FBP - Earnings call transcript Q3 2018

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

Operator

Good day, and welcome to the First BanCorp's Third Quarter 2018 Results Conference Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr. Officer. Relations Investor Pelling, John Please go ahead.

John Pelling

the Good Thank for the and for you everyone, First you, company's BanCorp's results discuss Keith. joining to conference thank webcast XXXX. morning, call quarter third financial and

from and Berges, Officer. Officer; today Chief Chief President Orlando FBP President Executive Alemán, Joining and Aurelio Executive and Vice Financial are

no capital as, begin we this is the projections made already forward-looking may materially access First important on factors update issued Alemán, At like certain Aurelio involve it made revenue, to assumes our call company's the statements BanCorp, turn obligation the and copy to during such of to objectives as due time, website release in I'd well can could our under the call. from responsibility company's not does latest presentation company's Before my call, structure, call Aurelio? earnings plans statements the business. SEC to to forward-looking have and differ anyone over a forward-looking statements webcast actual today's that by CEO. inform the as statements of you you If of any The results press the described this The at the filings. or them Firstbankpr.com. company

Aurelio Alemán

and Thank to you, everyone, XXXX John. Good joining thank us for quarter you morning, discuss the results. third

of franchise. quarter profitability actually and the the positive core report of We are pleased trends another to very more importantly solid

again our $XX million, $XX pre-provision million. was income XX% quarter the quarter net up at pre-tax, Our from prior for the was and

number we component. a which we loan our deposit our critical to achieved continue balance two, to objectives. Number is Importantly, Number three, we optimize and one, derisk three the important achieved growth portfolio in very continue progress sheet. in mix, we

Year-to-date the On tax in have economy sales sales opportunities. improving, and collections are say employment than enabling before gasoline most retail consumption looking metrics activities key up, improvement continues cement Puerto show storm. is up. our if up, are growth sales trends part economy are economic for better improving, definitely We rebuilding Rico are to the to that ratings are

there's earlier of So economy the approve shows and of the is new this an plan here that demonstrate that billion right a reconstruction week core direction. in fiscal disaster increase moving lot $XX The funding. relief in components

Now the island support billion, year's. over around suggests projection $XX which the will economy next

to positive requirements. to five While the we for believe of actually time deployed slower a But do you compliance on a with due basically more ahead we reconstruction funds pace this the view and the that's know will the expect know as demand why complexity because activities funds next one be inflow obviously execution, we over years. you

definitely continue delinquencies strategies highlight the of this to our Rico the They this hurricane. they improving Our continue portfolio for And Puerto by is $XX and and it's be continue a our was a in credit metric. stable positive assets. of Florida. demand million of reducing There we’re declined to continued reduction and over reduction us achieved assets itself into work definitely done see by progress in to even also continues organic non-performing X.X% important row still that the NPA to the get asset this ahead to now for Recognizing demand. these existing trend and the meaningful take in quarter, in with you traction the I quarter And we $XX.X and think resolution million approximately special work loan when assets. NPA, perform grew quarters. grew led teams. the When non-performing to million by of the consideration XX% we demand. at priority to look increasing driven investor is investor on know Portfolio third after interest investor excellent – there represent definitely sustain $XXX

we sales. During the achieved quarter,

held moved ratios the also capital are continues XX%. path. our Yeah please now continue loan move know almost X. to to With capital some build now the derisking to for three portfolio sale additional to key of loans slide four We now you

As the trend if back right, bar continues of in the we origination reflected activity in the go chart on to quarter fourth increasing XXXX.

Now residential be in third further trend quarter able and look million. million, and major and sustained. construction XXXX. chart. Commercial renewals of increased actually exceeds the to Long reached we that up pre-hurricane being the auto we see originations consumer expect to Every all already quarter at you increased $XXX $XXX and million categories improvement show, this $XXX we loan mortgage and to were levels when to

to or continues since the secondary We origination excess past region relatively deposit reduction in the the increased grew focus quarters. slide approximately our actually were the move over this activity loan they and this improve sales market. our by mortgage quarter, growth. on with time, look same actually overall but liquidity. hurricane, excluding portfolio this to impacted have deposits contribute If to million Florida quarter, corporation four a overall over At to X. book core Core progress on the million consider we XX% up now relation $X focus optimizing mix. deposit, to $XX flat. continue we'll to stronger past government, the at slightly by billion Please the were use $XX was our our confirming this years, let’s of driven The Our mortgage

still know the Rico. Puerto Definitely makeup bearing with deposit We to our XX% non-interest betas mix transformed of deposit brokered in and have our low deposits X%. materially reduced remain of you now

only quarter. basis total excluding up XX basis brokered was point points, Our X from cost deposit prior of

provide part continue to I more expect plan a on team and have capital But We for XXXX. get to X. it levels, I obviously capital unfortunately this to initial information Capital announcements. information not priority move slide remains let’s as said board. actions of Now do point, our any additional top stronger; our on the at the still during do management

anniversary remarks, Orlando. Stock additional corporation. a some call the as to New York have XX our also as Rico a I marks turning before listed XX October marks over anniversary So, company. It Exchange Puerto

this know journey. quite has You been a

We the and accomplish. are been pleased with performance team our has corporation to able of very what

We Exchange will made. mark, milestone year achieved one the closing our and storms to celebrate the the be contribution the Also, and York the September have at we very with recovery have New pleased of the October this devastating want the ringing we market highlight, that progress to Stock to XX. are on that impacted bell I to say anniversary

and of $XX dedicated credit hours approximate We billion significant year, by our volunteered We loans grew and to billion. in the past Over employees originated core facilities. deposits support our communities. renew $X

metric XX%, moved reduced direction in continues have assets We positive non-performing to build. by the billion. and Every our today exceeds $X.X capital capital our has and

monitor discussions those tax closely. of the franchise achieve discussions. With fiscal our continues final and are one to recovery and Needless opportunities results. fiscal economic economic Obviously, factors ongoing still that and continue island. proposal them us reform, still in are the deliver plan a is fiscal as also we’re we of we external solid say of operating challenges underway its There optimistic the about to on are monitoring growth must to stability execution there ahead to

deposit companies monitoring our of performance also in insurance supporting market. that are We’re

of of We pace have funds. to closely a inflows construction monitor of the

are could and which is working I closely Puerto with the believe of we there significant reconstruction for you we opportunities initiative, Rico. think know be importantly the

So, call for turn and to questions. with to the highlights later Orlando will over back that I I call over the go will

Orlando Berges

Good morning everyone.

highlight the are of I'll that we touch release earnings the key this on morning. some out So detailed on more sent

posted quarter share, $X.XX second million or net which with the $X.XX or a mentioned on $XX of $XX Aurelio As quarter. income second compares million the a

the to non-performing for to And from tied was loan for $XX.X losses. release loans sale. second losses is $X.X commercial the for reduction a million million in held this allowance transfer which quarter in quarter. of qualitative charge, related million to One million that from reserve down provision that $X reflects provision drivers million the also storm The $XX.X we're the key $XX an came includes

of the million, is Betas And the stands in to Even the grown that of by been significantly, is For And mixing over has consumer about million mainly was general and loss at which reserve in with remained points. deposits of seen of thing repayments seeing income for though, million, components, Overall, specific of it grew $X.X accounts $X.XX allocated. quarter $XX.X helping show. includes identified driven Other interest significantly at loans, non-interest a doesn't been have is rate what Aurelio related which on rate loans. clearly Aurelio some the portfolios little had for and percentage same points and showing we've up. commercial year. was has of mentioned non-interest was million in And is had expect specific September last the to liquidity liquidity risk million the carry down change hurricane allowance Clearly, release bit have and of largely we We of $X have overall $XX.X of Taxes effect from basis $X.X in over we to at we're as that one stable. significant was deposits for the which part tax sale cost, margin that XX reductions time which been improvement the improved pressure that that charge-offs. a interest higher net in quarter we the yields. excess Also some reducing the the improvement the use that small CD's, funding, also as it's is the which at volatile, expense basis mentioned was year The loans, deposits. personal the basically X.XX% the margin. was before. the in at to remain also a the portfolio FHLB we’ve XX grew have wholesale gain Its only of due increase X have year. effective other in which repayment construction achieved deposit level $X auto million, as research there the two repo was total Puerto a more in very of the the and need bearing agreement had and the key XX.X%, that of a of the loss. which advances related in income Rico brokered we sold improving the non-performing – the as

sold items other we non-interest we of -- in facilities income booked, were and and $XXX,XXX made see part a the that that’s insurance gain other we The branch quarter of were proceeds one this relocated had the had components. $XXX,XXX we

for were consulting are the in service and slight attorney’s were; or in results includes we functions. the bearing expenses validations approximately case review not mortgage fees, The so increases quarter, the that quarter. approximately as were that incurred every special line non-interest improvement Expenses slightly quarter expense This in of have deposits, fairly other affected the in in $XXX,XXX. $XXX,XXX quarter were items on also of The recur some increased had accounts. grown which last we servicing the from model charges

increased portfolio. As we to have servicing foreclosure mortgage the related actions

recall on that that moratorium an meaning government of the end quarter, second might the You entities, Ginnie at and foreclosure quarter. with Fannie, third moratorium of the the expired efforts beginning and

we So, the and in reinitiated significant we there. have of involved amount efforts some

in some – have electricity costs, and So, occupancy from quarter-to-quarter. on that some are also saw variability items mostly some increases

non-performing quarter. $XX status had collect non-performing. was which the also Aurelio of the have With did We million other to key some on $X on would of or properties it's to consistently the portfolio, XX% it improvement did the to charges higher, million There we've been the include were were show sales million of had remains our components. we reduction commercial up is million, so The collected. has and $XX X.X% we This average the in disclosed in made $X same the million. in hurricane cases of and other quarter The cases what to you in out Inflows At significant X accrual as million. side hurricane compared have were commercial mean, portfolio. to were last reference been which loans and prior of on our is components, XXX or have the which these we end as non-performing the outflows slightly throughout which inflows some which we year, I'll levels. from amounts $XX XX.X million at carrying was exceed Charges pattern million, amount We lower also got could that, we the $X and restored the of improvement quarter, non-performing seen almost allowance open took per exceeded collect of just held to after large migrated consumer of by dollar, have second were than which total loans. OREO of details year took and call delinquency for a a $XX.X of charge-offs million level to we that This the have the we migrated were sales presentation, down out points cents related loans large the inflows to at for average quarter $XX.X increase, of $XXX on at of that we $X commercial in the on down considering reductions reserve driven loans saw commercial stage for quarter, under $XX down represents questions. reductions high approximately our of sale. inflows are had of, million loans. million, largely And to the past, basis the continue $XX XXX XX we loans quarter, And had. million transferred Early inflows last -- but and X.X% non-performing. see I that the a of reflection represent the that for in the we've of still amount

Operator

The [Operator Ebrahim Bank with of from comes Merrill first America Lynch. Instructions] question Poonawala

Ebrahim Poonawala

can be last XX or talk points they decline, steps of sense about it you get just the X% to need may is to quickly this in Can one terms and first capital see basis that you get NPAs so lower there get going. about seems quarter. like So, just think down talk the return below went a to the to getting X% of how we this we if can about

that can get into your assets outlook? play in So, the capital return X%, and ability probably just talk if the interest to how you seeing you're to that will

Aurelio Aleman

that think I sure know no Yeah, make first we're specific all of clear there's that. you number and

know there's here. no Remember, relationship You civic also capital a with specific but a the number. excess is co-relation, there's consideration other

So, With look of the at have now. obviously the that counts. two equation, capital risk important of side think we its a I you inflows function to, it's profile, so outflows that, when it's also and

things the you that positive, some is know able definitely we on next we we You look investor that that show Based be today. will expect optimistic year, mention. point interest be are pace to at the way to that mark

with of obviously, as we're very could know and it's But judgment You working process. expediting use capital. we towards a reasonable interactive

to maximized achieving the value for we But while definitely priority assets here. a know You we our protect it’s of us continue the capital. progress

Ebrahim Poonawala

$XX or $XX go run the we million have the guess, tied having we And thinking part is made just I the been you're asset as be going could it about the first think that to provisioning to does it. of comments quality, million the forward $XX to year? Got it you back in or is on lower what million, rate

Aurelio Aleman

remember, also that’s migration the it's of in. Yeah, function

continue things higher migration the the if you were be was and good - quarter. migration estimate outflows for quarter end, for if lower your the on on are, end and the it’s So, functional they the was a really or the good really the but way it

signs positive that of see that support trend. we could So,

Ebrahim Poonawala

in still I way million expectation just terms think this right ex-OREO we outlook? can, I been think operating below that had with if Orlando for to about one is $XX And the it. Got of expense expenses expenses, for

Orlando Berges

the push as that. over quarter $X we've our Rico in Considering this so, the servicing – of other possible. Puerto that size items higher we parties million special level this to put of with have that clearly for some like continue you [indiscernible] and the OREOs. at and to beginning there in some dealing expense loans valuations. indication costs a mortgage average of a to incurred expenses analysis stage that the keep the servicing ongoing support the for in think and same excluding leasing But side. moral as pressure from third things than while were the on the expenses operations the of are those. for of additional what take try higher on We There some $XX have at process, implementation efficient we done we're few million But was Yeah, which kind do implementation

Ebrahim Poonawala

Thanks for taking my questions.

Orlando Berges

Thanks.

Operator

Thank you. Twerdahl the Alex Sandler O’Neill. next And question comes from with

Alex Twerdahl

morning good guys. Hey

Aurelio Aleman

morning Good Alex.

Alex Twerdahl

continue migration the the of questions provision on other more on kind couple the to you're on dependent and conversation just you provision seeing. trends A about of quality talked the that the being credit

kind maybe quarter that were give -- Can just bucket us was that reasonable size kind loans in looks inversely last of size how in of any think of number an expect you it that sort what the were sort told complexion you the number that classified the think pretty was sort of and the of for the be future? of update small. I I on us of classified the inflows of to would in the bucket adversely

Aurelio Aleman

continue have be of couple. in We in look other that There's Probably year we definitely, they know potential. but at at don't hand one the classification significant at to what years that still ago if monitor. hand, ago, when we could detail, a two less the loans that have we much years But not we ago, size that a with some two that in XXs disclose couple today. were we and relationships had you

into are take for have up. the forward capacity. portfolio should the we looking consideration that rates and be it today But less. is the migration, of So, coming definitely debt in the because Obviously to environment interest not what only

the the achieved now. that, portfolio, activity at at cases large but taking to all are that into the we look this borrowers in cleanup remaining have consideration to also We minimum

Orlando Berges

Is adversely have been as needs. migrating adversely any impact quarter you the to but classified there it's classified on been haven't significant any -- gone came provisioning out down, consistent the saw things and non-performing why there and that's in and the

Alex Twerdahl

sale think calculation, just hanging sale long sale the still side how expect the Would then for the reduction for held bucket? on that case highlighted REO the I you’ve come know Is demand other that for fruit. seeing the from the the as in you and today. And generally, some the held of NPA, low held Great. the stay of of and to kind you're loans you

Aurelio Aleman

of quarter we able moving quarter. were second the out actually things that the some think move the in to I early in or the were year in

resolution it's this So, more things quarters moved last a asset. expectation. is two asset. to yeah. in are really one the seen that quarter. by There there's of the prices now, some way enquiries expediting on Again, driven those, to the quarter. There is closer of that interest move same an incoming We cost Again, we we’ve lower

we them getting And some because were assets, value by we're themselves not working out. we and more are moving, working

So, the of level that that action certainty it’s them. sheet of interactive that’s on fact then have obviously, we a sale of certain things moving think is the reason we're and certainty process – believe we balance the we take of the asset out I moving for very the and moving

Alex Twerdahl

bit specific more to up a the clean to the we should time moratoriums? this the consumer related know, that But third to in pick at the just additional Got a book something, of it. quarter. in expect one-time point the And Or then I following of expected little end fourth with period up mean, of the that's some this of is hurricane the kind from charge-offs kind color we've think something you quarter. Is hurricane. I each charge-offs that quarter. the the associated just on is

Orlando Berges

when the look the It because for at included related in you was quarter of number hurricane this to the loans. charge-offs number the quarter bigger only a

included Typically, at like On for that side the card times, current realized credit start and items once saw moratoriums of charge-offs area chunk we more at portfolio XXX saw the the those bucket hurricane charge the up it's a before of some this that a cards on we consumer to the we we loans were bucket moving credit the of that we days. or every from grey have quarter month. but expire, loans

that the hurricane you It but the idea and clear time was in the relationship and portfolio, the business of related, expiration, on other portfolio, that little timeframes which some I of a and a be after charge-offs takes those cases a were months before So, and some other be it month of once portfolios to loans after that the whether with is of of six moratorium timeframes could current expired. parent six see the were eight also bit because personal the the impact. before There showed private of going the months auto to moratorium hurricane good depending the think don't up. gives you pretty of the eventually

Aurelio Aleman

really Yeah, of [ph] at NPA nothing well in horizon as early delinquencies and us look those trend portfolios. a that the there's leaves levels that when you

Alex Twerdahl

taking Great. my Thanks for questions.

