FBP - Earnings call transcript Q4 2020

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Operator

Good day and welcome to the First BanCorp Fourth Quarter and Full Year 2020 Earnings Conference Call. All participants will be in listen-only mode. 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 John Pelling, Investor Relation Officer. ahead. go Please

John Pelling

year Good First Alyssa. the and you and thank financial Thank conference morning, call joining fiscal quarter fourth BanCorp's for discuss XXXX. and for results you, the everyone, ended webcast company's to

Aurelio Joining Chief President Executive President Executive BanCorp Officer. Financial Berges, and and Orlando Alemán, Chief you and First today Vice from are Officer

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

Aurelio Alemán

with the many with the accomplish morning, discuss by you, and with challenges advancements acquisition the was able share, customers. September results closed has on highlights expanded XXX,XXX our technological healthy wish for our you of X, our XXXX. proud was Rico, position our the now team for year. in Thank market all the our a year Good of that over everyone, the XX% to I'm joining truly transformational pleased the John. in for definitely overcoming a slide posed the pandemic preparedness. to operating on Please, with reaching thanks customer our Puerto growth also year our and today. to the pleased base, further We're very in four what which very company We year. let's solidify really And data We're It all environment. move

with digital and We end digital continued parallel were so reaching an be the over It we the integration to we very and to planned and summer. increasing by has XXXX adoptions in digital the over increase schedule focused definitely is to driving technology as channels improve for XX% been running progress completed continue continue transaction clients' logins in a infrastructure year. Our of efficiency and on on in XX% investing is and projects priority of the of integration. during

The lockdowns as a hospitality fairly overall limitations layer, it continue the sectors activity, know be environment. but On impacted disaster we and the be additional Rico to geopolitical the side, relief stemming to improving. Porto continued in measures and the was actually and different by the healthy impacted hours. those landscape Most pandemic when at operating definitely from economic Economic to support December retail. funding seems look continued we in additional will and at macro considering provide stimulus

fortress On entering to other and foot were that the support on we recovery. a balance hand solid very XXXX economic sheet

coverage We the strong strong begin year very solid have with. to and liquidity, capital very reserve

the banks economic and combined loan in the the loan later. the obviously COVID $X.XX definitely curve And in activity, per COVID top that pandemic activity. For spite to the impact million in XXXX - strong generated spite yield Pre-tax, to We'll of is operating, that positive CECL activity effects which of net acquisition. impact renewal generated line cover XXX which the the million year of growth was in for X.X X XXX a the impacted revenue. and months of so actually pre-provision loan actually that of billion, reached very company. definitely in Longer we increasing income, and it driven year we our million the share, the for and core really company shy with provision growth, organic only initial of by record spite by four a core X% billion XXX year increased the deposit are was

move cover let's to Now to highlights slide of quarter. six the the

this importantly quarter. this past of in very income compared first asset quarter the in full with morning, and is were came million XX up metrics. this in of I were quarter. quarter highlight quality share. For net It's million past XX per combined This think as we the important very generated strong the XX moratoriums we we monitoring announced to operation And prior franchise. million we of XX to the PPNR $X.XX that from the closely

when moratorium 'XX Asset post quality negatively stable. initial is the on as at We December of when early focus remained And to level. the by at still there's yearend effects metrics predict those obviously metrics, we inflows the delinquency borrowers look but really look impacted pre-pandemic pandemic. compared it say NPA by to created pandemic, better metrics of we final

continue invest customer. to say we technology I in to As our better serve

we During online credit platform and cards. this a mobile for new quarter implemented

capital on We XX.X, acquisition one strong impact very also the very, our of I'm digital hiatus. new and continue look the platform. definitely And rollout we at still then CETX, will branch post

like I'd loan on let's and seven. a deposit. loans and slide please, activity move to bit to expand So

was portfolio. for commercial activity. excludes As was card I the growth the X.X in This credit auto robust say the Primarily loan billion. and quarter origination activity

