Santander BanCorp Doubles Earnings per Share for the Third Quarter of 2004 Versus Last Year's Same Quarter

Santander BanCorp Doubles Earnings per Share for the Third
Quarter of 2004 Versus Last Year's Same Quarter
* Earnings per common share (EPS) for the quarter ended September 30, 2004
amounted to $0.47 per share, an improvement of $0.25 compared to $0.22 for the
same quarter in 2003, which more than doubles EPS for the same quarter of last
year.













SAN JUAN, Puerto Rico, Oct. 28  /PRNewswire-FirstCall/ -- Santander BanCorp
(NYSE: SBP; LATIBEX: XSBP), reported today its unaudited financial results for
the quarter and nine month period ended September 30, 2004. The financial
results for the third quarter of 2004 reflect a substantial improvement in net
income, which reached $21.9 million, an 89.5% improvement over net income of
$11.5 million reported during the third quarter of 2003.  For the nine-month
period ended September 30, 2004, net income amounted to $63.1 million, a
significant increase of 166.3% over net income of $23.7 million for the nine
months ended September 30, 2003.

For the quarter ended September 30, 2004, net income amounted to $21.9 million
or $0.47 per common share compared to net income of $11.5 million or $0.22 per
common share(2) for the third quarter of 2003. This represents a $0.25 per
common share increase which more than doubles earnings over last year's same
quarter.  Return on Average Common Equity (ROE) and Return on Average Assets
(ROA) were 17.14% and 1.10%, respectively, for the quarter ended September 30,
2004, compared to 7.93% and 0.67%, respectively, for the third quarter of 2003.
The Efficiency Ratio1 improved 566 basis points to 61.97% for the third quarter
of 2004, compared to 67.63% reported during the third quarter of 2003. The
improvement in the efficiency ratio during the third quarter of 2004, when
compared to the same quarter of 2003, is a direct result of higher revenues and
lower expenses.

Net income for the nine-month period ended September 30, 2004 reached $63.1
million or $1.35 per common share. This represents an increase of 166.3% over
net income for the nine-month period ended September 30, 2003 of $23.7 million
or $0.43(2) per common share.  ROE and ROA were 17.21% and 1.12%, respectively
for the nine month period ended September 30, 2004, an increase of 1,210 basis
points in ROE and 64 basis points in ROA when compared to ROE and ROA of 5.11%
and 0.48%, respectively for the nine month period ended September 30, 2003. 
The Efficiency Ratio1 for the nine-month period ended September 30, 2004 also
reflected a significant improvement of 688 basis points reaching 64.65%
compared to 71.53% for the nine-month period ended September 30, 2003.

The consolidated Balance Sheet and Income Statement Data for the quarter and
nine-month period ended September 30, 2003, has been restated to give
retroactive effect to the acquisition of Santander Securities Corporation by
Santander BanCorp on December 30, 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 $10.3 million improvement in net income for the third quarter of 2004
compared to the same period in 2003 was principally due to an increase of $7.0
million in net interest income, a decrease of $1.9 million in the provision for
loan losses, a $3.5 million decrease in operating expenses and a decrease in
the provision for income tax of $0.9 million. These changes were partially
offset by a decrease of $3.0 million in other income due primarily to decreases
in gain on sale of loans and in broker-dealer, asset management and insurance
fees.

The increase of $39.4 million or 166.3% in net income for the nine-month period
ended September 30, 2004 compared to the same period in 2003 was principally
due to an increase of $25.1 million in net interest income, a decrease in the
provision for loan losses of $13.0 million, a decrease in operating expenses of
$3.8 million and a decrease in the provision for income tax of $1.3 million.
These changes were partially offset by a decrease of $3.8 million in other
income due primarily to a decrease in gain on sale of loans.

For the quarter ended September 30, 2004, net interest income(1) amounted to
$61.0 million, an increase of 14.2% compared to $53.4 million for the third
quarter in 2003. The improvement in net interest income1 was principally due to
an increase in average interest earning assets of $1.1 billion or 17.2% and a
decrease of 16 basis points in total cost of funds.

For the nine-month period ended September 30, 2004, net interest income(1)
amounted to $177.7 million, an increase of 17.8% compared to $150.8 million for
the same period in 2003. This improvement was due to an increase in average
interest earning assets of $998 million or 16.0% and a decrease in total cost
of funds of 42 basis points.