Aurelio Aleman

Thank Yeah. you, Alex.

Operator

Thank And Capital with question Group. you. Merion Joe comes from next Gladue the

Joseph Gladue

loan about second rate loan on quarter all more guess, at I segments yields the is, we're average flat largest on the question either I'm yields of portfolio quarter. sensitivity. looking or third just and the yields versus and in the down in My portfolio interest

forward. the interest of or and percentage sort and what sensitivity of is percentage its talk expect far yields you going you're loan if and seeing remind Just and about talk a bit as adjustable of you us wondering what – about variable little could rate portfolio the as

Orlando Berges

originating the haven't much, the is all that view, the paper conforming a changed that pricing. being terms you on so percentage it of longer it's of depends So, as mentioned mortgage end we of sold. looking clearly What seen much curve and the we we higher you're change portfolio that at in if portfolio portfolio, hasn’t

much. this number changing at that So, level not is

the there do is have and grown are amount and relationship portfolio about we though floating with of payments is that an improvements. to some But the of we've on performing of two-thirds commercial your continue levels repayment, the or portfolios people of and have. On non-performing growth the see we can a floating, loans even excess the we we some should side, see what’s

large we repayments loans quarter components. about of were had This that $XX million of

So, have the affects portfolio side on but now of that pick customers some that deal can floating auto move, seen with not up, and – a clearly the understand. loans the clear They there rates The at we've with the will yield to going fixed as commercial you same so we personnel margins, are up portfolio, rate but higher on, rate want with pace. portfolio.

the see goes pace to because the and loans. fact prime the I don't LIBOR same You of points, the on not mean, rate already, basis up that immediately basis move XX goes points, XX auto so personal going up them

be portfolios. on going gradual increase more a of it's So, kind of to those

Aurelio Aleman

Also go Joe, the us makes back to loan grow X.XX% a was move that on from portfolio. important, year in and where yield the we quarter it The We X.XX%. it’s also X.XX%.

some which that fixed. them lower So, as consumer, component a more is grow more say, is We more it's of in grow rates. we are yield. effect in fix the you the commercials see CRE, Orlando also, other of and repricing mortgage But on base which versus

in you growing the portfolio. So, as of low in trying not the and we're sale to conforming that on gain We're focus the component. mortgage saw actually movement mortgages the

Joseph Gladue

they're originations, new take of the sort I’ll portfolio in Just on if it the – than generally yeah, put loan yields at higher on the our, average portfolio being yield. commercial

Aurelio Aleman

at rates are originations yes. current assessment, That's the obviously correct new

Joseph Gladue

you. Thank right. All

Operator

Piper question Thank next the you. Brett comes Rabatin from Jaffray. with And

Brett Rabatin

good morning. Hey guys

Aurelio Aleman

Brett. Good morning,

Brett Rabatin

the guess, of you I'm second kind CD's. their kind about you're balances flavor what and plan and just XQ managing from the of – liquidity maybe over a brokered kind they I you’re linked a for us deposits quarter what in more maybe be thinking back depositors? quarters? curious, with talk also we give of for atrophy saw of trends know and might some or little about continued using the inflows? then Are your seeing for few How I next just cash just of trends to wanted over go

Orlando Berges

know it's of be that to it’s happening market, I management. something Yeah, is it’s unpredictable. it's funds, -- Very know think timing but catalyst, you inflow obviously, in you dynamic, day-to-day going a the the a what's the

months first we year, that and significant obviously, in in So, reflected the funds had the was of the six bank. of that inflow was

big know participating collateral. government really become inflow they the on because that component You as side. they on still But funds there's liquidity a are of we selectively don't need

specific segment. you that excess But liquidity move on time. opportunistic doing as you we that for know know been on, we've we're So, carrying some

we So, improving objective very services with the continue linked with our brokered, products of and reducing it. products to [indiscernible]

on Puerto everybody knows On we betas money low. market the deposit Obviously, that accordingly. towards markets, money the with CD's -- adjust the high. the Rico the are typical betas remain And [indiscernible]

know So it's and make we that three say to have. I goes reasons you and out. know dynamic the optimize really as in to have almost decisions, see based comes you very we It’s every day on we what

payments -- related was more insurance still here have quarter significant have the will good reconstruction that accounts, and the -- to We on taking commercial quarter, grew today. based we had on outflows impacted the account, also this clients some we have more in You remain some also the but by customers during we we That know money. of customers place.

