(BPOP) 2023 Q1 法說會逐字稿

Good morning, ladies and gentlemen. Thank you for attending today's Popular Inc. Q1 2023 Earnings Call. My name is Tia, and I will be your moderator for today's call. (Operator Instructions) I would now like to pass the conference over to your host, Paul Cardillo with Popular Inc. proceed.

早上好，女士們，先生們。感謝您參加今天的 Popular Inc. 2023 年第一季度財報電話會議。我叫 Tia，我將擔任今天電話會議的主持人。 （操作員說明）我現在想將會議轉交給您的主持人 Paul Cardillo 和 Popular Inc. 繼續。

Good morning, and thank you for joining us. With us on the call today is our COO, Javier Ferrer, our CFO, Carlos Vazquez; and our CRO, Lidio Soriano. They will review our results for the first quarter and then answer your questions. Other members of our management team will also be available during the Q&A session. Our CEO, Ignacio Alvarez, is unavailable today due to a medical matter. We expect him back at the office early next week.

早上好，感謝您加入我們。今天與我們通話的是我們的首席運營官 Javier Ferrer，我們的首席財務官 Carlos Vazquez；以及我們的首席風險官 Lidio Soriano。他們將審查我們第一季度的業績，然後回答您的問題。我們管理團隊的其他成員也將在問答環節出席。我們的首席執行官伊格納西奧·阿爾瓦雷斯 (Ignacio Alvarez) 今天因醫療問題無法出席。我們期待他下周初回到辦公室。

Before we begin, I would like to remind you that on today's call, we may make forward-looking statements that are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements are set forth within today's earnings press release and are detailed in our SEC filings. You may find today's press release and our SEC filings on our web page at popular.com. I will now turn the call over to our COO, Javier Ferrer.

在我們開始之前，我想提醒您，在今天的電話會議上，我們可能會根據管理層當前的預期做出前瞻性陳述，並受到風險和不確定性的影響。今天的收益新聞稿中列出了可能導致實際結果與這些前瞻性陳述存在重大差異的因素，並在我們向美國證券交易委員會提交的文件中進行了詳細說明。您可以在我們的網頁 popular.com 上找到今天的新聞稿和我們向美國證券交易委員會提交的文件。我現在將把電話轉給我們的首席運營官 Javier Ferrer。

Thank you, Paul. Good morning, and thank you for joining the call. We began the year with a strong quarter, achieving net income of $159 million. Our quarterly net income was $30 million lower than the adjusted fourth quarter net income of $189 million. First quarter results were impacted by lower net interest income, offset in part by lower expenses, higher noninterest income and a slightly lower provision for credit losses.

謝謝你，保羅。早上好，感謝您加入電話會議。我們以強勁的季度開局，實現了 1.59 億美元的淨收入。我們的季度淨收入比調整後的第四季度淨收入 1.89 億美元低 3000 萬美元。第一季度業績受到淨利息收入下降的影響，部分被支出下降、非利息收入上升和信貸損失準備金略低所抵消。

Loans increased during the quarter by $261 million. Banco Popular generated loan growth across all segments while Popular Bank saw commercial loan growth offset by runoff in the construction and consumer portfolios. Our net interest margin decreased by 6 basis points to 3.23% in the quarter. higher deposit costs, particularly in our Puerto Rico public deposit portfolio and a popular bank impacted our margin. This was partially offset by an improvement in asset mix due to loan growth and a reduction of the investment portfolio. Credit quality trends remained favorable during the period. NPLs decreased and net charge-offs remain well below pre-pandemic levels.

本季度貸款增加了 2.61 億美元。 Banco Popular 在所有部門都實現了貸款增長，而 Popular Bank 的商業貸款增長被建築和消費者投資組合的流失所抵消。我們的淨息差在本季度下降了 6 個基點至 3.23%。更高的存款成本，特別是在我們的波多黎各公共存款組合和一家受歡迎的銀行中，影響了我們的利潤率。這部分被貸款增長和投資組合減少導致的資產組合改善所抵消。信貸質量趨勢在此期間保持良好。不良貸款減少，淨註銷仍遠低於大流行前水平。

During the quarter, Popular issued $400 million in 5-year senior notes with a 7.25% coupon. We intend to use a portion of the net proceeds of the offering to redeem or repay the $300 million principal amount of our senior notes that matured in September. Please turn to Slide 4. We maintained robust liquidity anchored by our diversified deposit franchise and our high levels of cash reserves and unpledged securities. Our deposit franchise is made up of approximately 42% in retail deposits with an average balance of less than $10,000 per account. 25% of the balances are in public sector deposits, which are secured by collateral.

本季度，Popular 發行了 4 億美元的 5 年期優先票據，票面利率為 7.25%。我們打算使用此次發行的部分淨收益來贖回或償還 9 月到期的 3 億美元優先票據本金。請轉到幻燈片 4。我們通過多元化的存款業務以及高水平的現金儲備和未抵押證券保持了強勁的流動性。我們的存款專營權由大約 42% 的零售存款組成，每個賬戶的平均餘額不到 10,000 美元。 25% 的餘額是公共部門存款，這些存款由抵押品擔保。

28% are in commercial deposits and the remaining 5% in our wholesale deposits. Overall, deposits were down by $273 million in the quarter, but liquidity sources were up by $1.3 billion. Our total consolidated borrowings, including our newly issued senior notes remained flat during the quarter. Our customer base in Puerto Rico grew by approximately 12,000 during the quarter, reaching nearly 2 million unique customers.

28% 是商業存款，其餘 5% 是我們的批發存款。總體而言，本季度存款減少了 2.73 億美元，但流動性來源增加了 13 億美元。我們的綜合借款總額，包括我們新發行的優先票據，在本季度保持不變。我們在波多黎各的客戶群在本季度增加了約 12,000 人，達到近 200 萬獨立客戶。

Adoption of digital channels among our retail customers remain strong. Active users on our Mibanco platform exceeded $1.1 million or 56% of our customer base. In addition, we continue to capture more than 60% of our deposits through digital channels. This trend remains significantly higher than pre-pandemic levels and well above our Island peers. In the first quarter, consumer spending remained healthy and with combined credit and debit card sales up 9% compared to the first quarter of 2022. As on the mainland, Mortgage originations in Puerto Rico have been impacted by rising rates and also by limited inventory of available properties.

我們的零售客戶對數字渠道的採用依然強勁。我們 Mibanco 平台上的活躍用戶超過 110 萬美元，占我們客戶群的 56%。此外，我們繼續通過數字渠道獲取超過 60% 的存款。這一趨勢仍然明顯高於大流行前的水平，並且遠高於我們島上的同行。第一季度，消費者支出保持健康，與 2022 年第一季度相比，信用卡和借記卡的總銷售額增長了 9%。與大陸一樣，波多黎各的抵押貸款發放受到利率上升和庫存有限的影響可用屬性。

The dollar value of mortgage originations at Banco Popular decreased by 29% compared to the first quarter of last year, driven by lower refinance activity due to the interest rate environment. The local economy performed well during the first quarter. Business activity is solid and remains in good shape as reflected in the continued positive trends in total employment and other published economic data. While new auto sales have slowed compared to the quarterly pace of the past couple of years, they remain above pre-pandemic levels, evidencing continued robust demand for cars in Puerto Rico.

與去年第一季度相比，Banco Popular 抵押貸款的美元價值下降了 29%，原因是利率環境導致再融資活動減少。一季度本地經濟表現良好。商業活動穩健，並保持良好狀態，這反映在總就業和其他已公佈經濟數據的持續積極趨勢上。儘管新車銷量與過去幾年的季度增速相比有所放緩，但仍高於大流行前的水平，證明波多黎各對汽車的需求持續強勁。

The tourism and hospitality sector continues to be a source of strength for the local economy. Year-to-date, San Juan Airport has seen record levels of passenger traffic. Hotel demand also has been strong as can be seen in record high average daily rates and revenue per available room. There are still approximately $50 billion of hurricane recovery funds that have yet to be disbursed. We expect that these funds will support economic activity in many sectors in the coming years.

旅遊業和酒店業繼續成為當地經濟的動力源泉。今年迄今為止，聖胡安機場的客運量創歷史新高。酒店需求也一直強勁，從創紀錄的高平均每日房價和每間可用客房的收入中可以看出。仍有大約 500 億美元的颶風恢復資金尚未支付。我們預計這些資金將在未來幾年支持許多部門的經濟活動。

We are uniquely positioned to serve the needs of our customers and to benefit from such activity. In short, we are pleased with our results for the quarter, particularly our solid loan growth in Puerto Rico and the continued strength of our deposit base, liquidity and credit quality. We are mindful of and have been monitoring the economic and market environment as well as the recent developments in the U.S. banking sector.

我們具有獨特的優勢，可以滿足客戶的需求並從此類活動中受益。簡而言之，我們對本季度的業績感到滿意，尤其是我們在波多黎各的穩健貸款增長以及我們存款基礎、流動性和信貸質量的持續強勁。我們關注並一直在關注經濟和市場環境以及美國銀行業的近期發展。

We will continue to manage our banks to maintain significant available liquidity as we grow responsibly. Despite these headwinds, we remain optimistic about the future of Puerto Rico, our primary market, and our ability to manage and serve the needs of our customers through any potential challenges that may lie ahead. I now turn the call over to Carlos for more details on our financial results.