The provision for loan losses reflected a decrease of $1.9 million or 21.7%
from $9.0 million for the quarter ended September 30, 2003 to $7.0 million for
the third quarter of 2004. Furthermore, for the nine-month period ended
September 30, 2004, the reduction in the provision for loan losses was $13.0
million or 37.3% compared to the same period in 2003. The reduction in the
provision for loan losses was due to a 9% decrease in non-performing loans,
which are down to $96.8 million as of September 30, 2004 from $106.0 million as
of September 30, 2003. A 26.7% reduction in net charge-offs from $28.3 million
for the nine-months ended September 30, 2003 to $20.7 million for the same
period in 2004 also had a favorable impact on the provision for loan losses. In
addition to the improvement in non-performing loans, the reduction in the
provision for loan losses is due to a significant decrease in the percentage of
net consumer loan charge-offs during the first three quarters of 2004,
resulting in a reduction in the loss ratios used by the Company in the
determination of the provision for loan losses.

There was a decrease in other income of $3.0 million or 9.6% from $31.4 million
for the quarter ended September 30, 2003 to $28.4 million for the quarter ended
September 30, 2004. This reduction was principally due to decreases of $3.1
million in gain on sale of loans and $2.6 million in broker- dealer, asset
management and insurance fees. These decreases were partially offset by a $2.5
million increase in gains on sale of securities.

For the nine months ended September 30, 2004, other income decreased $3.8
million compared to the same period in 2003. This decrease was the result of
lower gain on sale of loans of $6.9 million that were only partially offset by
increases of $1.4 million in fee income from the broker-dealer, asset
management and insurance operations,  $1.5 million on gain on sale of
securities and $1.0 in bank service fees on deposit accounts and other gains
and losses. The increase in other gains and losses resulted from the gain on
sale of a building during the first quarter of 2004 and was partially offset by
lower trading gains.

For the quarter ended September 30, 2004, the Efficiency Ratio(1) improved 566
basis points to 61.97%, compared to 67.63% for the quarter ended September 30,
2003. This improvement was mainly a result of higher revenues (excluding gains
on sales of securities) and a decrease of $3.5 million in operating expenses.

For the nine-month period ended September 30, 2004, the Efficiency Ratio(1)
improved 688 basis points to 64.65% from 71.53% for the same period in 2003. 
This improvement was 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 $3.8 million in operating expenses.

Operating expenses decreased $3.5 million or 6.1% from $57.4 million for the
quarter ended September 30, 2003 to $53.9 million for the quarter ended
September 30, 2004. This decrease was due primarily to a decrease in EDP
servicing, amortization and technical services of $3.1 million due to lower
servicing costs, a decrease of $1.0 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
amortization of intangibles of $0.5 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 $1.2 million in advertising
and promotion consistent with our strategy to increase market share and grow
the volume of our business.

For the nine-month period ended September 30 2004, there was a decrease of $3.8
million or 2.3% in operating expenses compared to the same period in 2003.
There was an increase in personnel expenses of $2.8 million due to higher
salaries, in-sourcing of collection services and severance payments, partially
offset by an increase in expenses deferred as loan origination costs.  The
increase in personnel costs was offset by a decrease in other operating
expenses of $6.7 million. This decrease was primarily due to a decrease of $6.2
million or 21% in EDP servicing, amortization and technical services due to
lower servicing costs. There were also decreases in amortization of intangibles
of $2.8 million, repossessed assets provision and expenses of $2.0 million and
collections and related legal costs of $2.4 million. These decreases were
partially offset by increases in professional services of $4.0 million,
business promotion of $2.2 million and other of $1.4 million.

Balance Sheet

Total assets as of September 30, 2004 increased by $0.6 billion or 8.1% to $8.0
billion compared to $7.4 billion as of December 31, 2003 and reflected an
increase of $0.8 billion or 10.4% compared to $7.2 billion in total assets as
of September 30, 2003. As of September 30, 2004, there was an increase of $1.1
billion and $1.2 billion in net loans, including loans held for sale (further
explained below) compared to December 31 and September 30, 2003 balances,
respectively. The increase in net loans at September 30, 2004 compared to
December 31, 2003 was partially offset by a decrease in investment securities
of $599.2 million, a decrease of $11.2 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 $17.4 million
in other assets due to a reduction in accounts receivable and net deferred tax
assets.

