OFG - Earnings call transcript Q1 2024

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Operator

Thank you for joining OFG Bancorp's conference call. My name is Jamie, and I will be your operator today.

Our speakers are José Rafael Fernández, Chief Executive Officer and Vice Chair of the Board of Directors; Maritza Arizmendi, Chief Financial Officer; and Cesar Ortiz, Chief Risk Officer. A presentation accompanies today's remarks. It can be found on the homepage of the OFG website under the First Quarter 2024 section. certain about feature and goals, may expectations. call forward-looking management's statements plans This

to subject the uncertainties call [Operator results now risks Risk statements information occur We to These are afterwards. to obligation and call result from currently go of ahead. to Mr. update like of SEC disclaim that any materially in Fernandez. Factors OFG's would outlined a filings. Please Instructions] differ Actual this over I may disclosed those turn anticipated. as section the in developments

José Fernández

Thank you for joining us.

reflected first both We businesses. across solid to long-term Growth report are plans. our short- our pleased quarter our XXXX all and with results, which strategies good, was and line in performances

activity, to entire and our Rico their Gap] consumer in achieve and Puerto Our balance well And Thanks do and levels to liquidity the to team reach their customer Digital First strategy Business to employment continued continues a rate progress. goals environment. communities [Audio drive commitment, our customers for strong in interest helping economy. our work engagement. acquisition hard and

X a Please Page quarter for to summary first of results. turn our

pre-provision X% [ Looking close more than expenses in in line $X.XX diluted was revenues million. at ] Provision Earnings $XX $XX.X increased net $XXX.X million, income year-over-year totaled line core Noninterest to were to interest the share X% revenues total margin was statement. per increase million. at a to Net in on million. at $XX.X X.X%.

billion up in held $X.X totaled billion, billion, year with quarter Customer were Turning were approximately the billion, investment ago. a and than and XX% $X.X to quarter $XX.X last less XX% X% balance year higher public for ago. mid-December. the than a last $X.X assets deposited from sheet. deposits level Loans funds reflecting Total

to million last Cash $XXX.X bill million quarter. to $X.X $XXX a sale quarter, the from fourth was billion, from mainly increased production treasury ] totaled Gap] position. down the [Audio due of loan New [

dividend $X.XX Digital Looking at new fourth XX.XX%, X our turn update share strategy. to XX% [Audio We was XX.XX% First capital. repurchase million $XX quarterly Gap] Please a increased authorization. in up The from an per for CETX ratio Page to on the cash stock quarter. the approved

and As quarter, customer retail growth. XX% This driven channels. XX% deposits transactions, all retail of of self-service being are customer loan through payments of XX% utilization digital and teller of and loan the enrollment, year-over-year first in routine XX% our by digital XX% in and X% in XX% payments growth being made of digital is in retail virtual

enables portal, our accessing automatic of accounts. CDs, is payments letters factor the account downloading strategy. managing digital mid-XXXX. bank which tax continued Another all manage you oriental and our savings loan It and in The can and for loans, self-service cornerstone is opening checking know, a deposit of and success servicing and as Customers and was portal, among applying for documents, loan things. other introduced

new Gap] quarter, manage exception. was to features, and and an IRA IRA quarter add this we additional [Audio not Every accounts funds. functionality

strategy First and this investments. to Digital continues of our All validate

and is to staff goal our increase technology to Our dedicated more use business activities. efficiency have to service, value-added development provide new more

Maritza the to the go in to on Now to detail. more I'd turn like financials over call

