[ORIENTAL FINANCIAL GROUP LOGO] PUERTO RICO CONTACT:
Edgar Palerm,
Oriental Financial Group
(787) 771-6836
U.S. CONTACT:
Steven Anreder and Gary Fishman,
Anreder & Company
(212) 532-3232
ORIENTAL FINANCIAL GROUP REPORTS RESULTS
FOR FISCAL QUARTER ENDED SEPTEMBER 30, 2005
SAN JUAN, Puerto Rico, October 26, 2005 - Oriental Financial Group Inc. (NYSE:
OFG) today announced results for the fiscal quarter ended September 30, 2005.
Net income available to common shareholders totaled $7.2 million, or $0.29 per
diluted share, a decline of 55.4% year over year, but an increase of 12.1%
sequentially. Book value at September 30, 2005 stood at $11.15 per share, an
increase of 10.6% year over year. "While we are in a difficult and challenging
interest rate environment, we remain solidly profitable," said Jose Rafael
Fernandez, President and CEO of Oriental. "Oriental continued to make progress
increasing loan production and non-interest income and reducing expenses, but
increasing short-term rates combined with the ongoing flattening yield curve
continued to affect results."
Commenting on the quarter, Mr. Fernandez noted, interest income from loans
increased 14.5%, on a 9.1% increase in the portfolio. Non-interest income from
financial and banking services rose 8.8% year over year and 12.2% on a
sequential quarter basis. Total loan production grew 23.2% from a year ago and
7.7% sequentially, and trust assets, broker-dealer assets and deposits were
higher year over year and from the preceding quarter. "Credit quality continues
to be excellent, with net charge offs a slight 0.27% of average loans
outstanding," Mr. Fernandez said. "Expenses increased a minor amount from a year
ago, but they declined $1.5 million from the prior three month period. We expect
further reductions moving forward."
Oriental is in the process of changing its fiscal year from one that begins July
1 to a calendar year beginning January 1. This change will result in a six-month
reporting period comprised of the quarter just ended on September 30, 2005 and
the quarter ending December 31, 2005.
INTEREST INCOME & EXPENSE
Interest income for the quarter was $50.8 million, an increase of 13.1% over a
year ago. Income from loans rose 14.5% over the September 2004 quarter due to
higher volume and rates, reflecting increased loan production, the retention of
more mortgage loans and increased variable rate loans. Income from securities
was up 12.4% over the September 2004 quarter, on a similar percentage increase
in volume. Interest expense was $33.5
Page 1 of 4
million, 57.3% higher than a year ago. The increase principally reflected a
70.5% rise in the cost of repurchase agreements, which have been impacted by the
higher Federal Funds Rate. As a result, net interest income totaled $17.3
million, a decline of 26.7% from the year ago, and the interest rate margin was
1.64%, versus 2.64% in the year ago quarter and 1.89% in the previous quarter.
NON-INTEREST INCOME
Financial service revenue at $3.9 million increased 6.1% over a year ago and
15.0% on a sequential quarter basis. Growth reflected increased securities
brokerage, insurance and personal trust business, in line with Oriental's
strategy for revitalizing financial service revenue. Bank service revenue was
$2.2 million, an increase of 13.7% year over year and up 7.5% on a sequential
quarter basis. Growth was due to increased deposit generation, the opening of
the Miramar branch (Oriental's 24th) in July, and ongoing strategies designed to
increase fee revenue.
During the quarter, Oriental announced an agreement with American Express
Company (NYSE: AXP) that made Oriental the only bank in Puerto Rico to offer
American Express Green, Gold and Corporate Cards; convert American Express
Corporate Card balances to line of credit loans; and accept branch payments from
American Express Card customers. Oriental expects this agreement to contribute
to the growth of bank service fees and commercial lending on a long-term basis.
Mortgage banking activities generated $1.1 million, versus $2.1 million in the
September 2004 quarter and $1.2 million in the June 2005 quarter. The net gain
on securities was $345,000 versus $3.2 million a year ago and $1.4 million in
the previous quarter. Declines in both areas reflect Oriental's strategy,
initiated in the March 2005 quarter, of retaining mortgages and profitable
investment securities for their recurring interest income.
NON-INTEREST EXPENSES
Non-interest expenses were $15.4 million compared with $15.2 million a year ago
and $16.9 million in the June 2005 quarter. The sequential decline reflects
early results of the Company's plan to reduce annualized overhead by 5%, from
the $63 million spent during the year ended June 30, 2005, notwithstanding the
debut of the Miramar branch in July, plans to expand and relocate its Arecibo
branch in December, and the opening of a branch in Canovanas, planned for
calendar 2006.
