8-K

UNITED STATES
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

Date of Report (Date of earliest event reported): July 30, 2008

ORIENTAL FINANCIAL GROUP INC.

(Exact Name of Registrant as Specified in its Charter)

Commonwealth of Puerto Rico	001-12647	66-0538893
(State or other Jurisdiction of Incorporation)	(Commission File No.)	(I.R.S. Employer Identification No.)
Oriental Center
Professional Offices Park
997 San Roberto Street, 10th Floor
San Juan, Puerto Rico		00926
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (787) 771-6800

(Former Name or Former Address, if Changed Since Last Report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

     On July 30, 2008, Oriental Financial Group Inc. (the “Company”) announced the results for the quarter and six-month period ended June 30, 2008. A copy of the Company’s press release is attached as an exhibit to this report.

Item 9.01. Financial Statements and Exhibits.

     (d) Exhibits

Exhibit No.	Description of Document
99	Press release by the Company dated July 30, 2008.

2

SIGNATURES

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

	ORIENTAL FINANCIAL GROUP INC.
Date: July 30, 2008	By:	/s/ José Rafael Fernández
		José Rafael Fernández
		President and Chief Executive Officer

EX-99

Exhibit 99

Puerto Rico Contact:
Marilyn Santiago-Colón,
Oriental Financial Group Inc.
(787) 993-4648

U.S. Contact:
Steven Anreder and Gary Fishman,
Anreder & Company
(212) 532-3232

ORIENTAL FINANCIAL GROUP REPORTS STRONG OPERATING RESULTS
FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2008

SAN JUAN, Puerto Rico, July 30, 2008 — Oriental Financial Group Inc. (NYSE: OFG) today announced results for the second quarter and six months ended June 30, 2008.

For the quarter, the Group reported income available to common shareholders of $13.2 million, an increase of 152.1% over the year ago quarter’s $5.2 million. This represents a return on average assets of 0.95% and a return on average common equity of 20.65%, compared with 0.49% and 7.87%, respectively, in the second quarter of 2007. Earnings per common share (basic and diluted) of $0.54 were 157.1% greater than the $0.21 reported in the year ago quarter.

Oriental’s second quarter 2008 results did not include any meaningful pre-tax gains or losses from the sale of securities, derivatives, other investments or foreclosed real estate, which benefited the year ago quarter by approximately $1.3 million and the trailing quarter by $1.4 million; or income tax benefits, which added $2.5 million to the results for the trailing quarter.

For the six months, the Group reported income available to common shareholders of $28.9 million, an increase of 92.0% over the year ago period. This represents a return on average assets of 1.01% and a return on average common equity of 20.64%, compared with 0.70% and 11.22%, respectively, in the first six months of 2007. Earnings per common share (basic and diluted) of $1.19 were 95.1% greater than the $0.61 reported in the 2007 period.

Commentary and Outlook

“The strategies we have in place enabled us to continue to perform well despite the turbulent credit markets and the recession in Puerto Rico,” said José Rafael Fernández, President and Chief Executive Officer. “Looking ahead, Oriental is well positioned to continue to benefit from its strategies.” He said highlights for the second quarter included:

• The sixth consecutive quarter of net interest margin improvement, to 1.90% from 1.40% in the year ago quarter and 1.68% in the previous quarter

• Significant reduction in cost of funds to 4.01%, down 9.7% from the year ago quarter and down 4.8% from the previous quarter

• Growth in loan originations, which totaled $92.6 million for the second quarter, representing increases of 7.2% from the year ago quarter and 39.8% from the previous quarter, while maintaining high credit quality

• The first sequential quarter reduction in non-performing loans in two years, the smallest sequential quarter increase in non-performing assets in the same time period, and a continued low level of net credit losses

• Sequential quarter increases of regulatory capital ratios

• A continued year over year increase in profitability even though the Group’s total assets are at the same level as at December 31, 2007 and slightly lower than at March 31, 2008

Second Quarter 2008 Income Statement

Net interest income of $28.4 million increased 60.7% from the year ago quarter and 14.2% from the previous quarter, primarily because of a higher overall yield and higher average balances of interest-earning assets and lower average costs of deposits and borrowings. Interest income from investment securities of $65.5 million increased 5.1% sequentially, due principally to Oriental having a full quarter’s benefit of higher yielding securities purchased in the first quarter of 2008. Interest income from loans of $19.7 million declined 0.7% sequentially, primarily reflecting reduced yields on variable rate commercial loans due to lower prevailing interest rates.

