Santander Bancorp 8-K Santander Bancorp Reports Earnings for the Second Quarter and First Semester of 2006

Exhibit 99.2

SANTANDER BANCORP
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
AS OF JUNE 30, 2006 AND 2005 AND DECEMBER 31, 2005
(Dollars in thousands, except share data)

ASSETS

										Variance
	30-Jun-06			30-Jun-05			31-Dec-05			06/06-12/05
CASH AND CASH EQUIVALENTS:
Cash and due from banks	$	188,544		$	198,086		$	136,731			37.89	%
Interest bearing deposits		583			52,520			8,833			-93.40	%
Federal funds sold and securities purchased under agreements to resell		72,542			398,630			92,429			-21.52	%
Total cash and cash equivalents		261,669			649,236			237,993			9.95	%
INTEREST BEARING DEPOSITS		51,702			100,000			101,034			-48.83	%
TRADING SECURITIES		46,682			50,000			37,679			23.89	%
INVESTMENT SECURITIES AVAILABLE FOR SALE, at fair value		1,550,841			1,443,424			1,559,681			-0.57	%
OTHER INVESTMENT SECURITIES, at amortized cost		42,835			37,500			41,862			2.32	%
LOANS HELD FOR SALE, net		302,496			278,314			213,102			41.95	%
LOANS, net		6,197,517			5,742,321			5,808,630			6.69	%
ALLOWANCE FOR LOAN LOSSES		(87,695	)		(65,623	)		(66,842	)		31.20	%
ACCRUED INTEREST RECEIVABLE		92,330			50,797			77,962			18.43	%
PREMISES AND EQUIPMENT, net		57,243			54,245			55,867			2.46	%
GOODWILL		144,715			34,791			34,791			315.96	%
INTANGIBLE ASSETS		47,861			9,283			10,092			374.25	%
OTHER ASSETS		221,265			127,793			160,097			38.21	%
	$	8,929,461		$	8,512,081		$	8,271,948			7.95	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
DEPOSITS:
Non-interest bearing	$	674,664		$	792,667		$	672,225			0.36	%
Interest bearing		4,295,278			4,750,517			4,552,425			-5.65	%
Total deposits		4,969,942			5,543,184			5,224,650			-4.88	%
FEDERAL FUNDS PURCHASED AND OTHER BORROWINGS		1,375,000			926,502			768,846			78.84	%
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE		973,032			876,532			947,767			2.67	%
COMMERCIAL PAPER ISSUED		437,132			264,592			334,319			30.75	%
TERM NOTES		40,877			39,282			40,215			1.65	%
CAPITAL NOTES		239,810			74,574			121,098			98.03	%
ACCRUED INTEREST PAYABLE		74,302			37,384			65,160			14.03	%
OTHER LIABILITIES		263,088			180,596			201,366			30.65	%
		8,373,183			7,942,646			7,703,421			8.69	%
STOCKHOLDERS’ EQUITY:
Series A Preferred stock, $25 par value; 10,000,000 shares authorized, none issued or outstanding		—			—			—			N/A
Common stock, $2.50 par value; 200,000,000 shares authorized; 50,650,364 shares issued; 46,639,104 shares outstanding		126,626			126,626			126,626			0.00	%
Capital paid in excess of par value		304,171			304,171			304,171			0.00	%
Treasury stock at cost, 4,011,260 shares		(67,552	)		(67,552	)		(67,552	)		0.00	%
Accumulated other comprehensive loss, net of taxes		(63,296	)		(21,350	)		(41,591	)		52.19	%
Retained earnings-
Reserve fund		133,759			126,820			133,759			0.00	%
Undivided profits		122,570			100,720			113,114			8.36	%
Total stockholders’ equity		556,278			569,435			568,527			-2.15	%
	$	8,929,461		$	8,512,081		$	8,271,948			7.95	%

