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Santander BanCorp Doubles Earnings For 2004 Versus 2003
- Net income for 2004 amounted to $84.5 million, a 114.1% improvement over net
income of $39.4 million for 2003.
SAN JUAN, Puerto Rico, Jan. 26 /PRNewswire-FirstCall/ -- Santander BanCorp
(NYSE: SBP; LATIBEX: XSBP) ("the Company"), reported today its unaudited
financial results for the year and the quarter ended December 31, 2004. Net
income for the year ended December 31, 2004 more than doubles the results
reported for the year 2003, reaching $84.5 million, a 114.1% improvement over
of $39.4 million reported for 2003. For the quarter ended December 31, 2004,
net income amounted to $21.3 million, a significant increase of 35.5% over net
income of $15.7 million for the quarter ended December 31, 2003.
Net income for the year ended December 31, 2004 reached $84.5 million or $1.81
per common share. This represents an increase of 114.1% over net income for the
year ended December 31, 2003, of $39.4 million or $0.69 per common share(2).
The earnings per common share for the year ended December 31, 2004 increased by
$1.12, which more than doubles the prior year's earnings per common share.
Return on Average Common Equity (ROE) and Return on Average Assets (ROA) were
16.90% and 1.10%, respectively, for the year ended December 31, 2004, an
increase of 1,082 basis points in ROE and 52 basis points in ROA when compared
to ROE and ROA of 6.08% and 0.59%, respectively, for the year ended December
31, 2003. The Efficiency Ratio(1) for the year ended December 31, 2004, also
reflected a significant improvement of 651 basis points, reaching 63.54%,
compared to 70.05% for the year ended December 31, 2003. The improvement in the
efficiency ratio during 2004, when compared to 2003, is a direct result of
higher revenues and lower expenses.
For the quarter ended December 31, 2004, net income amounted to $21.3 million
or $0.46 per common share, compared to net income of $15.7 million or $0.26 per
common share(2) for the fourth quarter of 2003. ROE and ROA were 16.04% and
1.08%, respectively, for the quarter ended December 31, 2004, compared to 8.89%
and 0.87%, respectively, for the fourth quarter of 2003. The Efficiency
Ratio(1) improved by 559 basis points to 60.48% for the fourth quarter of
2004, compared to 66.07% reported during the fourth quarter of 2003.
The earnings per share computations for all periods presented in the
accompanying financial information have been adjusted retroactively to reflect
the 10% stock dividend declared by the Board of Directors on July 9, 2004.
Income Statement
The increase of $45.0 million or 114.1% in net income for the year ended
December 31, 2004, compared to the same period in 2003 was principally due to
an increase of $25.9 million in net interest income, a decrease in the
provision for loan losses of $23.5 million and a decrease in operating expenses
of $6.2 million. These changes were partially offset by an increase in the
provision for income tax of $8.4 million and a decrease of $2.2 million in
other income due primarily to a decrease in gain on sale of loans.
The $5.6 million improvement in net income for the fourth quarter of 2004
compared to the same period in 2003 was principally due to an increase of $0.9
million in net interest income, a decrease of $10.5 million in the provision
for loan losses, an increase in other income of $1.6 million and a $2.4 million
decrease in operating expenses. These changes were partially offset by an
increase of $9.8 million in the provision for income tax.
For the year ended December 31, 2004, net interest income(1) amounted to $239.3
million, an increase of 13.5% compared to $210.8 million for the same period in
2003. This improvement was due to an increase in average interest earning
assets of $932 million or 14.6%, as a result of an increase in commercial
activities as well as a reduction in total cost of funds of 24 basis points.
This was partially offset by a decrease of 18 basis points in the yield on
interest earning assets.
For the quarter ended December 31, 2004, net interest income(1) amounted to
$61.6 million, an increase of 2.8% compared to $59.9 million for the fourth
quarter in 2003. The improvement in net interest income(1) was principally due
to an increase in average interest earning assets of $736 million or 10.8% and
a decrease of 28 basis points in total cost of funds.
The provision for loan losses reflected a decrease of $23.5 million or 47.2%
from $49.7 million for the year ended December 31, 2003 to $26.3 million for
2004 due to strong management action on non performing loan recoveries.
