R&G Financial Reports Record Earnings for the Quarter Ended March 31, 2001

Apr 17, 2001, 01:00 ET from R&G Financial Corporation

    SAN JUAN, Puerto Rico, April 17 /PRNewswire/ -- R&G Financial Corporation
 (Nasdaq:RGFC) ("the Company"), today reported record financial results for the
 quarter ended March 31, 2001.  Income before the cumulative effect of adopting
 SFAS No. 133 was a record $13.3 million, or $0.39 per share (diluted) for the
 first quarter ended March 31, 2001, compared to $9.5 million or $0.28 per
 share (diluted) for the 2000 comparative quarter, representing an increase of
 40%.  The Company's ROA and ROE improved to 1.48% and 19.51%, respectively,
 during the quarter ended March 31, 2001 from 1.26% and 16.37%, respectively,
 during the quarter ended March 31, 2000.
     During the quarter ended March 31, 2001, the Company's net interest income
 rose to $18.1 million compared to $16.8 million in the 2000 comparative
 quarter, or an increase of 8%, as a result of improvements in R&G Financial's
 net interest margin with the recent reductions in interest rates.  The Company
 believes it will also benefit in future periods from improved net interest
 income results due to the extension of certain borrowings during the quarter
 into longer term maturities at lower rates.
     Net gain in the origination and sale of loans increased 105% to $15.0
 million during the quarter ended March 31, 2001 from $7.3 million for the
 comparable 2000 period.  This increase was due to increased volume of mortgage
 loan origination and sales, as well as better prices obtained in the sale of
 loans.
     Total loan production during the quarter ended March 31, 2001 increased
 20% to $528 million, a new record for the Company.  Internal loan originations
 represented more than 95% of the Company's total loan production.  This strong
 level of loan originations reflects R&G Financial's stronger position in the
 new housing loans market as a result of the continued diversification into
 corporate and construction lending, which was an untapped business for R&G
 Financial, as well as increased refinancings.
     Mr. Victor J. Galan, Chairman and Chief Executive Officer of the Company,
 indicated:  "We are very pleased to report the second consecutive quarter of
 record earnings for R&G Financial.  These strong earnings results were
 achieved in spite of an increase in the Company's effective income tax rate,
 caused by a gradual change of the asset mix (to taxable assets) of the Company
 as a result of the asset growth achieved during the past twelve-month period.
  We are poised to the continued growth of our operation and are optimistic
 that we will achieve another successful year for R&G Financial.  We look
 forward to adding value and improving returns for our stockholders."
     R&G Financial, currently in its 29th year of operations, is a financial
 holding company with operations in Puerto Rico and the United States through
 its wholly-owned subsidiaries R-G Premier Bank of Puerto Rico, one of the
 fastest growing commercial banks in Puerto Rico; R&G Mortgage Corporation, the
 second largest mortgage loan originator in Puerto Rico; Mortgage Store of
 Puerto Rico, Inc.; Continental Capital Corporation; and Home & Property
 Insurance Corp., with a combined branch network of 60 branches (32 mortgage
 offices in Puerto Rico, 4 mortgage offices in New York and 24 bank branches in
 Puerto Rico).
 
     FORWARD LOOKING STATEMENTS
     This press release contains certain "forward-looking statements"
 concerning R&G Financial's future economic performance.  The words "expect"
 "anticipate" and similar expressions are meant to identify "forward - looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995 that involve risks or uncertainties, including risks described in R&G
 Financial's filings with the Securities and Exchange Commission.
 
                                         R&G Financial Corporation
                                       At              At           At
                                   March 31,        Dec. 31,     March 31,
                                      2001            2000          2000
 
     (Dollars in Thousands, except for per share data)
 
     SELECTED BALANCE SHEET DATA
     (Unaudited)
 
     Total assets                  3,671,472       3,539,444     3,121,835
 
     Loans receivable, net         1,662,508       1,631,276     1,714,800
 
     Mortgage loans held for sale    152,507          95,668        97,976
 
     Mortgage-backed securities
     held for trading                102,210          12,038        14,967
 
     Mortgage-backed and
     investment securities
     available for sale            1,450,258       1,518,371     1,024,394
 
     Mortgage-backed and
     investment securities
     held to maturity                 22,702          23,522        27,774
 
     Cash and cash equivalents        87,696          69,090        70,331
 
     Deposits                      1,740,004       1,676,062     1,434,861
 
     Securities sold under
     agreements to repurchase        892,318         827,749       780,850
 
     Notes payable                   173,076         138,858       113,996
 
     Other borrowings                417,465         538,840       469,557
 
     Stockholders' equity            384,594         308,836       275,229
 
     Stockholders' equity per share    $8.39           $8.16         $6.99
 
     Servicing portfolio           6,791,561       6,634,059     6,320,007
 
 
 
