Oriental Financial Group Reports Third Quarter Earnings of $0.83 Per Diluted Common Share
http://www.businesswire.com/news/home/20091022006493/en
SAN JUAN, Puerto Rico--(Business Wire)--
Oriental Financial Group Inc. (NYSE: OFG) 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 José Rafael Fernández,
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 22,741 9,603
Net interest income after provision for
loan and lease losses 25,577 29,826 71,940 89,215
Noninterest income:
Trust fees 3,782 4,939 11,473 14,155
Service charges on deposit accounts 5,402 5,761 15,367 16,633
Mortgage banking income 965 959 6,874 3,493
Insurance commissions 1,022 1,084 3,614 4,122
Equipment rental income 6,347 6,285 18,896 17,794
Other income 2,022 2,168 6,613 6,836
Investment securities and other investment gains (losses) 716 (8,816 ) 673 (9,259 )
Total noninterest income 20,256 12,380 63,510 53,774
Noninterest expense:
Salaries and employee benefits 18,425 19,297 55,340 58,996
Net occupancy expense 2,221 2,332 7,095 7,289
Furniture and equipment expense 3,241 3,694 10,487 11,555
Depreciation - leased equipment 5,021 5,041 15,065 14,266
Professional fees 1,020 2,773 2,897 6,453
Supplies and communication 1,473 1,812 4,468 5,163
FDIC and other insurance 1,582 713 6,851 1,396
Other expense 3,587 2,655 10,356 9,495
Total noninterest expense 36,570 38,317 112,559 114,613
Income before income taxes 9,263 3,889 22,891 28,376
Income tax expense (benefit) 2,530 (583 ) 3,624 7,305
Net income 6,733 4,472 19,267 21,071
Preferred stock dividends and discount accretion (1,701 ) - (4,710 ) -
Net income available to common shareholders $ 5,032 $ 4,472 $ 14,557 $ 21,071
The NASDAQ Stock Market National Market Symbol: "SRCE" (CUSIP #336901 10 3)
Please contact us at shareholder@1stsource.com
Puerto Rico:
Oriental Financial Group Inc.
Marilyn Santiago-Colón, 787-993-4648
or
U.S.:
Anreder & Company
Steven Anreder and Gary Fishman, 212-532-3232
Copyright Business Wire 2009