TOTAL FINANCIAL ASSETS MANAGED & OWNED, STOCKHOLDERS' EQUITY
Total financial assets managed and owned at September 30, 2005 were $7.39
billion, an 11.7% increase year over year and up 2.5% from the preceding
quarter. Expanded financial service and loan production, and increases in
investment securities volume principally accounted for this growth. Trust assets
managed totaled $1.85 billion, an increase of 13.9% over a year ago and 1.5%
sequentially; broker-dealer assets gathered amounted to $1.14 billion, an
increase of 8.8% year over year and 0.8% sequentially; and bank assets owned
were $4.39 billion, up 11.6% year over year and 3.4% sequentially.
Page 2 of 4
Stockholders' equity at September 30, 2005 totaled $344.2 million, increasing
9.3% over a year ago and 0.9% over the June 30, 2005 level.
INVESTMENTS
Investment securities were $3.38 billion at September 30, 2005, an increase of
12.5% year over year and 4.5% sequentially. Investments increased $144.5 million
from June 30, 2005, primarily due to the purchase of approximately $225 million
in AAA and AA investment grade U.S. notes, intended to offset pre-payments of
mortgage backed securities totaling approximately $120 million in the September
2005 quarter and a similar amount that is expected to be pre-paid in the
December 2005 quarter. Preferring to grow its loan portfolio, in particular
variable rate loans, Oriental's current strategy is to maintain a flat
investment portfolio relative to its June 30, 2005 level.
LOANS & LOAN PRODUCTION
Total loans receivable, net were $901.7 million at September 30, 2005, up 9.1%
from a year ago and off 0.6% from June 30, 2005. Within the Group's total
portfolio, variable rate loans amounted to $226.4 million, equal to 24.7% of the
portfolio, compared to $61.5 million, or 7.3%, a year ago, and $234.1 million,
or 25.4%, at June 30, 2005. Oriental's lending businesses generally reflect
strong growth, but from time to time growth rates can vary as the Group focuses
on quality rather than volume.
Mortgage loans were $735.2 million at September 30, 2005, resulting in a 2.3%
year over year increase and a 1.2% sequential quarter decline, which was due to
loan pre-payments in the September 2005 quarter and securitization of $22
million of purchased mortgage loans, partially offset by new mortgages. Mortgage
production was $73.3 million, a 34.7% year over year increase and a 6.0%
sequential quarter decline. Commercial loans, mainly secured by real estate,
were $131.2 million at September 30, 2005, resulting in increases of 32.7% year
over year and 0.9% on a sequential quarter basis. Commercial production during
the September 2005 quarter was $23.0 million, a 2.6% year over year decline and
a 117.6% increase from the June 2005 quarter. Consumer loans were $31.2 million
at September 30, 2005, representing increases of 45.1% year over year and 4.1%
on a sequential quarter basis. Consumer loan production was $6.1 million in the
September 2005 quarter, approximately $1 million ahead of a year ago, but off
$500,000 from the June 2005 quarter.
INTEREST BEARING LIABILITIES
Deposits of $1.30 billion on September 30, 2005 represented an increase of 26.4%
over last year and 4.1% sequentially. The year over year growth primarily
reflected brokered CDs sold during the 12 months ended June 30, 2005. Borrowings
at September 30, 2005 totaled $2.61 billion, an increase of 4.8% year over year
and a 0.6% on a sequential quarter basis. Faster growth of deposits versus
borrowings resulted from the Company's program of using deposits rather than
borrowings to fund asset growth.
Page 3 of 4
CREDIT QUALITY
Provision for loan losses for the September 2005 quarter increased approximately
$250,000 year over year and $100,000 on a sequential quarter basis, primarily
due to growth of the loan portfolio. The provision is based on an analysis by
Oriental of the credit quality and composition of its loan portfolio so as to
maintain the allowance at an adequate level. Net charge offs to average loans
were 0.27%, compared to 0.20% a year ago and 0.60% on a sequential quarter
basis. At September 30, 2005, non-performing loans were $28.5 million, down 2.0%
from a year ago and 7.8% from June 30, 2005, due to Oriental's previously
disclosed focus on reducing certain problem loans. Non-performing loans to total
loans fell to 3.13% from 3.48% a year ago and 3.38% sequentially, and
non-performing assets to total assets declined to 0.75% from 0.76% a year ago
and 0.82% sequentially. Total non-performing assets, including foreclosed
properties, decreased from $35.0 million as of June 30, 2005 to $32.9 million as
of September 30, 2005, a decrease of 5.9%.
