OFG Bancorp (OFG) 2023 Q4 法說會逐字稿

Good morning.

早安.

Thank you for joining OFG Bancorp's conference call.

感謝您參加 OFG Bancorp 的電話會議。

My name is Todd and I will be your operator today.

我叫托德，今天我將成為您的接線生。

Our speakers are Jose Rafael Fernandez, Chief Executive Officer, and Vice Chair of the Board of Directors and Maritza Arizmendi Diaz, Chief Financial Officer.

我們的演講者是執行長兼董事會副主席 Jose Rafael Fernandez 和財務長 Maritza Arizmendi Diaz。

A presentation accompanies today's remarks can be found on the homepage of the OFG website under the fourth quarter 2023 sections.

今天的發言附帶的簡報可以在 OFG 網站主頁的 2023 年第四季部分找到。

This call may feature certain forward-looking statements about management's goals, plans and expectations.

本次電話會議可能包含有關管理階層目標、計畫和期望的某些前瞻性陳述。

These statements are subject to risks and uncertainties outlined in the Risk Factors section of OSG's SEC filings.

這些陳述受到 OSG 向 SEC 備案的風險因素部分概述的風險和不確定性的影響。

Actual results may differ materially from those currently anticipated.

實際結果可能與目前預期有重大差異。

We disclaim any obligation to update information disclosed in this call as a result of developments that occur afterwards.

我們不承擔因事後發生的事態發展而更新本次電話會議中披露的資訊的義務。

All lines have been placed on mute to prevent any background noise.

所有線路均已靜音，以防止任何背景噪音。

After the speakers' remarks, there will be a question-and-answer session.

演講者發言後，將進行問答環節。

Instructions will be given at that time.

屆時將給予指示。

I would now like to turn the call over to Mr. Fernandez.

我現在想把電話轉給費南德斯先生。

Please go.

請離開。

Good morning and thank you for joining us.

早安，感謝您加入我們。

We are pleased to report our fourth quarter and year end results. 2023 was an outstanding year with record levels of loans, customer deposits, assets and stockholders' equity.

我們很高興地報告我們的第四季和年終業績。 2023 年是出色的一年，貸款、客戶存款、資產和股東權益均創歷史新高。

For the first time, commercial loan balances exceeded $3 billion and tangible common equity was more than $1 billion.

商業貸款餘額首次超過 30 億美元，有形普通股權益首次超過 10 億美元。

Our digital first strategy continues to empower existing customers and attract new ones. 93% of all new teen retail transactions and more for deposits now take place through self-service channels, enabling our teams to focus more on business development opportunities.

我們的數位優先策略持續為現有客戶提供支援並吸引新客戶。現在，93% 的青少年新零售交易以及更多的存款交易都是透過自助服務管道進行的，這使我們的團隊能夠更加專注於業務發展機會。

While consumer credit has begun to normalize post pandemic, consumer liquidity and employment levels continue to be solid.

儘管消費信貸在疫情後已開始正常化，但消費者流動性和就業水準仍然穩固。

Our commercial clients are doing very well in a strong economy.

我們的商業客戶在強勁的經濟中表現出色。

We are very proud of our accomplishments and thank the entire Oriental team for making this record year as possible.

我們對我們所取得的成就感到非常自豪，並感謝整個東方團隊讓這項創紀錄的一年成為可能。

Please turn to page 3 for a summary of our fourth quarter results.

請翻至第 3 頁，了解我們第四季的業績摘要。

Looking at the income statement, earnings per share diluted was $0.98. Total core revenues were $175.6 million and net interest margin was was 5.62%.

查看損益表，稀釋後每股收益為 0.98 美元。核心總收入為 1.756 億美元，淨利差為 5.62%。

Provision was $19.7 million primarily due to increased loan volume.

撥備金額為 1,970 萬美元，主要是因為貸款量增加。

Non-interest expenses were $94.1 million and pre-provision net revenue totaled $88.2 million.

非利息支出為 9,410 萬美元，撥備前淨收入總計 8,820 萬美元。

Quarterly performance included two items of note first was closing on the sale of nonperforming Puerto Rico small business loans.

季度業績包括兩項值得注意的項目，首先是波多黎各不良小型企業貸款的出售結束。

We mentioned a planned sale last quarter.

我們提到上個季度計劃出售。

This resulted in a $6.3 million pre-tax gain Secca was workforce early retirement and rightsizing.

這帶來了 630 萬美元的稅前收益 Secca 是勞動力提前退休和規模調整。

This resulted in a $3.2 million non-interest expense for severance and lease cancellations stemming from increased productivity in certain areas.

由於某些領域生產力的提高，導致遣散費和租賃取消產生 320 萬美元的非利息費用。

In part as a result of our technology investments.

部分原因是我們的技術投資。

Turning to the balance sheet, total assets increased to $11.3 billion from $10.3 billion last quarter.

轉向資產負債表，總資產從上季的 103 億美元增加到 113 億美元。

Customer deposits increased to $9.6 billion from $8.5 billion.

客戶存款從 85 億美元增加到 96 億美元。

This was due primarily to a $1.2 billion deposit of public funds in mid-December, giving us a total of $1.6 billion of government deposits.

這主要是由於 12 月中旬存入 12 億美元的公共資金，使我們的政府存款總額達到 16 億美元。

Loans held for investment totaled $7.5 billion, up 4% from the third quarter, with new loan production for loan origination of $664 million, up 17% from the third quarter.

持有的投資貸款總額為 75 億美元，較第三季成長 4%，用於發放貸款的新增貸款為 6.64 億美元，較第三季成長 17%。

Investments increased to $2.7 billion from $2.1 billion in the third quarter.

投資從第三季的 21 億美元增加到 27 億美元。

This was due to purchases of short-term treasury bills and long-term government mortgage-backed securities.

這是由於購買了短期國庫券和長期政府抵押貸款擔保證券。

Cash increased to $748 million from $533 million.

現金從 5.33 億美元增加到 7.48 億美元。

During the second half of 2023, we redeploy our higher-than-normal cash levels and maturing treasury positions into longer-term mortgage-backed securities.

2023 年下半年，我們將高於正常水準的現金水準和到期資金部位重新配置為長期抵押貸款擔保證券。

These moves position OFG balance sheet well for the expected lower interest rate environment in the second half of 2024.