I that in that think we of year. commercial it's seasonal activity, yes, very delayed we a know and the deals have quarter all got solid

Main have at so PPP now programs by to million primarily so due will quarter, PPP, fatigue Main also XXX say exclude and loan Street reductions still in some X.X residential. slightly origination we to from I if and We overall The declined billion, increased XX.X Street portfolio still billion prior from strong. the volumes it's

process. on we also, about repayments non-interest million to And We which has of forgiveness continue originate received income. XX conforming loans, loan PPP primary the helped the

another obviously working was know it of PPP. process million quarter, in in Obviously, recently SBA round XXX repayment approved. this two on you we And approximately depends PPP, speed of which as the For we're that forgiveness. the anticipate now

Our commercial of to of are initial support XXXX half in loans a We definitely over that replace But loans. some great, volume normal businesses. happened as round know during the in on PPP first million XXX the the around could of estimates it PPP. this small is this the month, great first next

smaller, the more be We granular expect and businesses. to these focused smaller loans to more be on

year that see trend. front see expect to we funds, continue ample On liquidity the inflow there's deposit deposit to market, on of continue and continue we to the we the in growth

loan really we're increasing generation. on So focused

have more pipeline and commercial look that quarter mortgage another deploy core growing, at We as deposits and to million. The we excess continue to trends liquidity continue up always very consumer be obviously, always XXX it's need to consistent is deal very when and were we driven. solid the

build So hard pipeline. we're working to that

Now let's slide to move please eight.

more the loan to now to the overall of also on I think it's our only on deal reach, of customers a important for earnings profile to And funding the contributes we on million go quarter customers now high the impacts first obviously, of enhanced the to combined XX highlight with this. PPNR the power institution franchise new operation. The mitigating portfolios. yield some after of curve that generation. more the reach Again have being combined

still of XXXX, integration. some obviously, there's be into going Looking because the noise to

The first that the want on by year of focused to summer. half We is integration. definitely finish

So there integration. the there's some are full achieve that expenses the able to be to benefit of

a that And variable the in be primarily what of ratio some we expect long-term efficiency first improvement end following focused they year, to recognize year. that grow the environment, revenues banks to I market as reopens, the comment of we yield that, half of some to XX% integration. everything expect we the this year. want the completion so in tied So know that it's really which curve then targeting and important could at half also realize also some a XXs expense of hopefully increase. time that for bring the the need as recovers, at there's curve We're the to achieve the second in will the current on make revenue, is we of mid challenging some it's to

to slide Again, touch slightly build balance quarter. to the liquidity in on the six sheet. continues capital and the to move Let's

we similar levels acquisition. So the reserve coverage we capital have prior is for with at - continue completing excess cash. so the to remains cover Reserve again, strong quarters, XX% CETX strong And after X.X. very then at about very see at

the capital capital $X.XX I driven board. and management night, are to said per call and test a we the to on our approval earnings calls past by quarter the the earnings. commented presented we're definitely to plan focus And working in to forward. dividend and current be announced priority stress conclude the additional predicted this deployment this I the opportunities moving updated last As on of order Last in updated to share actively in actions increase as remain during capital quarter, and potential board

to So back for you. we'll Thank and turn call the Orlando come I'll with that, questions.

Orlando Berges

share. mentioned and million. Good but full third consumer quarter has last quarter, a restructuring We had - Those also the - the a quarter continued a do average keep as we allowance, the income $X.XX reflected is with about effect in of reversal does as that XX.X strong million we it's mind acquisition, the The month quarter, loans million X only for quarter reduction loan recognized on down PPP million have quarter XXXX. that to quarter, acquired XX partially last reflect that well loans. share, million which so merger have the fact costs had quarter of in Again, appropriation made by first we results X.X we XX of the million. the billion in million quarter lot Aurelio million the portfolio, also this commercial balance morning million higher September reduce obviously the quarter. XX still originations in which - full Net quarter. allowance also almost with a the Day XX.X the with a or CECL asset which to an tax the And compares reference some a results. X partial reversal had everyone. up compared includes for XX were the Aurelio quarter, compares new mortgage included last to valuation A and as those And in also quarter of on Santander offset XXX for the XX in effect, the which interest deferred full XX $X.XX keep the mind the we operations. the of one to

