7	%	$	0.35		$	0.67		$	(0.50	)		232.0	%
COMMON STOCK DATA
Average common shares outstanding and equivalents		42,668			46,433			-8.1	%		44,105			44,524			36,810			21.0	%
Cash dividends per share of common stock	$	0.06		$	0.05			19.9	%	$	0.05		$	0.21		$	0.17			23.5	%
Cash dividends declared on common shares	$	2,476		$	2,320			6.7	%	$	2,202		$	9,153		$	6,820			34.2	%
Pay-out ratio		-19.58	%		60.02	%		-132.6	%		14.16	%		31.54	%		-33.71	%		193.6	%
SELECTED FINANCIAL DATA
PERFORMANCE RATIOS:
Return on average assets		-0.68	%		0.28	%		-343.8	%		0.95	%		0.48	%		0.14	%		244.9	%
Return on average common equity		-7.98	%		2.35	%		-439.9	%		9.41	%		4.50	%		-3.63	%		224.0	%
Equity-to-assets ratio		10.39	%		10.02	%		3.7	%		10.36	%		10.39	%		10.02	%		3.7	%
Efficiency ratio		75.42	%		77.08	%		-2.1	%		69.45	%		66.22	%		64.54	%		2.6	%
Expense ratio		1.13	%		1.32	%		-13.9	%		1.19	%		1.21	%		1.14	%		5.7	%
TAX EQUIVALENT SPREAD
Interest-earning assets		4.11	%		4.50	%		-8.6	%		4.46	%		4.60	%		4.74	%		-3.0	%
Tax equivalent adjustment		0.81	%		1.46	%		-44.5	%		0.54	%		0.82	%		1.54	%		-46.8	%
Interest-earning assets - tax equivalent		4.92	%		5.96	%		-17.4	%		5.00	%		5.42	%		6.28	%		-13.7	%
Interest-bearing liabilities		2.43	%		2.55	%		-4.8	%		2.49	%		2.48	%		2.57	%		-3.5	%
Tax equivalent interest rate spread		2.50	%		3.41	%		-26.8	%		2.51	%		2.94	%		3.71	%		-20.8	%
Tax equivalent interest rate margin		2.56	%		3.36	%		-23.8	%		2.57	%		2.99	%		3.65	%		-18.1	%
NORMAL SPREAD
Investments		2.23	%		3.35	%		-33.3	%		3.08	%		3.41	%		3.96	%		-13.9	%
Loans
Loans not covered under shared-loss agreements with the FDIC		5.75	%		6.27	%		-8.3	%		5.80	%		5.77	%		6.14	%		-6.0	%
Loans covered under shared-loss agreements with the FDIC		17.12	%		9.07	%		88.7	%		13.73	%		12.12	%		8.93	%		35.7	%
		9.18	%		7.32	%		25.4	%		8.25	%		7.81	%		6.97	%		12.1	%
Interest-earning assets		4.11	%		4.50	%		-8.6	%		4.46	%		4.60	%		4.74	%		-3.0	%
Deposits
Retail deposits		1.66	%		2.11	%		-21.56	%		1.79	%		1.81	%		2.23	%		-18.83	%
Wholesale deposits		2.45	%		1.42	%		72.82	%		2.49	%		2.14	%		1.76	%		21.59	%
		1.79	%		1.95	%		-8.36	%		1.92	%		1.87	%		2.12	%		-11.79	%
Borrowings
Securities sold under agreements to repurchase		2.69	%		2.84	%		-5.4	%		2.72	%		2.73	%		2.84	%		-3.9	%
Advances from FHLB and other borrowings		3.83	%		3.78	%		1.3	%		3.80	%		3.83	%		3.77	%		1.6	%
FDIC-guaranteed term notes		3.88	%		3.88	%		-0.1	%		3.85	%		3.87	%		3.87	%		0.0	%
Purchase money note issued to the FDIC		—			—			—			—			—			0.73	%		-100.0	%
Subordinated capital notes		3.50	%		3.41	%		2.7	%		3.38	%		3.41	%		3.43	%		-0.6	%
		2.82	%		2.95	%		-4.2	%		2.85	%		2.86	%		2.81	%		1.8	%
Interest-bearing liabilities		2.43	%		2.55	%		-4.8	%		2.49	%		2.48	%		2.57	%		-3.5	%
Interest rate spread		1.69	%		1.95	%		-13.6	%		1.97	%		2.12	%		2.17	%		-2.3	%
Interest rate margin		1.76	%		1.90	%		-7.5	%		2.03	%		2.17	%		2.11	%		2.8	%
AVERAGE BALANCES
Investments	$	4,628,789		$	4,574,376			1.2	%	$	4,698,429		$	4,721,157		$	4,755,710			-0.7	%
Loans		1,717,081			1,861,734			-7.8	%		1,715,035			1,742,137			1,656,758			5.2	%
Interest-earning assets	$	6,345,870		$	6,436,110			-1.4	%	$	6,413,464		$	6,463,294		$	6,412,468			0.8	%
Deposits	$	2,354,569		$	2,603,713			-9.6	%	$	2,382,490		$	2,435,868		$	2,289,167			6.4	%
Borrowings		3,802,972			3,954,446			-3.8	%		3,881,440			3,882,101			4,272,056			-9.1	%
Interest-bearing liabilities	$	6,157,541		$	6,558,159			-6.1	%	$	6,263,930		$	6,317,969		$	6,561,223			-3.7	%

