Oriental Financial Group Inc. (OFG, Financial) filed Quarterly Report for the period ended 2010-03-31.
Oriental Financial Group Inc. has a market cap of $435 million; its shares were traded at around $13.66 with a P/E ratio of 136.6 and P/S ratio of 1.4. The dividend yield of Oriental Financial Group Inc. stocks is 1.2%.OFG is in the portfolios of Chuck Royce of Royce& Associates.
Return on average common equity (ROE) for the quarter ended March 31, 2010 was 13.39%, down from 49.14% for the quarter ended March 31, 2009. Return on average assets (ROA) for the quarter ended March 31, 2010 was 0.73%, down from 1.53% for the quarter ended March 31, 2009. Decrease is mostly due to a 51.8% decrease in net income from $24.7 million in the quarter ended March 31, 2009 to $11.9 million in the quarter ended March 31, 2010. In addition, decrease in ROE is also due to a 67.3% increase in average common equity from $191.7 million in the quarter ended March 31, 2009 to $320.7 million in the quarter ended March 31, 2010.
Assets managed by the trust division, the pension plan administration subsidiary, and the broker-dealer subsidiary decreased from $3.088 billion as of December 31, 2009 to $2.990 billion as of March 31, 2010. The Groups trust division offers various types of individual retirement accounts (IRA) and manages 401(K) and Keogh retirement plans and custodian and corporate trust accounts, while Caribbean Pension Consultants, Inc. (CPC) manages the administration of private pension plans. At March 31, 2010, total assets managed by the Groups trust division and CPC amounted to $1.689 billion, compared to $1.819 billion at December 31, 2009. This decrease is mostly due to a strategic decision made to let go of custody assets below expected profitability levels. The Groups broker-dealer subsidiary offers a wide array of investment alternatives to its client base, such as tax-advantaged fixed income securities, mutual funds, stocks, bonds and money management wrap-fee programs. At March 31, 2010, total assets gathered by the broker-dealer from its customer investment accounts increased to $1.301 billion, compared to $1.269 billion at December 31, 2009.
The investment portfolio amounted to $4.637 billion at March 31, 2010, a 6.8% decrease compared to $4.974 billion at December 31, 2009, which reflected the sale of non-agency securities in January 2010. The loan portfolio decreased 0.8% to $1.131 billion at March 31, 2010, compared to $1.140 billion at December 31, 2009.
Results for the year included gains on: (i) sales of agency securities of $12.0 million, and losses on: (ii) derivative activities of $10.6 million. This loss on derivative activities was the result of the decline in long rates, reflecting a non-cash loss on valuation of $10.6 million on the forward settled interest rate swaps. This essentially reversed the valuation gain from the preceding quarter of about $9 million. The purpose of these swaps is to partially offset any decline in value the Group might experience on the investment securities portfolio.
Under the Agreement, Oriental Bank assumed approximately $785 million in retail deposits, paying a premium of 1.25% on approximately $400 million in core retail deposits, and acquired approximately $1.7 billion of assets (including approximately $1.58 billion portfolio of single-family residential and commercial loans) at a discount of 13.8%. These loans are subject to a loss sharing arrangement pursuant to which the FDIC will bear 80% of qualifying losses, beginning with the first dollar amount of qualifying losses (see Loss Sharing Arrangements below).
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Oriental Financial Group Inc. has a market cap of $435 million; its shares were traded at around $13.66 with a P/E ratio of 136.6 and P/S ratio of 1.4. The dividend yield of Oriental Financial Group Inc. stocks is 1.2%.OFG is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:
For the quarter ended March 31, 2010, the Groups income available to common shareholders totaled $10.7 million, or $0.42 and $0.41 per basic and diluted share, respectively. This compares to $23.5 million, or $0.97 per basic and diluted share, which benefited from non-core, non-interest income of $10.6 million, primarily from gains on sales of securities.Return on average common equity (ROE) for the quarter ended March 31, 2010 was 13.39%, down from 49.14% for the quarter ended March 31, 2009. Return on average assets (ROA) for the quarter ended March 31, 2010 was 0.73%, down from 1.53% for the quarter ended March 31, 2009. Decrease is mostly due to a 51.8% decrease in net income from $24.7 million in the quarter ended March 31, 2009 to $11.9 million in the quarter ended March 31, 2010. In addition, decrease in ROE is also due to a 67.3% increase in average common equity from $191.7 million in the quarter ended March 31, 2009 to $320.7 million in the quarter ended March 31, 2010.
Assets managed by the trust division, the pension plan administration subsidiary, and the broker-dealer subsidiary decreased from $3.088 billion as of December 31, 2009 to $2.990 billion as of March 31, 2010. The Groups trust division offers various types of individual retirement accounts (IRA) and manages 401(K) and Keogh retirement plans and custodian and corporate trust accounts, while Caribbean Pension Consultants, Inc. (CPC) manages the administration of private pension plans. At March 31, 2010, total assets managed by the Groups trust division and CPC amounted to $1.689 billion, compared to $1.819 billion at December 31, 2009. This decrease is mostly due to a strategic decision made to let go of custody assets below expected profitability levels. The Groups broker-dealer subsidiary offers a wide array of investment alternatives to its client base, such as tax-advantaged fixed income securities, mutual funds, stocks, bonds and money management wrap-fee programs. At March 31, 2010, total assets gathered by the broker-dealer from its customer investment accounts increased to $1.301 billion, compared to $1.269 billion at December 31, 2009.
The investment portfolio amounted to $4.637 billion at March 31, 2010, a 6.8% decrease compared to $4.974 billion at December 31, 2009, which reflected the sale of non-agency securities in January 2010. The loan portfolio decreased 0.8% to $1.131 billion at March 31, 2010, compared to $1.140 billion at December 31, 2009.
Results for the year included gains on: (i) sales of agency securities of $12.0 million, and losses on: (ii) derivative activities of $10.6 million. This loss on derivative activities was the result of the decline in long rates, reflecting a non-cash loss on valuation of $10.6 million on the forward settled interest rate swaps. This essentially reversed the valuation gain from the preceding quarter of about $9 million. The purpose of these swaps is to partially offset any decline in value the Group might experience on the investment securities portfolio.
Under the Agreement, Oriental Bank assumed approximately $785 million in retail deposits, paying a premium of 1.25% on approximately $400 million in core retail deposits, and acquired approximately $1.7 billion of assets (including approximately $1.58 billion portfolio of single-family residential and commercial loans) at a discount of 13.8%. These loans are subject to a loss sharing arrangement pursuant to which the FDIC will bear 80% of qualifying losses, beginning with the first dollar amount of qualifying losses (see Loss Sharing Arrangements below).
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