Maritza Arizmendi

from balance income components up to highlights. turn the Thank you, revenues, X% with review core starting million, Jose. the of was Please Page quarter. $XXX fourth to our interest financial And X total XX% of higher $XXX,XXX from benefited average investment, increases $X million and from an loans. basis and $X from were point higher factors XX a Investment Key yield. securities million from cash

reduced reflected this December. the brokered million. due funding. loans and factor average There point had $X.X higher were quarter. fourth X the XX% $X.X interest the ] [Audio banking government of Total by was reduced $XX interest $X.X This less million. was Total Borrowings insurance million deposited and this quarter, $XX first the in need which for expenses included million recognition to past quarter fourth of $X.X $XXX,XXX. higher a X% deposits the million yield Cash ] an compared declined the Gap] balance from funds quarter financial by [ higher to billion average full yield. day of a in [ wholesale fourth expense annual one basis The and compared basis This reflected a revenues and increase day service to effect $XX higher in commission million, balance and income X points reduced

$XXX,XXX First banking valuation. higher due MSR to increased revenues quarter mortgage

million, total Year-over-year, other on was mortgage $X.X the of to $X banking a noninterest sales million nonperforming which compared gains minor income management and loans. wealth increased There quarter, amount fee reflecting Puerto business in revenue was fourth included Rico up small revenues. of

They to the expenses. noninterest included facilities fourth and retirements workforce, totaled $XX million million $X.X due at rightsizing. of Looking cost $X from which quarter, million, early down the

We $XX continue of about million million noninterest $XX the per to of expenses expect rest over to to average XXXX. quarter

XX.XX%, The continue efficiency the low to in quarter ratio improvement ] from percentage mid-XX efficiency ratio was basis this the should [ point first range XX The fourth year. quarter.

metrics Our performance high. remain

Please in end-of-period $XX.XX equity was quarter, balances was turn operational X leveled. offset to highlights. the assets Gap] XX [Audio residential per by approximately balances our decreases tangible and March [ value on Page the on and X.XX%. balances consumer earnings. fourth growth commercial were increased billion, sequential were Average ] loans, tangible to Return in reflected to auto mortgages. $X.X average loan XX.XX% review and was average due Return (sic) $XX.XX retained from book mainly $X.XX share common

funds due residential entry in quarter. were quarter propulsion of fourth X.XX%, and sale on smaller Average was related deposits. by credit, of a loan and from line mortgages of XX% large quarter. balances conforming Commercial new residential yields up points from End-of-period of December Loan [Audio loans. paydowns deposits. public fourth the in yield offset lines $XX Gap] X% deposit variable rate reflected securitization in partially of $X.X loans, book. and in This million the of X points December. XX. core a loans from reflected commercial the compared to higher declined government commercial the of million increase XXX the decline the mortgage This regular to a Core reflected full $XX deposits the to deposit billion, basis basis new reflects cost impact increase seasonal XXX up reflected This takedowns first the was in retail deposits

was cost deposit XX basis Non-government points.

interest first the deposits Gap] deposits. of and deposits, for [Audio our quarter, As total deposit including bearing cumulative XX.XX%

$XXX fourth quarter. The XX%. to and million first XX $XXX in the rates million ] deposits, it government borrowings XX balance wholesale Average points X.XX% the in to quarter. was on Excluding about funding compared basis [ March paid decreased the $XXX deposits was brokerage were million,

expenses, Looking totaled million, anticipated. noninterest at net $XX interest they as was ] margin X.XX% [

X of longer, result, have cuts X X.XX% anticipate margin to range as net versus cuts. higher for this prospect now for year, we X.XX%. of fed we the With a guided a interest

and Page was off points points, nonperforming review strength. PPP million, [Audio reserved up our to and Gap] factors. Net charge capital One fourth [indiscernible] XXX to up from The was X turn credit $X net previously XX basis fully charge-offs quarter. loans. the rate basis quality million Please from million X $X.X totaled $XX

rate rate our The U.S. performing sale declined auto second a result the charge-off consumer while as commercial was of net loan. sequentially, increased. $X.X million the of The strategic

credit provision $XX net losses, at [ charge-offs. Looking million totaled ] volume for factors, to which related including

for specific related The million reserve quarter to sales reduction first loan commercial $X.X a $X.X million a separate was in substantially U.S. U.S. on which payments included the reserved offset by loans. received

