Oriental Financial Group Inc. (NYSE: OFG) today announced results for the second quarter ended June 30, 2012.
2Q12 Financial Summary
- Income per common share (diluted) of $0.34 compares to $0.23 in the preceding 2012 quarter and $0.56 in the year ago quarter.
- Income available to common shareholders of $13.8 million compares to $9.5 million in the preceding 2012 quarter and $25.3 million in the year ago quarter.
- Book value per share of $15.32 at June 30, 2012 compares to $15.27 at March 31, 2012 and $14.91 at June 30, 2011.
- Cash dividends per common share of $0.06 are up 20% from the year ago quarter.
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.CEO Comment “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 investment securities.