                                     Three Months Ended      Three Months Ended
                                              March 31            December 31,
                                        2001            2000          2000
 
                          (Dollars in Thousands, except for per share data)
 
     SELECTED INCOME STATEMENT DATA
     (Unaudited)
 
     REVENUES:
 
     Net interest income             $18,077         $16,760       $15,616
 
     Provision for loan losses       (2,000)         (1,350)       (1,401)
 
     Net interest income after
     provision for loan losses        16,077          15,410        14,215
 
     Loan administration and
     servicing fees                    8,023           7,611         8,129
 
     Net gain on origination
     and sale of loans                15,038           7,324        13,123
 
     Other                             2,525           1,489         2,063
 
     Total revenues                   41,664          31,834        37,489
 
     OPERATING EXPENSES:
 
     Employee compensation
     and benefits                      7,550           7,228         7,079
 
     Office occupancy and
     equipment                         3,902           3,252         3,484
 
     Other administrative
     and general                      11,787           9,593         9,944
 
     Total expenses                   23,239          20,073        20,507
 
     Income before income taxes
     and cumulative effect from
     change in accounting principle   18,425          11,761        16,869
 
     Income taxes                    (5,096)         (2,274)       (4,793)
 
     Income before cumulative
     effect from change in
     accounting principle             13,329           9,487        12,076
 
     Cumulative effect from change
     in accounting principle,
     net of income taxes                 323             ---           ---
 
     Net income                      $13,006         $ 9,487       $12,076
 
     Less: Preferred stock dividends   1,759           1,409         1,409
 
     Net income available to
     common stockholders             $11,247         $ 8,078       $10,667
 
     Earnings per share:
 
     Income before cumulative
     effect per share - basic           $.40            $.28          $.37
 
     Income before cumulative
     effect per share - diluted         $.39            $.28          $.36
 
     Net income per common share -
     Basic                              $.39            $.28          $.37
 
     Net income per common share -
     Diluted                            $.38            $.28          $.36
 
     Average shares outstanding -
     Basic                        28,673,654      28,659,107    28,666,750
 
     Average shares outstanding -
     Diluted                      29,311,534      29,316,344    29,314,359
 
     Return on common equity          19.51%          16.37%        18.85%
 
     Return on assets                  1.48%           1.26%         1.39%
 
     Loan production                $528,096        $438,959      $466,254
 
 

SOURCE R&G Financial Corporation
    SAN JUAN, Puerto Rico, April 17 /PRNewswire/ -- R&G Financial Corporation
 (Nasdaq:RGFC) ("the Company"), today reported record financial results for the
 quarter ended March 31, 2001.  Income before the cumulative effect of adopting
 SFAS No. 133 was a record $13.3 million, or $0.39 per share (diluted) for the
 first quarter ended March 31, 2001, compared to $9.5 million or $0.28 per
 share (diluted) for the 2000 comparative quarter, representing an increase of
 40%.  The Company's ROA and ROE improved to 1.48% and 19.51%, respectively,
 during the quarter ended March 31, 2001 from 1.26% and 16.37%, respectively,
 during the quarter ended March 31, 2000.
     During the quarter ended March 31, 2001, the Company's net interest income
 rose to $18.1 million compared to $16.8 million in the 2000 comparative
 quarter, or an increase of 8%, as a result of improvements in R&G Financial's
 net interest margin with the recent reductions in interest rates.  The Company
 believes it will also benefit in future periods from improved net interest
 income results due to the extension of certain borrowings during the quarter
 into longer term maturities at lower rates.
     Net gain in the origination and sale of loans increased 105% to $15.0
 million during the quarter ended March 31, 2001 from $7.3 million for the
 comparable 2000 period.  This increase was due to increased volume of mortgage
 loan origination and sales, as well as better prices obtained in the sale of
 loans.
     Total loan production during the quarter ended March 31, 2001 increased
 20% to $528 million, a new record for the Company.  Internal loan originations
 represented more than 95% of the Company's total loan production.  This strong
 level of loan originations reflects R&G Financial's stronger position in the
 new housing loans market as a result of the continued diversification into
 corporate and construction lending, which was an untapped business for R&G
 Financial, as well as increased refinancings.
     Mr. Victor J. Galan, Chairman and Chief Executive Officer of the Company,
 indicated:  "We are very pleased to report the second consecutive quarter of
 record earnings for R&G Financial.  These strong earnings results were
 achieved in spite of an increase in the Company's effective income tax rate,
 caused by a gradual change of the asset mix (to taxable assets) of the Company
 as a result of the asset growth achieved during the past twelve-month period.
  We are poised to the continued growth of our operation and are optimistic
 that we will achieve another successful year for R&G Financial.  We look
 forward to adding value and improving returns for our stockholders."
     R&G Financial, currently in its 29th year of operations, is a financial
 holding company with operations in Puerto Rico and the United States through
 its wholly-owned subsidiaries R-G Premier Bank of Puerto Rico, one of the
 fastest growing commercial banks in Puerto Rico; R&G Mortgage Corporation, the
 second largest mortgage loan originator in Puerto Rico; Mortgage Store of
 Puerto Rico, Inc.; Continental Capital Corporation; and Home & Property
 Insurance Corp., with a combined branch network of 60 branches (32 mortgage
 offices in Puerto Rico, 4 mortgage offices in New York and 24 bank branches in
 Puerto Rico).
 