Looking metrics. at other credit

consumer, were delinquency credit X.XX%, X.XX% continues quarters. the stimulus quarter of in cash the away, COVID to total respectively. lower but nonperforming than auto and X.XX% Gap]. at First last quarter expect was fourth lower be loan good Overall, early charge-offs net we [Audio fading rates over than increased lowest The rate X the with and and

and performed credit. charge-offs a well federal charge fairly well in as delinquencies the due strong net the Puerto economy tax to first and quarter as Rico's employment However,

equity at increased other and Total equity Looking ratio at our XX.X%. leveled to some of remained billion metrics. tangible capital $X.X common stockholders'

tax quarter of the rate quarter. XX.X% in decreased XX.X% first Our from fourth

year business to XXXX quarter first the was tax treatment code. under effective X rate while XX% The forecasted preferential tax unexpected due full with in Rico tax reflected activities higher Puerto factors: of

item benefit vested second discrete stock in was a for $X.X million the The first quarter.

funding continued balances To income sum during interest net deposits. wholesale to costs, the up, offset [ ] of despite government lower higher partially slight yields loans by on and interest quarter, average decline in grow securities, higher cash net first the This and reflected cost of margin.

declined commercial pay Excluding to due government of seasonal deposits, slightly reflecting withdrawals line ] deposits downs. core [

the the strength we anticipate growth quarter-over-quarter, the leveled based remain pipeline. loans year our on of balance While of over

continue to to gradually As should expected range, line were tax net interest should [Audio I our margin our improve, with Expenses credit lower. expected be mentioned, Gap] and look rate in

Now here's Jose.

José Fernández

Page you, Thank turn to Maritza. X. Please

for and [Audio positive business to is Gap] outlook doing both expanding. Rico funds is solid flow of businesses Overall, rebuild good. island's is activity pace. a continues infrastructure Our Local at the well. federal OFG. Puerto are The

for the We uncertainties, macro and interest to a changes, trends, inflation big conflicts. possible recession continue be vigilant global ongoing rate mainland

an keeping eye competition. the we're course, Of on always

Rico Puerto optimistic the are We and future. about

growth We employment. of economic to as look forward as and well business continuing overall levels strong

digital Consumer working. should Turning and to customer and adoption interest strategy is remain to pre-pandemic positioned higher-for-longer acquisition trends continue loan our benefit levels rate as a environment below continue to from expand. and well to well OFG. We're growth. as should client credit Clearly,

in customer-friendly technology, tirelessly work experience. customer customer continue needs we to deploy and invest to improve So and more to will adapt

to our our hard results dedication strong another of want have to and forward members. team in without closing, look we achieved that XXXX. all could emphasize work I In Overall, not year the been

marks Stock to Operator, excited Q&A. are presentation. our New end start in With XXth to come. them, anniversary our our Exchange. and for [Audio This formal XXth Gap] We York thankful year and let's business this, we're we what's the

Operator

Instructions] Rabatin Brett with [Operator to first go Hovde Group. We'll

Brett Rabatin

and interest-bearing intermittently. gone guidance, of XX to XXX margin I past I is I about the would has that suggest here. XXX up of with if the is think breaking to guidance kind about if start to that's basis cost margin bit wanted basis But year And full low the my of to little only the from ]. a call I margin if that the XX think the that correctly, about increase. funds quarters, And for few And points XX from [ points. versus to X heard think a that Wanted the downside of end

Puerto normal it of in the like more in or longer, longer so higher somewhat having seems on cost the is the Rico X. And impact for funding lower for quarter past an

it funding cost the from despite bottomed the that Just sure sounds to here. margin like Maritza, I that a increase make wanted Is guidance here, understood fair you assessment? is think and out