ABOUT ORIENTAL FINANCIAL GROUP
Oriental Financial Group Inc. (www.OrientalOnline.com) is a diversified
financial holding company operating under U.S. and Puerto Rico banking laws and
regulations. Now in its 41st year in business, Oriental provides comprehensive
financial services to its clients throughout Puerto Rico and offers third party
pension plan administration through wholly owned subsidiary, Caribbean Pension
Consultants, Inc. The Group's core businesses include a full range of mortgage,
commercial and consumer banking services offered through 24 financial centers in
Puerto Rico, as well as financial planning, trust, insurance, investment
brokerage and investment banking services.
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 Oriental Financial 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.
# # #
Page 4 of 4
ORIENTAL FINANCIAL GROUP
[ORIENTAL FINANCIAL GROUP LOGO] FINANCIAL SUMMARY ---------------------------------------------------
(NYSE:OFG) FOR THE THREE-MONTH PERIOD ENDED
---------------------------------------------------
30-SEP-05 30-SEP-04 % 30-JUN-05
--------- --------- -------- ---------
SUMMARY OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA):
- -----------------------------------------------------------------------------------------------------
INTEREST INCOME:
Loans $ 15,218 $ 13,289 14.5% $ 14,934
Investment securities 35,595 31,658 12.4% 33,942
-------- -------- -------- --------
TOTAL INTEREST INCOME 50,813 44,947 13.1% 48,876
-------- -------- -------- --------
INTEREST EXPENSE:
- -----------------
Deposits 9,589 6,518 47.1% 8,697
Securities sold under agreements to repurchase 20,132 11,808 70.5% 17,583
Other borrowed funds 3,764 2,968 26.8% 3,308
-------- -------- -------- --------
TOTAL INTEREST EXPENSE 33,485 21,294 57.3% 29,588
-------- -------- -------- --------
NET INTEREST INCOME 17,328 23,653 -26.7% 19,288
Provision for loan losses (951) (700) 35.9% (850)
-------- -------- -------- --------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 16,377 22,953 -28.6% 18,438
-------- -------- -------- --------
NON-INTEREST INCOME:
- --------------------
Commissions and fees from broker,investment banking,
insurance and fiduciary activities 3,924 3,697 6.1% 3,411
Banking service revenues 2,219 1,951 13.7% 2,064
Mortgage banking activities 1,068 2,057 -48.1% 1,168
-------- -------- -------- --------
Total banking and financial services revenues 7,211 7,705 -6.4% 6,643
Net gain on sale of securities 345 3,243 -89.4% 1,378
Net gain (loss) on derivatives (50) (570) -91.2% (1,866)
Other 319 26 1126.9% 282
-------- -------- -------- --------
TOTAL NON-INTEREST INCOME 7,825 10,404 -24.8% 6,437
-------- -------- -------- --------
NON-INTEREST EXPENSES:
- ----------------------
Compensation and employees' benefits 6,260 6,768 -7.5% 7,366
Occupancy and equipment 2,976 2,501 19.0% 3,066
Advertising and business promotion 1,350 1,341 0.7% 1,420
Professional and service fees 1,693 1,674 1.1% 1,777
Communication 413 451 -8.4% 410
Loan servicing expenses 446 449 -0.7% 430
Taxes, other than payroll and income taxes 597 450 32.7% 471
Electronic banking charges 388 490 -20.8% 543
Printing, postage, stationery and supplies 259 248 4.4% 207
Insurance, including deposit insurance 185 198 -6.6% 188
Other 823 613 34.3% 979
-------- -------- -------- --------
TOTAL NON-INTEREST EXPENSES 15,390 15,183 1.4% 16,857
-------- -------- -------- --------
Page 1 of 5
ORIENTAL FINANCIAL GROUP
-------------------------------------------------------------
[ORIENTAL GROUP LOGO FINANCIAL SUMMARY FOR THE THREE-MONTH PERIOD ENDED
(NYSE:OFG) -------------------------------------------------------------
30-Sep-05 30-Sep-04 % 30-Jun-05
----------- ---------- --------- -------------
SUMMARY OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA):
