OFG Bancorp (OFG) 2024 Q2 法說會逐字稿

Good morning. Thank you for joining OFG Bancorp's conference call. My name is Savannah; I will be your operator today.

早安.感謝您參加 OFG Bancorp 的電話會議。我的名字是薩凡納；今天我將成為您的接線生。

Our speakers are José Rafael Fernández, Chief Executive Officer and Chairman of Board of Directors; Maritza Arizmendi, Chief Financial Officer; and Cesar Ortiz, Chief Risk Officer. A presentation accompanies today's remarks, and it can be found on the home page of the OFG website under the Second Quarter 2024 section.

我們的演講者是執行長兼董事會主席何塞·拉斐爾·費爾南德斯 (José Rafael Fernández)； Maritza Arizmendi，財務長；首席風險官塞薩爾·奧爾蒂斯 (Cesar Ortiz)。今天的演講附帶了一份演示文稿，可以在 OFG 網站主頁的 2024 年第二季度部分找到。

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 the information disclosed in this call as a result of developments that occur afterward.

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。這些陳述受到 OFG 向 SEC 備案的風險因素部分概述的風險和不確定性的影響。實際結果可能與目前預期有重大差異。我們不承擔因隨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。

(Operator Instructions) I would now like to turn the call over to Mr. Fernandez.

（接線員指示）我現在想將電話轉給費爾南德斯先生。

Good morning, and thank you for joining us. We are pleased to report our second-quarter 2024 results, which demonstrate the strength of our strategies and franchise, both in line with our short-term and long-term plans.

早安，感謝您加入我們。我們很高興報告 2024 年第二季業績，證明了我們策略和特許經營的實力，符合我們的短期和長期計劃。

Performance for the quarter was exceptional. We generated consistent growth through increased loans, deposits, and non-interest income and stable credit quality.

本季的業績非常出色。我們透過增加貸款、存款和非利息收入以及穩定的信貸品質實現了持續成長。

Our digital-first strategy continues to help us expand our retail and business relationships. And we deployed close to half of our $50 million share buyback program, purchasing $24.3 million of OFG shares in the open market.

我們的數位優先策略持續幫助我們擴大零售和業務關係。我們部署了近一半的 5,000 萬美元股票回購計劃，在公開市場上購買了 2,430 萬美元的 OFG 股票。

At the same time, Puerto Rico's economy continued to grow and steadily decoupled from mainland economic uncertainties. I want to thank the entire OFG team for their commitment to our mission and purpose, which is to make progress possible for our customers, employees, shareholders, and the communities we serve.

同時，波多黎各經濟持續成長，並與大陸經濟的不確定性穩步脫鉤。我要感謝整個 OFG 團隊對我們使命和目標的承諾，為我們的客戶、員工、股東和我們所服務的社區取得進步。

Please turn to page 3 for a summary of our second-quarter results. Looking at the income statement, earnings per share, diluted, increased more than 16% year over year to $1.08 on a more than 5% increase in total core revenues to $179.4 million.

請翻至第 3 頁了解我們第二季業績摘要。從損益表來看，攤薄後每股盈餘年增超過 16% 至 1.08 美元，核心總收入成長超過 5% 至 1.794 億美元。

Net interest margin was 5.51%. Provision was $15.6 million. Non-interest expenses were $93 million. And pre-provision net revenues totaled close to $87 million.

淨利差為5.51%。撥款為 1560 萬美元。非利息支出為 9,300 萬美元。撥備前淨收入總計接近 8,700 萬美元。

Turning to the balance sheet. Total assets were $11.3 billion, up 12% from a year ago and 1% less than last quarter. Customer deposits were $9.6 billion, including strong commercial deposit growth.

轉向資產負債表。總資產為 113 億美元，年增 12%，比上季減少 1%。客戶存款為 96 億美元，其中商業存款成長強勁。

Loans held for investment totaled $7.6 billion, and new loan production was a solid $589 million. Investments were level with the first quarter at $2.5 billion, and cash at $740 million was down slightly from last quarter. Looking at capital, the CET1 ratio was 14.29%.

持有的投資貸款總額為 76 億美元，新增貸款總額為 5.89 億美元。投資為 25 億美元，與第一季持平，現金為 7.4 億美元，較上季略有下降。從資本來看，CET1比率為14.29%。

Let's turn to page 4 for an update on our digital-first strategy. As of the second quarter, 94% of all routine retail customer transactions, 96% of retail deposit transactions, and 66% of retail loan payments were made through our digital and self-service channels. This is being driven by year-over-year growth of 13% in digital enrollment, 69% in digital loan payments, 26% in virtual teller utilization, and 4% in customer growth.

讓我們翻到第 4 頁，了解我們數位優先策略的最新資訊。截至第二季度，94%的常規零售客戶交易、96%的零售存款交易和66%的零售貸款支付都是透過我們的數位和自助服務管道完成的。這是由數位註冊年增 13%、數位貸款支付年增 69%、虛擬櫃員利用率年增 26% 以及客戶成長 4% 所推動的。

During the second quarter, we launched the Elite deposit account for retail customers, a combined checking and savings account that rewards customers for expanding their relationship with Oriental. This represents a unique value proposition in our market. Elite offers an exclusive combination of benefits, in particular, cash back on loan payments and full digital account opening and funding.

第二季度，我們為零售客戶推出了精英存款帳戶，這是一個綜合支票和儲蓄帳戶，旨在獎勵客戶擴大與東方的關係。這代表了我們市場上獨特的價值主張。 Elite 提供獨特的福利組合，特別是貸款支付現金回饋以及全數位帳戶開設和融資。

For small business commercial clients, we upgraded Oriental Biz, a complete cash management platform easily accessible through mobile devices with access to remote check deposit. Small businesses now have a complete set of tools to manage their finances anywhere, anytime.