Total banking and financial service revenues of $6.5 million were approximately level with the year ago quarter, as increased revenues from financial services and mortgage banking activities offset lower banking services revenue. Growth in financial services reflects Oriental’s market strategy, focusing on financial planning for mid and high net worth clients. Assets under management, which generate recurring fees for the Group’s financial service businesses, reached $3.2 billion at June 30, 2008, an increase of 8.8% from a year ago and 0.4% from March 31, 2008, despite the second quarter 2008 decline in the stock and bond markets.

Non-interest expenses of $18.1 million increased 3.5% from the year ago quarter and 2.0% from the previous quarter. The efficiency ratio improved to 51.82% from 72.30% in the year ago quarter and 54.69% in the previous quarter.

June 30, 2008 Balance Sheet Highlights

Total interest earning assets of approximately $5.9 billion increased 17.1% over a year ago and declined 1.5% from the end of the previous quarter. Year over year, the investment securities portfolio grew 24.4% in line with management’s strategy of supplementing the generally low level of loan originations in 2007 with the purchase of investment securities at a favorable spread.

During the last twelve months the held to maturity (HTM) investment portfolio was reduced by $526.4 million, due to maturities and repayments, with the proceeds principally reinvested in the available for sale (AFS) investment portfolio at more favorable spreads. Sequentially, investment securities balances declined 2.5% due to repayments of securities in both the HTM and AFS portfolios and mark to market of securities in the AFS portfolio.

Total loans, net, declined 4.2% year over year, but increased 2.8% from the end of the preceding quarter. Mortgage originations for the quarter of $75.5 million were up 113.6% from the year ago quarter and 69.5% from the previous quarter, with an average FICO score of 719 and an average loan to value ratio of 82%. Rebounding from a year ago, commercial originations continued in the $15 million range as in the previous quarter.

During the second quarter of 2008, Oriental used a $117.4 million increase in wholesale certificates of deposit as a more economical and flexible alternative for replacing higher cost retail deposits and short-term repurchase agreements. The change in funding mix, along with lower interest rates, helped to reduce total interest expense as compared to the previous quarter.

Credit Quality

Non-performing loans declined 0.48% during the quarter. Net credit losses year to date remain even with the year ago period at 0.33% of average loans outstanding. The allowance for loan losses stood at $11.9 million (0.97% of total loans) at June 30, 2008, compared to $11.1 million (0.93% of total loans) at March 31, 2008.

Based on the Group’s historical performance, Oriental does not expect its non-performing loans to convert into significantly higher losses as most 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. Furthermore, Oriental has never been active in negative amortization loans or adjustable rate mortgage loans.

Capital

Stockholders’ equity of $301.2 million at June 30, 2008 is down 3.9% from a year ago and 11.1% from March 31, 2008. The change reflects a reduction in the fair value of the AFS portfolio, primarily due to the widening of credit spreads in the second quarter of 2008. The Group has the intent and ability to hold all of the securities in its investment portfolio with unrealized losses at June 30, 2008 until a period of time sufficient to allow for the recovery of their fair value up to or beyond their cost, and closely monitors them for any change in value that may be considered to be other than temporary.

The Group maintains capital ratios comfortably in excess of regulatory requirements. At June 30, 2008, the Leverage Capital Ratio was 6.80% (1.7 times the minimum of 4.00%), the Tier I Risk-Based Capital Ratio was 17.26% (4.3 times the minimum of 4.00%), and the Total Risk-Based Capital Ratio was 17.76% (2.2 times the minimum of 8.00%).

