8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

July 16, 2003

(Date of earliest event reported)

R&G FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Puerto Rico	0-22137	66-0532217
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

280 Jesús T. Piñero Ave., Hato Rey, San Juan, Puerto Rico	00918
(Address of principal executive offices)	(Zip Code)

(787) 758-2424

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits

      (a) Not applicable.

      (b) Not applicable.

      (c) The following exhibit is included with this Report:

            Exhibit 99.1     Press release dated July 16, 2003.

Item 9.  Regulation FD Disclosure

      On July 16, 2003, R&G Financial Corporation announced by press release its earnings for the quarter ended June 30, 2003. A copy of the press release is attached hereto as Exhibit 99.1. The information contained in this Report on Form 8-K is furnished pursuant to Item 12.

SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

R&G FINANCIAL CORPORATION
By:	/s/ Joseph R. Sandoval Joseph R. Sandoval Executive Vice President and Chief Financial Officer

Date: July 17, 2003

EX-99.1 3 g83869exv99w1.txt EX-99.1 PRESS RELEASE DATED JULY 16, 2003 EXHIBIT 99.1 [R&G LOGO] FOR RELEASE: Immediately CONTACT: Victor J. Galan Joseph R. Sandoval Chairman and CEO Executive Vice President & CFO (787) 766-8301 (787) 756-2801 R&G FINANCIAL REPORTS RECORD EARNINGS FOR SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2003 San Juan, Puerto Rico, July 16, 2003 -- R&G Financial Corporation ("the Company") (NYSE:RGF), the financial holding company of R-G Premier Bank, one of the fastest growing commercial banks in Puerto Rico, R-G Crown Bank, its federal savings bank with branches in the Orlando and Tampa/St. Petersburg Florida markets, and R&G Mortgage Corp, the second largest residential mortgage loan originator and servicer in Puerto Rico, today reported record earnings for the second quarter and first half of 2003. For the first six months of 2003, net income amounted to $60.6 million, compared to $44.2 million 2002, an improvement of 37%. For the second quarter of 2003, net income amounted to $31.4 million compared to $22.6 million for the second quarter of 2002, an increase of 39%. For the six months of 2003, consolidated earnings per diluted share were $1.54, compared to $1.17 for 2002, an increase of 32%; for the second quarter of 2003, consolidated earnings per diluted share were $0.80, compared to $0.59 per diluted share for the second quarter of 2002, an increase of 36%. R&G Financial Corporation Page 2 These strong earning results were achieved notwithstanding impairment charges of $27.5 million and $16.7 million (included in operating expenses) during the first half and second quarter of 2003, respectively, on the Company's servicing asset. These charges reflect additional increases in mortgage prepayment rates during the period as a result of the continued low levels of interest rates. The resulting decrease in earnings was more than offset by increases in gain on sale and fees from mortgage loans, which were attributable to record volumes of mortgage loan originations and sales. Total loan production during the first half of 2003 was $2.1 billion, a 61% increase over the first half in 2002; total loan production during the second quarter of 2003 was $1.1 billion, a 49% increase. In both periods, over 90% of the total loan production was internally generated. Total loan production during the second quarter was the highest amount for any given quarter in the Company's history, surpassing the amount for the first quarter this year. For the second quarter of 2003, gain on the origination and sale of loans increased 184% to $44.8 million, while the Company's net interest income increased by 24% to $44.6 million. For the first half of 2003, gain on the origination and sale of loans increased 133% to $77.8 million, while the Company's net interest income increased by 28% to $86.8 million. R&G Financial Corporation Page 3 Other fee income for the first half of 2003 was $12.9 million, representing a 63% increase over the comparative period in 2002. The increase reflects the added contributions made by the Company's insurance agency and its broker-dealer subsidiary. Commenting on the significant results for the second quarter and first half of 2003, Mr. Victor J. Galan, Chairman of the Board and CEO of the Company indicated: "We are pleased to report these excellent results during the quarter ended June 30, 2003. The increase in earnings reflects another strong quarter of loan production, surpassing the $1 billion mark for the second consecutive quarter. Our loan portfolio has grown by close to $250 million during the first half of 2003, due to strong loan demand both in Puerto Rico and Central Florida, which position R&G very well for the future. As a result of these strong results, together with the continuing strong demand we are experiencing both in commercial and residential lending, we remain optimistic about our future performance." R&G Financial currently in its 31st year of operations, is a diversified financial holding company with operations in Puerto Rico and the United States, providing banking, mortgage banking, investments, consumer finance and insurance through its wholly-owned subsidiaries: R-G Premier Bank of Puerto Rico, R-G Crown Bank, R&G Mortgage Corp., Mortgage Store of Puerto Rico, Inc., a subsidiary of R&G Mortgage, Continental Capital Corporation, R-G Crown's R&G Financial Corporation Page 4 New York, North Carolina and Central-Florida based mortgage banking subsidiary, Home and Property Insurance Corporation, its Puerto Rico insurance agency, and R-G Investments Corporation, its Puerto Rico broker-dealer. As of June 30, 2003 the Company, with total assets of $7.3 billion, operated 31 bank branches in Puerto Rico, 15 bank branches in the Orlando and Tampa/St. Petersburg Florida markets, 6 mortgage and 6 commercial lending offices in the United States, and 43 mortgage offices in Puerto Rico, including 24 facilities located with R-G Premier's branches. "SAFE HARBOR" STATEMENT UNDER THE PRIVACY SECURITIES LITIGATION REFORM ACT OF 1995 Statements made in this Press Release that relate to future events are made pursuant to the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon current expectations and R&G Financial assumes no obligation to update this information. Because actual results may differ materially from expectation, R&G Financial cautions readers not to place undue reliance on these statements. For a detailed discussion of the important factors affecting R&G Financial, please see the Company's Form 10-K for the year ended December 31, 2002 and Form 10-Q for the quarter ended March 31, 2003 filed with the Securities and Exchange Commission. Website:www.rgonline.com R&G Financial Corporation Page 5

At At At June 30, 2003 Dec. 31, 2002 June 30, 2002 ------------- ------------- ------------- (Dollars in Thousands, except for per share data) SELECTED BALANCE SHEET DATA (Unaudited) Total assets $ 7,256,149 $ 6,277,246 $ 5,874,153 Loans receivable, net 3,286,759 2,759,689 2,438,609 Mortgage loans held for sale 248,345 258,738 229,996 Mortgage-backed and investment securities held for trading 41,200 74,757 55,048 Mortgage-backed and investment securities available for sale 3,026,455 2,556,913 2,562,293 Mortgage-backed and investment securities held to maturity 69,119 75,591 78,306 Servicing asset 127,146 142,334 146,199 Cash and cash equivalents 215,883 197,643 90,680 Deposits 3,240,607 2,802,324 2,534,722 Securities sold under agreements to repurchase 1,845,488 1,489,758 1,602,394 Notes payable 206,009 194,607 178,802 Other borrowings 1,064,539 985,790 882,624 Stockholders' equity 700,835 662,218 571,364 Common stockholders' equity 487,835 449,218 358,364 Total # of common shares outstanding 34,043,620 33,993,262 31,377,609 Common Stockholders' equity per share $ 14.33 $ 13.21 $ 11.42 Servicing portfolio 11,318,506 10,991,944 10,852,536 Book value of servicing portfolio 1.12% 1.29% 1.35% Allowance for loan losses (ALL) 34,473 32,676 27,893 Non-performing loans (NPL's) 91,007 78,199 75,614 NPL's/Total loans 2.60% 2.71% 2.95% All/Total loans 0.98% 1.13% 1.09% All/Total Non-performing loans 37.88% 41.79% 36.89%

R&G Financial Corporation Page 6

THREE MONTHS FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED JUNE 30, ENDED JUNE 30, MARCH 31, (UNAUDITED) (UNAUDITED) (UNAUDITED) ------------------------------ ------------------------------ ----------- 2003 2002 2003 2002 2003 ------------ ------------ ------------ ------------ ------------ (Dollars in Thousands, except for per share data) SELECTED INCOME STATEMENT DATA REVENUES: Net interest income $ 44,569 $ 36,049 $ 86,790 $ 68,054 $ 42,221 Provision for loan losses (4,444) (4,550) (8,664) (9,550) (4,220) Net interest income after provision for loan losses 40,125 31,499 78,126 58,504 38,001 Loan administration and servicing fees 13,201 10,320 26,402 19,624 13,201 Net gain on origination and sale of loans 44,786 15,751 77,803 33,461 33,017 Other 7,226 4,060 12,947 7,932 5,721 TOTAL REVENUES 105,338 61,630 195,278 119,521 89,940 OPERATING EXPENSES: Employee compensation and benefits 14,506 9,544 29,653 19,552 15,147 Office occupancy and equipment 6,074 4,706 11,776 8,968 5,702 Other administrative and general 42,706 18,043 73,249 33,969 30,543 TOTAL EXPENSES 63,286 32,293 114,678 62,489 51,392 Income before income taxes 42,052 29,337 80,600 57,032 38,548 Income taxes (10,602) (6,718) (20,009) (12,880) (9,407) Net income $ 31,450 $ 22,619 $ 60,591 $ 44,152 $ 29,141 Less: Preferred stock dividends (3,971) (3,918) (7,942) (7,013) (3,971) Net income available to common stockholders 27,479 18,701 52,649 37,139 25,170 Net income per common share - Basic $ 0.81 $ 0.60 $ 1.55 $ 1.19 $ 0.74 Net income per common share - Diluted $ 0.80 $ 0.59 $ 1.54 $ 1.17 $ 0.74 Average shares outstanding - Basic 34,043,100 31,306,700 34,032,966 31,301,387 34,022,719 Average shares outstanding - Diluted 34,181,137 31,654,798 34,180,949 31,654,636 34,180,759 Return on common equity 22.99% 22.01% 22.47% 22.40% 21.94% Return on assets 1.78% 1.77% 1.78% 1.78% 1.77% Total Loan Production $ 1,094,680 $ 733,216 $ 2,113,077 $ 1,310,963 $ 1,018,397

-----END PRIVACY-ENHANCED MESSAGE-----

EX-99.1

                                                                   EXHIBIT 99.1


[R&G LOGO]

FOR RELEASE:      Immediately

CONTACT:          Victor J. Galan                Joseph R. Sandoval
                  Chairman and CEO               Executive Vice President & CFO
                  (787) 766-8301                 (787) 756-2801


                R&G FINANCIAL REPORTS RECORD EARNINGS FOR SECOND
                   QUARTER AND SIX MONTHS ENDED JUNE 30, 2003

         San Juan, Puerto Rico, July 16, 2003 -- R&G Financial Corporation
("the Company") (NYSE:RGF), the financial holding company of R-G Premier Bank,
one of the fastest growing commercial banks in Puerto Rico, R-G Crown Bank, its
federal savings bank with branches in the Orlando and Tampa/St. Petersburg
Florida markets, and R&G Mortgage Corp, the second largest residential mortgage
loan originator and servicer in Puerto Rico, today reported record earnings for
the second quarter and first half of 2003.

         For the first six months of 2003, net income amounted to $60.6
million, compared to $44.2 million 2002, an improvement of 37%. For the second
quarter of 2003, net income amounted to $31.4 million compared to $22.6 million
for the second quarter of 2002, an increase of 39%. For the six months of 2003,
consolidated earnings per diluted share were $1.54, compared to $1.17 for 2002,
an increase of 32%; for the second quarter of 2003, consolidated earnings per
diluted share were $0.80, compared to $0.59 per diluted share for the second
quarter of 2002, an increase of 36%.



R&G Financial Corporation
Page 2


         These strong earning results were achieved notwithstanding impairment
charges of $27.5 million and $16.7 million (included in operating expenses)
during the first half and second quarter of 2003, respectively, on the
Company's servicing asset. These charges reflect additional increases in
mortgage prepayment rates during the period as a result of the continued low
levels of interest rates. The resulting decrease in earnings was more than
offset by increases in gain on sale and fees from mortgage loans, which were
attributable to record volumes of mortgage loan originations and sales. Total
loan production during the first half of 2003 was $2.1 billion, a 61% increase
over the first half in 2002; total loan production during the second quarter of
2003 was $1.1 billion, a 49% increase. In both periods, over 90% of the total
loan production was internally generated. Total loan production during the
second quarter was the highest amount for any given quarter in the Company's
history, surpassing the amount for the first quarter this year.

         For the second quarter of 2003, gain on the origination and sale of
loans increased 184% to $44.8 million, while the Company's net interest income
increased by 24% to $44.6 million. For the first half of 2003, gain on the
origination and sale of loans increased 133% to $77.8 million, while the
Company's net interest income increased by 28% to $86.8 million.



R&G Financial Corporation
Page 3


         Other fee income for the first half of 2003 was $12.9 million,
representing a 63% increase over the comparative period in 2002. The increase
reflects the added contributions made by the Company's insurance agency and its
broker-dealer subsidiary.

         Commenting on the significant results for the second quarter and first
half of 2003, Mr. Victor J. Galan, Chairman of the Board and CEO of the Company
indicated:

         "We are pleased to report these excellent results during the quarter
ended June 30, 2003. The increase in earnings reflects another strong quarter
of loan production, surpassing the $1 billion mark for the second consecutive
quarter. Our loan portfolio has grown by close to $250 million during the first
half of 2003, due to strong loan demand both in Puerto Rico and Central
Florida, which position R&G very well for the future. As a result of these
strong results, together with the continuing strong demand we are experiencing
both in commercial and residential lending, we remain optimistic about our
future performance."

         R&G Financial currently in its 31st year of operations, is a
diversified financial holding company with operations in Puerto Rico and the
United States, providing banking, mortgage banking, investments, consumer
finance and insurance through its wholly-owned subsidiaries: R-G Premier Bank
of Puerto Rico, R-G Crown Bank, R&G Mortgage Corp., Mortgage Store of Puerto
Rico, Inc., a subsidiary of R&G Mortgage, Continental Capital Corporation, R-G
Crown's



R&G Financial Corporation
Page 4


New York, North Carolina and Central-Florida based mortgage banking subsidiary,
Home and Property Insurance Corporation, its Puerto Rico insurance agency, and
R-G Investments Corporation, its Puerto Rico broker-dealer. As of June 30, 2003
the Company, with total assets of $7.3 billion, operated 31 bank branches in
Puerto Rico, 15 bank branches in the Orlando and Tampa/St. Petersburg Florida
markets, 6 mortgage and 6 commercial lending offices in the United States, and
43 mortgage offices in Puerto Rico, including 24 facilities located with R-G
Premier's branches.

"SAFE HARBOR" STATEMENT UNDER THE PRIVACY SECURITIES LITIGATION REFORM ACT OF
1995

         Statements made in this Press Release that relate to future events are
made pursuant to the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based upon current expectations and R&G
Financial assumes no obligation to update this information. Because actual
results may differ materially from expectation, R&G Financial cautions readers
not to place undue reliance on these statements. For a detailed discussion of
the important factors affecting R&G Financial, please see the Company's Form
10-K for the year ended December 31, 2002 and Form 10-Q for the quarter ended
March 31, 2003 filed with the Securities and Exchange Commission.


Website:www.rgonline.com



R&G Financial Corporation
Page 5




                                                              At                      At                       At
                                                         June 30, 2003           Dec. 31, 2002           June 30, 2002
                                                         -------------           -------------           -------------

(Dollars in Thousands,
  except for per share data)

                                                                                                
SELECTED BALANCE SHEET DATA
(Unaudited)

