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New-Born,
Just bought some BEL. Will it get me again? My loss risk is $21.00.
billyjoe
Just bought some BEL. Will it get me again? My loss risk is $21.00.
billyjoe
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That explains it!
No wonder BEL was surging ahead today. Your buy moved the price up!Originally posted by billyjoeComment
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you asked for it, you got it!
Originally posted by New-born baby
whether it's good or not depends on your expectations, but the results are in:
Oriental Financial Group Inc. Reports Fourth Quarter and Full Fiscal Year 2005 Results
Monday August 1, 5:02 pm ET
SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Aug. 1, 2005--Oriental Financial Group Inc. today announced results for the fourth quarter and fiscal year ended June 30, 2005.
Summary 4Q05 & FY05 Results- For the quarter, net income available to common shareholders amounted to $6.4 million, or $0.26 per diluted share, compared to $16.9 million, or $0.67 per diluted share, in the corresponding year ago quarter.
- Performance reflected the flattening yield curve, which resulted in a narrower net interest spread; higher interest costs due to continued increases in the Federal Reserve discount rate; and the reduction in one-time gains on the sale of securities as the Company shifts to increase recurring interest and non-interest income.
- For the full fiscal year, net income available to common shareholders amounted to $51.8 million, or $2.04 per diluted share, compared to $59.5 million, or $2.51 per diluted share. Fiscal 2005 reflected many of the same factors that affected the fourth quarter.
"Our performance was in line with our previously stated general outlook that results of operations would be solidly profitable, but clearly below year ago levels due to the challenging interest rate environment," said Jose Rafael Fernandez, President and Chief Executive Officer. "Going forward, our objective is to continue to increase our business in the professional and middle market sectors and among consumers, as well as to enhance efficiency and improve profitability."
FY06 Strategy
Oriental in Fiscal 2006 will continue to focus its efforts on speeding the transition to becoming more of a traditional financial institution engaged in lending activities, including:- Growing loan volume faster through the continued expansion of Oriental's commercial, consumer and mortgage lending operations, emphasizing variable rate lending and increased asset sensitivity;
- Growing deposits faster through continued expansion of Oriental's branch network and marketing strategies, thus reducing liability sensitivity;
- Revitalizing financial service and mortgage fee revenue growth, and further increasing bank service revenues; and
- Reducing non-interest expenses to less than $60 million through a cost-control plan that has already been initiated for Fiscal 2006.
Recent Progress
Mr. Fernandez noted that in the fourth quarter Oriental continued to achieve underlying progress with many of these strategies.- Loan interest income increased 18.9% year over year and 11.3% on a linked quarter basis.
- Non-interest income from financial services, bank services and mortgage banking activities increased 1.9%, 12.9% and 8.9%, respectively, on a linked quarter basis.
- Mortgage loan production increased 14.6% year over year and 24.6% on a linked quarter basis, to $78.0 million.
- Loans at June 30, 2005 were greater by 22.1% year over year and 5.6% on a linked quarter basis, to $907.4 million, and investment securities, which were up 13.5% year over year, declined 0.6% on a linked quarter basis, to $3.23 billion.
- Deposits at June 30, 2005 increased 22.3% year over year and 4.7% on a linked quarter basis, to $1.25 billion, while borrowings, which were 13.5% higher year over year, declined 2.0% on a linked quarter basis, to $2.59 billion.
- Total financial assets managed and owned at June 30, 2005 increased 11.8% year over year and advanced 2.1% on a linked quarter basis, to $7.21 billion, reflecting growth in virtually all major franchise categories.
- Stockholders' equity at June 30, 2005 grew 15.8% year over year and 0.7% on a linked quarter basis, to $341.2 million. Fiscal 2005 dividends per share rose 7.8%, to $0.55 per common share, from Fiscal 2004's payout.
4Q05 Income Statement Analysis
Total interest income increased 15.0% year over year and 2.7% on a linked quarter basis, to $48.9 million, while interest expense increased 48.9% year over year and 8.9% on a linked quarter basis, to $29.6 million. This resulted in a decline in net interest income of 14.7% year over year and 5.5% on a linked quarter basis, to $19.3 million. Net interest margin was 1.89%, compared with 2.63% and 2.02% in the year-ago and preceding quarters, respectively.