ORIENTAL FINANCIAL GROUP

Financial Summary

(NYSE: OFG)

	AS OF
	31-Dec-11			31-Dec-10			%			30-Sep-11
(Dollars in thousands)
BALANCE SHEET
Cash and cash equivalents	$	605,477		$	448,936			34.9	%	$	517,336
Securities purchased under agreements to resell		—			—			0.0	%		165,000
Investments:
Trading securities		180			1,330			-86.5	%		346
Investment securities available-for-sale, at fair value, with amortized cost of $2,873,682 (December 31, 2010 - $3,661,146, September 30, 2011 - $3,154,057)
FNMA and FHLMC certificates		2,676,781			3,282,189			-18.4	%		2,834,979
Obligations of US Government sponsored agencies		—			3,000			-100.0	%		—
CMO’s issued by US Government sponsored agencies		130,045			177,805			-26.9	%		232,130
GNMA certificates		28,336			127,714			-77.8	%		31,367
Structured credit investments		37,288			41,693			-10.6	%		40,976
Obligations of Puerto Rico Government and political subdivisions		81,482			67,663			20.4	%		81,354
Other debt securities		5,980			—			100.0	%		6,166
Total investment securities available-for-sale		2,959,912			3,700,064			-20.0	%		3,226,972
FNMA and FHLMC certificates held-to-maturity, at amortized cost, with fair value of $904,556 (December 31, 2010 - $675,721, September 30, 2011 - $854,633)		884,026			689,917			28.1	%		837,920
Federal Home Loan Bank (FHLB) stock, at cost		23,779			22,496			5.7	%		23,779
Other investments		73			150			-51.3	%		75
Total investments		3,867,970			4,413,957			-12.4	%		4,089,092
Loans:
Loans not covered under shared-loss agreements with the FDIC:
Mortgage		819,651			872,482			-6.1	%		837,164
Commercial		301,573			234,992			28.3	%		270,633
Leasing		25,768			10,257			151.2	%		21,283
Consumer		41,301			35,942			14.9	%		37,241
Total loans receivable not covered under shared-loss agreements with the FDIC, gross		1,188,293			1,153,673			3.0	%		1,166,321
Less: Deferred loan fees, net		(4,545	)		(4,354	)		-4.4	%		(4,683	)
Total loans receivable not covered under shared-loss agreements with the FDIC		1,183,748			1,149,319			3.0	%		1,161,638
Allowance for loan and lease losses on non-covered loans		(37,010	)		(31,430	)		-17.8	%		(35,869	)
Loans receivable, net		1,146,738			1,117,889			2.6	%		1,125,769
Mortgage loans held for sale		26,939			33,979			-20.7	%		33,619
Total loans not covered under shared-loss agreements with the FDIC, net		1,173,677			1,151,868			1.9	%		1,159,388
Loans covered under shared-loss agreements with the FDIC:
Loans secured by 1-4 family residential properties		140,824			166,865			-15.6	%		143,861
Construction and development secured by 1-4 family residential properties		16,976			17,253			-1.6	%		16,044
Commercial and other construction		325,832			388,240			-16.1	%		341,388
Leasing		36,122			79,093			-54.3	%		45,598
Consumer		13,778			18,546			-25.7	%		14,839
Loans covered under shared-loss agreements with the FDIC		533,532			669,997			-20.4	%		561,730
Allowance for loan and lease losses on covered loans		(37,256	)		(49,286	)		24.4	%		(37,240	)
Loans covered under shared-loss agreements with the FDIC, net		496,276			620,711			-20.0	%		524,490
Total loans, net		1,669,953			1,772,579			-5.8	%		1,683,878
FDIC shared-loss indemnification asset		392,367			473,629			-17.2	%		392,096
Foreclosed real estate covered under shared-loss agreements with the FDIC		13,867			14,871			-6.8	%		16,319
Foreclosed real estate not covered under shared-loss agreements with the FDIC		13,812			11,969			15.4	%		14,675
Other repossessed assets covered under shared-loss agreements with the FDIC		708			2,350			-69.9	%		1,824
Core deposit intangible		1,185			1,328			-10.8	%		1,221
Accrued interest receivable		20,182			28,716			-29.7	%		24,246
Deferred tax asset, net		32,023			30,732			4.2	%		33,102
Prepaid FDIC Insurance		11,599			16,796			-30.9	%		12,882
Premises and equipment, net		21,520			23,941			-10.1	%		22,498
Other prepaid expenses		6,498			7,858			-17.3	%		10,477
Servicing asset		10,454			9,695			7.8	%		10,014
Tax credits		1,303			3,432			-62.0	%		2,605
Debt issuance costs		1,067			2,299			-53.6	%		1,375
Goodwill		2,701			2,701			0.0	%		2,701
Investment in statutory trust		1,086			1,086			0.0	%		1,086
Derivative assets		9,317			28,315			-67.1	%		6,707
Accounts receivable and other assets		10,577			15,816			-33.1	%		14,154
Total assets	$	6,693,666		$	7,311,006			-8.4	%	$	7,023,288

ORIENTAL FINANCIAL GROUP

Financial Summary

(NYSE: OFG)

	AS OF
(Dollars in thousands)	31-Dec-11			31-Dec-10			%			30-Sep-11
Deposits:
Non-interest bearing demand deposits	$	190,001		$	170,705			11.3	%	$	181,711
Interest-bearing savings and demand deposits		1,041,529			1,019,539			2.2	%		1,054,226
Individual retirement accounts		361,411			361,972			-0.2	%		356,952
Retail certificates of deposit		378,146			477,180			-20.8	%		395,902
Total Retail Deposits		1,971,087			2,029,396			-2.9	%		1,988,791
Institutional deposits		168,301			280,617			-40.0	%		184,022
Brokered Deposits		255,879			278,875			-8.2	%		205,552
Total deposits		2,395,267			2,588,888			-7.5	%		2,378,365
Borrowings:
Short-term borrowings		39,920			42,460			-6.0	%		46,619
Securities sold under agreements to repurchase		3,056,238			3,456,781			-11.6	%		3,356,322
Advances from FHLB		281,753			281,753			0.0	%		281,753
FDIC-guaranteed term notes		105,834			105,834			0.0	%		105,112
Subordinated capital notes		36,083			36,083			0.0	%		36,083
Total borrowings		3,519,828			3,922,911			-10.3	%		3,825,889
Total interest-bearing liabilities		5,915,095			6,511,799			-9.2	%		6,204,254
FDIC net settlement payable		115			22,954			-99.5	%		41
Derivative liabilities		47,425			64			74001.6	%		48,146
Accrued expenses and other liabilities		35,476			43,858			-19.1	%		42,931
Total liabilities		5,998,111			6,578,675			-8.8	%		6,295,372
Preferred stock		68,000			68,000			0.0	%		68,000
Common stock		47,809			47,808			0.0	%		47,808
Additional paid-in capital		499,096			498,435			0.1	%		498,875
Legal surplus		50,178			46,331			8.3	%		51,274
Retained earnings		68,149			51,502			32.3	%		82,616
Treasury stock, at cost		(74,808	)		(16,732	)		-347.1	%		(45,376	)
Accumulated other comprehensive income, net		37,131			36,987			0.4	%		24,719
Total stockholders’ equity		695,555			732,331			-5.0	%		727,916
Total liabilities and stockholders’ equity	$	6,693,666		$	7,311,006			-8.4	%	$	7,023,288
SELECTED FINANCIAL DATA AT YEAR-END
Common shares outstanding at end of period		41,245			46,349			-11.0	%		44,015
Book value per common share	$	15.22		$	14.33			6.2	%	$	14.99
Tangible book value per common share	$	15.12		$	14.25			6.1	%	$	14.90
Trust assets managed	$	2,216,088		$	2,175,270			1.9	%	$	2,193,425
Broker-dealer assets gathered		1,926,148			1,695,635			13.6	%		1,791,408
Total assets managed	$	4,142,236		$	3,870,905			7.0	%	$	3,984,833

ORIENTAL FINANCIAL GROUP

Financial Summary

(NYSE: OFG)

