OFG - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. Thank you for joining OFG Bancorp’s Conference Call. My name is Maria, and I will be your operator today.

Our speakers are, Jose Rafael Fernandez, President, Chief Executive Officer and Vice Chairman; and Maritza Arizmendi, Executive Vice President and Chief Financial Officer. A presentation accompanying today’s remarks can be found on our redesigned Investor Relations website on the homepage and in the "What’s New box," or on the quarterly results page. certain about feature and goals, may expectations. call forward-looking management’s statements plans This subject uncertainties risks risk statements to These are and of SEC factor OFG's outlined filings. section the in differ those materially Actual results currently may anticipated. from a to obligation afterwards. disclosed call that any disclaim result update developments We of in information this as occur background All lines prevent have on placed been to mute noise. After remarks, will a be there speakers’ the question-and-answer session. like the Mr. call to I over turn would now Fernandez.

Jose Fernandez

joining to us. you all, morning Good for and thank

for governor Rico third of measures quarter the had the end beginning earthquakes island. and on the show Puerto team I during to begin, excellent noticeable to want the challenging acquisition. down for on They’ve to COVID-XX economic the by these economy. At off funds pandemic Overall, commitment tough past on Before well. we like to the of see construction January, the big the a and the started dedication an the increase rebound mid-March, COVID-XX hit. Hurricane of begin federal to And times. thank all restrictions Then the the very to time, by start members job benefits their our and and it. Maria, These got shut the activity we related Rico Scotiabank I flow done Puerto same in with began stimulus [Indiscernible] second to economy enabled see an however, and the our pandemic. performed I'd Once relax picture. results OFG the we of

on added much on to the mainland. and rebound part quarter's provided impact by liquidity of happened Altogether, the businesses addition, the a than loan and has on benefits all increased economic bank In third what's basis beneficial been to this the deferrals, relative more the consumers. resulted in the

quarter. to agility created in of relates Bank communities take the and with resulted banking acting which able benefit interest margin production banking all crosscurrents with rate the in them we This Federal loan repayments. has net a to their cuts and dilution our a income of deferrals loans generation. growing digital in natural to activity loan and a been step in situation, encouraged Reserve increase our the and and the base increasing advantage of industry, continued dropped was the customers, third significant compared expand the deposits stimulus, to advantage grew By board of to business auto in the also economic into it of new number people. second translated virtually local customers March, The migration. of our noticeable consumers cost the rebounding in the and It sales, continue There second X% consolidation, quarter. liquidity increase XX% own amount Mortgage auto Taking to quarter. quadrupled, from combined to and fee customer the across large speed, in growth cash. we up OFG our As

Branches COVID Rapido, app ATMs Online at manage mobile manner. scheduling and contactless mobile Full tools online in continue transactions us enhanced Our possible as continue to commitment technology. these say operate and OFG. a continue our to branches. facilitate bill routine and make appointment customer paying safe meetings at safely, changes service, to enable we Facil, ITMs, to our by preparation Hencho and

to customers, help and the to see the addition, our continues In operating themselves. we're we in build futures better continue businesses our and leverage. strong we generated on starting and track, communities core as integration improved In for people Scotiabank stronger end, momentum financial

Let's turn to Page X.

number business among users, both increasing using but of and customers. digital also they our retail are see to customers strong mobile becoming are continued We More trends and digital an have features. migration online

the but to And asking photo COVID, September more loan deposit of Rico all like of branch have have we as and themselves, comparing to Digital commercial some in of drive using More convenience volume the why than Puerto January they scheduled are virtualistic. with and third ease would Retail they are in experience banking doubled. and customers this, them XX%. you money it payments increased year. when Clearly, contact these second accelerated the and to are strategy. Online take have due XX%. up new our a avoid pandemic, customers PXP a even deposits online paycheck transfers up this and can highlights play XX%. banking photograph. are write have quarters. you is almost more the nicely through, Why XX,XXX customers appointments through to would to mobile these positive our COVID These check, features during safe that retail a days? trends you are to Here

first the for and with to We make interact in easy we apply the customers easy continue for to ways forgiveness. a portal commercial for us look and financial way. digital Puerto and in new week, clients Islands to U.S. institution to agile fast help our launch our Rico became innovative to this loan Earlier an it Virgin and PPP

second million in the second exclude quarter, was the in merger of more with X.XX% the Non-interest second to interest to income increase cash balances. interest expenses was COVID-related to versus the net interest on core compared all Earnings four our quarter. the revenues million Total fell quarter. times tax Virtually, quarter. of attributable X.X% excluding $XXX to quarter year financial $XX $XX $X X.X%, and results. acquired X, while rose and was ago margin XX% difference compared $XX and start income from share in when net level interest in quarter, The than includes onetime per talk was fee million increased margin XX% a increase number $X.XX, interest million, XX%, of reported earnings Scotiabank the XX% recoveries about was from effective second the were recoveries rate more Let's significantly. Page to that costs. quarters, both We Net the than million. loans, second

periods, acquisition in. leverage billion, of $X.X repayment Scotiabank more due began in to those as from Excluding deposits million securities, XXX kick grew improved as increased both basis ratio the quarter, to the XX, $X.X increased compared as cash well $XXX than June and to loans deposits to from to second points efficiency the the billion. $XXX operating Customers’ million increased

strong We from result, asset million million. production a total As $XXX XXXX. exceeding this assets totaling Loan December grew to billion. $XX total $XX not do was level anticipate XX,

Excluding loans to institution. all regulatory Please $XX.XX. $X.XX for Paycheck a are on The is capital continued ratios X. Capital well-capitalized All excluding and equity the Page quarter third effects quarter book $XXX coverage PPP XX.XX% the of to build, September shareholders’ significantly production CETX billion. remain tangible building requirements third increased increased loans. increased second X.XX% Protection quarter, allowance million. XX, value The to above in Program we in share to that The this per is ratio $X.XX XXXX. was increased turn to

largely $XXX yield PCD now commercial points. Please the period tangible three COVID-related XX.XX%, the basis by X.XX%, the quarter, was X.XX%, consumer, Scotiabank declined End affected are due Return from mainly the second common quality loans, tangible and with related a and declines net lower $X the compared auto. net our ago on the mortgage billion $XXX balances provisioning, customers That the quarter, track XX year in all overall in from $XX that The highlights. adjusted and assets continued million points loan of non-performing in driven commercial $XX core are in consumer. efficiency only declined and is magnitude up the that XX.XX% to basis year. a In million The recoveries. business. brokered quarter, approximately Return loan on are Provision XX at mortgage XX.XX% increased and provision repayment be before PPP basis mortgage, due second the about ratio Page on excluding performance common equity increased. Scotiabank on the in but acquisition of interest increased to lending, sequentially. in points second ratio turn believe to quarter. as level. loan auto. was second XX operational from to average Page reflecting XX. to end by keeping under over, million than on it more watch performance of residential The points rate the due exceeding Please core equity of for $X.X million the yield million in an excluding from $XX was control, points. points cycle is to addition, Non-PCD now to charge-off provisioning was more to loan to auto, our improved basis Average driven Average the core acquisition. this stockholder Loan of declined most Loan XX cost came average second to to we declining is the order otherwise back by deposits of now X, Credit $XXX average basis deposits million, surely we getting quarter-over-quarter, and reported mainly from it. was turn top return XX%. deferrals basis. declined transactions grew XX the review on last basis loans improved key We this deposits close payment adjusted quality. On rate all million mainly X, declined billion X on declined basis basis. generation $X quarter, credit was

have for or more our program, if retail we retail As of customer recall $X.X June for relief for relief as loans. than processed XX% XX, of our XX,XXX you billion, customers

commercial we XX% on portfolio. in customers, have relief of our million loans, or commercial our $XXX about processed For

solid in As The total now of and I loans, of from hospitality losses loans. quarter commercial loan loans, lease $XXX relationships X% to most to of total relates and X. our are million X.XX% deferrals turn mostly for about Please earlier, to the customer equal is $X.X million to Page now longstanding, allowance that second mentioned industry. of increased the down

was XX. quarter. guaranteed higher in We're SBA the a to XX the Excluding in second capital points turn PPP Page position. Please very loans, allowance basis strong than

recent ratio to results believe XXX changing to capital as ability economic acquisition. quickly culture, our our as up basis we Please well Page conclude, now after last most to is the XX.To history, environments. and adapt CETX respond team and our turn demonstrate business, this to Our points Scotiabank approach year

of built in developed our the we pipeline and a strong and core second quarters, businesses During momentum third new loans. have

Looking at capital sheet, financially well-positioned strategically. and and balance our liquidity, are we

deposits billion, We sticky giving excess an us $X.X more of amount powder. core of significant of with billion dry than have $X

further to the From ongoing towards a the with Rico macro of environment pharmaceutical fiscal and enhance the continue and increased and Finish next a a the the working should back of Rico Puerto benefits on-shore full achieve integrating continue simplify continue board, to invest economic in should the serve by agenda favorable ability Scotiabank and stimulus to for by the economy. Our perspective, operations liquidity year, companies, enhanced remains Virgin to finally to role acquisition This customers, more by production from benefit Islands. of further creditors the future as the former yearend, same. the operations Puerto by end the be to rebound play significant resolution Puerto U.S. they our Rico.

that the economy incrementally further. will now are more confident improve We

the expanding and our results services people grow appears as all our this them, provide believe tremendous beginning challenges we be clear, communities, the year. brighter. to for and Crisis close to to dedication completing and best the the to continue Rico the integration. to move U.S.A., and help recovery. members in is staying be is Again, want still deepen the financial to to we look direction to for to Scotiabank customers what should able elections starting and conversion out COVID-XX, we their face commitment team right and potentially relationships Puerto I our By be economy we we bring and our future and the nascent enter But, our thank and in a Let's others. in excellent from

that this, Operator, start listening. we all formal you team Our day. With for presentation. Thank every end single demonstrates Q&A. our the let's

Operator

of Thank you. questions. Alex Piper line open Sandler. the for Instructions] The comes Our now Twerdahl first [Operator floor of is question from

Alex Twerdahl

Good morning. Hey.

Jose Fernandez

morning, Good Alex.

Alex Twerdahl

on I to couple margin. First questions off, a ask just want you the

maturities continue couple to costs It sitting the around guys the And of that over looked the case? based are points. how what the earning book book like CD could Is the of next are a almost basis really product come amount, deposits aggressive just set? When just I to opportunity quarters. you we billion same your now coming cost new get on coming at down, XXX. see quickly at And that paying seems $X.X Specifically, on deposit on is XX cash, tremendous on?

Jose Fernandez

you Thank your question, for Alex.

point. look extract And quarter. sure you later the way I first, year think it integration make know, so in full whole good we to far for we've is, the the we And the and in as conversion at of need coming been Scotiabank. benefits that's a in at the we this of acquisition this now terms the from

So, Scotiabank, for that We're expand had the we track given commercial sure focus come terms We to of are keep to of and make priced, the being be do we because how COVID-XX. cost and our a and that operate probably from it we more the also being we to longer-term. the of and will also by operation efficiencies make try starting we first operating the see we feel very look tactical from in But playing act want have our on next But we future, the extract back our it, normal strategy deposits on first. to that is Customers we acquisition relationship the full our retain of we on to address we customers. effects the and our strategic to funds know, in efficiencies should efficient. how we our market operations And how first want customers, foreseeable year. about not certainly, the strategy the and us, new delay at to of want this. are end only given And get our intention not close we with to we the you but accordingly. customers, are wonderfully, as retail with

hurry think play we shape, tactical that very a we're to here. not long-term, and any looking in game So, good we're in

Alex Twerdahl

reserve like drove a Okay, then increase reserve driven Can this little understood. by It over just quarter. for And auto portfolio. switching what mostly autos the seems at was a talk about looking the you it higher this bit what of was factors specifically, Or trends? adjusted? collection what else go is it in eventually quarter, increase? to sort And drove that look macro got drive you something the data there of lower? the that some to forward level And

Jose Fernandez

some you let I'll Yes, color. give Maritza

Maritza Arizmendi

during increase and -- it's the higher was Well, variable and the of significantly, there want one production always this Also, due was the I say increased quarter NPLs as Alex. Hi, level of to a loan we factor increase. to see is a volume, auto in our portfolio temporary of for the it.

So, us that's I for two think And drivers during quarter. methodology provided this required do increase the main the so. to we the

Alex Twerdahl

NPLs But the months? your the couple a Maria, that just offer attribute saw with and eventually collection can about sort played alluded you same then then us And little on what maybe Jose. Hurricane that of after sort And increase Okay. thing sort NPLs, and bit how in out? to just talking you you efforts remind of of prepared remarks, do a you just in re-turning the to

Jose Fernandez

than a that streets But Hurricane requires, the playing going So, that the cycle. the And back in Maria. need also over I payment it's there doing COVID-XX, think NPLs. is out, and script out the into similar of was little the pickup what side, particularly Maria, feel harder. two consumer in things. is We bit an is get dynamic this we're on people has to we're One a into the fact it's canvassing deferrals and were different that the the to and seeing and

think of get tools methods the utilized of it. we at curve kind again, cycle. So into payment everyone use threw to I some we of COVID-XX kind the that's that with a And all people and we how see

that an keeping NPLs. anything tells at a update incremental And we're us point next are you the But it. trends eye quarter's that we're any close to not or having results We we'll call. in seeing this give deteriorating

Alex Twerdahl

Great. questions. Thanks for taking my

Jose Fernandez

questions. You're your welcome. you for Thank

Operator

from Joe line Our comes next Securities. of Alden of question Gladue the

Joe Gladue

Good morning.

Jose Fernandez

Good Joe. morning,

Joe Gladue

you if color there. gains? drivers? in production wanted just on some ones was great, And of And the the a particularly than share with Puerto XXXX. could very if I mortgage on here that's But ask loan a little color with give Is the looks -- impressed in third the wondering the of originations, all to did growing guess, growth it there's drivers. first like more market that little you quarter first Just some the much about wondering the that to portfolio, report market Rico? the you're in us

Jose Fernandez

Yes.

quarter. a Joe, performer say, side the would I on great the origination was mortgage in So

you were month. million. million before I Scotia, we $XX million $XX million the As to $XX would recall, acquisition to say of $XX originating a

like we reached origination. benefit in acquisition getting lower to homes, mortgage where up to to pricing $XX it's originate. a part seeing the have So to $XXX quarter, of interest almost good rates also. we larger like Scotiabank demand And we're and closer that we're more starting is homes refi, see And pent for million million. also the this bids that and Certainly, from buy and platform

So mortgage into the that the originations side. all has on put increasing play

level our don't suspect to In have terms me share, like confirm. gained time but in seems some I with to market we have share that of at enough this But market it it increased looks share, in point we data the we've there. that market quarter, origination

from demand shutdown also I created mentioned third reopening. auto in my On the the really was the as the quarter from we remarks, and the the up benefited that and saw in side, initial quarter, pent

And with relationship fast the and serve we sales, that And new moved level. have dealers used as also that car and gain sales to auto agile sales origination auto as and serve. could great fast we So we we up. them went

out key from I seeing to origination those the I commercial we're pipelines contributors like while side side, steady, strong add small am a commercial world, Rico to type seeing we're can't two of to both. the facts. for it's overly the I are deny again, opportunities certainly business, and optimistic out ability them be increase. the benefits would that me, and all we're So, production of greater there. we're reluctant to seeing Puerto think loans, make but know we're you the there just the I the And stimulus provide on them and we our the and And and got also their the to strong steady And good on loans. into the be sure larger and And with seeing the originate grow translating of about We customers serve for to production us on relationships guys I commercial us.

Joe Gladue

to in how that margins, on affecting quarter? And the Okay. yields is what where for new the just are versus averages average production regards are the just production

Jose Fernandez

Yes.

are much probably with Federal the X.X% Reserve close we And the certainly to use seeing you consumer, that floors we're to side, is to it give there, XX% color providing but and auto and it's rates of So the on on the the loans commercial on conforming. also two is on because most the the by average we some it consumer, seeing side, both. between lower just mortgage, originating. commercial variable But on the a consumer of conforming, portfolios on originate on yield the discipline interest I'll if auto we’re lower and Bank, most sale among

variable, we're X% X.X%, X%, and On and commercial, seeing more double it's X.XX%, the use. small fixed

Joe Gladue

Alright. had. Thank I you. all That's

Jose Fernandez

a you, weekend. Thank Joe. great Have

Joe Gladue

too. You

Operator

Our instructions] Woods. Manna Keefe, Glen the of question of Bruyette & comes [Operator line next from

Glen Manna

morning, good Hi, good Jose, morning, Maritza.

Jose Fernandez

Glen. Hi.

Glen Manna

expected before be $XX.X we probably rate have a company. on little the that wanted just But think, kind happened that really the current customer effects given merger? banking on any rate the we COVID, I current really And to income would got the service that into merger fee lingering in is after never run I of the a or quarters would the on is combined does fees. the that quarter, just run what have good dig activity bit of the

Jose Fernandez

fee So, several on there. we have factors the income,

quarter. financial legacy longstanding a did have services business we know, that incrementally you better business, this As

the services, have all, as full and on we normalize of environment. also and and mortgage And COVID larger we're We from the a again, banking then activities and business we're activity. servicing purchasing going stabilize and to is see the own business a And on and reflection out a that reflection personal business, economy benefits start starting the to of of activity their business what doing customers activities, seeing back. the going

probably we're the look the do that very you the lookout, we're at see in now of to going And conversion, fee full starting what daily effects we're now. Because much when would systems bit quarter, integration, is we're on the visibility. So, and acquisition the of terms results the to income. we'll to this you a systems right more two given scenario. do imagine the have remember, we're basis, COVID-XX the running plus systems complicated better life given two pandemic And little on than a going

year, I that two on that keep And have why normal is with back banks. that's what this of have conditions saying add process this just that, I in to and not it, it And the So, our me repeating to accomplished can't standard and pride. because stop on I keep what fills we're operating integrating done team. we going we

of proud team. really our again, So

Glen Manna

when range? kind in expenses in Annualized, take and would looks on the suggest Is about the out you the And are merger And to that at Scotiabank internally? you of third cost annexed quarter, you deal? those the that point it XX% of And had million. second really the the $X.X XX% to that saves in expenses guided right $XX expenses, are decreased from cost if the and Okay. like that million COVID quarter we then deal. charges saves

Jose Fernandez

color. that acquisition, benefits much give to Maritza cognizant make working we just Scotiabank I want everybody I'll the environment COVID-XX extracting the all of of very sure are that but understands So, towards in. being the operating you But let the hard we're

give color you that. don't some So, Maritza, Glen why on

Maritza Arizmendi

Yes.

step And has during take planned we to the third to we have it. initial Jose of see this started started full was that so the far mentioning process quarter later consolidation. than advantage the we taken consolidation As

a savings. However, continue realizing this us to big version, for deal simple it's these expected

is completed be be could scheduled when run long-term. completed in year, the better will we visibility to have process what this that So, end the the rate by a we on of this

are of the looking leverage Scotiabank is that we potential position the that We operating are forward leverage operating the expecting. for

So, to end, and you quarter any the I for think in at would the share last key shape have visibility full the to savings, us with a would of long-term better I be be long-term run rate.

Jose Fernandez

Glen, you Having positive trends the said that, are as can appreciate.

we're the the We of just we expense through want trend. So go we to by the to go better have that how quarter make extract with lower happy benefits. and sure faster a fourth idea

Glen Manna

touched had you then, book down points XX basis basis yields Jose. it, down And were The quarter a XX points were They quarter-over-quarter. that. non-acquired before Okay. on

some is of now, repricing? LIBOR book on where repricing that back out much kind book of given of where would in how Given back all Or that LIBOR you flatten we expect? that

Jose Fernandez

the say is we lower to today, Yes, for I environment stay longer. rate would here as here this throughout mentioned call and stay to

rate I I yields portfolio. given we our of think of some we remnants baked all have lower environment in the loan in. it there's much So on But operate already still pretty think lower

but would yields quarters, see have a still we couple a where downwards, I significant trending way. So still that in loan suspect we not more

Glen Manna

'XX, ran. number the the of And an XX% XX% expect question It like, we probably the tax the Where versus on rate, about effective the operating in operating tax all adjustments in a get rate Okay. to the was through to just rate where looks go kind number. can then 'XX tax to XX%, when going to go we of forward? the you

Maritza Arizmendi

have a two asked. we won't did during that's anticipate Glen, can question, of that be glad higher year, proportions exempt the you good Well, years. that I'm I This income repeated next

a So, ETR at as XX% for to two next years. range of of a we're the normalized type looking XX%

Glen Manna

last question on reserving. just Okay. And then the

a in no that you about the You some high if you outlooks with that from reserved outlook? change max X% you're services, maybe the PPP, expect start to basis Do are talk And point, you could even guys, using outside at well or economic your of see you're to release? there's reserve maybe kind range. ex-PPP, we of charge-offs in mid Could here? little

Jose Fernandez

yes. well answer answer first question, we So, to reserved, talk is To the your are the macro. about

of we the of beginnings economic we encouraged for see Puerto kind a rebound, are Rico. future an sure, and see brighter we For and

As there still things uncertainties there's for and future economy tremendous the are have in and the there tremendous that sailings several to I Puerto challenges. said, And need Rico near beyond future. safe into are settle the to

we other, we to look outlook -- poses risk, credit the to and are play But beginning Puerto reconstruction future again, credit the that the longer-term live at we in challenges can want we that with have Rico. the the and Puerto this And so of how the the starting allowance years, pharmaceuticals look at safely. improving, the when macro a present. we that So, several I bring our the in Rico we still brighter the the stimulus particularly, in to as And or we the for make in is sure that is sure with but flow. feel tremendous really macro that to have they benefit from present out ship one way next funds

have We Puerto gross onshore to XX% around Rico. of pharmaceutical devices and to more medical domestic our more products production XX%

think point where it. the I to can to at too position a that tell, to you you to the answer we're it's good a credit, get it's I certainly early And be add in. if think, but

Glen Manna

if you. I a to the bring thank the confirm, there's corporate just change relatively by that? an still increasing point tax we increase mainland tax want on Am and rates. an just assuming Maritza, to wanted in taxes, I here I up see not thank guidance. mainland impacted all OFG be And correct in at in Okay, corporate rate, one administrations would on you that for

Maritza Arizmendi

because the lower income small. the Yes, we really than at that have it's U.S. so end, is proportionately anybody,

So significantly impacted. be we won't

Jose Fernandez

of Puerto in Rico. is Most business our

Maritza Arizmendi

business Rico. Lots Puerto the in is Yes. of

Glen Manna

that. for confirming you And questions. for my you taking Thank thank

Jose Fernandez

welcome. weekend. You’re Have a great

Glen Manna

too. You

Operator

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

Alex Twerdahl

for thanks taking Hey, follow-up. my

couple of during trends positive at of kind some more the Jose, you economic bit of you're So, little seeing constructive a that island. this and call, a and banking on seemed times the

to talk what showing could some that. you alluded signs housing But and wars of sort You've things more and you're seeing. a bit markets about like some of just recovery maybe little bidding

You there make been impact us What bit of the Maria, looking some can from you about on actually really the it is spending? increased the to at in flow been some cash Is increased hiring? a when you're sort starting ground comments? kind give Maybe terms of color following make little there those that it island. you is more talk of on

Jose Fernandez

or No, starting across seeing the to to And from we're CARES we're see And deployment benefits bridges. into play. seeing in and of and all the we're entire of the starting also after Puerto And of will couple efforts elections flow roads those the And island let's Act to put or funds four play the reconstruction also quarters. last the it also. call year. be additional expect Rico want a it, five benefiting number before however next CARES from or the we Act you call

in, in future having the spending certainly a stimulus will the moving. is and seeing constructive. there a economy will utilized. into is vested interest in more January additional, the on because getting government And them have for reconstruction to in be What they're we're change flowing they So, not coming help, funds just we're on ground simply funds seeing of coming those what

the a we funds to have terms in to in So, starting remained play. from. flowing of matter federal into the them island I of And where them the It's specific just the same. statistics of think that's kind put come

Alex Twerdahl

there Great. in well. thesis, executive updates We've and that seen which all you've the in repatriation And And the terms order in any from bills activity ground as on anything that to Congress been to the Has anything? thesis. the of increased of alluded shows terms then in pharmaceutical August? Trump there

Jose Fernandez

on very confirm Rico. on times you you nothing time ground bipartisan the few Puerto actual and see the No, that on-shoring. agreement less would see agreement But bipartisan

it Rico is game not time, also that end a do. and to of it's sending think certainly you to receive a Puerto it like just in encouraging. moving hurricane creating also better economic in that direction. the all a here and the played I the out to federal that certainly waiting for And that's So that's assist hasn't funds. about longer-term is funds in federal it's than starting And federal but it's encouraging yet, recurring And been matter a realize way. development government And lot in again, looks

Alex Twerdahl

activity? Have What other you seen Rico we've for or the looking a mean, I the as equity the Puerto money any seeing increased money -- about opportunities additional flowing Right. to island. private result economic of in federal been

Jose Fernandez

in opportunities, equity private looking Puerto of to Rico, seeing. because thing in looking same play and Puerto at into Rico, we're also they're firms Several the are that seeing

Alex Twerdahl

going investment just Interesting. an -- to I there but governor we mainland, a that committee in in And question going proposals year. me. are or get know any that in Are new administration Puerto for Rico, potentially be I of new there's of? not down there change also kind we're it's aware things a then administration a final as be a administration, circulating or believe, of around should change next to

Jose Fernandez

a ducks, are now politicians use in through in has everything really. because really Rico -- to the go in Rico guys you politics Puerto So, the will that board. not fiscal Puerto word are States, lame use I Politics and

that the to it's that budget the expect reelected, all So same board. in a through. fiscal if to But just end to a end day, kind day, here. more also. proposals I of out. old it's reality, to no fiscal past. go going want at to much talk. board they're the have whoever think going specific instructed play It's because the are in the I going done interest designed the happen, the wins, they that's own in the And the down to of of way and what's than realize have they're and political and with best sit And are But in event get their by But strategies they that will there we play constructive have at the pretty

Alex Twerdahl

I with Great. equity and a sitting on think, you're something liquidity still call on pretty the that buyback the XX.X% one additional got acquisition, the balance follow-up. just something a but the ask next reserve. Is or other And dividend major lot X share then Tier actually, XX sort a and table potentially I common digesting actions. to of capital And capital have question Obviously, it a sheet in six on months? and be increase of to huge returns could

Jose Fernandez

Well, billion options dialogue to a And we another us bank. strong, requires solid Scotiabank members at that's We management. we how joined the $XX look closer from And table. we our investments regulators, some all the bank. is that them capital some and have or least make it achieving be on very sitting now reality. in team able you to for a a being And that gives get us to of keep benefit and sheet. and with describe acquisition cognizant the put a We larger do And manage at we're that our that balance continuous options a us. in

things in as those remarks, we and financial strategic move grow make our in we capital. a decisions are capital will and at -- constructive the that bank strategic we look are are the position path rational all sitting to us that the have good So, in And defined. for I and prepared and said we

Alex Twerdahl

for you Thank follow-ups. taking Perfect. my

Jose Fernandez

Thank a you. Have weekend. great

Alex Twerdahl

You too.

Operator

further at to remarks. no like closing to back this additional turn floor showing I'm Instructions] for [Operator the Fernandez I'd any questions or over time. Mr.

Jose Fernandez

who I are thank great you listening. weekend. stakeholders our a Thank all to you, and you all wish operator,

have goes concern out this pandemic. from suffered those who Our to

soon it and and possible everybody Our hope ends as healthy. stay is safe that and

So, thank day. a you and great have

Operator

call. this conclude you. does Thank today's and gentlemen, conference Ladies

disconnect. now may You

OFG Bancorp (OFG) 23 Oct 202020 Q3 Earnings call transcript