SANTANDER BANCORP
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE SIX AND THREE MONTHS ENDED JUNE 30, 2006 AND 2005

(Dollars in thousands, except per share data)

	For the six months ended						For the three months ended
	June 30,			June 30,			June 30,			June 30,
	2006			2005			2006			2005
INTEREST INCOME:
Loans	$	250,437		$	162,809		$	138,359		$	85,436
Investment securities		37,052			38,414			18,784			15,958
Interest bearing deposits		1,921			1,547			962			1,336
Federal funds sold and securities purchased under agreements to resell		2,413			2,668			1,082			1,320
Total interest income		291,823			205,438			159,187			104,050
INTEREST EXPENSE:
Deposits		81,085			52,500			42,449			30,219
Securities sold under agreements to repurchase and other borrowings		65,623			41,269			37,376			18,871
Subordinated capital notes		3,267			1,299			853			698
Total interest expense		149,975			95,068			80,678			49,788
Net interest income		141,848			110,370			78,509			54,262
PROVISION FOR LOAN LOSSES		23,513			10,750			15,975			4,050
Net interest income after provision for loan losses		118,335			99,620			62,534			50,212
OTHER INCOME:
Bank service charges, fees and other		22,156			20,627			11,038			10,432
Broker/dealer, asset management and insurance fees		29,476			26,339			14,431			13,766
Gain on sale of securities, net		60			17,376			56			415
Loss on extinguishment of debt		—			(6,744	)		—			(17	)
Gain on sale of mortgage servicing rights		18			55			15			12
(Loss) gain on sale of loans		(3	)		7,207			(1	)		6,127
Other income (expense)		(812	)		6,712			(506	)		1,749
Total other income		50,895			71,572			25,033			32,484
OPERATING EXPENSES:
Salaries and employee benefits		56,115			48,289			29,559			24,121
Occupancy costs		10,734			8,388			6,085			4,364
Equipment expenses		2,334			1,800			1,294			884
EDP servicing, amortization and technical assistance		17,860			15,389			9,806			7,596
Communication expenses		4,985			4,196			2,667			2,180
Business promotion		5,743			5,042			3,162			2,680
Other taxes		5,079			4,188			2,703			2,086
Other operating expenses		26,047			22,754			13,908			10,769
Total operating expenses		128,897			110,046			69,184			54,680
Income before provision for income tax		40,333			61,146			18,383			28,016
PROVISION FOR INCOME TAX		15,950			15,599			7,355			8,383
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	24,383		$	45,547		$	11,028		$	19,633
EARNINGS PER COMMON SHARE	$	0.52		$	0.98		$	0.24		$	0.42

SANTANDER BANCORP

SELECTED CONSOLIDATED FINANCIAL INFORMATION:

(DOLLARS IN THOUSANDS)