這些舉措使 OFG 的資產負債表能夠很好地應對 2024 年下半年預期較低的利率環境。

Looking at capital, the CET1 ratio was 14.12% up from 14.06% in the third quarter.

從資本來看，CET1比率由第三季的14.06%上升至14.12%。

Please turn to page 4 for a summary of our 2023 results.

請翻至第 4 頁，了解我們 2023 年業績摘要。

Earnings per share diluted for the year was $3.83, up 11% year over year.

全年攤薄每股收益為 3.83 美元，較去年同期成長 11%。

Total core revenues were $683 million, up 12% year over year.

核心總收入為 6.83 億美元，較去年同期成長 12%。

Net interest margin was 5.8%.

淨利差為5.8%。

Provision was $60 million, noninterest expense ex six, so $363 million and pre-provision net revenue totaled $326 million and our capital actions in 2023 included increasing the quarterly dividend by 10% to $0.22 and completing $18.7 million of share buybacks.

撥備金額為6,000 萬美元，扣除6 美元的非利息費用，因此為3.63 億美元，撥備前淨收入總計3.26 億美元，我們2023 年的資本行動包括將季度股息增加10% 至0.22 美元，並完成1870 萬美元的股票回購。

We have approximately $70 million of remaining authorization.

我們還有大約 7000 萬美元的剩餘授權。

Please turn to page 5 for an update on our digital-first strategy.

請翻至第 5 頁，以了解我們數位優先策略的最新資訊。

As of December 93% of all retail customer transactions and 96% of retail deposit transactions are now being made through digital and self-service channels.

截至 12 月，93% 的零售客戶交易和 96% 的零售存款交易現在是透過數位和自助服務管道進行的。

That is being driven by year-over-year growth in December of 11% in digital enrollment, 54% in digital payments and 21% in virtual Telering utilization as well as the continued success of our Oriental servicing portal, which was introduced mid-2023.

這是由於 12 月數位註冊量同比增長 11%、數位支付量同比增長 54%、虛擬 Telering 使用量同比增長 21%，以及我們於 2023 年中推出的東方服務門戶的持續成功推動了這一增長。

Our new listeners the portal is a cornerstone of our self-service strategy.

我們的新聽眾入口網站是我們自助服務策略的基石。

Customers can manage all loans and deposit accounts.

客戶可以管理所有貸款和存款帳戶。

It enables them to originate on open checking and savings and CD, applying for and accessing loans, managing automatic loan payments and downloading bank letters and tax documents.

它使他們能夠發起開放式支票、儲蓄和存款證、申請和獲取貸款、管理自動貸款付款以及下載銀行信件和稅務文件。

We will continue to add new features on a regular basis.

我們將繼續定期添加新功能。

Our play -- '23 performance continues to validate our strategy and investments in technology.

我們的表現 - '23 的表現繼續驗證我們的策略和技術投資。

As I mentioned, they help us provide more value-added service, increase our efficiency and assign more staff for new business development activities.

正如我所提到的，它們幫助我們提供更多增值服務，提高效率，並為新業務開發活動分配更多員工。

Now I would like to welcome Maritza to the call to go over the financials in more detail.

現在，我歡迎 Maritza 參加電話會議，更詳細地了解財務狀況。

Thank you, Jose.

謝謝你，何塞。

Please turn to page 6 to review our financial highlights.

請翻至第 6 頁查看我們的財務摘要。

Starting with revenues total interest income was $176 million for $10 million from the third quarter.

從收入開始，第三季的總利息收入為 1,000 萬美元，為 1.76 億美元。

Key factors were as $7 million increase from loans, a $6 million increase from investment securities and a $2 million decline from cash.

關鍵因素是貸款增加 700 萬美元，投資證券增加 600 萬美元，現金減少 200 萬美元。

Now benefited from a higher average volumes and yields.

現在受惠於更高的平均產量和產量。

The same factors affected investment securities, mainly due to fixed rate higher yielding securities purchased late in both the third and fourth quarters.

同樣的因素影響了投資證券，主要是因為第三季和第四季末購買的固定利率較高收益證券。

Average cash balances declined as we put more funds to work in loan, and investment securities.

隨著我們將更多資金投入貸款和投資證券，平均現金餘額下降。

The net interest expense was $33 million, an increase of $9 million from the third quarter.

淨利息支出為3,300萬美元，較第三季增加900萬美元。

Key drivers were a $5 million increase due to a higher level of short-term wholesale funding and a $4 million increase due to higher average balances of core deposits at a higher rate.

主要驅動因素是由於短期批發融資水準較高而增加了 500 萬美元，以及由於核心存款平均餘額較高且利率較高而增加了 400 萬美元。

So that banking and financial service revenues were $32 million, up $2 million from the third quarter.

因此，銀行和金融服務收入為 3,200 萬美元，比第三季增加 200 萬美元。

Cost management revenues reflected online insurance commission recognition of $2.5 million.

成本管理收入反映線上保險佣金確認為 250 萬美元。

Bank service revenues increased due to higher levels of economic activity and mortgage banking revenues declined due to lower MSR valuations, reflecting the fall near term interest rates during the quarter.

由於經濟活動水平較高，銀行服務收入增加，而抵押貸款銀行收入由於 MSR 估值較低而下降，反映了本季近期利率的下降。

As a result of all these factors, total core revenues were $176 million, up $3 million from the third quarter.

由於所有這些因素，核心總收入為 1.76 億美元，比第三季增加 300 萬美元。

Our net interest income totaled $7 million, up $6 million from the third quarter.

我們的淨利息收入總計 700 萬美元，比第三季增加 600 萬美元。

This was due to the gain from the sale of non-performing Puerto Rico small business loans.

這是由於出售波多黎各不良小企業貸款所獲得的收益。

Looking at noninterest expenses, they totaled $94 million, up $4 million from the third quarter, the efficiency ratio was 53.59%, up slightly from the third quarter.

從非利息支出來看，總計9,400萬美元，較第三季增加400萬美元，效率率為53.59%，較第三季略有上升。

Most of the difference between the third and the fourth quarter was the cost of work force early retirement and facilities rightsizing.

第三季和第四季之間的大部分差異是勞動力提前退休和設施規模調整的成本。

We plan to use the resultant savings to continue to invest in technology, which will enable us to continue to average about $90 million to $92 million of non-interest expense per quarter in 2024, with efficiency ratios continuing in the low to mid 50% range.