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 44^th year in business, Oriental provides a full range of mortgage, commercial and consumer banking services through 24 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												SIX-MONTH PERIOD ENDED
	30-Jun-08			30-Jun-07			%			31-Mar-08			30-Jun-08			30-Jun-07			%
Summary of Operations (Dollars in thousands, except per share data):
Interest Income:
Loans	$	19,682		$	22,315			-11.8	%	$	19,828		$	39,510		$	44,163			-10.5	%
Investment securities and other		65,476			48,486			35.0	%		62,273			127,749			88,137			44.9	%
Total interest income		85,158			70,801			20.3	%		82,101			167,259			132,300			26.4	%
Interest Expense:
Deposits		12,265			13,601			-9.8	%		12,429			24,694			25,849			-4.5	%
Securities sold under agreements to repurchase		40,208			36,546			10.0	%		40,240			80,448			69,334			16.0	%
Other borrowed funds		4,250			2,964			43.4	%		4,523			8,773			6,039			45.3	%
Total interest expense		56,723			53,111			6.8	%		57,192			113,915			101,222			12.5	%
Net interest income		28,435			17,690			60.7	%		24,909			53,344			31,078			71.6	%
Provision for loan losses		1,980			1,375			44.0	%		1,650			3,630			2,450			48.2	%
Net interest income after provision for loan losses		26,455			16,315			62.2	%		23,259			49,714			28,628			73.7	%
Non-Interest Income:
Financial service revenues		4,500			4,049			11.1	%		4,240			8,740			8,892			-1.7	%
Banking service revenues		1,395			2,265			-38.4	%		1,527			2,922			4,139			-29.4	%
Investment banking revenues		12			—			100.0	%		738			750			—			100.0	%
Mortgage banking activities		545			170			220.6	%		1,006			1,551			232			568.5	%
Total banking and financial service revenues		6,452			6,484			-0.5	%		7,511			13,963			13,263			5.3	%
Net gain (loss) on:
Sale of securities		214			12			1683.3	%		9,297			9,511			371			2463.6	%
Derivatives		228			88			159.1	%		(7,803	)		(7,575	)		8,384			-190.4	%
Other investments		16			1,159			-98.6	%		110			126			777			-83.8	%
Foreclosed real estate		(260	)		30			-966.7	%		(250	)		(510	)		67			-861.2	%
Other		—			23			-100.0	%		(1	)		(1	)		65			-101.5	%
Total non-interest income, net		6,650			7,796			-14.7	%		8,864			15,514			22,927			-32.3	%
Non-Interest Expenses:
Compensation and employee benefits		7,824			6,916			13.1	%		7,715			15,539			13,661			13.7	%
Occupancy and equipment		3,365			3,343			0.7	%		3,287			6,652			6,337			5.0	%
Professional and service fees		2,267			1,984			14.3	%		1,880			4,147			3,522			17.7	%
Advertising and business promotion		836			1,118			-25.2	%		1,074			1,910			1,911			-0.1	%
Directors and investor relations		303			769			-60.6	%		278			581			1,300			-55.3	%
Loan servicing expenses		339			540			-37.2	%		331			670			1,063			-37.0	%
Taxes, other than payroll and income taxes		607			489			24.1	%		611			1,218			937			30.0	%
Electronic banking charges		396			457			-13.3	%		418			814			916			-11.1	%
Clearing and wrap fees expenses		313			310			1.0	%		294			607			675			-10.1	%
Communication		325			308			5.5	%		325			650			646			0.6	%
Insurance		579			211			174.4	%		602			1,181			427			176.6	%
Foreclosure expenses		201			338			-40.5	%		150			351			405			-13.3	%
Printing, postage, stationery and supplies		245			189			29.6	%		277			522			391			33.5	%
Other		480			505			-5.0	%		488			968			1,113			-13.0	%
Total non-interest expenses		18,080			17,477			3.5	%		17,730			35,810			33,304			7.5	%
Income before income taxes		15,025			6,634			126.5	%		14,393			29,418			18,251			61.2	%
Income tax expense (benefit)		598			187			219.8	%		(2,455	)		(1,857	)		811			-329.0	%
Net income		14,427			6,447			123.8	%		16,848			31,275			17,440			79.3	%
Less: Dividends on preferred stock		(1,200	)		(1,201	)		0.1	%		(1,201	)		(2,401	)		(2,401	)		—
Income available to common shareholders	$	13,227		$	5,246			152.1	%	$	15,647		$	28,874		$	15,039			92.0	%

ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)

	QUARTER ENDED												SIX-MONTH PERIOD ENDED
	30-Jun-08			30-Jun-07			%			31-Mar-08			30-Jun-08			30-Jun-07			%
(Dollars in thousands, except per share data):
EARNINGS PER SHARE
Basic	$	0.54		$	0.21			157.1	%	$	0.65		$	1.19		$	0.61			95.1	%
Diluted	$	0.54		$	0.21			157.1	%	$	0.64		$	1.19		$	0.61			95.1	%
COMMON STOCK DATA
Average common shares outstanding		24,290			24,488			-0.8	%		24,164			24,227			24,480			-1.0	%
Average potential common shares-options		94			75			25.3	%		125			110			97			13.4	%
Total average shares outstanding and equivalents		24,384			24,563			-0.7	%		24,289			24,337			24,577			-1.0	%
Cash dividends per share of common stock	$	0.14		$	0.14			—		$	0.14		$	0.28		$	0.28			—
Cash dividends declared on common shares	$	3,404		$	3,432			-0.8	%	$	3,399		$	6,803		$	6,858			-0.8	%
Pay-out ratio		25.93	%		66.67	%		-61.1	%		21.54	%		23.53	%		45.90	%		-48.7	%
SELECTED FINANCIAL DATA
PERFORMANCE RATIOS:
Return on average assets		0.95	%		0.49	%		93.9	%		1.06	%		1.01	%		0.70	%		44.3	%
Return on average common equity		20.65	%		7.87	%		162.4	%		20.63	%		20.64	%		11.22	%		83.9	%
Efficiency ratio		51.82	%		72.30	%		-28.3	%		54.69	%		53.20	%		75.11	%		-29.2	%
TAX EQUIVALENT SPREAD
Interest-earning assets		5.69	%		5.61	%		1.4	%		5.55	%		5.65	%		5.54	%		2.0	%
Tax equivalent adjustment		1.88	%		2.13	%		-11.7	%		1.84	%		1.87	%		2.12	%		-11.8	%
Interest-earning assets — tax equivalent		7.57	%		7.74	%		-2.2	%		7.39	%		7.52	%		7.66	%		-1.8	%
Interest-bearing liabilities		4.01	%		4.44	%		-9.7	%		4.21	%		4.12	%		4.50	%		-8.4	%
Tax equivalent interest rate spread		3.56	%		3.30	%		7.9	%		3.18	%		3.40	%		3.16	%		7.6	%
Tax equivalent interest rate margin		3.78	%		3.53	%		7.1	%		3.52	%		3.67	%		3.42	%		7.3	%
NORMAL SPREAD
Investments		5.48	%		5.12	%		7.0	%		5.28	%		5.38	%		4.99	%		7.8	%
Loans		6.52	%		7.10	%		-8.2	%		6.66	%		6.74	%		7.09	%		-4.9	%
Interest-earning assets		5.69	%		5.61	%		1.4	%		5.55	%		5.65	%		5.54	%		2.0	%
Deposits		3.44	%		4.25	%		-19.1	%		4.14	%		3.82	%		4.15	%		-8.0	%
Borrowings		4.20	%		4.51	%		-6.9	%		4.23	%		4.21	%		4.63	%		-9.1	%
Interest-bearing liabilities		4.01	%		4.44	%		-9.7	%		4.21	%		4.12	%		4.50	%		-8.4	%
Interest rate spread		1.68	%		1.17	%		43.6	%		1.34	%		1.53	%		1.04	%		47.1	%
Interest rate margin		1.90	%		1.40	%		35.7	%		1.68	%		1.80	%		1.30	%		38.5	%
AVERAGE BALANCES
Investments	$	4,776,560		$	3,789,419			26.0	%	$	4,721,542		$	4,749,050		$	3,531,113			34.5	%
Loans		1,208,098			1,257,308			-3.9	%		1,191,305			1,172,878			1,246,499			-5.9	%
Interest-earning assets	$	5,984,658		$	5,046,727			18.6	%	$	5,912,847		$	5,921,928		$	4,777,612			24.0	%
Deposits	$	1,427,904		$	1,280,353			11.5	%	$	1,200,361		$	1,293,979		$	1,246,817			3.8	%
Borrowings		4,236,568			3,500,753			21.0	%		4,233,176			4,234,872			3,254,868			30.1	%
Interest-bearing liabilities	$	5,664,472		$	4,781,106			18.5	%	$	5,433,537		$	5,528,851		$	4,501,685			22.8	%