flow the quarter. impacted of in So, that also some the

we're growth. You know government There's that can to to the is you we our When after. to we core. our structure interest-bearing that to increases growth interest-bearing it goal Hopefully at the deposit with of of related consumer look achieved, was continue areas mitigate side. quarter the the some improve looking going that in the be the

Brett Rabatin

guys about talk to is what have that as the of talk is if had know implied stable? about up and two for Okay. outlook us that get I it for a you wanted Florida then about in an mean, you're past to you that. can grow an on you years bit you fair I I maybe think thinking loan Rico that, Puerto a for loan you and part that And kind I growth on about of think But impact portfolio quality have and to know XXXX, clean you it XXXX? can maybe is give about assume Or of may the

Orlando Berges

because important growth, think I at performing have also did when derisking mention, activity, loans mentioned. Yeah, that's our what obviously its look moving, how I I you its to

If on charges. of that and happened which saw what $XXX book, you the the and in know know grew and million Puerto we you look the know hidden gets at notes of also, some got Rico because we've you famous quarter got fact we that in you we got obviously performing kind NPA we

the book overall cleanup the will portfolio, I and you that the you the borrowed would look we're monitor loans quarter $XXX starting the generate prior obviously is how performing started continue impact moving because quarter revenue. to So, when should million at loans but with obviously we know you think

a that's monitor. So, that continue we to metric

we We trend. performing to continue the expect achieve would improving of our the share book. Obviously that

see enough activity continue. we trend that pipeline So, for to and

should are of you obviously, see growth growth the But others. pipelines, of the these looking of Some know in the opportunity we actually deals more -- take deals most way today Puerto that should an some be time that happen for than XXXX. we’re But of Rico. for

Brett Rabatin

the curious we've the I maybe seen some then new on mean, I'm last with the of past plan. changes just are the quarter Okay. just one announcements? you the guys and one And feeling about how overall fiscal outlook, that

Aurelio Aleman

made of additional funding at, brings becomes plan negotiation exactly the in The some and that progress look public. been there's recent being the the are at which into information you some plan. debt look We Obviously fiscal the agreements public.

of before, funding is the I timing of I kind the As unpredictable. mentioned think

repair know so it’s which we much reconstruction than far. know just is activity, more have that what You we activity, seen complex

predict difficult not continue developers know be increase. to to we time. We you The talked of a projects know demand when will projects going to going some starting We're some our So, some the of obviously Well We to to talked they're is monies it’s workers clients. fruition. to see little going reflected. projects these of these us. closing take to the necessarily come for will they're away, More construction go XXXX. committing there be to not to to just

need the that taking the structural achieved discussions the in are, building up is activity I to going what place be money that are plan the support is to think that really not critical minds there it. So, demands to of to political the and There board obviously reforms and stop. that's is fiscal

continue normal, would of situation. think the that it's I a the reaction probably as expected

the hand, have initiative. the I opportunities to also other So, mention I on on think

was final of ago. a Now published couple weeks guidance

island, seize We projects source to capital have investors to believe we're almost that Puerto trying could But so those of the Rico trying we to significant and don't classifies that also that’s the number With we the play qualified. coming see we're capital a the an reconstruction. opportunity opportunity. And in be private additional of seen we estimate know Puerto Rico, to all an it. recent capital for opportunity size additional the that

Brett Rabatin

Okay. Great. color. Appreciate all the

Aurelio Aleman

Thank you.

Operator

Bruyette Thank Manna come Glen from you. with question And Keefe, & the next Woods.

Glen Manna

good Hi, morning guys.

Aurelio Aleman

Glen. morning, Good

Glen Manna

the bank’s on Congratulations anniversary.

Aurelio Aleman

Thank you.