Furthermore, for the quarter ended December 31, 2004, the reduction in the
provision for loan losses was $10.5 million or 70.0% compared to the same
period in 2003. The reduction in the provision for loan losses was due to: (1)
a 27.9% reduction in net charge-offs from $37.1 million for the year ended
December 31, 2004 to $26.8 million for 2004 and (2) an 11% decrease in non-
performing loans, which are down to $87.5 million as of December 31, 2004 from
$98.4 million as of December 31, 2003. In addition to the improvement in net
charge-offs and non-performing loans, the reduction in the provision for loan
losses is due in part to an improvement in the loss ratios which are used in
the estimation of the allowance for loan losses for its consumer loan
portfolio.
For the year ended December 31, 2004, net interest income after provision for
loan losses(1) amounted to $213.1 million, an increase of 32.3% compared to
$161.0 million for the same period in 2003. For the quarter ended December 31,
2004, net interest income after provision for loans losses(1) amounted to $57.1
million, an increase of 27.2% compared to $44.9 million for the fourth quarter
in 2003.
For the year ended December 31, 2004, other income decreased $2.2 million
compared to the same period in 2003. This decrease was the result of lower
gains on sale of loans of $9.4 million, a decrease of $1.5 million in trading
gains and lower gains on sales of other real estate owned of $1.0 million, that
were partially offset by increases of $1.6 million in mortgage servicing rights
arising from the sale of mortgage loans, $2.8 million in gain on sale of a
building, $3.2 million in derivative gains and $2.1 million in fee income from
the broker-dealer, asset management and insurance operations.
For the quarter ended December 31, 2004, there was an increase in other income
of $1.6 million or 5.8% from $27.6 million for the quarter ended December 31,
2003 to $29.2 million for the quarter ended December 31, 2004. This increase
was principally due to higher gains on future contracts (cover call options) of
$3.2 million and in fee income from the broker-dealer, asset management and
insurance operations of $0.7 million. These increases were partially offset by
lower gains on sale of loans of $2.5 million. During the fourth quarter 2004,
the Company decided to utilize cover calls options on a portion of its
investment portfolio to generate additional income, rather than increase the
size of the portfolio given the current low long-term interest rate
environment.
For the year ended December 31, 2004, the Efficiency Ratio(1) improved 651
basis points to 63.54%, compared to 70.05% for the year ended December 31,
2003. This improvement was mainly a result of higher revenues (excluding gains
on sales of securities and a gain on the sale of a building during the first
quarter of 2004) and a decrease of $6.2 million or 2.8% in operating expenses.
For the quarter ended December 31, 2004, the Efficiency Ratio(1) improved 559
basis points to 60.48% from 66.07% for the same period in 2003. This
improvement was a result of higher revenues (excluding gains on sales of
securities) and a decrease of $2.4 million or 4.2% in operating expenses.
For the year ended December 31, 2004, there were cost reductions of $6.2
million or 2.8% in operating expenses compared to the same period in 2003.
Other operating expenses, excluding personnel expenses, were reduced by $8.4
million offset by an increase in personnel expenses of $2.2 million. This
expense reduction was primarily due to a decrease of $9.2 million or 23% in
electronic data processing servicing, amortization and technical services due
to lower servicing costs. There were also decreases in amortization of
intangibles of $2.5 million, repossessed assets provision and expenses of $2.6
million and collections and related legal costs of $3.6 million. These
decreases were partially offset by increases in professional services of $5.6
million, partly associated with the implementation of certain provisions of the
Sarbanes-Oxley Act as well as other consulting services, and an increase in
business promotion of $3.7 million consistent with our strategy to increase
market share and grow the volume of our business. Personnel expenses increased
by $2.2 million due to higher salaries, the in-sourcing of collection services
and severance payments, partially offset by a decrease in pension and other
benefits and by an increase in expenses deferred as loan origination costs.
Operating expenses decreased $2.4 million or 4.2% from $57.3 million for the
quarter ended December 31, 2003 to $55.0 million for the quarter ended December
31, 2004. This reduction was due primarily to a decrease in EDP servicing,
amortization and technical services of $3.0 million due to lower servicing
costs, a decrease of $1.2 million in collections and related legal costs as a
result of in-sourcing of the collections function, a decrease of $0.7 million
in repossessed assets provisions and expenses and a decrease in personnel costs
of $0.7 million. These decreases were partially offset by increases of $1.6
million in professional services, partly associated with the implementation of
certain provisions of the Sarbanes-Oxley Act as well as other consulting
services, and an increase of $1.4 million in advertising and promotion
consistent with our strategy to increase market share and grow the volume of
our business.