	ORIENTAL FINANCIAL GROUP Financial Summary
	(NYSE: OFG)

	AS OF
	30-Jun-08			30-Jun-07			%			31-Mar-08			31-Dec-07
(Dollars in thousands)
BALANCE SHEET
Cash and due from banks	$	56,486		$	75,207			-24.9	%	$	50,052		$	88,983
Interest-earning assets:
Investments:
Trading securities		1,311			548			139.2	%		93			1,122
Investment securities available-for-sale, at fair value with amortized cost of $3,467,005 (March 31, 2008-$3,497,906; December 31, 2007- $3,063,763; June 30, 2007-$1,940,707)		3,382,307			1,906,328			77.4	%		3,465,741			3,069,282
Investment securities held-to-maturity, at amortized cost with fair value of $1,198,736 (March 31, 2008-$1,263,260; December 31, 2007- $1,478,112; June 30, 2007-$1,714,608 )		1,238,147			1,764,585			-29.8	%		1,277,171			1,492,887
Federal Home Loan Bank (FHLB) stock, at cost		22,062			13,909			58.6	%		20,658			20,658
Securities purchased under agreements to resell		—			16,200			-100.0	%		—			—
Other investments		150			31,770			-99.5	%		150			1,661
Total investments		4,643,977			3,733,340			24.4	%		4,763,813			4,585,610
Loans:
Mortgage loans		995,085			954,097			4.3	%		989,284			989,487
Commercial loans, mainly secured by real estate		170,844			232,164			-26.4	%		156,508			157,198
Consumer loans		25,479			30,905			-17.6	%		28,178			29,245
Loans receivable, gross		1,191,408			1,217,166			-2.1	%		1,173,970			1,175,930
Less: Deferred loan fees, net		(3,488	)		(2,589	)		-34.7	%		(3,022	)		(2,875	)
Loans receivable		1,187,920			1,214,577			-2.2	%		1,170,948			1,173,055
Allowance for loan losses		(11,885	)		(8,432	)		-41.0	%		(11,092	)		(10,161	)
Loans receivable, net		1,176,035			1,206,145			-2.5	%		1,159,856			1,162,894
Mortgage loans held for sale		42,122			66,032			-36.2	%		25,577			16,672
Total loans, net		1,218,157			1,272,177			-4.2	%		1,185,433			1,179,566
Total interest-earning assets		5,862,134			5,005,517			17.1	%		5,949,246			5,765,176
Securities and loans sold but not yet delivered		—			46,461			-100.0	%		26,995			—
Accrued interest receivable		42,842			45,807			-6.5	%		37,026			52,315
Premises and equipment, net		21,378			19,390			10.3	%		21,587			21,779
Deferred tax asset, net		17,249			18,005			-4.2	%		12,931			10,362
Foreclosed real estate		4,906			4,971			-1.3	%		4,119			4,207
Investment in equity indexed options		27,641			43,358			-36.2	%		34,475			40,709
Investment in limited partnership		—			11,988			-100.0	%		—			—
Prepaid expenses		9,996			3,504			185.3	%		4,532			2,714
Investment in Statutory Trusts		1,086			1,086			—			1,086			1,086
Goodwill		2,006			2,006			—			2,006			2,006
Servicing asset		2,934			1,419			106.8	%		2,819			2,526
Accounts receivable and other assets		11,521			11,930			-3.4	%		11,245			7,992
Total assets	$	6,060,179		$	5,290,649			14.5	%	$	6,158,119		$	5,999,855
Interest-bearing liabilities:
Deposits:
Non-interest bearing demand deposits	$	55,936		$	44,867			24.7	%	$	56,232		$	49,998
Interest-bearing demand deposits		68,204			66,819			2.1	%		72,041			69,154
Savings accounts		407,911			326,124			25.1	%		453,711			387,790
Individual retirement accounts		293,354			321,342			-8.7	%		310,907			317,744
Retail certificates of deposit		271,554			278,089			-2.3	%		271,053			232,239
Total Retail Deposits		1,096,959			1,037,241			5.8	%		1,163,944			1,056,925
Wholesale certificates of deposit		395,460			292,421			35.2	%		278,044			189,495
Total deposits		1,492,419			1,329,662			12.2	%		1,441,988			1,246,420