Glen Manna

I part Rico? Puerto your on So, in alliance. buying non-performers. Who because you I island. of kind on with in new the that kind was that I on you're my of that's going selling I now on come off coming And wanted was investor question touched another when just ask is what of saw tape investors incremental a to the some to guess you think the on

think just that? REO details of of and your kind some program? expectations around us are I course, of the cut your of, online? that Maybe if out [ph] RESNET give what And with some you

Aurelio Aleman

mechanism. they know to tracking on and you agile alliance, and just the software additional easier probably information we inventory our it to with and be more our implemented make able display turn Well,

effective know wider more more pictures, which more properties. more what REO the really access, you to on our a So, process know information is you inventory dispose

is. that's really it It’s platform. know what new technology a You

name participating know of capital I will them are of some capital but that know in the obviously there U.S. the investors, they of combination you money the of local and Rico. not are in assets, have disclose And think, So, capabilities they we in transactions market. prior Puerto

for kind were they on they hold active of on So, are buying and time again. some

of some So, that also local to put assets. based work some see capital that on they their that's to -- on and investors a specific see want the opportunities we

Glen Manna

could you math. Okay. check Maybe or just my whether

specifically you hurricane there unallocated about that in in was million reserve think $XX was about said $XX.X million allocated. I and left the

reserve about special have million taken, So, of about left hurricane? the reserve? for that? million $XX so original in Is does out reserves Or that right that that $XX on you math specific of two-thirds imply the my

Orlando Berges

million the we’re correct, it's $XX included against that charge-offs the the quarter. $XX.X reserve No, million taking this

large some But loans specific some a to balances -- that already allocated components. we're so it's And reserve. the that charge-offs taken, chunk of then gone from

on portfolio there its and of already loans, number is moved the remaining were the some big the specific that $XX part that the to reserves million. So, -- is reserves it's the

happened of end other depend like The the cases, will other at so part what one with any reserve. the the it’s on

Glen Manna

Okay. the keep DFAS hard end the Washington you've results the of could just days, out stuff you're normally of But release the these of and comes subject you me, kind remind all if track with And that submission still of to it's October. around it. to

the you're again or required So this will be case year not that anymore?

Aurelio Aleman

required, was billion that little bit basically a for $XX banks are or for $XXX all not billion. that No, we're on -- eliminated the higher

a So, different require But DFAS our submission we exercise do for for and DFAS the been I not purposes. to not process. own We longer a we're have years. year yeah would run stress anything this testing mean, do specifically. -- no or that from required our all internal to do

Glen Manna

that Would study be disclosing or the Okay. you results of voluntarily internal not?

Aurelio Aleman

are of Because to in those or some at scenarios we own No. industries put our purpose that idiosyncratic analyze for behavior.

planning why Y. X it's of very or more and kind explain a to try a know management of capital to exercise. you capital difficult So, It's

Glen Manna

you. Thank Okay.

Operator

And Instructions] next comes the question [Operator Arren Cyganovich Citi. you. Thank from with

Arren Cyganovich

returned, acquisitions is options mark the or in of it you of XX%, that your CETX Hi, kind I other to plans high talk if M&A trans could the level and capital? portfolio can are about terms can other capital have wonder you what do some of have if very excess what utilize just that you you

Aurelio Aleman

in other is there be the you to the but quarter. stay if capital obviously, know tell have open to Fortunately, know to capital or buybacks. specifics. There be the at stage opportunity dividends market first come hopefully review, to more this you the ways you don’t not organically. of market things some can see those there’s returning that Obviously, on opportunities we a we're obviously could we growth At position the by struck we shareholders end, to and organic if the fruition, some in

and more could is everything active have a the say I discussions So, it. but on there's that don't I very specific, you I give have we mix to matters. on wish the now

the more So, plans capital disclose have the beginning can we conversation the specific with to to of that hopefully year market. at

Arren Cyganovich

Thank you. Okay.

Aurelio Aleman

you. Thank

Operator

as to Pelling no now, like the And there for questions you. are present over closing conference more Thank I return the John would any to comments.

John Pelling

Thank you, Keith.

Stock at As closing bell Exchange on anniversary Company our as XXth XXst. New be listed the Aurelio October mentioned, York and celebrate the we’ll anniversary NYSE XXth to ringing

have December Sandler Beach Financials That months. week trip we’ll Conference Annual we’ll East Bank we conferences Services Investor their the XX. planned Rico same attending KBW O'Neill couple on of Xth. addition, attending be America Merrill on Future be of to November tours In the has Coast Financial the in Palm next November York. Puerto and investor New a in Lynch number of Xth, Conference On

Bank XX Additionally, will be to Puerto of Rico. December down America coming

you. those you look we continued and to forward support. number greatly conclude your the point, at seeing we So, Thank we’ll this At of appreciate events call. a

Operator

The conference now Thank has concluded. for presentation. Thank you. today's attending you

You lines. now your disconnect may

First BanCorp. (FBP) 25 Oct 182018 Q3 Earnings call transcript