Oriental Financial Group Reports Third Quarter Earnings of $0.83 Per Diluted Common Share
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OFG | Quote | Chart | News | PowerRating -- Oriental Financial Group Inc. (NYSE: OFG | Quote | Chart | News | PowerRating) today reported income
available to common shareholders of $20.1 million for the third quarter
ended September 30, 2009. Results reflect higher returns on average
assets of 1.32% and average common equity of 28.12%, when compared with
negative (2.99%) and (88.58%), respectively, in the third quarter of
2008. Diluted earnings per common share improved to $0.83 from a loss of
($1.89) in the year ago quarter.
"We had another excellent quarter as we: (1) continued to grow our core
franchise, focusing on mid and high net worth customers; (2) continued
to accumulate capital and increase liquidity, to position Oriental
prudently in light of Puerto Rico's economy, and also remain prepared
for market opportunities; and (3) started to transition our investment
strategy to a potentially rising interest rate environment," said Jose
Rafael Fernandez, President and Chief Executive Officer.
Highlights
--
Pre-tax operating income (net interest income after provision for loan
losses, core non-interest income from banking and financial service
revenues, less non-interest expenses) of approximately $15.4 million
compared to $14.2 million in the year-ago quarter.
--
Net interest income increased 17.3% compared to the year-ago quarter,
due to an improvement in the net interest margin to 2.17% from 1.88%
in the year-ago quarter, primarily reflecting lower cost of funds.
--
Growth in core banking and financial service revenues of 18.3%
compared to the year-ago quarter, mainly due to an increase of
approximately $1.3 million in mortgage banking activities. The Group
also experienced sustained growth in retail deposits of $100.6 million
(7.7%) on a sequential quarter basis and $321.3 million (29.7%) on a
year-to-date basis.
--
Benefitting from the strategic positioning of its investment
securities portfolio, the Group took advantage of market conditions
during the quarter to realize gains on sales of securities of $35.5
million. These gains more than offset a $17.6 million charge for early
termination of $200 million in high-cost repurchase agreements, as
previously announced, and credit-related other than temporary
impairment charges of $8.3 million on non-agency mortgage-backed
securities.
--
Proceeds from these sales of securities have been used in a
combination of strategies to position Oriental for a potential
increase in interest rates, while maintaining the flexibility to take
advantage of local market opportunities. These strategies include
keeping higher levels of short-term money market instruments, and
investing in seasoned U.S. agency mortgage-backed securities and
short-to-intermediate maturing U.S. agency debentures.
--
Stockholders' equity increased $22.9 million during the quarter and
$121.3 million since December 31, 2008, representing an increase of
46.4% on a year-to-date basis. Book value per common share increased
to $12.98, from $12.04 at June 30, 2009 and $7.96 at December 31, 2008.
--
Non-interest expenses fell 7.8% from the second quarter, which
included an industry-wide FDIC special assessment on insured
depository institutions.
Capital
At September 30, 2009, stockholders' equity totaled $382.6 million,
58.1% and 6.4% higher than the year ago quarter and the preceding
quarter, respectively. Tangible common equity to risk-weighted assets
was 9.95% compared to 8.86% in the previous quarter.
The Group maintains capital ratios in excess of regulatory requirements.
At September 30, 2009, the Leverage Capital Ratio was 7.69% (1.92 times
the requirement of 4.00%) ; Tier I Risk-Based Capital Ratio was 15.80%
(3.95 times the requirement of 4.00%) , and the Total Risk-Based Capital
Ratio was 16.45% (2.06 times the requirement of 8.00%) . In dollars,
Leverage Capital and Tier 1 Risk-Based Capital was $496.5 million, and
Total Risk-Based Capital was $516.7 million, an increase from the
previous quarter of $18.6 million and $22.1 million, respectively. The
Group's banking subsidiary is categorized as "well-capitalized" under
the regulatory framework.
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 as Oriental expanded
market share based on its service proposition and capital strength, as
opposed to using rates to attract loans or deposits.
Lending
Total loan production and purchases of $69.2 million for the quarter
remained strong, as the Group's capital levels and low credit losses
enabled it to continue prudent lending. The average FICO score was 724
and the average loan to value ratio was 84% on residential mortgage
loans originated in the quarter.