	AS OF
	31-Dec-11			31-Dec-10			%			30-Sep-11
CAPITAL DATA
Leverage capital ratio		9.65	%		9.50	%		1.6	%		10.12	%
Leverage capital ratio required		4.00	%		4.00	%					4.00	%
Actual tier 1 capital	$	661,614		$	699,415			-5.4	%	$	705,939
Tier 1 capital required	$	274,231		$	294,472			-6.9	%	$	279,070
Excess over regulatory requirement	$	387,383		$	404,943			-4.3	%	$	426,869
Tier 1 risk-based capital ratio		31.56	%		31.04	%		1.7	%		31.47	%
Tier 1 risk-based capital ratio required		4.00	%		4.00	%					4.00	%
Actual tier 1 risk-based capital	$	661,614		$	699,415			-5.4	%	$	705,939
Tier 1 risk-based capital required	$	83,845		$	90,139			-7.0	%	$	89,742
Excess over regulatory requirement	$	577,769		$	609,276			-5.2	%	$	616,197
Risk-weighted assets	$	2,096,125		$	2,253,487			-7.0	%	$	2,243,558
Total risk-based capital ratio		32.84	%		32.32	%		1.6	%		32.74	%
Total risk-based capital ratio required		8.00	%		8.00	%					8.00	%
Actual total risk-based capital	$	688,415		$	728,241			-5.5	%	$	734,547
Total risk-based capital required	$	167,690		$	180,279			-7.0	%	$	179,485
Excess over regulatory requirement	$	520,725		$	547,962			-5.0	%	$	555,062
Risk-weighted assets	$	2,096,125		$	2,253,487			-7.0	%	$	2,243,558
Tangible common equity to total assets		9.32	%		9.03	%		3.2	%		9.34	%
Tangible common equity to total risk-weighted assets		29.75	%		29.30	%		1.5	%		29.24	%
Total equity to total assets		10.39	%		10.02	%		3.7	%		10.36	%
Total equity to risk-weighted assets		33.18	%		32.50	%		2.1	%		32.44	%
Tier 1 common equity to risk-weighted assets		28.32	%		28.02	%		1.1	%		28.43	%
Tier 1 common equity	$	593,614		$	631,415			-6.0	%	$	637,939

ORIENTAL FINANCIAL GROUP

Financial Summary

(NYSE: OFG)

	QUARTER ENDED												YEAR TO DATE
(Dollars in thousands)	31-Dec-11			31-Dec-10			%			30-Sep-11			31-Dec-11			31-Dec-10			%
Loan Production and Purchases Summary:
Mortgage loans production	$	47,584		$	50,726			-6.2	%	$	52,699		$	205,389		$	220,253			-6.7	%
Mortgage loans purchased		—			6,626			-100.0	%		—			7,395			24,925			-70.3	%
Total mortgage		47,584			57,352			-17.0	%		52,699			212,784			245,178			-13.2	%
Commercial		47,466			34,381			38.1	%		30,037			139,785			101,042			38.3	%
Leasing		5,522			5,242			5.3	%		5,582			21,646			11,633			86.1	%
Consumer		6,698			4,503			48.7	%		5,734			21,738			13,758			58.0	%
Total loan production and purchases	$	107,270		$	101,478			5.7	%	$	94,052		$	395,953		$	371,611			6.6	%
CREDIT DATA
Net credit losses, excluding loans covered under shared-loss agreements with the FDIC:
Mortgage	$	1,300		$	978			32.9	%	$	1,391		$	5,735		$	3,773			52.0	%
Commercial		976			488			100.0	%		385			2,345			2,753			-14.8	%
Consumer		367			445			-17.5	%		305			1,353			1,230			10.0	%
Leasing		16			—			100.0	%		80			186			—			100.0	%
Total net credit losses	$	2,659		$	1,911			39.1	%	$	2,161		$	9,619		$	7,756			24.0	%
Net credit losses to average loans outstanding		0.89	%		0.66	%		34.6	%		0.73	%		0.81	%		0.67	%		21.8	%

	AS OF
	31-Dec-11			31-Dec-10			%			30-Sep-11
Allowance for loan and lease losses on non-covered loans	$	37,010		$	31,430			17.8	%	$	35,869
Allowance coverage ratios:
Allowance for loan and lease losses to total loans (excluding loans covered under shared-loss agreements with the FDIC)		3.06	%		2.66	%		15.1	%		3.00	%
Allowance for loan and lease losses to non-performing loans		27.46	%		25.59	%		7.3	%		27.08	%
Non-performing assets summary (excluding assets covered under shared-loss agreements with the FDIC):
Mortgage	$	97,340		$	98,729			-1.4	%	$	94,520
Commercial		36,988			23,619			56.6	%		37,471
Consumer		334			421			-20.7	%		334
Leasing		102			35			191.4	%		119
Non-performing loans		134,764			122,804			9.7	%		132,444
Foreclosed properties		13,812			11,969			15.4	%		14,675
Non-performing assets	$	148,576		$	134,773			10.2	%	$	147,119
Non-performing loans to:
Total loans, excluding covered loans		11.38	%		10.68	%		6.6	%		11.40	%
Total assets, excluding covered assets		2.19	%		1.85	%		18.4	%		2.06	%
Total capital		19.38	%		16.77	%		15.6	%		18.19	%
Non-performing assets to total assets, excluding covered assets		2.42	%		2.03	%		19.2	%		2.28	%
Non-performing assets to total capital		21.36	%		18.40	%		16.1	%		20.21	%