on collected were commission forgiveness charge-off have recognized we we in on they been acceleration of loans and for nonaccrual quarter. in were X.X of loans. mostly the recovered paid and loans repayment loans, interest resulted submitted that million of PPP those other $XXX,XXX nonaccrual Some of of also quarter off The the an loans income the

we much collected had over We the last expense. quarter. XXX, fees. interest on funding up that the million. quarter is deposits, full on securities, positive quarter and XXX, impact the even though - a had continued an X.X for This the significant. loss effect it cost on does is than higher last saw billion X During reduction saw X If we on of quarter. points basis basis you points the it's and sales to we the last of consider liabilities reflect points quarter so acceleration quarter was during XX gains the the also couple basis this of the of interest X $XXX,XXX of that of Non-interest increased XXX,XXX as reduction went Margin on of release, up have the a gains income loan, contraction was billion on million, compared is didn't four PPP XX the as from from but quarter which non-performing overall interest-bearing quarter, million in

to of on million million. Santander excluding quarter transactions. see increases that starting on service - that plus deposits, charges of So X.X those again X up income volume was X acquisition full went non-interest million we're

Mortgage variable expenses Main loans. increases the we lower down. paper Also of transaction in The lower we originations, gains selling, relative to refinancing, some end of second a transaction in strong banking expenses it's and - mortgage a and - million originated quarter. third also lot quarter components XX% Lending of Street the continue loans the XXX of under of sold the Expenses activities therefore Street quarter quarter million volume, part the Those almost participation XXX,XXX XXX on expenses were On fees related see the up it a were on from program. quarter again, were the we the costs originated fees government full had X.X we that of to conforming those sales so these. in merger significant again, during those were the the Main XX loans we million, program for recognized for XXX, which we during and XXX, include were up quarter. million restructuring in is tabulated effect. in the

X million If had these of having full on the that additional are expenses, half X.X again for about were process million items, the from of increase first $X.X the transaction third costs and integrations, transaction. million the complete the and additional we was restructuring higher So of compensation credit debit again, But we things amortization of items XX quarter. in expect have some technology XXXX fees. went number quarter. in quarter basically the integration XXX,XXX costs, approximately the with part far the similar security mostly acquired other we somewhere million, volumes happening transaction X.X to in from in XX process. start plus merger some convergence all million cleaning other operations. additional also of XX between the And the on exclude a be in card that cost, there like some XX incentive up of will and Pandemic an that we as we components mostly, the and the as million million And expenses associated higher and million had we things intangibles and ongoing increases the increased incurred the

and hand, were to if been related obviously legal is the by On compared of processes the programs expenses in the and slightly the by credit X.X are last quarter. other foreclosures on we item at million look delays that that This moratorium were down, million affected that one X.X the some has market.

we categories was and to $XXX December of quarters September. at back Over about expect slightly some processes these other the increases credit for in million had come Allowance at levels. next couple legal as million, XXX.X foreclosures normal from down we losses

again than loans was for The higher which you saw XXX on quarter million, X.X on but However, XXX in provision in included X.X acquired million is almost, we X almost million put the to September. the credit to provision, XX to for quarter as XX.X CECL release the in ratio was apply million was September. provision in the allowance we Day quarter, losses compared the as the requirements the XXX, allowance The the XXX third loans compared with loans non-PCD of for operations.

quarter, including we for in scenarios macroeconomic unemployment, of compared losses improvements is what of projected the to driver critical quarter. as which allowance use the variables, the many for showed this For a used third credit in the economic calculation

projected index to timeframe, CRE shows longer real the estate. recovery due quarter, on However, deterioration mostly especially commercial retail the in

to of commercial the loans we X.X and the booked reserves provision we went for of on XXX the quarter. the million resulted the of in credit macroeconomic X.X on in a last for exclude combined a of resulted variables of And possible is reserve the improvement I XXX.X credit the quarter at be losses other that of the variables allowance to mortgages our losses or allowance In X.X residential from with on reduction consistent. hand, very credit the it same X.X% which the million XXX, mentioned, release a up. XXX loans portfolios basis, requirements. December, losses side increased result provision the stayed was consumer If losses XX.X the still portfolio so the of non-GAAP on million September, reduction at the a thing in macroeconomic for healthy a million would on the on coverage million of in case PPP quarter. the for it fourth loans very release allowance or a As provision for required ratio And loans

were in XXX and portfolio. was quarter. increase million. X.X asset million the the last of from portfolio X.X non-performing the residential flat loans quality, in million terms in basically X.X increased quarter, consumer of In Non-performing million

other On X.X that came real sold by the on the hand sales. X had other estate, estate estate by the million all real owned We down of residential the driven books. we real million

the if we inflow saw of see expiration Early in the did of what below delinquency what were that pre-pandemic, December what an in trends these are we XXXX. also September level to in the third XX.X moratoriums, - increase still as it's Delinquency line of to were you With to this non-performing million saw first of similar had quarter from in year. But of XXXX showed this compared quarter. last million the much in quarter was at at very inflows compare and early but December the levels, in we we increases had levels we XX.X

been still consistent. So very it's

important Regarding think could go increases that expect before capital non-performing way non-performing on on I we to think the get on this half some impacts the numbers, the that we capital, first with that second some to ratios by associated see do be XXXX back mention that half complete the but I it's - we the - some the of the then pandemic, there moratoriums not to increases it's major we with of and year, levels. on and non-performing costumers process normal those had would as of in

thing, the going feel first half we to it's a in of seen it's XXXX. temporary be So

only had well want I average expected shows mention had all Aurelio that at September ratio of leverage one fact to from we of it's resulting month we but completion to again, already of line with were lower. capital Regarding still September, what leverage and touched related ratios. capital a level to decrease the strong that Therefore leverage which acquired useful do are of very XX.X%, transaction. healthy The in the the operation. balances

Regarding to and on includes clearly pre-provision CECL the Aurelio Adjusted loans $X.XX we the the go this. non-PCD income million year pre-tax, don't allowance before into I share, touched or by the on the million detail. want was which X% provision. mentioned a million. fact the for But in XXX required the biggest the was up year impact for obtained I year, provision, XXX it Net again, record lot the was of million of XXX increase of but to the a XXX we million that from X did pandemic loans for XX impact sections. Day was affected

So a of And pretty obviously acquired decreased was With getting months this NPAs the that XX on the some improvement. to Santander million. And will from process year-over-year good down. numbers million to for XXX includes that, I call open work continue operation. those we the additional questions.

Operator

Ebrahim now begin question Please of The Instructions] of will Poonawala session. We from today [Operator Bank question-and-answer the comes America. go first ahead.

Chris Nardone

Nardone guys, for This morning. Chris is Hi, on Ebrahim. good

Orlando Berges

Good morning Chris.