Balance Sheet
Total assets as of December 31, 2004 increased by $1.0 billion or 13.0% to $8.3
billion compared to $7.4 billion as of December 31, 2003. As of December 31,
2004, there was an increase of $1.4 billion in net loans, including loans held
for sale (further explained below) compared to December 31, 2003 balances. The
increase in net loans at December 31, 2004 when compared to December 31, 2003
was partially offset by a decrease in investment securities of $508.0 million,
an increase of $86.2 million in cash and cash equivalents, a decrease of $8.3
million in premises and equipment due to the sale of a building with a book
value of approximately $7.7 million, and normal depreciation for the period.
There was also a decrease of $22.3 million in other assets due primarily to a
reduction in net securities sold not delivered.
As a result of strong commercial activity and management's focus to regain
market share, the net loan portfolio, including loans held for sale, reflected
an increase of 33.0% or $1.4 billion, reaching $5.5 billion at December 31,
2004, compared to the figures reported as of December 31, 2003. The mortgage
loan portfolio grew $1.1 billion or 76.7% during 2004 compared to the December
31, 2003 mortgage loan portfolio. There was an 18.4% increase in mortgage loan
production for the year ended December 31, 2004 compared to the same period in
2003. The commercial loan portfolio (including construction loans) and the
consumer loan portfolio also reflected increases of $192.2 million or 8.6% and
$50.1 million or 12.4%, respectively, as of December 31, 2004, compared to
December 31, 2003.
Deposits at December 31, 2004 reflected an increase of $605.9 million or 14.6%
compared to deposits of $4.1 billion as of December 31, 2003. This increase
was also in line with the objective of enhancing customer activity and market
share. Total borrowings at December 31, 2004 (comprised of federal funds
purchased and other borrowings, securities sold under agreements to repurchase,
commercial paper issued, term and capital notes) increased $268.3 million
compared to borrowings at December 31, 2003.
Financial Strength
Non-performing loans to total loans as of December 31, 2004 was 1.57%, a 76
basis point improvement over the reported 2.33% as of December 31, 2003, due to
management actions on non performing loan recoveries. Non-performing loans at
December 31, 2004 amounted to $87.5 million, an 11.0% improvement compared to
$98.4 million as of December 31, 2003. There had been an improving trend in
this indicator during 2003, which further continued throughout 2004.
The ratio of net charge-offs to average loans for the year ended December 31,
2004 improved 37 basis points to 0.56% from 0.93% reported for the year ended
December 31, 2003. During 2004 there was a decrease in net charge-offs of $10.3
million compared to 2003. Net charge-offs for the quarter ended December 31,
2004 decreased $2.8 million, or 31.6%, compared to the same period in 2003. The
annualized ratio of net charge-offs to average loans for the quarter ended
December 31, 2004 improved 41 basis points to 0.45% from 0.86% for the same
period in 2003. Management is committed and has directed its efforts to
continue improving this ratio.
The allowance for loan losses to total non-performing loans at December 31,
2004 improved to 79.05% compared to 71.74% at December 31, 2003. Excluding
non-performing mortgage loans (for which the Company has historically had a
minimal loss experience) this ratio is 135.0% compared to 123.9% as of December
31, 2003. The allowance for loan losses represents 1.24% of total loans as of
December 31, 2004, a 41 basis point reduction over the 1.65% reported as of
December 31, 2003. The allowance for loan losses to total loans excluding
mortgage loans as of December 31, 2004 was 2.30%.
As of December 31, 2004, total capital to risk-adjusted assets (BIS ratio)
reached 11.90% and Tier I capital to risk-adjusted assets and leverage ratios
were 9.27% and 6.36%, respectively.
Customer Financial Assets Under Control
Santander BanCorp is a client-focused organization that seeks to earn the trust
of customers to manage their financial assets. As of December 31, 2004, the
Company had over $12.8 billion in Customer Financial Assets Under Control,
which represents a 20.2% or $2.2 billion increase over balances as of December
31, 2003. This is a significant part of the financial assets of Puerto Rico
households and reflects the Company's strong positioning in its primary market.