Total assets                                              $ 7,256,149             $ 6,277,246             $ 5,874,153
Loans receivable, net                                       3,286,759               2,759,689               2,438,609
Mortgage loans held for sale                                  248,345                 258,738                 229,996
Mortgage-backed and investment securities
  held for trading                                             41,200                  74,757                  55,048
Mortgage-backed and investment securities
  available for sale                                        3,026,455               2,556,913               2,562,293
Mortgage-backed and investment securities held
  to maturity                                                  69,119                  75,591                  78,306
Servicing asset                                               127,146                 142,334                 146,199
Cash and cash equivalents                                     215,883                 197,643                  90,680
Deposits                                                    3,240,607               2,802,324               2,534,722
Securities sold under agreements to repurchase              1,845,488               1,489,758               1,602,394
Notes payable                                                 206,009                 194,607                 178,802
Other borrowings                                            1,064,539                 985,790                 882,624
Stockholders' equity                                          700,835                 662,218                 571,364
Common stockholders' equity                                   487,835                 449,218                 358,364
Total # of common shares outstanding                       34,043,620              33,993,262              31,377,609
Common Stockholders' equity per share                     $     14.33             $     13.21             $     11.42
Servicing portfolio                                        11,318,506              10,991,944              10,852,536
Book value of servicing portfolio                                1.12%                   1.29%                   1.35%
Allowance for loan losses (ALL)                                34,473                  32,676                  27,893
Non-performing loans (NPL's)                                   91,007                  78,199                  75,614
NPL's/Total loans                                                2.60%                   2.71%                   2.95%
All/Total loans                                                  0.98%                   1.13%                   1.09%
All/Total Non-performing loans                                  37.88%                  41.79%                  36.89%




R&G Financial Corporation
Page 6




                                                                                                                  THREE MONTHS
                                            FOR THE THREE MONTHS ENDED              FOR THE SIX MONTHS               ENDED
                                                     JUNE 30,                         ENDED JUNE 30,               MARCH 31,
                                                   (UNAUDITED)                         (UNAUDITED)                (UNAUDITED)
                                          ------------------------------      ------------------------------      -----------
                                              2003              2002             2003               2002              2003
                                          ------------      ------------      ------------      ------------      ------------
                                                               (Dollars in Thousands, except for per share data)

                                                                                                   
SELECTED INCOME STATEMENT DATA

REVENUES:
Net interest income                       $     44,569      $     36,049      $     86,790      $     68,054      $     42,221
Provision for loan losses                       (4,444)           (4,550)           (8,664)           (9,550)           (4,220)
Net interest income after provision
  for loan losses                               40,125            31,499            78,126            58,504            38,001

Loan administration and servicing fees          13,201            10,320            26,402            19,624            13,201
Net gain on origination and sale
  of loans                                      44,786            15,751            77,803            33,461            33,017
Other                                            7,226             4,060            12,947             7,932             5,721

    TOTAL REVENUES                             105,338            61,630           195,278           119,521            89,940

OPERATING EXPENSES:
Employee compensation and benefits              14,506             9,544            29,653            19,552            15,147
Office occupancy and equipment                   6,074             4,706            11,776             8,968             5,702
Other administrative and general                42,706            18,043            73,249            33,969            30,543

   TOTAL EXPENSES                               63,286            32,293           114,678            62,489            51,392

Income before income taxes                      42,052            29,337            80,600            57,032            38,548
Income taxes                                   (10,602)           (6,718)          (20,009)          (12,880)           (9,407)
Net income                                $     31,450      $     22,619      $     60,591      $     44,152      $     29,141
Less:  Preferred stock dividends                (3,971)           (3,918)           (7,942)           (7,013)           (3,971)
Net income available to
  common stockholders                           27,479            18,701            52,649            37,139            25,170
Net income per common share - Basic       $       0.81      $       0.60      $       1.55      $       1.19      $       0.74
Net income per common share -
  Diluted                                 $       0.80      $       0.59      $       1.54      $       1.17      $       0.74
Average shares outstanding - Basic          34,043,100        31,306,700        34,032,966        31,301,387        34,022,719
Average shares outstanding - Diluted        34,181,137        31,654,798        34,180,949        31,654,636        34,180,759
Return on common equity                          22.99%            22.01%            22.47%            22.40%            21.94%
Return on assets                                  1.78%             1.77%             1.78%             1.78%             1.77%
Total Loan Production                     $  1,094,680      $    733,216      $  2,113,077      $  1,310,963      $  1,018,397