Aurelio Alemán

Good Chris. morning Hey, good morning.

comment the helpful. a that'd there to holding timing, you But send half whether your really deal appreciate you plan comfort to and specifically on anything either up is guys work buyback your that I the can that or if integration anything announcement potential any be capital related, are to realistic, So the first is continuing address board. macro-outlook on

Aurelio Alemán

entity. to there, final more There's get with of obviously to recent the plan combined get data updated to steps the the

required go process conclude and we once is approval. to we that So the undergoing

potential news we to any next on actions. call now more capital and firm So between give expect the

Chris Nardone

a this just what's economy that And Okay, back end as helpful. you as either early rate higher the realistic up. XX% guys assuming that efficiency follow bounces the mid the end? short long achieve Can guidance. timeline then the a I And or second very one year? on long-term of assumes just half appreciate whether discuss outlook that's to separate

Aurelio Alemán

the assuming in integration that that that that to yes, economy, the We're starts third And we - quarter. quarter. assumes obviously, of see have activities reopening still in

the our really end the So of it's year. goal, by

Orlando Berges

in good make current point the rates. this rates completion It do here. - to we you would on come a to still a a achieving significant through curves have when through the mostly help, process. play of definitely At see on based this show obviously, reference of and savings be and integration would doesn't integration amount your the that to indication, the we've clearly, but of forward go increase modeling Bloomberg, been But some

Chris Nardone

Alright, great, I'll questions. taking guys. my Thanks re-queue. for

Orlando Berges

Chris. Thanks,

Operator

Please The question comes of from ahead. Sandler. go Alex Twerdahl Piper

Alex Twerdahl

Hi, good guys. morning

Orlando Berges

Good Alex. morning

Aurelio Alemán

Good morning Alex.

Alex Twerdahl

like want more you just I in really you news. sure there the I to between that have you Is that call heard and next earnings April on firm right? first actions. hope to - off, capital make your that or additional sounded commentary what said correctly I now on some said It

Aurelio Alemán

and Yeah, consistent stress correct. the bank, completion as working And it and obviously, in test, give next the approval last That's growth in with we're in firm having a the the action having And plan. It's a this the we're a of of you board. plan, present call, by through mentioned sequence hopefully, in process. events activity. the our the combined process more type can to going document the of I year, combined we call,

Alex Twerdahl

on Okay, et And terms numbers your works based go just process that cetera? Is market Or of how an then it you is annual you more it yearend stress depending a of annually? and through? process conditions process kind that fluid it in that test is on update great.

Aurelio Alemán

So obviously, forecasts economic are updated frequently.

over frequency we unstable don't a So of have and recent year, necessarily the economy. The forecast it. depends bank to shows economy see years. that's hopefully every the in in prospect last the But have you of changes that that economic it continues. reason in the a obviously behind significant the that one XXXX It's variability size. you do better the on Obviously, most our for

to latest apply have scenarios. forecast you make and your you assess to what to sure economic the is have You be -

Orlando Berges

portfolio. a in the with it's Alex, acquisition And significant change

component were of as stress And it's combined on a were that just any of significant - everything on the that testing our estimates planning analysis. portfolios, make to running sure working So we're we transaction. is portfolio, capital on set on what line full with

of steps portfolio. we speak that's ongoing stress for ongoing the - as testing and that those all So are

Alex Twerdahl

Okay, what to and number sort are of matter? that be sort as you Do look case go then I kind you level process, at of kind of of as testing mean, capital that variables through adversely stress sort type of defects - operate we about of levels in Or should the but think with on severely the how to to like a frame much need capital a you forward guide today? for capital scenarios, where environment? basis normalized go just both adverse adverse the sort also how helping need run you the

Orlando Berges

we other it's we be much have are books. the that on it's the that part should all of done, with of run scenarios the that we keep the what excess and rate we basis and composition scenario, or cushion we stress should on keep what now. with capital - with based have Now, level current that up over the up how that And should years, call of feel And with of, of portfolios. come we some levels determine of as we is should levels the capitalized up the come the well - a we come buffer we believe the feel to ongoing let's what it of capital

Alex Twerdahl

year of and fourth that helpful. from those just carry then purchases the And on the there did executed going some when in is to the that be of first the impact through NII quarter, that's deployment? were next Okay, liquidity just kind quarter in during you quarter securities