As a result of management's efforts to increase market share, the net loan
portfolio, including loans held for sale, reflected a $1.1 billion or 25.5%
increase, reaching $5.2 billion at September 30, 2004, compared to the figures
reported as of December 31, 2003. The mortgage loan portfolio grew $946.4
million or 64.8% during the third quarter of 2004 compared to the December 31,
2003 mortgage loan portfolio. There was a 12.2% increase in mortgage loan
production for the nine month period ended September 30, 2004 compared to the
same period in 2003. The commercial loan portfolio (including construction
loans) and the consumer loan portfolio also reflected increases of $66.9
million or 2.9% and $43.7 million or 10.8%, respectively as of September 30,
2004 compared to December 31, 2003.

Deposits at September 30, 2004 reflected an increase of $374.0 million or 9.03%
compared to deposits of $4.1 billion as of December 31, 2003, and an increase
of $825.8 million or 22.4% compared to deposits of $3.7 billion as of September
30, 2003.  This increase was also in line with Company's objective of
increasing its market share.  Total borrowings (comprised of federal funds
purchased and other borrowings, securities sold under agreements to repurchase,
commercial paper issued, term and capital notes) increased $168.2 million
compared to borrowings at December 31, 2003.

Financial Strength

Non-performing loans to total loans as of September 30, 2004 amounted to 1.84%,
a 49 basis point improvement over the reported 2.33% as of December 31, 2003
and a 77 basis point improvement over the reported 2.61% as of September 30,
2003. Non-performing loans at September 30, 2004 amounted to $96.8 million, a
1.6% improvement compared to $98.4 million as of December 31, 2003 and an 8.7%
improvement compared to $106.0 million as of September 30, 2003. There had been
an improving trend in this indicator during 2003, which further continued
through the third quarter of 2004.

The annualized ratio of net charge-offs to average loans for the quarter ended
September 30, 2004 improved 38 basis points to 0.27% from 0.65% reported for
the quarter ended September 30, 2003. For the third quarter of 2004 there was a
decrease in net charge-offs of $3.2 million compared to the third quarter of
2003. Net charge-offs for the nine-month period ended September 30, 2004
decreased $7.5 million, or 26.7%, compared to the same period in 2003. The
annualized ratio of net charge-offs to average loans for the nine months ended
September 30, 2004 improved 35 basis points to 0.60% from 0.95% for the same
period in 2003. The Company is committed and has directed its efforts to
continue improving this ratio.

The allowance for loan losses represents 1.34% of total loans as of September
30, 2004, a 33 basis point reduction over the 1.67% reported as of December 31,
2003. The allowance for loan losses to total non-performing loans at September
30, 2004 reached 73.05% compared to 71.74% at December 31, 2003 and 60.78% at
September 30, 2003. Excluding non-performing mortgage loans (for which the
Company has historically had a minimal loss experience) this ratio is 153.8%
compared to 152.8% and 133.5% as of December 31 and September 30, 2003,
respectively.

As of September 30, 2004, total capital to risk-adjusted assets (BIS ratio)
reached 10.87% and Tier I capital to risk-adjusted assets and leverage ratios
were 9.32% and 6.13%, 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 September 30, 2004, the
Company had over $12.1 billion in Customer Financial Assets Under Control,
which represents a $1.4 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.

During the third quarter of 2004, the Company's common stock price per share
increased from $21.84 (after adjustment for the stock dividend) to $25.00,
representing a $147.4 million increase in aggregate shareholder value.

During the third quarter of 2004, Santander BanCorp declared a cash dividend of
11 cents per common share to its shareholders of record as of September 10,
2004, payable on October 1, 2004, resulting in an annualized dividend yield of
1.76%.

There were no stock repurchases during the last three quarters of 2003 and the
first three quarters of 2004 under the Stock Repurchase Program.  As of
September 30, 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 27 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) is the largest financial group in Spain and
Latin America, and the second largest bank in the Euro Zone by market
capitalization, as of 12.31.03. Founded in 1857, it has forged important
business initiatives, including a 15-year old alliance with The Royal Bank of
Scotland, ownership of the third largest banking group in Portugal and a
leading consumer finance franchise in Germany, Italy and seven other European
countries.

Grupo Santander maintains a leading position in Latin America, with 4,052
offices in ten countries, serving more than 12 million individual clients and
approximately half a million small and medium sized companies, managing over
$115 billion in business (on & off-balance sheet).  In 2003, Santander recorded
$1.49 billion in net attributable profits in Latin America, an increase of over
14%.