Interest income from loans increased 18.9% year over year and 11.3% on a linked quarter basis, to $14.9 million. Growth resulted from expanded loan volume, including variable rate loans, reflecting increased commercial and consumer lending, revitalization of mortgage originations, and the purchase of Puerto Rico mortgages from other financial institutions.
Interest income from investment securities increased 13.4% year over year, but declined 0.6% on a linked quarter basis, to $33.9 million. The trends reflected the Company's investment securities volume, which increased 13.5% year over year, but decreased 0.6% on a linked quarter basis.
Interest expense primarily reflected Federal Reserve rate hikes of 225 basis points since the year ago fourth quarter and 50 basis points since the linked March 2005 quarter. The decline in the linked quarter growth rate of interest expenses was due to an improved mix of deposits and securities under agreements to repurchase, which reprice more frequently than deposits.
Cost of deposits increased 25.1% year over year and 14.1% on a linked quarter basis, with deposit balances increasing 22.3% year over year and 4.7% on a linked quarter basis. At the same time, interest costs of repos increased 75.9% year over year and 7.3% on a linked quarter basis; repos balances were 15.6% higher year over year and 2.9% lower on a linked quarter basis.
Financial service revenues declined 22.5% year over year, to $3.4 million, as the recent Puerto Rico election resulted in a temporary reduction in fixed income government and municipal offerings, affecting investment banking and brokerage commission revenues. On a linked quarter basis, financial service revenues increased 1.9% due to higher brokerage commissions and fees from the initial success of the Company's expanded personal trust, wealth management, insurance, 401(k) and Keogh businesses.
Bank service revenues increased 6.4% year over year and 12.9% on a linked quarter basis, to $2.1 million, due to Oriental's expanded business with professional and middle market commercial accounts.
Non-interest income from mortgage banking activities was 11.4% lower year over year, but 8.9% higher on a linked quarter basis, to $1.2 million. The year over year decline resulted from the Company's decision to retain mortgage loans for their recurring interest income. The linked quarter increase reflects increased production, which generates higher fee revenue.
Non-interest expenses increased 16.6%, or $2.4 million, year over year, and 9.0%, or $1.4 million, on a linked quarter basis, to $16.9 million. The increases respond to several factors. First was start-up costs for expanding the branch network (Oriental opened its 24th branch in July 2005) and its brokerage and mortgage sales forces. Second was higher legal costs incurred in order to accelerate certain older, non-performing loans backed by real estate through foreclosure so they could be sold. Third were professional fees of approximately $0.5 million and $3 million for the quarter and the year, respectively, related to implementing section 404 of the Sarbanes-Oxley Act.
June 30, 2005 Balance Sheet Analysis
Trust Assets Managed increased 9.1% year over year and 4.5% on a linked quarter basis, to $1.82 billion, and Broker-Dealer Assets Gathered increased 7.9% year over year and 3.4% on a linked quarter basis, to $1.14 billion. The increases reflected the addition of more trust and brokerage accounts, the continued appeal of Oriental's actively managed IRA fund, and an improvement in the equity markets.
Assets Owned by the Bank and its Affiliates increased 14.1% year over year and 0.8% on a linked quarter basis, to $4.25 billion. There was a year over year increase of 13.5% in investment securities and 22.1% in loans. Linked quarter trends resulted from 5.6% loan growth and a 0.6% decline in investment securities.
Total net loans receivable of $907.4 million benefited from increased commercial, consumer and mortgage loan volume on a year over year and linked quarter basis. Included were variable rate loans of $234.1 million, equal to 25.4% of the loan portfolio, compared to $61.5 million, or 8.1% of the portfolio, a year ago, and $219.0 million, or 25.1% of loans, at March 31, 2005.
Mortgage loans increased 13.2% for the year and 5.0% on a linked quarter basis, to $743.6 million, including purchases of $22.2 million in loans in the June 2005 quarter and $131.6 million earlier in Fiscal 2005. Commercial loans, most backed by real estate, increased 58.8% year over year and 4.4% on a linked quarter basis, to $130.0 million. Growth slowed on a linked quarter basis due to early repayment of $7 million in loans. Consumer loans increased 62.2% year over year and 15.0% on a linked quarter basis, to $30.0 million.