我們計劃利用由此節省的資金繼續投資於技術，這將使我們能夠在 2024 年繼續實現每季平均約 9,000 萬至 9,200 萬美元的非利息支出，效率比率繼續保持在 50% 的中低範圍內。

Our entitlement metrics remain high.

我們的權利指標仍然很高。

Return on average assets was 1.76%, the same as in the third quarter.

平均資產報酬率為1.76%，與第三季持平。

Retail, our tangible common equity was 18.22%, a nice increase from the third quarter tangible book value per share was $23.13 up more than $2 from the third quarter.

零售方面，我們的有形普通股權益為 18.22%，較第三季的有形帳面價值大幅成長，每股有形帳面價值為 23.13 美元，較第三季增加超過 2 美元。

Tangible equity benefited from the increase in both retained earnings and AOCI.

有形權益受益於留存收益和 AOCI 的增加。

Please turn to page 7 to review our operational highlights.

請翻至第 7 頁查看我們的營運亮點。

Average loan balances were $7.4 billion, an increase of 3% from the third quarter, end of period balances was about the same, December 31 balances reflected sequential growth of 9% in Puerto Rico commercial loans, 7% in US commercial loans, 3% in auto loans and 1% in consumer loans.

平均貸款餘額為 74 億美元，較第三季度增長 3%，期末餘額大致相同，12 月 31 日餘額反映波多黎各商業貸款環比增長 9%，美國商業貸款環比增長 7%，環比增長 3%汽車貸款和消費貸款為1%。

Presidential mortgage loans declined 3% reflected continued regular paydowns and the securitization and sale of conforming loans.

總統抵押貸款下降 3%，反映出持續的定期還款以及合格貸款的證券化和出售。

Loan yield was 7.96%, up 12 basis points from the third quarter.

貸款收益率為7.96%，較三季上升12個基點。

This reflected increases from variable rate commercial loans, higher entry yields on new loans and a smaller proportion of residential mortgages in the loan book.

這反映了可變利率商業貸款的成長、新貸款的入門收益率的提高以及貸款帳簿中住宅抵押貸款比例的下降。

Average core deposits were $8.7 billion, an increase of 1% from the third quarter end of period balances were $9.6 billion, an increase of 12% from September 30, this reflected the $1.2 billion deposit of public funds in mid-December.

平均核心存款為87億美元，較第三季期末餘額96億美元成長1%，較9月30日成長12%，這反映了12月中旬公共資金存款12億美元。

Core deposit cost was 107 basis points compared to 90 basis points in the third quarter.

核心存款成本為 107 個基點，而第三季為 90 個基點。

This increase mainly relates to 30 basis points due to higher rates on government deposits and 20 basis points in time deposits, as of the fourth quarter, our cumulative beta was 27% for interest-bearing deposits and only 19% for total deposits.

此成長主要與政府存款利率上升30個基點及定期存款20個基點有關，截至第四季度，我們的計息存款累計貝塔值為27%，存款總額僅19%。

Excluding government deposits, it was 15%, average borrowings and brokered deposits were $602 million compared to $266 million in the third quarter.

不包括政府存款，這一數字為 15%，平均借款和經紀存款為 6.02 億美元，而第三季為 2.66 億美元。

The December 31, balance fell to $363 million.

截至12月31日，餘額降至3.63億美元。

The rate paid on these wholesale funding increased 54 basis points to 5.21% in the fourth quarter, the interim quarterly increase in wholesale funding balances reflected asset and liability management strategies that involve a short-term need for increased liquidity.

第四季批發融資利率增加了 54 個基點，達到 5.21%，批發融資餘額的中期季度增長反映了涉及增加流動性的短期需求的資產和負債管理策略。

Most of December 31, broker deposit balance of $162 million will mature early in the current first quarter, we expect to use excess deposits to reduce wholesale funding.

截至12月31日，經紀商存款餘額1.62億美元將在當前第一季提前到期，我們預計將利用超額存款來減少批發資金。

Net interest margin was 5.62%.

淨利差為5.62%。

That compares to 5.80% in the third quarter, assuming some catch-up in deposit costs as well as some potential rig costs, we believe meaningful easy about 20 basis points over the course of 2024.

相較之下，第三季為 5.80%，假設存款成本以及一些潛在的鑽機成本增加，我們認為 2024 年將輕鬆實現約 20 個基點的有意義的成長。

Please turn to page 8 to review our credit quality and capital strength.

請翻至第8頁查看我們的信用品質和資本實力。

Net charge-offs totaled $16 million, down $3 million from the third quarter the net charge-off rate was 88 basis points, down 70 basis points from the third quarter.

淨核銷總額為1,600萬美元，較第三季下降300萬美元；淨核銷率為88個基點，較第三季下降70個基點。

The first quarter reflected net charge-off rate declines in residential mortgages due to recoveries and an improvement in commercial loans due to the absence of a $7 million charge-off in the third quarter related to US loans, included in the fourth quarter net charge-off rate way were increases in auto and consumer loans, mainly due to a higher level of delinquencies.

第一季反映了住宅抵押貸款的淨沖銷率下降，原因是回收率下降，以及商業貸款的改善，因為第三季度沒有與美國貸款相關的700 萬美元沖銷，包括在第四季度的淨沖銷中。汽車和消費貸款增加，主要是由於拖欠率上升。

Looking at our metrics, provision for credit losses totaled $20 million, most of which relates to increased volume, first quarter early and total delinquency rates were in line with the third quarter at 2.76% and 3.76%, respectively.

從我們的指標來看，信貸損失撥備總額為 2,000 萬美元，其中大部分與交易量增加有關，第一季提前拖欠率和總拖欠率與第三季一致，分別為 2.76% 和 3.76%。

The nonperforming loan rate of 1.22% was the lowest of the last five quarters.

不良貸款率為1.22%，為近五個季度最低。

Collateralized credit continues to be good.

抵押信貸繼續良好。

With COVID stimulus fading away.

隨著新冠疫情的刺激逐漸消失。

We expect increased net charge-offs in our auto and consumer but will increase employment and a growing part of the forecast on net charge-off and delinquency should be lower than pre-pandemic levels.

