R&G; Financial Corporation
Ticker: RGFC 280 Jesus T. Pinero Avenue, Hato Rey
Exchange: NASDAQ-National Market San Juan, Foreign 7877582424
Industry: Financial

Type of Shares:Class B Common Shares Filing Date:6/18/96
U.S. Shares:2,100,000 Offer Date:8/22/96
Non-U.S. Shares:0 Filing Range:$13.00 - $15.00
Primary Shares:2,033,333 Offer Price:$14.50
Secondary Shares:66,667 Gross Spread:$1.01
Offering Amount: $29,400,000 Selling:$0.60
Expenses:$600,000 Reallowance:$0.10
Shares Out After:7,418,773

ManagerTierPhone
Friedman, Billings, Ramsey & Co., Inc.Lead Manager (703) 312-9500

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$43.77$12.54$8.83Assets:$868.29
Net Income:$10.45$2.93$1.60Liabilities:$800.58
EPS:Equity:$67.71

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
R&G; Financial, which had $868.3 million in assets at March 31,1996, is the newly established holding company for R&G; Mortgage Corporation, a Puerto Rico mortgage banking company, and R-G Premier Bank of Puerto Rico, a Puerto Rico commercial bank . The Company provides a wide range of financial services to residents of all of Puerto Rico's major cities through branch offices and mortgage banking facilities at 17 locations. Puerto Rico, the fourth largest of the Caribbean Islands, is a commonwealth of the United States and is approximately 100 miles long and 35 miles wide. The population of Puerto Rico as of June 30, 1995 was estimated at approximately 3.7 million. The operations of both R&G; Mortgage and the Bank have expanded substantially during the 1990's, due in large part to R&G; Mortgages's emergence as the second largest originator of loans secured by single-family residential properties in Puerto Rico.

Use of Proceeds
Proceeds from the proposed offering will be used to enhance the capital base of the bank. The additional capital will support further expansion of the bank, including the acquisition of branch offices or financial institutions in Puerto Rico, when or if such opportunities arise in the future.

Last updated: 10/28/96

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