Good morning. My name is Jackie and I will be your conference operator today. Thank you for joining us for this conference call for Oriental Financial Group. Our speakers are José Rafael Fernández, President, Chief Executive Officer and Vice Chairman; and Ganesh Kumar, Executive Vice President and Chief Financial Officer. There is a presentation that accompanies today's remarks. It can be found on the Investor Relations website under News & Presentations and then under Webcasts, Presentations & 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 Risks 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 afterward. 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 cellphones or BlackBerry as they might cause loud static on the line. I would now like to turn the call over to Mr. Fernández. Please go ahead. José Rafael Fernández: Thank you for joining us today. I'll review some big picture items and Ganesh will go over key aspects of our income statement and balance sheet. I'll wrap it up and then we'll go into question and answer. Let's start on slide 4. The fourth quarter was a transformative period for us. We closed on the BBVA Puerto Rico acquisition and completed the deleveraging of our investment portfolio, achieving one of our major business strategies. The result is an almost complete change in our balance sheet and the creation of a larger, more diversified and…

Thank you, José Rafael. Let's go over some major items on the income statement. Turning to slide 9, we reported a loss for the quarter of about $23 million equal to $0.53 a share. The year was profitable at $15 million equal to $0.35 per share. In both of these cases, the basic EPS is the same as the diluted EPS which is calculated using if-converted method and considering the most diluted result. The quarter included a number of non-recurring type items that negatively affected the results by $29 million in the quarter and $22 million in the year. Deleveraging of our portfolio cost $23 million in the fourth quarter. When combined with the gain on sales in the third quarter, the net P&L impact of deleveraging was close to the plan at $12 million. In addition, we experienced a $2.6 million loss from net income in the sales that occurred at the end of the third quarter, and later unwinding the repos and hedges in the fourth quarter. Approximately $5.4 million of non-interest expenses in the fourth quarter were related to BBVA acquisition and integration. These expenses totaled more than $7 million for the year. The fourth quarter also benefited from $3.7 million of net income after-tax that we realized from 13 days of BBVA operations after the closing. For this quarter, we also incurred $2 million in dividends on [PDC] and D preferred shares that we (inaudible) of the capital rates in anticipation of the acquisition. The dividends totaled close to $4 million for the year. Please turn to slide 10 for more detail on our deleveraging. During the third and fourth quarters, Oriental sold $1 billion of securities and paid down our extinguished $1.4 billion of repos and associated hedges. After the acquisition, we also sold $420…

(Operator Instructions). Again, we ask questioners to not use cellphones or BlackBerry as they might cause a loud static on the line. Thank you. Our first question comes from the line of Robert Greene with Sterne Agee, Leach. Robert Greene - Sterne Agee & Leach Inc.: Good morning, everyone, and congratulations on a very busy quarter. José Rafael Fernández: Thank you, Robert. Robert Greene - Sterne Agee & Leach Inc.: Just a couple of quick questions. First, I want to address the $1.40 guidance. Specifically, are you including the $8 million in restructuring charges in that? José Rafael Fernández: The answer to that question is yes. I'll let Ganesh go into details to that question.

Yeah, $1.40 includes everything. It is the GAAP earnings that we are going to report. Robert Greene - Sterne Agee & Leach Inc.: Okay. And I guess in relation to guidance, I'm just going back to the presentation when the deal was announced and it seems like the guidance now versus kind of what you indicated for the accretion at the deal announcement, it seems a little bit more conservative at this point and I'm wondering what's changed really over the past six months to cause that? José Rafael Fernández: I've got to comment on that. One is, remember that the presentation was based on analyst estimates back in June of last year. So, that's one reason. But also I'd like to point out, and Ganesh mentioned it in his remarks, we're seeing improved performance on the Eurobank portfolio. So, we're seeing also a higher amortization of the FDIC indemnification asset vis-à-vis 2012 for 2013. Robert Greene - Sterne Agee & Leach Inc.: Okay, that's helpful. Just a follow-up on the BBVA, I guess, reevaluation. It looks like the loan marks kind of came in [at] expectations. So I'm just wondering if you can go into little more detail as to how the actual asset was kind of revalued higher resulting in a lower goodwill? José Rafael Fernández: Yes, I'll let Ganesh go answer that one.