我們預計汽車和消費者的淨沖銷將增加，但會增加就業，並且越來越多的淨沖銷和拖欠率預測應低於疫情前的水平。

Looking at some of our capital metrics.

看看我們的一些資本指標。

Total stockholders' equity was $1.2 billion and tangible common equity ratio was 9.68%.

股東權益總額為 12 億美元，有形普通股權益比率為 9.68%。

To sum up, during the fourth quarter, we saw revenue growth continued to benefit from higher yields and higher balances of both loan and securities growth.

總而言之，在第四季度，我們看到收入成長繼續受益於較高的收益率以及貸款和證券成長的餘額增加。

Loan origination driven by commercial retail, auto and consumer lending, increased our deposit costs mainly higher, but bigger has continued to remain well below peers, significantly higher end of period core deposits, higher short term wholesale funding, credit condition normalization and core non-interest expense in line with our expected range.

商業零售、汽車和消費貸款推動的貸款發放，主要增加了我們的存款成本，但規模繼續遠低於同業，期末核心存款顯著增加，短期批發融資增加，信貸狀況正常化和核心非利息支出符合我們的預期範圍。

That includes continued investment in our Digital First strategy.

這包括對我們的數位優先策略的持續投資。

Now, here's process.

現在，這是過程。

Thank you Maritza, please turn to page 9.

謝謝 Maritza，請翻到第 9 頁。

Our outlook remains positive for both Puerto Rico and OFG.

我們對波多黎各和 OFG 的前景仍然樂觀。

The flow of federal funds to rebuild the island's infrastructure continues.

用於重建該島基礎設施的聯邦資金仍在繼續流動。

Local businesses are expanding, the consumer is doing well.

當地企業正在擴張，消費者表現良好。

Private Capital continues to make investments in the island.

私人資本繼續在島上投資。

We still have to watch out for all the big uncertainties, interest rate changes, inflation, possible mainland recession as well as the ongoing global content.

我們仍需留意所有重大不確定因素，包括利率變化、通膨、大陸可能出現的經濟衰退以及持續的全球內容。

While we remain optimistic about Puerto Rico and look forward to continued economic and business growth as well as strong levels of employment.

我們對波多黎各仍然持樂觀態度，並期待其經濟和商業持續成長以及強勁的就業水平。

Turning to OFG, 2023 results were driven by loan growth, good credit quality, a higher interest rate environment and low deposit beta.

至於 OFG，2023 年的業績是由貸款成長、良好的信貸品質、較高的利率環境和較低的存款貝塔值所推動的。

We saw strong traction with digital adoption and client acquisition as Oriental self-service portal and other innovations are helping to build our businesses.

我們看到了數位化採用和客戶獲取的強大吸引力，因為東方自助服務入口網站和其他創新正在幫助我們建立業務。

As a result, we had a record year in earnings.

結果，我們的收入創下了歷史新高。

As I mentioned earlier, assets, loans, customer deposits and stockholders' equity ended the year, a new highs.

正如我前面提到的，資產、貸款、客戶存款和股東權益在年末均創出新高。

Overall, our strategies have proven highly effective.

總體而言，我們的策略已被證明非常有效。

Looking ahead we are starting 2024 with strong momentum, excellent strategic positioning and a significantly larger balance sheet for both loans and investments.

展望未來，我們將以強勁的勢頭、卓越的策略定位以及顯著擴大的貸款和投資資產負債表進入 2024 年。

With this as a starting point, we anticipate continued loan and client growth.

以此為起點，我們預期貸款和客戶將持續成長。

This will be partially off-set by net interest margin easing over the course of the year due to expected lower interest rates by the fed -- and by higher provisions as consumer credit continues to normalize.

這將被今年因聯準會降息預期而導致的淨利差放鬆以及消費者信貸繼續正常化而增加的準備金所部分抵消。

As Maritza mentioned, we plan to continue to invest in and deploying more customer friendly technology.

正如 Maritza 所提到的，我們計劃繼續投資和部署更多客戶友善的技術。

All in all, we look forward to a strong year in 2024.

總而言之，我們期待 2024 年表現強勁。

In closing, I want to emphasize that our results could not have been achieved without the hard work and dedication of all our team members.

最後，我想強調，我們所取得的成績離不開所有團隊成員的努力和奉獻。

We are thankful to them, and we're excited for what's to come in 2024 as we marked our 60 years in business on our 30-year trading on the New York Stock Exchange.

我們感謝他們，並對 2024 年即將發生的事情感到興奮，因為我們在紐約證券交易所上市 30 週年，紀念我們的 60 週年業務。

With this, we end our formal presentation.

至此，我們的正式演講就結束了。

Operator, please open up the call for the Q&A.

接線員，請打開電話問答。

Thank you.

謝謝。

(Operator instructions)

（操作員說明）

Alexander Twerdahl, Piper Sandler.

亞歷山大·特維爾達爾，派珀·桑德勒。

Good morning.

早安.

Good morning, Alex.

早安，亞歷克斯。

First off Jose, hoping you could give us a little bit more color on the $1.2 billion covered government deposit where it came from and whether or not it's on something that's going to stick around on your balance sheet for a prolonged period of time?

首先，何塞，希望您能給我們更多關於 12 億美元擔保政府存款的信息，以及它是否會長期留在您的資產負債表上？

Yeah.

是的。

So it's a long-standing client of ours and they had a onetime inflow of liquidity.

所以這是我們的長期客戶，他們有一次性的流動性流入。

And certainly we we're honored to be their bank.

當然，我們很榮幸成為他們的銀行。

So again, a at this point, we don't have full visibility on the uses of the funds.

再說一遍，目前我們還無法完全了解資金的用途。

So for now, we're modeling and within our balance sheet as a short-term deposit.

因此，目前我們正在將其建模為短期存款，並將其納入資產負債表中。

But in the meantime, we are again servicing a long-standing customer that we have a full banking relationship with them.

但同時，我們再次為長期客戶提供服務，我們與他們建立了全面的銀行業務關係。

We will definitely update you guys as we get more call from the customer.

當我們接到更多客戶的電話時，我們一定會向大家通報最新情況。

But I would say it's going to take a couple of more weeks for us to figure it out.

但我想說我們還需要幾週的時間才能弄清楚。

Okay.

好的。

So I mean, I guess when you're thinking about the NIM guidance, I think the 20 basis points of NIM compression throughout the year.