The Group sells most of its conforming mortgages, which represented 94%
of third quarter production, into the secondary market, and retains
servicing rights. As a result, mortgage banking activities now reflect
originations as well as a growing servicing portfolio, a source of
recurring revenue.
Deposits
Growth in retail deposits primarily reflects increases in demand and
savings deposits of $97.5 million in the quarter and $338.7 million year
to date. Oriental also reduced brokered deposits by $55.4 million in the
quarter and $164.4 million year to date.
Assets Under Management
Assets under management, which generate recurring fees, increased 5.19%
from June 30, 2009, to $2.99 billion, reflecting increased market
valuations and the Group being awarded two new large trust accounts that
added approximately $75 million in managed assets. These increases
contributed to 14.6% sequential growth in financial service revenues.
Credit Quality
Net credit losses declined by 54.69%, to $0.9 million (0.32% of average
loans outstanding), from $2.1 million (0.70%), in the previous quarter.
The Group increased its provision for loan losses to $4.4 million,
mainly due to an increase in non-performing commercial loans, resulting
in a $20.2 million allowance at September 30, 2009, up 20.68% from the
preceding quarter.
Non-performing loans (NPLs) increased $3.2 million in the quarter. The
Group's NPLs generally reflect the economic environment in Puerto Rico.
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.
Investment Securities Portfolio
Approximately 87% of the investment securities 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, backed by
a U.S. government sponsored entity or the full faith and credit of the
U.S. government (85%), and Puerto Rico Government and agency obligations
(2%). The remaining balance consists of non-agency collateralized
mortgage obligations (10%) and structured credit investments (3%).
Non-GAAP Financial Measures
From time to time, the Group uses certain non-GAAP measures of financial
performance to supplement the financial statements presented in
accordance with GAAP. The Group presents non-GAAP measures when we
believe 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.
We have reported and discussed our results of operations herein both on
a GAAP basis and on a pre-tax operating income basis (as defined on page
1 of this release). We believe that, given the nature of the items
excluded from the definition of pre-tax operating income, it is useful
to state what our results of operations would have been without them so
that investors can see the financial trends from our 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 the
Group's capital position.
Conference Call
A conference call to discuss the Group's results, outlook and related
matters will be held on Friday, October 23, 2009 at 10:00 am (ET). The
call will be accessible live via a webcast on the Group's Investor
Relations website at www.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 21
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 at www.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 NINE-MONTH PERIOD ENDED
30-Sep-09 30-Sep-08 % 30-Jun-09 30-Sep-09 30-Sep-08 %
