Santander Bancorp 8-K Other Events

Exhibit 99.2

SANTANDER BANCORP
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
AS OF SEPTEMBER 30, 2008 AND 2007 AND DECEMBER 31, 2007
(Dollars in thousands, except share data)

										Variance
	30-Sep-08			30-Sep-07			31-Dec-07			09/08-12/07
ASSETS
CASH AND CASH EQUIVALENTS:
Cash and due from banks	$	251,425		$	137,799		$	118,096			112.90	%
Interest-bearing deposits		861			1,117			1,167			-26.22	%
Federal funds sold and securities purchased under agreements to resell		151,371			130,195			82,434			83.63	%
Total cash and cash equivalents		403,657			269,111			201,697			100.13	%
INTEREST-BEARING DEPOSITS		6,305			1,620			5,439			15.92	%
TRADING SECURITIES, at fair value		70,208			58,101			68,500			2.49	%
INVESTMENT SECURITIES AVAILABLE FOR SALE, at fair value		765,938			1,412,983			1,268,198			-39.60	%
OTHER INVESTMENT SECURITIES, at amortized cost		54,882			48,809			64,559			-14.99	%
LOANS HELD FOR SALE, net		79,666			175,307			141,902			-43.86	%
LOANS, gross		6,348,700			6,869,496			6,936,430			-8.47	%
ALLOWANCE FOR LOAN LOSSES		(180,090	)		(144,544	)		(166,952	)		7.87	%
ACCRUED INTEREST RECEIVABLE		49,502			82,562			80,029			-38.14	%
PREMISES AND EQUIPMENT, net		20,579			52,597			29,523			-30.30	%
REAL ESTATE HELD FOR SALE		8,076			—			—			0.00	%
GOODWILL		121,482			113,995			121,482			0.00	%
INTANGIBLE ASSETS		29,940			40,581			30,203			-0.87	%
OTHER ASSETS		356,334			268,696			379,203			-6.03	%
	$	8,135,179		$	9,249,314		$	9,160,213			-11.19	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
DEPOSITS:
Non interest-bearing	$	721,713		$	643,680		$	755,457			-4.47	%
Interest-bearing		4,868,187			5,429,056			4,405,246			10.51	%
Total deposits		5,589,900			6,072,736			5,160,703			8.32	%
FEDERAL FUNDS PURCHASED AND OTHER BORROWINGS		1,000			75,220			707,110			-99.86	%
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE		375,000			733,306			635,597			-41.00	%
COMMERCIAL PAPER ISSUED		49,858			403,660			284,482			-82.47	%
FEDERAL HOME LOAN BANK ADVANCES		1,035,000			825,000			1,245,000			-16.87	%
TERM NOTES		19,816			42,493			19,371			2.30	%
SUBORDINATED CAPITAL NOTES		240,156			247,138			247,170			-2.84	%
ACCRUED INTEREST PAYABLE		44,863			77,952			77,356			-42.00	%
OTHER LIABILITIES		224,280			241,819			246,888			-9.16	%
		7,579,873			8,719,324			8,623,677			-12.10	%
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		316,412			308,171			308,373			2.61	%
Treasury stock at cost, 4,011,260 shares		(67,552	)		(67,552	)		(67,552	)		0.00	%
Accumulated other comprehensive loss, net of taxes		(23,710	)		(40,256	)		(24,478	)		-3.14	%
Retained earnings:
Reserve fund		139,250			137,511			139,250			0.00	%
Undivided profits		64,280			65,490			54,317			18.34	%
Total stockholders’ equity		555,306			529,990			536,536			3.50	%
	$	8,135,179		$	9,249,314		$	9,160,213			-11.19	%

SANTANDER BANCORP
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007

	For the nine months ended						For the three months ended
	September 30,			September 30,			September 30,			September 30,
(Dollars in thousands, except per share data)	2008			2007			2008			2007
INTEREST INCOME:
Loans	$	417,070		$	448,859			135,263		$	150,670
Investment securities		38,758			50,846			11,442			17,196
Interest-bearing deposits		750			2,974			174			715
Federal funds sold and securities purchased under agreements to resell		3,897			2,789			1,132			1,568
Total interest income		460,475			505,468			148,011			170,149
INTEREST EXPENSE:
Deposits		117,403			144,052			37,235			51,223
Securities sold under agreements to repurchase and other borrowings		65,047			115,862			15,240			38,882
Subordinated capital notes		9,974			11,917			3,130			4,005
Total interest expense		192,424			271,831			55,605			94,110
Net interest income		268,051			233,637			92,406			76,039
PROVISION FOR LOAN LOSSES		123,650			100,224			45,560			47,350
Net interest income after provision for loan losses		144,401			133,413			46,846			28,689
OTHER INCOME :
Bank service charges, fees and other		33,744			34,162			10,220			9,711
Broker-dealer, asset management and insurance fees		58,110			49,086			16,137			16,717
Gain on sale of securities, net		5,153			238			2,279			—
Gain on sale of loans		3,004			5,121			737			782
Other income (loss)		19,756			7,851			7,040			3,283
Total other income		119,767			96,458			36,413			30,493
OPERATING EXPENSES:
Salaries and employee benefits		92,883			97,249			31,372			31,347
Occupancy costs		20,631			17,686			7,409			6,198
Equipment expenses		3,340			3,379			1,087			1,139
EDP servicing, amortization and technical assistance		31,208			27,317			10,147			9,243
Communication expenses		7,724			8,157			2,544			2,706
Business promotion		5,438			12,338			1,652			4,338
Goodwill and other intangibles impairment charges		—			39,705			—			39,705
Provision for claim receivable		25,120			—			25,120			—
Other taxes		10,150			8,486			3,394			3,537
Other operating expenses		52,947			45,677			19,027			15,980
Total operating expenses		249,441			259,994			101,752			114,193
Income before provision for income tax		14,727			(30,123	)		(18,493	)		(55,011	)
PROVISION FOR INCOME TAX		(1,349	)		4,151			(10,331	)		(4,912	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	16,076		$	(34,274	)	$	(8,162	)	$	(50,099	)
EARNINGS PER COMMON SHARE	$	0.34		$	(0.73	)	$	(0.18	)	$	(1.07	)