Customer Financial Assets Under Control include bank deposits (excluding
brokered deposits), broker-dealer customer accounts, mutual fund assets
managed, and trust, institutional and private accounts under management. The
growth in customer financial assets and the stability of customer deposits is a
strong indication of the Company's successful efforts to regain market share
and reposition itself as a leading provider of financial services.
Shareholder Value
On July 9, 2004 the Board of Directors declared a 10% stock dividend to all
shareholders of record as of July 20, 2004. The common stock dividend was
distributed on August 3, 2004. Cash was paid in lieu of fractional shares. The
earnings per share computations for all periods presented in the accompanying
financial information have been adjusted retroactively to reflect this stock
dividend.
SBP common stock price per share increased from $22.14 (after adjustment for
the stock dividend) as of December 31, 2003 to $30.16 as of December 31, 2004,
an increase of 36% or $374.2 million in market capitalization.
During the fourth quarter of 2004, Santander BanCorp declared a cash dividend
of 16 cents per common share to its shareholders of record as of December 10,
2004, payable on January 3, 2005, resulting in a current annualized dividend
yield of 2.12%.
There were no stock repurchases during the last three quarters of 2003 and 2004
under the Stock Repurchase Program. As of December 31, 2004, the Company had
acquired, as treasury stock, a total of 4,011,260 shares of common stock,
amounting to $67.6 million.
Institutional Background
Santander BanCorp is a publicly held financial holding company that is traded
on the New York Stock Exchange and on Latibex (Madrid Stock Exchange). It has
three wholly owned subsidiaries, Banco Santander Puerto Rico, Santander
Securities Corporation and Santander Insurance Agency. Banco Santander Puerto
Rico has been operating in Puerto Rico for 28 years. It offers a full array of
services through 65 branches in the areas of commercial, mortgage and consumer
banking, supported by a team of over 1,600 employees. Santander Securities
offers securities brokerage services and provides portfolio management services
through its wholly owned subsidiary Santander Asset Management Corporation.
Santander Insurance Agency offers life, health and disability coverage as a
corporate agent and also operates as a general agent. For more information,
visit the Company's website at http://www.santandernet.com/.
Grupo Santander (SAN.MC, STD.N) ranks among the top ten banks in the world and
is the largest bank in the Euro Zone by market capitalization. Founded in 1857,
Grupo Santander has 59 million clients and an extensive presence in more than
40 countries, with over 10.000 offices. It is the first Financial Group in
Spain and Latin America and maintains an important business activity in Europe,
where it reached a prominent presence in the United Kingdom through the
acquisition of Abbey National. Grupo Santander also owns the third largest
banking group in Portugal and Santander Consumer Finance, a leading consumer
finance franchise with presence in Germany, Italy and seven other European
countries.
In Latin America, Grupo Santander maintains a leading position where it manages
over $114,000 million in business volumes (loans, deposits and off- balance
sheets under management) has 4,052 offices in ten countries, serving more than
12 million individual clients and approximately half a million small and medium
sized companies. As of the third quarter 2004, Grupo Santander obtained a net
attributable income of $1,225 million in Latin America, an increase of over
8.8% over the same period last year.
Projected calendar for SBP reporting 2005 quarterly financial results
First quarter results - April 28, 2005
Second quarter results- July 28, 2005
Third quarter results - October 27, 2005
Fourth quarter results - January 27, 2006
This news release contains forward-looking statements that are based on current
expectations, estimates, forecasts and projections about the industry in which
the Company operates, its beliefs and its management's assumptions. Words such
as "expects," "anticipates," "targets," "goals," "projects," "intends,"
"plans," "believes," "seeks," "estimates" and variations of such words and
similar expressions are intended to identify such forward-looking statements.
These statements are not guarantees of future performance and involve certain
risks, uncertainties and assumptions that are difficult to predict. Therefore,
actual outcomes and results may differ materially from what is expressed or
forecast in such forward-looking statements. Except as otherwise required under
federal securities laws and the rules and regulations of the SEC, the Company
does not have any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events, changes in assumptions or otherwise.