- ----------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 8,812 18,174 -51.5% 8,018
Income tax expense (391) (768) -49.1% (377)
NET INCOME 8,421 17,406 -51.6% 7,641
Less: Dividends on preferred stock (1,200) (1,200) 0.0% (1,200)
----------- ----------- ---------- -----------
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 7,221 $ 16,206 -55.4% $ 6,441
=========== =========== ========== ===========
EARNINGS PER SHARE (1)
Earning per common share (basic) $ 0.29 $ 0.67 -56.6% $ 0.26
----------- ----------- ---------- -----------
Earning per common share (diluted) $ 0.29 $ 0.64 -54.7% $ 0.26
----------- ----------- ---------- -----------
Dividends declared per common share $ 0.14 $ 0.13 7.7% $ 0.14
----------- ----------- ---------- -----------
Average shares outstanding (1) 24,926 24,262 2.7% 24,847
Average potential common share-options (1) 214 1,195 -82.1% 357
----------- ----------- ---------- -----------
TOTAL AVERAGE SHARES OUTSTANDING AND EQUIVALENTS (1) 25,140 25,457 -1.3% 25,204
----------- ----------- ---------- -----------
Common shares outstanding at end of period (1) 24,776 24,486 1.2% 24,904
----------- ----------- ---------- -----------
Book value per common share (1) $ 11.15 $ 10.08 10.6% $ 10.97
----------- ----------- ---------- -----------
PERFORMANCE RATIOS:
Return on assets 0.78% 1.84% -57.8% 0.73%
----------- ----------- ---------- -----------
Return on common equity 12.68% 27.60% -54.0% 9.49%
----------- ----------- ---------- -----------
Efficiency Ratio 62.72% 48.42% 29.5% 64.31%
----------- ----------- ---------- -----------
Leverage capital ratio 10.33% 11.18% -7.6% 10.65%
----------- ----------- ---------- -----------
Tier 1 risk-based capital 38.80% 37.87% 2.5% 38.83%
----------- ----------- ---------- -----------
Total risk-based capital 39.39% 38.58% 2.1% 39.39%
----------- ----------- ---------- -----------
SELECTED FINANCIAL DATA AT PERIOD-END
Trust Assets Managed $ 1,850,957 $ 1,625,275 13.9% $ 1,823,292
Broker-Dealer Assets Gathered 1,143,873 1,051,557 8.8% 1,135,115
----------- ----------- ---------- -----------
TOTAL ASSETS MANAGED 2,994,830 2,676,832 11.9% 2,958,407
Bank assets owned 4,395,046 3,938,391 11.6% 4,250,652
----------- ----------- ---------- -----------
TOTAL FINANCIAL ASSETS MANAGED AND OWNED $ 7,389,876 $ 6,615,223 11.7% $ 7,209,059
=========== =========== ========== ===========
(1) DATA ADJUSTED TO GIVE RETROACTIVE EFFECT TO THE 10% STOCK DIVIDEND DECLARED
ON THE GROUP'S COMMON STOCK ON NOVEMBER 30, 2004.
Page 2 of 5
ORIENTAL FINANCIAL GROUP
-------------------------------------------------------------
[ORIENTAL GROUP LOGO FINANCIAL SUMMARY FOR THE THREE-MONTH PERIOD ENDED
(NYSE:OFG) -------------------------------------------------------------
30-Sep-05 30-Sep-04 % 30-Jun-05
----------- ---------- --------- -------------
SUMMARY OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA):
- ----------------------------------------------------------------------------------------------------------------------------
----------- ---------- --------- -------------
SELECTED FINANCIAL DATA AT PERIOD-END 30-Sep-05 30-Sep-04 % 30-Jun-05
----------- ---------- --------- -------------
CASH AND DUE FROM BANKS $ 15,930 $ 11,321 40.7% $ 14,892
----------- ----------- ---------- -----------
INTEREST-EARNING ASSETS:
INVESTMENTS:
Short term investments 70,387 74,602 -5.6% 39,791
Trading securities 188 54 248.1% 265
Investment securities available-for-sale, at fair value 1,017,355 1,580,021 -35.6% 1,029,720
Investment securities held-to-maturity, at amortized cost 2,261,155 1,319,176 71.4% 2,134,746
Federal Home Loan Bank (FHLB) stock, at cost 27,058 28,160 -3.9% 27,058
----------- ----------- ---------- -----------
TOTAL INVESTMENTS 3,376,143 3,002,013 12.5% $ 3,231,580
----------- ----------- ---------- -----------
LOANS:
Mortgage loans 735,175 718,657 2.3% 744,335
