OFG ==> The Titans Are Coming to AC Winner!!

[New-born baby]

9% in 2 months

Want to rake in 9% in 2 months? Try this, Jiesen:

OFG is currently trading at $23.19. The May $22.50 Calls (OFGEX) are trading at $2.50. That provides a return of about 9% if OFG is above $22.50 on expiration Friday in May.

[mrmarket]

Want to rake in 9% in 2 months? Try this, Jiesen:

OFG is currently trading at $23.19. The May $22.50 Calls (OFGEX) are trading at $2.50. That provides a return of about 9% if OFG is above $22.50 on expiration Friday in May.

You are suggesting writing the calls?

[New-born baby]

You are suggesting writing the calls?

Sure. SELL the call and buy the stock=9% in short order, not a bad play.

[mrmarket]

Sure. SELL the call and buy the stock=9% in short order, not a bad play.

True..but if you love the stock, you are giving away upside potential. Writing covered calls is a better strategy for stocks that you think are going sideways, no?

[New-born baby]

True..but if you love the stock, you are giving away upside potential. Writing covered calls is a better strategy for stocks that you think are going sideways, no?

Yes. But the question is: is OFG topping here?

[mrmarket]

Yes. But the question is: is OFG topping here?

OFG will hit my sell target.

[Karel]

When I was working on the updates for my fund, I noticed that OFG is starting to show up on my "$$$Mr. Market$$$ like stocks radar". Its 52 week R-squared was nothing to write home about, at 0.58, but its 26 week R-squared shows a distinct improvement: 0.83.

Reuters Financial Highlights page shows OFG steadily growing revenue, but the earnings picture isn't good enough to make it a $$$Mr. Market$$$ pick here, because of the dip in 2006, and 2007 still being worse than 2005.

But I am confident enough to hold here.

Regards,

Karel

[mrmarket]

OFG on the move!

Oriental Financial Group Reports Results for the First Quarter Ended March 31, 2008
Tuesday May 6, 8:00 am ET


SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Oriental Financial Group Inc. (NYSE: OFG - News) today announced results for the first quarter ended March 31, 2008.
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The Group reported income available to common shareholders of $15.6 million, an increase of 59.8% from the year ago quarter. This represented a return on average assets of 1.06% and a return on average common equity of 20.63%, compared with 1.01% and 14.54%, respectively, in the first quarter of 2007. Earnings per common share (fully diluted) of $0.64 were 60.0% greater than the $0.40 reported in the year ago quarter.

José Rafael Fernández, President and Chief Executive Officer, commented, “The strategies we have in place enabled us to continue to perform well despite the turbulent credit market and the recession in Puerto Rico. Highlights of the quarter include a reduction in net credit losses, continued improvement in loan production, ongoing expansion of the net interest margin, and a significant increase in customer deposits.”

Commentary and Outlook

Lending

“One of our key strategies, which has proven successful, was adopting conservative lending policies starting several years ago in light of weakening economic conditions in Puerto Rico,” Mr. Fernández explained.

As a result of these measures, in the first quarter, net credit losses declined 47.8% from the preceding quarter and 31.1% from a year ago. Non-performing loans increased by only $3.0 million, the smallest increase during the last six quarters.

“We are now seeing pockets of opportunity in lending,” Mr. Fernández noted. “Commercial loan production has been above $15 million for each of the last two quarters, following two previous quarters of low production. Mortgage originations of $44.6 million in the first quarter increased sequentially for the second consecutive quarter and exceeded $40 million for the first time in a year.”

The Banking-Financial Services Franchise

A second core strategy has been growing Oriental’s franchise with the objective of integrating the delivery of banking and financial services to mid and high net-worth clients, and building recurring non-interest income.

“This is a long term program that might not always result in year over year or sequential quarter increases, but that is producing positive results and value over time,” Mr. Fernández commented.

These marketing activities produced $107.0 million in retail deposits in the first quarter of 2008, for a record $1.2 billion in such deposits, representing an increase of 22.0% year over year and 10.1% quarter over quarter. “During this year’s first quarter we added $9.1 million in demand deposits, $38.8 million in retail certificates of deposit, and $65.9 million in savings accounts, despite the lowering of interest rates,” he explained.

Investment Securities Portfolio

A third major strategy involved repositioning Oriental’s investment portfolio in late 2006 and its related funding in early 2007 to improve net interest margin. As a direct consequence, along with asset growth, net interest income for the first quarter of 2008 totaled $24.9 million, an increase of 87.8% compared with a year ago, and the net interest margin expanded to 1.68% versus 1.18% in the year ago quarter.

“This marks the fifth consecutive quarter in which the net interest margin has improved,” Mr. Fernández said. “We remain attentive to market opportunities to further improve and lengthen net interest margin.”

Looking ahead, Mr. Fernández said that Oriental is well positioned to continue to benefit from these strategies.