     FORWARD LOOKING STATEMENTS
     This press release contains certain "forward-looking statements"
 concerning R&G Financial's future economic performance.  The words "expect"
 "anticipate" and similar expressions are meant to identify "forward - looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995 that involve risks or uncertainties, including risks described in R&G
 Financial's filings with the Securities and Exchange Commission.
 
                                         R&G Financial Corporation
                                       At              At           At
                                   March 31,        Dec. 31,     March 31,
                                      2001            2000          2000
 
     (Dollars in Thousands, except for per share data)
 
     SELECTED BALANCE SHEET DATA
     (Unaudited)
 
     Total assets                  3,671,472       3,539,444     3,121,835
 
     Loans receivable, net         1,662,508       1,631,276     1,714,800
 
     Mortgage loans held for sale    152,507          95,668        97,976
 
     Mortgage-backed securities
     held for trading                102,210          12,038        14,967
 
     Mortgage-backed and
     investment securities
     available for sale            1,450,258       1,518,371     1,024,394
 
     Mortgage-backed and
     investment securities
     held to maturity                 22,702          23,522        27,774
 
     Cash and cash equivalents        87,696          69,090        70,331
 
     Deposits                      1,740,004       1,676,062     1,434,861
 
     Securities sold under
     agreements to repurchase        892,318         827,749       780,850
 
     Notes payable                   173,076         138,858       113,996
 
     Other borrowings                417,465         538,840       469,557
 
     Stockholders' equity            384,594         308,836       275,229
 
     Stockholders' equity per share    $8.39           $8.16         $6.99
 
     Servicing portfolio           6,791,561       6,634,059     6,320,007
 
 
 
                                     Three Months Ended      Three Months Ended
                                              March 31            December 31,
                                        2001            2000          2000
 
                          (Dollars in Thousands, except for per share data)
 
     SELECTED INCOME STATEMENT DATA
     (Unaudited)
 
     REVENUES:
 
     Net interest income             $18,077         $16,760       $15,616
 
     Provision for loan losses       (2,000)         (1,350)       (1,401)
 
     Net interest income after
     provision for loan losses        16,077          15,410        14,215
 
     Loan administration and
     servicing fees                    8,023           7,611         8,129
 
     Net gain on origination
     and sale of loans                15,038           7,324        13,123
 
     Other                             2,525           1,489         2,063
 
     Total revenues                   41,664          31,834        37,489
 
     OPERATING EXPENSES:
 
     Employee compensation
     and benefits                      7,550           7,228         7,079
 
     Office occupancy and
     equipment                         3,902           3,252         3,484
 
     Other administrative
     and general                      11,787           9,593         9,944
 
     Total expenses                   23,239          20,073        20,507
 
     Income before income taxes
     and cumulative effect from
     change in accounting principle   18,425          11,761        16,869
 
     Income taxes                    (5,096)         (2,274)       (4,793)
 
     Income before cumulative
     effect from change in
     accounting principle             13,329           9,487        12,076
 
     Cumulative effect from change
     in accounting principle,
     net of income taxes                 323             ---           ---
 
     Net income                      $13,006         $ 9,487       $12,076
 
     Less: Preferred stock dividends   1,759           1,409         1,409
 
     Net income available to
     common stockholders             $11,247         $ 8,078       $10,667
 
     Earnings per share:
 
     Income before cumulative
     effect per share - basic           $.40            $.28          $.37
 
     Income before cumulative
     effect per share - diluted         $.39            $.28          $.36
 
     Net income per common share -
     Basic                              $.39            $.28          $.37
 
     Net income per common share -
     Diluted                            $.38            $.28          $.36
 
     Average shares outstanding -
     Basic                        28,673,654      28,659,107    28,666,750
 
     Average shares outstanding -
     Diluted                      29,311,534      29,316,344    29,314,359
 
     Return on common equity          19.51%          16.37%        18.85%
 
     Return on assets                  1.48%           1.26%         1.39%
 
     Loan production                $528,096        $438,959      $466,254
 
 SOURCE  R&G Financial Corporation