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Declares Regular $0.14 Quarterly Dividend
SAN JUAN, Puerto Rico, September 9, 2003 -- Oriental Financial
Group (NYSE:OFG) today announced that its Board of Directors declared a
regular dividend of $0.14 per common share for the first quarter ending on
September 30, 2003. The cash dividend is payable on October 15, 2003, to
shareholders of record on September 30, 2003, with an ex-dividend date of
September 26, 2003.
About Oriental Financial Group
Oriental, founded in 1964, is now a financial holding company operating
under U.S. banking regulations. Oriental provides comprehensive financial
services to its clients throughout Puerto Rico and offers third-party pension
plan administration in the continental U.S. and Puerto Rico through its
wholly-owned subsidiary, Caribbean Pension Consultants, Inc., which is
headquartered in Boca Raton, Florida.
The Group's core businesses include a full range of consumer, commercial
and mortgage banking services delivered through 23 financial centers, as well
as financial planning, trust, insurance, investment brokerage and investment
banking services.
This 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 businesses, including (without
limitation): the effect of economic and market conditions, the level and
volatility of interest rates and securities, the actions undertaken by both
current and potential competitors, the impact of current, pending or future
legislation and regulation both in the United States and in Puerto Rico, and
the potential effects of technological changes.
Tops Previous Record Earnings for Fourth Quarter and Full Fiscal 2003
SAN JUAN, Puerto Rico, July 22, 2003 -- Oriental
Financial Group Inc., (NYSE:OFG) a diversified financial holding company
specializing in financial services, including full-service banking, mortgage
lending, investment brokerage and insurance services, today reported new
record earnings for the fourth quarter and full fiscal year that ended
June 30, 2003.
Net income for the fourth quarter rose by 28.8 percent to $14.2 million in
2003, compared to $11.0 million in fiscal 2002, a historic high in quarterly
earnings. The outstanding performance for the fourth quarter drove profits for
the full fiscal year to a new high as well, reaching $51.3 million, an
increase of 33.5 percent from $38.5 million in fiscal 2002.
Earnings per share also reached new records, increasing to $0.73 (fully
diluted) for the quarter, up 28.1 percent from $0.57 for the same quarter in
fiscal 2002. For the full fiscal year, earnings per share rose 32.5 percent to
reach $2.65 (fully diluted), from $2.00 per share in fiscal 2002.
"Oriental is now growing from a position of strength, improving from one
record-breaking year to the next - building relationships, refining marketing
strategies and moving aggressively to deliver banking and financial products
that respond to the needs of customers," said Jose Enrique Fernandez,
President, Chairman and Chief Executive Officer.
As a result, stockholders' equity again rose substantially in fiscal 2003,
increasing by 21.2 percent to $201.7 million, compared with $166.4 million in
fiscal 2002. The increase in net income was the main driver of growth, as well
as the increase in the market value and corresponding unrealized gain on
investment securities available for sale.
Return on Equity Leads Peers
Moreover, Oriental maintains the highest return on equity (ROE) and a
superior return on assets (ROA) when compared to its peer group. ROE was
31.33 percent and ROA was 1.88 percent for the fiscal year.
The June 2003 edition of the prestigious ABA Banking Journal rated
Oriental's 2002 ROE performance sixth among its top 50 banks in the nation
with assets of over $1 billion. That ranking was the highest of any bank in
Puerto Rico.
"Oriental's greater emphasis on building banking and financial
relationships across product lines during fiscal 2003 contributed to our
ability to attract assets at a healthy pace," Fernandez observed. Total
financial assets grew to $5.7 billion in fiscal 2003, an increase of
13.8 percent from $5.0 billion in the previous fiscal year. Furthermore, it
was the first time that bank assets grew to over $3 billion, an increase of
22.4 percent from $2.4 billion.
Strong Operating Results
"Likewise, core operating income (income before income taxes less the net
gains from sales of securities, trading and derivative activities plus non-
interest expenses related to stock option cancellation and other expenses)
increased by 19.6 percent to $45.9 million in fiscal 2003, compared with
$38.4 million in fiscal 2002, further reflecting the strength of our core
profit centers," Fernandez said.
Net interest income, generated by consumer, commercial and mortgage
banking, as well as investments, continued to grow for the full fiscal year.
After provision for loan losses, the increase was 23.6 percent to
$70.3 million, compared with $56.9 million in the previous fiscal year.