Orlando Berges

we the going things - that. purchase ended end of we that remember September the a Santander, deal few portfolios accounting really, with a some sold the Number treatments. low in one, of up really on which after were Treasury portfolios from of acquired There

it were end the reinvested have the of the most October the October. that to happened, - be we liquidity of all the the reinvest. half continued those. After seen on October, and deposit prepayments to obviously the sold second between on them settlement the increases continued with portfolio. And dates and through of level middle mean, of were we most So I of Those of -

reinvested. are those So

credit out - So portfolio keep been risk of extend you try don't not we will unless deals not as the something We lot you much. the extension those the there the that a risk, credit challenge and know as avoid and take The portfolio. point to large it's we deals have risk at know, loan this risks don't quarter. throughout are the to investment reimbursement we too take is or all you are credit feel on want on we

been So And growth. the of the fact A of some compensated we've bit the as the good a with the challenge. creating that's demand on it's of part share reductions originated deposits portfolio. been deal overall that

funding. to of helps on think don't a that So to come portfolio portfolio, with investment of the be don't deals. mix good But I it's - contributor investment I big improvement

Alex Twerdahl

you see quarter assuming trending side other Okay, basis Where of to rate the points. that other balance on fourth and then nice no in environment? overtime to sheet do just the on the changes the there interest-bearing the deposits, tick are XX in down

Orlando Berges

bit it's some There a done it's we deposit than the lot always that in the We be is are be to market to of we may of I the have environments, eliminating go. mean, longer-term that of some lot some little clearly, a re-price they the higher and were of question rate the CDs biggest improvement bit a a longer fixed money. still broker possibility time cost going variables as of those. been have Rico, Puerto a states. accounts. The taken - of but transaction but The already account the that changes re-pricing there. We've

could will points time in re-pricing it be say reduction - be rates where And down. to stay I little much to To to with of margin trying honest, haven't those. they able on time how be is still be a basis year. there bit are and done we're taking with few a So work of it as there that a calculation deposits - if those this deposits. But

Alex Twerdahl

qualitative know aspect Or to before come and to Okay. And And for reserve of reopens I CECL quarter. probably levels see I Day to well. the the happened the economy hotel question the there, way a historical in even a X I meaningful full? reserve Do of or kind the then a fair the the need as rollout can me, the the as in down coming back sector reserve what reserve just you final comeback before think that really level? effective really amount do things of sort there's down more about that appreciate this more and of of inputs like your and we vaccine some level online

Orlando Berges

full carry timeframe loans that on affected, with in in that new are mortgages our repaid, hotel unemployment estate, macroeconomic GDP one, The improvement be in on older it's that hand reopening mix of industry, portfolios that of to to components impact mean, the are obviously, remaining the to if of to just loans, do what unemployment loans, is loans being and in as loans up retail percentages you compared reductions we those we and driven show losses, other it mix I as depends the should opening that still put - of that up of on on ahead. If see reserves. because unemployment estimation in are impact. create in and are what Provisioning of really a down. mentioned, heavily going variables new a to the recovery by take the commercial key see because level is those few and a definitely help or the starts reserves the businesses we see we we coming some lower the still components on reserve real life other the start reductions tied

see we growth a If reserves can we economy, improvements, - in on early. of on bit mean, be reserves too to the significant still going required it's it's released growth require - on see I little of offset a some being mix But bit we ratios. see a can So that. with for based

is end we I don't assumptions in the of going reserve the the but to early some levels, happening Our large level We that's additional not start going happen expect see we any that what it's of year. see provisioning still see the do provisioning mean, are If do of in - required. towards to need to being year.