(1) On a tax equivalent basis.
(2) After giving retroactive effect for the 10% stock dividend declared
on July 9, 2004.
SANTANDER BANCORP
UNAUDITED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2004 AND 2003
(Dollars in thousands, except per share data)
ASSETS
Variance
31-Dec-04 31-Dec-03 12/04-12/03
CASH AND CASH EQUIVALENTS:
Cash and due from banks $110,148 $99,183 11.06%
Interest bearing deposits 42,612 15,300 178.51%
Federal funds sold and
securities purchased under
agreements to resell 326,650 278,750 17.18%
Total cash and cash
equivalents 479,410 393,233 21.91%
INTEREST BEARING DEPOSITS 50,000 10,000 400.00%
TRADING SECURITIES 34,184 42,547 -19.66%
INVESTMENT SECURITIES
AVAILABLE FOR SALE, at fair value 1,138,171 1,664,311 -31.61%
INVESTMENT SECURITIES HELD TO
MATURITY, at amortized cost 813,788 818,127 -0.53%
OTHER INVESTMENT SECURITIES,
at amortized cost 37,500 15,000 150.00%
LOANS HELD FOR SALE, net 271,596 297,201 -8.62%
LOANS, net 5,311,936 3,917,566 35.59%
ALLOWANCE FOR LOAN LOSSES (69,177) (69,693) -0.74%
PREMISES AND EQUIPMENT, net 52,854 61,107 -13.51%
ACCRUED INTEREST RECEIVABLE 44,682 36,398 22.76%
GOODWILL 34,791 34,791 0.00%
INTANGIBLE ASSETS 8,003 6,362 71.66%
OTHER ASSETS 118,076 140,350 -16.88%
$8,325,814 $7,367,300 13.01%
LIABILITIES AND STOCKHOLDERS' EQUITY
DEPOSITS:
Non-interest bearing $744,019 $700,413 6.23%
Interest bearing 4,004,120 3,441,815 16.34%
Total deposits 4,748,139 4,142,228 14.63%
FEDERAL FUNDS PURCHASED AND
OTHER BORROWINGS 780,334 350,000 122.95%
SECURITIES SOLD UNDER
AGREEMENTS TO REPURCHASE 1,349,444 1,808,238 -25.37%
COMMERCIAL PAPER ISSUED 629,544 254,904 146.97%
TERM NOTES 31,457 165,966 -81.05%
CAPITAL NOTES 72,588 15,925 355.81%
ACCRUED INTEREST PAYABLE 22,666 18,728 21.03%
OTHER LIABILITIES 151,605 130,479 16.19%
7,785,777 6,886,468 13.06%
STOCKHOLDERS' EQUITY:
Series A Preferred stock,
$25 par value; 10,000,000
shares authorized, none
issued or outstanding - - -
Common stock, $2.50 par
value; 200,000,000 shares
authorized; 50,650,364
shares issued in
December 2004 and 46,410,214
shares issued in December
2003; 46,639,104 shares
outstanding in December 2004
and 42,398,954 shares
outstanding in December 2003 126,626 116,026 9.14%
Capital paid in excess of
par value 304,171 211,742 43.65%
Treasury stock at cost,
4,011,260 shares in
December 2004 and 2003 (67,552) (67,552) 0.00%
Accumulated other comprehensive
loss, net of taxes (22,784) (19,465) 17.05%
Retained earnings-Reserve fund 127,086 119,432 6.41%
Undivided profits 72,490 120,649 -39.92%
SANTANDER BANCORP
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS AND THE QUARTERS ENDED DECEMBER 31, 2004 AND 2003
(Dollars in thousands, except per share data)
For the years For the quarters
ended ended
December 31, December 31,
2004 2003 2004 2003
INTEREST INCOME:
Loans $257,852 $237,712 $72,857 $57,560
Investment securities 97,901 85,215 21,084 27,940
Interest bearing deposits 1,054 664 480 105
Federal funds sold and
securities purchased under
agreements to resell 3,123 1,990 1,106 535
Total interest income 359,930 325,581 95,527 86,140
INTEREST EXPENSE:
Deposits 60,279 56,030 18,164 13,107
Securities sold under
agreements to repurchase