對於小型企業商業客戶，我們升級了 Oriental Biz，這是一個完整的現金管理平台，可透過行動裝置輕鬆存取，並可進行遠端支票存款。小型企業現在擁有一整套工具隨時隨地管理財務。

We are very excited with the customer reception so far of both products. Our strategy is to continue to take advantage of our unique position in the Puerto Rico market. This includes leveraging our technology investments, our entrepreneurial culture, and our client-centric challenger approach, all this to provide customers with products and services that incentivizes them to deepen their relationship with us. We focus on doing it in a way that is fast, easy, agile, and delivers added value.

到目前為止，我們對這兩種產品的客戶反應感到非常興奮。我們的策略是繼續利用我們在波多黎各市場的獨特地位。這包括利用我們的技術投資、我們的創業文化和我們以客戶為中心的挑戰者方法，所有這些都是為了向客戶提供產品和服務，激勵他們加深與我們的關係。我們專注於以快速、簡單、敏捷並提供附加價值的方式來實現這一目標。

Now, here is Maritza to go over the financials in more detail.

現在，瑪麗莎將更詳細地介紹財務狀況。

Thank you, Jose. Please turn to page 5 to review our financial highlights. Starting with the components of core revenues, total interest income was $188 million, up more than 2% or more than $4 million from the first quarter. That mainly reflected higher income from loans due to higher average balances and yields and $2.1 million from recovery of a nonaccrual US commercial loan paid in full.

謝謝你，何塞。請翻至第 5 頁查看我們的財務摘要。從核心收入的組成部分開始，總利息收入為1.88億美元，比第一季成長超過2%，即超過400萬美元。這主要反映了由於平均餘額和收益率較高而帶來的貸款收入增加，以及全額支付的非應計美國商業貸款回收帶來的 210 萬美元收入。

Total interest expense was $40 million, an increase of $1 million from the first quarter. This reflected higher average core deposits and a 7-basis-point increase in rates, partially offset by lower average wholesale funding and rate.

利息支出總額為 4,000 萬美元，比第一季增加 100 萬美元。這反映出平均核心存款增加和利率上升 7 個基點，但部分被平均批發融資和利率下降所抵銷。

Total banking and financial service revenues were $32 million, an increase of $2 million from the first quarter, with higher banking service, wealth management, and mortgage banking revenues. Banking and service revenues included $600,000 in pre-payment fees on US loans. Wealth management included $500,000 in annual recognition of certain commercial insurance fees.

銀行和金融服務總收入為3,200萬美元，比第一季增加200萬美元，其中銀行服務、財富管理和抵押銀行業務收入增加。銀行和服務收入包括 60 萬美元的美國貸款預付款費。財富管理包括每年確認50萬美元的某些商業保險費用。

Looking at non-interest expenses, they totaled $93 million, up $1.6 million from the first quarter. Expenses included $1.3 million in higher electronic banking fees due to increased business activity, $1.1 million in different categories of professional services due to improved -- service to improve business processes, and $400,000 in higher FDIC insurer now that Oriental is more than a $10 billion in assets. This was partially offset by $1.4 million due to higher gain on sale of pre-processed properties and lower compensation expenses related to reduced pre-tax payroll expenses.

非利息支出總計 9,300 萬美元，比第一季增加 160 萬美元。費用包括由於業務活動增加而增加的130 萬美元電子銀行費用、由於改進業務流程而增加的不同類別專業服務費用110 萬美元，以及由於東方銀行的年營業額超過100 億美元而增加的40 萬美元FDIC 保險公司費用。由於預加工財產銷售收益增加以及與稅前工資支出減少相關的補償費用減少，140 萬美元部分抵消了這一損失。

The second-quarter efficiency ratio was 61.81%, a 68-basis-point improvement for the second -- from the first quarter. As revenues continues to expand, we are incrementally investing in our digital-first strategy by adding new technology and investing in people. We expect to average $90 million to $92 million of non-interest expense per quarter the rest of this year, with the efficiency ratio remaining level with the second quarter.

第二季效率為61.81%，較第一季提升68個基點。隨著收入不斷擴大，我們透過增加新技術和對人才進行投資，逐步投資於我們的數位優先策略。我們預計今年剩餘時間每季平均非利息支出為 9,000 萬至 9,200 萬美元，效率比率與第二季維持水準。

Other performance metrics remained high. Return on average assets was 1.82%, return on average tangible common equity was 18.24%, and tangible book value per share continued to climb to $24.18, up $0.63 from the first quarter.

其他績效指標仍然很高。平均資產報酬率為1.82%，平均有形普通股報酬率為18.24%，每股有形帳面價值持續攀升至24.18美元，較第一季增加0.63美元。

Please turn to page 6 to review our operational highlights. Average loan balances were $7.6 billion, increasing 1% from the first quarter. End-of-period balances of loans held for investment increased 1.3% or $100 million.

請翻至第 6 頁查看我們的營運亮點。平均貸款餘額為 76 億美元，較第一季成長 1%。期末投資貸款餘額增加 1.3%，即 1 億美元。

This reflected sequential growth in Puerto Rico commercial, auto, and consumer loans, partially offset by regular pay downs of residential mortgages and pre-payment of approximately $66 million of US commercial loans. Year over year, second quarter loans held for investment increased more than 7%.

這反映了波多黎各商業、汽車和消費貸款的連續增長，部分被住宅抵押貸款的定期還款和約 6,600 萬美元的美國商業貸款的預付款所抵消。與去年同期相比，第二季持有的投資貸款成長超過7%。

Loan yield was 80.15% (sic - see page 6, "8.15%"), up 70 basis points from the first quarter. This included the previously mentioned US loan recovery represented 11 basis points.

貸款收益率為80.15%（原文如此－見第6頁「8.15%」），較第一季上升70個基點。這其中包括之前提到的美國貸款回收率11個基點。

New loan origination increased $52 million from the first quarter. Production increased sequentially across all categories, led by a strong quarter for auto. We have a strong pack line in commercial and continue to anticipate auto production will moderate.

