Income available to common shareholders of $29.6 million, or $ 0.67 per diluted share, compared to loss of $18.2 million, or ($0.50) per share, in 2010.

Pre-tax operating income of $48.6 million increased 22.5% from $39.7 million in 2010.

Strong growth in core lending, banking and wealth management operations, including a more than 38% increase in commercial loan production.

Book value per share at December 31, 2011 of $15.22, up 6.2% from a year ago and 1.5% from September 30, 2011.

Due to the Company’s stock repurchase program, common shares outstanding at December 31, 2011 of 41.2 million were reduced 11.0% from a year ago and 6.3% from September 30, 2011.

Cash dividends per common share of $0.21 for the year, up 23.5% from 2010.

Net credit losses of only 0.81% of average loans outstanding, while the allowance for loan losses increased 17.8%.

Loss to common shareholders of $13.1 million, or ($0.31) per share, which includes an income tax benefit of $4.8 million. This compares to income of $3.9 million, or $0.08 per share, in the year ago quarter, and income of $15.6 million, or $0.35 per share, in the quarter ended September 30, 2011.

Results reflected the following charges that are not considered part of Oriental’s pre-tax operating income: (i) a $15.0 million other than temporary impairment (OTTI) charge on the aforementioned collateralized debt obligation (CDO); (ii) a $2.4 million write-down of interest receivable on delinquent residential mortgage loans; and (iii) a $2.4 million write-down on foreclosed properties and other non-performing real estate-related assets, most of which were acquired as part of the FDIC assisted Eurobank acquisition.

Oriental sold the aforementioned CDO in January 2012 for $10.5 million. The security, which was no longer consistent with the Company’s investment strategy, had experienced market deterioration in recent months. At September 30, 2011, it had an unrealized loss of approximately $10.0 million.

Pre-tax operating income of $6.1 million. This compares to a loss of $0.6 million in the year ago quarter and income of $11.5 million in the third quarter of 2011. Compared to the preceding quarter, the fourth quarter of 2011 included $6.2 million in additional premium amortization on mortgage backed securities (MBS), partially offset by continued growth in core lending, banking and wealth management activities.

Interest income from loans of $39.4 million increased 11.3% from the third quarter. Growth was due to continued improved performance of covered loans (the former Eurobank loans) and growth of Oriental’s non-covered commercial, auto leasing and consumer loan portfolio.

Interest income from investment securities of $25.9 million declined 28.5% from the third quarter. This primarily reflected increased premium amortization, based on an increase in repayments as a result of the current interest rate environment. Other factors were lower balances and yields.

Total interest expense of $37.4 million declined 4.3% from the third quarter. This was due to reduced cost of deposits (both retail and wholesale) and lower cost and lower balances of wholesale funding.

Total banking and wealth management revenues of $12.4 million increased 9.8% from the third quarter. Wealth management revenues grew 10.0% due to increased brokerage and trust business. Assets under management of $4.1 billion at December 31, 2011 were up 4.0% from September 30, 2011, including a 7.5% increase in brokerage account assets. Banking service revenues increased 14.6% due to the use of more commercial products and services.

Non-interest expenses of $30.4 million were flat with the third quarter due to effective cost controls.

In December 2011, $600 million in repurchase agreement (repo) funding with an average cost of 4.23% matured. Utilizing cash on hand and proceeds from the sale of approximately $77 million of mortgage backed securities, half of the repos were paid off. The remaining balance was renewed for an average period of approximately three and a half years at an effective fixed rate of 2.36%.

These transactions enabled Oriental to eliminate $300 million in wholesale funding, reduce cost of funds on an additional $300 million of borrowings, and deploy cash at a significantly higher return – all of which is expected to generate approximately $13 million more in net interest income on an annualized basis. Oriental reduced repo funding by a total of $400 million in 2011, including the early extinguishment of a $100 million repo in the third quarter.

Cash and cash equivalents (including securities purchased under agreements to resell) of $605.5 million declined $76.9 million from September 30, 2011, reflecting the aforementioned repo pay down, partially offset by repayments on MBS.

Total investments of $3.9 billion declined 5.4% from September 30, 2011, primarily reflecting the aforementioned pre-payments on MBS and sale of securities.

Total non-covered loans of approximately $1.2 billion increased 1.2% from September 30, 2011. Growth of commercial, leasing and consumer loans more than offset the reduction of residential mortgage loans. Covered loans of $533.5 million declined 5.0% from September 30, 2011 as they continue to pay down.