所以我的意思是，我想當你考慮 NIM 指導時，我會想到全年 NIM 壓縮 20 個基點。

Should we just assume that on the balance sheet, excluding that $1.2 billion.

我們是否應該假設資產負債表上不包括那 12 億美元？

Well, it assumes the basis scenario also worth mentioning that it will be in for a short-term period.

嗯，它假設基本情境也值得一提，它將在短期內出現。

Yeah.

是的。

So, it excludes that one-time that the positive mix in our modeling excludes that deposit for the better part of 2024.

因此，它排除了我們模型中的積極組合一次性排除了 2024 年大部分時間的存款。

Okay.

好的。

And is that is that government deposits just sitting in a non-interest bearing now?

那是不是政府存款現在只是無息狀態？

Or is it something that's going to impact interest income expenses in the first quarter.

或者這是否會影響第一季的利息收入支出。

So it's a government deposits, and that is indexed based as on government deposits are these days.

所以這是政府存款，而且是根據現在的政府存款進行指數化的。

So it's earning interest, right now on based on the formula that the government has established.

因此，它現在正在根據政府制定的公式賺取利息。

Understood.

明白了。

And then I guess as I think about the size of the balance sheet, you guys are obviously over $10 billion.

然後我想，當我考慮資產負債表的規模時，你們的資產顯然超過了 100 億美元。

Now it's something you projected something we expected, and your capital levels are building to a level where, it suggests that you could have a much larger balance sheet than where you are today.

現在你預測了我們的預期，你的資本水平正在建立到一個水平，這表明你的資產負債表可能比現在大得多。

How are you thinking about just overall managing the balance sheet over the next, I guess, year or coming years?

您如何考慮在未來一年或未來幾年全面管理資產負債表？

And you are just a strategy shift at all now that you're firmly above the $10 billion mark.

既然你已經堅定地突破了 100 億美元大關，那麼你只是戰略上的轉變。

So our game plan remains pretty much the same.

所以我們的遊戲計劃幾乎保持不變。

We see great opportunities for us to continue to grow our loan book here in Puerto Rico and somewhat in the States, too, but mostly here in Puerto Rico.

我們看到了繼續擴大波多黎各貸款規模的巨大機會，在美國也有一定程度的成長，但主要是在波多黎各。

We are seeing a good economic environment that supports us in that effort and that's the game plan that we have.

我們看到良好的經濟環境支持我們的努力，這就是我們的遊戲計劃。

We are basically now with good liquidity levels, a excess deposits, and we want to deploy them first and foremost into a into the jurisdictions and the locations that we operate in, primarily here in Puerto Rico.

我們現在基本上擁有良好的流動性水準和超額存款，我們希望首先將它們部署到我們經營的司法管轄區和地點，主要是在波多黎各。

So that's kind of how we're seeing it, Alex, if we're not really planning or having any extraordinary event on the on the agenda for us.

這就是我們的看法，亞歷克斯，如果我們沒有真正計劃或在議程上安排任何非凡的活動。

We just simply need to keep on going forward.

我們只需要繼續前進。

And just to go back to the question on the deposit on the government deposit I just wanted to I mentioned to you that really it's providing us.

回到關於政府存款的問題，我只想向你們提到，它確實為我們提供了服務。

I think that gives us flexibility on our balance sheet because one last night I mentioned in her remarks, you will.

我認為這給了我們資產負債表上的靈活性，因為昨晚我在她的演講中提到，你會的。

And we have kind of canceled or less mature some of the wholesale funding that we that we took in the November, December months.

我們已經取消了或不太成熟的一些批發資金，我們在 11 月和 12 月獲得了這些資金。

So that cost of that and there's a differential that also benefits a slight differential, but it probably benefits us.

因此，成本和差異也會帶來輕微的差異，但這可能對我們有利。

So it's also short term, something that it's going to help us to be more flexible and nimbler with our balance sheet.

所以這也是短期的，它將幫助我們的資產負債表變得更靈活和靈活。

Got it.

知道了。

And then just final question for me.

然後是我的最後一個問題。

Just on the workforce rightsizing and some of the actions.

只是關於勞動力規模調整和一些行動。

Can you just tell us what you did come out and I guess what the impact is.

您能告訴我們您做了什麼嗎？我猜它的影響是什麼？

Yeah.

是的。

So first, it starts with we've been investing in our Digital First strategy for several years.

首先，我們多年來一直在投資數位優先策略。

You've seen the investments and part of the art in theses and hypotheses for us is we're investing in technology to improve the customer experience and also to generate and incrementally start generating some efficiencies.

您已經看到了論文和假設中的投資和部分藝術，我們正在投資技術來改善客戶體驗，並產生並逐步開始產生一些效率。

So some of some of what you're seeing in the fourth quarter is our pointed effort towards starting to extract some efficiencies with the intention of using those efficiencies, as the way we invest forward in technology and on our Digital First strategy, as we've talked about.

因此，您在第四季度看到的一些內容是我們有針對性地努力開始提高一些效率，並打算利用這些效率，作為我們向前投資技術和數位優先策略的方式，因為我們「我們談過。

So we've seen some on some from a workforce reduction in some of the areas that have a it has been invested mostly and some of it is on branches, but mostly on the operational side.

因此，我們看到一些領域的勞動力減少，其中大部分投資在分支機構，但主要是在營運方面。

And we're also seeing how we can be more nimble in terms of our facilities and we were able to cancel and terminate one of the leases that we had.

我們也看到如何在設施方面更加靈活，並且我們能夠取消和終止我們擁有的一項租約。

So again, it's all it's all about how do we take advantage of the investments that we made to get the second part of the of the of the thesis that we presented to you guys several years ago, which is starting to get some efficiencies out of the investments, too.

再說一次，這一切都是關於我們如何利用我們所做的投資來獲得我們幾年前向你們展示的論文的第二部分，這已經開始提高一些效率投資也是如此。

So we're being very intentional with that, and that's why we can keep the expenses at the 90, 92 kind of our quarterly level, as Maritza mentioned.

因此，我們對此非常有意識，這就是為什麼我們可以將支出保持在 90、92 季度水平，正如 Maritza 所提到的。

I mean, is the presumption then going forward that as the digital strategy continues to play out through the next year, that maybe there will be further right-sizing or some further efficiencies found?

我的意思是，接下來的假設是，隨著數位策略在明年繼續發揮作用，也許會進一步調整規模或進一步提高效率？

I guess sort of into next year?

我想大概是明年吧？

It's for me too early to tell, Alex, a really, I mean, this is something really that we look very closely and we will look at it on a quarterly quarter to quarter basis to see what opportunities surface.

對我來說，現在說還為時過早，亞歷克斯，真的，我的意思是，這確實是我們非常仔細觀察的事情，我們將逐季度地觀察它，看看會出現什麼機會。

But we are certainly looking at it.

但我們確實正在關注它。

I can't promise anything though.

但我不能承諾任何事。

Thanks for taking my questions.

感謝您回答我的問題。

Yes, thank you for your call.

是的，謝謝您的來電。

Brett Rabatin, Hovde Group.

布雷特·拉巴廷 (Brett Rabatin)，Hovde 集團。

Hey, good morning.

嗨，早安。

Good morning.

早安.

Wanted to just wanted to start with credit and we've seen I see obviously, credit continues to be pretty good.

我只是想從信貸開始，我們已經看到，我顯然看到，信貸仍然非常好。

But we are seeing this as I guess everyone kind of expected a normalization on consumer and auto.

但我們看到這一點是因為我猜每個人都期望消費者和汽車正常化。

And I missed versus comment on the 4Q trend versus going forward?

我錯過了對第四季趨勢和未來趨勢的評論嗎？

And that normalization was the comment that net charge-offs would be lower going forward relative to 4Q?

這種正常化是指未來淨沖銷將低於第四季？

Or can you maybe just give us some color on your expectations for charge-offs in the consumer and auto book?

或者您能否給我們一些關於您對消費者和汽車帳簿沖銷的期望的資訊？

thanks.

謝謝。

So when you're referring to the charges, you're obviously alluding to the consumer and auto A. charge-offs that Maritza mentioned in the remarks, and this is the way I look at it from a macro perspective, a breadth of the economy in Puerto Rico is solid.

因此，當你提到這些費用時，你顯然是指 Maritza 在評論中提到的消費者和汽車沖銷，這就是我從宏觀角度看待它的方式，廣泛的波多黎各的經濟穩健。

It's doing well, but the consumer has much more liquidity than they had pre-pandemic.

它的表現不錯，但消費者的流動性比疫情前多得多。

The economy is in much better than it was pre-pandemic also.

經濟也比大流行前好得多。

So that's kind of the underlying environment that we're operating in, to give you a little bit more color on specifically on the auto a loan book.

這就是我們正在運作的基本環境，讓您對汽車貸款簿有更多的了解。

I'll ask our Chief Risk Officer, César Ortiz to a to give you a little bit of color on the order book.

我會請我們的首席風險官 César Ortiz 為您提供有關訂單簿的一些資訊。

So you guys understand how we see this.

所以你們明白我們是如何看待這一點的。

Thank you, Jose.

謝謝你，何塞。

The -- one other things that I wanted to highlight in terms of context, taking the opportunity during 2022 and '23 of the increased demand in loans in auto loans, we took the opportunity to improve and tighten our underwriting standards.

我想在背景方面強調的另一件事是，利用 2022 年和 23 年汽車貸款貸款需求增加的機會，我們藉此機會改進和收緊了我們的承保標準。

So if you look at the portfolio composition in terms of prime from position as of December 2023, we have an 82% prime composition compared to 64%, price competition during back in fouth quarter of 2019.

因此，如果您從截至 2023 年 12 月的主要部位來看投資組合構成，我們的主要構成為 82%，而 2019 年第四季的價格競爭為 64%。

So that basically is giving us comfort that our levels of returning to normalcy will be better than pre-pandemic levels.

因此，這基本上讓我們感到安慰，我們恢復正常的水平將比疫情前的水平更好。

And, Brett, to your point about the charges, we expect them to increase slightly or level off around sometime mid-year as we continue to see the tighter credit standards that we put in 2022 and 2023, potentially generating lower levels of charges-offs.

而且，布雷特，就您對費用的觀點而言，我們預計這些費用將在年中某個時候略有增加或趨於平穩，因為我們繼續看到我們在2022 年和2023 年制定的更嚴格的信貸標準，可能會產生較低的沖銷。

For the next several quarters, we expect charges-offs on the auto book similar to the fourth quarter as we start to normalize, but still better than pre-pandemic levels.

在接下來的幾個季度中，隨著我們開始正常化，我們預計汽車帳簿的沖銷將與第四季度類似，但仍優於疫情前的水平。

Okay.

好的。

That's helpful.

這很有幫助。

And then on loan growth, obviously strong production on the commercial side.

然後在貸款成長方面，商業方面的生產明顯強勁。

Can you talk maybe a little bit about how you expect loan growth to play out this year was obviously on we don't expect double digit growth in Puerto Rico every year, but you obviously hit that 10% mark in '23.

您能談談您對今年貸款成長的預期嗎？顯然，我們預計波多黎各每年不會出現兩位數的成長，但您顯然在 23 年達到了 10% 的水平。

And what do you what do you think about the commercial production going forward Jose, and then maybe just loan growth for the year.

您對何塞未來的商業生產有何看法，然後可能只是今年的貸款成長。

First, thank you for a highlighting the fact that it's hard to replicate 10% loan growth every year.

首先，感謝您強調每年 10% 的貸款成長很難複製這一事實。

So I appreciate I appreciate that bond that you're throwing at us.

所以我很感激你帶給我們的這種紐帶。

But the way we see this is we see auto loan originations normalizing and trending slightly lower.

但我們看到的是，汽車貸款發放正在正常化，並且呈現小幅下降的趨勢。

Consumer probably relatively flat in terms of loan originations, and we see a good opportunity on the commercial side, small, mid-size, and larger type of loan opportunities here in Puerto Rico, we see and good strong pipelines.

消費者在貸款發放方面可能相對平穩，我們在商業方面看到了很好的機會，在波多黎各，小型、中型和大型類型的貸款機會，我們看到了良好的強大管道。

We still see strong, good demand.

我們仍然看到強勁、良好的需求。

We see private capital being deployed in the economy in Puerto Rico and the and that's kind of a an area of opportunity for us as it was in 2023.