Expected date for reporting 2004 fourth quarter and year-end financial results

Fourth quarter and year-end results - January 27, 2005

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
                         CONSOLIDATED BALANCE SHEETS
           AS OF SEPTEMBER 30, 2004 AND 2003 AND DECEMBER 31, 2003
                (Dollars in thousands, except per share data)

             ASSETS

                                           As restated
                               (Unaudited) (Unaudited)  (Audited)  Variance
                                                                    09/04-
                                30-Sep-04   30-Sep-03   31-Dec-03    12/03
  CASH AND CASH EQUIVALENTS:
    Cash and due from banks       $153,049    $122,312     $99,183   54.31%
    Interest bearing deposits       45,452      21,770      15,300  197.07%
    Federal funds sold and
     securities purchased under
     agreements to resell          339,150     235,700     278,750   21.67%
            Total cash and cash
             equivalents           537,651     379,782     393,233   36.73%
  INTEREST BEARING DEPOSITS         50,000          -        10,000    N/A
  TRADING SECURITIES                13,423      29,499      42,547  -68.45%
  INVESTMENT SECURITIES
   AVAILABLE FOR SALE, at fair
    value                        1,051,852   1,677,482   1,664,311  -36.80%
  INVESTMENT SECURITIES HELD TO
   MATURITY, at amortized cost     846,368     887,169     833,127    1.59%
  LOANS HELD FOR SALE, net         283,017     316,666     297,201   -4.77%
  LOANS, net                     4,988,793   3,747,736   3,917,566   27.34%
  ALLOWANCE FOR LOAN LOSSES        (70,731)    (64,425)    (70,572)   0.23%
  PREMISES AND EQUIPMENT, net       49,930      60,639      61,107  -18.29%
  ACCRUED INTEREST RECEIVABLE       45,354      36,577      36,398   24.61%
  GOODWILL                          34,791      34,791      34,791    0.00%
  INTANGIBLE ASSETS                  5,949       4,881       4,662   27.61%
  OTHER ASSETS                     124,638      98,390     142,050  -12.26%
                                $7,961,035  $7,209,187  $7,366,421    8.07%


   LIABILITIES AND STOCKHOLDERS' EQUITY
  DEPOSITS:
  Non-interest bearing            $699,993    $665,397    $700,413   -0.06%
  Interest bearing               3,816,200   3,024,956   3,441,815   10.88%
            Total deposits       4,516,193   3,690,353   4,142,228    9.03%
  FEDERAL FUNDS PURCHASED AND
   OTHER BORROWINGS                722,000     467,000     350,000  106.29%
  SECURITIES SOLD UNDER
   AGREEMENTS TO REPURCHASE      1,301,627   1,921,893   1,808,238  -28.02%
  COMMERCIAL PAPER ISSUED          599,376     224,807     254,904  135.14%
  TERM NOTES                       124,281     127,401     165,966  -25.12%
  CAPITAL NOTES                     15,925      15,925      15,925    0.00%
  ACCRUED INTEREST PAYABLE          23,246      22,933      18,728   24.12%
  OTHER LIABILITIES                132,150     124,537     129,600    1.97%
                                 7,434,798   6,594,849   6,885,589    7.98%

  STOCKHOLDERS' EQUITY:
    Series A Preferred stock,
     $25 par value; 10,000,000
     shares authorized;
     2,610,008 shares issued
     and outstanding in
     September 2003                     --      65,250          --    N/A
    Common stock, $2.50 par
     value; 200,000,000 shares
     authorized; 50,650,058
     shares issued in
    September 2004 and 46,410,214
     shares issued in September
     and December 2003;
     46,639,104 shares
     outstanding in September
     2004 and 42,398,954 shares
     outstanding in September and
    December 2003.                 126,626     116,026     116,026    9.14%
    Capital paid in excess of
     par value                     304,171     211,742     211,742   43.65%
    Treasury stock at cost,
     4,011,260 shares in June
     2004, 2003 and December
     2003.                         (67,552)    (67,552)    (67,552)   0.00%
    Accumulated other
     comprehensive loss, net of
     taxes                         (22,719)     (5,867)    (19,465)  16.72%
    Retained earnings-
      Reserve fund                 119,432     116,482     119,432    0.00%
      Undivided profits             66,279     178,257     120,649  -45.06%
        Total stockholders'
         equity                    526,237     614,338     480,832    9.44%
                                $7,961,035  $7,209,187  $7,366,421    8.07%


                            SANTANDER BANCORP
                    CONSOLIDATED STATEMENTS OF INCOME
            FOR THE NINE MONTH PERIODS AND THE QUARTERS ENDED
                       SEPTEMBER 30, 2004 AND 2003

                (Dollars in thousands, except per share data)


                     For the nine months ended    For the quarters ended
                                   As restated                As restated
                    (Unaudited)    (Unaudited)   (Unaudited)  (Unaudited)
                    September 30, September 30, September 30, September 30,
                        2004          2003          2004          2003
  INTEREST INCOME:
    Loans              $184,995     $180,153       $66,242      $58,617
    Investment
     securities          76,817       57,274        25,070       22,229
    Interest
     bearing
     deposits               573          559           338          150
    Federal funds
     sold
     and securities
     purchased under
     agreements
     to resell            2,018        1,455           799          499
         Total
          interest
          income        264,403      239,441        92,449       81,495

  INTEREST EXPENSE:
    Deposits             42,115       42,923        15,404       12,788
    Securities sold
     under agreements
     to repurchase
     and other
     borrowings          58,688       57,649        21,081       19,761
    Subordinated
     capital notes           54          395            25          (10)
            Total
             interest
             expense    100,857      100,967        36,510       32,539

            Net
             interest
             income     163,546      138,474        55,939       48,956

  PROVISION FOR
   LOAN LOSSES           21,770       34,745         7,020        8,965
            Net interest
             income
             after
             provision
             for
             loan
             losses     141,776      103,729        48,919       39,991

  OTHER INCOME:
    Bank service charges,
     fees and other      28,949       29,641         9,725        9,724
    Broker/dealer, asset
     management
     and insurance fees  38,176       36,769        12,911       15,551
    Gain on sale
     of securities       11,465       10,012         2,462            4
    Gain on sale of
     mortgage servicing
     rights                 284          327            88          142
    Gain on sale
     of loans               (84)       6,845          (240)       2,833
    Gain on sale
     of building          2,754           --            --           --
    Other income          6,463        8,205         3,452        3,175
            Total
             other
             income      88,007       91,799        28,398       31,429

  OPERATING EXPENSES:
    Salaries and employee
     benefits            69,037       66,193        22,808       22,982
    Occupancy costs      10,109       10,117         3,439        3,495
    Equipment expenses    5,317        5,631         1,715        1,861
    EDP servicing,
     amortization and
     technical expenses  23,219       29,375         7,121       10,233
    Communication
     expenses             6,792        6,276         2,202        2,165
    Business promotion    7,140        4,911         2,828        1,668
    Other taxes           6,574        7,525         2,049        2,368
    Other operating
      expenses           34,390       36,377        11,689       12,591
            Total other
             operating
             expenses   162,578      166,405        53,851       57,363

            Income
             before
             provision
             for
             income tax  67,205       29,123        23,466       14,057

  PROVISION FOR
   INCOME TAX             4,075        5,419         1,597        2,514

  NET INCOME             63,130       23,704        21,869       11,543
  DIVIDENDS TO
   PREFERRED
    SHAREHOLDERS             --        3,426            --        1,142
  NET INCOME
   AVAILABLE TO COMMON
   SHAREHOLDERS          63,130       20,278        21,869       10,401
  EARNINGS PER
   COMMON SHARE*          $1.35        $0.43         $0.47        $0.22

  * After giving retroactive effect to the stock dividend declared on
    July 9, 2004


  SANTANDER BANCORP

                                     30-Sep                    30-Sep-03
                                      2004    2004    2004    As restated
                                    Year to  Third   Second Year to  Third
  SELECTED RATIOS                     Date  Quarter Quarter   Date  Quarter

  Net interest margin (1)             3.28%   3.19%   3.24%   3.23%   3.27%
  Return on average assets (2)        1.12%   1.10%   0.86%   0.48%   0.67%
  Return on average
   common equity (2)                 17.21%  17.14%  13.80%   5.11%   7.93%
  Efficiency Ratio (1,3)             64.65%  61.97%  67.49%  71.53%  67.63%
  Non interest income to revenues    24.97%  23.50%  21.14%  27.71%  27.83%
  Capital:
     Total capital to
      risk-adjusted assets              --   10.87%  10.64%     --   13.16%
     Tier I capital to
      risk-adjusted assets              --    9.32%   9.09%     --   11.90%
     Leverage ratio                     --    6.13%   6.17%     --    7.86%
  Non-performing loans to total
   loans                                --    1.84%   1.95%     --    2.61%
  Non-performing loans plus accruing
   loans past-due 90 days
   or more to loans                     --    1.89%   2.03%     --    2.69%
  Allowance for loan losses
   to non-performing loans              --   73.05%  70.77%     --   60.78%
  Allowance for loans losses to
   period-end loans                     --    1.34%   1.38%     --    1.59%