José Fernández

you pointed Maritza said. ]. is to that guidance So XXX the just out not Brett, [ XXX to correct, She said what

it's actually what of XXX, quarter. this So north is which we had

I clarify just your sorry of premise the that. And So to had I'm just you that. question. changed that

you want I know to So add again. don't a if question

Brett Rabatin

Well, that maybe past sure you here, can And expected costs that here. I about understood. to given funding in slightly what margin I expect would in to the had of? you the just the from margin be want X higher betas from moving from here? what to The with Obviously, rise make talk to pressure do we've maybe rephrase quarters. deposit higher a function is margin it, be

José Fernández

Yes.

the so. if see spoke do chime But X in second we as bit assuming level little we modeling she were a a after year cuts in X our cuts what's part and let you the on on time, the on are more specifics give guidance quarter the margin rate half needs if to last first of me of half when now remember, afterwards, So here in of year. second the we Maritza will high I in and the can going

while, end have we a have two, we you large one. mentioned So [indiscernible] the significant from be benefiting we going alluded, to . And the we're we're deposit That's and balance or [Audio that beginning not out sensitive, flow at in of then the the government and its call, of in for number quarter. second a that. quarter of since asset amount number been as is expectation entirety, Gap] the for the third deposit, our to sheet

answering So am that enough has on that color? we're also that Is I you guiding Is itself question? on margin. range how implications in -- giving the your a

Brett Rabatin

I Mainland net helpful. that's to for from of tax just a here? And higher, you like talk auto hoping I from heard wanted then you would know those. about color but that you auto just some Yes, softening quality to If a second have I expect for the returns bit were was have credit of or the XQ expected. on anything don't better little than would And do both correctly, specifically, levels around I attribute charge-offs if it sounds to the performed

José Fernández

had management that decision, So and performing U.S. portfolio on make that's commercial loan, just of what a decisions and kind a remember, risk we based risk we that's the we seasoned loan, was felt sale look the that of from at a it do we And sheet. balance our and thing management of saw. as perspective, what the right component certainly key was auto a to risk management, portfolio you

loan know, encouraged and you with quarter And book. lower As very charge-offs. our the levels around of it's XX% we're of first delinquency

on give Cesar do specifics we have a changes still couple how have somewhat but trends. So throughout auto we our with loan we because-- credit manage bit seeing perspective, we're little mentioned made from it And lot profile. last the some a more the has last years let to that book. of on portfolio good you I'll the quarter, It

Cesar Ortiz-Marcano

the highlight quarter of of to benefits. benefits quarter, [ tax but tax Maritza want year. the mentioned of first also the refund end credits, first I that the terms quarter holidays, ] that especially tax in the is seasonal always

to But those we strategically shift [Audio of our those in during the credit in you'll profile portfolio in and So credit since eliminated Gap] shifted seeing that years. portfolio the we portfolio. see XXXX, this losses benefits also, of higher tranches retail the the in profile auto benefits back improved that the due we

that's in the think [indiscernible] noted what's credits been now. I right So

Brett Rabatin

last Anything that we've you Okay. helpful. projects. stronger on And sneak Jose, -- if any of one. high-level maybe in would long then economy flows I year one That's or funds to in a stronger comments island could Obviously, you as seen lot that ever been, Rico. has than particular in is for in the more time. a Puerto it's highlight impactful the see things been happening this

José Fernández

kind back if step higher not pandemic we're you only is of pace hurricanes ago. think and of a when you Yes, funds look what in flowing certainly right Rico, the the look and let's a of the earthquakes second pace steady and in a But years Puerto at came the also out bankruptcy and today and macro at When at Puerto at federal than at about we accelerated couple Rico after it, here. seeing coming all. a

from you're now abroad private is internally. what seeing at well as work So capital as

and you're seeing buying businesses their So expanding, investments commercial Gap] coming seeing business in Puerto businesses. capital U.S. [Audio own businesses and businesses, Rico you're to expanding and

do So bankruptcy. out that lot off has getting a -- getting bankruptcy to with that

is of going that and there's one where Hopefully, think the eliminated, authority. XXXX I is electric will there to and bankruptcy the out be it needs forward, more this bankruptcy be for funds year federal well and power as sources. now diversified electric to of the as done on there right grid billion for that the strengthen sideline the are that to being is transformation resiliency continue $XX

bit if backwind Rico's So the coming to economy federal still work, engines Puerto forward, there's a putting capital are work, for businesses, and capital think you funds, quite of look private at too. in because I

about that's Puerto optimistic what we're exist and Rico, We're why that's banks and here.