我們看到私人資本被部署到波多黎各的經濟中，這對我們來說是一個機會領域，就像 2023 年一樣。

So that's kind of how we're looking at this in terms of loan growth, if the economy grows 2%, 2.5%, at least as it has been a predicted a we expect to grow between 3% and 4% of our loan book.

這就是我們對貸款成長的看法，如果經濟成長 2%、2.5%，至少按照預測，我們預計貸款總額將成長 3% 到 4% 。

No note that we expect residential mortgage book to go down still during the year as we're seeing less and less demand for us in that in that line of business.

值得注意的是，我們預計今年住宅抵押貸款帳簿仍將下降，因為我們看到該業務領域對我們的需求越來越少。

Okay.

好的。

And other buckets like no one else on.

還有其他獨一無二的桶子。

Yes.

是的。

And as we sell some of those conforming loans.

當我們出售一些合格貸款時。

I'm sorry, okay sorry if I could sneak in one last one.

對不起，好吧，對不起，如果我能偷偷溜進最後一張。

Just around fee income.

就在手續費收入左右。

Obviously the Wealth Management life insurance bucket benefited from some I guess you call it unusual numbers in 4Q.

顯然，財富管理人壽保險受益於第四季度的一些不尋常的數字，我猜你稱之為不尋常的數字。

Is it fair to assume, but those line items go back a little lower, maybe unique outlook on fee income relative to the fourth quarter?

假設公平嗎，但這些項目回落得稍微低一些，也許相對於第四季的費用收入有獨特的前景？

Yeah, I remember, fourth quarter is impacted by the insurance contingent commissions that we get every year.

是的，我記得，第四季受到我們每年獲得的保險意外佣金的影響。

So yes, I think it will trend back down to the more normal level of $30 million around

所以是的，我認為它會回落到 3000 萬美元左右的更正常水平

$30 million.

3000萬美元。

Of funding I mentioned a quarter.

關於資金，我提到了四分之一。

Okay, great.

好的，太好了。

Thanks for all the color.

感謝所有的顏色。

Yes, thank you, Brett.

是的，謝謝你，布雷特。

Have a great day.

祝你有美好的一天。

(Operator instructions) Kelly Motta, KBW.

（操作員說明）Kelly Motta，KBW。

Hi Good morning.

早安.

Thank you so much for the question, -- maybe piggy backing of the loan growth question high up Q4 I know the MetroPCS field closed.

非常感謝您提出這個問題，--也許是第四季度貸款成長問題的支持，我知道 MetroPCS 領域已經關閉。

I was hoping you could share about, how much that contributed to your loan growth disorder as well as if you could offer any additional color on, how the pricing of that compare to normal commercial originations

我希望您能分享一下，這對您的貸款增長障礙有多大影響，以及您是否可以提供任何額外的信息，其定價與正常商業起源相比如何

(technical difficulty)

（技術難度）

So thank you for your question, Kelly on.

謝謝你的提問，凱利。

So we grew from the third quarter to the fourth quarter.

所以我們從第三季到第四季都有成長。

We grew commercial Puerto Rico commercial loans by around $196 million.

我們為波多黎各商業貸款增加了約 1.96 億美元。

We did participate on the Metro PCS privatization, the highway privatization with a $75 million participation.

我們確實參與了 Metro PCS 私有化和高速公路私有化，參與金額為 7500 萬美元。

So excluding that, we grew our commercial book by approximately $121 million.

因此，排除這一點，我們的商業帳簿增加了約 1.21 億美元。

So Ex-MetroPCS does use, do you still are seeing a 5.6% a growth from third to fourth quarter?

那麼 Ex-MetroPCS 確實使用了，從第三季度到第四季度，您是否仍然看到 5.6% 的成長？

So again, most of that origination ex-Metropistas is coming from Construction Services is coming from hospitality.

再說一次，前都會主義者的來源大多來自建築服務業，而來自旅館業。

It's coming from small and mid-size manufacturing companies that we do business with.

它來自與我們有業務往來的中小型製造公司。

And I think we also are looking into and the small business side of the of the business is doing a great job, but generating good, a professional kind of offices, medical and the like a type of office financing and equipment.

我認為我們也在研究小型企業方面做得很好，但產生了良好的、專業的辦公室、醫療等辦公室融資和設備。

So we are doing a pretty good job on the Puerto Rico commercial book.

所以我們在波多黎各商業書籍方面做得非常好。

And we think that the pipeline that we have and the approach that we have is paying off in terms of the MetroPCS loan rate and how does it compare to two other larger loans is pretty similar now, maybe slightly lower by 25, 30 basis points, but it's not nothing too dissimilar from other from other large loans.

我們認為，我們擁有的管道和方法在 MetroPCS 貸款利率方面正在獲得回報，而且它與其他兩項較大貸款相比現在非常相似，可能略低 25、30 個基點，但這與其他大筆貸款並沒有什麼不同。

But that again, that's as we've said in the past, we do not rely on those type of transactions.

但同樣，正如我們過去所說，我們不依賴此類交易。

We really are focused on the our bread-and-butter, which is small and mid-size commercial loans.

我們真正關注的是我們的生計，即中小型商業貸款。

And that and both teams, the small business team and their large commercial team are doing a great job.

這兩個團隊，小型企業團隊和大型商業團隊都做得很好。

That's really, really helpful.

這真的非常非常有幫助。

Thank you for that.

謝謝你。

And maybe just getting some clarification around the margin guidance.

也許只是對保證金指導進行一些澄清。

I appreciate the outlook for about 20 basis compression.

我對大約 20 個基差壓縮的前景表示讚賞。

Just wondering what your assumptions embedded in there are for rate this year.

只是想知道您對今年利率的假設是什麼。

And can you just remind us any index or floating rate on either side of the balance sheet, how we should be kind of thinking about that, when the fed starts cuts?

您能否提醒我們資產負債表兩側的任何指數或浮動利率，當聯準會開始降息時，我們該如何思考？

I'll give you my highlights high level, and I'll let Maritza give you more specifics per.

我將向您介紹我的高水平亮點，並讓 Maritza 為您提供更多細節。

But the way we look at the interest rate environment currently for 2024 is for the second half of the year.

但我們目前對 2024 年利率環境的看法是針對下半年的。

We will start seeing some of the fed start seeing the fed taking some action and reducing rates three to four, a 25 basis point cuts.

