SAN JUAN, Puerto Rico--(BUSINESS WIRE)--
Oriental Financial Group Inc. (NYSE: OFG) today announced results for
the second quarter ended June 30, 2012.
2Q12 Financial Summary
As compared to the year ago period, the second quarter of 2012 reflects
a reduced investment securities portfolio, higher premium amortization
on those securities, and the absence of a $3.0 million benefit from the
settlement of various tax contingencies.
Over the past year, Oriental has sold securities to lock in gains,
deleveraged the balance sheet, reduced wholesale funding costs, and
built up its cash position, putting the Company in a favorable position
to move forward with its recently announced plan to acquire the Puerto
Rico operations of Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBVA)
for $500 million in cash.
“We are continuing to move in the right direction for achieving our
goals for 2012,” said José Rafael Fernández, President, Chief Executive
Officer and Vice Chairman of the Board.
“The investments made to expand our banking capabilities, the active
management of our risk exposures, and the transformation of our
financial model, have resulted in a growth oriented franchise with a
very strong capital position.
“During the quarter, we continued to benefit from new commercial,
consumer and auto lending; lower cost of deposits as well as reduced
cost of wholesale funding; and increased banking activity and cross
selling of services from our growing customer base. We also continued to
effectively manage non-interest expenses, while reducing our reliance on
“Complementary to our focus on growing our banking business, our planned
acquisition of BBVA’s Puerto Rico operations has been well received and
remains on target for closing before year end 2012, subject to customary
2Q12 Income Statement Analysis
All comparisons are to the preceding quarter unless otherwise noted
June 30, 2012 Balance Sheet Analysis
All comparisons are to March 31, 2012 unless otherwise noted
Other 2Q12 Highlights
All comparisons are to the preceding quarter or March 31, 2012 unless
A conference call to discuss Oriental’s results, outlook and related
matters will be held Tuesday, July 24, 2012, at 10:00 AM Eastern and
Puerto Rico Time. The call will be accessible live via a webcast on
Oriental’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.
Full Financial Tables
Full financial tables for the second quarter of 2012 can be found on the
Webcasts, Presentations & Other Files page of Oriental’s Investor
Relations website at www.orientalfg.com.
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 48th 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 28 financial centers. Investor
information about Oriental can be found at www.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 pre-provision
operating income basis (defined as net interest income, 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
pre-provision 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.
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 ability to receive and timing of necessary regulatory
approvals to consummate the acquisition of BBVA’s Puerto Rico
operations, (ii) difficulties in integrating BBVA’s Puerto Rico
operations into Oriental’s operations; (iii) the amounts by which our
assumptions related to the acquisition, including future financing, fail
to approximate actual results; (iv) the rate of declining growth in the
economy and employment levels, as well as general business and economic
conditions; (v) changes in interest rates, as well as the magnitude of
such changes; (vi) the fiscal and monetary policies of the federal
government and its agencies; (vii) changes in federal bank regulatory
and supervisory policies, including required levels of capital; (viii)
the relative strength or weakness of the consumer and commercial credit
sectors and of the real estate market in Puerto Rico; (ix) the
performance of the stock and bond markets; (x) competition in the
financial services industry; (xi) possible legislative, tax or
regulatory changes; and (xii) difficulties in combining the operations
of any other 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, 2011, 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.
Puerto Rico:Oriental Financial Group Inc.Alexandra
& CompanySteven Anreder and Gary Fishman, email@example.com firstname.lastname@example.org
Source: Oriental Financial Group Inc.