Deposits increased 22.3% year over year and 4.7% on a linked quarter basis, to $1.25 billion. Included are $95.8 million in new demand deposits, savings accounts and certificates of deposit from commercial and consumer accounts, and $132.7 million in brokered CDs.
Credit Quality Analysis
Credit quality continued strong. Provision for loan losses in the June 2005 quarter amounted to $0.9 million, compared with $1.2 million a year ago and $0.7 million in the previous March quarter. The provision is based on an analysis by Oriental of the credit quality and composition of its loan portfolio so as to maintain the allowance at an adequate level.
Net charge offs to average loans in the June 2005 quarter increased year over year to 0.60% from 0.14% and declined on a linked quarter basis from 0.61%. These changes were largely due to the recognition of certain older, non-performing loans backed by real estate through foreclosure. At June 30, 2005, non-performing loans were $30.9 million, 0.3% below a year ago and 3.7% less than March 31, 2005. Non-performing loans to total loans fell to 3.38% from 4.10% a year ago and 3.70% at the end of the March 2005 quarter. Non-performing assets to total assets declined to 0.82% from 0.85% a year ago and 0.86% at the end of the March quarter.
Selected Fiscal 2006 Objectives
Oriental is targeting significant year over year growth in new commercial loans, which increased a net $48.1 million in Fiscal 2005, and in mortgage production, which totaled $250.8 million in Fiscal 2005. The Company also expects to revitalize growth of financial service income through increases in virtually all business lines, and to continue growth of bank service revenues through expanded marketing and new products, thus bolstering fee income. The generation of interest and non-interest income, and the gathering of deposits, is expected to be enhanced by the opening of a new financial center, in addition to one opened in July, resulting in an expanded network of 25 branches.
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Bad
Well Jiesen,
OFG took another kick in the head with the $1.50 hit this morning. Apparently there are some that don't like the earnings report. But it also presents a buying opportunity . . . of sorts.Comment
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yeouch
yeah, that is quite a kick in the head. even makes me hesitate for a minute. I thought $14 was a steal prior to this ER coming out, but now I would probably hold out for $12 or so before adding more to this one. Besides, we might just pick up CIB shortly, which seems to be much more in vogue right now, as far as Latin-American banks go. Don't get me wrong, I still think OFG is worth $30+ however, it may take a while longer now before the market realizes it.Comment
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AMLN and KBH
Home builders are in a little funk these last few days. But AMLN is moving up again today, up another $.96 so far. This one might just be the blockbuster you said it would be.Comment
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Who thinks that OFG is a buy yet?Comment
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Greetings Webs,
As far as this 3 year chart is concerned
It doesnt appear to have much downside,and looks like money inflow lately.Obviously something very bad happened here,without knowing anything about it,looks very similar to DRL,which got caught with its hands in the cookie jar with creaComment
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Sorry about the accidental upload,
As I was saying,creative earnings got smoked out,along with risky leveraging which cost them dearly.
Ill put some shares in my IRA after looking into why it tanked,what say you Spike?
cordially TomComment
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I'm liking OFG at these prices. I think the time is right to get back in.
I'll take my profits on NGPS and buy OFG tomorrow.Comment
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OFG news
Interesting stuff happening today in OFG's latest filing:
1) Director resignation
2) Change in fiscal year date
3) Plans to repurchase up to $12M in stock
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So far OFG is being good to me.
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So far OFG has been terrible to me- down more than 50% from when I bought it around 31.2. But I think that's going to change, since I bought again at a bargain price of 13.2. The dividend alone is 5%, and book value is over $13. No wonder the CEO (and now the company) is picking up some shares now.Originally posted by WebsmanSo far OFG is being good to me.
When this stock finally does recover, and it hits $$MM's target, I'll be able to sell it and use the proceeds to double-up on 3 other picks. How about THAT?Comment
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You are one tough and confident mouse. You may just take over the WORLD!Originally posted by jiesenComment
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That's the idea, Brain. NARF!Originally posted by WebsmanComment
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