achieve here are our We're them clients midsized support to support and We help commercial to and small trying our goals. and consumers their here clients. to

the good commercial the larger commercial side. a of of in commercial, have there, too. a we think We we strong have a on and but and So quarter. kind we business, higher kind middle pretty pretty on pipeline I a pipeline small strong strong pretty had that have also pretty just the quarter clients,

momentum overall, So Brett. we're good seeing

Operator

to We'll Twerdahl Alex Piper Sandler. go with next

Alexander Roberts Twerdahl

sort all able strategy rise. And the at all I like of just to you outlook. when it's guys to longer-term making, of through coupled envision growth look capital hard wanted continues to X rise, money it just being sort of equity And are to start and that deploy with just organic continue of to I common and they seems growth. XX% kind capital your levels, -- that you TCE above on Tier kind now

on have any excesses longer-term of the of thinking or the So of I'm capital couple how -- you're about thoughts in you sort updated kind quarters and deploying of years? if wondering I'm just utilization next

José Fernández

Yes.

So still here opportunities still us Puerto grow us We deploy you. we same. plan agree the Rico, us see the see opportunities for game relatively in to in for to and here remains Puerto Rico. I for capital with

lot capital. We of have capital, a a generating and lot we're of

dividend. strategies. increased So we return also the capital We have shareholder

We We repurchase than operate our continue premise capital fronts. But with in I that. on is our we the X in opportunistically executing We to and the terms capital $XX higher available general, also to us, states. a agree will of your deploy announced program at all Board we -- accordingly. look with it expect peers and in be that announced generation levels to of million

Alexander Roberts Twerdahl

deploying Okay. look I of or towards Puerto to to years opportunities growth sort do something in when outlook chances the favorable, Rico, in couple would U.S. absorb likely? that's of the I those mean, the you more excess? that I continues sort see Or Rico, that be expanding balancing you all you be see Puerto a bit of mean more sufficient I bit guess which talk next in over of little about you as the little is a guess, the

José Fernández

Good point. Yes.

the that years. you the X we As been X, growing we know, for have have U.S. last business

will profitable a very in It's to us. business good invest for been We continue that business.

opportunities. see we So

Rico, Puerto -- Puerto it's U.S. good is growth. recognize resilient and some And U.S., more being economies also the that the way. that the decoupling is by these although for days showing also Rico is from We decoupling steadily

Rico's little bit in choppiness upwards, we see U.S. a Puerto and to we trending continue economy. the somewhat So expect economy

investing some U.S. there. deploying and we will for be general, be So more capital cautious In also business. we will the

Alexander Roberts Twerdahl

and levels Okay. seem And if recognize numbers And and of then I a frame the it sort commentary I there's we're maybe to hoping consumer And and of some net jobs salary charge-off the and more the auto that, the us unemployment us significantly level on Rico. on it you out? call of all with that that deterioration, in all in also was numbers continued kind just where has that still consumer on last than consumer -- the should just to help consumer better square could expect Puerto you that the bit normalization be the of even kind then give on little just been in on stuff you seeing the the all in side the that the strength and kind of credit suggest wage numbers couple can years. going

José Fernández

give let consumer look both to Cesar have and details. you some I'll the But by own when you loss itself, in auto, that content of and thoughts, our portfolio, I'll different some add you at auto So need recognizing start then unsecured. you a loans, Puerto -- One there Rico secure it's at one. types car. in to different also auto look a loans. of own it's Number number inherently, other the two, is and the necessity are That's when one is

know, and transportation you that As mass Island stuff. the don't all have a we in