新發放貸款較第一季增加 5,200 萬美元。在汽車季度強勁的帶動下，所有類別的產量均持續成長。我們在商業領域擁有強大的包裝線，並繼續預計汽車產量將放緩。

Average core deposits were $9.6 billion, up $67 million from the first quarter. End-of-period balances increased $59 million or 0.6%. This reflected a $125 million increase in commercial deposits, partially offset by a decline of $53 million in retail deposits and a $12 million decline in government deposits.

平均核心存款為 96 億美元，比第一季增加 6,700 萬美元。期末餘額增加 5,900 萬美元，成長 0.6%。這反映了商業存款增加了 1.25 億美元，部分被零售存款減少 5,300 萬美元和政府存款減少 1,200 萬美元所抵消。

Core deposits were 154 basis points, up 7 basis points from the first quarter. That's the smallest sequential increase over the last five quarters. Excluding public funds, cost of deposit was 87 basis points compared to 82 basis points.

核心存款為154個基點，較第一季上升7個基點。這是過去五個季度以來最小的連續增幅。不包括公共資金，存款成本為 87 個基點，去年同期為 82 個基點。

Average borrowings and broker deposits were $221 million compared to $280 million in the first quarter. The June period balances was $201 million. The rate paid on wholesale funding decreased 18 basis points to 4.62% in the second quarter.

平均借款和經紀人存款為 2.21 億美元，而第一季為 2.8 億美元。 6 月份期間餘額為 2.01 億美元。第二季批發融資利率下降 18 個基點至 4.62%。

Investment securities held steady from the first quarter at $2.5 billion. During the second quarter, a $200 million treasury note yielding 3.3% that matured in May was replaced with $200 million of government-insured, mortgage-backed securities yielding 5.6%. With this, we extended asset duration at a higher yield to lower our asset sensitivity.

投資證券自第一季起穩定在 25 億美元。第二季度，5 月到期、收益率為 3.3% 的 2 億美元國庫券被收益率為 5.6% 的 2 億美元政府擔保抵押貸款支持證券所取代。這樣，我們以更高的收益率延長了資產久期，降低了資產敏感性。

Net interest margin was 5.51%. Excluding the US loan recovery, net interest margin was 5.44%.

淨利差為5.51%。剔除美國貸款回收，淨利差為5.44%。

Please turn to page 5 to review our credit quality and capital strength. Credit quality continues to be stable. Net charge-offs totaled $15 million, down $5 million from the first quarter. The net charge-off rate was 79 basis points, down 26 basis points.

請翻至第5頁查看我們的信用品質和資本實力。信用品質繼續穩定。淨沖銷總額為 1500 萬美元，比第一季減少 500 萬美元。淨核銷率為79個基點，下降26個基點。

Auto and consumer net charge-off rates were both down sequentially. The auto net charge-off rate is now below the last two quarters. While there are some time delays in payments, the business is well managed.

汽車和消費者淨沖銷率均連續下降。汽車淨沖銷率目前低於過去兩季。雖然付款有一些時間延遲，但業務管理良好。

Provision for credit losses totaled $15.6 million, up $500,000 for the first quarter. Second-quarter provision mainly reflected loan volumes.

信貸損失撥備總額為 1,560 萬美元，比第一季增加 50 萬美元。第二季撥備主要反映貸款量。

Looking at other credit metrics, early and total delinquency rates were up from the first quarter at 2.81% and 3.71%, respectively, in line with trends we have seen over the last five quarters. The non-performing loan rate of 1.08% was the lowest of the last -- over the last five quarters.

從其他信貸指標來看，早期拖欠率和總拖欠率分別較第一季上升 2.81% 和 3.71%，與我們過去五個季度看到的趨勢一致。不良貸款率為1.08%，為過去五個季度以來的最低水準。

Looking at some other capital metrics, total stockholders equity increased about $12 million from the end of last quarter. And the tangible common equity ratio increased to 10.09%.

從其他一些資​​本指標來看，股東權益總額比上季末增加了約 1,200 萬美元。有形普通股比率增至10.09%。

Our second-quarter effective tax rate was 28.2% compared to 26.8% in the first quarter. We continue to expect a full-year ETR of 29% in 2024. The second quarter included a $800,000 benefit from a tax credit, and the first quarter included a $1.1 million discrete benefit from stock (inaudible)

我們第二季的有效稅率為 28.2%，而第一季為 26.8%。我們仍預期 2024 年全年 ETR 為 29%。

To sum up, during the second quarter, net interest income continued to grow based on increased volume of interest-earning assets, partially offset by lower net interest margin year-over-year. This mainly reflected higher balances and yields of loans, partially offset by higher moderating core deposit costs.

綜上所述，第二季淨利息收入因生息資產規模增加而持續成長，但部分被淨利差年減所抵銷。這主要反映了貸款餘額和收益率的上升，但部分被核心存款成本的上升所抵消。

The core deposit trends continue to be positive, benefiting from commercial deposit growth. Loans remain strong. We continue to be on track for 3% to 4% growth this year. Credit quality remains stable and is expected to continue that way.

受惠於商業存款成長，核心存款趨勢持續向好。貸款依然強勁。今年我們仍有望實現 3% 至 4% 的成長。信貸品質保持穩定，並預計將繼續保持這種狀態。

Our net interest margin outlook continues to be a range of 5.45% to 5.55%. We expect the full benefit from the most recent change in our investment portfolio in the third quarter. We continue to expect three Federal Reserve Bank rate cuts of 25 basis points each.

我們的淨利差展望仍為 5.45% 至 5.55%。我們預計第三季投資組合的最新變化將充分受益。我們繼續預期聯準會將三次降息，每次降息 25 個基點。

Our anticipated range of non-interest expense continued to be $90 million to $92 million as we invest in technology. While we bought back shares during the second quarter, we remain opportunistic regarding capital allocation, ranging from capital from Puerto Rico and US loan growth to dividends and continued share buybacks.

當我們投資技術時，我們預計的非利息支出範圍仍為 9,000 萬至 9,200 萬美元。雖然我們在第二季度回購了股票，但我們在資本配置方面仍然持機會主義態度，從波多黎各的資本和美國貸款增長到股息和持續的股票回購。

Now, here is Jose.

現在，這是何塞。

Thank you, Maritza. Please turn to page 8. Our outlook for both Puerto Rico and OFG is positive. As I mentioned earlier, the island's economy is continuing to grow and steadily decoupled from mainland economic uncertainties.

謝謝你，瑪麗莎。請翻至第 8 頁。正如我之前提到的，台灣經濟正在持續成長，並與大陸經濟的不確定性穩定脫鉤。

We're seeing ongoing expansion of infrastructure projects and business investments and strong levels of employment, so we are very optimistic about Puerto Rico and its future. Having said that, we continue to be vigilant regarding the big macro uncertainties, interest rate changes, inflation, possible mainland recession, and ongoing geopolitical conflicts.

我們看到基礎設施項目和商業投資持續擴張，就業水平強勁，因此我們對波多黎各及其未來非常樂觀。話雖如此，我們仍對重大宏觀不確定性、利率變化、通膨、內地可能出現的經濟衰退以及持續的地緣政治衝突保持警惕。

Turning to OFG. We're well positioned to continue to benefit from the growth of loans, deposits, and our customer base. Consumer credit trends should continue at current levels. Our digital-first strategy is working, so we will continue to invest in and deploy customer innovations to build out our differentiated business model.

轉向 OFG。我們處於有利位置，可以繼續受益於貸款、存款和客戶群的成長。消費信貸趨勢應維持在目前水準。我們的數位優先策略正在發揮作用，因此我們將繼續投資和部署客戶創新，以建立我們的差異化業務模式。

Overall, we look forward to a strong second half of 2024. In addition, we'll be celebrating our 60th anniversary in business and our 30th year of OFG shares trading on the New York Stock Exchange.

總體而言，我們期待 2024 年下半年的強勁表現。

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, including our Board of Directors. We are thankful to them, and we're excited for what's to come.

最後，我想強調，如果沒有包括董事會在內的所有團隊成員的辛勤工作和奉獻，我們就不可能取得今天的成績。我們感謝他們，並對即將發生的事情感到興奮。

With this, we end our formal presentation. Operator, please start the Q&A.

至此，我們的正式演講就結束了。接線員，請開始問答。

Thank you. (Operator Instructions) Timur Braziler, Wells Fargo.

謝謝。 （操作員指示）Timur Braziler，富國銀行。

Hi. Good morning.

你好。早安.

Good morning, Timur.

早上好，帖木兒。

Maybe starting out on the remaining six asset repricing opportunity. I appreciate the comments on the $200 million of treasury maturities reinvested during the quarter. I guess, what's the cadence look like for the remainder of the year, both for planned bond maturities and fixed loan maturities?

也許可以從剩下的六項資產重新定價機會開始。我很欣賞有關本季 2 億美元到期國債再投資的評論。我想，今年剩餘時間的計畫債券到期日和固定貸款到期日的節奏是什麼樣的？

So Timur, in terms of our investment portfolio, we really do not have any immediate second half of the year specific maturities. We do have repayments of our mortgage book -- our mortgage-backed securities book of around $20 million to $22 million a month. So our way of looking at this is we have the opportunity of maintaining our treasury book -- when I call it treasury, I mean investment book -- as part of our asset management -- asset and liability management approach.

因此，就我們的投資組合而言，鐵木爾確實沒有任何今年下半年的具體到期日。我們的抵押貸款帳簿（抵押貸款支援證券帳簿）確實需要償還，每月約 2,000 萬至 2,200 萬美元。因此，我們看待這個問題的方式是，我們有機會維護我們的財務帳簿——當我稱之為財務帳簿時，我指的是投資帳簿——作為我們資產管理——資產和負債管理方法的一部分。

In terms of the loans, we really do not have any fixed rate loan maturity -- large ones, I should say -- coming up. So from our perspective, the second half of the year is about loan origination and how we continue to generate good origination levels at a good yield.

就貸款而言，我們確實沒有任何固定利率貸款到期——我應該說是大額貸款——即將到期。因此，從我們的角度來看，下半年的重點是貸款發放以及我們如何繼續以良好的收益率產生良好的發放水平。

And on the treasury side or investment side, be very opportunistic as we have been in the past when we had lots amounts of cash and we decided not to go long duration. So we are now benefiting from those decisions that we made a couple of years ago. And we're -- we've been doing it in the last several months, investing longer duration and having less asset sensitivity than we had last year, significantly less.

在財務方面或投資方面，要像過去一樣，保持機會主義，當時我們擁有大量現金，但我們決定不長期持有。因此，我們現在正從幾年前所做的決定中受益。我們在過去幾個月一直在這樣做，投資期限更長，資產敏感性比去年更低，顯著降低。

Got it. Thanks for that. And then maybe just looking at the deposit base, the large public fund deposit that came in in the fourth quarter. Is that just in the run rate now or is there still an expectation that a larger slug of that is going to come out? Because it seems like it's been embedded in that base maybe longer than initially you expected.

知道了。感謝那。然後也許只看存款基礎，即第四季度流入的大量公共基金存款。這只是現在的運行速度還是仍然預計會出現更大的彈頭？因為看起來它嵌入該基地的時間可能比你最初預期的要長。

That's a great point, Timur, and thank you for bringing it up. We have been guiding that the deposit would probably mostly flow out in the second half of this year. Now, we have been updated from the government account that at least until September.

這是一個很好的觀點，蒂穆爾，感謝您提出這一點。我們一直預期存款可能會在今年下半年大部分流出。現在，我們已經從政府帳戶獲得了至少到九月的更新。

So we will be having the deposit in our books at least until September. And that's already included in some of the guidance that Maritza gave throughout her comments in terms of net interest margin as well as cost of funds. So that deposit, it's collateralized. So it also has a little bit of a -- the second question -- your second question had a little bit of a relationship to the first question.

因此，我們的帳本上至少會保留這筆押金，直到九月。這已經包含在 Maritza 在她的評論中就淨息差和資金成本給出的一些指導中。所以這筆存款是有抵押的。所以它也有一點——第二個問題——你的第二個問題與第一個問題有一點關係。

Part of our cautiousness in terms of the investment book has a lot to do with the $1 billion deposit that is collateralized with pretty much investment securities. So those are a little bit of the things that we're managing in the next three or four months, and we'll keep everyone updated on how that deposit plays out.

我們對投資帳簿持謹慎態度，部分原因在於 10 億美元的存款有相當多的投資證券作為抵押。這些是我們在未來三、四個月內管理的一些事情，我們將讓每個人都了解存款的最新情況。

The good thing is that that deposit is parable. It's indexed. So in the next three months, we will have a lower cost of that deposit if the Fed delivers on what the market is expecting and the three -- the three interest rate cuts that they're forecasting that they would do in the second half of the year.

好消息是這筆押金是有寓意的。它已編入索引。因此，在接下來的三個月裡，如果聯準會兌現了市場的預期，並且他們預測將在下半年進行三次降息，那麼我們的存款成本將會降低。

So we'll keep everyone updated with that. But for now, we're basically managing the relationship with a great customer of ours for a long time.

因此，我們會及時向大家通報最新情況。但就目前而言，我們基本上是在長期維持與大客戶的關係。

Great. And then just last question for me is on the credit front. Really nice results this quarter, good commentary for expectations in the back end of the year.

偉大的。我的最後一個問題是關於信用方面的。本季的業績非常好，對年底的預期有很好的評論。

Maybe just give us an update as to what's happening with the Puerto Rico consumer and some of the volatility maybe we saw over the last three, four quarters. Has much of that abated now or do you feel like the seasoning of some of the higher COVID-related spend has now worked its way through the system? Just give us an update as to what's happening on the ground in Puerto Rico from a credit standpoint.

也許只是向我們介紹波多黎各消費者的最新情況，以及我們在過去三、四個季度看到的一些波動。現在其中的大部分支出是否已經減少，或者您是否認為一些與新冠病毒相關的較高支出現在已經在整個系統中發揮作用？請從信用的角度向我們介紹波多黎各當地發生的最新情況。

Sure. So I'll give you some big picture macro Puerto Rico perspective, and I'll ask Cesar to give you some specifics about our consumer loan books. From the big picture, Timur, most of the COVID incentives and all the cash that came in, it's flushed through. And I -- what the economy is seeing from the consumer is a consumer that is also benefiting from higher wages and the minimum wage being increased here.

當然。因此，我將向您介紹波多黎各的宏觀宏觀視角，並請塞薩爾向您提供有關我們的消費貸款書籍的一些具體資訊。從大局來看，帖木兒，大部分新冠病毒激勵措施和所有收到的現金都被沖走了。我——經濟從消費者身上看到的是消費者也受益於更高的工資和提高的最低工資。

I mentioned in other calls, where the magnitude percentage-wise of that increase in Puerto Rico is significantly larger than in the states, so the impact is also larger. So we see higher wages. We see lower unemployment levels.

我在其他電話中提到，波多黎各成長的幅度百分比明顯大於各州，因此影響也更大。所以我們看到薪水更高。我們看到失業率下降。

So all that is what's keeping the consumer healthy in terms of their finances. So now for our auto and consumer perspective in terms of the loan book, I'll let Cesar give you some details.

因此，所有這些都是保持消費者財務健康的原因。現在，從汽車和消費者的角度來看，我將讓塞薩爾為您提供一些細節。

So for auto, but -- let's start with auto with the bigger portfolio. We continue to see stabilizing non-performing loan rates on auto. First quarter is usually a better season quarter than the rest of the year because of the tax season. We discussed this last quarter.

對於汽車來說，但是——讓我們從擁有更大產品組合的汽車開始。我們繼續看到汽車不良貸款率趨於穩定。由於報稅季節，第一季通常比一年中的其他時間更好。我們在上個季度討論過這個問題。

So the second quarter, with the holidays in place, the customer tends to slow down in terms of collections, but the non-performing loans continue to be positive and stable for those portfolio, consumer and auto. So we remain positive on the outlook for credit.

因此，第二季度，隨著假期的到來，客戶的收款速度往往會放緩，但對於這些投資組合、消費者和汽車來說，不良貸款仍然積極且穩定。因此，我們對信貸前景保持樂觀。

Remember also that we converted the auto portfolio from a subprime -- say, [64%] prime portfolio three years ago. And now, it's 84% prime and superprime portfolio, which is improving the charge-off levels, too. So we are seeing charge-off levels stabilizing and improving, too.

還要記住，我們三年前將汽車投資組合從次級抵押貸款轉換為[64%] 優質投資組合。現在，84% 是優質和超優質投資組合，這也提高了沖銷水準。因此，我們也看到沖銷水準穩定並有所改善。

So again, we are positive on the outlook for the retail portfolio side. On the other hand, commercial portfolios are also benefiting from the macroeconomics of Puerto Rico. We continue to see good opportunities in the pipeline, but also good behavior in terms of the credit in the commercial portfolio, both small businesses and corporate portfolios.

因此，我們對零售投資組合的前景再次持樂觀態度。另一方面，商業投資組合也受惠於波多黎各的宏觀經濟。我們繼續看到良好的機會正在醞釀中，而且在商業投資組合（包括小型企業和企業投資組合）的信貸方面也出現了良好的表現。

Great. Thanks for all that color. Appreciate it.

偉大的。感謝所有這些顏色。欣賞它。

Thank you. Thank you for your questions. Timur.

謝謝。謝謝您的提問。帖木兒。

Brett Rabatin, Hovde Group.

布雷特·拉巴廷 (Brett Rabatin)，Hovde 集團。

Hey. Good morning, everyone.

嘿。大家，早安。

Good morning, Brett.

早安，布雷特。

I wanted just to start off on the loan growth outlook for the back half of the year. And I missed -- I couldn't quite hear the numerical guidance for the back half of the year. And I wanted just to see what the outlook was specifically on the commercial side. Auto has obviously been a strong driver here in the past year, but I just wanted to hear if the commercial activity in Puerto Rico, specifically, might be stronger and just how you guys think about that portfolio?

我想先談談今年下半年的貸款成長前景。我錯過了——我聽不清楚今年下半年的數位指引。我只是想看看商業方面的前景如何。在過去的一年裡，汽車顯然是這裡的強勁推動力，但我只是想聽聽波多黎各的商業活動是否會更加強勁，以及你們如何看待該投資組合？

Yeah. So the first part of the question, we expect 3% to 4% loan growth for the full year. So the second half of the year will be impacted positively by our commercial pipelines. We have seen some delays in some of the closings of some loans that we had in the pipeline in June -- in the June quarter, but we expect them to be closed in the September quarter.

是的。所以問題的第一部分，我們預計全年貸款將成長 3% 至 4%。因此，今年下半年將受到我們的商業管道的正面影響。我們在 6 月的季度中發現了一些貸款的關閉有所延遲，但我們預計它們將在 9 月的季度關閉。

And we still have a very strong pipeline. We are seeing a lot of activity in Puerto Rico in the commercial side, small as well as mid- and larger type of credits. We're really encouraged with the small business and their origination levels.

我們仍然擁有非常強大的管道。我們看到波多黎各在商業方面有很多活動，包括小型、中型和大型信貸。我們對小型企業及其起源水平感到非常鼓舞。

We've had consecutive record origination levels in three quarters in a row. And these are mostly, I would say, fixed rate loans that are small. We're growing our small business clients through the small biz account that I mentioned in my comments, and it's giving us the opportunity to expand those relationships and deepen those relationships.

我們已連續三個季度創下創紀錄的原創水準。我想說，這些大多是小額固定利率貸款。我們正在透過我在評論中提到的小型企業帳戶來發展我們的小型企業客戶，這使我們有機會擴大這些關係並加深這些關係。

On the larger type of sectors that we have, we do have a very strong pipeline and we had a great quarter. We think that the second half of the year is commercial, as a whole, is going to drive our loan growth for the rest of the year. We do expect auto to taper down a little bit from the levels that we saw in the second quarter.

在我們擁有的較大類型的行業中，我們確實擁有非常強大的管道，並且我們度過了一個很棒的季度。我們認為，下半年的商業發展將推動今年剩餘時間的貸款成長。我們確實預計汽車業將比第二季的水平略有下降。

Okay. That's helpful. And then on capital, any thoughts on the buyback from here? And just the capital levels are obviously robust, but I know you kind of keep them that way in Puerto Rico.

好的。這很有幫助。然後在資本方面，對從這裡回購有什麼想法嗎？資本水準顯然很強勁，但我知道你們在波多黎各保持著這種狀態。

Yeah. So the way we look at capital, we -- first goes to loans. We are seeing a great opportunity here in Puerto Rico. We've kind of stayed a little bit timid on the US, given the uncertainties in that market in the last, let's say, 12 months. And that's why you're seeing that portfolio stay steadily downwards.

是的。因此，我們看待資本的方式，首先是貸款。我們在波多黎各看到了一個絕佳的機會。考慮到過去（比如說 12 個月）美國市場的不確定性，我們對美國市場有點膽怯。這就是為什麼你會看到該投資組合穩定下降。

But first, for us, capital deployment goes to loans and growing the relationships and taking advantage of the economic situation in Puerto Rico and helping our customers and the communities. So that's number one.

但首先，對我們來說，資本部署用於貸款和發展關係，利用波多黎各的經濟狀況來幫助我們的客戶和社區。所以這是第一。

And then we take a look at capital from a dividend perspective. And as you saw, our results are pretty strong, and we are pretty confident about the overall perspective of OFG. So we will continue to look at the dividend as well as the buyback.

然後我們從股利的角度來看資本。正如您所看到的，我們的業績非常強勁，我們對 OFG 的整體前景非常有信心。因此，我們將繼續關注股利和回購。

We executed -- I am happy to say that we executed 50% of our buyback program in the past quarter. And as you can imagine, the cost of that -- the average cost of the shares that we bought at was extremely accretive to us for sure.

我們執行了——我很高興地說，我們在上個季度執行了 50% 的回購計劃。正如你可以想像的那樣，其成本——我們購買股票的平均成本對我們來說肯定是極其增值的。

And so we're really happy with the way we've managed capital. And we recognize that we have excess capital. So our earnings are going to be significantly returned back to shareholders on a consistent basis.

因此，我們對我們管理資本的方式非常滿意。我們認識到我們擁有過剩的資本。因此，我們的收益將持續大量返還給股東。

Okay. If I could sneak in one last one just on the expense guidance. If I heard it correctly, it was $92 million a quarter for the back half. I wanted to confirm that.

好的。如果我能在費用指南上偷偷添加最後一項就好了。如果我沒聽錯的話，後半季是 9,200 萬美元。我想確認這一點。

And then I know it's way too early to think about '25 guidance. But essentially, has the platform been invested to the point where you don't have new initiatives that you need to do on technology or other things that might lead to a lift in expenses maybe in '25 relative to the path of '24?

然後我知道現在考慮 '25 指導方針還為時過早。但從本質上講，該平台的投資是否已經達到了這樣的程度，即您不需要在技術或其他方面採取新舉措，而這些舉措可能會導致 25 年相對於 24 年的路徑增加費用？

So big picture, and I'll let Maritza give you the details. The big picture is that I don't think we can say we're going to stop investing in technology because it's -- it's kind of a table stakes -- or table stakes for everyone. So -- and it's part of our strategy, right?

這麼大的圖景，我會讓 Maritza 告訴你細節。總體而言，我認為我們不能說我們將停止對技術的投資，因為它是——它是一種賭注——或者是每個人的賭注。那麼——這是我們策略的一部分，對嗎？

We have a different business strategy in our market here in Puerto Rico that requires us to have less branches, but also making sure that we're at the front end of the investments in technology. So that is a good size, and it's not so good size because we need to invest in technology.

我們在波多黎各的市場有不同的業務策略，這要求我們減少分支機構，但也確保我們處於技術投資的前端。所以這是一個很好的規模，但也不是那麼好的規模，因為我們需要投資技術。

But I have to add one more thing, and that is it's people and the culture. And I think the way we have led the bank in the last couple of decades is -- how do we make sure that our culture is an entrepreneurial culture with a dynamic, agile approach to business and to look out for the opportunities, but also to transform the way we do banking?

但我還必須補充一件事，那就是人和文化。我認為過去幾十年我們領導這家銀行的方式是──我們如何確保我們的文化是一種創業文化，以動態、敏捷的方式開展業務，尋找機會，同時也改變我們銀行業務的方式？

And we are really proud of what we have accomplished so far, and that will require us to not lower the guard. And we're going to have to continue to invest in technology. Having said that, I'll let Maritza give you a little bit of her take on (inaudible) in 2024. And for 2025, I agree with you. It's a little too early for us to give you guidance.

我們對迄今為止所取得的成就感到非常自豪，這要求我們不能放鬆警惕。我們將不得不繼續投資於技術。話雖如此，我會讓 Maritza 向您介紹她對 2024 年的看法（聽不清楚）。我們現在給您指導還為時過早。

So on the guidance, we are -- we shared with you in the prepared remarks is that we're expecting $90 million to $92 million range in expenses. This quarter particularly was a little bit higher than that because of (inaudible) particularly, we continue investing in improving processes.

因此，根據指導意見，我們在準備好的評論中與您分享的是，我們預計支出範圍為 9,000 萬至 9,200 萬美元。特別是本季比上季略高一點，因為（聽不清楚）特別是，我們繼續投資於改善流程。

So we did have some higher expenses over that range, but we expect that this will be the average range for the next two quarters as timing of this investment will define if it is $90 million of $92 million. But we wanted to share that with you, okay?

因此，我們確實在這個範圍內有一些更高的費用，但我們預計這將是未來兩個季度的平均範圍，因為這項投資的時機將決定它是 9000 萬美元還是 9200 萬美元。但我們想與你分享，好嗎？

And Brett, if I could add one more thing in terms of technology and investments and net interest expenses. I don't know if you realize this, but we have the capability to open retail and commercial accounts digitally from soup to nuts.

布雷特，如果我能在技術、投資和淨利息支出方面再補充一件事的話。我不知道您是否意識到這一點，但我們有能力從頭到尾以數位方式開設零售和商業帳戶。

And right now, around 20% of our retail customers opened their checking accounts digitally. So around 14% or 13% commercial, small commercial clients do so. That's a differentiator in this market. And that's how we view this.

目前，我們約 20% 的零售客戶以數位方式開設了支票帳戶。因此，大約 14% 或 13% 的商業、小型商業客戶會這樣做。這是這個市場的差異化因素。這就是我們的看法。

This is -- the reason why it's a differentiator is because we have steadily been investing in the technologies that are required. So I'm not emphasizing this to hedge expenses going forward. I'm just emphasizing this to make the point that we have a differentiated strategy. And I think it's played out very nicely, and we look forward to continue to expand it.

這就是——它之所以成為一個差異化因素，是因為我們一直在穩步投資所需的技術。所以我強調這一點並不是為了對沖未來的開銷。我強調這一點只是為了顯示我們有差異化的策略。我認為它的效果非常好，我們期待著繼續擴展它。

Okay. That's all great color. Thanks so much.

好的。這都是很棒的顏色。非常感謝。

Thank you.

謝謝。

Kelly Motta, KBW.

凱利·莫塔，KBW。

Hi. Good morning. Thanks for the question.

你好。早安.謝謝你的提問。

Hi, Kelly.

嗨，凱利。

Hi. Capital is really strong, and you guys well time on the buyback and such. Just wondering, as you look ahead -- given your low mid-single-digit loan growth outlook organically, wondering if there's any opportunities to utilize some of your capital to maybe bolt-on a business or portfolio. Just wondering if we could get an update on any thoughts around something of that nature.

你好。資金真的很雄厚，你們回購之類的時機很好。只是想知道，當您展望未來時，考慮到您的低中個位數貸款有機成長前景，想知道是否有機會利用您的部分資本來增加業務或投資組合。只是想知道我們是否可以獲得有關此類性質的任何想法的最新資訊。

Yeah. At this time, Kelly, we do not have anything that we're looking at inorganically. That's what you're referring to in terms of a book of loans or a portfolio or a business. We are growing our customers organically, a clip of 4%, and we're deploying our strategy to deepen the relationships of pretty much our existing customers because we have a great opportunity there to deepen those relationships and extract more and more business from them.

是的。凱利，目前我們還沒有任何無機的東西。這就是您所指的貸款簿、投資組合或企業。我們正在有機地成長我們的客戶，成長率為4%，我們正在部署我們的策略來加深我們現有客戶的關係，因為我們有很好的機會來加深這些關係並從他們那裡獲取越來越多的業務。

So no, we do not have anything to deploy the, let's call it, excess capital. But we do have dry powder. So we will be opportunistic, and we will have the excess capital to take advantage immediately of any opportunity that presents to ourselves.

所以不，我們沒有任何東西可以部署（我們稱之為過剩資本）。但我們確實有乾粉。因此，我們將是機會主義的，我們將擁有多餘的資本，可以立即利用出現在我們面前的任何機會。

Awesome. Thanks a lot. And clearly, it was another great quarter from you guys. You guys continue to execute very nicely.