隨著我們負責任地發展，我們將繼續管理我們的銀行以維持大量可用流動性。儘管存在這些不利因素，我們仍然對我們的主要市場波多黎各的未來以及我們通過未來可能面臨的任何潛在挑戰管理和滿足客戶需求的能力保持樂觀。我現在把電話轉給卡洛斯，了解我們財務業績的更多細節。

Thank you, Javier. Good morning. Apologies. Please turn to Slide 5. Net income was $159 million compared to $257 million in Q4. Excluding the impact of the $68 million DTA allowance reversal in Q4 Net income decreased by $30 million in Q1. Net interest income was $532 million, a decrease of $28 million on Q4 $9 million of this variance was related to the lower day count during the quarter.

謝謝你，哈維爾。早上好。道歉。請轉到幻燈片 5。淨收入為 1.59 億美元，而第四季度為 2.57 億美元。不包括 6800 萬美元 DTA 津貼逆轉對第 4 季度淨收入的影響，第 1 季度淨收入減少 3000 萬美元。淨利息收入為 5.32 億美元，比第四季度減少 2800 萬美元，其中 900 萬美元與本季度天數減少有關。

On a taxable equivalent basis, net interest income was $570 million compared to $622 million in Q4. The variance was primarily a result of higher interest expense on deposits of $54 million, resulting from increased deposit rates mainly from Puerto Rico public deposits and to a lesser extent of their banking. Noninterest income was $162 million, an increase of $3 million from Q4. This included in this result was a $7 million litigation-related insurance claim reimbursement. The provision for credit losses was $47 million compared to $48 million in the fourth quarter.

在應稅等值的基礎上，淨利息收入為 5.7 億美元，而第四季度為 6.22 億美元。出現差異的主要原因是存款利息支出增加了 5400 萬美元，這是由於主要來自波多黎各公共存款的存款利率提高，其次是銀行業務。非利息收入為 1.62 億美元，比第四季度增加 300 萬美元。此結果中包括 700 萬美元的與訴訟相關的保險索賠報銷。信貸損失準備金為 4700 萬美元，而第四季度為 4800 萬美元。

Total operating expenses were $441 million, a decrease of $21 million from the prior quarter. This reduction was primarily driven by lower professional fees by $16 million as well as lower technology and software expenses by $10 million. Historically, these costs tend to be lower during the first quarter of every year. This is more accentuated in the first quarter of this year due to our multiyear transformation initiatives. During Q1, we had $6 million in transformation-related expenses compared to $10 million last quarter.

總運營費用為 4.41 億美元，比上一季度減少 2100 萬美元。這一減少主要是由於專業費用減少了 1600 萬美元，以及技術和軟件費用減少了 1000 萬美元。從歷史上看，這些成本在每年第一季度往往較低。由於我們多年的轉型計劃，這一點在今年第一季度更為突出。在第一季度，我們有 600 萬美元的轉型相關費用，而上一季度為 1000 萬美元。

As the transformation progresses, expenses will shift from advisory and conceptual plans to development and execution of implementation plans. As a result, we expect a slower pace of expenditure initially as in Q1 and an acceleration as the year progresses. We continue to anticipate transformation-related expenses of $50 million in 2023. Other large expense variances were lower seasonal business promotion expenses by $9 million which was somewhat offset by higher personnel costs by $9 million, primarily related to the previously disclosed increase in hourly minimum wage at BPPR that took effect in January.

隨著轉型的推進，費用將從諮詢和概念計劃轉移到實施計劃的製定和執行上。因此，我們預計最初的支出速度會像第一季度一樣放緩，但隨著時間的推移會加速。我們繼續預計 2023 年與轉型相關的費用為 5000 萬美元。其他較大的費用差異包括季節性業務推廣費用減少 900 萬美元，這在一定程度上被人員成本增加 900 萬美元所抵消，這主要與先前披露的每小時最低工資的增加有關在一月份生效的 BPPR。

And lower order benefit of $7 million, mostly due to lower gain on sale of properties. Our quarterly expense trajectory has historically ramped up as the year progresses. We anticipate that 2023 will be consistent with that experience and continue to expect expenses for the year of approximately $1.87 billion. Our effective tax rate for the quarter was 23%. For the full year 2023, we expect the effective tax rate to be within a range of 21% to 26% higher than the range provided during our last webcast. In the near term, we expect to run our banks with a higher level of reserves at the Fed, which leads to less tax expense income and therefore, a higher tax rate than we had previously anticipated.

訂單收益減少 700 萬美元，主要是由於物業銷售收益減少。隨著時間的推移，我們的季度支出軌跡在歷史上一直在上升。我們預計 2023 年將與這一經歷保持一致，並繼續預計這一年的支出約為 18.7 億美元。我們本季度的有效稅率為 23%。對於 2023 年全年，我們預計有效稅率將比我們上次網絡廣播中提供的範圍高出 21% 至 26%。在短期內，我們預計我們的銀行將在美聯儲擁有更高水平的準備金，這將導致稅收支出收入減少，因此稅率將高於我們之前的預期。

Please turn to Slide 6. Net interest income was $532 million. On a taxable equivalent basis, it was $570 million, $51 million lower than in the fourth quarter. Net interest margin decreased by 6 basis points to 3.22% in Q1. On a taxable equivalent basis, NIM was 3.46%, a decrease of 18 basis points. The decrease is driven by higher interest expense on deposits due to a significant though anticipated 103 basis point increase in the cost of public deposits.

請轉到幻燈片 6。淨利息收入為 5.32 億美元。按應稅等值計算，為 5.7 億美元，比第四季度減少 5100 萬美元。第一季度淨息差下降 6 個基點至 3.22%。按應稅等值計算，淨息差為 3.46%，下降 18 個基點。減少的原因是存款利息支出增加，這是由於公共存款成本顯著但預期增加了 103 個基點。

This was partially offset by higher loan balances and yields, plus an improved mix of earning assets. As we ended the first quarter, public deposits were roughly $15.5 billion or $15.8 billion excluding $700 million in deposits held and managed by our trust division. This compares to $15.8 billion and $15.2 billion, respectively, at year-end. In the past, we had excluded the balances in trust from our discussion about Puerto Rico public deposits given that these are managed by our fiduciary services division, where we act as custodian or (inaudible) However, we have decided to aggregate these amounts to reflect the overall relationship with government entities and provide more visibility to collateralize deposits.

這部分被較高的貸款餘額和收益率以及收益資產組合的改善所抵消。在第一季度結束時，公共存款約為 155 億美元或 158 億美元，不包括由我們的信託部門持有和管理的 7 億美元存款。相比之下，年底時分別為 158 億美元和 152 億美元。過去，我們在討論波多黎各公共存款時將信託餘額排除在外，因為這些存款由我們的信託服務部門管理，我們在該部門擔任託管人或（聽不清）但是，我們決定匯總這些金額以反映與政府實體的整體關係，並提供更多的可見性來抵押存款。

These branch deposits have always been reported in our total deposit balance. During 2023, now inclusive of trust deposits, we expect public deposits to be in a range of $14 billion to $16 billion, essentially unchanged from our previous expectation of $13 billion to $15 billion that excluded trust deposits. It's important to reiterate that by law in Puerto Rico, public deposits must be 100% collateralized. Any decrease in the level of these deposits will have no significant impact on our liquidity.

這些分行存款一直在我們的總存款餘額中報告。在 2023 年期間，現在包括信託存款在內，我們預計公共存款將在 140 億至 160 億美元之間，與我們之前不包括信託存款的 130 億至 150 億美元的預期基本持平。重要的是要重申，根據波多黎各的法律，公共存款必須 100% 抵押。這些存款水平的任何下降都不會對我們的流動性產生重大影響。

Excluding Puerto Rico public deposits, consolidated deposit balances increased by $180 million in the quarter, primarily time and saving deposits at popular bank gathered through a direct channel. This compares to a decrease of $1.4 billion in nonpublic deposits during the fourth quarter. In Q1, we continue to see some commercial and high net worth clients pursuing better yields on excess liquidity, moving this bond outside the banking sector.

不包括波多黎各公共存款，本季度綜合存款餘額增加了 1.8 億美元，主要是通過直接渠道收集的大眾銀行的定期存款和儲蓄存款。相比之下，第四季度非公共存款減少了 14 億美元。在第一季度，我們繼續看到一些商業和高淨值客戶追求更高的流動性過剩收益率，將這種債券轉移到銀行業之外。

However, we have been able to capture a good portion of this movement in our broker-dealer, which saw an increase in assets under management of approximately $450 million. Since the end of Q1, overall deposit have increased by approximately $700 million. Our interest rate sensitivity continues to be relatively neutral. As the year progresses, we expect the margin to resume an upward trajectory. The timing will depend on the interaction of our loan growth and mix, deposit balances and the pace of repricing of public and incrementally nonpublic deposits.

然而，我們已經能夠在我們的經紀交易商中捕捉到這一變化的很大一部分，其管理的資產增加了約 4.5 億美元。自第一季度末以來，存款總額增加了約 7 億美元。我們的利率敏感性繼續保持相對中性。隨著時間的推移，我們預計利潤率將恢復上升趨勢。時間將取決於我們的貸款增長和組合、存款餘額以及公共和增量非公共存款重新定價速度的相互作用。

Our ending loan balances increased by $161 million compared to Q4, driven by growth on all loan segments and commercial loans at PV. We are encouraged by the demand for credit at BPPR and PV. We will continue to take advantage of opportunities to extend credit, thereby improving the use and yield of our existing liquidity. Please turn to Slide 7. Deposit betas the current tightening cycle are now at or above the prior cycle. We have seen a total cumulative deposit beta of 24% to date.

與第四季度相比，我們的期末貸款餘額增加了 1.61 億美元，這主要是受 PV 所有貸款部門和商業貸款增長的推動。我們對 BPPR 和 PV 的信貸需求感到鼓舞。我們將繼續利用機會擴大信貸，從而改善我們現有流動資金的使用和收益。請轉到幻燈片 7。當前緊縮週期的存款貝塔值現在等於或高於前一個週期。迄今為止，我們已經看到總累計存款貝塔率為 24%。

However, in Q1, we saw an acceleration of deposit pricing. In BBPR, total deposit costs increased by 35 basis points, led by public sector deposits. In PV, total deposit costs increased by 67 points led by retail deposits as we increase the use of our online deposit channel. In Puerto Rico, our combined retail and commercial deposit beta cycle to date have been less than 10%. As we've discussed over the past couple of quarters, given the rapid shift to higher short-term interest rates, we expected a significant increase in the cost of public deposits.

然而，在第一季度，我們看到存款定價加速。在 BBPR 中，總存款成本增加了 35 個基點，其中公共部門存款居首。在 PV 方面，隨著我們增加在線存款渠道的使用，總存款成本增加了 67 個百分點，這是由零售存款引起的。在波多黎各，迄今為止，我們的零售和商業存款組合貝塔週期不到 10%。正如我們在過去幾個季度所討論的那樣，鑑於短期利率迅速轉變，我們預計公共存款成本將大幅增加。

In the first quarter, the cost increased by 103 basis points versus our January estimate of roughly 120 basis points. The difference rest in lower average balances and the mechanics of the interest expense calculation. We expect the cost of poly deposits to increase by approximately 60 basis points in Q2. The deposit pricing agreement with the Puerto Rico public sector is market linked with a lag. This source of funding resulted in an attractive spread on our market rates. Please turn to Slide 8. We have added the following 2 slides in our deck because of the increased focus on liquidity, borrowings and deposit composition. Liquidity sources for the corporation increased by $1.3 billion in Q1.

第一季度，成本增加了 103 個基點，而我們 1 月份的估計約為 120 個基點。差異在於較低的平均餘額和利息支出計算的機制。我們預計保利存款的成本在第二季度將增加約 60 個基點。與波多黎各公共部門的存款定價協議與滯後市場掛鉤。這種資金來源導致我們的市場利率有吸引力的價差。請轉到幻燈片 8。由於更加關注流動性、借款和存款構成，我們在幻燈片中添加了以下 2 張幻燈片。公司的流動資金來源在第一季度增加了 13 億美元。

77% of this liquidity resides in excess funds at the Fed and unpledged securities. Borrowings for the quarter were flat at $1.4 billion. We reduced our Feral Home Loan Bank borrowings by $366 million in Q1. However, the issuance of our senior notes due in 2028, roughly compensated for that reduction. There were no incremental borrowings during the quarter from the Federal Home Loan Bank, the Fed discount window or the bank term funding program. On March 13, 2023, Popular issued $400 million of 7.25% senior notes during 2028.

這種流動性的 77% 存在於美聯儲的過剩資金和未抵押證券中。本季度的借款持平於 14 億美元。我們在第一季度將 Feral Home Loan Bank 的借款減少了 3.66 億美元。然而，我們於 2028 年到期的優先票據的發行大致彌補了這一減少。本季度沒有來自聯邦住房貸款銀行、美聯儲貼現窗口或銀行定期融資計劃的增量借款。 2023 年 3 月 13 日，Popular 在 2028 年期間發行了 4 億美元的 7.25% 優先票據。

We intend to use a portion of the net proceeds of the offering to redeem or repay $300 million principal amount of our outstanding senior notes that mature in September 2023. Please turn to Slide 9. The summation of transactional accounts and time deposits with balances over $250,000 ended Q1 at $13.8 billion or 23% of total deposit balances. The liquidity sources described in Slide 8, the prior slide, totaled $18.3 billion, covering 135% of deposits over $250,000. The balances of our noninterest-bearing deposits have been steady. Most of our recent balance changes have been in interest-bearing accounts.

我們打算使用發行所得款項淨額的一部分來贖回或償還 2023 年 9 月到期的 3 億美元未償還優先票據本金。請轉到幻燈片 9。交易賬戶和余額超過 250,000 美元的定期存款的總和第一季度末為 138 億美元，佔存款餘額總額的 23%。幻燈片 8（上一張幻燈片）中描述的流動性來源總計 183 億美元，佔 250,000 美元以上存款的 135%。無息存款餘額保持穩定。我們最近的大部分餘額變化都發生在計息賬戶中。

Please turn to Slide 10. Our investment portfolio is almost entirely comprised of treasury and agency mortgage-backed securities, which carry minimal credit risk, including our cash position, this portfolio has an average duration of approximately 2.6 years. As discussed previously, given the rapid increase in rates in 2022 as well as the uncertain outlook for interest rates, in October of last year, we transferred to held to maturity $6.5 billion of U.S. treasuries, thereby reducing the future impact of rates on tangible book value. At the time, this action reduced AOCI exposure to interest rates by about 1/3. When transferred to HCM, these positions had a pretax unrealized loss of $873 million which will be amortized back into capital throughout the remaining life of the transfer positions.

請轉到幻燈片 10。我們的投資組合幾乎完全由國庫券和機構抵押貸款支持證券組成，信用風險最小，包括我們的現金頭寸，該投資組合的平均期限約為 2.6 年。如前所述，鑑於 2022 年利率的快速上升以及利率前景的不確定性，我們在去年 10 月將 65 億美元的美國國債轉為持有至到期，從而降低利率對有形賬面的未來影響價值。當時，此舉將 AOCI 的利率風險降低了約 1/3。當轉移到 HCM 時，這些頭寸的稅前未實現虧損為 8.73 億美元，將在轉移頭寸的剩餘期限內攤銷回資本。

As of the end of the first quarter, the balance of this unrealized loss stood at $789 million. A reduction of $43 million from Q4 and $84 million from the transfer date. We expect this loss to be amortized back into capital through the remaining life of the portfolio at a rate of approximately 5% per quarter through 2026. As a result of the timing of this transfer and given the level of rates at quarter end, all of the unrealized losses related to the gin portfolio are already reflected in our tangible capital.

截至一季度末，未實現虧損餘額為7.89億美元。比第四季度減少 4300 萬美元，比轉移日期減少 8400 萬美元。我們預計，到 2026 年，這一損失將在投資組合的剩餘期限內以每季度約 5% 的比率攤銷回資本。由於此次轉移的時間安排和考慮到季度末的利率水平，所有與杜松子酒投資組合相關的未實現損失已經反映在我們的有形資本中。

Therefore, at the end of the quarter, there are no significant recognized marks related to our HTM book. Please turn to Slide 11. Our return on tangible equity was 11.5% in the quarter. Regulatory capital levels remain strong. Our common equity Tier 1 ratio in Q1 of 16.7% increased by 34 basis points from Q4. Tangible book value per share at quarter end was $50.15, an increase of $5.18 per share or almost 12% from Q4. This improvement is driven mostly by a favorable variance of $192 million in the net unrealized losses on securities (inaudible) for sale and quarterly net income of $159 million partially offset by dividends declared in the quarter.

因此，在本季度末，沒有與我們的 HTM 書籍相關的重要認可標誌。請轉到幻燈片 11。本季度我們的有形資產回報率為 11.5%。監管資本水平依然強勁。我們在第一季度的普通股一級比率為 16.7%，比第四季度增加了 34 個基點。季度末每股有形賬面價值為 50.15 美元，比第四季度增加 5.18 美元或近 12%。這一改善主要是由於待售證券（聽不清）淨未實現虧損 1.92 億美元的有利差異和季度淨收入 1.59 億美元被本季度宣布的股息部分抵消。

Finally, touching on capital, we will revisit future capital actions in the second half of 2023. Our long-term outlook on capital return has not changed anchored in our strong regulatory capital ratios. However, in the near term, we need to get more certainty on the outlook for rates and the economy and also more clarity on the potential regulatory response to recent events in the banking sector. Over time, we expect our regulatory capital ratios to gravitate stores the levels of our mainland peers plus the buffer. With that, I turn the call over to Lidio.

最後，談到資本，我們將在 2023 年下半年重新審視未來的資本行動。我們對資本回報的長期展望沒有改變，這取決於我們強大的監管資本比率。然而，在短期內，我們需要更加確定利率和經濟前景，並更加明確監管機構對銀行業近期事件的潛在反應。隨著時間的推移，我們預計我們的監管資本比率將吸引我們大陸同行的水平加上緩衝。有了這個，我把電話轉給了 Lidio。

Thank you, Carlos. And good morning. Overall, Popular continues to reflect stable credit quality trends with low levels of net charge-offs and decreasing NPLs. We remain encouraged by the performance of our loan book of pandemic. Specifically, early delinquency Net charge-offs and nonperforming loan inflows come to trend significantly below pre-pandemic levels.

謝謝你，卡洛斯。早上好。總體而言，Popular 繼續反映穩定的信貸質量趨勢，淨沖銷水平低，不良貸款減少。我們對大流行貸款簿的表現感到鼓舞。具體而言，早期拖欠淨註銷和不良貸款流入的趨勢明顯低於大流行前水平。

Turning to Slide #12. Nonperforming assets decreased by $24 million to $504 million this quarter, driven by an NPL decrease of $27 million due to lower mortgage and consumer NPLs in Puerto Rico offset in part by [auto]increase of $3 million. NPL inflows increased slightly quarter-over-quarter. At the end of the quarter, the ratio of NPLs to total loans held in portfolio decreased to 1.3% from 1.4% in the previous quarter. Turning to Slide #13. Net charge-offs amounted to $33 million were annualized 41 basis points of average loans held in portfolio compared to $31 million or 39 basis points in the prior quarter.

轉到幻燈片 #12。本季度不良資產減少 2400 萬美元至 5.04 億美元，這是由於波多黎各的抵押貸款和消費者不良貸款減少導致不良貸款減少 2700 萬美元，部分被 [auto] 增加 300 萬美元所抵消。不良貸款流入環比略有增加。本季度末，不良貸款佔組合持有貸款總額的比率從上一季度的 1.4% 下降至 1.3%。轉到幻燈片 #13。淨註銷總額為 3300 萬美元，按投資組合持有的平均貸款年化 41 個基點計算，而上一季度為 3100 萬美元或 39 個基點。

The results for the quarter were impacted by a $10.5 million charge-off on a previously reserved loan. Excluding this, the net charge-off ratio would have been 28 basis points. Please turn to Slide #14. At the end of the first quarter, the ACL decreased by $31 million to $689 million. During the quarter, we implemented a new accounting guidance, which eliminated the accounting for TDRs and the requirements to measure the effect of the concession from a loan modification. This impact resulted in a release in the ACL of approximately $46 million, driven by our mortgage (inaudible) portfolio, which is presented as an adjustment to the beginning balance of retained earnings net of tax effect.

本季度的業績受到之前預留貸款的 1050 萬美元沖銷的影響。排除這一點，淨註銷比率將為 28 個基點。請轉到幻燈片#14。第一季度末，ACL 減少 3100 萬美元至 6.89 億美元。本季度，我們實施了新的會計指南，取消了 TDR 的會計和衡量貸款修改讓步影響的要求。在我們的抵押貸款（聽不清）投資組合的推動下，這種影響導致 ACL 釋放了大約 4600 萬美元，這是對扣除稅收影響的留存收益期初餘額的調整。

Excluding this impact, the ACL increased by $14 million, driven by changes in the HPI forecast higher loan volume, portfolio mix and the migration of consumer credit scores. The provision for credit losses $47 million compared to $48 million in the prior quarter. To summarize, our loan portfolio continues to exhibit strong credit quality trends in the first quarter with low net charge-offs and decreasing nonperforming loans.

排除這一影響，ACL 增加了 1400 萬美元，這是由於 HPI 預測更高的貸款量、投資組合組合和消費者信用評分的變化。信貸損失準備金為 4700 萬美元，上一季度為 4800 萬美元。總而言之，我們的貸款組合在第一季度繼續呈現出強勁的信貸質量趨勢，淨沖銷率低，不良貸款減少。

We remain attempted to evolving environment we remain encouraged by the post pandemic performance of our loan book. We believe that improvement rates over time in the risk profile of the corporation's loan portfolio positions Popular to operate successfully on the more difficult economic conditions. Before I turn the call over to Javier, let me comment on Popular's CRE's office are exposure. The office segment is receiving a lot of attention in the current environment due to the achieve level work and higher interest rates. In the case of Popular, our office exposure is limited representing only 1.9% or [$6.9 million] of our total loan portfolio.

我們仍然試圖改變環境，我們仍然對我們貸款簿的大流行後表現感到鼓舞。我們認為，隨著時間的推移，公司貸款組合頭寸風險狀況的改善率很受歡迎，可以在更加困難的經濟條件下成功運營。在我把電話轉給 Javier 之前，讓我先評論一下 Popular 的 CRE 辦公室曝光情況。由於實現水平工作和更高的利率，寫字樓部分在當前環境中受到了很多關注。就 Popular 而言，我們的辦公室風險敞口有限，僅占我們總貸款組合的 1.9% 或 [690 萬美元]。

The exposure is mainly comprised of low to price property with average loan size of $2 million and is well diversified across (inaudible) With that, I would like to turn the call over to Javier for his concluding remarks. Thank you.

風險敞口主要由平均貸款規模為 200 萬美元的低價房產組成，並且在（聽不清）方面非常多樣化，因此，我想將電話轉給 Javier 以作總結。謝謝。

Thank you, Lidio and Carlos, for your updates. Popular started off 2023 with a strong first quarter, building on the positive momentum generated in 2022. Our diversified business model and strong deposit base, robust regulatory capital and liquidity position are a source of strength, which allow us to continue to meet our clients' needs as reflected by the growth in our customer base and loan portfolio during the quarter.

謝謝 Lidio 和 Carlos 的更新。在 2022 年產生的積極勢頭的基礎上，Popular 於 2023 年以強勁的第一季度開局。我們多元化的業務模式和強大的存款基礎、穩健的監管資本和流動性狀況是實力的源泉，使我們能夠繼續滿足客戶的需求本季度我們的客戶群和貸款組合的增長反映了需求。

We are optimistic about the opportunities that lie ahead, and we remain vigilant around potential risks stemming from continued inflation and economic and market uncertainty. Economic trends in Puerto Rico continue to be positive and a considerable amount of recovery funds yet to be disbursed are expected to support increased economic activity in future years. We made progress on our transformation initiatives during the quarter, which, over time, will drive more customer connectivity and operational efficiencies and greater potential for profitable growth and sustainable return on capital.

我們對未來的機遇持樂觀態度，並對持續通脹以及經濟和市場不確定性帶來的潛在風險保持警惕。波多黎各的經濟趨勢繼續向好，大量尚未支付的恢復資金預計將支持未來幾年增加的經濟活動。本季度我們在轉型計劃方面取得了進展，隨著時間的推移，這將推動更多的客戶連接和運營效率，以及更大的盈利增長和可持續資本回報潛力。

I want to recognize and express our gratitude to our colleagues. It is their daily effort and commitment that lead to our customers continue to using popular and our strong results. We are now ready to answer your questions.

我想表彰我們的同事並表達我們的感激之情。正是他們每天的努力和承諾導致我們的客戶繼續使用流行和我們強大的結果。我們現在準備好回答您的問題。

(Operator Instructions) The first question comes from the line of Brody Preston with UBS.

（操作員說明）第一個問題來自布羅迪普雷斯頓與瑞銀的合作。

I was hoping maybe, Carlos, could we dive back into the to the net interest income, the FTE situation. So you -- I guess I'm trying to understand, so you're going to hold more cash at the Fed with both the Puerto Rican sub and the U.S. And so that's resulting in lower levels of tax-exempt interest income. But is there -- I guess, is there some GAAP NII impact there as well? I'm just getting a few questions about it. It came across a little confusing.

我希望也許，卡洛斯，我們可以回到淨利息收入，FTE 的情況。所以你 - 我想我正在努力理解，所以你將在美聯儲與波多黎各分會和美國持有更多現金，因此這導致免稅利息收入水平較低。但是那裡——我想，那裡也有一些 GAAP NII 影響嗎？我只是得到一些關於它的問題。它有點混亂。

No. I think your discretion is correct, Brody. The cash we keep at the Fed earns taxable, it didn't put back in Puerto Rico, by the way, mostly it does not apply to the fact in the space. It earns taxable income as opposed to when we hold treasury securities that are expense to a large extent, the bank in Puerto Rico. So our mix of taxable and nontaxable income shift or is taxable. So that results in a higher tax rate.

不，我認為你的判斷是正確的，布羅迪。我們保留在美聯儲的現金收入應納稅，它沒有放回波多黎各，順便說一句，大多數情況下它不適用於該領域的事實。它賺取應稅收入，而不是當我們持有在很大程度上是費用的國庫券時，波多黎各的銀行。因此，我們的應稅收入和非應稅收入的組合發生了變化，或者是應稅收入。所以這導致更高的稅率。

And will that get -- I guess, will that strategy of holding higher levels of cash on the Puerto Rican sub, will that get reversed once we get clarity on liquidity in the economy? Or is that like kind of like holding higher levels of cash through 2024, the expectations?

這會——我猜，在波多黎各分公司持有更高水平現金的策略，一旦我們弄清楚經濟流動性，這種策略會被逆轉嗎？或者這是否有點像在 2024 年之前持有更高水平的現金，預期？

Well, at least for the moment, it's our choice, and we revisit that choice every week in our ALCO committee we'll see whether it continues to be our choice once the regulators express themselves.

嗯，至少目前，這是我們的選擇，我們每週都會在我們的 ALCO 委員會中重新審視這個選擇，一旦監管機構表達意見，我們將看看它是否繼續是我們的選擇。

Got it. Okay. So it seems like it's more conservatism at this point?

知道了。好的。所以在這一點上似乎更保守？

You asked a question about impacting GAAP NII. Given that the yield on cash overnight of the Fed versus short-term rates is not very different, we wouldn't expect a significant difference in GAAP NII from that shift. Certainly, our FTE NII will be affected because of that strategy.