and other borrowings 79,901 75,896 21,213 18,247
Subordinated capital notes 582 425 528 30
Total interest expense 140,762 132,351 39,905 31,384
Net interest income 219,168 193,230 55,622 54,756
PROVISION FOR LOAN LOSSES 26,270 49,745 4,500 15,000
Net interest income
after provision
for loan losses 192,898 143,485 51,122 39,756
OTHER INCOME:
Bank service charges,
fees and other 38,977 38,990 10,027 9,349
Broker/dealer, asset management
and insurance fees 51,113 49,005 12,936 12,236
Gain on sale of securities 11,475 10,790 10 779
Gain on sale of mortgage
servicing rights 400 457 116 131
Gain on sale of loans 431 9,829 515 2,982
Gain on sale of building 2,754 - - -
Other income 12,089 10,348 5,628 2,141
Total other income 117,239 119,419 29,232 27,618
OTHER OPERATING EXPENSES:
Salaries and employee benefits 91,582 89,394 22,544 23,201
Occupancy costs 13,959 13,534 3,850 3,416
Equipment expenses 6,946 7,291 1,629 1,674
EDP servicing, amortization and
technical expenses 31,291 40,502 8,072 11,110
Communication expenses 8,976 8,612 2,183 2,336
Business promotion 10,435 6,760 3,294 1,849
Other taxes 8,584 9,811 2,010 2,286
Other operating expenses 45,760 47,840 11,372 11,464
Total other operating
expenses 217,533 223,744 54,954 57,336
Income before
provision (benefit)
for income tax 92,604 39,160 25,400 10,038
PROVISION (BENEFIT)
FOR INCOME TAX 8,145 (285) 4,070 (5,704)
NET INCOME 84,459 39,445 21,330 15,742
DIVIDENDS TO PREFERRED
SHAREHOLDERS - 7,114 - 3,688
NET INCOME AVAILABLE TO
COMMON SHAREHOLDERS 84,459 32,331 21,330 12,054
EARNINGS PER COMMON SHARE* $1.81 $0.69 $0.46 $0.26
* After giving retroactive effect to the stock dividend declared on
July 9, 2004
SANTANDER BANCORP
Dec. 2004 2004 2004 Dec. 2003
Year to Fourth Third Year to Fourth
SELECTED RATIOS Date Quarter Quarter Date Quarter
Net interest margin (1) 3.27% 3.24% 3.19% 3.30% 3.48%
Return on average
assets (2) 1.10% 1.08% 1.10% 0.59% 0.87%
Return on average common
equity (2) 16.90% 16.04% 17.14% 6.08% 8.89%
Efficiency Ratio (1,3) 63.54% 60.48% 61.97% 70.05% 66.07%
Non interest income
to revenues 24.57% 23.43% 23.50% 26.84% 24.28%
Capital:
Total capital to risk-
adjusted assets - 11.90% 10.87% - 10.41%
Tier I capital to risk-
adjusted assets - 9.27% 9.32% - 8.84%
Leverage ratio - 6.36% 6.13% - 6.04%
Non-performing loans to
total loans - 1.57% 1.84% - 2.33%
Non-performing loans plus
accruing loans past-due
90 days or more to loans - 1.63% 1.89% - 2.39%
Allowance for loan losses to
non-performing loans - 79.05% 73.05% - 70.85%
Allowance for loans losses
to period-end loans - 1.24% 1.34% - 1.65%
OTHER SELECTED FINANCIAL DATA 12/31/2004 12/31/2003
(dollars in millions)
Customer Financial Assets
Under Control:
Bank deposits (excluding
brokered deposits) $4,275.4 $3,782.8
Broker-dealer customer
accounts 4,543.3 3,727.4
Mutual fund and assets
managed 2,640.0 1,859.0
Trust, institutional and
private accounts assets
under management 1,369.0 1,300.6
Total $12,827.7 $10,669.7
(1) On a tax-equivalent basis.
(2) Ratios for the quarters are annualized.
(3) Operating expenses divided by net interest income, on a tax equivalent
basis, plus other income, excluding gain on sale of securities (and
gain on sale of building for 1Q04).