Commercial loans, mainly secured by real estate 131,165 98,813 32.7% 129,965
Consumer loans 31,246 21,532 45.1% 30,027
----------- ----------- ---------- -----------
LOANS RECEIVABLE, GROSS 897,586 839,002 7.0% 904,327
Less: deferred loan fees, net (8,597) (10,845) -20.7% (8,404)
----------- ----------- ---------- -----------
LOANS RECEIVABLE 888,989 828,157 7.3% 895,923
Allowance for loan losses (6,837) (7,860) -13.0% (6,495)
----------- ----------- ---------- -----------
LOANS RECEIVABLE, NET 882,152 820,297 7.5% 889,428
Mortgage loans held for sale 19,572 5,968 227.9% 17,963
----------- ----------- ---------- -----------
TOTAL LOANS RECEIVABLE, NET 901,724 826,265 9.1% 907,391
----------- ---------- -----------
TOTAL INTEREST-EARNING ASSETS 4,277,867 3,828,278 11.7% 4,138,971
----------- ----------- ---------- -----------
Securities sold but not yet delivered 707 23,369 -97.0% 1,034
Accrued interest receivable 26,178 19,071 37.3% 23,735
Premises and equipment, net 15,471 17,874 -13.4% 15,269
Deferred tax asset, net 6,980 6,649 5.0% 6,191
Foreclosed real estate, net 4,521 978 362.3% 4,186
Other assets 47,392 30,851 53.6% 46,374
----------- ----------- ---------- -----------
TOTAL ASSETS $ 4,395,046 $ 3,938,391 11.6% $ 4,250,652
=========== =========== ========== ===========
INTEREST-BEARING LIABILITIES:
DEPOSITS:
Demand deposits $ 145,950 $ 126,233 15.6% $ 152,165
Savings accounts 86,258 91,718 -6.0% 93,925
Certificates of deposit 1,072,564 814,480 31.7% 1,006,807
----------- ----------- ---------- -----------
TOTAL DEPOSITS 1,304,772 1,032,431 26.4% 1,252,897
----------- ----------- ---------- -----------
Page 3 of 5
ORIENTAL FINANCIAL GROUP
-------------------------------------------------------------
[ORIENTAL GROUP LOGO FINANCIAL SUMMARY FOR THE THREE-MONTH PERIOD ENDED
(NYSE:OFG) -------------------------------------------------------------
30-Sep-05 30-Sep-04 % 30-Jun-05
----------- ---------- --------- -------------
SUMMARY OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA):
- ----------------------------------------------------------------------------------------------------------------------------
BORROWINGS:
Securities sold under agreements to repurchase 2,208,847 2,101,340 5.1% 2,191,756
Advances from FHLB 300,000 300,000 0.0% 300,000
Subordinated capital notes 72,166 72,166 0.0% 72,166
Term notes and other borrowings 26,641 15,000 77.6% 27,310
----------- ----------- --------- -----------
TOTAL BORROWINGS 2,607,654 2,488,506 4.8% 2,591,232
----------- ----------- --------- -----------
TOTAL INTEREST-BEARING LIABILITIES 3,912,426 3,520,937 11.1% 3,844,129
----------- ----------- --------- -----------
SECURITIES AND LOANS PURCHASED BUT NOT YET RECEIVED 100,000 53,300 87.6% 22,772
ACCRUED EXPENSES AND OTHER LIABILITIES 38,443 49,290 -22.0% 42,584
----------- ----------- --------- -----------
TOTAL LIABILITIES 4,050,869 3,623,527 11.8% 3,909,485
----------- ----------- --------- -----------
PREFERRED EQUITY 68,000 68,000 0.0% 68,000
----------- ----------- --------- -----------
COMMON EQUITY:
Common stock 25,321 22,503 12.5% 25,104
Additional paid-in capital 188,525 127,121 48.3% 187,301
Legal surplus 34,916 29,306 19.1% 33,893
Retained earnings 71,348 112,930 -36.8% 68,620
Treasury stock (8,031) (4,482) 79.2% (3,368)
Accumulated other comprehensive loss (35,902) (40,514) -11.4% (38,383)
----------- ----------- --------- -----------
TOTAL COMMON EQUITY 276,177 246,864 11.9% 273,167
----------- ----------- --------- -----------
STOCKHOLDERS' EQUITY 344,177 314,864 9.3% 341,167
----------- ----------- --------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,395,046 $ 3,938,391 11.6% $ 4,250,652
=========== =========== ========= ===========
NUMBER OF FINANCIAL CENTERS 24 23 23
----------- ----------- -----------
CREDIT DATA
NET CHARGE-OFFS (RECOVERIES) ON LOANS:
Mortgage $ 70 $ 145 -51.7% 911
Commercial 94 (56) -267.9% 170
Consumer 445 304 46.4% 254
----------- ----------- --------- -----------
Net loans charged-off $ 609 $ 393 55.0% $ 1,335
----------- ----------- --------- -----------
Net credit losses to average loans outstanding 0.27% 0.20% 35.0% 0.60%
----------- ----------- --------- -----------
Allowance for loan losses $ 6,837 $ 7,860 -13.0% $ 6,495
----------- ----------- --------- -----------
Allowance coverage ratios:
Allowance for loan losses to total loans 0.75% 0.94% -20.4% 0.71%
----------- ----------- --------- -----------
Allowance for loan losses to non-performing loans 24.03% 27.08% -11.3% 21.05%
----------- ----------- --------- -----------
Allowance for loan losses to
non-residential non-performing loans 134.85% 243.87% -44.7% 139.02%
----------- ----------- --------- -----------
Page 4 of 5
ORIENTAL FINANCIAL GROUP
-------------------------------------------------------------
[ORIENTAL GROUP LOGO FINANCIAL SUMMARY FOR THE THREE-MONTH PERIOD ENDED
(NYSE:OFG) -------------------------------------------------------------
30-Sep-05 30-Sep-04 % 30-Jun-05
----------- ---------- --------- -------------
SUMMARY OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA):
- ----------------------------------------------------------------------------------------------------------------------------
Non-performing assets summary:
Mortgage $ 23,385 $ 25,801 -9.4% $ 26,184
Commercial, mainly real estate 4,802 2,898 65.7% 4,549
Consumer 268 325 -17.5% 123
----------- ----------- ---------- -----------
Non-performing loans 28,455 29,024 -2.0% $ 30,856
Foreclosed properties 4,521 978 362.3% 4,186
----------- ----------- ---------- -----------
Non-performing assets $ 32,976 $ 30,002 9.9% $ 35,042
=========== =========== ========== -----------
Non-performing loans to total loans 3.13% 3.48% -10.1% 3.38%
----------- ----------- ---------- -----------
Non-performing loans to total assets 0.65% 0.74% -11.8% 0.73%
----------- ----------- ---------- -----------
Non-performing assets to total assets 0.75% 0.76% -1.5% 0.82%
----------- ----------- ---------- -----------
LOAN PRODUCTION AND PURCHASES SUMMARY:
Mortgage loans production $ 73,305 $ 54,412 34.7% $77,950
Mortgage loans purchased 582 69,140 -99.2% 22,187
----------- ----------- ---------- -----------
Total mortgage 73,887 123,552 -40.2% 100,137
Commercial 23,040 23,663 -2.6% 10,586
Consumer 6,078 5,075 19.8% 6,604
----------- ----------- ---------- -----------
Total loan production and purchases $ 103,005 $ 152,290 -32.4% $ 117,327
=========== =========== ========== -----------
TAX EQUIVALENT SPREAD
Interest-earning assets 4.82% 5.01% -3.8% 4.78%
Tax equivalent adjustment 1.02% 1.12% -8.9% 1.03%
----------- ----------- ---------- -----------
INTEREST-EARNING ASSETS - TAX EQUIVALENT 5.84% 6.13% -4.7% 5.81%
Interest-bearing liabilities 3.40% 2.55% 33.3% 3.10%
----------- ----------- ---------- -----------
Tax equivalent interest rate spread 2.44% 3.58% -31.8% 2.71%
----------- ----------- ---------- -----------
Tax equivalent interest rate margin 2.66% 3.76% -29.3% 2.92%
----------- ----------- ---------- -----------
NORMAL SPREAD
Investments 4.32% 4.52% -4.4% 4.24%
Loans 6.63% 6.74% -1.6% 6.73%
----------- ----------- ---------- -----------
Interest-earning assets 4.82% 5.01% -3.8% 4.78%
----------- ----------- ---------- -----------
Deposits 3.04% 2.58% 17.8% 2.87%
Borrowings 3.57% 2.53% 41.1% 3.21%
----------- ----------- ---------- -----------
Interest-bearing liabilities 3.40% 2.55% 33.3% 3.10%
----------- ----------- ---------- -----------
Interest rate spread 1.42% 2.46% -42.3% 1.68%
----------- ----------- ---------- -----------
Interest rate margin 1.64% 2.64% -37.9% 1.89%
----------- ----------- ---------- -----------
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