  OTHER SELECTED FINANCIAL DATA          9/30/2004   9/30/2003  12/31/2003
                                               (dollars in millions)
  Customer Financial Assets Under
   Control:
    Bank deposits
     (excluding brokered deposits)        $4,116.7    $3,393.2    $3,782.8
    Broker-dealer customer accounts        4,393.3     3,505.4     3,727.4
    Mutual fund and  assets managed        2,308.0     1,761.0     1,859.0
    Trust, institutional and private
     accounts assets under management      1,247.0     1,207.0     1,300.6
      Total                              $12,065.0    $9,866.6   $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
                                As restated
                       Sept. 30, Sept. 30, June 30,  3Q04/3Q03 3Q04/2Q04
                          2004      2003     2004   Variation  Variation

   Interest Income      $92,449    $81,495  $86,126     13.4%      7.3%
   Tax equivalent
    adjustment            5,025      4,440    4,375     13.2%     14.9%
   Interest income
    on a tax
    equivalent
    basis                97,474     85,935   90,501     13.4%      7.7%
   Interest expense      36,510     32,539   32,496     12.2%     12.4%
   Net interest
    income on a
    tax equivalent
    basis                60,964     53,396   58,005     14.2%      5.1%
   Provision for
    loan losses           7,020      8,965    6,000    -21.7%     17.0%

   Net interest
    income on a
    tax equivalent
    basis after
    provision            53,944     44,431   52,005     21.4%      3.7%
   Other operating
    income               26,176     28,592   23,037     -8.4%     13.6%
   Gain on sale
    of securities         2,462          4      100  61450.0%   2362.0%
   Gain on sale
    of loans               (240)     2,833      (55)  -108.5%    336.4%
   Gain on sale
    of building              --         --       --       N/A       N/A
   Other operating
    expenses             53,851     57,363   54,658     -6.1%     -1.5%
   Income on a
    tax equivalent
    basis before
    income taxes         28,491     18,497   20,429     54.0%     39.5%
   Provision (credit)
    for income taxes      1,597      2,514        8    -36.5%  19862.5%
   Tax equivalent
    adjustment            5,025      4,440    4,375     13.2%     14.9%
   NET INCOME (LOSS)    $21,869    $11,543  $16,046     89.5%     36.3%

   SELECTED RATIOS:

   Per share data (1):
   Earnings (loss)
    per common
    share                 $0.47      $0.22      $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*      $--      $0.44        $--
      Common Stock        $0.11      $0.11      $0.11


                                               Nine-month Periods ended
                                                    September 30,

                                                      As restated
                                             2004         2003     Variation

   Interest Income                         $264,403     $239,441      10.4%
   Tax equivalent adjustment                 14,141       12,366      14.4%
   Interest income on a tax equivalent
    basis                                   278,544      251,807      10.6%
   Interest expense                         100,857      100,967      -0.1%
   Net interest income on a tax
    equivalent basis                        177,687      150,840      17.8%
   Provision for loan losses                 21,770       34,745     -37.3%

   Net interest income on a tax
    equivalent basis after provision        155,917      116,095      34.3%
   Other operating income                    73,872       74,942      -1.4%
   Gain on sale of securities                11,465       10,012     -14.5%
   Gain on sale of loans                        (84)       6,845     101.2%
   Gain on sale of building                   2,754           --        N/A
   Other operating expenses                 162,578      166,405      -2.3%
   Income on a tax equivalent basis
    before income taxes                      81,346       41,489      96.1%
   Provision (credit) for income taxes        4,075        5,419     -24.8%
   Tax equivalent adjustment                 14,141       12,366      14.4%
   NET INCOME (LOSS)                        $63,130      $23,704     166.3%

   SELECTED RATIOS:

   Per share data (1):
   Earnings (loss) per common share           $1.35        $0.43
   Average common shares
     outstanding **                      46,639,104   46,668,710
   Common shares outstanding
     at end of period **                 46,639,104   46,639,104
   Cash Dividends per Share:
      Preferred Stock*                          $--        $1.31
      Common Stock                            $0.33        $0.33


   (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


DATASOURCE: Santander BanCorp



CONTACT:  Maria Calero, [phone], or Evelyn Vega, [phone],

for Santander BanCorp 



Web site:  http://www.santandernet.com/ 

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