Alex Twerdahl

about of And one full sort the Okay, final coming backside think synergies help you us actually the through with the run as midyear, year XXXX, out rate towards? the kind you of cost of color. as I of trend think appreciate for and can approach I question, of the expectations deal expenses integration the that that just

Orlando Berges

voluntary keep Okay, it really mind the XXXX, a first we quarter full of one, quarter that of separation instituted come were you the of people from the because of are rate the and a on there little of as we going second know or normalized a to is program. year left integration of starting The from third which of should more systems come lower base running all Number so quarter to in of market, money as bit factors saw Savings and are in. more a December and costs. volumes 'XX for on running of already. Not what few on - to that rate the going December out left we expenses we save level. the come savings first a have in processing good point are going amount

But end other left there through people are the are at November. conversions. staying people of Some that

XXXX. we've start been half So in until in changes. additional some those savings, wouldn't investing them the seeing the we second of Also, process,

expensive depreciated. be I be that expense clearly, before. range expenses. in preliminarily, we full starting We - be an that in mentioned system. should have should teller million just It's we before didn't million and have of the XXX some of in would this the in we're But that to think of to example, calls change XXX It's platform space running out the that for I a say system. we

the on increased trying We agreements to you - will through current work mean Still continue finalize go to can they volume of that, details current that when Alex, things to to when all different negotiating are your some the contracts. be things eliminated. in all of place, our are we things. as I on - adding

see of identified So And even on we much part we the shooting track for had a the are And can of that we before, of savings when have very of as the that's we're said still negotiating full some transaction. what we're what all extent finally expected. of we'll number though those. components that still realize, we

at quarter that complete the like integration some by third renegotiation. we something processes range I'm year and of at looking of what or point that as So next it's other

Alex Twerdahl

taking for thanks Okay, my questions.

Orlando Berges

Thanks Alex.

Operator

[Operator Instructions] The Manna next KBW. question Glen of from comes Please ahead. go

Glen Manna

Hi, good morning.

Aurelio Alemán

Good morning Glen

Orlando Berges

Good morning Glen.

Glen Manna

have my questions asked been answered. of and Most

mortgages how wondering on peak overall of be, and outlook in give that? mid maybe I NCOs. just NCOs And what ask thinking then decline? commercial of I'll about about could you was a you in Looks a you year then just one for quarter. us And your that? next would the NCOs, expectations And are this if kind So some color a like had recovery just

Orlando Berges

recovery in –we that we recover that was main able had case was a in and the a very of US couple on to a Those and was charged old the were were The one another up cases. a amount case finally smaller The amount Rico. recoveries. fully Puerto

going work these put without the to to that of of estimate realizing how some having up to able recovery increased old in be We reserves the we're and on. this fact The But speed more up to estimating to increased that should pandemic the there being start happening the is of believe of you do had business And you offs. there losses. moratoriums cases see when we be Some those that books question someone The reserves offs. to lot first the estimate that Obviously, do very be we end side much driver we a of or offs. does implications some on charge indicate charge continue and of of XXXX. on don't expect a good. charge half could end will clearly

So that example August somewhere if we moratoriums portfolios and for should levels. see lasted take September. normal consumer between Remember you

days industry of seeing until when that's the of vis-à-vis temporary offs. XXXX. them just you half cards, commercial delinquency being permanent XXX finally up those don't ends that some The delinquency And the two XXX and you now, we an last of of expect higher related seeing side, quarters. on the clearly, what more and first one-on-one you half the start And level really but of credit should first days, charge realize identifying, we're how to you go is much what more have year the had charge over and it's offs we start

Glen Manna

thank Okay, you.

Operator

over This like session. back concludes I would for to the any question-and-answer turn closing remarks. Pelling to John our conference

John Pelling

Alyssa. you, Thank

Services This well and On Investor the at for will March Winter virtually forward as we soon. as you call. you. seeing February and the front, forward the Virtual XX XX We continued XX Financial we KBW time support look on appreciate look seeing the Conference. to Symposium, Thank you IR conclude KBW to your

Operator

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

You disconnect. may now

First BanCorp. (FBP) 29 Jan 212020 Q4 Earnings call transcript