驚人的。多謝。顯然，這是你們又一個偉大的季度。你們繼續表現得很好。

Just from a high level, Jose Rafael, I'm wondering. As you look ahead beyond just this year, like what makes you the most excited at OFG? And maybe where do you see the greatest opportunities to gain share or build out a business? Just wondering if you could give us any insight into that from a high level.

我想知道，何塞·拉斐爾，只是從高水平來看。當您展望今年之後，您對 OFG 最興奮的是什麼？也許您認為獲得份額或拓展業務的最佳機會在哪裡？只是想知道您是否可以從高層次上給我們一些見解。

Sure. To me, the outlook for the next three to five years and what gets me excited and the team excited is deploying our strategy, Kelly. It's working; we're seeing it. Our customers -- our net customer is growing. It's not going to happen in one month or one quarter, but we are steadily executing on our strategy and steadily executing on our business development approach. And it's working and it's building.

當然。對我來說，未來三到五年的前景以及讓我和團隊興奮的是部署我們的策略，凱利。它正在工作；我們正在看到它。我們的客戶－我們的淨客戶正在成長。這不會在一個月或一個季度內發生，但我們正在穩步執行我們的策略，穩步執行我們的業務發展方法。它正在發揮作用並且正在建設中。

So that is really exciting for us. And for us, banking has become boring, but that's great. Because in the past, we -- our strategy in Puerto Rico -- when the macros were not as good as they are right now, they were really bad, the strategy was acquisitions. And we did three, and we're very happy with those three acquisitions.

所以這對我們來說真的很令人興奮。對我們來說，銀行業已經變得無聊，但這很好。因為在過去，我們——我們在波多黎各的策略——當宏觀政策不像現在那麼好時，它們真的很糟糕，策略就是收購。我們做了三項收購，我們對這三項收購感到非常滿意。

Now, it's about blocking and tackling and executing on a differentiated strategy. And that really keeps me going and keeps our executive team and the whole bank going. And so we're really excited about the prospects for the next three to five years.

現在，它是關於阻止、解決和執行差異化策略。這確實讓我繼續前進，讓我們的執行團隊和整個銀行繼續前進。因此，我們對未來三到五年的前景感到非常興奮。

Great. Well, we love boring when it's working so well. Maybe last question for me maybe for Maritza. I appreciate the color around margin. I think you reiterated [545 to 555].

偉大的。好吧，當它運作良好時，我們就喜歡無聊。也許最後一個問題是問我的，也許是問瑪麗莎的。我很欣賞邊緣周圍的顏色。我想你重申了[545到555]。

Just wondering, within that range, what do you think are the biggest drivers that could get you to the top end versus the bottom end? Is it deposit costs kind of stabilizing? Is it a function of putting on new growth at higher rates than on the top end of that? Just trying to ballpark the greatest variance between both ends of that range.

只是想知道，在這個範圍內，您認為可以讓您達到高端而不是低端的最大驅動因素是什麼？存款成本是否趨於穩定？它是否以高於最高水準的速度實現新的成長？只是試圖計算出該範圍兩端之間的最大差異。

Thanks for the question. And I think this quarter reflects what is the driver is the loan growth and the higher yield. Our loan book, excluding the recovery, is about 8%. So -- and every quarter, we're growing an inch on the proportion of that loan book in the total balance sheet.

謝謝你的提問。我認為本季反映的驅動因素是貸款成長和更高的收益率。我們的貸款帳簿（不包括回收）約為 8%。因此，每個季度，我們的貸款帳簿在總資產負債表中所佔的比例都會增加一英吋。

So that's combining with the fact that cost of funds are stabilizing and not growing at the same pace as the prior quarter. They make -- that will make us move to the upper range of the money. But we're managing different variable.

因此，這與資金成本正在穩定且成長速度與上一季不同的事實相結合。他們製造——這將使我們邁向資金的上限。但我們正在管理不同的變數。

The market is one that we are looking at, and we are expecting three cuts. And within that range that I provided you, that is another factor. But I think loan growth will be the main driver.

市場是我們正在關注的市場之一，我們預計會出現三次降息。在我為您提供的範圍內，這是另一個因素。但我認為貸款成長將是主要推動力。

And Kelly, also, in the last 8 or 10 months, we have gone longer duration and fixed investment -- fixed rate investment mortgage-backed securities, which has allowed us to reduce significantly our asset sensitivity. I think you'll get the 10-Q and you'll get the update.

凱利，在過去的 8 或 10 個月裡，我們進行了更長的久期和固定投資——固定利率投資抵押貸款支持證券，這使我們能夠顯著降低資產敏感性。我想您會收到 10-Q 並且會收到更新。

But our asset sensitivity has reduced quite a bit. And it's less of -- on an environment where interest rates are going to be going down as the Fed is kind of signaling, I think we're also well positioned to manage that.

但我們的資產敏感性已經降低了不少。在聯準會發出某種訊號而利率將會下降的環境下，我認為我們也有能力應對這一點。

Great. I'll step back. Thanks for the question.

偉大的。我會退後一步。謝謝你的提問。

Yeah. Thank you for your questions, Kelly.

是的。謝謝你的提問，凱利。

(Operator Instructions) And at this time, there are no further questions. I will turn the call back to management for closing remarks.

（操作員說明） 此時，沒有進一步的問題。我會將電話轉回管理層以供結束語。

Thank you, operator. Thanks again to all our team members and to all our stakeholders for listening today. Looking forward to catching up with you guys at the end of the third quarter. Have a great day.

謝謝你，接線生。再次感謝我們所有團隊成員和所有利害關係人今天的聆聽。期待在第三季末與大家見面。祝你有美好的一天。

And this will conclude today's conference. Thank you for your participation, and you may now disconnect.

今天的會議到此結束。感謝您的參與，您現在可以斷開連接。