SANTANDER BANCORP

SELECTED CONSOLIDATED FINANCIAL INFORMATION:

				For the Quarters Ended												Nine Month-Periods ended September 30,
	30-Sep			30-Sep			30-Jun			3Q08/3Q07			3Q08/2Q08
(DOLLARS IN THOUSANDS)	2008			2007			2008			Variation			Variation			2008			2007			Variation
Interest Income	$	148,011		$	170,149		$	153,436			-13.0	%		-3.5	%	$	460,475		$	505,468			-8.9	%
Tax equivalent adjustment		1,430			1,713			998			-16.5	%		43.3	%		3,904			5,994			-34.9	%
Interest income on a tax equivalent basis		149,441			171,862			154,434			-13.0	%		-3.2	%		464,379			511,462			-9.2	%
Interest expense		55,605			94,110			62,391			-40.9	%		-10.9	%		192,424			271,831			-29.2	%
Net interest income on a tax equivalent basis		93,836			77,752			92,043			20.7	%		1.9	%		271,955			239,631			13.5	%
Provision for loan losses		45,560			47,350			38,515			-3.8	%		18.3	%		123,650			100,224			23.4	%
Net interest income on a tax equivalent basis after provision		48,276			30,402			53,528			58.8	%		-9.8	%		148,305			139,407			6.4	%
Other operating income		33,397			29,711			30,167			12.4	%		10.7	%		111,610			91,099			22.5	%
Gain on sale of securities		2,279			—			—			N/A			N/A			5,153			238			2065.1	%
Gain on sale of loans		737			782			829			N/A			-11.1	%		3,004			5,121			N/A
Goodwill and other intangibles impairment charges		—			39,705			—			N/A			N/A			—			39,705			N/A
Provision for claims receivable		25,120			—			—			N/A			N/A			25,120			—			N/A
Other operating expenses		76,632			74,488			76,245			-10.9	%		33.5	%		249,441			220,289			-4.1	%
Income on a tax equivalent basis before income taxes		(17,063	)		(53,298	)		8,279			-68.0	%		-306.1	%		18,631			(24,129	)		-177.2	%
Provision for income taxes		(10,331	)		(4,912	)		765			110.3	%		-1450.5	%		(1,349	)		4,151			-132.5	%
Tax equivalent adjustment		(1,430	)		(1,713	)		(998	)		-16.5	%		43.3	%		(3,904	)		(5,994	)		-34.9	%
NET INCOME	$	(8,162	)	$	(50,099	)	$	6,516			-83.7	%		-225.3	%	$	16,076		$	(34,274	)		-146.9	%
SELECTED RATIOS:
Per share data (1):
Earnings per common share	$	(0.18	)	$	(1.07	)	$	0.14								$	0.34		$	(0.73	)
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		$	0.10								$	0.20		$	0.48

(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

	YTD			QTD			QTD			YTD			QTD
	30-Sep			30-Sep			30-Jun			30-Sep			30-Sep
SELECTED RATIOS	2008			2008			2008			2007			2007
Net interest margin (1)		4.40	%		4.76	%		4.34	%		3.76	%		3.56	%
Return on average assets (2)		0.24	%		-0.38	%		0.28	%		-0.50	%		-2.14	%
Return on average common equity (2)		3.80	%		-5.71	%		4.58	%		-7.85	%		-34.58	%
Efficiency Ratio (1,3)		59.21	%		59.00	%		65.55	%		65.59	%		68.81	%
Non-interest income to revenues		20.64	%		19.74	%		16.81	%		16.02	%		15.20	%
Capital:
Total capital to risk-adjusted assets		—			11.84	%		11.18	%		—			10.69	%
Tier I capital to risk-adjusted assets		—			8.65	%		8.08	%		—			7.61	%
Leverage ratio		—			6.05	%		5.68	%		—			5.44	%
Non-performing loans to total loans		—			3.26	%		4.09	%		—			2.80	%
Non-performing loans plus accruing loans past-due 90 days or more to loans		—			3.47	%		4.26	%		—			2.90	%
Allowance for loan losses to non-performing loans		—			85.91	%		67.11	%		—			73.33	%
Allowance for loans losses to period-end loans		—			2.80	%		2.74	%		—			2.05	%

OTHER SELECTED FINANCIAL DATA	9/30/2008		9/30/2007		12/31/2007
	(dollars in millions)
Customer Financial Assets Under Control:
Bank deposits (excluding brokered deposits)	$	4,493.0	$	4,516.0	$	3,705.0
Broker-dealer customer accounts		5,529.0		5,959.0		5,855.0
Mutual fund and assets managed		3,256.0		3,152.0		3,066.0
Trust, institutional and private accounts assets under management		679.0		617.0		637.0
Total	$	13,957.0	$	14,244.0	$	13,263.0

(1)	On a tax-equivalent basis.
(2)	Ratios for the quarters are annualized.
(3)	Operating expenses, excluding goodwill and other intangible impairment charges for 4Q07 and provision for claim receivable for 3Q08, divided by net interest income, on a tax equivalent basis, plus other income, excluding gain on sale of securities, gain on equity security and extinguishment of debts and derivatives. Also excluding for 4Q07 gain on sale of POS and TRUST.