So loan And prioritize you're is divergence. consumers why payment. that seeing the auto

again, historically auto. kind the levels we between see you is of low. consumer well, doing natural are back Puerto unemployment a in economy same Rico's But come place, to same the And land divergence and

prepandemic portfolio to not are back So to worse. neither seeing we or go

XX,XXX-feet auto you has of Cesar kind little more portfolios side because consumer are worse We out. already the kind been taken general, and than side. it's give levels. in performing on my of not stimulus away, gave we're But of the upwards flowing inching the those certainly, that's kind bit on some pre-pandemic let seeing seeing because But a trending, I'll them details view. of

Alexander Roberts Twerdahl

that so as better macroeconomics, shifted portfolio as be [Audio Yes, that, [indiscernible] to than [indiscernible], the the level. don't mentioned, with I coupled the we portfolio. deteriorate have, we also and outlook that actually we it mentioned, we strong prepandemic expect consumer to with Gap] it prepandemic we expect

As I to prime. XX% before, mentioned XX% prime from the

because level So going better the that than prepandemic be outlook shift. for auto of . to is

José Fernández

are what auto, lower around you're had than going we before consumer X.X or is again, have, And that pandemic. In so in net of off the a charges now, we're in also X% significantly terms portfolios. see to both very right and we these the for high-yielding what lower past

very both the portfolios. happy we're the So of with and performance profitability

Alexander Roberts Twerdahl

the anyone before just was pandemic for if -- if mind with I going know on of getting XX, call up same you prime I the if think through the issues it breaking auto so every you just XX don't for percentage consumer today, I the is Would and but kind else as or sure that wouldn't to well. that was to said often,

José Fernández

. auto. is This

Cesar Ortiz-Marcano

XX% it's portfolio, the from portfolio. [Audio and auto Auto portfolio The XX% always shifted now prime portfolio has XX% consumer prime. Gap] been

So portfolio I'm a that is portfolio. why and that's mentioning prime, superprime still have consumer the

Alexander Roberts Twerdahl

if back And how Rico X of then? of were also yields up to give then of refinancing think commercial real X.X% of yields in handle? roll real of final the market just structurally with that on you Or terms us a there also can one were us, little kind just the on just estate loans and with up If higher in I'm low as XXXX yields loans just look one -- And X I put -- credit. here XXXX next they over couple Okay. estate a kind they is X.X% question, the curious going on yield commentary as concerns loans just bit being from just risk has we as and or Puerto big fared of remind the years. commercial back then little the in to recently? X%

José Fernández

double on X.X%, our much estate book. We commercial type don't have of real the loans. not CRE X% type yield that last We I'll on first. take the part did X%, of

hotels, I shopping retail diversified, in something not have contend industries, a diversification with. would of have that and from book. CRE several is to the space another hospitality, one then we centers. is -- very comes it's say, So And we one general, well-diversified Most the

$XX million are occupied, around space. have in loan-to-value. we XX% these office This nonowner is XX%, and then And

good seeing We in have the We're Rico XX-some for market. occupancy, stress percent matter, commercial Puerto and on in that we have book not any our coverage. estate the real

So different gather. here Rico I story you're what from in the it's what versus a states seeing Puerto can in

Yes.

the for intermittency. know brought Sorry also I up. Brett it

Alexander Roberts Twerdahl

I'm can nothing it. you there's do sure Yes, about -- nothing

no worries. So

Operator

next Instructions] Motta go Kelly [Operator We'll to KBW. with

Kelly Motta

The of lot as activities this that discrete tax know rate related was mentioned, a mix. tax lower I mix a in benefit but had also, or you advantage to business quarter. there, it the you And was you partook in

wondering lower? So good about in as might prior a overall just still how look we Or be a the rate a if we mix, ahead, rate? be year if tax thinking bit should is it given run shift

Maritza Arizmendi

Kelly, question. XX% a rate for I in expecting thanks remarks, as effective for we full the shared tax are the my prepared And now year.

what a that's decrease we from last saw year. So

yes, rate So lower for see year a tax we the of full XXXX.

Kelly Motta

year to you -- prepared All kind you Two, discussed continuing I said you assuming throughout to believe growth, economy appreciate previously, growth loan your from right. X% X% color. expect grows the of had X.X%. the in I X% remarks, And the here about

if of you to kind Just drivers can any shift where see growth wondering you in sustain? as what of the ahead? the growth outlook And Yes. there's

José Fernández

higher from the there, are growth shift And the year. we No you the pipeline a growth and as seeing to commercial this have for business. the contribution to we're quarter, opportunities seeing, mostly We seeing Yes. see quarter. first the X% also expecting have auto, origination We're in and we're commercial to saw some a pretty in than we outlook. the consumer And in good the seeing there. we're X%

Kelly Motta

what mean final Got before been I somewhat is with margin from seems the growth expecting for than we it. guess, outlook That's really me. had helpful. like here. question I better it

we you net-net, may changed know versus range the ahead, part we that the to in your the had expense said hasn't be lower It I outlook As of that given end. ratio seems look low higher efficiency mid-XXs.

out Just you're where how what end could fall managing ahead, we us you're to or lower about of we higher thinking wondering that could kind of get look how the kind as range? and of

Maritza Arizmendi

will about about well think when of expected that probably high to question. are rate. also in be when timing other think think end, And and going range. time range of your the we of be be investments the that think deployed. we that haven't [indiscernible] I the I most Yes. Well, I very instances, lower understand NIM. the we in But in we At to continue end expenses, and would the But

I course, think as see So I anyway, $XX lower that. $XX to continue to need don't we the I And in expenses, we see million, think investing I range, strategy. the continue that's million to being our than mentioned, of

Kelly Motta

Got it. one my of That's this questions then at Most I'll step asked and answered back. helpful. Maybe point. last me, been for have and

margin how at rule have that? on [indiscernible] kind any near term. if the on to there's impacts thumb of know wondering cuts you're Just any of I as Do sensitive of rate bit, least a each said you kind -- you had still asset

José Fernández

has the sensitivity, get details that our shared us sensitive. the locking when that in And being in side the we're we market. portfolio, timing will higher update you'll duration see, asset out but a level. as investment helped you And on we reducing the that the rates I still file XX-Q. We you'll it investing kind gradually longer on XX-Q the at and with asset think But of of we it see XX-Q, that's when file the we because been the have opportunistic

Operator

Sandler. We'll Alex Piper [Operator with Twerdahl to Instructions] return

Alexander Roberts Twerdahl

on the follow-up Just X NIM.

end portfolio? get that large chunk early sales is in government or a to get replaced think second, you third you are borrowings? deposit mentioned out it I with flow the does with think that managing of funded quarter. Or about the good of out flow thinking going outflow? How you about when to Just that Does the it's and going securities

José Fernández

. I'll give Yes, let details. you Maritza

Maritza Arizmendi

think we have the we have did quarter, we -- we increase some -- about this we did this, experienced When Yes. as in deposit side.

are We funding. that part of that would replacing that grow, to be deposit expecting

do will we matured we the about We about in in think treasury you April. And that have if the notes will in million funding. and maturities use about in May that now that portfolio $XXX mature already have million wholesale $XXX investment

do some of through and effectiveness to exit we So the fund resources replenish have plenty cost that in there of could the be process.

José Fernández

And into merging we're completely not taking that guidance. our in consideration

Operator

there closing At no management the call remarks. turn over I time, will to questions. are for this further now back

José Fernández

Thank a to day. and members, team for Thanks everyone thanks our you, to operator. Have again listening. all great

Operator

Thank issues experienced for you. gentlemen, we thank Ladies for event. participation. We and audio on you your the apologize today's

a great disconnect at this day. You time, have and may

OFG Bancorp (OFG) 18 Apr 242024 Q1 Earnings call transcript