Loan production in the strategically significant commercial category totaled $47.5 million, up 58.0% from the third quarter. For the year, commercial loan production increased 38.3%, to $139.8 million.

Retail deposits of $2.0 billion remained approximately level compared to September 30, 2011 as cost of those deposits dropped to 1.66% from 1.79%. For the year, interest-bearing savings and demand deposits increased 2.2%, while cost of retail deposits dropped to 1.81% in 2011 from 2.23% in 2010.

Stockholders’ equity of $695.6 million declined 4.4% from September 30, 2011, primarily due to stock repurchases. Book value per share, however, increased to $15.22 as of December 31, 2011 from $14.99 as of September 30, 2011.

Credit Quality: The allowance of $37.0 million increased 3.2%, equal to 3.06% of total non-covered loans and leases versus 3.00% at September 30, 2011. Net credit losses of $2.7 million resulted in a total of $9.6 million for the year. Non-performing assets increased less than 1.0% from September 30, 2011.

Stock Repurchases: As part of its authorization to repurchase $70 million in shares of its common stock in the open market, Oriental bought approximately 2.8 million shares, at an average price of $10.57 per share, during the quarter ended December 31, 2011. Under the current authorization, Oriental can buy back approximately $40 million more in shares. For all of 2011, Oriental bought approximately 5.2 million shares at an average price of $11.28 per share.

Capital: Oriental maintains regulatory capital ratios well above the requirements for a well-capitalized institution. At December 31, 2011, the Leverage Capital Ratio was 9.65%, Tier-1 Risk-Based Capital Ratio was 31.56%, and Total Risk-Based Capital Ratio was 32.84%.

Interest Income:

Loans

Loans not covered under shared-loss agreements with the FDIC

Loans covered under shared-loss agreements with the FDIC

Total interest income from loans

Mortgage-backed securities

Investment securities

Short term investments

Total interest income

Interest Expense:

Deposits

Securities sold under agreements to repurchase

Advances from FHLB and other borrowings

FDIC-guaranteed term notes

Note payable to the FDIC

Subordinated capital notes

Total interest expense

Net interest income

Provision for non-covered loan and lease losses

Provision for (recapture of) covered loan and lease losses, net

Total provision for loan and lease losses, net

Net interest income after provision for loan and lease losses

Non-Interest Income (Loss):

Wealth management revenues

Banking service revenues

Mortgage banking activities

Total banking and wealth management revenues

Total loss on other-than-temporarily impaired securities

Portion of loss on securities recognized in other comprehensive income

Other-than-temporary impairments on securities

Net accretion (amortization) of FDIC loss-share indemnification asset

Fair value adjustment on FDIC equity appreciation instrument

Net gain (loss) on:

Sales of securities

Derivatives

Trading securities

Foreclosed real estate

Early extinguishment of repurchase agreement

Other

Total non-interest income (loss), net

Non-Interest Expenses:

Compensation and employee benefits

Professional and service fees

Occupancy and equipment

Insurance

Electronic banking charges

Taxes, other than payroll and income taxes

Advertising, business promotion, and strategic initiatives

Loan servicing and clearing expenses

Foreclosure and repossession expenses

Communication

Director and investor relations

Printing, postage, stationery and supplies

Other

Total non-interest expenses

Income (loss) before income taxes

Income tax expense (benefit)

Net income (loss)

Less: Dividends on preferred stock

Less: Deemed dividend on preferred stock beneficial conversion feature

Income available (loss) to common shareholders

PRE-TAX OPERATING INCOME

Net interest income

Provision for non-covered loan and lease losses

Recapture of (provision for) covered loan and lease losses, net

Core non-interest income:

Wealth management revenues

Banking service revenues

Mortgage banking activities

Total core non-interest income

Non-interest expenses

Total Pre-tax operating income

INCOME (LOSS) PER COMMON SHARE

Basic

Diluted

COMMON STOCK DATA

Average common shares outstanding and equivalents

Cash dividends per share of common stock

Cash dividends declared on common shares

Pay-out ratio

SELECTED FINANCIAL DATA

PERFORMANCE RATIOS:

Return on average assets

Return on average common equity

Equity-to-assets ratio

Efficiency ratio

Expense ratio

TAX EQUIVALENT SPREAD

Interest-earning assets

Tax equivalent adjustment

Interest-earning assets - tax equivalent

Interest-bearing liabilities

Tax equivalent interest rate spread

Tax equivalent interest rate margin