This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

10 Cheapest Bank Stocks for 2013

Stocks in this article: BAC C JPM RF COF DFS PNC BPOP OFG HMST FBC

9. Oriental Financial Group

Shares of Oriental Financial Group (OFG) of San Juan, Puerto Rico, closed at $13.15 Friday, returning 11% year-to-date, after pulling back 1% during 2011.

The shares trade for 0.9 times tangible book value, and for 8.9 times the consensus 2013 EPS estimate of $1.48. The consensus 2014 EPS estimate is $1.75.

Based on a quarterly payout of six cents, the shares have a dividend yield of 1.83%.

Oriental Financial had $6.1 billion in total assets as of Sept. 30, having greatly expanded its share of the Puerto Rico market through its purchase of the failed Eurobank from the Federal Deposit Insurance Corp. in April 2010.

The company on Dec. 18 completed its acquisition of the Puerto Rico operations of Banco Bilbao Vizcaya Argentaria, SA (BBVA) for $500 million in cash, bringing on roughly $5 billion in additional assets, as well as $3.7 billion in loans.

After the BBVA deal was approved, KBW analyst Derek Hewitt on Dec. 10 said in a report that his firm was "excited about this accretive transaction which will allow OFG to fully deploy its excess capital, become one of the leading commercial banks on the island, and should generate a more stable revenue stream from higher multiple commercial banking activities."

With loans making up just 26% of Oriental's total assets as of Sept. 30, Hewitt said that the BBVA deal would "transform OFG's earning asset mix from that of an agency-REIT to a commercial bank."

The analyst rates Oriental Financial Group "Outperform," with a $15 price target, and wrote that "investors have not fully incorporated the expected earnings accretion from this deal; therefore, the shares remain attractively priced" at just over roughly at Hewitt's pro forma Dec. 31 tangible book value estimate of $12.79.

OFG Chart OFG data by YCharts

Interested in more on Oriental Financial Group? See TheStreet Ratings' report card for this stock.

3 of 11

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs