OFG Bancorp (OFG) 2022 Q2 法說會逐字稿

Good morning. Thank you for joining the OFG Bancorp's Conference Call. My name is Katie, and I will be your conference operator today.

早上好。感謝您參加 OFG Bancorp 的電話會議。我叫凱蒂，今天我將成為您的會議接線員。

Our speakers are José Rafael Fernández, Chief Executive Officer and Vice Chair of the Board of Directors; and Maritza Arizmendi, Chief Financial Officer.

我們的發言人是首席執行官兼董事會副主席 José Rafael Fernández；和首席財務官 Maritza Arizmendi。

A presentation accompanies today's remarks. It can be found on the Investor Relations website on the home page in the What's New box or on the Quarterly Results page.

今天的講話附有一個演示文稿。它可以在投資者關係網站主頁的最新消息框或季度業績頁面上找到。

This call may feature certain forward-looking statements about management's goals, plans and expectations. These statements are subject to risks and uncertainties outlined in the Risk Factors section of the OFG's SEC 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 that occur afterwards.

本次電話會議可能包含有關管理層目標、計劃和預期的某些前瞻性陳述。這些陳述受制於 OFG 提交給 SEC 的風險因素部分中概述的風險和不確定性。實際結果可能與當前預期的結果大不相同。由於事後發生的事態發展，我們不承擔任何更新本次電話會議中披露的信息的義務。

(Operator Instructions) I would now like to turn the call over to Mr. Fernández. Please go ahead.

（操作員說明）我現在想把電話轉給費爾南德斯先生。請繼續。

Good morning, and thank you for joining us. We are proud of this quarter's performance. It is a direct result of our focus on helping customers achieve progress and financial well-being. As always, thanks to our team members for their excellent work, commitment and dedication.

早上好，感謝您加入我們。我們為本季度的表現感到自豪。這是我們專注於幫助客戶取得進步和財務狀況的直接結果。一如既往，感謝我們的團隊成員出色的工作、承諾和奉獻精神。

So let us turn to Page 3 of our conference call presentation. Looking at our second quarter income statement, earnings per share diluted was $0.84. Core revenues totaled $146 million. That included a $4.7 million gain from the sale of legacy branch buildings. Net interest margin was 4.8%. Provision was $6.7 million. Noninterest expenses were $85 million. And pre-provision net revenues totaled $66 million.

因此，讓我們轉到電話會議演示文稿的第 3 頁。查看我們第二季度的損益表，稀釋後的每股收益為 0.84 美元。核心收入總計1.46億美元。其中包括從出售遺留分支機構建築物中獲得的 470 萬美元收益。淨息差為4.8%。撥備為 670 萬美元。非利息支出為 8500 萬美元。預提款淨收入總計 6600 萬美元。

Looking at our balance sheet, when we compare it to the prior quarter, total assets amounted to $10.2 billion. Customer deposits increased both from retail and commercial accounts and totaled approximately $9 billion. Our liquid balance sheet enable us to continue to deploy cash into higher-yielding loans and investment securities which improve our asset mix.

查看我們的資產負債表，與上一季度相比，總資產為 102 億美元。零售和商業賬戶的客戶存款均有所增加，總額約為 90 億美元。我們的流動資產負債表使我們能夠繼續將現金配置到收益更高的貸款和投資證券中，從而改善我們的資產組合。

Total loans held for investment increased 2.4%. We saw continued loan balance increases in all 3 of our key businesses, 4.7% increase in commercial loans, 9.7% increase in consumer loans and 3.2% increase in auto loans.

為投資而持有的貸款總額增加了2.4%。我們看到我們所有 3 項主要業務的貸款餘額持續增長，商業貸款增長 4.7%，消費貸款增長 9.7%，汽車貸款增長 3.2%。

New loan origination remained high at $587 million. Investment securities increased to $1.7 billion. Cash balances declined to $1.3 billion.

新貸款發放仍高達 5.87 億美元。投資證券增至 17 億美元。現金餘額下降至 13 億美元。

Looking at our capital and capital actions. We completed an additional $30.6 million of our $100 million share buyback program. Year-to-date, we have bought back a total of $64.1 million of shares. We ended the quarter with high levels of capital.

看看我們的資本和資本行動。我們完成了 1 億美元股票回購計劃中的另外 3060 萬美元。年初至今，我們共回購了 6410 萬美元的股票。我們以高水平的資本結束了本季度。

Overall, we had another great quarter in all our core businesses. This reflects our 3 main key drivers: consistently increasing recurring net income, driven primarily by loan growth; number two, our larger scale and investment in our people; and three, our focus on increasing digital utilization and customer service differentiation.

總體而言，我們在所有核心業務中都有另一個出色的季度。這反映了我們的 3 個主要關鍵驅動因素：持續增加的經常性淨收入，主要由貸款增長推動；第二，我們更大的規模和對員工的投資；第三，我們專注於提高數字化利用率和客戶服務差異化。

During the second quarter, we continued to improve the customer experience. We expanded our number of self-service banking kiosks. We introduced digital commercial account opening. Enhancements like these make it fast, easy and convenient for retail customers and commercial clients to do their banking with us.

第二季度，我們繼續改善客戶體驗。我們擴大了自助銀行服務亭的數量。我們推出了數字商業開戶。此類增強功能使零售客戶和商業客戶可以快速、輕鬆和方便地與我們進行銀行業務。

On a macro level, consumer and business liquidity and credit trends continued to show good momentum. This has positioned OFG well to benefit from further anticipated rate increases by the Fed.

宏觀層面，消費和企業流動性和信貸趨勢繼續呈現良好態勢。這使 OFG 能夠從美聯儲進一步預期的加息中受益。

Despite global headwinds, the Puerto Rico economic environment also continues to trend positively. This is due in part to the ongoing benefit from the flow of both Federal stimulus and reconstruction funds.

儘管全球逆風，波多黎各的經濟環境也繼續呈積極趨勢。這部分是由於聯邦刺激和重建資金的流動帶來的持續利益。

Now here's Maritza to go over the financials in more detail.

現在讓 Maritza 更詳細地了解財務狀況。

Thank you, José. Please turn to Page 4 to review our financial highlights.

謝謝你，何塞。請轉至第 4 頁查看我們的財務摘要。

Looking at total core revenues, they increased $13 million year-over-year and $10 million quarter-over-quarter. As part of that, interest income totaled $122 million. This was $9 million higher than the first quarter. Interest income benefited from increased yields on higher balances of loans and investment securities. It also benefited from improved yields on cash.

從核心總收入來看，他們同比增加了 1300 萬美元，環比增加了 1000 萬美元。其中，利息收入總計 1.22 億美元。這比第一季度高出 900 萬美元。利息收入受益於較高的貸款和投資證券餘額增加的收益率。它還受益於現金收益率的提高。

Noninterest income was $36 million. This increased $5 million from the first quarter. Core noninterest income at $31.2 million reflected higher banking service and wealth management revenues and lower mortgage banking revenues. Noncore noninterest income benefited from the $4.7 million gain on sale of our legacy branch buildings.

非利息收入為 3600 萬美元。這比第一季度增加了 500 萬美元。核心非利息收入為 3120 萬美元，反映了銀行服務和財富管理收入的增加以及抵押銀行業務收入的減少。非核心非利息收入受益於出售我們的舊分支機構建築所獲得的 470 萬美元收益。

Looking at the efficiency ratio. It was 58.27% in the second quarter. That's an improvement from both previous and year-ago quarters and reflects revenues growing at a greater rate than expenses.

看效率比。第二季度為58.27%。這比上一季度和去年同期都有所改善，反映了收入的增長速度高於支出。

Expenses totaled $85 million. That's $4 million higher than the first quarter. The increase primarily reflected higher compliance-related professional expenses due to greater levels of business activity. It also reflected higher technology expenses due to our ongoing investment in our digital capabilities.

費用總計 8500 萬美元。這比第一季度高出 400 萬美元。這一增長主要反映了由於更高水平的業務活動導致的與合規相關的專業費用增加。由於我們對數字能力的持續投資，這也反映了更高的技術費用。

Looking at our return metrics. They improved year-over-year and quarter-over-quarter. They also continue to be in line with our target range. Return on average asset was 1.58%. That is up 10 basis points from the previous quarter. Return on average tangible common equity was 17.70%. That is up more than 180 basis points from the first quarter.

查看我們的回報指標。他們同比和環比都有所改善。它們也繼續符合我們的目標範圍。平均資產收益率為1.58%。這比上一季度增加了 10 個基點。平均有形普通股權益回報率為 17.70%。這比第一季度增加了 180 多個基點。

Looking at tangible book value per share. That was $18.86. That is a decrease of 4 basis points from the first quarter. This reflects 3 factors: one, the repurchase of common stock; two, the reduction in other comprehensive income; and in turn, this was partially offset by the increase in returned earnings.

查看每股有形賬面價值。那是 18.86 美元。這比第一季度下降了4個基點。這反映了3個因素：一、回購普通股；二、其他綜合收益的減少；反過來，這部分被回報收益的增加所抵消。

Please turn to Page 5 to review our operational highlights. Looking at average loan balances, they totaled $6.64 billion. That is an increase of $121 million from the first quarter.

請轉至第 5 頁查看我們的運營亮點。從平均貸款餘額來看，它們總計為 66.4 億美元。這比第一季度增加了 1.21 億美元。

End-of-period loans held for investment increased $155 million. We have now had 2 consecutive quarters where loans have grown at almost a 10% annualized rate. The second quarter increase reflected new Puerto Rico and U.S. commercial loans and new auto and consumer loans. This was partially offset by a decline in mortgages and PPP loans.

為投資而持有的期末貸款增加了 1.55 億美元。我們現在已經連續兩個季度貸款的年增長率接近 10%。第二季度的增長反映了新的波多黎各和美國商業貸款以及新的汽車和消費貸款。這部分被抵押貸款和購買力平價貸款的下降所抵消。

Looking at loan yield. That was 6.73%, that's a 4 basis point increase from the first quarter. As we have mentioned in the past, it takes a while for Fed rate increases to work their way into our portfolio through new and variable rate loans.

看貸款收益率。那是 6.73%，比第一季度增加了 4 個基點。正如我們過去提到的，美聯儲加息需要一段時間才能通過新的和浮動利率貸款進入我們的投資組合。

Looking at average cost -- average core deposits. They totaled $8.95 billion. That is an increase of $138 million from the first quarter. And end-of-period deposit grew $50 million.

看平均成本——平均核心存款。它們總計 89.5 億美元。這比第一季度增加了 1.38 億美元。期末存款增加了 5000 萬美元。

Looking at core deposit costs. It was 24 basis points. That is a reduction of 1 basis point from the first quarter. To date, we have seen virtually no deposit beta.

查看核心存款成本。這是24個基點。這比第一季度減少了一個基點。迄今為止，我們幾乎沒有看到存款測試版。

Looking at new loan originations. Originations continued at a high level at $587 million. This reflects continued high levels of auto and consumer lending. Auto loan origination at $193 million reached a historical high level.

查看新的貸款來源。起源繼續保持在5.87億美元的高水平。這反映了汽車和消費貸款的持續高水平。 1.93 億美元的汽車貸款發放創歷史新高。

Now looking at net interest margin. That was 4.80%. That is an increase of 33 basis points from last quarter. It also -- it is also an increase of 58 basis points year-over-year. The higher net interest margins reflected 3 key factors: one, growth of the loan portfolio at a slightly higher yield. This accounted for 38% of the increase in net interest income. Two, the increase in investment securities at higher yields. This accounted for 35% of the increase. During the second quarter, we continued to opportunistically increase our investment portfolio. And three, higher yield on a lower volume of cash. This accounted for 21% of the increase.

現在看淨息差。那是4.80%。這比上一季度增加了 33 個基點。它還 - 它也同比增長了 58 個基點。較高的淨息差反映了三個關鍵因素：一是貸款組合以略高的收益率增長。這占淨利息收入增長的 38%。二是證券投資收益增加。這佔增長的 35%。在第二季度，我們繼續機會性地增加我們的投資組合。第三，以更少的現金獲得更高的收益。這佔增長的 21%。

Please turn to Page 6 to review our credit quality and capital strength. Looking at net charge-offs, they totaled $4.5 million in the second quarter and $577,000 in the first quarter. The second quarter included $2.5 million in net charge-offs -- on a net charge-off from a previously reserved commercial loan sold during this quarter -- during the second quarter. The second quarter also reflected significantly lower net charge-off in the auto loan portfolio and a nice recovery in the mortgage portfolio.

請轉至第 6 頁查看我們的信用質量和資本實力。從淨沖銷來看，第二季度總計 450 萬美元，第一季度總計 577,000 美元。第二季度包括 250 萬美元的淨沖銷——在本季度出售的先前保留的商業貸款的淨沖銷——在第二季度。第二季度還反映出汽車貸款組合的淨沖銷顯著降低以及抵押貸款組合的良好復甦。

First quarter net charge-offs benefited from $3.9 million in recoveries from an acquired PCD loan and the final settlement of the sale of nonperforming loans in the fourth quarter of 2021.

第一季度的淨沖銷受益於從收購的 PCD 貸款中收回的 390 萬美元以及 2021 年第四季度出售不良貸款的最終結算。

Looking at the provision for credit losses. Total provision for credit losses was $6.7 million. Let me break it down into its component to facilitate the analysis. Two main factors affected the non-PCD portfolio. One was the increase in volume -- in loan volume. This added $6.7 million to the provision. The other was 2 commercial loan entries into NPLs. They added $6 million. There were also 2 main factors that affected the PCD loan portfolio. One was a reduction in loan volume. This reduced provision by $1.6 million. And the other was a $3 million reduction in qualitative adjustment and loss factors as credit continue and -- as credit quality continues to trend positively.

看信用損失準備金。信貸損失準備金總額為 670 萬美元。讓我把它分解成它的組成部分，以便於分析。有兩個主要因素影響了非 PCD 投資組合。一是數量的增加——貸款量的增加。這增加了 670 萬美元的撥款。另一個是 2 筆商業貸款進入不良貸款。他們增加了 600 萬美元。還有兩個主要因素影響了 PCD 貸款組合。一是貸款量減少。這使準備金減少了 160 萬美元。另一個是隨著信貸的持續和信貸質量繼續呈積極趨勢，定性調整和損失因素減少了 300 萬美元。

Economic model adjustment of $1.7 million. This primarily accounts for higher probability of recession in the U.S., adding reserves to the U.S. loan portfolio. In the end, second quarter allowance coverage was 2.37%, relatively flat with the first quarter.

經濟模型調整 170 萬美元。這主要解釋了美國經濟衰退的可能性較高，增加了美國貸款組合的準備金。最終，二季度撥備覆蓋率為2.37%，與一季度持平。

Looking at nonperforming loans. Total nonperforming loan rate was 1.61%. That is up 12 basis points from the first quarter and down 50 basis points from a year ago.

看不良貸款。總不良貸款率為1.61%。這比第一季度上升了 12 個基點，比一年前下降了 50 個基點。

Looking at CET1 ratio. That was 12.80%. That compares to 13.24% in the first quarter. This reflects 3 factors: one, the repurchase of common stock; two, the increase in risk-weighted assets; and three, it turns -- this was partially offset by the increase in retained earnings.

看CET1比率。那是 12.80%。相比之下，第一季度為 13.24%。這反映了3個因素：一、回購普通股；二、風險加權資產增加；第三，事實證明——這部分被留存收益的增加所抵消。

Now here is José.

現在是何塞。

Thank you, Maritza. Let's turn to Page 7 for our outlook.

謝謝你，瑪麗莎。讓我們翻到第 7 頁了解我們的展望。

Starting first with OFG, we see continued increased levels of business activity and loan growth. Credit metrics remain under control and significantly better than pre-pandemic. With our higher levels of revenue, we are now targeting our efficiency ratio to be in the mid-50s range for the rest of the year and 2023.

首先從 OFG 開始，我們看到商業活動和貸款增長水平持續提高。信用指標仍處於可控範圍內，明顯好於大流行前。隨著我們更高水平的收入，我們現在的目標是在今年剩餘時間和 2023 年將效率比保持在 50 年代中期。

We will continue to invest in our people, technology and infrastructure with an even greater focus on improving the customer experience.

我們將繼續投資於我們的人員、技術和基礎設施，更加專注於改善客戶體驗。

As seen during the past several quarters, we continue to expect core revenues to grow, primarily driven by loan growth and interest rates. Our capital metrics will continue to remain high compared to our U.S. peers.

正如過去幾個季度所見，我們繼續預計核心收入將增長，主要受貸款增長和利率的推動。與美國同行相比，我們的資本指標將繼續保持較高水平。

Looking at the Puerto Rico macro environment, consumer and businesses in Puerto Rico continued to demonstrate good levels of liquidity. Having said that, we are keeping a watchful eye on inflation and its economic repercussions in Puerto Rico, particularly on consumers. As I mentioned earlier, we believe the significant amount of Federal stimulus and reconstruction spending in Puerto Rico should help mitigate the impact of potential headwinds.

從波多黎各的宏觀環境來看，波多黎各的消費者和企業繼續表現出良好的流動性水平。話雖如此，我們正在密切關注通貨膨脹及其對波多黎各的經濟影響，特別是對消費者的影響。正如我之前提到的，我們認為波多黎各的大量聯邦刺激和重建支出應有助於減輕潛在逆風的影響。

We at OFG are more than ready. I want to thank all our resilient team members for their dedication and commitment. They've done a great job. Thanks, and that ends our formal presentation. Operator, let's start the Q&A.

我們 OFG 已經做好了充分的準備。我要感謝我們所有堅韌不拔的團隊成員的奉獻精神和承諾。他們做得很好。謝謝，我們的正式演講到此結束。接線員，我們開始問答吧。

(Operator Instructions) Our first question will come from Brett Rabatin with Hovde Group.

（操作員說明）我們的第一個問題將來自 Hovde Group 的 Brett Rabatin。

I wanted to first just talk about the credit backdrop a little bit. It seems like with the qualitative adjustment that things continue to get better from a macro perspective in Puerto Rico, but you did have 2 credits migration to nonaccrual. Can you talk, one, about what you're seeing in terms of migration overall? And then maybe specifically about those 2 credits and give us any color on those 2 particular ones?

我想先談談信用背景。從宏觀角度來看，波多黎各的情況似乎隨著質量調整而繼續好轉，但您確實有 2 個學分遷移到非應計。您能談談您在整體遷移方面看到的情況嗎？然後也許特別是關於這 2 個學分並給我們這 2 個特定學分的任何顏色？

Sure. So as I said on the remarks earlier, we see credit in Puerto Rico continue to trend very positively and consumers continue to have high levels of liquidity and so do businesses. So we are not feeling any change in how the Puerto Rico credit situation is behaving at this point.

當然。因此，正如我之前在評論中所說，我們看到波多黎各的信貸繼續呈現非常積極的趨勢，消費者繼續擁有高水平的流動性，企業也是如此。因此，我們目前沒有感覺到波多黎各信貸情況的表現有任何變化。

Regarding the 2 credits, these are 2 isolated commercial loans. One is a small business loan in Puerto Rico. It's a $2 million loan. And really, it's just in a business -- it's in the telecommunication business, and they provide services to telecommunication companies. And they've been suffering a bit from the supply chain issues in terms of the importing of all the materials that they need to get things done. So we feel that it's completely isolated regarding the credit and we're working with it. So it's not a big issue.

關於這 2 筆信貸，這是 2 筆獨立的商業貸款。一個是波多黎各的小企業貸款。這是一筆200萬美元的貸款。實際上，它只是在一個企業中——它在電信業務中，它們為電信公司提供服務。在進口完成工作所需的所有材料方面，他們一直在遭受供應鏈問題的困擾。所以我們覺得它在信用方面是完全孤立的，我們正在處理它。所以這不是一個大問題。

The other loan is a U.S. loan participation. And this, again, is a -- it's in the packaging business. So the manufacturing and the supply chain also have caused some disruptions and that's why we are provisioning for it.

另一筆貸款是美國貸款參與。這又是一個——它在包裝行業。因此，製造和供應鏈也造成了一些中斷，這就是我們為其提供準備的原因。

But we do not see at all any change on the credit profile here in the island. And frankly, I think the global inflation and disruption that has occurred, certainly, we do have some of those effects in the island, particularly in the electricity cost and the gasoline.

但我們根本看不到島上的信用狀況有任何變化。坦率地說，我認為已經發生的全球通貨膨脹和破壞，當然，我們確實在島上產生了一些影響，特別是在電力成本和汽油方面。

But as I travel through the island, and I do that quite often, visiting the different businesses and as well as our branches and employees, there's a lot of business activity in the island. And I definitely will probably cannot keep up with the same level of growth we've had in the first part of the year in Puerto Rico. But I think Puerto Rico is in a pretty good position right now economically.

但是當我在島上旅行時，我經常這樣做，參觀不同的企業以及我們的分支機構和員工，島上有很多商業活動。而且我肯定無法跟上波多黎各今年上半年的增長水平。但我認為波多黎各現在在經濟上處於相當有利的地位。

Okay. And you mentioned inflation, José Rafael. I guess one of the pushbacks I get when I talk about Puerto Rico is that, well, the inflationary pressures will have a disproportionate impact on the population in Puerto Rico. But with all of the funds flowing to the island, it certainly seems like things could continue to be strong. Are you seeing anything from a consumer perspective that would tell you that they're starting to not be able to continue their usual expenditures or there's pressure from the inflation?

好的。你提到了通貨膨脹，何塞·拉斐爾。我想當我談到波多黎各時，我遇到的一個阻力是，通貨膨脹壓力將對波多黎各的人口產生不成比例的影響。但隨著所有資金流向該島，情況似乎肯定會繼續強勁。您是否從消費者的角度看到任何東西會告訴您他們開始無法繼續他們的日常支出或通脹壓力？

So we frankly have not. We continue to see the consumer pretty strong. We saw our levels of auto lending this quarter was really a record for us. So we see the consumer is still very much going out there and buying big ticket items, too. So we are not seeing any deterioration so far.

所以坦率地說，我們沒有。我們繼續看到消費者相當強勁。我們看到本季度的汽車貸款水平對我們來說確實是創紀錄的。因此，我們看到消費者仍然非常熱衷於購買大件商品。因此，到目前為止，我們沒有看到任何惡化。

But we are cognizant of what's going on in terms of the cost of living in the island, as it has affected the rest of the world. And logically, we should expect a slowdown of that. We are not modeling going forward to remain the level of activity that we're seeing because interest rates are going up and inflation.

但我們知道島上的生活成本正在發生什麼，因為它已經影響到世界其他地方。從邏輯上講，我們應該預期這種情況會放緩。我們不會繼續建模以保持我們所看到的活動水平，因為利率正在上升和通貨膨脹。

Okay. Great. And then maybe just one last one. Auto continues to be strong in Puerto Rico. Any sense of where auto goes from here? Do you think it trends similar to last year from here? Or do you think it continues its current trend?

好的。偉大的。然後也許只是最後一個。汽車在波多黎各繼續保持強勁勢頭。對汽車從這裡去哪裡有任何感覺嗎？你認為從這裡開始它的趨勢與去年相似嗎？還是您認為它會延續目前的趨勢？

My gut tells me that it's hard to keep the pace, Brett, so in terms of the sales of new autos in Puerto Rico in general. So I know that there's been some disruptions in the near -- in the recent past in terms of inventories and all that, given -- driven by the chip manufacturers and all that stuff. Surprisingly to us, the dealers continue to have enough inventory to sell cars. And I just feel that it's not going to be able to sustain -- be sustainable going forward.

我的直覺告訴我，很難跟上步伐，布雷特，所以就波多黎各的新車銷售而言。所以我知道在不久的將來——在最近的庫存和所有這些方面——受到芯片製造商和所有這些東西的驅動，出現了一些中斷。令我們驚訝的是，經銷商仍然有足夠的庫存來銷售汽車。而且我只是覺得它無法維持 - 可持續發展。

Having said that though, the new car sales in Puerto Rico are going to remain at a high level, given what I said earlier in terms of the strength of the consumers and businesses in the island.

儘管如此，考慮到我之前所說的島上消費者和企業的實力，波多黎各的新車銷量將保持在高水平。

And Brett, you also mentioned the stimulus funds and you mentioned the reconstruction funds. Just want to give you a little bit of additional color there. We are seeing a lot of activity on the reconstruction part. And we're seeing a lot of projects going out there that are more government-driven, but are really creating an additional layer of momentum for the island, particularly for the middle class and low middle class in Puerto Rico. And I think that's really encouraging. And it should be sustainable for the next several years given the magnitude of those reconstruction funds.

布雷特，你還提到了刺激基金和重建基金。只是想給你一點額外的顏色。我們在重建部分看到了很多活動。我們看到很多項目更多地由政府推動，但確實為該島創造了額外的動力，特別是波多黎各的中產階級和中低產階級。我認為這真的很令人鼓舞。鑑於這些重建資金的規模，它應該在未來幾年內是可持續的。

And in terms of the stimulus fund from COVID, those are still coming in. And I want to stress the Child Tax Credit is something that Puerto Rico has never been significantly a beneficiary of it in any significant way. And now this new law allows Puerto Rico to receive Child Tax Credit equal to any -- with the same formula as any other state of the union. And that has a significant impact. It has also some qualitative impacts, too. And that is in order for you to get that credit, you need to file your tax returns. So Puerto Rico government is seeing higher tax return filings in many, many years where that has not occurred. So it's bringing more people to the economy and coming out of the underground economy.

就 COVID 的刺激基金而言，這些資金仍在湧入。我想強調的是，兒童稅收抵免是波多黎各從未以任何重要方式從中受益的東西。現在，這項新法律允許波多黎各獲得與任何其他州相同的兒童稅收抵免——其公式與聯盟的任何其他州相同。這會產生重大影響。它也有一些定性的影響。那是為了讓您獲得該信用，您需要提交納稅申報表。因此，波多黎各政府在很多很多年都沒有看到更高的納稅申報表。因此，它將更多人帶入經濟並擺脫地下經濟。

So there are lots of underpinnings going on in Puerto Rico right now, apart from the dollar number that are building. What I think is it's going to be a good forward outlook for the island in the next several years.

因此，除了正在建立的美元數量之外，波多黎各現在有很多基礎。我認為這將是該島在未來幾年內的良好前景。

Yes, that's helpful, José Rafael. I certainly think that Puerto Rico could decouple from the mainland U.S., assuming the U.S. is in a recession at some point. I appreciate all the color and congrats on the quarter.

是的，這很有幫助，何塞·拉斐爾。我當然認為波多黎各可以與美國大陸脫鉤，假設美國在某個時候處於衰退之中。我很欣賞本季度的所有顏色和祝賀。

Our next question will come from Timur Braziler with Wells Fargo.

我們的下一個問題將來自富國銀行的 Timur Braziler。

Maybe following up on one of the statements you had made, José, with the loan growth. You're still expecting good loan growth but probably can't keep the pace with what you saw in the first half of the year. Can you talk through which line items? Is that mainly a consumer statement kind of in reference to your gut feeling on auto slowing? Or is there something that you're seeing more broadly that makes you believe that the pace of lending activity is not sustainable, as a follow-up?

也許跟進你所做的聲明之一，何塞，貸款增長。您仍然期待良好的貸款增長，但可能無法跟上您在上半年看到的步伐。你能談談哪些行項目？這主要是關於您對自動減速的直覺的消費者陳述嗎？或者，作為後續行動，您是否有更廣泛的看法讓您相信貸款活動的步伐不可持續？

Sure. Thank you for your question. Yes, we see loan growth in the second half of the year. And we see still loan growth on the auto portfolio. We also see it on the consumer portfolio. And as you've seen, we've grown the commercial book 2 quarters in a row at an annualized rate of 10%. So we still see very good opportunities on the commercial side. Might slow down a little bit in the second half, but we still see those 3 lines being the main drivers of our loan growth in the second half of the year.

當然。謝謝你的問題。是的，我們看到下半年的貸款增長。我們看到汽車投資組合的貸款仍在增長。我們還在消費者組合中看到了它。正如您所見，我們已經連續兩個季度以 10% 的年增長率增長了商業圖書。所以我們仍然在商業方面看到了很好的機會。下半年可能會放緩一點，但我們仍然認為這 3 條線是我們下半年貸款增長的主要驅動力。

Okay. That's helpful. And then as you're looking to fund that loan growth, deposit growth slowed a little bit here in the second quarter, utilized some on-balance sheet liquidity. As you look to fund the loan growth for the rest of the year and into '23, is the expectation that, that will be funded through deposits? Is there still some on-balance sheet liquidity you plan on using? Maybe just talk about the funding strategy going forward.

好的。這很有幫助。然後，當您希望為貸款增長提供資金時，存款增長在第二季度略有放緩，利用了一些資產負債表上的流動性。當您希望為今年剩餘時間和 23 年的貸款增長提供資金時，是否期望通過存款來提供資金？您是否還計劃使用一些資產負債表上的流動性？也許只是談談未來的融資策略。

Sure. We are beneficiaries for the first time in many, many decades in Puerto Rico. The banking sector has excess core funding, so we certainly are going to take advantage of that opportunity. And as you saw this quarter, we also -- we grew deposits even further this quarter. We feel that loan growth is going to be funded by those core deposits that we have, that excess deposits.

當然。我們是波多黎各數十年來第一次受益。銀行業的核心資金過剩，所以我們肯定會利用這個機會。正如您在本季度看到的那樣，我們還 - 我們在本季度進一步增加了存款。我們認為貸款增長將由我們擁有的那些核心存款，即超額存款提供資金。

And so at the end of the day, when you look at the Puerto Rico banking market today, it's very different than it was 20 years ago. And it's very different from the same dynamics that you see in the banking market in the States. But I think in a way, that it's benefiting us at OFG, and that is we only have 3 players, 3 main players. And I think we all have excess deposits and we are all being very rational in our deposit strategies. So I feel that as we grow further our loan book, it will be done through our core deposit balances.

因此，歸根結底，當您查看今天的波多黎各銀行市場時，它與 20 年前大不相同。這與您在美國銀行市場中看到的相同動態非常不同。但我認為在某種程度上，這讓我們在 OFG 受益，那就是我們只有 3 名球員，3 名主力球員。我認為我們都有超額存款，我們的存款策略都非常理性。所以我覺得隨著我們的貸款賬簿進一步增長，它將通過我們的核心存款餘額來完成。

Okay. Next for me, on the bond purchases this quarter. Can you just talk through what some of those reinvestment yields were during the quarter, where you're seeing yields today and what the appetite there is for additional securities purchases here in the back end of the year?

好的。接下來對我來說，關於本季度的債券購買。您能否談談本季度的一些再投資收益率，您今天看到的收益率以及今年年底對額外證券購買的興趣如何？

Yes. I would say in the 3 handle, 3% or so kind of a handle for both, for the mortgage-backed securities as well as for the treasuries. There's not that much availability to buy mortgage-backed securities in the U.S. market. As interest rates have shifted up quite dramatically, the supply of the securities is -- has been quite slow. So -- but anyway, the purchases we've done, it's around 3% -- north of 3%.

是的。我想說的是，對於抵押貸款支持證券和國庫券，在 3% 左右的比例中都是如此。在美國市場上購買抵押貸款支持證券的機會並不多。由於利率已經大幅上升，證券的供應非常緩慢。所以 - 但無論如何，我們所做的購買，大約是 3% - 超過 3%。

Okay. Okay. And then just last for me, again, following up on the credit quality and understanding your comments about the macro trends and how it's going to be much better than where we had seen Puerto Rico in the past. But do you think that we're nearing kind of a bottom of how good credit quality has been and we're starting to inflect whatever this new normal level is? Or do you just see these 2 credits that popped up this quarter as one-off?

好的。好的。然後再一次對我來說，跟進信用質量並了解您對宏觀趨勢的評論以及它將如何比我們過去看到波多黎各的地方好得多。但是你是否認為我們已經接近信用質量的底部，並且我們開始改變這個新的正常水平？還是您只是將本季度突然出現的這 2 個學分視為一次性的？

So you have a 2-part question there. So I think we're hitting a bottom. We've hit a bottom in terms of credit quality across the island. It's not sustainable having net recoveries as we've had in the last year and part of this year in some of the loan book. So does that mean it's going to deteriorate to what we have been accustomed to in Puerto Rico for the last 2 decades? The answer is no. We feel that it's a different story now. And we will see trending up some delinquencies on the consumer book, auto and consumer. We see the profile of the consumers a lot better than it was in years past. So we feel confident with that.

所以你有一個兩部分的問題。所以我認為我們正在觸底。我們在全島的信用質量方面已經觸底。像我們在去年和今年部分時間的一些貸款賬簿中那樣，淨回收是不可持續的。那麼這是否意味著它會惡化到我們在過去 2 年裡在波多黎各所習慣的狀態？答案是不。我們覺得現在情況不同了。我們將看到消費類圖書、汽車和消費者方面的一些違約率呈上升趨勢。我們看到消費者的形像比過去幾年要好得多。所以我們對此充滿信心。

And in terms of the commercial side, I think we will continue to see the strength of the businesses in Puerto Rico, and we are not seeing any deterioration whatsoever for the commercial side of the loan book.

在商業方面，我認為我們將繼續看到波多黎各業務的實力，而且我們沒有看到貸款簿的商業方面有任何惡化。

So I split it in 2 because I feel that the consumer is going to kind of start normalizing a little bit the trends on the credit into the next several quarters. But on the commercial side, there's quite a strength on the businesses in Puerto Rico and we don't foresee any deterioration forward.

所以我把它一分為二，因為我覺得消費者會開始在接下來的幾個季度裡讓信貸趨勢正常化一點。但在商業方面，波多黎各的業務相當強大，我們預計未來不會出現任何惡化。

Our next question will come from Alex Twerdahl with Piper Sandler.

我們的下一個問題將來自 Alex Twerdahl 和 Piper Sandler。

I wanted to drill in on a couple of more points here. One, maybe you can just give us an update on sort of the asset sensitivity expectation, just given that the rate hikes that we've seen in May and June clearly aren't fully reflected in the quarter. Just kind of with what we've gotten so far, what would be the expectation for the NIM and for NII, more importantly, heading into the third quarter?

我想在這裡再深入一點。一，也許您可以向我們提供有關資產敏感性預期的最新信息，因為我們在 5 月和 6 月看到的加息顯然並未在本季度完全反映。就我們目前所獲得的情況而言，對 NIM 和 NII 的期望是什麼，更重要的是，進入第三季度？

Yes. So Alex, as you point out, this quarter does not yet reflect what happened during the quarter in terms of interest rate increases by the Fed. So there's a 2-, 3-month lag for us to reflect the full effect of those interest rate increases.

是的。所以亞歷克斯，正如你所指出的，本季度還沒有反映本季度美聯儲加息的情況。因此，我們有 2 到 3 個月的滯後時間來反映這些加息的全部影響。

So what I would say is that this third quarter, you will see the full effect of the rate increases that you saw in the second half of the -- in the second quarter. And you'll see partial effect on the forthcoming rate increases by the Fed.

所以我想說的是，在第三季度，您將看到第二季度下半年加息的全部影響。你會看到美聯儲即將加息的部分影響。

So at the end of the day, we can all do the math and it's pretty straightforward. We have pretty good outlook out there in terms of net interest income and the margin, given the core deposit strength that we have on our balance sheet and looking at our betas being relatively 0 or negative so far this quarter.

因此，歸根結底，我們都可以進行數學計算，而且非常簡單。鑑於我們在資產負債表上的核心存款實力以及本季度到目前為止我們的貝塔係數相對為 0 或負數，我們在淨利息收入和利潤率方面的前景非常好。

So we feel very confident about the impact of interest rates into our loan book and how we will be benefiting from it the rest of the year and into 2023. That is why we feel now more comfortable saying, given the investments that we're making in our technology and digital and improving our customer experience, that is why now we're feeling more confident in saying the efficiency ratio should be in the mid-50s for the rest of the year and 2023.

因此，我們對利率對我們貸款賬簿的影響以及我們將如何在今年剩餘時間和 2023 年從中受益充滿信心。這就是為什麼我們現在更放心地說，鑑於我們正在進行的投資在我們的技術和數字化以及改善我們的客戶體驗方面，這就是為什麼我們現在更有信心說今年剩餘時間和 2023 年效率比應該在 50 年代中期。

I wish I had a little crystal ball 2 quarters ago to be able to feel as positive as I feel today regarding efficiency ratio, but it is what it is.

我希望我在兩個季度前有一個小水晶球，能夠像今天一樣對效率比感到積極，但事實就是這樣。

Just as a quick housekeeping item, do you have the PPP fee contribution from the second quarter in the NIM and NII?

就像一個快速的家務項目，你有第二季度的 NIM 和 NII 中的 PPP 費用貢獻嗎？

I don't, but I'm sure Maritza has the number.

我沒有，但我確定 Maritza 有這個號碼。

Alex, I don't have it with me. It should be much lower than we saw last quarter, but we can -- I can give it to you offline, okay?

亞歷克斯，我沒帶它。它應該比我們上個季度看到的要低得多，但我們可以——我可以離線給你，好嗎？

Okay. And then you mentioned that in the second quarter, you're seeing really nothing in the way of deposit betas so far. Is there any inclination that customers are looking for higher deposit rates? Are you seeing any pressure thus far with all the hikes we've seen?

好的。然後您提到，在第二季度，到目前為止，您實際上沒有看到任何存款測試版。客戶是否傾向於尋求更高的存款利率？到目前為止，您是否看到我們所看到的所有加息有任何壓力？

So I'll do what I did earlier, I'll split the answer in 2.

所以我會做我之前做的事情，我會把答案分成2份。

Consumers, we are starting to see some high-balance consumers starting to move money to the wealth management side of the business. So you saw a little bit of an increase in fees on the broker-dealer and the trust business. That's a little bit of what we're seeing. Certainly, there's no -- we don't get all of it, but we certainly are seeing some of it. So on the consumer side, high balances, some of the CDs that are coming due, they were being redeployed into savings accounts at a higher rate earlier in the year. Now they're being deployed to wealth management and we're seeing that happening.

消費者，我們開始看到一些高餘額消費者開始將資金轉移到業務的財富管理方面。因此，您看到經紀自營商和信託業務的費用略有增加。這只是我們所看到的一點點。當然，沒有——我們沒有得到全部，但我們肯定看到了其中的一部分。因此，在消費者方面，高餘額，一些即將到期的 CD，它們在今年早些時候以更高的速度被重新部署到儲蓄賬戶中。現在它們被部署到財富管理中，我們看到這種情況正在發生。

On the commercial side, we're seeing some of the large commercial balances also having -- putting a little bit of pressure in terms of interest rates. So they're competing forces in the island that we need to be cognizant of. So there might be some pressure for us on the commercial large balance deposits in the next several quarters.

在商業方面，我們看到一些大型商業餘額也有——在利率方面施加了一點壓力。所以他們是島上的競爭力量，我們需要認識到這一點。所以未來幾個季度商業大額存款可能對我們有一定的壓力。

But again, we feel that we are in pretty good shape in Puerto Rico, OFG and Puerto Rico as well, given the competing marketplace we operate in, which has a significant player here with excess deposits and as well as the other 2 players. So we're, I think, optimistic about deposit betas for us here at OFG going forward.

但同樣，我們認為我們在波多黎各、OFG 和波多黎各的狀況也非常好，因為我們經營的市場競爭激烈，這裡有一個擁有超額存款的重要參與者以及其他兩個參與者。因此，我認為，我們對 OFG 未來的存款測試感到樂觀。

Great. And then can you give us some color on the mortgage market in Puerto Rico? Have you seen a slowdown? I mean, it really wasn't reflected anywhere near as much as I expected in mortgage banking this quarter. But just maybe give us a little bit of color on sort of what higher rates have done to mortgage application volume.

偉大的。然後你能給我們介紹一下波多黎各的抵押貸款市場嗎？你見過減速嗎？我的意思是，這在本季度的抵押貸款銀行業務中並沒有像我預期的那樣得到反映。但也許可以讓我們對更高的利率對抵押貸款申請量的影響有所了解。

Yes. So 2 things that I can give you color on. One is certainly interest rate increases have basically brought to 0 all the refinancing on the residential mortgage side. So from that point of view, that type of business is pretty much 0.

是的。所以有兩件事我可以給你顏色。一是肯定加息已經基本把住房抵押貸款方面的所有再融資都帶到了0。所以從這個角度來看，這種類型的業務幾乎是 0。

But on the other hand, Puerto Rico's real estate market has improved. We have seen increases in prices across all different buckets in terms of residential. And actually, we've seen that coming from a really, really depressed level, as you can recall. So what we're seeing is that there's still quite a bit of a purchase market here in the island, and there's quite a bit of an activity in spite of the increase in interest rates. And that is because we still have a need for housing in the island. And that's some of the things that are being taken care of by the reconstruction funds.

但另一方面，波多黎各的房地產市場有所好轉。就住宅而言，我們已經看到所有不同類別的價格都有所上漲。實際上，正如你所記得的那樣，我們已經看到，這來自一個非常非常沮喪的水平。所以我們看到的是，島上仍有相當多的購買市場，儘管利率上升，但仍有相當多的活動。那是因為我們仍然需要島上的住房。這就是重建基金正在處理的一些事情。

So you might not see the residential mortgage market in Puerto Rico be as affected as in the States, given that our residential prices have not gone as -- on a relative basis, have not gone as high as pretty much all the States in the United States. And what we're seeing is that there's still some good opportunities for purchase market here.

所以你可能不會看到波多黎各的住宅抵押貸款市場像美國那樣受到影響，因為我們的住宅價格並沒有像美國幾乎所有的州那樣高。狀態。我們看到的是，這裡仍有一些購買市場的好機會。

Got it. And then with the rates going higher, I mean, at some point, does it make sense to put more of that on your balance sheet?

知道了。然後隨著利率走高，我的意思是，在某個時候，把更多的錢放在你的資產負債表上有意義嗎？

So that's a good point, and we are starting to do that. As rates have gone up, we've started to do that in this summer, in late June, early July. So we're actually retaining some of the -- some of the residential loans that we originate because they have a better yield. So yes, we're doing that. So you'll see mortgage banking activities slightly trending down simply because we're retaining and not selling.

所以這是一個很好的觀點，我們正在開始這樣做。隨著利率的上漲，我們在今年夏天、6 月底、7 月初開始這樣做。所以我們實際上保留了一些 - 我們發起的一些住宅貸款，因為它們的收益率更高。所以是的，我們正在這樣做。因此，您會看到抵押銀行活動略有下降，這僅僅是因為我們保留而不是出售。

(Operator Instructions) Our next question will come from Brett Rabatin with Hovde Group.

（操作員說明）我們的下一個問題將來自 Hovde Group 的 Brett Rabatin。

Just a couple of follow-ups here. First, would you happen to have the balances for the U.S. portfolio and then what the appetite might be going forward, just kind of given concerns about the U.S. economy and what industries that you're interested in, in the U.S.?

這裡只是一些後續行動。首先，您是否碰巧擁有美國投資組合的餘額，然後可能會有什麼需求，只是考慮到對美國經濟以及您對美國哪些行業感興趣的擔憂？

Yes. So just to give you some background, we started back in 2017. So we built around $600 million in loan balances as of June 30. So that's kind of the size. Most of it is small commercial loans. And there is around $130-some million of middle market loans. So that's the composition.

是的。所以只是為了給你一些背景，我們從 2017 年開始。所以截至 6 月 30 日，我們建立了大約 6 億美元的貸款餘額。所以這就是規模。其中大部分是小額商業貸款。還有大約 1.3 億美元的中間市場貸款。這就是組成。

And then José Rafael, any thoughts on your appetite for production?

然後是何塞·拉斐爾，你對製作的胃口有什麼想法嗎？

Yes, sorry. I think what you've seen so far in the last several quarters, that's what you're going to be seeing going forward. As I said, this is a geographic diversification strategy that we've been pursuing since 2017. And so what you will see from us is continue to be nationally diversified, mostly focused on the small businesses in the States and building our team here in the island, too. I mean -- I'm sorry, not in the island, building our team for the U.S. business also. That's also part of what we're doing because, again, I think it makes sense for us to diversify geographically. So that's kind of how we see the U.S. business today.

是的，對不起。我認為你在過去幾個季度到目前為止所看到的，這就是你將要看到的未來。正如我所說，這是我們自 2017 年以來一直在追求的地域多元化戰略。因此，您將看到我們繼續在全國范圍內實現多元化，主要關注美國的小企業，並在美國建立我們的團隊島也是。我的意思是——我很抱歉，不在島上，也為美國業務建立我們的團隊。這也是我們正在做的事情的一部分，因為我再次認為，我們在地域上實現多元化是有意義的。這就是我們今天看待美國業務的方式。

Okay. And then you're mostly through the current authorization on the share repurchase plan. Do you have any thoughts on share repurchases from here and how you see that money in the back half of the year?

好的。然後你主要是通過當前授權的股票回購計劃。您對從這裡開始的股票回購有任何想法，以及您如何看待下半年的這筆錢？

Yes. So we've done pretty -- we've been pretty opportunistic in the last 2 years, since 2021 when we did -- we announced the first repurchase. So we're going to continue to be opportunistic going forward. We also look at the dividend and we will continue to -- we recognize that we have a very strong position in terms of capital. We have great momentum in the business. So we always look at both and we will update the market accordingly.

是的。所以我們做得很好——從 2021 年開始，我們在過去 2 年一直非常投機取巧——我們宣布了第一次回購。因此，我們將繼續投機取巧。我們還關注股息，我們將繼續 - 我們認識到我們在資本方面擁有非常強大的地位。我們的業務發展勢頭強勁。所以我們總是同時關注兩者，我們會相應地更新市場。

Okay. And then just lastly, I saw in the news, in a publication, that there was an estimate for the positive impact of Airbnb in Puerto Rico and the tourism market in Puerto Rico. Any thoughts on what you're seeing tourism-wise and just how that's benefited the economy and what you think the outlook might be for that?

好的。最後，我在新聞和出版物中看到，有人估計 Airbnb 對波多黎各和波多黎各旅遊市場的積極影響。關於您所看到的旅遊方面的任何想法以及這如何使經濟受益以及您認為前景可能如何？

Yes. Hospitality in general in Puerto Rico, it is trending very positively. All our commercial loans that we have on the hospitality business are performing significantly better than what we had projected when we originated the loans. We are seeing very lower levels of vacancy than historically. We're seeing a lot of business activity on the travels tube. And I think Puerto Rico is also doing a much better job at marketing the island abroad.

是的。波多黎各的整體熱情好客，趨勢非常積極。我們在酒店業務上擁有的所有商業貸款的表現都明顯好於我們發放貸款時的預期。我們看到的空置率低於歷史水平。我們在旅遊管上看到了很多商業活動。而且我認為波多黎各在海外市場營銷方面也做得更好。

So I think we're seeing the hospitality business as a growth business in the island. And certainly, there's a lot of Airbnb as you pointed out. But there's also -- in the last several years, there's been quite a buildup on rooms, hotel rooms in the island in -- not only in the metropolitan area but also around -- across the entire island. And all those hotels are performing very well and should continue to serve the tourism business in the island.

所以我認為我們將酒店業務視為島上的一項增長業務。當然，正如您所指出的，Airbnb 有很多。但是，在過去的幾年裡，島上的房間和酒店房間也大量增加——不僅在大都市區，而且在整個島嶼周圍。所有這些酒店的表現都非常好，應該會繼續為島上的旅遊業服務。

Okay. And then maybe just one last one. I saw the oversight for [PROS], the Act 41 very recently. Any update or any thoughts on what's going on with the oversight board and their actions and how that's impacted Puerto Rico?

好的。然後也許只是最後一個。我最近看到了對 [PROS] 的疏忽，即第 41 號法案。關於監督委員會發生的事情及其行動以及這對波多黎各有何影響的任何更新或任何想法？

So I think the oversight board has a mandate, and that mandate is to get balanced budgets and to make sure that they restructure the debt and all that stuff. They've been doing -- in my mind, they're doing a good job at keeping discipline, fiscal discipline in the island. And it's -- you see it in the States. You see it here in Puerto Rico. It's hard to keep fiscal discipline for governments across the United States as well as across the world. So I think the fiscal board is serving as a good vehicle with all its deficiencies, right? But it is a good vehicle to keep the fiscal discipline. And it's definitely not perfect, but it's something that -- it's going to take, I think, 2 or 3 more balanced budgets for them to complete their mandate. They have to restructure the PREPA debt, which is still on the works. So I think the dynamics are, after a while, it's kind of working as it should be.

所以我認為監督委員會有一項任務，該任務是平衡預算並確保他們重組債務和所有這些東西。他們一直在做——在我看來，他們在保持島上的紀律和財政紀律方面做得很好。它是 - 你在美國看到它。你在波多黎各看到它。很難為美國和世界各地的政府保持財政紀律。所以我認為財政委員會是一個很好的工具，它有所有的缺陷，對吧？但這是保持財政紀律的好工具。這絕對不是完美的，但它需要，我認為，他們需要 2 或 3 個更平衡的預算才能完成他們的任務。他們必須重組仍在進行中的 PREPA 債務。所以我認為動態是，一段時間後，它應該是這樣工作的。

Our next question will come from Kelly Motta with KBW.

我們的下一個問題將來自 KBW 的 Kelly Motta。

I got disconnected a little while ago, so I apologize if this has already been asked. But I noticed your efficiency guidance was taken down to the mid-50% range with this quarter. So I was wondering if that's mostly a function of the higher NII outlook versus expense growth. And if you could also talk about whether the higher NII outlook is changing how you think about maybe further investments into the franchise and a little bit about what you're doing to help grow and improve the customer experience on the expense side would be excellent.

不久前我斷開了連接，所以如果已經問過這個問題，我深表歉意。但我注意到您的效率指導在本季度已降至 50% 的中間範圍。所以我想知道這是否主要是較高的 NII 前景與費用增長的函數。如果您還可以談論更高的 NII 前景是否正在改變您對特許經營的進一步投資的看法，以及您正在做些什麼來幫助發展和改善費用方面的客戶體驗，那將是非常好的。

Yes. So thank you, Kelly, for the questions. On the efficiency ratio, yes, we're modeling a mid -- mid-range 50s -- mid-50s range efficiency ratio driven by higher net interest income. We will continue to invest on technology and the digital efforts that we're doing and all that stuff that we've talked about in the other -- in the previous quarters. So that's kind of the impetus behind us guiding on a mid-50s efficiency ratio.

是的。所以，謝謝你，凱利，你的問題。關於效率比，是的，我們正在模擬一個由更高的淨利息收入驅動的 50 年代中期 - 50 年代中期的效率比。我們將繼續投資於我們正在做的技術和數字化工作，以及我們在前幾個季度談到的所有其他事情。這就是我們引導 50 年代中期效率比的動力。

We also saw on the expense side this quarter that we saw an increase due to business activity, primarily on the compliance side. We don't expect those expenses to be recurring. We do expect some of that expense to flow out, so we're going to be very focused on keeping our expenses in check as we continue to invest in our franchise. But again, efficiency ratio in the mid-50s.

我們還看到本季度的費用方面由於業務活動而有所增加，主要是在合規方面。我們預計這些費用不會經常發生。我們確實預計其中一些費用會流出，因此在我們繼續投資於我們的特許經營權時，我們將非常專注於控制我們的費用。但同樣，效率比在 50 年代中期。

Regarding net interest income, I think your question was addressed earlier and the answer basically is interest rates are driving higher net interest income. And certainly, as we grow the loan book, we will have a double benefit, right? We grow the volume and the balances and we improved because of the higher net interest income on the loan side as well as on the investment side and the cash. So we have the -- we are very well positioned for what the Fed is doing in the next several quarters in terms of interest rates. So that's kind of our outlook on the net interest income.

關於淨利息收入，我認為您的問題之前已經解決，答案基本上是利率正在推動更高的淨利息收入。當然，隨著我們增加貸款賬簿，我們將獲得雙重收益，對嗎？由於貸款方面以及投資方面和現金方面的淨利息收入較高，我們增加了交易量和余額並有所改善。所以我們有 - 我們非常適合美聯儲在未來幾個季度在利率方面所做的事情。這就是我們對淨利息收入的看法。

Did I miss any of your -- you mentioned about the customer experience, I think you did. So we -- yes, we launched this quarter 2 self-service kiosks, which is a part of our strategy to try to take out of the -- of our flagship branches the transactions that can be done on a self-service basis, either digitally, mobile. And we're providing these kiosks as a way for customers to take care of all their issues in a fast and efficient way. Also, that will provide more time and more better ability for our employees at the branches, at our flagship branches, to really learn what are the customer needs and be able to help them walk through their financial needs and resolve those issues. So we will be in a better position as we continue to transition our banking network in that direction. So we will continue to invest in our technology to get our strategic differentiation executed in place.

我想念你的任何一個 - 你提到了客戶體驗，我想你做到了。所以我們 - 是的，我們在本季度推出了第二個自助服務亭，這是我們試圖從我們的旗艦分行中移除可以在自助服務基礎上進行的交易的戰略的一部分，或者數字化、移動化。我們提供這些信息亭是為了讓客戶能夠快速有效地處理所有問題。此外，這將為我們分行和旗艦分行的員工提供更多時間和更好的能力，以真正了解客戶的需求，並能夠幫助他們解決財務需求並解決這些問題。因此，隨著我們繼續朝著這個方向轉變我們的銀行網絡，我們將處於更好的位置。因此，我們將繼續投資於我們的技術，以實現我們的戰略差異化。

Next, we have a follow-up with Timur Braziler with Wells Fargo.

接下來，我們對富國銀行的 Timur Braziler 進行了跟進。

Just two quick follow-ups. The dollar of U.S. participation loans, if you have that on hand?

只需兩個快速跟進。美國參與貸款的美元，如果你手頭有嗎？

I'm sorry, could you repeat the question?

對不起，你能重複一下這個問題嗎？

The dollar amount of participation loans on the mainland?

大陸參與貸款的金額是多少？

I said $600 million, split in 2. $130 million plus or minus on middle market loans and the difference in small commercial businesses.

我說的是 6 億美元，分為 2。1.3 億美元正負中間市場貸款和小型商業企業的差額。

And that's all participation? Or is participation just the chunk of it?

這就是所有的參與？還是參與只是其中的一部分？

Yes. These are all participations with key partners that we have.

是的。這些都是我們與主要合作夥伴的參與。

Okay. Understood. Just a modeling question, and I'm sorry if I missed this in the documents, but the number of shares repurchased this quarter?

好的。明白了。只是一個建模問題，如果我在文件中遺漏了這一點，我很抱歉，但是本季度回購的股票數量？

We'll disclose -- I don't have them with me, but we can disclose that. It's around 1.1 million shares or so. I don't have that specific number, but it's around there.

我們會披露——我沒有隨身攜帶，但我們可以披露。大約是110萬股左右。我沒有那個具體的數字，但它就在附近。

Next, we have Alex Twerdahl with Piper Sandler.

接下來，我們請來了 Alex Twerdahl 和 Piper Sandler。

Just a couple of follow-up questions. On the qualitative reserve release, the $4.9 million during the quarter, was that kind of because COVID went away? Or maybe just walk through sort of the inputs and outputs of that. And does that kind of take into account some of the negativity that economists are projecting for Mainland?

只是幾個後續問題。在定性儲備發布中，本季度的 490 萬美元是因為 COVID 消失了嗎？或者也許只是瀏覽一下它的輸入和輸出。這是否考慮到經濟學家對大陸的一些負面預測？

I'll let Maritza get an answer for that one.

我會讓 Maritza 得到一個答案。

The qualitative adjustment reduction that we disclosed and shared with you does not include the $1.7 million that we also disclosed on the economic model. The $1.7 million is excluded from that quality adjustment.

我們披露並與您分享的定性調整減少不包括我們也在經濟模型中披露的 170 萬美元。質量調整不包括 170 萬美元。

That qualitative adjustment is part of the modeling. We have had more better trends in recoveries, as we were saying in the mortgage portfolio, particularly in the PCD loan portfolio. Actually, on Page 19 of the presentation, you can see how this release of reserve, of this $4.9 million, you can see that PCD is about $3 million of that adjustment and the non-PCD is about $1.9 million. And it's because of the positive trends in the portfolios, in the deal delinquencies and in the charge-off.

這種定性調整是建模的一部分。正如我們在抵押貸款組合中所說，特別是在 PCD 貸款組合中，我們的複蘇趨勢更好。實際上，在演示文稿的第 19 頁上，您可以看到在這 490 萬美元的準備金釋放中，您可以看到 PCD 大約是調整後的 300 萬美元，而非 PCD 大約是 190 萬美元。這是因為投資組合、交易拖欠和沖銷方面的積極趨勢。

Okay. And then José, when you talk about the loan growth prospects for later in this year, can you maybe give us some color on line utilizations? And it seems like one of the commentary -- or one of the things I'm hearing from banks here is that the higher rates has kind of put some deals into sort of holding patterns. Are you kind of -- are you seeing that as well down there? Or is there less rate sensitivity just given that many customers have already been operating with higher interest rates just given the Puerto Rico economy and the characteristics of the loan yields down there?

好的。然後何塞，當你談到今年晚些時候的貸款增長前景時，你能給我們一些關於線上利用率的顏色嗎？似乎評論之一——或者我從銀行那裡聽到的一件事是，較高的利率已經使一些交易進入了某種持有模式。你是不是——你也看到那裡了嗎？還是僅僅考慮到波多黎各經濟和那裡的貸款收益率特徵，許多客戶已經以更高的利率運營，利率敏感性會降低嗎？

Line utilization, Alex, is -- has increased in the last couple of months. Yet to reach the levels pre-pandemic, but it has increased.

Alex 的線路利用率在過去幾個月中有所增加。尚未達到大流行前的水平，但已經增加。

In terms of the impact of interest rates on commercial loan originations, certainly, that has had some effect here and there's been some delays and postponement of some transactions that we might have booked for this quarter and maybe they never get booked. So yes, we're starting to see some of the interest rate effects on the loan origination on the commercial side.

就利率對商業貸款發放的影響而言，當然，這在這裡產生了一些影響，我們可能在本季度預訂的一些交易出現了一些延遲和推遲，也許它們永遠不會被預訂。所以是的，我們開始看到一些利率對商業方面貸款發放的影響。

But having said that, we still feel that we have a pretty good pipeline, and we will be able to achieve our goals for this year.

但是話雖如此，我們仍然覺得我們有一個很好的管道，我們將能夠實現我們今年的目標。

Okay. And then just a final follow-up. You mentioned some of the expenses, the compliance-related expenses being nonrecurring. Are you able to break that out for us and maybe explain what they were?

好的。然後只是最後的跟進。您提到了一些費用，與合規相關的費用是非經常性的。你能幫我們解釋一下，或者解釋一下它們是什麼嗎？

So as I said, business activity increased. It has increased for the last 4 quarters, 5, 6 quarters. And so we need to catch up and we need to do the things that we need to do to make sure that we are up to date with all the consumer compliance issues and also in preparation for CFPB. We are above $10 billion. We expect to remain above $10 billion. So those -- all those things are in place. It's part of running a bank.

正如我所說，商業活動增加了。在過去的 4 個季度、5 個、6 個季度，它都有所增加。因此，我們需要迎頭趕上，我們需要做我們需要做的事情，以確保我們及時了解所有消費者合規問題，並為 CFPB 做準備。我們超過 100 億美元。我們預計將保持在 100 億美元以上。所以那些 - 所有這些東西都到位了。這是經營銀行的一部分。

Okay. So when you say that they won't recur, it's not like there's a one item. It's kind of a little bit of catch-up, a little bit of planning for...

好的。因此，當您說它們不會復發時，並不是只有一個項目。有點追趕，有點計劃……

There is -- what I try to say when I said it's nonrecurring is that, yes, there is a catch-up here. And we don't expect that same level of expenses to be deployed into that item, particularly in the next several quarters. That doesn't mean it's eliminated to 0. It's just that it's -- the level is not recurring. The level, the amount of.

有——當我說它是非重複出現時，我想說的是，是的，這裡有一個追趕。而且我們預計不會將相同水平的費用部署到該項目中，尤其是在接下來的幾個季度中。這並不意味著它被淘汰為0。只是它——這個級別不會重複出現。水平，數量。

We have no further questions at this time. I would now like to turn the program back over to Mr. Fernández for any additional or closing remarks.

目前我們沒有其他問題。我現在想將該計劃轉回給 Fernández 先生，以獲取任何補充或結束語。

Thank you, operator, and thanks again to all our team members for their hard work and dedication. And thanks to all our stakeholders who have listened in. Looking forward to our next call at the end of the third quarter.

感謝運營商，再次感謝我們所有團隊成員的辛勤工作和奉獻精神。並感謝所有傾聽的利益相關者。期待我們在第三季度末的下一次電話會議。

Thank you, ladies and gentlemen. This concludes today's event. You may now disconnect.

謝謝你們，女士們，先生們。今天的活動到此結束。您現在可以斷開連接。