Oriental Financial Group Inc. (NYSE: OFG) today announced plans for the
integration of Banco Bilbao Vizcaya Argentaria Puerto Rico (BBVA PR),
which Oriental acquired in late December, and the combined companies’
branding and business strategy.
José Rafael Fernández, President, Chief Executive Officer and Vice
Chairman, said the acquisition is a milestone in Oriental’s long history
of service, innovation and singular dedication to Puerto Rico.
“Oriental is now the best capitalized, locally controlled bank, solely
focused on serving the needs of Puerto Rico’s individuals and
businesses,” he said. “That is why we have named our integration program
‘Juntos Somos Más,’ which in English means ‘Together We Are More’.”
Mr. Fernández said the combined companies, now under the Oriental name,
are able to deliver banking and wealth management products and services
to individuals and businesses throughout Puerto Rico.
“Oriental wants to help our clients achieve more and get more done,” he
said. “With our sound financial structure and a dedicated team of more
than 1,700 people, our mission is to help our clients, and the
communities we serve, by building and retaining wealth for them and
their future generations. In so doing, we will also benefit our
supportive investors, who helped make this day possible.”
Leading Market Positions
In terms of size, Oriental Bank now holds leading market positions in
Second largest branch network, with 64 financial centers covering all
key markets on the island. Before the acquisition, Oriental Bank was
ranked 7th with 28 financial centers.
Third largest share of core retail and commercial deposits, with
approximately $4.9 billion in balances, equal to 13% market share.
Before, Oriental Bank was ranked 6th with a 5% share.
Third largest in Puerto Rico assets, with approximately $9.3 billion.
Previously, Oriental Bank was ranked 5th with $6 billion.
Approximately 60% of Oriental Bank’s assets are now loans compared to
In terms of products and services, Oriental Bank is now a leader in:
Auto loans and leases
Commercial lending and banking for middle market and small businesses
Wealth management, including trust and retirement services
Oriental and BBVA PR’s franchises are highly complementary to each
other. They will provide Oriental with a strategic advantage in serving
a market that desires personalized attention, unparalleled customer
service, and access to a broad array of competitively priced banking and
financial products and services.
BBVA PR has substantial commercial banking and auto lending
operations, and its management has significant retail and business
Oriental has substantial wealth management operations, and its
management has significant retail and business trust and retirement
There is great synergy between Oriental and BBVA PR’s customer
Oriental Bank plans for a seamless integration in 2013.
The first businesses to be combined are expected to be wealth
management, residential mortgage, and auto loan and leasing.
All lending, deposit and branch operations will be fully combined in
the fourth quarter.
To offer increased accessibility to transactional services, Oriental
Bank and former BBVA PR branches will have access to each bank’s
systems. Today, Oriental is offering these services at 7 branches, but
will be expanding it to the rest of the network rapidly.
ATM service will be seamless as clients will instantly have access
free-of-charge to an expanded network of more than 120 ATMs throughout
Branding & Advertising
Oriental plans to streamline the look and feel of its branding to
achieve a more powerful and recognizable market statement.
The company’s logo will be “Oriental” in orange in the same typeface,
with no added design. This is intended to refresh and modernize the
Oriental brand focusing on simplicity and agility.
Each product or service will be identified underneath the Oriental
logo, combining Oriental’s iconic orange color with hints of purple to
make the new branding more distinct and service-oriented versus the
standard bank-like approach.
Oriental plans to support the rollout of the new branding and
marketing throughout 2013 with the largest advertising campaign in its
history, with presence in all media outlets, including: newspaper,
television, radio, billboard and internet ads, direct mail and
internal and external signage to reach current customers and attract
Creating a Strong, Market Leading Institution
The acquisition of BBVA Puerto Rico’s operations completes the strategic
initiative begun by Oriental in 2010 to transform itself by reducing its
dependence on investment securities and wholesale funding, and expand
its traditional commercial and consumer banking and wealth management
In connection with the acquisition, Oriental in December completed the
planned deleveraging of approximately $1.3 billion on its balance sheet.
“In creating a strong, market leading institution, with a robust retail
and commercial banking and financial services platform, the overarching
goal is to improve Oriental’s prospects for growth, generate greater
recurring revenue and income, expand the net interest margin, improve
earnings stability and predictability and, ultimately, enhance our
market valuation,” said Mr. Fernández.
About Oriental Financial Group
Oriental Financial Group Inc. is a diversified financial holding company
that operates under U.S. and Puerto Rico banking laws and regulations,
principally through its two subsidiaries, Oriental Bank and Oriental
Financial Services. Now in its 49th year in business, Oriental provides
a full range of commercial, consumer and mortgage banking services, as
well as financial planning, trust, insurance, investment brokerage and
investment banking services, primarily in Puerto Rico, through 64
financial centers. Investor information about Oriental can be found at www.orientalfg.com.
The information included in this document contains certain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based on
management’s current expectations and involve certain risks and
uncertainties that may cause actual results to differ materially from
those expressed in the forward-looking statements.
Factors that might cause such a difference include, but are not limited
to (i) difficulties in integrating BBVA’s Puerto Rico operations into
Oriental’s operations; (ii) the amounts by which our assumptions related
to the acquisition fail to approximate actual results; (iii) the rate of
growth in the economy and employment levels, as well as general business
and economic conditions; (iv) changes in interest rates, as well as the
magnitude of such changes; (v) the fiscal and monetary policies of the
federal government and its agencies; (vi) changes in federal bank
regulatory and supervisory policies, including required levels of
capital; (vii) the relative strength or weakness of the consumer and
commercial credit sectors and of the real estate market in Puerto Rico;
(viii) the performance of the stock and bond markets; (ix) competition
in the financial services industry; (x) possible legislative, tax or
regulatory changes; and (xi) difficulties in combining the operations of
any other acquired entity.
For a discussion of such factors and certain risks and uncertainties to
which Oriental is subject, see Oriental’s annual report on Form 10-K for
the year ended December 31, 2011, as well as its other filings with the
U.S. Securities and Exchange Commission. Other than to the extent
required by applicable law, including the requirements of applicable
securities laws, Oriental assumes no obligation to update any
forward-looking statements to reflect occurrences or unanticipated
events or circumstances after the date of such statements.