The total loan portfolio also grew substantially in fiscal 2003, driven
mainly by low interest rates on new mortgages and refinancing of existing
mortgages. The total loan portfolio rose by 26.3 percent to $728.5 million in
fiscal 2003, compared with $576.8 million in fiscal 2002.
Non-interest income from banking, mortgage, trust, investment brokerage
and insurance fees showed growth as well, reaching $28.5 million in fiscal
2003, up 4.6 percent from $27.2 million in fiscal 2002.
At the same time, bank deposits continued to grow steadily at just over
$1 billion in fiscal 2003, a 7.8 percent increase from $968.9 million in
fiscal 2003. "This steady growth trend indicates costumer acceptance of our
strategy to integrate banking and financial services throughout our network of
23 branches around the island," Fernandez said.
About Oriental Financial Group
Founded in 1964, Oriental is a financial holding company operating under
U.S. banking regulations. Oriental provides comprehensive financial services
to its clients throughout Puerto Rico and offers third party pension plan
administration in the continental U.S. and Puerto Rico through its wholly-
owned subsidiary, Caribbean Pension Consultants, Inc., which is headquartered
in Boca Raton, Florida.
The Group's core businesses include a full range of consumer, commercial
and mortgage banking services delivered through 23 financial centers, as well
as financial planning, trust, insurance, investment brokerage and investment
banking services.
This 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 businesses, including (without
limitation): the effect of economic and market conditions, the level and
volatility of interest rates and other considerations.
Declares Regular Quarterly Cash Dividend of $0.14 per Common Share
SAN JUAN, Puerto Rico, May 8, 2003 -- Oriental Financial
Group (NYSE:OFG) announced today that its Board of Directors declared a
regular cash dividend of $0.14 per common share for the fourth quarter of the
current fiscal year, which ends on June 30, 2003. The cash dividend is payable
on July 15, 2003 to holders of record on June 30, 2003 with an ex-dividend
date of June 26, 2003.
About Oriental Financial Group
Oriental, founded in 1964, is now a financial holding company operating
under U.S. banking regulations. Oriental provides comprehensive financial
services to its clients throughout Puerto Rico and offers third party pension
plan administration in the continental U.S. and Puerto Rico through its
wholly-owned subsidiary, Caribbean Pension Consultants, Inc., which is
headquartered in Boca Raton, Florida.
The Group's core businesses include a full range of consumer, commercial
and mortgage banking services delivered through 23 financial centers, as well
as financial planning, trust, insurance, investment brokerage and investment
banking services.
This 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 businesses, including, without
limitation, the effect of economic and market conditions, the level and
volatility of interest rates and securities, the actions undertaken by both
current and potential competitors, the impact of current, pending or future
legislation and regulation both in the United States and in Puerto Rico, and
the potential effects of technological changes.
Reports Record Earnings of $37 Million for First Nine Months of Fiscal 2003 on Strong Third Quarter Results
SAN JUAN, Puerto Rico, April 15, 2003 -- Oriental Financial Group Inc. (NYSE: OFG), a diversified financial holding company specializing in financial services, including full-service banking, mortgage lending, investment brokerage and insurance services, today reported that net income for the first nine months of the current fiscal year, ended March 31, 2003, reached a new record of $37 million, an increase of 35 percent from $27.4 million for the same period in fiscal 2002. Per share income (fully diluted) for the nine months rose by 34 percent to $1.92, against $1.43 per fully diluted share a year earlier.
Earnings for the third quarter in fiscal 2003 grew to $13 million, compared to $10.4 million for the same quarter in fiscal 2002, an increase of 25 percent. On a per share basis (fully diluted), earnings rose to $0.67, compared with $0.55 (fully diluted) in the same three-month period of fiscal 2002, an increase of 22 percent.
"Strong earnings performance for the third quarter enabled Oriental to exceed the record earnings turned in for the first nine months of the previous fiscal year," said Jose E. Fernandez, President, Chairman and Chief Executive Officer.
Shareholders' equity rose substantially to $200.1 million for the nine months ended March 31,2003, up 42.5 percent from $140.4 million for the same period in fiscal 2002. The growth was mainly the result of the net income for the period and an increase in the market value and corresponding unrealized gain on investment securities available for sale, which is accounted for as an increase in shareholders' equity.
As a result, the return on equity (ROE) was 31.06 percent for the first nine months of fiscal 2003, which is among the highest in the industry. The return on assets increased by 13 percent for the nine-month period, reaching 1.85 percent in fiscal 2003, compared with 1.64 percent a year earlier.