The following are other highlights from the first quarter financial results:

Income Statement


Net interest income increased $11.6 million over a year ago, primarily as a result of a higher overall yield and higher average balances of interest-earning assets and a lower overall average cost of interest-bearing liabilities.
Total banking and financial service revenues of $7.5 million grew 10.8% compared with a year ago, reflecting increased revenues from investment banking and mortgage banking activities.
The strengthening of the mortgage banking operations during 2007 has permitted the Group to continue to securitize and sell conforming mortgage loans in the secondary market on a more consistent basis.
Assets under management, which generate recurring fees for the Group’s financial service businesses, reached $3.2 billion at March 31, 2008, an increase of 9.0% from a year ago.
Other non-interest income consisted mainly of gains on sale of securities of $9.3 million and losses on derivative activities of $7.8 million versus the first quarter of 2007, which included an $8.2 million gain from elimination of forecasted transactions on interest rate swaps unwound in 2006.
Non-interest expenses of $17.7 million for the 2008 first quarter increased 12.0% compared with the 2007 first quarter. Reflecting Oriental’s revenue growth, the efficiency ratio improved to 54.69% versus 78.95% in the year ago quarter.
The results for the 2008 first quarter include an income tax benefit of $2.5 million which takes into account the expiration of certain tax contingencies and the reassessment of the valuation allowance for the deferred tax asset.
Balance Sheet Highlights


Total interest earning assets of approximately $6.0 billion increased 18.8% over a year ago. This was primarily due to a 26.2% year over year increase in the investment portfolio, to $4.8 billion. This growth is in line with management’s strategy of supplementing the generally low level of loan originations with the purchase of high-quality investments with a favorable spread.
During the last 12 months the held to maturity investment portfolio was reduced by $626.5 million due to maturities and repayments, with the proceeds principally reinvested in the available for sale investment portfolio at more favorable spreads.
Funding for the asset growth during the first quarter of 2008 came mainly from a $195.6 million increase in deposits, which totaled $1.4 billion at March 31, 2008, up 7.8% from a year ago and 15.7%, from the preceding quarter.
Credit Quality


Net credit losses in the first quarter decreased to 0.24% of average loans outstanding. The increase in non-performing loans that has been affecting most of the industry is not expected to translate into significantly higher losses for Oriental since most of its loans are well collateralized with adequate loan-to-value ratios.
The Group follows a conservative residential mortgage lending policy, with more than 90% of its residential mortgage portfolio consisting of fixed-rate, fully amortizing, fully documented loans that do not have the level of risk associated with subprime loans offered by certain major US mortgage loan originators. Furthermore, Oriental has never been active in negative amortization loans or adjustable rate mortgage loans.
The allowance for loan losses stood at $11.1 million (0.93% of total loans) at March 31, 2008, compared to $8.0 million (0.65% of total loans) at March 31, 2007.
Capital


Stockholders’ equity was $338.8 million at March 31, 2008, reflecting a slight increase from the year ago quarter, but a 5.8% decline from the previous quarter. Book value per common share of $11.14 at March 31, 2008 is a slight increase from a year ago and a 1.9% decline from the preceding quarter.
The sequential change in stockholders’ equity and book value reflects mark to market valuation on the available for sale investment securities portfolio, mostly offset by a 23.6% increase in retained earnings.
The 1.1% year over year decline in total average shares outstanding and equivalents reflects share repurchases during 2007.
The Group maintains capital ratios comfortably in excess of the regulatory requirements. At March 31, 2008, the Leverage Capital Ratio was 6.67% (1.7 times the minimum of 4.00%), the Tier I Risk-Based Capital Ratio was 17.02% (4.3 times the minimum of 4.00%), and the Total Risk-Based Capital Ratio was 17.49% (2.2 times the minimum of 8.00%).

[mrmarket]

well...patience may finally be rewarded!

[mrmarket]

All I can say about OFG is.....OMG!!!

Up 250% in the last 5 days...

[Websman]

all i can say about ofg is.....omg!!!

Up 250% in the last 5 days...

wtf??? Ofg? Omg!!!

[jiesen]

wtf??? Ofg? Omg!!!

lol!!!!!!!!!

[mrmarket]

All this stock does is....

GO UP!!


It was as low as $0.87 per share not long ago..now it's at 12!!!

[Websman]

All this stock does is....

GO UP!!


It was as low as $0.87 per share not long ago..now it's at 12!!!

F---ing A!!!!!

[jiesen]

All I can say about OFG is.....OMG!!!

Up 250% in the last 5 days...

And now it's up over 1600% since last March, trading at about $17 yesterday. I'm sure glad I didn't toss it out at $1 like I did BEL (that was a bad move). We may yet see the $37 target hit on this one!

News just came out today of a $2B acquisition of assets from one of the other PR banks which went under during the recent crisis. All OFG does now is make money, while all the other banks are losing it!

http://www.thestreet.com/_yahoo/story/10742726/1/banks-in-puerto-rico-three-states-fail.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA