OFG Bancorp (OFG) 2025 Q1 法說會逐字稿

Good morning. Thank you for joining OFG Bancorp's conference call. My name is Madison. I will be your operator today. Our speakers are José Rafael Fernández, Chief Executive Officer and Chairman of the Board of Directors; Maritza Arizmendi, Chief Financial Officer; and Cesar Ortiz, Chief Risk Officer.

早安.感謝您參加 OFG Bancorp 的電話會議。我的名字是麥迪遜。今天我將擔任您的接線生。我們的演講者是執行長兼董事會主席 José Rafael Fernández、財務長 Maritza Arizmendi 和首席風險長 Cesar Ortiz。

A presentation accompanies today's remarks. It can be found on the homepage of the OFG website under the first quarter 2025 section. 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 OFG's SEC filings. Actual results may differ materially from those currently anticipated. We disclaim any obligation to update information disclosed in this call. (Operator Instructions)

今天的發言附有簡報。它可以在 OFG 網站主頁的 2025 年第一季部分找到。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。這些聲明受到 OFG 向美國證券交易委員會提交的文件「風險因素」部分中概述的風險和不確定性的影響。實際結果可能與目前預期的結果有重大差異。我們不承擔更新本次電話會議中揭露的資訊的任何義務。（操作員指示）

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

現在我想把電話轉給費南德斯先生。

Good morning, and thank you for joining us. We are pleased to report our first quarter results. As we look at page 3 of our presentation, it was another strong start to the year with solid overall performance. We had consistent financial results, generating earnings per share diluted of $1. This was driven by excellent operating execution and loan and deposit growth. Consumer credit reflected higher seasonal customer liquidity in Puerto Rico, and we bought back shares and raised our dividend, supported by our strong capital generation and balance sheet.

早安，感謝您加入我們。我們很高興地報告我們的第一季業績。當我們查看簡報的第 3 頁時，我們發現今年又是一個強勁的開端，整體表現穩健。我們的財務表現穩定，每股攤薄收益為 1 美元。這是由出色的營運執行以及貸款和存款成長所推動的。消費信貸反映了波多黎各較高的季節性客戶流動性，在強大的資本產生和資產負債表的支持下，我們回購了股票並提高了股息。

Please turn to page 4. Our strategic investment in technology through our Digital First strategy continues to drive innovation. This is freeing up our people to build stronger customer relationships through our island-wide branch network. Looking at the numbers, 96% of all routine retail customer transactions, 97% of retail deposit transactions and 68% of retail loan payments were made through our digital and self-service channels. This is being driven by year-over-year growth of 12% in digital enrollments, 21% in digital loan payments, 40% in virtual teller utilization and close to 5% customer growth.

請翻到第 4 頁。我們透過「數位優先」策略對科技進行策略性投資，不斷推動創新。這使我們的員工能夠透過覆蓋全島的分支網絡建立更牢固的客戶關係。從數據來看，96%的常規零售客戶交易、97%的零售存款交易和68%的零售貸款支付都是透過我們的數位和自助服務管道進行的。這是由數位化註冊量年增 12%、數位化貸款支付量年增 21%、虛擬櫃員使用量年增 40% 以及客戶量年增近 5% 所推動的。

During the quarter, we launched three digital tools, all first in Puerto Rico: our omnichannel online mobile app that provides customers with a fast, easy and seamless banking experience across all digital points; smart banking insights that offers advice to help customers achieve greater financial progress. This reinforces our innovative position in the banking market in Puerto Rico with intelligent and personalized solutions and tools; and Apple Pay for both debit and credit cards. This is new in the local banking industry, giving our customers another option for easy and secure in-store, in-app and online purchases.

在本季度，我們推出了三種數位工具，均在波多黎各首次推出：我們的全渠道在線移動應用程序，為客戶提供跨所有數字點的快速、簡便和無縫的銀行體驗；智能銀行洞察，提供建議以幫助客戶實現更大的財務進步。這鞏固了我們在波多黎各銀行市場的創新地位，我們提供智慧和個人化的解決方案和工具；並支援金融卡和信用卡的 Apple Pay。這是當地銀行業的新舉措，為我們的客戶提供了另一種輕鬆、安全的店內、應用程式內和線上購物的選擇。

I'd like to add that our self-service portal, which we launched in 2023, was nominated for a banking tech award for Best Use of Technology in Consumer Banking, which is another first for a Puerto Rican bank. As you can imagine, we are very proud of all these accomplishments.

我想補充一點，我們在 2023 年推出的自助服務入口網站獲得了「最佳消費銀行技術使用」銀行技術獎提名，這對波多黎各銀行來說也是第一次。你可以想像，我們對所有這些成就感到非常自豪。

Now here is Maritza to go over the financials in more detail, then I'll come back and provide our outlook for Puerto Rico and OFG.

現在，Maritza 將更詳細地介紹財務狀況，然後我會回來提供對波多黎各和 OFG 的展望。

Thank you, Jose. Please turn to page 5 to review our financial highlights. All comparisons are to the fourth quarter unless otherwise noted. Core revenues totaled $178 million. Looking at key components. Total interest income was $189 million, a decline of $941,000. This mainly reflects two fewer business days, which negatively affected interest income by $3 million. Partially offsetting this were higher balances and yields on investment securities and higher loan balances.

謝謝你，何塞。請翻到第 5 頁查看我們的財務要點。除非另有說明，否則所有比較均與第四季度進行比較。核心收入總計1.78億美元。查看關鍵組件。總利息收入為 1.89 億美元，減少 941,000 美元。這主要反映了工作日減少兩個，對利息收入產生了 300 萬美元的負面影響。部分抵消了這一影響的是投資證券餘額和收益率的提高以及貸款餘額的提高。

Total interest expense was $40 million, a decline of $874,000. This mainly reflects the two fewer business days, and higher average balances of core deposits at a lower rate were partially offset by higher average balances of borrowings and brokered deposits.

總利息支出為 4,000 萬美元，減少 874,000 美元。這主要反映了營業日減少和核心存款平均餘額以較低利率增加，但藉款和經紀存款平均餘額增加部分抵消了這一影響。

Total banking and financial service revenues were $29 million, a decrease of $3.6 million. The first quarter included $4.8 million combined in annual insurance fees and favorable MSR valuation change. Excluding that, total banking and financial services revenues increased for the quarter.

銀行和金融服務總收入為 2,900 萬美元，減少 360 萬美元。第一季包括總計 480 萬美元的年度保險費和有利的 MSR 估值變化。除此之外，本季銀行和金融服務總收入有所增加。

Looking at noninterest expense. They totaled $93.5 million, down $6.3 million. First quarter compensation included $1.6 million in increase in FICA expenses and rates. General and administrative expenses included a $3.1 million volume incentive payment from business partners. This also included $1.2 million in higher electronic banking volumes and related costs as compared to the last quarter.

查看非利息支出。總額為 9,350 萬美元，下降了 630 萬美元。第一季的薪水包括 160 萬美元的聯邦保險捐款法費用和費率增加。一般及行政開支包括來自業務合作夥伴的 310 萬美元批量獎勵付款。與上一季相比，這還包括增加 120 萬美元的電子銀行業務量和相關成本。

Note that the first quarter included $4.8 million in early retirement, business retention and annual performance incentives. Taking all these factors into consideration, we were in line with our guidance of $95 million to $96 million in quarterly noninterest expense in 2025.

請注意，第一季包括 480 萬美元的提前退休、業務保留和年度績效獎勵。考慮到所有這些因素，我們符合 2025 年季度非利息支出 9,500 萬至 9,600 萬美元的預期。

Income tax expense was $13.9 million. The tax rate was 23.34%. That reflects an anticipated rate of 26.14% for the year and the benefit of $1.7 million in discrete items. Tangible book value was $26.66 per share. during the quarter, we bought back $23.4 million of shares and raised our dividend 20%. Looking at our performance metrics, efficiency ratio was 52.2%, return on average assets was 1.56% and return on annual common equity was 15.28%.

所得稅費用為1390萬美元。稅率為23.34%。這反映了今年預期的 26.14% 利率和 170 萬美元的離散項目收益。有形帳面價值為每股 26.66 美元。本季度，我們回購了價值 2,340 萬美元的股票，並將股利提高了 20%。從我們的績效指標來看，效率比率為 52.2%，平均資產報酬率為 1.56%，年度普通股權益報酬率為 15.28%。

Please turn to page 6 to review our operational highlights. Total assets were $11.7 billion, up 5% from a year ago and 2% from the fourth quarter. Average loan balances were $7.8 billion, up close to 1%. NFP loans held for investment totaled $7.9 billion, up 4.2% from a year ago and up $60 million -- $61 million from the last quarter. The sequential increase mainly reflects growth in auto and consumer loans US and Puerto Rico commercial loans and repayments of residential mortgages. Growth of Puerto Rico commercial loans included a higher level of line of credit utilization.

請翻到第 6 頁查看我們的營運亮點。總資產為 117 億美元，比去年同期成長 5%，比第四季成長 2%。平均貸款餘額為 78 億美元，成長近 1%。用於投資的 NFP 貸款總額為 79 億美元，比去年同期增加 4.2%，比上一季增加 6,000 萬美元至 6,100 萬美元。這一連續成長主要反映了汽車和消費貸款、美國和波多黎各商業貸款以及住宅抵押貸款償還的成長。波多黎各商業貸款的成長包括更高水準的信用額度利用率。

Loan yield was 7.99%, down 2 basis points. New loan origination of $559 million was down 9.3% from the fourth quarter but up 4.2% from a year ago. First quarter originations reflected seasonal declines in Puerto Rico commercial lending, partially offset by an increase in US commercial. We continue to have a strong commercial pipeline at this time.

貸款收益率為7.99%，下降2個基點。新貸款發放額為 5.59 億美元，較第四季下降 9.3%，但較去年同期成長 4.2%。第一季的貸款發放反映了波多黎各商業貸款的季節性下降，但被美國商業貸款的成長部分抵銷。目前我們仍然擁有強大的商業管道。

Average core deposits were $9.6 billion, up close to 1%. End-of-period balances of $9.8 billion increased $308 million or 3.3% quarter over quarter and $211 million or 2.2% year over year. The sequential increase reflects growth in retail, commercial and government deposits. It also reflects growth in savings, time deposits and demand deposits. Core deposit costs was 1.42%, down 4 basis points from the fourth quarter. Excluding public funds, cost of deposits was 1% compared to 0.96% last quarter.

平均核心存款為 96 億美元，成長近 1%。期末餘額為 98 億美元，較上一季增加 3.08 億美元（成長 3.3%），比去年同期增加 2.11 億美元（成長 2.2%）。這一連續成長反映了零售、商業和政府存款的成長。它也反映了儲蓄、定期存款和活期存款的成長。核心存款成本為1.42%，較第四季下降4個基點。不包括公共資金，存款成本為 1%，而上一季為 0.96%。

Average borrowings and brokerage deposits were $517 million compared to $426 million. The average pace was 4.32%, down 8 basis points. End of period balances were $421 million compared to $557 million. During the first quarter, $145 million in short-term repurchase agreement at Federal Home Loan Bank advances matured. Separately, a two year $200 million Federal Home Loan Bank advance was renewed at 14% compared to previous rate of 4.52%.

平均借款和經紀存款為 5.17 億美元，去年同期為 4.26 億美元。平均利率為4.32%，下降8個基點。期末餘額為 4.21 億美元，而之前為 5.57 億美元。第一季度，聯邦住房貸款銀行 1.45 億美元短期回購協議預付款到期。另外，聯邦房屋貸款銀行為期兩年的 2 億美元預付款續約利率為 14%，而先前的利率為 4.52%。

Cash at $710.6 million was up 20% and investments totaled $2.8 billion, up 2%. During the first quarter, we acquired $100 million of mortgage-backed securities yielding 5.40%. Net interest margin was 5.42% compared to 5.40%. First quarter NIM benefited slightly from the investment securities portfolio and lower cost of government deposits.

現金達 7.106 億美元，成長 20%，投資總額達 28 億美元，成長 2%。第一季度，我們收購了價值 1 億美元的抵押貸款支持證券，收益率為 5.40%。淨利差為 5.42%，去年同期為 5.40%。第一季淨利差略微受惠於投資證券組合和政府存款成本的降低。

Please turn to page 7 to review our credit quality and capital strength. Credit quality continues to be stable. Net charge-offs totaled $20 million, up $4.5 million. The first quarter included a $2.9 million partial charge-off of a previously reserved commercial loan as compared to the fourth quarter, which included $2.6 million in recoveries from the sale of previously charged-off auto and consumer loans.

請翻到第 7 頁查看我們的信用品質和資本實力。信貸品質持續穩定。淨沖銷總額為 2000 萬美元，增加了 450 萬美元。第一季包括一筆價值 290 萬美元的先前預留的商業貸款部分沖銷，而第四季度則包括一筆價值 260 萬美元的先前已沖銷的汽車和消費貸款的銷售回收。

First quarter total net charge-offs were unchanged, 1.63%. Consumer net charge-off ratio increased 62 points to 4.34%, and there were continued recoveries in mortgage and Puerto Rico commercial loans. Total net charge-off rate was 1.5%, up 23 basis points sequentially. Year over year, it was unchanged. Provision for credit losses was $25.7 million, down $4.5 million. The first quarter included $17.4 million for increased volume, $4.8 million per reserve for pre-commercial loans and $3.5 million to reflect our current loss default trends was a that.

第一季總淨沖銷額維持不變，為 1.63%。消費者淨沖銷率上升 62 個百分點至 4.34%，抵押貸款和波多黎各商業貸款持續回升。總淨沖銷率為1.5%，較上一季上升23個基點。與去年同期相比，這一數字並沒有改變。信貸損失準備金為 2,570 萬美元，減少 450 萬美元。第一季包括 1740 萬美元的增加量、480 萬美元的預商業貸款準備金和 350 萬美元以反映我們當前的損失違約趨勢。

Looking at our credit metrics. The yearly and total delinquency rates were 2.19% and 3.49%, respectively, both down from the fourth quarter. The nonperforming loan rate was 1.11%. Looking at our capital metrics. Our CET1 ratio was 14.27%. Stockholders' equity totaled $1.3 billion, up about $41 million, and the tangible common equity ratio increased 11 basis points to 10.30%.

查看我們的信用指標。年度和總拖欠率分別為 2.19% 和 3.49%，均較第四季下降。不良貸款率為1.11%。查看我們的資本指標。我們的CET1比率為14.27%。股東權益總計 13 億美元，增加約 4,100 萬美元，有形普通股權益比率增加 11 個基點至 10.30%。

To summarize the first quarter, net interest income remained stable as growth in loan balances and a decline in deposit costs largely neutralized the impact of two fewer days. Loan growth continued to do well in auto and consumer and US and Puerto commercial. Retail and commercial deposit balances increased as we continue to deepen customer relationships and grow our client base. Net interest margin was slightly higher than expected from higher yielding investment securities and lower cost of government deposits.

總結第一季度，由於貸款餘額的成長和存款成本的下降在很大程度上抵消了兩天時間減少的影響，淨利息收入保持穩定。汽車和消費以及美國和波多黎各商業領域的貸款成長繼續保持良好。隨著我們不斷深化客戶關係並擴大客戶群，零售和商業存款餘額增加。由於投資證券收益較高且政府存款成本較低，淨利差略高於預期。

Credit quality continues to be well managed. The trends are stable, reflecting the solid economic environment in Puerto Rico. Noninterest expenses were in line when you remove the effect of the specific items in the fourth and first quarter, Results also benefited from a lower tax rate and share count. Regarding capital expectations, in addition to buying back shares, the dividend was increased and our CET ratio provides us with a strong foundation during volatile or challenging times.

信貸品質持續良好管理。趨勢穩定，反映出波多黎各穩固的經濟環境。如果剔除第四季度和第一季特定項目的影響，非利息支出將保持穩定，且較低的稅率和股票數量也為業績帶來了好處。關於資本預期，除了回購股票外，股利也增加了，我們的CET比率為我們在動盪或充滿挑戰的時期提供了堅實的基礎。

Now here's José.

現在輪到何塞了。

Thank you, Maritza. Please turn to page 8. As you all know, we are navigating an uncertain environment, and this is how we see things today. On the one hand, in Puerto Rico, wages and employment are at historically high levels that this environment is constructively positive. Investments in public and private projects continue to flow and the economy continues to grow, albeit at a slower pace.

謝謝你，瑪麗莎。請翻到第8頁。眾所周知，我們正處於一個不確定的環境中，這就是我們今天看待事物的方式。一方面，波多黎各的工資和就業處於歷史高位，這種環境具有建設性正面意義。公共和私人項目的投資持續流入，經濟持續成長，儘管速度有所放緩。

On the other hand, higher levels of volatility due to macroeconomic and geopolitical events, if they continue, they will eventually have an impact -- an economic impact. Our team members are in close contact with our customers to make sure we have a good pulse on how they're adapting to the environment and how OFG can better serve them.

另一方面，宏觀經濟和地緣政治事件導致的波動性加劇，如果持續下去，最終將產生影響——經濟影響。我們的團隊成員與客戶保持密切聯繫，以確保我們了解他們如何適應環境以及 OFG 如何更好地為他們服務。

Turning to OFG. Our Digital First strategy is proving to be highly effective. We will continue to invest in and deploy new customer innovations to further differentiate our business model, increase efficiencies and, most important, help both our retail and commercial customers. Consumer credit trends are good, supported by a strong balance sheet and a well-tested leadership team. We continue to methodically execute our business plan and be there for our clients and the communities we serve.

轉向 OFG。事實證明，我們的「數位優先」策略非常有效。我們將繼續投資和部署新的客戶創新，以進一步區分我們的業務模式，提高效率，最重要的是，幫助我們的零售和商業客戶。在強勁的資產負債表和久經考驗的領導團隊的支持下，消費信貸趨勢良好。我們將繼續有條不紊地執行我們的業務計劃，並為我們的客戶和我們服務的社區提供服務。

As always, our results could not have been achieved without the hard work and dedication of all our team members. We are extremely thankful to them and excited for what's to come. We hold our Annual Shareholders Meeting next Wednesday.

像往常一樣，如果沒有所有團隊成員的辛勤工作和奉獻，我們就不可能取得這樣的成果。我們非常感謝他們，並對即將發生的事情感到興奮。我們將於下週三舉行年度股東大會。

With this, we conclude our remarks and we open the call for questions.

我們的發言到此結束，現在開始提問。

(Operator Instructions)

（操作員指示）

Frank Schiraldi, Piper Sandler.

弗蘭克·席拉爾迪，派珀·桑德勒。

Jose, just in terms of the digital channel. Obviously, those -- you cite some pretty impressive numbers in terms of transactional use. Are you able to see deposit account openings through the digital channel? Is that something that's ramping up? Is that something still yet to come? How is that --

何塞，僅就數位管道而言。顯然，您在交易使用方面引用了一些非常令人印象深刻的數字。您能透過數位管道查看存款帳戶開戶狀況嗎？這是正在逐漸增加的事情嗎？這是尚未發生的事情嗎？怎麼樣？--

Actually, Frank, yes, we do have online digital account opening, and it's through the service -- self-service channel. So yes, we do have that capability. And as everything that we've done from the Digital First strategy that we have deployed throughout the years, it requires us to be the kind of the educators in the market in terms of how things can move into digital channels and all that. So right now, around 25%, 26% of our checking accounts and certificates of deposits are opened through the digital channel. The rest are opened at the branches. So we're -- we have seen increasing trends there also.

事實上，弗蘭克，是的，我們確實有線上數位帳戶開設服務，而且是透過自助服務管道。是的，我們確實有這個能力。正如我們多年來實施的「數位優先」策略所做的一切一樣，它要求我們成為市場上的教育者，告訴人們如何將事物轉移到數位管道等等。目前，我們大約 25% 到 26% 的支票帳戶和存款證明都是透過數位管道開立的。其餘的都在分行營業。所以我們也看到了那裡的成長趨勢。

Okay. And then just in terms of the deposit growth from here. Can you detail any seasonality here in the first quarter? And could you talk about the timing of some assumed -- I think you had assumed some public deposit outflow in February. Just trying to get thoughts around growth from here.

好的。然後就目前的存款成長而言。您能詳細說明一下第一季的季節性嗎？您能否談談一些假設的時間——我認為您假設二月份會有一些公共存款流出。只是想從這裡獲得成長的想法。

Yeah. So first quarter is always somewhat seasonal in terms of deposits. We do have the tax refunds. The child tax credit also is part of the equation on the first quarter in terms of deposits. So we do acknowledge that the first quarter has some important seasonal components. But we are very encouraged with the way our online and branch network are moving along and growing our client base. So we do expect to continue to see some deposit growth from here. In terms of your second part of your question, which I forgot, if you can recall --

是的。因此，就存款而言，第一季總是具有一定的季節性。我們確實有退稅。就存款而言，兒童稅收抵免也是第一季等式的一部分。因此，我們確實承認第一季有一些重要的季節性因素。但我們對我們的線上和分支網路的發展以及客戶群的成長感到非常鼓舞。因此，我們確實預計存款將繼續成長。關於你問題的第二部分，我忘了，如果你還記得的話--

Just on the government deposits, I thought there was some --

就政府存款而言，我認為有一些--

Yeah, we have a -- yes, we have $1 billion or so government deposits that we expect to be renewed for another several months. So that is something that we will update every quarter. But it's still there and we're expecting to renew it in the next couple of weeks.

是的，我們有——是的，我們有大約 10 億美元政府存款，我們預計這些存款將再續存幾個月。因此，我們每季都會更新此內容。但它仍然在那裡，我們預計將在接下來的幾週內更新它。

Okay. And if I could just sneak in one more, just in terms of consumer charge-offs. Can you speak to -- do you expect, continue to see some normalization there? I know you had some commercial as well that I'm sure can be more volatile. But on the consumer side, just wondering your thoughts around charge-off levels and if you anticipate continued normalization on that front.

好的。如果我可以再偷偷加一點的話，就消費者沖銷而言。您能否談談—您是否期望繼續看到那裡出現某種正常化？我知道你也有一些商業廣告，我相信它們可能會更加不穩定。但從消費者方面來看，我只是想知道您對沖銷水平的看法，以及您是否預計這方面將繼續正常化。

Yeah. I'll ask Cesar, our Chief Risk Officer, to give you some color on that one.

是的。我會請我們的首席風險長 Cesar 對此做出一些解釋。

So consumer, we have two main portfolios. We have the auto portfolio, which is the largest one, and then we have unsecured personal loan. On our portfolio, we -- and both of them actually, we expected the trend to improve during this quarter because it's a seasonal improvement. Always -- the first quarter always good for all credit statistic, and we experienced that. So that was realized.

對於消費者來說，我們有兩個主要投資組合。我們有汽車投資組合，這是最大的投資組合，然後我們還有無擔保個人貸款。在我們的投資組合中，實際上我們預計本季趨勢會有所改善，因為這是季節性的改善。第一季的所有信貸統計數據總是好的，我們也經歷過這一點。所以這已經實現了。

On the second -- on auto portfolio, we are now seeing a stabilization too, on the recovery rates from the collaterals. I think a positive effect on the issues with the tariff that the customers are having an increased demand for these used vehicles. So that's a positive trend. So -- and the third part of the auto is that we're seeing vintages that have better credit underwriting. We tightened -- back in 2022, we tightened credit underwriting standard.

第二，就汽車投資組合而言，我們現在也看到抵押品回收率趨於穩定。我認為關稅問題會產生正面影響，因為客戶對這些二手車的需求增加了。這是一個正面的趨勢。因此，汽車的第三部分是，我們看到了具有更好信用承保的年份。我們收緊了——早在 2022 年，我們就收緊了信用承保標準。

We are seeing those better credit underwritten vintages coming into play for the net charge-offs. So this quarter was a positive quarter because we expected it, but it was actually better than we expect, of course, the quarter behaved very good. So next quarter, we do expect an increase and a slight increase because of the seasonality for the first quarter. But overall, we expect a stabilization on both portfolios on all required methods.

我們看到那些信用較好的承保年份在淨沖銷中發揮了作用。因此，本季度是一個積極的季度，因為我們預期如此，但實際上比我們預期的要好，當然，本季度的表現非常好。因此，由於第一季的季節性因素，我們確實預計下個季度會出現成長，而且會略有成長。但總體而言，我們預期這兩個投資組合在所有必要方法上都會趨於穩定。

Timur Braziler, Wells Fargo.

富國銀行的 Timur Braziler。

The security yields were up nicely again this quarter. I'm just wondering what's the current duration of the bond book and just some of the highlights on what's coming off, maybe from a cash flow standpoint in the next couple of quarters and where those reinvestment rates are coming on right now.

本季證券收益率再次大幅上升。我只是想知道債券帳簿的當前期限是多長，以及即將出現的一些亮點，也許從未來幾季的現金流角度來看，以及現在的再投資利率是多少。

Well, the duration, we have mostly mortgage-backed security agency paper and it's around five to six years, the duration right now. And repayments are coming around -- this quarter was $84 million. And we will keep monitoring the market to see opportunities. But right now, cash is yielding around 4.25%. So we will keep looking at the funding side and manage the asset liability as we deem more appropriate.

嗯，就期限而言，我們主要有抵押貸款支持證券機構票據，目前的期限約為五到六年。還款即將到來——本季已償還 8,400 萬美元。我們將繼續監測市場以尋找機會。但目前現金收益率約 4.25%。因此，我們將繼續專注於融資方面，並以我們認為更合適的方式管理資產負債。

Okay. And then maybe more broadly around margins, certainly held up better than I was expecting. And part of that was the securities yields, loan deals also seem to hold up better. Just where we are today, forget about the impact of additional rate costs, is there -- is the next move likely some pressure on the margin or maybe some of the bond reinvestments and loan growth could offset that. I guess what's the trajectory for margin here?

好的。然後也許從更廣泛的角度來看，利潤率肯定比我預期的要好。其中一部分原因是證券收益率，貸款交易似乎也表現得更好。就我們今天的狀況而言，拋開額外利率成本的影響，下一步措施是否可能會對保證金造成一些壓力，或者一些債券再投資和貸款增長可能會抵消這種壓力。我猜這裡的利潤軌跡是怎麼樣的？

Yeah. We shared with you in the last call that we have a range between 5.3% to 5.4% margin for the year. That range will move. It depends a lot on the funding side, particularly if the government deposit exits at certain point. Because we will need to replace with wholesale funding, which should carry a little bit higher funding than these government deposits. But as long as it remains in demand, I will see that range in the upper level, okay?

是的。我們在上次電話會議上告訴大家，我們今年的利潤率在 5.3% 到 5.4% 之間。該範圍將會移動。這在很大程度上取決於資金方面，特別是當政府存款在某個時候退出時。因為我們需要用批發融資來替代，這應該比這些政府存款的資金還要高一點。但只要它仍然有需求，我就會看到範圍處於較高水平，好​​嗎？

Okay. Great. And then just last for me. Any additional color for the specific reserve on the commercial loans? Were those mainland or Puerto Rico? And I guess any similarities across those?

好的。偉大的。然後就為我持續下去。對於商業貸款的具體儲備，還有什麼補充說明嗎？那些是本土還是波多黎各？我猜它們之間有相似之處嗎？

Yeah. So these are three loans: one in Puerto Rico, long-standing substandard loan that we placed in nonaccrual. And the other two loans are US loans. They're totaling both, in the aggregate, around $10 million. And they were placed in substandard, and we took the provision for that.

是的。所以這是三筆貸款：一筆在波多黎各，是長期存在的不合格貸款，我們將其列為非應計貸款。另外兩筆貸款是美國貸款。兩者合計總額約 1,000 萬美元。他們被安置在不合標準的地區，我們為此採取了措施。

Brett Rabatin, Hovde Group.

布雷特·拉巴廷（Brett Rabatin），霍夫德集團（Hovde Group）。

I wanted to start, José Rafael, could you give us -- I haven't seen a lot since the power outage last week. And so I haven't seen a lot in the press about what's happened with the Luma contract and anything else going on related to the power grid. And it seems like it continues to be an area of opportunity for more sustainable and cheaper power. But I just want to see if you heard anything regarding --

我想首先，何塞·拉斐爾，您能告訴我們——自從上週停電以來，我就沒見過太多東西。因此，我沒有在媒體上看到太多有關 Luma 合約以及與電網相關的其他事情的報導。看起來，這仍然是一個更永續和更廉價電力的機會領域。但我只是想看看你是否聽到了關於--

So the only comment I can add here, Brett, is this is going to be a long process. It's going to take at least a decade, and we are into a two year kind of or so privatization program. It's been privatized for two years only or so. So it's going to take a long time. And we're going to have these events sporadically. Probably in the summer, we'll have some too when the heat comes up and the demand increases because it's a fragile system. That's the reality.

因此，布雷特，我在這裡唯一能補充的評論是，這將是一個漫長的過程。這至少需要十年時間，而我們目前正處於兩年左右的私有化計畫中。它私有化才兩年左右。所以這將需要很長時間。我們會不定期地舉辦這些活動。可能在夏天，當天氣變熱並且需求增加時，我們也會有這種情況，因為這是一個脆弱的系統。這就是現實。

The other reality is that we are pretty much ready to cover all these issues because most of the businesses have power generators or solar panels, or they have been able to do what it requires to adapt to these unexpected events. So yes, it does have an impact on the economy. It was said that it was $100 million-some, the impact, because it was a total blackout. And it's unfortunate and there's no way to sugarcoat it. But the reality is that it's going to take a while to get this fixed from the generation as well as from the transmission and distribution to make it resilient, to make it low cost, to make it diversified.

另一個現實是，我們已經做好了應對所有這些問題的充分準備，因為大多數企業都有發電機或太陽能電池板，或者他們已經能夠採取必要措施來應對這些意外事件。所以是的，它確實對經濟產生了影響。據說，由於發生了全面停電，損失高達 1 億美元。這是不幸的，而且沒有辦法掩蓋它。但現實情況是，要從發電、輸電和配電方面解決這個問題，使其具有彈性、降低成本、多樣化，還需要一段時間。

Electric grid in Puerto Rico was destroyed by the hurricanes, and so it's going to take a while. And it requires execution by the privatizer, and it requires oversight by the government. And those are areas of opportunity, I should say, taking a bit of your words.

波多黎各的電網被颶風摧毀，因此恢復還需要一段時間。它需要私有化者執行，需要政府監督。我應該說，這些都是充滿機會的領域，引用您的話。

Yeah. It also seems like some of the some of the opportunity could still be there for onshoring, pharmaceuticals and that kind of stuff, but I haven't seen anything on that really either other than just talking about potential.

是的。看起來，在國內外包、製藥和諸如此類的領域中，仍然存在一些機會，但除了談論潛力之外，我還沒有看到任何實際進展。

Yeah. Correct. I think the tariff environment, though, Brett, does pose a good opportunity for the Puerto Rican government to position itself in a way that can take some share of the onshoring given the current infrastructure in terms of the pharmaceutical and medical devices, the expertise that we have, the educated workforce that we have. So all that should be good positive incentives and motivation for some of the onshoring coming back to Puerto Rico.

是的。正確的。不過，布雷特，我認為關稅環境確實為波多黎各政府提供了一個良好的機會，讓其能夠利用現有的製藥和醫療器械基礎設施、我們擁有的專業知識以及受過良好教育的勞動力，在國內生產中佔據一定份額。因此，所有這些都應該為部分在岸企業重返波多黎各提供良好的積極激勵和動力。

But I agree with you, it's been talk and not necessarily evidence of it has been seen. But I'm encouraged, to tell the truth, because the tariff is a catalyst for that. So being part of the United States is -- and our history in the manufacturing side, remember, Puerto Rico's economy is 40% manufacturing. So it plays very well. It will require, again, good systematic execution from the government.

但我同意你的觀點，這只是談話而已，不一定有證據。但說實話，我很受鼓舞，因為關稅是這一進程的催化劑。因此，作為美國的一部分——以及我們在製造業方面的歷史，請記住，波多黎各的經濟 40% 是製造業。所以它玩起來非常好。這再次需要政府良好的系統執行。

Okay. That's great color. And then maybe, Maritza, on fee income. Typically, wealth management is a little soft in 1Q and then stronger in 2Q. I want to make sure I understood the outlook for fee income from here. And then obviously, mortgage banking is tough to forecast, but I would assume that, that level also improves from here.

好的。顏色真棒。然後也許是 Maritza，費用收入。通常，財富管理在第一季會稍微疲軟，然後在第二季走強。我想確保我了解這裡的費用收入前景。顯然，抵押貸款銀行業務很難預測，但我認為，從現在起，這一水平也會有所改善。

Yeah. Okay. This quarter was better than expected in the sense that the banking fees were higher, even though we have two days in business activity. So we are -- this quarter, we were at $29 million. We shared with you last quarter that we are seeing $29 million to $30 million as the run rate for us in fees for the year. So that's how we're seeing the fees at this moment. And this quarter particularly was really active in the debit card transactionality and the POS.

是的。好的。本季的情況好於預期，因為儘管我們有兩天的業務活動，但銀行費用仍然較高。所以，本季我們的營收為 2,900 萬美元。我們上個季度曾告訴大家，我們今年的費用運作率為 2,900 萬至 3,000 萬美元。這就是我們目前看到的費用。本季借記卡交易和 POS 業務尤其活躍。

Okay. And then maybe just --

好的。然後也許只是--

If I could add just one thing here that Maritza just pointed out in terms of transactionality. We do are seeing a lot more activity from our customers and utilization of our debit cards and our services. So that is definitely very encouraging for us because it validates not only our strategy, right, the Digital First strategy. But it also validates that we are being recognized and our brand is gaining additional traction here in the market.

如果我可以在這裡補充一點，那就是 Maritza 剛才就交易性指出的一點。我們確實看到客戶的活動越來越多，我們的金融卡和服務的使用也越來越多。所以這對我們來說絕對是非常令人鼓舞的，因為它不僅驗證了我們的策略，對，數位優先策略。但這也證明我們正在獲得認可，而我們的品牌正在市場上獲得更多的吸引力。

Okay. And Apple Pay rollout, does that mean a lot to you guys transactionally from here? Or how do you think about the Apple Pay rollout?

好的。Apple Pay 的推出對你們的交易來說意義重大嗎？或者您如何看待 Apple Pay 的推出？

It's good to have, to be honest. It's good to have. People in Puerto Rico was not Apple permitted. It was just more of an Apple thing than a Puerto Rico thing. But we were, together with another institution in Puerto Rico, there were only two institutions that were able to get the Apple Pay available for our customers. And we were one of those. And we're proud of that. We're proud of that because we are leaders in innovation and technology, and we continue to improve it by delivering on a timely basis, even to the requirements of Apple, which somewhat elusive to some others.

說實話，有這個就很好了。有這個就好了。波多黎各人未獲蘋果授權。這更像是蘋果的事情，而不是波多黎各的事情。但是，我們和波多黎各的另一家機構是唯一兩家能夠為我們的客戶提供 Apple Pay 的機構。我們就是其中之一。我們對此感到自豪。我們對此感到自豪，因為我們是創新和技術的領導者，我們透過及時交付來不斷改進，甚至滿足蘋果的要求，這對其他一些公司來說有些難以實現。

Okay. And then just last quick one. Tax rate from here, any thoughts on full year and then maybe where it trends relative to the past two quarters.

好的。最後再簡單說一下。從現在開始的稅率，對全年有什麼看法，然後也許相對於過去兩個季度的趨勢如何。

Yeah. We're seeing a 26% ETR for the year -- for the full year.

是的。我們看到今年全年的 ETR 為 26%。

(Operator Instructions)

（操作員指示）

Kelly Motta, KBW.

凱利·莫塔（Kelly Motta），KBW。

Maybe circling back to the margin. Maritza, could you help us out and remind us how much of the asset base is more rate sensitive and impacted by an immediate reset on Fed funds, how to think through that? And how do you include that in the margin guidance?

也許又回到邊緣了。Maritza，您能否幫助我們並提醒我們有多少資產基礎對利率更為敏感，並受到聯邦基金立即重置的影響，該如何思考這個問題？那麼如何將其納入利潤指導中呢？

Yeah. In the asset side, the most elastic asset is the commercial book, which, right now, 53% is tied to variable rates and the cash. So that are the two assets that are more sensitive to the -- any change in markets.

是的。在資產方面，最具彈性的資產是商業帳簿，目前，其中 53% 與浮動利率和現金掛鉤。因此，這兩種資產對市場的任何變化都更為敏感。

Okay. That's helpful. And then it was -- it looks like the deposit costs are continuing to perform well. Wondering if you could provide an update as to the competitive environment in Puerto Rico. What are you seeing in terms of your competitors? Are -- is it still relatively high competition? Or have you seen pressure there back off in the last quarter or two?

好的。這很有幫助。然後——看起來存款成本繼續表現良好。想知道您是否可以提供關於波多黎各競爭環境的最新情況。您認為您的競爭對手是怎麼樣的？競爭還比較激烈嗎？或者您看到過去一兩個季度那裡的壓力有所減輕？

Competitors, our competitors and they are relentless. So I hope they stay the same of us. So it is what it is. But well, yes, the market remains the same, Kelly. We were looking out for the best for our customers. And on the deposit side, there were some credit unions that were laggards in terms of rates. It's -- that certainly normalized. And we're really happy with our core performance, particularly on the deposit side. We continue to grow demand and savings and time deposits, we've grown.

競爭對手，我們的競爭對手，他們是無情的。所以我希望他們和我們一樣保持不變。事實就是這樣。但是，是的，市場保持不變，凱利。我們致力於為客戶提供最好的服務。在存款方面，一些信用合作社的利率落後。這確實已經正常化了。我們對我們的核心業績非常滿意，特別是在存款方面。我們繼續增加需求、儲蓄和定期存款，我們已經成長。

That's driven primarily by not only existing customers, bringing in deposits and us deepening the relationship, but also new customers. We're seeing a growth -- net growth of 5% year over year in net customers, and that is also driving. There's a particular aspect of the deposit growth that is also interesting for us, and that is that we're growing noninterest-bearing deposits too in the quarter. So those are good indicators. We'll see how much of it is seasonal, how much of it is part of structural savings and deposits from the economy that we're operating in, in Puerto Rico. But certainly a pretty solid quarter.

這主要不僅得益於現有客戶帶來的存款和深化關係，還得益於新客戶。我們看到了成長——淨客戶數量年增 5%，這也是推動力。存款成長中還有一個特別的面向令我們感興趣，那就是本季我們的無利息存款也在成長。這些都是很好的指標。我們將看看其中有多少是季節性的，有多少是我們所在波多黎各的經濟的結構性儲蓄和存款的一部分。但毫無疑問這是一個相當穩健的季度。

And then I also appreciate the commentary about Puerto Rico being -- having a lot of manufacturing in the economy. Wondering if you've seen any movement there. Puerto Rico could theoretically be a beneficiary on a move to greater offshoring into the US. I'm wondering if you're seeing any movement there, what the discussion is on the ground and your thoughts around that as I know it's a moving target here.

我也很欣賞關於波多黎各經濟中製造業佔很大比重的評論。想知道您是否看到那裡有任何動靜。從理論上講，波多黎各可以成為美國離岸外包升級的受益者。我想知道您是否看到那裡有任何動靜，實地討論的情況如何，以及您對此的看法，因為我知道這是一個不斷變化的目標。

Yeah. It's too early to tell on any -- we haven't seen any movement to speak of, but it's certainly a good opportunity. And it's too early to tell. As you can read on the in the papers and online, the world is trying to figure things out. And we're not an exception. So we're also looking at what's going on around the world and seeing all the tariffs and all that. Right now, I believe pharmaceutical products are not being tariff -- additional tariffs. So it's still not yet being added to the list. So we'll see. We're seeing some good news coming out of the market yesterday and today. So we'll see. We have to take a hard look this quarter and see how things evolve. And we speak to our customers.

是的。現在下結論還為時過早——我們還沒有看到任何動靜，但這肯定是一個很好的機會。現在下結論還為時過早。正如您在報紙和網路上看到的，全世界都在努力弄清楚事情的真相。我們也不例外。因此，我們也在關注世界各地發生的事情，了解所有的關稅等等。目前，我認為藥品不會被徵收關稅——額外的關稅。因此它仍未被添加到列表中。我們拭目以待。我們看到昨天和今天市集上傳來一些好消息。我們拭目以待。我們必須認真審視本季並觀察事態如何發展。我們也與客戶進行交談。

As I mentioned, we were visiting customers particularly on the commercial side, asking them how they're adapting, how are they seeing things. And again, it's too early to tell. But they are definitely managing the uncertainties by building up inventories, making a little bit of a pause in some of the projects, but not necessarily putting a full stop. And those -- that's the color we get from our customers. And we're trying to make sure that we're as close to them as possible because that's what banks are for.

正如我所提到的，我們正在拜訪客戶，特別是商業方面的客戶，詢問他們如何適應，如何看待事物。現在下結論還為時過早。但他們肯定會透過增加庫存來管理不確定性，並暫停一些項目，但不一定會完全停止。這些——是我們從客戶那裡得到的顏色。我們正在努力確保我們盡可能地接近他們，因為這就是銀行的職責所在。

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

（操作員指示）目前，沒有其他問題。現在我將把電話轉回給費南德斯先生，請他作最後發言。

Thank you all for joining us on the call today. We look forward to seeing you in the next quarter. We'll have our shareholders meeting next week. So thank you for being with us. Have a great day.

感謝大家今天參加我們的電話會議。我們期待下個季度與您見面。我們將於下週召開股東大會。感謝您與我們同在。祝你有美好的一天。

This does conclude today's presentation. Thank you for your participation. You may disconnect at any time.

今天的演講到此結束。感謝您的參與。您可以隨時斷開連線。