Assets Surpass $5 Billion Mark
Total combined assets, including bank assets and assets managed by the trust division and the investment broker/dealer subsidiary, increased by 8 percent to $5.3 billion as of March 31, 2003, compared with $4.9 billion as of the same date in fiscal 2002.
The increase, which put assets over the $5 billion mark, was largely due to growth in bank assets and the acquisition of Caribbean Pension Consultants, Inc., (CPC) in January 2003. CPC is a third party administrator of private pension plans, headquartered in Boca Raton, Florida, with approximately $400 million in pension assets under administration.
"We welcome CPC into the Group because it represents important synergies for the growth of our trust business, as well as operating economies and improved efficiency that can result in substantial gains in fee income," Fernandez said. "In addition, CPC's proven track record over the past 25 years provides a solid base from which further expansion of our core businesses can be realized in the U.S. mainland and in Puerto Rico."
Net interest income, generated by consumer, commercial and mortgage lending, as well as investments, for the third quarter and the first nine months of fiscal 2003 was $19.7 million and $56.3 million, respectively, compared with $16.9 million and $42.2 million for the same periods of the previous year, which represents increases of 16 percent and 33 percent, respectively. "The increase in net interest income reflects the positive impact of a lower interest rate environment on the market, especially for mortgage lending, even while interest rate spreads were narrowing," Fernandez said.
Deposits Climb Over $1 Billion
Total non-interest income, derived from banking, trust, brokerage, insurance, mortgage banking and other fees, rose 17 percent for the third quarter to $8.6 million, compared to $7.3 million for the same quarter in the previous year. The nine-month period saw non-interest income grow 11 percent to $24.7 million from $22.3 million. Total deposits for the nine-month period also increased by 25 percent to just over $1 billion, compared to $830.5 million for the same period in fiscal 2002.
In February 2003, the Board of Directors declared a regular cash dividend of $0.14 per common share for the third quarter of the current fiscal year, which ends on June 30, 2003. The cash dividend is payable on April 15, 2003 to holders of record on March 31, 2003 with an ex-dividend date of March 27, 2003.
The Board also authorized a new program for the repurchase of up to $9 million of the Group's outstanding shares of common stock, which supersedes the ongoing repurchase program established earlier. The Board took this action on March 25, 2003 in the best interests of the shareholders of the Group and will make such repurchases from time to time, depending on market conditions and prices.
First Customers' Bill of Rights
Also in March 2003, Oriental launched its Customers' Bill of Rights, which is the first formal commitment made by a bank in Puerto Rico to provide excellence in service under the Oriental Way approach to building client relationships.
The Board of Directors, the senior management and the employees are dedicating their energies to the implementation of the Oriental Way and to carry it forward we have established an exciting team concept that will involve us all in learning new ways to perform tasks and reach objectives.
"We are firmly committed to continue to make the necessary investment in the application of information technologies and delivery systems that will transform the Oriental Way in every aspect of banking service and financial management," Fernandez said.
About Oriental Financial Group
Oriental, founded in 1964, is now a financial holding company operating under U.S. banking regulations. Oriental provides comprehensive financial services to its clients throughout Puerto Rico and offers third party pension plan administration in the continental U.S. and Puerto Rico through its wholly-owned subsidiary, Caribbean Pension Consultants, Inc., which is headquartered in Boca Raton, Florida.
The Group's core businesses include a full range of consumer, commercial and mortgage banking services delivered through 23 financial centers, as well as financial planning, trust, insurance, investment brokerage and investment banking services.
This 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 businesses, including (without limitation): the effect of economic and market conditions, the level and volatility of interest rates and securities, the actions undertaken by both current and potential competitors, the impact of current, pending or future legislation and regulation both in the United States and in Puerto Rico, and the potential effects of technological changes.
Authorizes New $9 Million Stock Repurchase Plan
SAN JUAN, Puerto Rico, March 26, 2003 -- The Board of Directors of Oriental Financial Group Inc. (NYSE: OFG) today announced the authorization of a new program for the repurchase of up to $9 million of its outstanding shares of common stock, which supersedes the ongoing repurchase program established earlier.
"The Board took this action on March 25, 2003, in the best interests of the shareholders of the Group and will make such repurchases from time to time, depending on market conditions and prices," said Jose E. Fernandez, Chairman of the Board of Directors, President and Chief Executive Officer of the Group.
About Oriental Financial Group
Oriental Financial Group Inc., a financial holding company operating under U.S. banking regulations, provides diversified financial services to clients throughout Puerto Rico. The Group's core businesses are financial planning, trust, brokerage, investment banking and insurance, as well as a full range of consumer, commercial and mortgage banking services through 23 financial centers.
This 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 businesses, including, without limitation, the effect of economic and market conditions, the level and volatility of interest rates and securities, the actions undertaken by both current and potential competitors, the impact of current, pending or future legislation and regulation both in the United States and in Puerto Rico, and the potential effects of technological changes.
Declares Regular Quarterly Cash Dividend
SAN JUAN, Puerto Rico, February 27, 2003 --
Oriental Financial Group (NYSE:OFG) announced today that its Board of
Directors declared a regular cash dividend of $0.14 per common share for the
third quarter of the current fiscal year, which ends on June 30, 2003. The
cash dividend is payable on April 15, 2003, to holders of record on March 31,
2003, with an ex-dividend date of March 27, 2003.
Oriental continued to turn in solid earnings growth for the first six
months of the current fiscal year, reporting a 41.9 percent increase to
$24.1 million from $17.0 million for the same six months in fiscal 2002. On a
per share basis, earnings rose 42.0 percent to $1.25 (fully diluted to reflect
a 25 percent stock split paid to shareholders in January 2003), compared with
$0.88 per share (fully diluted) a year earlier.
About Oriental Financial Group
The Group's core businesses include a full range of consumer, commercial
and mortgage banking services delivered through 23 financial centers, as well
as financial planning, trust, insurance, investment brokerage and investment
banking services.
This 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 businesses, including, without
limitation, the effect of economic and market conditions, the level and
volatility of interest rates and securities, the actions undertaken by both
current and potential competitors, the impact of current, pending or future
legislation and regulation both in the United States and in Puerto Rico, and
the potential effects of technological changes.
Acquires Pension Administration Company in Florida
SAN JUAN, Puerto Rico, January 29, 2003 -- Oriental
Financial Group, Inc. (NYSE:OFG) (OFG), a diversified financial holding
company specializing in financial services, including full-service banking,
mortgage lending, insurance, investment brokerage and trust services in Puerto
Rico, today announced the acquisition of Caribbean Pension Consultants, Inc.
(CPC), a third party administrator of pension plans in the United States,
Puerto Rico and the Bahamas, which is headquartered in Boca Raton, Florida.
"The acquisition represents Oriental's first venture on the U.S. mainland
and provides tremendous synergies for the growth of our trust business, which
is known as a pioneer in the development of products for retirement planning
in Puerto Rico, as well as other opportunities for growth from our core
businesses," said Jose E. Fernandez, President, Chairman of the Board and
Chief Executive Officer of Oriental. As of December 31, 2002, Oriental had
nearly $1.4 billion of trust assets under management.
"Caribbean Pension Consultants has been in the business of administering
pension plans for the past 25 years and currently has over $400 million in
private sector pension assets administered through various investment managers
throughout the country," said Willis Hummer, President of CPC. "A large share
of those assets are administered for private pension plans in Puerto Rico and
we at CPC are excited by the prospect of growing our business. Oriental's
demonstrated marketing and fiduciary capabilities will enhance all of our
services for our clients."
Under the agreement, which was signed by the parties on January 24, 2003,
Oriental acquires 100 percent of the stock of Caribbean Pension Consultants
for an undisclosed amount. Caribbean will continue to operate under its
present name and from its current location as a subsidiary of OFG.
"Mr. Hummer will continue as president and Patti Frankel Conway will
remain as Senior Vice President of the subsidiary, along with their 32-member
staff, many of whom relocated from Puerto Rico. Their considerable experience
in the administration of pension plans in Puerto Rico, as well as on the U.S.
mainland, will be valuable as we move ahead," according to Jose Rafael
Fernandez, Senior Executive Vice President of OFG, who was responsible for
putting the acquisition together, along with CPA Carlos J. Nieves, who acted
as a consultant to Oriental on the transaction.
"We are in the process of integrating these new members and their
operations as third party pension administrators into the Oriental family and
we look forward to working and learning with them as we move ahead with our
expansion plans for Puerto Rico and the U.S. mainland," said Fernandez, who
also is president of the Group's Financial Services Division, which includes
trust, investment brokerage and insurance operations.