Summary of Operations (Dollars in thousands, except per
share data):
Interest Income:
Loans $ 18,251 $ 19,971 -8.6 % $ 18,707 $ 55,278 $ 59,481 -7.1 %
Mortgage-backed securities 48,750 47,040 3.6 % 51,721 151,179 134,306 12.6 %
Investment securities 11,412 17,440 -34.6 % 11,432 37,567 56,457 -33.5 %
Short term investments 140 293 -52.2 % 191 511 1,759 -70.9 %
Total interest income 78,553 84,744 -7.3 % 82,051 244,535 252,003 -3.0 %
Interest Expense:
Deposits 13,990 12,202 14.7 % 14,149 41,962 36,746 14.2 %
Securities sold under agreements to repurchase 27,209 40,456 -32.7 % 27,929 90,937 120,904 -24.8 %
Advances from FHLB, term notes, and other borrowings 3,106 3,505 -11.4 % 3,075 9,277 11,042 -16.0 %
FDIC-guaranteed term notes 1,021 - 100.0 % 1,021 2,154 - 100.0 %
Subordinated capital notes 333 540 -38.3 % 389 1,158 1,776 -34.8 %
Total interest expense 45,659 56,703 -19.5 % 46,563 145,488 170,468 -14.7 %
Net interest income 32,894 28,041 17.3 % 35,488 99,047 81,535 21.5 %
Provision for loan losses 4,400 1,950 125.6 % 3,650 11,250 5,580 101.6 %
Net interest income after provision for loan losses 28,494 26,091 9.2 % 31,838 87,797 75,955 15.6 %
Non-Interest Income:
Financial service revenues 3,764 3,756 0.2 % 3,285 10,163 12,496 -18.7 %
Banking service revenues 1,422 1,406 1.1 % 1,583 4,381 4,328 1.2 %
Investment banking revenues (losses) - 200 -100.0 % 8 (4 ) 950 -100.4 %
Mortgage banking activities 2,232 910 145.3 % 2,806 7,191 2,461 192.2 %
Total banking and financial service revenues 7,418 6,272 18.3 % 7,682 21,731 20,235 7.4 %
Net gain (loss) on:
Sales of securities 35,528 386 9104.1 % 10,520 56,388 9,908 469.1 %
Other than temporary impairments on securities (8,259 ) (58,804 ) 86.0 % (4,416 ) (12,675 ) (58,804 ) 78.4 %
Derivatives (64 ) (5,522 ) 98.8 % 19,408 19,778 (13,247 ) 249.3 %
Early extinguishment of repurchase agreements (17,551 ) - -100.0 % - (17,551 ) - -100.0 %
Trading securities (505 ) (31 ) -1529.0 % 12,959 12,427 (32 ) 38934.4 %
Foreclosed real estate (278 ) 58 -579.3 % (136 ) (576 ) (452 ) -27.4 %
Other investments 10 16 -37.5 % 11 34 132 -74.2 %
Other 21 609 -96.6 % 23 60 608 -90.1 %
Total non-interest income 16,320 (57,016 ) 128.6 % 46,051 79,616 (41,652 ) 291.1 %
Non-Interest Expenses:
Compensation and employee benefits 7,882 7,742 1.8 % 8,020 23,626 23,281 1.5 %
Occupancy and equipment 3,747 3,561 5.2 % 3,758 10,994 10,213 7.6 %
Professional and service fees 2,459 2,457 0.1 % 2,394 7,461 6,604 13.0 %
Insurance 1,273 618 106.0 % 3,472 5,560 1,799 209.1 %
Advertising and business promotion 1,097 847 29.5 % 1,028 3,329 2,757 20.7 %
Taxes, other than payroll and income taxes 834 644 29.5 % 649 2,129 1,862 14.3 %
Electronic banking charges 471 428 10.0 % 596 1,607 1,242 29.4 %
Loan servicing expenses 397 352 12.8 % 388 1,167 1,022 14.2 %
Communication 382 314 21.7 % 402 1,163 964 20.6 %
Directors and investor relations 348 273 27.5 % 332 1,029 854 20.5 %
Clearing and wrap fees expenses 293 294 -0.3 % 237 860 901 -4.6 %
Printing, postage, stationery and supplies 194 214 -9.3 % 215 665 736 -9.6 %
Other 1,109 453 144.8 % 723 2,381 1,772 34.4 %
Total non-interest expenses 20,486 18,197 12.6 % 22,214 61,971 54,007 14.7 %
Income (loss) before income taxes 24,328 (49,122 ) 149.5 % 55,675 105,442 (19,704 ) 635.1 %
Income tax expense (benefit) 3,001 (4,226 ) 171.0 % 4,761 8,452 (6,083 ) 238.9 %
Net income (loss) 21,327 (44,896 ) 147.5 % 50,914 96,990 (13,621 ) 812.1 %
Less: Dividends on preferred stock (1,201 ) (1,200 ) - (1,200 ) (3,602 ) (3,601 ) -
Income available (loss) to common shareholders $ 20,127 $ (46,096 ) 143.7 % $ 49,714 $ 93,388 $ (17,222 ) 642.3 %
ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)
QUARTER ENDED NINE-MONTH PERIOD ENDED
30-Sep-09 30-Sep-08 % 30-Jun-09 30-Sep-09 30-Sep-08 %
(Dollars in thousands, except
per share data):
INCOME (LOSS) PER COMMON SHARE
Basic $ 0.83 ($1.90 ) 143.7 % $ 2.05 $ 3.85 ($0.71 ) 642.3 %
Diluted $ 0.83 ($1.89 ) 143.9 % $ 2.04 $ 3.84 ($0.71 ) 640.8 %
COMMON STOCK DATA
Average common shares outstanding 24,303 24,292 0.0 % 24,303 24,284 24,249 0.1 %
Average potential common shares-options 65 82 -20.1 % 15 17 100 -82.9 %
Total average shares outstanding and equivalents 24,368 24,374 0.0 % 24,318 24,301 24,349 -0.2 %
Cash dividends per share of common stock $ 0.04 $ 0.14 -71.4 % $ 0.04 $ 0.12 $ 0.42 -71.4 %
Cash dividends declared on common shares $ 972 $ 3,402 -71.4 % $ 972 $ 2,916 $ 10,206 -71.4 %
Pay-out ratio 4.82 % -7.41 % 165.1 % 1.96 % 3.13 % -59.15 % 105.3 %
SELECTED FINANCIAL DATA
PERFORMANCE RATIOS:
Return on average assets 1.32 % -2.99 % 144.1 % 3.05 % 1.98 % -0.30 % 760.0 %
Return on average common equity 28.12 % -88.58 % 131.7 % 80.89 % 51.61 % -8.97 % 675.2 %
Efficiency ratio 50.82 % 53.03 % -4.2 % 51.43 % 51.31 % 53.07 % -3.3 %
TAX EQUIVALENT SPREAD
Interest-earning assets 5.19 % 5.67 % -8.5 % 5.30 % 5.31 % 5.64 % -5.9 %
Tax equivalent adjustment 1.79 % 1.87 % -4.3 % 1.75 % 1.75 % 1.80 % -2.8 %
Interest-earning assets - tax equivalent 6.98 % 7.54 % -7.4 % 7.05 % 7.06 % 7.44 % -5.1 %
Interest-bearing liabilities 3.12 % 4.04 % -22.8 % 3.13 % 3.30 % 4.08 % -19.1 %
Tax equivalent interest rate spread 3.86 % 3.50 % 10.3 % 3.92 % 3.76 % 3.36 % 11.9 %
Tax equivalent interest rate margin 3.96 % 3.74 % 5.9 % 4.04 % 3.90 % 3.62 % 7.7 %
NORMAL SPREAD
Investments 4.94 % 5.45 % -9.4 % 5.07 % 5.10 % 5.40 % -5.6 %
Loans 6.24 % 6.52 % -4.3 % 6.27 % 6.21 % 6.57 % -5.5 %
Interest-earning assets 5.19 % 5.67 % -8.5 % 5.30 % 5.31 % 5.64 % -5.9 %
Deposits 3.10 % 3.41 % -9.1 % 3.25 % 3.21 % 3.61 % -11.1 %
Borrowings 3.13 % 4.26 % -26.5 % 3.08 % 3.33 % 4.24 % -21.5 %
Interest-bearing liabilities 3.12 % 4.04 % -22.8 % 3.13 % 3.30 % 4.08 % -19.1 %
Interest rate spread 2.07 % 1.63 % 27.0 % 2.17 % 2.01 % 1.56 % 28.8 %
Interest rate margin 2.17 % 1.88 % 15.4 % 2.29 % 2.15 % 1.82 % 18.1 %
AVERAGE BALANCES
Investments $ 4,886,104 $ 4,756,244 2.7 % $ 4,998,921 $ 4,949,814 $ 4,749,345 4.2 %
Loans 1,169,558 1,224,318 -4.5 % 1,193,396 1,185,919 1,207,872 -1.8 %
Interest-earning assets $ 6,055,662 $ 5,980,562 1.3 % $ 6,192,317 $ 6,135,733 $ 5,957,217 3.0 %
Deposits $ 1,803,455 $ 1,433,129 25.8 % $ 1,743,799 $ 1,742,744 $ 1,355,994 28.5 %
Borrowings 4,052,469 4,179,005 -3.0 % 4,215,544 4,144,278 4,209,175 -1.5 %
Interest-bearing liabilities $ 5,855,924 $ 5,612,134 4.3 % $ 5,959,343 $ 5,887,022 $ 5,565,169 5.8 %
ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)
AS OF
30-Sep-09 30-Sep-08 % 30-Jun-09 31-Dec-08
(Dollars in thousands)
BALANCE SHEET