	For the Quarters Ended														Six Month Periods Ended June 30,
	30-Jun			30-Jun		31-Mar			2Q06/2Q05			2Q06/1Q06
	2006			2005		2006			Variation			Variation			2006			2005		Variation
Interest Income	$	159,187		$	104,050	$	132,636			53.0	%		20.0	%	$	291,823		$	205,438		42.0	%
Tax equivalent adjustment		2,225			2,786		1,960			-20.1	%		13.5	%		4,185			7,321		-42.8	%
Interest income on a tax equivalent basis		161,412			106,836		134,596			51.1	%		19.9	%		296,008			212,759		39.1	%
Interest expense		80,678			49,788		69,298			62.0	%		16.4	%		149,975			95,068		57.8	%
Net interest income on a tax equivalent basis		80,734			57,048		65,298			41.5	%		23.6	%		146,033			117,691		24.1	%
Provision for loan losses		15,975			4,050		7,538			294.4	%		111.9	%		23,513			10,750		118.7	%
Net interest income on a tax equivalent basis after provision		64,759			52,998		57,760			22.2	%		12.1	%		122,520			106,941		14.6	%
Other operating income		24,978			25,942		25,860			-3.7	%		-3.4	%		50,838			46,989		8.2	%
Gain on sale of securities		56			415		4			-86.5	%		1300.0	%		60			17,376		99.7	%
(Loss) gain on sale of loans		(1	)		6,127		(2	)		-100.0	%		-50.0	%		(3	)		7,207		100.0	%
Other operating expenses		69,184			54,680		59,712			26.5	%		15.9	%		128,897			110,046		17.1	%
Income on a tax equivalent basis before income taxes		20,608			30,802		23,910			-33.1	%		-13.8	%		44,518			68,467		-35.0	%
Provision for income taxes		7,355			8,383		8,594			-12.3	%		-14.4	%		15,950			15,599		2.3	%
Tax equivalent adjustment		2,225			2,786		1,960			-20.1	%		13.5	%		4,185			7,321		-42.8	%
NET INCOME	$	11,028		$	19,633	$	13,356			-43.8	%		-17.4	%	$	24,383		$	45,547		-46.5	%
SELECTED RATIOS:
Per share data (1):
Earnings per common share	$	0.24		$	0.42	$	0.29								$	0.52		$	0.98
Average common shares outstanding		46,639,104			46,639,104		46,639,104									46,639,104			46,639,104
Common shares outstanding at end of period		46,639,104			46,639,104		46,639,104									46,639,104			46,639,104
Cash Dividends per Share	$	0.16		$	0.16	$	0.16								$	0.32		$	0.32

(1)	Per share data is based on the average number of shares outstanding during the period.
	Basic and diluted earnings per share are the same.

SANTANDER BANCORP

										2005
	YTD			QTD			QTD			YTD			QTD
	30-Jun			30-Jun			31-Mar			30-Jun			30-Jun
SELECTED RATIOS	2006			2006			2006			2005			2005
Net interest margin (1)		3.61	%		3.94	%		3.27	%		3.05	%		2.97	%
Return on average assets (2)		0.57	%		0.50	%		0.65	%		1.12	%		0.97	%
Return on average common equity (2)		8.92	%		7.83	%		10.07	%		15.29	%		12.54	%
Efficiency Ratio (1,3)		65.47	%		65.45	%		65.51	%		61.61	%		61.35	%
Non-interest income to revenues		14.85	%		13.59	%		16.32	%		25.84	%		23.79	%
Capital:
Total capital to risk-adjusted assets		—			11.25	%		10.62	%		—			11.21	%
Tier I capital to risk-adjusted assets		—			8.17	%		7.60	%		—			8.85	%
Leverage ratio		—			5.86	%		6.11	%		—			6.49	%
Non-performing loans to total loans		—			1.68	%		1.10	%		—			1.27	%
Non-performing loans plus accruing loans past-due 90 days or more to loans		—			1.82	%		1.60	%		—			1.33	%
Allowance for loan losses to non- performing loans		—			80.09	%		118.03	%		—			85.64	%
Allowance for loans losses to period- end loans		—			1.35	%		1.30	%		—			1.09	%

OTHER SELECTED FINANCIAL DATA	6/30/2006		6/30/2005		12/31/2005
	(dollars in millions)
Customer Financial Assets Under Control:
Bank deposits (excluding brokered deposits)	$	3,774.0	$	4,525.5	$	4,084.0
Broker-dealer customer accounts		4,853.0		4,865.2		4,923.0
Mutual fund and assets managed		2,745.0		2,835.9		2,795.0
Trust, institutional and private accounts assets under management		1,200.0		1,389.9		1,158.0
Total	$	12,572.0	$	13,616.5	$	12,960.0

(1)	On a tax-equivalent basis.
(2)	Ratios for the quarters are annualized.
(3)	Operating expenses divided by net interest income, on a tax equivalent basis, plus other income, excluding gain on sale of securities, loss on extinguishment of debt in 2005 and gain on sale of building for 1Q04.