"This foothold in the U.S. mainland market will enable Oriental to serve
its existing clients more efficiently and take advantage of new business
opportunities, both in the states and Puerto Rico," CEO Fernandez said. "We
expect that the new subsidiary will contribute positively to expanding fee
income growth for the Group. It also fits our corporate strategy for business
development through new and improved product and service lines that are geared
to meeting the total financial requirements of clients," he concluded.
About Oriental Financial Group
This release contains forward-looking statements that reflect management's
beliefs and expectations and are subject to risks and uncertainties inherent
to the Group's businesses, including, without limitation, the effect of
economic and market conditions, the level and volatility of interest rates and
securities, the actions undertaken by both current and potential competitors,
the impact of current, pending or future legislation and regulation both in
the United States and in Puerto Rico, and the potential effects of
technological changes.
Reports Record Earnings for Second Quarter of Fiscal 2003
SAN JUAN, Puerto Rico, January 16, 2003 --
Oriental Financial Group, Inc. (NYSE:OFG), a diversified financial holding
company specializing in financial services, including full-service banking,
mortgage lending, insurance and investment brokerage, today reported that net
income for the second quarter of the current fiscal year, ended December 31,
2002, was up 20.7 percent, reaching $12.5 million, compared to $10.4 million
for the same quarter in fiscal 2002. Per share income (fully diluted) for the
quarter rose by 18.3 percent to $0.65, against $0.55 per fully diluted share a
year earlier.
"Oriental continued to demonstrate strong earnings growth in the second
quarter, building on the pace of the first quarter and the previous fiscal
year," Jose E. Fernandez, President, Chairman and Chief Executive Officer,
said. "Based on the results of the first six months, we remain confident that
our earnings will meet or exceed expectations for the full year."
Net income for the first six months of fiscal 2003 increased by
41.9 percent to $24.1 million, compared with $17.0 million for the same six-
month period in fiscal 2002. On a per share basis (fully diluted) income grew
to $1.25 per share, compared to $0.88 per share, a year-to-year increase of
41.4 percent for the six-month period.
"We expect to achieve the necessary earnings growth from our key profit
centers in the third and fourth quarters of the current fiscal year to turn in
another record-breaking year for 2003," Fernandez said. "That growth will
primarily come from the strength of our banking franchise, mortgage
originations, financial services and insurance services," he noted.
Net interest income, generated by consumer, commercial and mortgage
lending, as well as investments, for the second quarter and the first six
months of fiscal 2003 was $18.4 million and $36.6 million, respectively,
compared with $14.2 million and $25.2 million for the same periods of the
previous year, which represents increases of 29.5 percent and 45 percent,
respectively.
Mortgage originations and other lending secured by real estate represented
the bulk of the Group's interest-earning loan portfolio in the first six
months of fiscal 2003, which increased by 18.6 percent to $666.4 million from
$561.9 million a year earlier. At the same time, the investment portfolio
increased by 23.6 percent, reaching just over $2 billion in the 2003 fiscal
six months, against $1.66 billion in the year earlier period.
"The continuing low interest rate environment and aggressive marketing of
Oriental's highly attractive consumer and mortgage lending products, coupled
with cross-selling of financial planning and insurance services also
contributed to growth in non-interest income for the second quarter and the
first six months of fiscal 2003," Fernandez noted.
Fees on bank deposit accounts showed the greatest increase, up 94.6 percent
for the quarter to $1.0 million from $533,000 and 93.7 percent for the six
months to $2.1 million from $1.1 million a year earlier.
Total non-interest income, derived from banking, trust, brokerage,
insurance, mortgage banking and other fees, rose 4.3 percent for the second
quarter to $8.6 million, compared to $8.2 million for the same quarter in the
previous year. The six-month period saw non-interest income grow 5.1 percent
to $16.1 million from $15.3 million.
The increase in net interest income reflects the positive impact of
reductions in interest rates, as well as the increase in interest earning
assets, especially banking assets. The Group's total financial assets reached
nearly $5 billion for the six-month period in fiscal 2003, against $4.8
billion a year earlier, an increase of 3.3 percent.
Likewise, total deposits for the six-month period increased by 8.7 percent
to $951.3 million, compared to $875.4 million for the same period in fiscal
2002. "The strong market appeal of Oriental's 23 branch outlets, conveniently
located around the island, and the growing use of our electronic and tele-
banking services enabled the Bank to increase its deposit base," said
Fernandez.