你問了一個關於影響 GAAP NII 的問題。鑑於美聯儲隔夜現金收益率與短期利率差別不大，我們預計 GAAP NII 不會因這種轉變而出現顯著差異。當然，我們的 FTE NII 會因為該策略而受到影響。

Okay. And I guess, what is -- I guess, from this strategy, how much on a quarterly basis is the FTE impacted?

好的。我想，從這個策略來看，FTE 每季度受到多少影響？

That will be driven by everything else on our -- the positive costs that are disallowed, et cetera, that's

這將由我們的其他一切驅動——不允許的正成本，等等，那是

It's a bit more complicated calculation on that one. Of course, it also depends on (inaudible) this rate at present level, and that, again, is pretty value constantly.

那個計算有點複雜。當然，這也取決於（聽不清）當前水平的這個比率，而且，這同樣非常有價值。

Okay. But it's fair to say that like as deposit costs move higher, if you kept the same level of cash at the Fed that there would be an incremental drag on the FTE NII

好的。但可以公平地說，就像存款成本上升一樣，如果你在美聯儲保持相同水平的現金，將會對 FTE NII 產生增量拖累

That will be fair, yes.

這將是公平的，是的。

And on the fee income? Okay. Okay. On the fee income, I just wanted to get a sense for where you thought that would shake out going forward. And I'll stop there, and I'll hop back in the queue for my other questions.

收費收入呢？好的。好的。關於費用收入，我只是想了解一下您認為未來會發生什麼變化。我會就此打住，然後我會跳回到隊列中回答我的其他問題。

No, the income -- our fee income it's resoundly steady over a year, (inaudible) by 4, but I don't it's hardly study on a quarter-by-quarter basis. So it tends to fluctuate a little bit up and down. We're happy to have started slightly ahead of our guidance $150 million per quarter. But for the moment, we still think that guidance is applicable, and we'll revise it again depending on the results of the second quarter to see if it is worth to change.

不，收入——我們的費用收入在一年多的時間裡非常穩定，（聽不清）4，但我不認為它很難按季度研究。所以它往往會上下波動一點。我們很高興開始時略高於我們每季度 1.5 億美元的指導。但就目前而言，我們仍然認為該指引是適用的，我們將根據第二季度的結果再次修改，看看是否值得改變。

So for the moment, we'll keep the guidance. We're very pleased that we again, that number moves in both directions every quarter for many different reasons because of the many lines that are in there.

所以目前，我們將保持指導。我們再次感到非常高興，這個數字每個季度都會因為許多不同的原因而雙向移動，因為那裡有很多行。

Okay. And could you just remind me, Carlos, it looks like other in the other service fees, there's third quarter upward seasonality that will come through. That's still the expectation, right?

好的。卡洛斯，你能不能提醒我，在其他服務費中，它看起來像其他服務費，第三季度將出現季節性上漲。這仍然是期望，對吧？

That's sure. Yes. I mean there's -- we get contingent insurance commissions paid once or twice a year. It depends on the insurance company that we have -- we're dealing with. It tends to be in the second half of the year. I don't remember it's exactly a third quarter, Brody. But effectively in the second half of the year, of course, the other thing that has to happen is that the insurance market has to be nicely for them to pay as a continued contingent fees. That will be the second half of the year.

那是肯定的。是的。我的意思是 - 我們每年支付一次或兩次或有保險佣金。這取決於我們擁有的保險公司——我們正在與之打交道。它傾向於在今年下半年。我不記得是第三節了，布羅迪。但實際上，在下半年，當然，另一件必鬚髮生的事情是，保險市場必須很好地讓他們支付持續的或有費用。那將是今年下半年。

Thank you. The next question comes from the line of Timur Braziler with Wells Fargo.

謝謝。下一個問題來自 Timur Braziler 與 Wells Fargo 的合作。

I appreciate the comments on the expected range of public funds kind of $14 billion to $16 billion exiting the year. Maybe talking to second quarter specifically, can you just give an update on the magnitude of seasonal inflows you're expecting in the quarter kind of timing of those? And then ultimately, where we could expect GAAP NIM and NII to kind of bottom out before starting the ramp higher in the back end of the year to your comments?

我很欣賞有關今年退出的公共資金預期範圍為 140 億至 160 億美元的評論。也許具體談談第二季度，你能不能更新一下你在這些季度的時間裡預期的季節性流入量？然後最終，我們可以在哪裡預期 GAAP NIM 和 NII 在今年年底開始走高之前觸底反彈？

Well, the -- in the second quarter, we have tax revenues. So as the we mentioned before, we expect government process to go up this quarter. And we've seen some of that.

嗯，在第二季度，我們有稅收。因此，正如我們之前提到的那樣，我們預計本季度政府流程會增加。我們已經看到了其中的一些。

We already mentioned that deposits are up $700 million so far this quarter. So what it's harder for me to tell you is exactly if they're going to end higher than because that depends on what the government chooses to do with their money, which is not our decision. Historically, they have tended to be higher in the second quarter and then gravitate down in the second half of the year. What was the question on NIM again?

我們已經提到本季度到目前為止存款增加了 7 億美元。所以我更難告訴你的是，他們是否會以更高的價格結束，因為這取決於政府選擇用他們的錢做什麼，這不是我們的決定。從歷史上看，它們往往在第二季度走高，然後在下半年回落。 NIM又是什麼問題？

Just if you can provide any kind of magnitude on where NIM or NII could bottom in 2Q prior to resuming the ramp higher in the back end of the year?

在今年年底恢復上漲之前，您能否提供任何類型的 NIM 或 NII 可能在第二季度觸底的幅度？

No. We usually don't guidance on that type of detail. As I mentioned in my prepared remarks, we still expect NIM to take an upward trend again this year. The difficult part of that is that it depends on how the things I mentioned interact that will be able to find the timing on when it is going to shift. So it's going to be a pace of increase in rates, loan growth and loan mix and also deposit balance some mix and how those 3 things interact is what results in the ultimate NIM.

不，我們通常不會對此類細節提供指導。正如我在準備好的發言中提到的，我們仍然預計今年 NIM 將再次呈上升趨勢。其中困難的部分在於，它取決於我提到的事物如何相互作用，才能找到轉變的時機。因此，這將是利率、貸款增長和貸款組合以及存款餘額的一些組合的增長速度，而這三件事如何相互作用是最終 NIM 的結果。

So we still think it's going to revert to an expansion mode this year. But for the timing, we have not spoken to the timing.

所以我們仍然認為它今年會恢復擴張模式。但是對於時間，我們還沒有談過時間。

Okay. And then maybe one for Lidio. Excluding the impact of 2022-02 allowance levels continue to build despite the broader trends on the island improving. Can you maybe talk about some of the levers that were pulled within the portfolio changes that called for incremental allowance and what do you need to see prior to releasing some of the incremental allowance and getting closer to a level, maybe not where mainland peers are, but at least starting to trend in that direction?

好的。然後可能是 Lidio。排除 2022-02 年津貼水平的影響，儘管島上的整體趨勢有所改善，但津貼水平仍在繼續增加。您能否談談在要求增量配額的投資組合變化中被拉動的一些槓桿，以及在釋放一些增量配額並接近某個水平之前您需要看到什麼，也許不是大陸同行所在的水平，但至少開始朝著那個方向發展？

What I think is a lot of different levers that we are playing during this quarter. As we mentioned, we have been doing good in terms of volume. So the volume increase. Role, a small role in terms of increasing allowance. The economic scenario also play a small role in terms of the increasing allowance, then you also have volume mix we changed -- we gravitated to some of a higher allowance portfolio that also have a gradual impact in allowance.

我認為我們在本季度使用了很多不同的槓桿。正如我們提到的，我們在數量方面一直做得很好。所以體積增大。角色，在增加津貼方面的小角色。經濟情景在增加津貼方面也發揮了很小的作用，然後你也有我們改變的數量組合——我們被吸引到一些更高的津貼組合，這些組合也對津貼產生了逐漸的影響。

We've also seen some gravitation with some consumer score that also had a small impact in allowance rate it's a combination of a lot of small things. So it's the interplay of all of that and the continued low performance net charge-off that will dictate allowance going forward.

我們還看到了一些消費者評分的引力，這對津貼率也有很小的影響，這是很多小事情的結合。因此，所有這些的相互作用以及持續的低績效淨沖銷將決定未來的津貼。

And just -- Great. And just last for me, maybe back to Carlos. Can you provide an update on merchant acquiring and the revenue share component, how that's trending and maybe an outlook for both '23 and '24 there?

只是 - 太好了。最後對我來說，也許回到卡洛斯。您能否提供有關商家獲取和收入分成部分的最新信息，趨勢如何以及那裡的 23 年和 24 年前景如何？

Well, we don't break out that number, Timur, but we did talk about the volume of credit and debit cards going up 9% versus same quarter last year. It will go down versus the last quarter because it's as you know. So the business keeps growing. We're getting a share of that. So if we assume the number is going up, but we don't have -- and I don't think we'll disclose the detail of that number.

好吧，Timur，我們沒有公佈這個數字，但我們確實談到信用卡和借記卡的數量與去年同期相比增長了 9%。它會比上個季度下降，因為正如你所知。因此，業務不斷增長。我們正在分享它。因此，如果我們假設這個數字在上升，但我們沒有——而且我認為我們不會透露該數字的細節。

I'll step back.