So, actually in the goodwill calculation, obviously, there are other adjustments that you need to make primarily, but if you look at it, when we did the initial calculations, we had an estimate of what the contribution from the income that's earned by BBVA during the course of the 2012 would be. And I think that estimate at that point in time -- we were presenting during June our estimates were a little conservative and the performance of the organizations was much better, and that was one. And then there are other valuations associated with other assets that are coming in, like accounts receivables and repos and all the other items that add to the differences that we are talking about. So primarily what happened was we had an original estimate of $95 million in goodwill. We revised it three months back to $85 million and now we are booking it on -- $53 million would be the resulting goodwill or $54 million would be the resulting goodwill of the combined book. Robert Greene - Sterne Agee & Leach Inc.: Thank you. Well, that's all the questions I have and I appreciate you taking my questions. José Rafael Fernández: You're welcome.

(Operator Instructions). Your next question comes from the line of Derek Hewett with KBW. Derek Hewett - Keefe Bruyette & Woods Inc.: Good morning, everyone. José Rafael Fernández: Hi, Derek. Derek Hewett - Keefe Bruyette & Woods Inc.: Hi. Given your outlook for the higher indemnity amortization given that the Eurobank portfolio is exceeding expectations, how much remaining accretion is left at this point?

Accretable yield is around $188 million. Derek Hewett - Keefe Bruyette & Woods Inc.: Okay. And was there any sort of meaningful movement from non-accretable to accretable during this quarter?

Not much. Derek Hewett - Keefe Bruyette & Woods Inc.: Okay. And then maybe kind of thinking about this relative to maybe some of the numbers that were presented when the deal was first announced, is the primary difference just be lower – excuse me, the higher indemnity amortization or is there anything else that's kind of moving results maybe a little bit lower? José Rafael Fernández: When you look at operating -- I mean, GAAP earnings like we're guiding here as $1.40, I mentioned the FDIC amortization as one aspect. I also think that, as I mentioned earlier, we used analyst estimates, we worked through 2012 the last six months of the year and there was a shift in interest rates that also affected. And then we're adding here the restructuring charges and the restructuring charges when the estimates were or original projections were made, they were taking them all at once which is the $40 million and that also is something that can't be done. So, as we explained in the call, we are doing some expensing out of the merger-related expenses in 2012 and beyond and then we're capitalizing or we capitalize some of them into 2012 also. So those are the moving parts, Derek. Really from an operating perspective, we see a very encouraging and very positive momentum in both operations. And we feel that again we're giving a guidance here for the first time. It's been a pretty short period of time since we acquired BBVA and we want to make sure that we have all the moving parts under control going forward. So we will be updating the guidance as the year goes by because we feel that there is still potential here to do a faster savings rate than in terms of the…

That's factored into the 2013 guidance. But in my presentation, Derek, I pointed out the consolidation and technology and operations platform that will happen only in the second half of the year. So it does not have the entire benefit of what we would accomplish by let's say October -- September, October. Therefore, it's not a significant portion but it is factored in to the extent that we would recognize those savings. Derek Hewett - Keefe Bruyette & Woods Inc.: Okay, great. Thank you very much. José Rafael Fernández: You're welcome.

(Operator Instructions). Your next question comes from the line of Todd Hagerman with Sterne Agee. Todd Hagerman - Sterne Agee & Leach Inc.: Good morning, everyone. A couple of questions. First, Ganesh, with some of the moving parts on the margin with the deleveraging that you talked and the sale on the securities a little bit better than expected, if you can give a little bit more color in terms of the outlook for the margin was I think about lower premium amortization, lower deposit costs but at a slower pace, and then with balance sheet now, how should we think about the margin outlook for '13 relative I think to your original expectations approaching 3% close to 4% perhaps with the changes in the balance sheet?

So, if you remember back in June, we said that we expect the margins to be inching closer to the 4% mark, because that's where we want to operate in our balance sheet profile. We still think that's possible but if you want a range, I would say somewhere between 3.78% to 3.95% would be my range. The reason why I'm giving the range is it also depends on our SOP calculation which we have to fully factor in, in the first quarter to see what that could result in. But without that, just comparing the loan book and not applying the purchase accounting, it should be around the 3.78% to 3.95% range that I mentioned. Todd Hagerman - Sterne Agee & Leach Inc.: Okay. And then on the accretable yield, the $188 million that you've mentioned, just to go a step further, what's the expected change year-over-year just as I think about 2012 to 2013 and the better performance in that – I just want to clarify the $188 million, what that specifically relates to in terms of the year and year-over-year change?