The return on assets (ROA) also grew, increasing by 18.5 percent for the
six-month period in fiscal 2003, going from 1.57 percent to 1.86 percent,
while the return on equity (ROE) slipped by 11.2 percent to 30.02 percent from
33.82 percent in the same six-month period in the previous fiscal year.
However, stockholders equity rose substantially, increasing by 46.9 percent to
$193.5 million for the six-month period, up from $131.7 million a year
earlier.
Stockholders also realized a significant increase in dividends paid by the
Group in the fiscal second quarter. The Board of Directors declared a 25
percent stock dividend on outstanding common shares in October. In addition, a
cash dividend of $0.14 per common share (after distribution of the stock
dividend) for the fiscal second quarter ended December 31,2002, also was
declared. The dividends were paid on January 15, 2003 to holders of record
December 30, 2002.
"Shareholders are receiving the 25 percent stock dividend, as well as the
quarterly cash dividend on those new shares that are being distributed to
them, increasing the cash dividend paid by 16.7 percent," said Fernandez.
"Continuing strong earnings growth has enabled Oriental to maintain its
established policy of sharing the benefits from improved performance with its
stockholders."
About Oriental Financial Group
This release contains forward-looking statements that reflect management's
beliefs and expectations and are subject to risks and uncertainties inherent
to the Group's businesses, including, without limitation, the effect of
economic and market conditions, the level and volatility of interest rates and
securities, the actions undertaken by both current and potential competitors,
the impact of current, pending or future legislation and regulation both in
the United States and in Puerto Rico, and the potential effects of
technological changes.
Issues Guidance of $3.00 Per Share for Fiscal 2003
SAN JUAN, Puerto Rico, November 14, 2002 -- Jose Enrique
Fernandez, President and Chief Executive Officer of Oriental Financial Group,
Inc. (NYSE:OFG), today raised the financial institution's guidance for
estimated earnings to $3.00 per common share for the fiscal year that will end
on June 30, 2003.
"The Group's results have significantly benefited from interest rate
reductions set forth by the Federal Reserve over the past two years, as well
as continued record-breaking performance in our core profit centers,"
Fernandez said.
Net income for the first three months of fiscal 2003, ended September 30,
2002, was up 75 percent to $11.6 million, compared to $6.6 million for the
same three months in fiscal 2001. On a per share basis, earnings for the first
fiscal quarter increased to $0.75 (fully diluted), against $0.42 per share
(fully diluted) a year earlier, a 78.4 percent jump. In January 2003 a 25
percent stock split will become effective.
"We are confident that Oriental's concentration on core business growth in
financial planning and investment services, mortgage originations, consumer,
commercial and investment banking and insurance services will continue to
contribute to record earnings growth in the months ahead," Fernandez
explained. Oriental recently received authorization from the Commonwealth's
Insurance Commissioner to add property and casualty insurance lines to the
range of products offered by Oriental Insurance, Inc.
Oriental Insurance was authorized to operate as a subsidiary of the Group
in August 2002. Oriental was the first bank in Puerto Rico to offer annuities
and life insurance products through an alliance established with Essex
Corporation in 1995.
"The ability to offer a full range of insurance services adds an
increasingly important dimension to our mix of financial services for
individuals and business clients," Fernandez points out.
About Oriental Financial Group
This release contains forward-looking statements that reflect management's
beliefs and expectations and are subject to risks and uncertainties inherent
to the Group's businesses, including (without limitation: the effect of
economic and market conditions, the level and volatility of interest rates and
securities, the actions undertaken by both current and potential competitors,
the impact of current, pending or future legislation and regulation both in
the United States and in Puerto Rico, and the potential effects of
technological changes.
Increases Cash Dividend by 16.7 Percent
SAN JUAN, Puerto Rico, October 28, 2002 -- The Board of
Directors of Oriental Financial Group (NYSE:OFG) today declared a 25 percent
stock dividend on outstanding common shares. A cash dividend of $0.14 per
common share (after distribution of the stock dividend) for the fiscal second
quarter ending December 31,2002, also was declared. The dividends are payable
on January 15, 2003 to holders of record December 30,2002.
"Shareholders will receive the 25 percent stock dividend, as well as the
quarterly cash dividend on those new shares that will be distributed to them,
increasing the cash dividend paid by 16.7 percent," said Jose Enrique
Fernandez, chairman of the board, president and chief executive officer.