SANTANDER BANCORP
SELECTED CONSOLIDATED FINANCIAL INFORMATION:
(DOLLARS IN THOUSANDS)
For the Quarters Ended
Dec. 31, Dec. 31, Sept. 30, 4Q04/4Q03 4Q04/3Q04
2004 2003 2004 Variation Variation
Interest Income $95,527 $86,140 $92,449 10.9% 3.3%
Tax equivalent
adjustment 6,022 5,184 5,025 16.2% 19.8%
Interest income on
a tax equivalent
basis 101,549 91,324 97,474 11.2% 4.2%
Interest expense 39,905 31,384 36,510 27.2% 9.3%
Net interest income
on a tax
equivalent basis 61,644 59,940 60,964 2.8% 1.1%
Provision for loan
losses 4,500 15,000 7,020 -70.0% -35.9%
Net interest income
on a tax
equivalent basis
after provision 57,144 44,940 53,944 27.2% 5.9%
Other operating
income 28,707 23,857 26,176 20.3% 9.7%
Gain on sale of
securities 10 779 2,462 -98.7% -99.6%
Gain on sale of
loans 515 2,982 (240) -82.7% -314.6%
Gain on sale of
building - - - N/A N/A
Other operating
expenses 54,954 57,336 53,851 -4.2% 2.0%
Income on a tax
equivalent basis
before income
taxes 31,422 15,222 28,491 106.4% 10.3%
Provision (credit)
for income taxes 4,070 (5,704) 1,597 -171.4% 154.9%
Tax equivalent
adjustment 6,022 5,184 5,025 16.2% 19.8%
NET INCOME (LOSS) $21,330 $15,742 $21,869 35.5% -2.5%
SELECTED RATIOS:
Per share data (1):
Earnings (loss) per
common share $0.46 $0.26 $0.34
Average common
shares
outstanding** 46,639,104 46,639,104 46,639,104
Common shares
outstanding
at end of
period** 46,639,104 46,639,104 46,639,104
Cash Dividends per
Share:
Preferred Stock* $- $0.41 $-
Common Stock $0.16 $0.11 $0.11
(1) Per share data is based on the average number of shares outstanding
during the period.
Basic and diluted earnings per share are the same.
* Including redemption premium in Dec. 2003
** After giving retroactive effect to the stock dividend declared on
July 9, 2004
** After giving retroactive effect to the stock dividend declared on
July 9, 2004
SANTANDER BANCORP
SELECTED CONSOLIDATED FINANCIAL INFORMATION:
(DOLLARS IN THOUSANDS)
Years ended December 31,
2004 2003 Variation
Interest Income $359,930 $325,581 10.6%
Tax equivalent adjustment 20,162 17,550 14.9%
Interest income on a tax
equivalent basis 380,092 343,131 10.8%
Interest expense 140,762 132,351 6.4%
Net interest income on a tax
equivalent basis 239,330 210,780 13.5%
Provision for loan losses 26,270 49,745 -47.2%
Net interest income on a tax
equivalent basis after provision 213,060 161,035 32.3%
Other operating income 102,579 98,800 3.8%
Gain on sale of securities 11,475 10,790 -6.3%
Gain on sale of loans 431 9,829 95.6%
Gain on sale of building 2,754 - N/A
Other operating expenses 217,533 223,744 -2.8%
Income on a tax equivalent basis
before income taxes 112,766 56,710 98.8%
Provision (credit) for income taxes 8,145 (285) -2957.9%
Tax equivalent adjustment 20,162 17,550 14.9%
NET INCOME (LOSS) $84,459 $39,445 114.1%
SELECTED RATIOS:
Per share data (1):
Earnings (loss) per common share $1.81 $0.69
Average common shares
outstanding** 46,639,104 46,661,248
Common shares outstanding
at end of period** 46,639,104 46,639,104
Cash Dividends per Share:
Preferred Stock* $- $1.73
Common Stock $0.49 $0.44
(1) Per share data is based on the average number of shares outstanding
during the period.
Basic and diluted earnings per share are the same.
* Including redemption premium in Dec. 2003
** After giving retroactive effect to the stock dividend declared on
July 9, 2004
** After giving retroactive effect to the stock dividend declared on
July 9, 2004
DATASOURCE: Santander BanCorp
CONTACT: Maria Calero, +1-787-777-4437, or Evelyn Vega, +1-787-777-4546,
both of Santander BanCorp
Web site: http://www.santandernet.com/