Cash and due from banks $ 170,443 $ 40,382 322.1 % $ 307,062 $ 66,372
Interest-earning assets:
Investments:
Trading securities 39 1,061 -96.3 % 904 256
Investment securities available-for-sale, at fair value with
amortized cost of $4,604,048
(September 30, 2008 - $3,403,608, June 30, 2009 - $5,064,700,
December 31, 2008 - $4,052,574)
FNMA and FHLMC certificates 2,601,515 1,488,534 74.8 % 2,768,465 1,546,750
Obligations of US Government sponsored agencies 695,912 752,819 -7.6 % 921,247 941,916
Non-agency collateralized mortgage obligations 457,216 587,154 -22.1 % 476,192 529,664
CMO's issued by US Government sponsored agencies 302,502 321,015 -5.8 % 319,091 351,026
GNMA certificates 229,760 77,978 194.6 % 258,721 335,781
Structured credit investments 141,259 64,727 118.2 % 143,823 136,181
Puerto Rico Government and agency obligations 64,462 15,593 313.4 % 62,981 82,889
Total investment securities available-for-sale 4,492,626 3,307,820 35.8 % 4,950,520 3,924,207
Investment securities held-to-maturity, at amortized cost with fair
value
of $1,171,853 at September 30, 2008
FNMA and FHLMC certificates - 564,918 -100.0 % - -
CMO's issued by US Government sponsored agencies - 121,560 -100.0 % - -
Obligations of US Government sponsored agencies - 224,857 -100.0 % - -
GNMA certificates - 148,874 -100.0 % - -
Structured credit investments - 76,300 -100.0 % - -
Puerto Rico Government and agency obligations - 55,162 -100.0 % - -
Total investment securities held-to-maturity - 1,191,671 -100.0 % - -
Federal Home Loan Bank (FHLB) stock, at cost 19,937 19,812 0.6 % 19,937 21,013
Other investments 150 150 - 150 150
Total investments 4,512,752 4,520,514 -0.2 % 4,971,511 3,945,626
Loans:
Mortgage loans 932,696 1,003,022 -7.0 % 946,439 1,000,076
Commercial loans 195,034 177,687 9.8 % 199,136 187,077
Consumer loans 21,446 23,832 -10.0 % 20,982 23,054
Loans receivable, gross 1,149,176 1,204,541 -4.6 % 1,166,557 1,210,207
Less: Deferred loan fees, net (3,305 ) (3,388 ) 2.5 % (3,651 ) (3,364 )
Loans receivable 1,145,871 1,201,152 -4.6 % 1,162,906 1,206,843
Allowance for loan losses (20,176 ) (12,466 ) -61.8 % (16,718 ) (14,293 )
Loans receivable, net 1,125,695 1,188,686 -5.3 % 1,146,188 1,192,550
Mortgage loans held for sale 26,213 31,152 -15.9 % 40,886 26,562
Total loans, net 1,151,908 1,219,838 -5.6 % 1,187,074 1,219,112
Total interest-earning assets 5,664,660 5,740,352 -1.3 % 6,158,585 5,164,738
Securities sold but not yet delivered 417,280 4,857 8491.8 % 360,764 834,976
Accrued interest receivable 39,970 38,104 4.9 % 37,785 43,914
Deferred tax asset, net 26,590 22,577 17.8 % 25,756 28,463
Premises and equipment, net 20,202 20,911 -3.4 % 20,706 21,184
Foreclosed real estate 8,319 8,220 1.2 % 9,174 9,162
Prepaid expenses 6,720 10,955 -38.7 % 7,605 3,433
Servicing asset 6,135 3,004 104.2 % 5,242 2,819
Debt issuance costs 3,839 884 100.0 % 4,146 875
Mortgage tax credits 3,819 - 100.0 % 3,819 5,047
Investment in equity indexed options 5,983 13,548 -55.8 % 2,412 12,801
Goodwill 2,006 2,006 - 2,006 2,006
Investment in statutory trust 1,086 1,085 0.1 % 1,086 1,086
Accounts receivable and other assets 4,309 7,780 -44.6 % 4,156 8,660
Total assets $ 6,381,361 $ 5,914,666 7.9 % $ 6,950,304 $ 6,205,536
Interest-bearing liabilities:
Deposits:
Non-interest bearing demand deposits $ 73,413 $ 56,478 30.0 % $ 61,878 $ 53,056
Interest-bearing savings and demand deposits 769,119 454,438 69.2 % 683,124 450,786
Individual retirement accounts 307,717 285,635 7.7 % 298,925 286,691
Retail certificates of deposit 253,644 267,791 -5.3 % 259,326 292,046
Total Retail Deposits 1,403,893 1,064,342 31.9 % 1,303,253 1,082,579
Institutional deposits 160,243 148,500 7.9 % 139,684 184,283
Brokered deposits 354,085 304,948 16.1 % 409,509 518,438
Total deposits 1,918,221 1,517,789 26.4 % 1,852,446 1,785,300
ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)
AS OF
30-Sep-09 30-Sep-08 % 30-Jun-09 31-Dec-08
(Dollars in thousands)
Borrowings:
Federal funds purchased and other short term borrowings 35,269 41,026 -14.0 % 27,748 29,193
Securities sold under agreements to repurchase 3,557,086 3,770,755 -5.7 % 3,757,510 3,761,121
Advances from FHLB 281,741 281,724 - 281,718 308,442
FDIC-guaranteed term notes 105,112 - 100.0 % 105,834 -
Subordinated capital notes 36,083 36,083 - 36,083 36,083
Total borrowings 4,015,291 4,129,588 -2.8 % 4,208,893 4,134,839
Total interest-bearing liabilities 5,933,512 5,647,377 5.1 % 6,061,339 5,920,139
Securities purchased but not yet received 30,945 - 100.0 % 497,360 398
Accrued expenses and other liabilities 34,335 25,271 35.9 % 31,971 23,682
Total liabilities 5,998,792 5,672,648 5.7 % 6,590,670 5,944,219
Preferred Equity 68,000 68,000 - 68,000 68,000
Common Equity:
Common stock 25,739 25,738 - 25,739 25,739
Additional paid-in capital 213,264 212,511 0.4 % 212,962 212,625
Legal surplus 52,659 40,573 29.8 % 48,771 43,016
Retained earnings 146,421 17,868 719.5 % 131,154 51,233
Treasury stock, at cost (17,147 ) (17,142 ) - (17,152 ) (17,109 )
Accumulated other comprehensive loss (106,367 ) (105,530 ) -0.8 % (109,840 ) (122,187 )
Total common equity 314,569 174,018 80.8 % 291,634 193,317
Total Stockholders' equity 382,569 242,018 58.1 % 359,634 261,317
Total liabilities and stockholders' equity $ 6,381,361 $ 5,914,666 7.9 % $ 6,950,304 $ 6,205,536
CAPITAL RATIOS
Leverage Capital Ratio 7.69 % 5.98 % 28.6 % 7.31 % 6.38 %
Leverage Capital Ratio Required 4.00 % 4.00 % 4.00 % 4.00 %
Actual Tier 1 Capital $ 496,541 $ 359,165 38.2 % $ 477,913 $ 389,235
Tier 1 Capital Required $ 258,445 $ 240,281 7.6 % $ 261,547 $ 244,101
Excess over regulatory requirement $ 238,096 $ 118,884 100.3 % $ 216,366 $ 145,134
Tier 1 Risk-Based Capital Ratio 15.80 % 15.93 % -0.8 % 14.62 % 17.11 %
Tier 1 Risk-Based Capital Ratio Required 4.00 % 4.00 % 4.00 % 4.00 %
Actual Tier 1 Risk-Based Capital $ 496,541 $ 359,165 38.2 % $ 477,913 $ 389,235
Tier 1 Risk-Based Capital Required $ 125,669 $ 90,168 39.4 % $ 130,774 $ 91,022
Excess over regulatory requirement $ 370,872 $ 268,997 37.9 % $ 347,139 $ 298,213
Total Risk-Based Capital Ratio 16.45 % 16.49 % -0.2 % 15.13 % 17.73 %
Total Risk-Based Capital Ratio Required 8.00 % 8.00 % 8.00 % 8.00 %
Actual Total Risk-Based Capital $ 516,717 $ 371,631 39.0 % $ 494,631 $ 403,523
Total Risk-Based Capital Required $ 251,339 $ 180,336 39.4 % $ 261,548 $ 182,044
Excess over regulatory requirement $ 265,378 $ 191,295 38.7 % $ 233,083 $ 221,479
Tangible common equity to total assets 4.90 % 2.91 % 68.4 % 4.17 % 3.08 %