"Oriental's earnings growth allows us to increase the cash dividend
distribution to shareholders."
About Oriental Financial Group
This 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 businesses, including (without
limitation: the effect of economic and market conditions, the level and
volatility of interest rates and securities, the actions undertaken by both
current and potential competitors, the impact of current, pending or future
legislation and regulation both in the United States and in Puerto Rico, and
the potential effects of technological changes.
Net Income up for First Quarter of Fiscal 2003
SAN JUAN, Puerto Rico, October 15, 2002 -- Jose E.
Fernandez, President and Chief Executive Officer of Oriental Financial Group,
Inc., (NYSE:OFG) today reported that net income for the first three months of
fiscal 2003, ended September 30, 2002, was up 75 percent to $11.6 million,
compared to $6.6 million for the same three months in 2001. On a per share
basis, earnings for the first fiscal quarter increased to $0.75 (fully
diluted), against $0.42 per share (fully diluted) a year earlier, a
78.4 percent jump.
"This performance means that Oriental is keeping pace with the record-
breaking earnings turned in for the past fiscal year, which saw our key profit
centers reach historic high levels," Fernandez said. "We expect that this
trend will continue throughout fiscal 2003."
"We continue to be confident that Oriental's concentration on core
business growth in financial planning and investment services, mortgage
originations, insurance services, consumer and commercial banking and
investment banking will contribute to solid earnings growth in the range of
12 to 15 percent for fiscal 2003," Fernandez observed.
Shareholders' equity rose to $182 million for the three months ended
September 30, 2002, up 32.6 percent from $137 million for the same period in
fiscal 2001. The Group maintained its outstanding return on equity, which is
the highest among its peers. Return on equity (ROE) and return on assets (ROA)
were 31.10 percent and 1.84 percent, respectively, for the three-month period
ended September 30, 2002, which represented a improvement from an ROE of
26.21 percent and an ROA of 1.26 percent in the same three months of the
previous fiscal year.
"Our consumer and commercial banking franchise continues to attract assets
at a brisk rate by providing financial planning services through the 23-branch
network that includes trust and retirement, money management and mortgage,
investment and insurance products," Fernandez noted. Bank assets rose by
20.4 percent in the September 2002 quarter to $2.6 billion, compared to
$2.2 billion as of September 30, 2001. As a result, total financial assets
grew to $4.9 billion in the first fiscal quarter, compared to $4.6 billion a
year earlier, an increase of 6.5 percent.
The Group strategy to re-balance the asset mix, giving greater emphasis to
the loan portfolio over the investment portfolio, was highly successful in the
first quarter. The loan portfolio grew by 20.7 percent for the period to
$622.4 million, compared to $515.7 million for the same period in the previous
year. Most of that growth came from residential mortgage loans. The investment
portfolio grew more modestly, increasing by 12.2 percent to $1.76 billion as
of September 30, 2002, against $1.57 billion a year earlier.
Net interest income after provision for loan losses showed significant
growth for the quarter, increasing to $17.3 million from $10.4 million for the
same period in the previous year, up 67.2 percent. "With almost 98 percent of
the Group's total loan portfolio collateralized by real estate or other
holdings, Oriental's loan loss provision remains relatively small," Fernandez
said. "Still, we prudently increased the provision by 30.8 percent for the
quarter to $840,000 from $642,000."
Fee income demonstrated a healthy increase for the three-month period to
September 30, 2002, growing by 14.7 percent to $6.3 million from $5.5 million
a year earlier. "This growth reflects the strong market acceptance of our fee-
based trust, investment brokerage, insurance and mortgage banking services, as
well as improved management of the investment portfolio," Fernandez said.
Deposits also showed significant growth reaching just over $1 billion for
the quarter, a 17.7 percent increase from $852.6 million for the three-months
ended September 30, 2002. "That steady growth trend indicates the success of
our strategy to integrate innovative banking services with the total financial
planning package of our other business lines," Fernandez noted.
About Oriental Financial Group
This release contains forward-looking statements that reflect management's
beliefs and expectations and are subject to risks and uncertainties inherent
to the Group's businesses, including without limitation: the effect of
economic and market conditions, the level and volatility of interest rates and
securities, the actions undertaken by both current and potential competitors,
the impact of current, pending or future legislation and regulation both in
the United States and in Puerto Rico, and the potential effects of
technological changes.
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