Good morning. My name is Laurie and I’ll be your conference operator today. Thank you for joining us for this conference call for Oriental Financial Group. Our participants are José Rafael Fernández, President, Chief Executive Officer and Vice Chairman; Ganesh Kumar, Executive Vice President and Chief Financial Officer; José Ramón González, Senior Executive Vice President, Banking & Corporate Development; Norberto González, Executive Vice President and Chief Risk Officer; and Ramon Rosado, Senior Vice President, Treasurer. There is a presentation that accompanies today’s remarks. It can be found on the Investor Relations website under news and presentations and then under webcast presentations and other files. Please note this call may feature certain forward-looking statements about management’s goals, plans and expectations, which are subject to various risks and uncertainties outlined in the Risk Factors section of Oriental’s Securities and Exchange Commission filings. Actual results may differ materially from those currently anticipated. We disclaim any obligation to update information disclosed in this call as a result of developments which occur afterwards. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. During the question-and-answer session, we ask questioners to not use cell phones or blackberries as they might cause loud static on the line. I would now like to turn the call over to Mr. Fernández. José Fernández: Good morning. Thank you for listening in today. I’m here in New York with Ganesh and José Ramón, Norberto and Ramón José who are in Puerto Rico. I’ll review our results and Ganesh will go over the income statement and balance sheet. Then I’ll come back and wrap up and then we’ll go into question and answer. We’d like to end today’s call no later around 9:50 in the morning. If anybody has…

Thank you, Mr. Rafael. Let’s start by looking at the income statement first and then the balance sheet components. Turning to page 7, we can see the interest income from non-covered loans performed well. We saw interest income increased in all 4 categories, in particular residential mortgages and commercial loans. Yield balances in production overall up particularly in the strategically important commercial loan category. Residential mortgages benefited from slightly better yields and low inflows into delinquencies. On the covered loan side, cash flows continue to improve resulting in increased yield and lower provision. As a result of us working more closely with the former Eurobank borrowers, during the quarter, when we concluded our annual exercise of recasting future cash flows of all the pools, improvements in actual cash flows over the last forecast let us to further re-yield our covered loan portfolio to 20.38%, up 263 basis points from last quarter. The accretable yield also increased consequently to $183.8 million from $177.3 million last quarter. This includes the transfer of about $28.9 million from non-accretable yield due to this revised forecast. With regard to the investment securities, we’re seeing higher interest income and yield due to the lower premium amortization on mortgage-backed securities. The premium amortization in third quarter was $7.9 million compared to $13.2 million in the second quarter. The lower premium amortization also more than offset a decline of interest income due to reduction in size and lower yield of the portfolio. Interest income from loans as a percentage of total interest income equals 61% up from 49% in the year ago quarter underscoring our emphasis on increased banking activity. Now turning to page 8, interest expense totaled across the board, average pricing of core retail deposits fell to 1.25% compared to 1.34% in the second quarter while…

[Operator Instructions] Your first question comes from the line of Joe Gladue of B. Riley.

Let me start off with -- I guess some margin question, just wondering where the -- sort of the average yields of the loans you originating are compared to I guess the average yields on the portfolio now? José Fernández: I'm sorry Joe. Could you repeat the question on the yields on the loans?

Yes. The new loans you are originating, how do they compare to the average yields, existing yields on the loan portfolio. In other words, are they coming on at -- go ahead. José Fernández: Pretty much in line with the yields that we're having on the portfolio, it certainly depends on which type of loan on the commercial side [indiscernible] or small business have a higher yield and then more corporate have the lower yield. But on average pretty much along those lines. That's the trend that we’re seeing.

Joe, the difference that you see in the loan yield from last quarter to this quarter, is not because of the new volume pricing, but the mix. We have little bit more consumer also the yield from the residential mortgage portfolio is better purely because of the different vintages that’s rolling off.

Okay, thanks, that’s helpful. And just on the funding side, particularly I guess deposit costs and everything, but you expect to see further reductions in deposit costs going forward or how much more can you get? José Fernández: Yes, we see that is an opportunity for us to do that that we continue to grow the commercial bank, we’ll gain more on the non-interest bearing deposit accounts. And also on the pure interest bearing accounts retailed, we do have some space to improve still for the remaining part of the year. And we have gone down from 135 or so last quarter to 125 now, and most likely will trend down to closer to 115 or so in the fourth quarter, on the retail cost of the deposits.

Okay, all right. Let me move over little bit to just a capital issues, can you share what your thoughts are in terms of your capital ratios post, I guess both capital raises and the merger -- how much excess capital will you retain? And I guess what where they look like in relation to, what they look like in relation to Basel 3? José Fernández: We have, Joe -- we’re going to have to defer those type of questions related to the capital raise that we are involved with for -- look at the press release, that we have come out with and on our registration statement.

[Operator Instructions] Your next question comes from the line of Robert Greene of Sterne Agee & Leach.

Just a quick question going back to the margin, that the full-year outlook of 3.5 to 3.6 just by my account, it implies I guess a modest decrease in margin for the fourth quarter from what you guys posted in this quarter. So I'm wondering, I know there is a lot of moving parts with the covered asset portfolio, MBS prepayments et cetera. And I'm wondering if you just kind of walk me through the puts and takes I suppose to get to the margin in the fourth quarter? José Fernández: Before we go into the details, I will pass it to Ganesh to give you the specifics, but I just want to say something here regarding that question on a high level. We are as you know going through a transition of our balance sheet, and that's one reason why you see us having a quite volatile NIM as we have done some deleverage and as we have booked more loans and then you have the core [ph] portfolio being reyielded. So those factors on a macro basis are affecting the NIM. But for this quarter specifically, premium amortization and the investment portfolio was one of the main drivers for an increased NIM, and I like to pass it to Ganesh for him to go in more detail.

Sure, Robert. I think as you correctly pointed out there are lots of moving pieces. The forecast we have or what we expect is premium amortization to be at the same level if not much higher. The reason for the margin might be because of the deleverage timing. We still -- our modeling assumes end of the December deleverage, remaining deleverage and if you are able to do earlier it might be little bit, so we just accommodated for that as well -- on our NIM guidance.

Okay, that makes sense. And I'm wondering it just relates to the [indiscernible] it looks like the common equity offering size was increased from the original filing. An I understand it's -- you might be limited on what you can tell me, but I'm wondering kind of what the thought process was between -- behind increasing the deal size? José Fernández: Unfortunately, we can't address those type of questions in this call and we refer you to our registration statement and the press releases.

Okay, that's fine. And just one last question, it looks like growth overall was positive in the quarter. Obviously the fee income was positive and some of the period and loan balances, I think, were better than maybe expectations. Is this a function of the Puerto Rican economy improving or is this OFG taking share from competitors? José Fernández: I think it has both components play into this, but I think the bigger part is the - of course that we have put in place organically at Oriental throughout the last year and a half or so. José Ramón can add into that from his perspective.

Yes, I mean I think we have a team that is in place and working cohesively to really build market share vis-à-vis our competitors and I think we’re now seen and recognized as a credible force in the commercial banking segment. And that’s part of what you see there. So part of it is taking market share away from competitors. I would say though that it helps that the economy is got a better tone to it, feels more stable, and we’re seeing more investment activity in the market. So we’ll see when more numbers come out from other banks and their growth, but it may well be that there has been some growth in the overall pine of just re-shifting of market shares.

At this time, there are no further questions. I’d now turn the call back over to management for closing remarks. José Fernández: Thank you very much for joining us today in this investor call for the third quarter of 2012. Appreciate your time and looking forward to speaking to you in the near future. Have a great day.

Thank you for participating in the Oriental Financial Group Conference Call. You may now disconnect.