The second quarter of last year, we had a reyielding primarily, right? So I think that added -- if I remember correctly, I don't have the numbers in front of me but I can send it to you, maybe around $20 million to $30 million over the year in accretable yield as part of that reyielding that we did. And then there was further improvements that we saw when we did the annual recasting of the cash flows in October and therefore, that's the reason why we have better yield numbers in terms of covered loan portfolio, but also on the other hand we have higher FDIC amortizations due to that. Todd Hagerman - Sterne Agee & Leach Inc.: Okay, that's very helpful. Then just finally, José, going back to your prepared remarks with respect to the economy signs of stabilization and now in terms of the diversification in the balance sheet, particularly the C&I. Can you talk a little bit further about what you're now seeing in terms of commercial specifically and how that may be split up or -- as I think about commercial real estate or construction versus C&I, where are you seeing kind of incremental improvements or demand at this point? José Rafael Fernández: Todd, I think that's a very good question because as I mentioned, the economy is in a tough spot still even though it's showing some signs of stabilization. But having said that, we see our focus on C&I, we see our focus on the commercial C&I type of loan. We view a great opportunity with the middle markets and the middle segment there were (inaudible) there is great focus from our competitors, maybe they will focus now that I'm saying it. But having said that, I think on the commercial side we…

(Operator Instructions). Your next question comes from the line of [James Ellman with Ascend].

Good morning. I was hoping you might be able to just comment on what you're seeing in terms of real estate trends in the island? And if you could maybe comment particularly on the more generalized single family housing, and then also some of the higher end, high-rise properties along the beaches they were built maybe potentially for second homes? Thank you. José Rafael Fernández: Yes. Real estate, I'll make some general comments. José Ramón is on the line, so he can add if he needs to add anything to what I say. But I feel from a residential perspective, home prices on residences between 100,000 to 253,000 I think that's kind of a market that has stabilized and there is some excess demand right now. High rises in the beach, second homes, I think that's a pretty tough market right now and I'm not seeing much activity there. And if there is some activity, it's probably going to be seen on the bulk side the stress pricing type of thing. José Ramón, if you want to add anything, please go ahead. José Ramón González: Sure. I think you've covered it on the residential loans. I think pricing pressures attenuated somewhat in housing below $300,000. There is of course no need for construction. What we're doing is, is selling out the inventory that was built up over the last five years and the secondary market transactions, but again they seem to have a better tone in pricing that goes up to middle level. With respect to higher cost properties that was described in the question, that is still relatively slow but I think we have to mention that over the course of 2012, we saw a more aggressive participation by opportunistic wholesale buyers of those properties and some of the very significant [REO] banks of that nature have been sold at a significant discount, but they've been moving and now are beginning to move on a retail basis. So, I think slowly and only after a long cycle we are seeing this position realistic prices of some of the overbuild properties, particularly high rises and second home type properties that were accumulated over the last five years. So that market is still in a workout phase, but the workout appears to be moving more significantly than in past years.

All right, thank you. And one other follow-up question is, there still is one business bank in Puerto Rico that has continued to struggle and have not seem to have been able to put its problems behind it. Do you see that you've been picking up much share from that bank? And is there much opportunity there going forward? José Rafael Fernández: I don't like particularly to comment on competitors, but I can tell you in general Oriental's position is very good right now to attract clients from competitors. And we have attracted more clients from some competitors than others and we'll continue to focus on that. But I really would not like to comment on our competitors.

All right. And finally if there is additional consolidation on the island from one of the foreign banks that has a subsidiary in the island or if there were another failure, is Oriental interested in participating in that consolidation? José Rafael Fernández: We are always looking at ways to maximize the decision of our capital. But having said that, we have a year ahead of us that is integration focus and maximizing the value of these great acquisitions. So, I'm not going to say that we're not going to look and evaluate if anything appears, but frankly I don't see it in 2013. At least from Oriental's perspective, we will be dedicated full heart to the integration efforts as well as maximization of the value of these acquisitions.

Okay, very good. Thank you so much for the time. José Rafael Fernández: You're welcome.

At this time, we have no further questions. I would now like to turn the call back over to management for any closing remarks. José Rafael Fernández: Well, thank you for being here and being in the call. I appreciate your time and I really look forward to the first quarter of 2013 that we will show full results of the combined organization and be able to share that information with you. We're very excited for 2013 and look forward to continue communication with our analysts and investors in 2013. Thank you very much and have a great day.

Thank you. This concludes today's conference call. You may now disconnect.