Tangible common equity to risk-weighted assets 9.95 % 7.63 % 30.4 % 8.86 % 8.40 %
Total equity to total assets 6.00 % 4.09 % 46.7 % 5.17 % 4.21 %
Total equity to risk-weighted assets 12.18 % 10.74 % 13.4 % 11.00 % 11.47 %
SELECTED FINANCIAL DATA AT
PERIOD-END
Common shares outstanding at end of period 24,232 24,293 -0.2 % 24,230 24,297
Book value per common share $ 12.98 $ 7.16 81.2 % $ 12.04 $ 7.96
Trust Assets Managed 1,759,464 1,839,702 -4.4 % $ 1,677,344 $ 1,706,286
Broker-Dealer Assets Gathered 1,235,341 1,236,760 -0.1 % 1,169,775 1,195,739
Total Assets Managed 2,994,805 3,076,462 -2.7 % 2,847,119 2,902,025
Assets owned 6,381,361 5,914,666 7.9 % 6,950,304 6,205,536
Total financial assets managed and owned $ 9,376,166 $ 8,991,128 4.3 % $ 9,797,423 $ 9,107,561
Number of financial centers 21 23 -8.7 % 23 23
ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)
QUARTER ENDED NINE-MONTH PERIOD ENDED
30-Sep-09 30-Sep-08 % 30-Jun-09 30-Sep-09 30-Sep-08 %
(Dollars in thousands)
Loan Production and Purchases Summary:
Mortgage loans production $ 54,507 $ 56,109 -2.9 % $ 60,276 $ 180,514 $ 176,236 2.4 %
Mortgage loans purchased 1,717 - 100.0 % 3,651 7,544 5,173 45.8 %
Total mortgage 56,224 56,109 0.2 % 63,927 188,058 181,409 3.7 %
Commercial 10,518 10,894 -3.5 % 7,519 36,104 41,802 -13.6 %
Consumer 2,426 947 156.2 % 2,075 5,806 3,601 61.2 %
Total loan production and purchases $ 69,168 $ 67,950 1.8 % $ 73,521 $ 229,968 $ 226,812 1.4 %
CREDIT DATA
Net credit losses:
Mortgage $ 544 $ 648 -16.1 % $ 767 $ 2,706 $ 1,128 139.9 %
Commercial 70 54 30.0 % 1,099 1,767 182 870.6 %
Consumer 328 667 -50.8 % 213 894 1,965 -54.5 %
Total net credit losses $ 942 $ 1,369 -31.2 % $ 2,079 $ 5,367 $ 3,275 63.9 %
Net credit losses to average loans outstanding 0.32 % 0.45 % -28.9 % 0.70 % 0.60 % 0.36 % 66.7 %
AS OF
30-Sep-09 30-Sep-08 % 30-Jun-09
Allowance for loan losses $ 20,176 $ 12,466 61.8 % $ 16,718
Allowance coverage ratios:
Allowance for loan losses to total loans 1.72 % 1.01 % 70.3 % 1.39 %
Allowance for loan losses to non-performing loans 21.67 % 18.16 % 19.3 % 18.60 %
Allowance for loan losses to non-residential non-performing loans 211.40 % 301.99 % -30.0 % 216.69 %
Non-performing assets summary:
Mortgage $ 83,551 $ 64,513 29.5 % $ 82,162
Commercial, mainly real estate 8,792 3,308 165.8 % 6,868
Consumer 752 820 -8.3 % 847
Non-performing loans 93,094 68,641 35.6 % 89,877
Foreclosed properties 8,319 8,220 1.2 % 9,174
Non-performing assets $ 101,413 $ 76,861 31.9 % $ 99,051
Non-performing loans to total loans 7.94 % 5.57 % 42.5 % 7.47 %
Non-performing loans to total assets 1.46 % 1.16 % 25.9 % 1.29 %
Non-performing assets to total assets 1.59 % 1.30 % 22.3 % 1.43 %
Non-performing assets to total capital 26.51 % 31.76 % -16.5 % 24.99 %
SOURCE: Oriental Financial Group Inc.
Puerto Rico:
Oriental Financial Group Inc.
Marilyn Santiago-Colon, 787-993-4648
or
U.S.:
Anreder & Company
Steven Anreder and Gary Fishman, 212-532-3232
For full details on Oriental Financial Group (OFG) OFG. Oriental Financial Group (OFG) has Short Term PowerRatings at TradingMarkets. Details on Oriental Financial Group (OFG) Short Term PowerRatings is available at This Link.
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