我們將開始看到一些聯準會開始採取一些行動並將利率降低三到四倍，即降息25個基點。

So that's how we're modeling our net interest margin from a macro interest rate perspective, I'll let Mike talk to you about the underpinnings of coming out of the margin?

這就是我們從宏觀利率角度對淨利差進行建模的方式，我會讓麥克和你談談擺脫利潤的基礎？

Thank you, Kelly, for your question.

謝謝凱利的提問。

Yes, the balance sheet composition right now in the in the asset side, and this is something we have shared with you before is the fact that in the commercial book we have about half of our commercial loan book is variable rate.

是的，目前資產方面的資產負債表構成，這是我們先前與您分享的事實，在商業帳簿中，我們大約有一半的商業貸款帳簿是可變利率。

So we have exposure at one as rates start to go down.

因此，隨著利率開始下降，我們的風險敞口為一。

And the other by the ability that we have is the maturity of the short-term treasuries.

另一個是我們擁有的能力，就是短期國債的成熟度。

There were two in the first quarter of $300 million in short-term treasuries on us and along their positions that we had them will mature in May 2024 is $200 million in loans and $200 million in treasury notes.

第一季我們持有兩筆 3 億美元的短期國債，我們持有的將於 2024 年 5 月到期的部位包括 2 億美元的貸款和 2 億美元的國債。

So that will reprice at current levels so that the viability on the on the asset side, but what we have been doing during the last two quarters is adding an extension in the asset side of higher yielding with the acquisition of $700 million MBAS.

因此，這將在當前水準上重新定價，以便資產方面的生存能力，但我們在過去兩個季度中一直在做的是透過收購 7 億美元的 MBAS 來增加資產方面的更高收益的擴展。

And the idea is to continue finance that are variable rate deposits and the structure of the government deposits that will reach me adding to the balance sheet have that structure.

我們的想法是繼續以浮動利率存款和政府存款的結構進行融資，這些存款將添加到資產負債表中，具有這種結構。

So we will we are adding variability into the liability side to position ourselves to a lower rate environment when it starts coming.

因此，我們將在負債方面增加可變性，以便在利率開始出現時將自己置於較低的利率環境中。

Awesome.

驚人的。

Thanks so much for the help maybe kind of last multi-part question for me is on correct just $10 billion in asset size, can you one remind us the timing and impact of the Durbin.

非常感謝您的幫助，也許對我來說最後一個由多部分組成的問題是正確的 100 億美元資產規模，您能否提醒我們杜賓事件的時機和影響。

I know you covered it on previous calls, just wanted confirm and get an update maybe

我知道您在之前的電話中提到了這一點，只是想確認並獲取更新

--

--

It should be in July and we start triggering via the Durbin effect.

應該是在七月，我們開始透過杜賓效應觸發。

So it's going to have a half a year impact and the full impact will be seen on 2025.

因此，它將產生半年的影響，全面的影響將在 2025 年看到。

I think, I recall, it may be roughly about.

我想，我記得，大概大概就是這樣。

Yeah, $5 million.

是的，500萬美元。

Books annually.

每年出書。

Yeah, $10 million annually. $5 million 2024, and then the $10 million in 2025.

是的，每年1000萬美元。 2024 年為 500 萬美元，2025 年為 1,000 萬美元。

Got it.

知道了。

And then I believe in prior year-end, you talked about maybe strategically managing under that $10 billion in assets, maybe customers took excess funds and put it elsewhere.

然後我相信在去年年底，您談到可能對這 100 億美元的資產進行策略管理，也許客戶會拿走多餘的資金並將其放在其他地方。

Just it seems like the large government deposit is idiosyncratic to that customer, not have anything to do with kind of previous managing under $10 billion.

只是對該客戶來說，巨額政府存款似乎很特殊，與先前管理的 100 億美元以下的資金沒有任何關係。

Just wanted to confirm that.

只是想確認一下。

And also, wondering if there's potential, inflows of deposits just related to customers who have OFG as their lead bank who may be -- you may recruit to bring more of that excess funds back now that you're clearly crossed that path?

而且，想知道是否有潛在的存款流入與以 OFG 作為牽頭銀行的客戶有關，既然您顯然已經跨越了這條道路，您可能會招募更多的多餘資金回來？

Yeah.

是的。

So the first part of your question.

所以你問題的第一部分。

No, we did not try to manage below $10 billion ex-government deposits and did not engage this year as we had kind of commented, I think, on the third quarter call.

不，我們沒有試圖管理低於 100 億美元的前政府存款，今年也沒有參與，我想，我們在第三季電話會議上曾發表過評論。

So we are managing and we were managing conscientiously towards breaking the $10 billion mark because it really makes total sense for us as we can reinvest those deposits into higher yield than in previous years.

因此，我們正在認真管理，以突破 100 億美元大關，因為這對我們來說確實很有意義，因為我們可以將這些存款再投資，以獲得比前幾年更高的收益率。

So that's the first part.

這是第一部分。

On the second part, yeah, we are very active.

在第二部分，是的，我們非常活躍。

And we are actually working very diligently in customer deposits strategies that will be deployed during the year.

事實上，我們正​​在非常努力地制定今年將部署的客戶存款策略。

And that should play for us as we continue to grow our customer base, and again, take advantage of our good strategic positioning that we have in the Puerto Rico market.

隨著我們繼續擴大客戶群，並再次利用我們在波多黎各市場的良好策略定位，這應該對我們有利。

Got it.

知道了。

Appreciate the color.

欣賞顏色。

Thanks so much.

非常感謝。

You're welcome.

不客氣。

Thank you for your call and for your questions.

感謝您的來電和提問。

(Operator instructions) And we have no further questions at this time.

（操作員說明）目前我們沒有其他問題。

I'll now turn the call back to Mr. Fernandez for closing remarks.

現在我將把電話轉回給費南德斯先生做總結發言。

Thank you, operator.

謝謝你，接線生。

Thank you, again, to all our team members, and thanks to all our stakeholders who are listening.

再次感謝我們所有的團隊成員，也感謝所有正在傾聽的利害關係人。

Have a great day.

祝你有美好的一天。

This does conclude today's call.

今天的電話會議到此結束。

We thank you for your participation.

我們感謝您的參與。

You may disconnect at any time.

您可以隨時斷開連線。