我會退後一步。

The next question comes from the line of Alex Twerdahl with Piper Sandler.

下一個問題來自 Alex Twerdahl 與 Piper Sandler 的對話。

First off, I was wondering if you can give us an update on expectations for loan balance outlook over the next couple of quarters.

首先，我想知道您是否可以向我們提供有關未來幾個季度貸款餘額前景預期的最新信息。

No. I mean -- I'm sorry. Now as you know, we don't give a specific combine guidance. We did say that we expect loan growth this year, and we are seeing that, but we also expect it to be at a lower pace than we saw last year, and we're seeing that as well. So the first quarter was a good quarter. It was a bit quieter than the first quarter of last year, obviously. Hopefully, as economy locally in Puerto Rico, particularly continues to grow and more projects come online, we'll have more opportunities to grow well.

不，我的意思是——我很抱歉。如您所知，我們不提供具體的聯合收割機指導。我們確實說過我們預計今年的貸款增長，我們正在看到這一點，但我們也預計它的速度將低於去年，我們也看到了這一點。所以第一季度是一個很好的季度。顯然，這比去年第一季度要安靜一些。希望隨著波多黎各當地經濟的持續增長和更多項目的上線，我們將有更多機會實現良好發展。

So I'm hopeful it makes us better as the year goes along. I do not think even when it gets better, that it will come to match last year's growth.

所以我希望隨著時間的推移，它會讓我們變得更好。我認為即使情況好轉，也不會達到去年的增長水平。

Okay. And do you think growth comes from basically all categories as you saw in the first quarter?

好的。您是否認為增長基本上來自第一季度所見的所有類別？

So far, that's what we've seen in Puerto Rico, and that's actually been true since the middle of last year, Alex. So it probably will continue to be in most categories. But dollar terms, obviously, the category that carries the day is commercial. So in dollars, it's going to be mostly commercial, but we probably will see most categories continue to grow. Autos is growing a bit less -- a bit lower than last year, and we'll see how the year evolves.

到目前為止，這就是我們在波多黎各看到的情況，而且自去年年中以來確實如此，亞歷克斯。所以它可能會繼續出現在大多數類別中。但顯然，以美元計算，最流行的類別是商業類別。所以以美元計算，它將主要是商業性的，但我們可能會看到大多數類別繼續增長。汽車業的增長有所放緩——略低於去年，我們將拭目以待今年的發展情況。

So there is the effect of higher rates than how that affects the appetite of people for loans, we'll have to see how that plays out during the year as well.

因此，利率升高的影響大於它如何影響人們對貸款的興趣，我們也必須看看它在這一年中的表現如何。

Okay. And to the last point on rates and appetite, can you give us a sense for where new loan yields are relative to the existing portfolio? For consumer -- I mean for commercial primarily?

好的。關於利率和偏好的最後一點，您能否告訴我們新貸款收益率相對於現有投資組合的位置？對於消費者——我的意思是主要是為了商業？

I mean the best you can do -- we can do on that, Alex, is on our levels on yields in the press release, you have loan yields by category. And you can see the variation from last quarter to this quarter, we don't provide sort of any more detail on deals in that.

我的意思是你能做的最好的——亞歷克斯，我們能做的就是在新聞稿中我們的收益率水平，你有按類別分類的貸款收益率。你可以看到從上個季度到本季度的變化，我們沒有提供更多關於交易的細節。

Okay. Can you -- in the slide deck on the deposit slide, can you just help us understand exactly what's happening in the commercial deposits as well as the government deposits towards the end of the quarter, it looks like those rates ticked down a little bit.

好的。你能不能——在存款幻燈片的幻燈片中，你能不能幫助我們準確了解本季度末商業存款和政府存款的情況，看起來這些利率略有下降。

Yes. I'll explain commercial and one of my colleagues here will be any public sector. In the commercial, it's actually quite simple. We had a large relationship with a deposit aggregator that exited. We exited in early February, and that was a very high cost. So the cost actually did that contribute to the (inaudible) down in February and March. So that was an actual sort of transaction decision that we did that affected that one on the public deposits.

是的。我將解釋商業問題，我在這裡的一位同事將是任何公共部門。在廣告中，它實際上很簡單。我們與一家退出的存款聚合商有很大的關係。我們在 2 月初退出，這是一個非常高的成本。因此，成本實際上確實導致了 2 月和 3 月的（聽不清）下降。所以這是我們所做的一種實際交易決定，它影響了公共存款。

Alex, it's Paul. So on the public deposits for all the charts, we actually provide the data points as part of the analysis on a monthly basis. And so given a variety of inputs, including day count and average balances and whatnot, the calculation does move around a little bit along with the lagged effect of the repricing.

亞歷克斯，是保羅。因此，在所有圖表的公共存款中，我們實際上每月提供數據點作為分析的一部分。因此，考慮到各種輸入，包括天數和平均餘額等等，計算確實會隨著重新定價的滯後效應而移動一點點。

So if you look back prior in that chart, what you can see is it does jump around a little bit during certain time periods, even when the -- at least the comparative chart of the Fed funds is moving directionally. So that's all that this is. We do expect that those -- that repricing has not yet been completed, and we talked about sort of another 60 basis points roughly in the second quarter.

因此，如果您回顧該圖表之前的內容，您會發現它在某些時間段內確實略有跳躍，即使 - 至少聯邦基金的比較圖表正在定向移動。這就是全部。我們確實預計那些 - 重新定價尚未完成，我們在第二季度大致談到了另外 60 個基點。

Okay. That's helpful. And then with respect to the NIM commentary about resuming an upward trajectory, is that -- is there a scenario where that could happen in the second quarter?

好的。這很有幫助。然後關於 NIM 關於恢復上升軌蹟的評論，是否存在第二季度可能發生的情況？

Yes. If you move around in your model, the 3 things I mentioned pace of interest rate increases, loan growth and mix and deposit balances and mix. I'm sure there's a number of possible combinations that will give you a higher NIM in the second quarter. but it depends on how those 3 things move.

是的。如果你在你的模型中移動，我提到的三件事是利率增長的速度、貸款增長和混合以及存款餘額和混合。我敢肯定，有許多可能的組合會在第二季度為您提供更高的 NIM。但這取決於這三件事如何移動。

Thank you. The next question comes from the line of Kelly Motta with KBW.

謝謝。下一個問題來自 Kelly Motta 與 KBW 的對話。

I think I'll carry on with that at least a portion of that NIM question. Carlos, one of the things that you had mentioned was your carrying higher balances at the Fed just out of conservatism, do you mind sharing what you guys view as an appropriate level of cash you have on hand right now? And what are the things we should be looking for to toggle that either up or down?

我想我會繼續處理 NIM 問題的至少一部分。卡洛斯，你提到的其中一件事是你出於保守主義而在美聯儲持有更高的餘額，你介意分享你們認為你手頭現金的適當水平嗎？我們應該尋找什麼來向上或向下切換？

Do you need clarity from the regulators in order to take that down just interested on what we should be looking for as we think about the liquidity number ahead?

您是否需要監管機構的明確說明，以便在我們考慮未來的流動性數字時只對我們應該尋找的東西感興趣？

Yes. I mean, to a large extent, what you see in our Fed account in our cash position right now is a lot of the maturities that happened in our investment portfolio in the first quarter minus the loan growth that we had for the quarter. That's the outcome of those 2 things is the number in there. Now we'll keep watching this closely and evaluating the environment an ongoing basis, Kerry. So I mean -- we don't -- we're not running it on the basis of a target amount of cash necessarily.

是的。我的意思是，在很大程度上，你現在在我們的美聯儲賬戶中看到的現金頭寸是第一季度我們投資組合中發生的很多到期減去我們本季度的貸款增長。那就是那兩件事的結果就是那裡的數字。 Kerry，現在我們將繼續密切關注並持續評估環境。所以我的意思是——我們沒有——我們不一定在目標現金數額的基礎上運行它。

We are running the business and the business results in an amount of cash. What we did decide in the first quarter was to allow the portfolio to mature without reinvesting or extending it again. Again, that is a discussion that we have in our weekly outcome meetings, and we evaluate all the parts and come to conclusions on a dynamic basis. So there isn't a target, the level where we are at this so seems to make sense to us. It's not a tough decision because at this point in time, the yield and cash is not bad.

我們經營業務，業務產生大量現金。我們在第一季度所做的決定是讓投資組合在不進行再投資或再次擴展的情況下成熟。同樣，這是我們在每周成果會議上進行的討論，我們評估所有部分並在動態基礎上得出結論。所以沒有目標，我們現在所處的水平對我們來說似乎很有意義。這不是一個艱難的決定，因為在這個時間點，收益率和現金還不錯。

So it's not a horrible decision to have cash at the Fed. So we'll keep looking at it that position double unlikely. Will that position on behalf of what is unlikely, but it will probably gravitate around where it is. And if we make a decision to reinvest or move some of the cash to the investment portfolio. It will not change our characteristics of our cash position because some of that will pre-bills, but it will change the nature of our tax position.