	ORIENTAL FINANCIAL GROUP Financial Summary
	(NYSE: OFG)

	AS OF
	30-Jun-08			30-Jun-07			%			31-Mar-08			31-Dec-07
(Dollars in thousands)
Borrowings:
Federal funds purchased and other short term borrowings		41,583			24,641			68.8	%		36,517			27,460
Securities sold under agreements to repurchase		3,810,752			3,283,796			16.0	%		3,847,633			3,861,411
Advances from FHLB		331,895			180,895			83.5	%		331,853			331,898
Subordinated capital notes		36,083			36,083			—			36,083			36,083
Total borrowings		4,220,313			3,525,415			19.7	%		4,252,086			4,256,852
Total interest-bearing liabilities		5,712,732			4,855,077			17.7	%		5,694,074			5,503,272
Securities and loans purchased but not yet received		23,103			100,067			-76.9	%		101,375			111,431
Accrued expenses and other liabilities		23,177			22,030			5.2	%		23,912			25,691
Total liabilities		5,759,012			4,977,174			15.7	%		5,819,361			5,640,394
Preferred Equity		68,000			68,000			—			68,000			68,000
Common Equity:
Common stock		25,736			25,543			0.8	%		25,732			25,557
Additional paid-in capital		212,282			209,860			1.2	%		212,056			210,073
Legal surplus		43,533			38,312			13.6	%		42,140			40,573
Retained earnings		64,406			32,883			95.9	%		55,977			45,296
Treasury stock, at cost		(17,136	)		(13,311	)		-28.7	%		(17,184	)		(17,023	)
Accumulated other comprehensive loss		(95,654	)		(47,812	)		-100.1	%		(47,963	)		(13,015	)
Total common equity		233,167			245,475			-5.0	%		270,758			291,461
Stockholders’ equity		301,167			313,475			-3.9	%		338,758			359,461
Total liabilities and stockholders’ equity	$	6,060,179		$	5,290,649			14.5	%	$	6,158,119		$	5,999,855
CAPITAL RATIOS
Leverage Capital Ratio		6.80	%		7.23	%		-5.9	%		6.67	%		6.69	%
Minimum Leverage Capital Ratio Required		4.00	%		4.00	%					4.00	%		4.00	%
Actual Tier 1 Capital	$	413,767		$	381,489			8.5	%	$	407,984		$	396,309
Minimum Tier 1 Capital Required	$	243,414		$	210,972			15.4	%	$	244,590		$	236,847
Tier 1 Risk-Based Capital Ratio		17.26	%		19.32	%		-10.7	%		17.02	%		18.59	%
Minimum Tier 1 Risk-Based Capital Ratio Required		4.00	%		4.00	%					4.00	%		4.00	%
Actual Tier 1 Risk-Based Capital	$	413,767		$	381,489			8.5	%	$	407,984		$	396,309
Minimum Tier 1 Risk-Based Capital Required	$	95,867		$	78,970			21.4	%	$	95,864		$	85,292
Total Risk-Based Capital Ratio		17.76	%		19.75	%		-10.1	%		17.49	%		19.06	%
Minimum Total Risk-Based Capital Ratio Required		8.00	%		8.00	%					8.00	%		8.00	%
Actual Total Risk-Based Capital	$	425,652		$	389,921			9.2	%	$	419,075		$	406,470
Minimum Total Risk-Based Capital Required	$	191,735		$	157,940			21.4	%	$	191,728		$	170,583
Tangible Common Equity to Total Assets		3.81	%		4.60	%		-17.2	%		4.36	%		4.82	%
SELECTED FINANCIAL DATA AT PERIOD-END
Common shares outstanding at end of period		24,292			24,520			-0.9	%		24,285			24,121
Book value per common share	$	9.60		$	9.99			-3.9	%	$	11.14		$	12.08
Trust Assets Managed	$	1,936,804		$	1,881,043			2.96	%	$	1,927,638		$	1,962,226
Broker-Dealer Assets Gathered		1,294,010			1,088,336			18.9	%		1,290,973			1,281,168
Total Assets Managed		3,230,814			2,969,379			8.8	%		3,218,611			3,243,394
Assets owned		6,060,179			5,290,649			14.5	%		6,158,119			5,999,855
Total financial assets managed and owned	$	9,290,993		$	8,260,028			12.5	%	$	9,376,730		$	9,243,249
Number of financial centers		24			24			—			24			24