因此，在美聯儲持有現金並不是一個可怕的決定。所以我們繼續關注它，這個位置不太可能翻倍。那個位置代表什麼不太可能，但它可能會被吸引到它所在的地方。如果我們決定再投資或將部分現金轉移到投資組合中。它不會改變我們現金狀況的特徵，因為其中一些會預付賬單，但它會改變我們稅收狀況的性質。

Understood. I appreciate the color. Thinking about the buyback, in order to get more comfort with the buyback, do you think the board needs the regulators to come out with additional guidelines on that front in -- with what's going on in March. Just any sort of color as to what could get you guys more interested in buying back stock here?

明白了。我很欣賞這種顏色。考慮回購，為了讓回購更加舒適，你認為董事會需要監管機構在這方面提出額外的指導方針嗎？ 3 月份發生了什麼。關於什麼能讓你們更有興趣在這裡回購股票的任何顏色？

Yes. I mean what we described in October is that we wanted more clarity on rates and the economy so that we could be more informed in making any decision capital return. And that we thought that currently may be available by the summer. Frankly, I'm not sure we have significantly more clarity now than we had been.

是的。我的意思是，我們在 10 月份所描述的是，我們希望利率和經濟更加清晰，以便我們在做出任何資本回報決策時能夠更加知情。而且我們認為目前可能會在夏季推出。坦率地說，我不確定我們現在是否比以前更清楚了。

So hopefully, we get clarity by the summer, but I'm not sure we're there yet. I think the more important thing is what you mentioned, which we have added to those 2 considerations to consideration of regulatory changes. If anybody's guess exactly what the regulators will come up with, we do not know but we will be attentive to how they are moving. We definitely don't want to be in a position where we do something, and there's a word announcement a month later, and it makes our life much more difficult because we did something that moved us in the wrong direction.

因此，希望我們在夏天之前變得清晰，但我不確定我們是否已經到了那裡。我認為更重要的是你提到的，我們已經將其添加到這兩個考慮因素中以考慮監管變化。如果有人猜測監管機構會提出什麼建議，我們不知道，但我們會關注他們的進展情況。我們絕對不想處於我們做某事的位置，一個月後有一個詞宣布，這讓我們的生活變得更加困難，因為我們做了一些讓我們朝著錯誤的方向前進的事情。

So we'll be looking at all those things. It's hard to gauge right now whether others will come out, Kelly. So we're paying attention and listening so it's 3 things now that we're waiting to get some clarity on that, too. So we'll just see how those evolve.

所以我們會研究所有這些事情。現在很難判斷其他人是否會出來，凱利。所以我們正在關注和傾聽，所以現在我們也在等待弄清楚這三件事。所以我們只是看看它們將如何演變。

Got it. And just to speak last one in on the capital front. Is the dividend we had discussions about the buyback. I usually have a dividend raise in 2Q. I think that's part of your capital -- full capital discussion, but wondering if there's any updated even if a buyback isn't in the cards necessarily. Are you still thinking about the dividend the same way in any target for a payout ratio on that?

知道了。只是在資本方面說最後一個。是我們討論回購的股息。我通常在第二季度提高股息。我認為這是你資本的一部分——全面的資本討論，但想知道是否有任何更新，即使回購不一定在卡片中。您是否仍在以相同的方式考慮派息率的任何目標中的股息？

Yes. We tend to work the 2 things together. But as you are right in pointing out, they don't have to be together. So it's something that we will continue to consider. Again, I think probably step back for a minute, the more important point to make is that our long-term view on capital hasn't changed. We still expect over time that our capital ratios will go in the direction of our mainland peers plus a spread.

是的。我們傾向於同時處理這兩件事。但正如你指出的那樣，他們不必在一起。所以這是我們將繼續考慮的事情。同樣，我想可能退後一步，更重要的一點是我們對資本的長期看法沒有改變。我們仍然預計，隨著時間的推移，我們的資本比率將朝著內地同業的方向發展，再加上利差。

But that is over time. That doesn't mean every quarter in a perfect sequence, number one. And number two, now we have the other uncertainty that we have no idea where peers will be required to be if the rules change. So we'll have to keep those state right.

但那已經過時了。這並不意味著每個季度都有一個完美的順序，第一。第二，現在我們還有另一個不確定性，即如果規則發生變化，我們不知道同行將被要求在哪裡。所以我們必須保持這些狀態正確。

Okay. I'll tip back.

好的。我會回來的。

The next question comes from the line of Brett Rabatin with Health Group.

下一個問題來自 Health Group 的 Brett Rabatin。

This is Brian calling for Brett. Just want to go quickly back. - just wanted to go quickly back to deposits. I appreciate the detail on the liquidity deposits slides you added it looks like demand deposits decreased similarly to what we saw last quarter. Do you guys expect a study mix shift over into interest-bearing accounts from DDA.

我是 Brian，正在呼叫 Brett。只想快點回去。 - 只是想快速回到存款。我很欣賞您添加的流動性存款幻燈片的詳細信息，看起來活期存款的下降與我們上個季度看到的類似。你們希望研究組合從 DDA 轉移到計息賬戶嗎？

And then on the deposit beta as well, you mentioned that most of the segments are at or above their prior cycle deposit beta and you guys on the island maintain an advantage to the Mainland, but just wanted to know if you expect those betas to increase notably above the prior cycle?

然後在存款貝塔上，你提到大多數細分市場都處於或高於他們之前的周期存款貝塔，你們島上的人保持對大陸的優勢，但只是想知道你是否期望這些貝塔增加明顯高於前一個週期？

Yes. On demand deposits, I think the message in an deposits, Brian, is that they've been very steady, actually. And we have seen, as I mentioned, some commercial clients and some high-net-worth clients seek higher yields. We have also been successful when the clients are in that position to help them achieve that without leaving the relationship or shrinking the relationship with us. We had increasing assets under management and public securities of our $450 million in the first quarter, which is exactly that.

是的。關於活期存款，我認為存款中的信息，布萊恩，實際上是非常穩定的。正如我所提到的，我們已經看到一些商業客戶和一些高淨值客戶尋求更高的收益。當客戶處於那個位置幫助他們實現這一目標而不離開關係或縮小與我們的關係時，我們也取得了成功。第一季度，我們管理的資產和公共證券增加了 4.5 億美元，確實如此。

But the fact that, that happened, and you see that demand deposits from the fourth to first quarter were flat, means that somebody else burning $450 million. So demand deposits have been quite steady, actually. Most of the volatility we've seen in volume or levels have been in our interest-bearing accounts. And as you know, some of the big chunks or big movements happening in our public sector accounts or larger posters, right? And I'm sorry, but I missed the second part of your question, Brian.

但事實上，這種情況發生了，而且你看到第四季度到第一季度的活期存款持平，這意味著其他人燃燒了 4.5 億美元。所以活期存款實際上一直很穩定。我們在數量或水平上看到的大部分波動都發生在我們的計息賬戶中。如您所知，我們的公共部門賬戶或更大的海報中發生了一些大塊或大動作，對嗎？很抱歉，布賴恩，我錯過了你問題的第二部分。

Just on the deposit betas compared to the prior cycle.

與上一個週期相比，只是存款貝塔。

Well, we've seen deposit betas accelerate as probably every bank in the country has the rates have gone up so fast and so high. So we are above the last cycle. So I don't think we have to -- the chances are that betas for all banks will probably end up higher than the last cycle in this cycle just because of the speed and magnitude of how the Fed raised rates.

好吧，我們已經看到存款貝塔加速，因為該國的每家銀行的利率可能都上升得如此之快和如此之高。所以我們在最後一個週期之上。因此，我認為我們不必——因為美聯儲加息的速度和幅度，所有銀行的貝塔值很可能最終會高於本週期的上一個週期。

So that's probably what's going to end up happening. Specifically in our case, it's hard to tell. When you look at, for example, a big chunk of our deposit business, which is retail and commercial in Puerto Rico continues to have a sub-10% beta. So overall, betas will accelerate. I think it's our view. They are already above the last cycle. There's a reasonable chance, the terminal beta will be higher than the last cycle. But there is pieces of our business that continue to show a lot of strength. Particularly the nonpublic pricing in Puerto Rico.

所以這可能就是最終會發生的事情。具體在我們的案例中，很難說。例如，當您查看我們在波多黎各的零售和商業存款業務的很大一部分時，貝塔值繼續低於 10%。所以總的來說，貝塔會加速。我認為這是我們的看法。他們已經在最後一個週期之上。有一個合理的機會，終端測試版將高於上一個週期。但我們的某些業務繼續顯示出強大的實力。特別是波多黎各的非公開定價。

All right. Great. That's it for me.

好的。偉大的。對我來說就是這樣。

The next question comes from the line of Gerard Cassidy with RBC.

下一個問題來自 Gerard Cassidy 與 RBC 的對話。

This is Thomas Leddy calling on behalf of Gerard. A couple of quarters ago, you guys mentioned that you had not seen any new entrants into the market for lending in PR, so just from mainland banks that haven't historically been as active there, but you thought you might see some increased competition for some of the big pending infrastructure projects there. Has that dynamic changed at all in light of recent events?

我是托馬斯·萊迪代表杰拉德來電。幾個季度前，你們提到你們沒有看到任何新進入 PR 貸款市場的人，所以只是來自大陸銀行，這些銀行在歷史上並不活躍，但你們認為你們可能會看到一些競爭加劇那裡有一些大型的懸而未決的基礎設施項目。鑑於最近發生的事件，這種動態是否發生了變化？

And any additional color you can provide there?

您可以在那裡提供任何其他顏色嗎？

I don't think it changed very much. It really is the size of the investment is important, obviously, because not every bank can make every size loan. But when you have foreign operators that come in to Puerto Rico to run a public private partnership, for example, they have worldwide banking relationships, and those ratios arrive to Puerto Rico with them. In almost every instance, they want a local bank with our experience and capabilities to help them.

我認為它沒有太大變化。顯然，投資規模確實很重要，因為並非每家銀行都能提供各種規模的貸款。但是，當你有外國運營商進入波多黎各經營公私合作夥伴關係時，例如，他們擁有全球銀行業務關係，並且這些比率會與他們一起到達波多黎各。幾乎在所有情況下，他們都希望有一家具有我們經驗和能力的本地銀行來幫助他們。

So we end up either leading or being an important part of any effort to finance those kind of projects. So I don't think it's a change from what we've experienced in the past. And hopefully, some of these projects will get going pretty soon. There is a number of the public private partnerships that are supposed to be closer to realization now than they were months ago. And it does happen, that would be (inaudible)

因此，我們最終要么領導要么成為資助此類項目的任何努力的重要組成部分。所以我認為這與我們過去的經歷沒有什麼不同。希望其中一些項目能很快開始。與幾個月前相比，現在有許多公私合作夥伴關係應該更接近實現。它確實發生了，那將是（聽不清）

I just want to add to I just want to add to also then in fact, we are I can say, engaged in those PPP projects. So we expect to have those come to fruition if the government moves quickly this year. So we'll play an important part in those financings as we expected prior.

我只想補充 我只想補充 事實上，我們可以說，從事那些 PPP 項目。因此，如果政府今年迅速採取行動，我們希望這些成果能夠實現。因此，我們將像我們之前預期的那樣在這些融資中發揮重要作用。

Okay. Great. And then just a quick follow-up. High level. Obviously, credit quality remains pretty strong. What trends in credit are you guys watching most closely today? And how have those changed over the past couple of quarters.

好的。偉大的。然後只是快速跟進。高水平。顯然，信貸質量仍然相當強勁。你們今天最密切關注的信貸趨勢是什麼？在過去的幾個季度中，這些情況發生了怎樣的變化。

I will say the performance and the shift in the FICO mix of our book and the performance of the small and medium enterprises in our commercial book. Those will be the 2 particular elements that we're watching closely.

我會說我們書中 FICO 組合的表現和轉變，以及我們商業書中中小企業的表現。這些將是我們密切關注的兩個特定元素。

We have a follow-up question from the line of Brody Preston with UBS.

我們有來自瑞銀集團 Brody Preston 的後續問題。

Just had a couple of quick follow-ups. I did want to touch on the consumer line of credit charge-off that you called out. Just I wanted to clarify, it was called the line of credit. I just wanted to ask if that was one line of credit or if that was multiple lines of credit?

剛剛進行了幾次快速跟進。我確實想談談你提到的消費者信貸額度沖銷。我只是想澄清一下，這叫做信用額度。我只想問這是一個信用額度還是多個信用額度？

It was 1 line of credit. It is a legacy one-off type of relationship that shouldn't recur in the future.

這是1個信用額度。這是一種遺留的一次性關係，將來不應再發生。

Got it. Okay. And then I just want to ask one on the deposit mix. You guys outperformed the industry by a wide margin on noninterest bearing. So just wanted to get a sense for what your conversations look like with customers around rates, particularly as it relates to like any level of excess funds that might be in DDAs? Or do you feel like the noninterest-bearing mix can be relatively steady from here?

知道了。好的。然後我只想問一個關於存款組合的問題。你們在免息方面的表現遠遠超過了整個行業。所以只是想了解一下您與客戶圍繞利率進行的對話，特別是因為它與 DDA 中可能存在的任何超額資金水平相關？或者你覺得無息組合從這裡可以相對穩定嗎？

Yes. I mean we had the discussions every day. I mean the best way I can answer that question, Brody, is that we've been hiring those discussions for the last 2 quarters and the results are the results. So we -- despite the fact that we're having those discussions that we have clients moving cash seeking higher yields. We still were able to successfully maintain stable demand deposit balances. That does not mean that some money did not move. As I said, we can track specifically $450 million of those monies that moved to our broker dealer.

是的。我的意思是我們每天都進行討論。布羅迪，我的意思是我能回答這個問題的最好方法是我們在過去兩個季度一直在進行這些討論，結果就是結果。所以我們 - 儘管我們正在進行這些討論，但我們有客戶轉移現金以尋求更高的收益率。我們仍然能夠成功地維持穩定的活期存款餘額。這並不意味著一些錢沒有動。正如我所說，我們可以具體追踪轉移到我們經紀交易商的資金中的 4.5 億美元。

But clearly, we successfully found another $450 million of demand deposits that showed up enjoyed the bank. So, so far, we've been able to manage those interest of higher yields from our clients successfully. We're keeping the relationship. We're serving the client. By the way, we've been here before, and those flows go back the other way when rates come down. So the important thing here is to keep the relationship so that when rates come down, the money does flow back into the bank. So I mean, that's the best guess.

但很明顯，我們成功地找到了另外 4.5 億美元的活期存款，這些活期存款出現在銀行中。因此，到目前為止，我們已經能夠成功地管理客戶對更高收益的興趣。我們保持關係。我們正在為客戶服務。順便說一句，我們以前來過這裡，當利率下降時，這些流量會以另一種方式返回。所以這裡重要的是保持這種關係，這樣當利率下降時，錢就會回流到銀行。所以我的意思是，這是最好的猜測。

Javier, do you want to?

哈維爾，你想要嗎？

I just want to add that we saw very strong new deposit account opening numbers for the first quarter in Puerto Rico, including non interest-bearing accounts. So I just wanted to clarify that very high compared to prior quarters.

我只想補充一點，我們看到波多黎各第一季度的新存款賬戶開戶數非常強勁，包括無息賬戶。所以我只想澄清一下，與前幾個季度相比非常高。

Our net new account in the first quarter was higher than it's been for a couple of years.

我們第一季度的新賬戶淨額高於幾年來的水平。

2021. Since the first quarter of 2021.

2021年。從2021年第一季度開始。

Got it. All right. I appreciate the color.

知道了。好的。我很欣賞這種顏色。

We have a follow up from Timur Braziler with Wells Fargo.

我們跟進了 Timur Braziler 與 Wells Fargo 的合作。

Yes. Sorry about that -- one last one for me on the expense base. I appreciate the color on the reduction in the first quarter and the expectation for it to ramp higher as the year goes. Any additional commentary on the cadence of that increase to get to that unchanged guidance level? And then secondarily, if you can provide any kind of color as to what type of internal budget, you're using for this year's profit-sharing initiative.

是的。對此感到抱歉 - 最後一個關於費用基礎的問題。我很欣賞第一季度減少的顏色以及隨著時間的推移它會上升的預期。關於為達到不變的指導水平而增加的節奏的任何其他評論？其次，如果你能提供任何類型的內部預算，你將用於今年的利潤分享計劃。

Okay. On the second question, there is presently no incorporation of any profit sharing in our numbers or are forward-looking. So nothing on that is in our numbers or our forward-looking outlook at this point in time. On your first question, it's tough to tell because it depends on when the projects get going and when the people are helping us in this project actually bill us.

好的。關於第二個問題，目前我們的數字中沒有包含任何利潤分享或具有前瞻性。因此，目前我們的數字或我們的前瞻性展望中沒有任何內容。關於你的第一個問題，很難說，因為這取決於項目何時開始，以及人們在這個項目中幫助我們的時間實際向我們收費。

So I would assume that it will be straight line up. It's always my best assumption right now for -- in the next 3 quarters to reach the goal. But (inaudible) a colleague here telling me what -- so that is my do it straight line in your model is it's probably not going to be far from the truth.

所以我假設它將是直線排列的。這始終是我現在最好的假設——在接下來的 3 個季度內實現目標。但是（聽不清）這裡的一位同事告訴我什麼 - 所以這是我在你的模型中做的直線，它可能與事實相去不遠。

I'll just clarify, we do accrue services provided, we don't wait for being

我只是澄清一下，我們確實會累積所提供的服務，我們不會等待

I guess once those projects start to ramp up, is the expectation going forward that those expenses remain on? Or is it going to be as lumpy as we've seen in the first quarter?

我想一旦這些項目開始增加，這些費用是否會持續下去？還是會像我們在第一季度看到的那樣起伏不定？

It will depend on the project. I don't think there's a global answer to your question.

這將取決於項目。我認為您的問題沒有全球性的答案。

The project and the number of projects that are ongoing at the same time. We're just moving from the theory and the planning to execution. That's just how quickly we can get all those plans going.

項目和同時進行的項目數。我們只是從理論和計劃轉向執行。這就是我們實施所有這些計劃的速度。

(Operator Instructions)There are no additional questions at this time. I will now hand the call back over to Javier Ferrer for closing remarks.

（操作員說明）目前沒有其他問題。我現在將把電話轉回給哈維爾·費雷爾，讓他發表結束語。

Thanks again for joining us and for your questions today. We look forward to updating you on our progress in July. Thank you.

再次感謝您今天加入我們並提出您的問題。我們期待在 7 月向您通報我們的進展情況。謝謝。

That concludes today's conference call. Thank you. You may now disconnect your lines.

今天的電話會議到此結束。謝謝。您現在可以斷開線路。