ORIENTAL FINANCIAL GROUP
Financial Summary
(NYSE: OFG)

	QUARTER ENDED												SIX-MONTH PERIOD ENDED
	30-Jun-08			30-Jun-07			%			31-Mar-08			30-Jun-08			30-Jun-07			%
(Dollars in thousands)
Loan Production and Purchases Summary:
Mortgage loans production	$	75,549		$	35,368			113.6	%	$	44,578		$	120,127		$	86,305			39.2	%
Mortgage loans purchased		482			44,107			-98.9	%		4,691			5,173			48,679			-89.4	%
Total mortgage		76,031			79,475			-4.3	%		49,269			125,300			134,984			-7.2	%
Commercial		15,171			5,393			181.3	%		15,737			30,908			20,532			50.5	%
Consumer		1,421			1,501			-5.3	%		1,233			2,654			3,134			-15.3	%
Total loan production and purchases	$	92,623		$	86,369			7.2	%	$	66,239		$	158,862		$	158,650			0.1	%
CREDIT DATA
Net credit losses (recoveries):
Mortgage	$	314		$	480			-34.6	%	$	166		$	480		$	1,026			-53.2	%
Commercial		141			1			14000.0	%		(13	)		128			(8	)		1700.0	%
Consumer		732			508			44.1	%		566			1,298			1,016			27.8	%
Total net credit losses	$	1,187		$	989			20.0	%	$	719		$	1,906		$	2,034			-6.3	%
Net credit losses to average loans outstanding		0.39	%		0.31	%		25.8	%		0.24	%		0.33	%		0.33	%		—

	AS OF
	30-Jun-08			30-Jun-07			%			31-Mar-08
Allowance for loan losses	$	11,885		$	8,432			41.00	%	$	11,092
Allowance coverage ratios:
Allowance for loan losses to total loans		0.97	%		0.65	%		49.23	%		0.93	%
Allowance for loan losses to non-performing loans		17.27	%		16.70	%		3.40	%		16.04	%
Allowance for loan losses to non-residential non-performing loans		299.67	%		217.30	%		37.90	%		289.16	%
Non-performing assets summary:
Mortgage	$	64,866		$	46,626			39.10	%	$	65,332
Commercial, mainly real estate		3,026			3,204			-5.60	%		2,754
Consumer		940			670			40.30	%		1,081
Non-performing loans		68,832			50,500			36.30	%		69,167
Foreclosed properties		4,906			4,971			-1.30	%		4,119
Non-performing assets	$	73,738		$	55,471			32.90	%	$	73,286
Non-performing loans to total loans		5.60	%		3.94	%		42.10	%		5.78	%
Non-performing loans to total assets		1.14	%		0.95	%		20.00	%		1.12	%
Non-performing assets to total assets		1.22	%		1.05	%		16.20	%		1.19	%
Non-performing assets to total capital		24.48	%		17.70	%		38.30	%		21.63	%