Earnings call transcript Q2 2023

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

Operator

Good morning and welcome to the First Bancorp.

Second Quarter 2023 Financial Results Call. My name is Candice and I will be your moderator for today's call. [Operator Instructions]

I would now like to turn the call over to our host Ramon Rodriguez Investor Relations Officer. ahead. go Please

Ramon Rodriguez

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

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

capital as begin we this is projections may on certain involve it revenue, call the and such of to objectives as well responsibility company's Before my call, structure earnings, plans the business. and forward-looking statements today's that inform as statements of you

from The important forward-looking company's actual company's results could in described made differ latest the materially to filings. the due the SEC statements factors

not presentation at our The you to statements any company them during looking or can no copy access fbpinvestor.com. at forward update obligation of the have press already a anyone release, webcast the assumes does website made call. If

call Aleman. At turn to our the this to Aurelio I'd time, over CEO, like

Aurelio Aleman

Thank Once translated thanks you, very report Ramon. Good our which our strong per that $XX.X or solid share results quarter, I return franchise. pleased X.XX% $X.XX to again call the during we're to million for a and assets. say joining for earned have We into morning on to everyone today.

revenues. continued non-interest flat, interest slight reduction income to strong in was pre-provision higher previous Pretax net expenses lower was compared when quarter. and A offset by

non-performing increased assets credit KPIs for great of losses right in most $XX.X direction. stable a to XX representing assets. just moving million quality basis with with provision quarter The All-in credit total and remained the points

continue half the thank That was opportunity the XXth our celebration year. during company. I'll we all going the the This take celebrating the year just for of began to of be three second to anniversary the we to their the for of across forward. and A organization, our commitment ongoing to teams the serve. great year communities our moving half clients, work, first to their my regions

pleased very during repurchase planning front, common and second an additional $XXX approved completed million the our quarter that capital we our capital the share process board On program.

common in amount during million of the relate of We resumed XXXX, expect the that remaining previously which approved second program half stock in July. the of early million repurchase to $XX stock purchase was $XXX to

well-capitalized to the capital the preserving us position shareholder above continue operating significantly allow growing environment, ample current franchise remains thresholds which value. on Our while

to that let's page in Now, the grew please actually the for our loan by highlights loan earlier the year. was Growth consecutive with underscored move commercial The we quarter to balance provided some five sheet. in of discuss consumer line growth guidance sixth and growth. mid-single-digit solid portfolio

XX% linked-quarter offset Consumer This million. loans partially quarter growth X% $XX grew on reduction to be was by the residential mortgage annualized. or expected $XX increased portfolio, million loans the which or the loan $XX happened annualized commercial linked-quarter and million

And the during market. think strong for news consistent very of continued the the main of activity the the production see year. very we is good Loan the I pipelines half particularly first on year, continue remainder to

our I we of operate despite think it's environment conservative the that with risk see. to to important continue mention optimistic we appetite

in forward market. our appetite main not have We moving changed risk

portfolio, the We Board. past, have function by within and guardrails the well-diversified said in our overseen and balanced operate we by established risk management our managed

specifically to book industry exposure comprised borrowers across manual of is Our loan multiple office. commercial

the graph will say the right in limited refinancing two I see real minimal the can you next estate and As over exposure on the years. side, risk

short encouraged are really policy to and over economy of business very economic potential the potential we US monetary credit ongoing the and in term. loan the or demand impact said activity remain growth and the but have vigilant by in on That may slowdown the medium island

deposits quarter funding an increased $XXX the and performance. excluding total Overall, our element decreased six days to profile government important page million deposit to turn during reallocate and review Let's brokered driven by deposits these time the million. CDs higher deposit deposit continue reduction $XXX of category demand to alternative. million, across $XXX into by regions Customers by all mostly in increases cash accounts in yielding offset discuss

by Overall, continue million to primarily collateralized out deposit additional XXX in a, us Government of we Puerto to in Rico. first allows deposits quarter which growth repay borrowings fully the the liquidity. to are provide increased took some

at second Our deposit balance liquidity the trends now deposits. average half to an liquidity deposit Total We year. wide and base very ratio solid position stable billion that over strong. composition bearing uninsured remain the non-interest available over remains unused is during of The approximately X.X of the expect do represents $XX,XXX. per XX% and increased core XXX% a very account liquidity, will quarter industry relatively with

focus continue new channels around products our providing attracting network quality share increasing are core part and to Digital launching strategy service. and customers centered Expanded client We of self-service new branch on the superior deposit offering. already

in the activity which the Traffic year. X.X%. Economic to registered compared year. when to X.X% economic prior to to to growth main compared Activity market X. Let's stayed X.X% federal by how seven and the consistent compared be up of employing to May, figures we up Puerto continues to operating preliminary to move that June in important at that a for disaster was it labor foreign investment. island And compared backdrop indicator payroll when is the and reading statistic economic we at Page funds prior when to coincident continues was in up An Index, strong showed discuss Slide year environment. prior of the the monitor continue June, supported A Rico The years see June XX% last it's airport employment flow June and since the increase. passenger XXXX in highest unemployment

strong January reported disbursements Manufacturing at X.X is when of reflected sales that the consumer that we're compared to to to of I sector stable. of May, Strong very it's confidence important encouraged actually pace approximately year. are accelerated activity deployment Business auto XXX of to months is have versus be five year. see the relief the May We highlight strong funds. million the billion to sales prior by during first last year. disaster doubled and half retail first continued solid. the think And being

So that we activity and is the out it see funds there. are construction in do moving really

During and continue our strategy and for make to the quarter also digital as omni-channel tool relaunched our a experience capabilities actually business we a for regions progress in lending corporate our sales which offering our deploying to serve digital very customers. we also important we small expanding digital new portal,

call go to I Now and the of turn of come the the we'll to over some questions. details Orlando back for financials will

Orlando Berges

morning, everyone. you, Good Thank Aurelio.

quarter. quarter earnings we the that mentioned prior discussion. in very quarter, had Second stable faced income pressures a quarter In the was net we interest

was million increases quarter, a We million per income credit $XX.X some with the for lower Net non-GAAP as ended we in expense but also provision If share. losses, exclude Aurelio $X.XX in was saw non-recurring a net mentioned up income a share. some the or gains had or $XX.X with $X.XX we base.

at of point. our and provision. the deterioration a national markets Adjusted and on the on mostly at million it commercial as still Aurelio at pre-tax strong this which affect portfolios was the $XXX provision part estate assets X.XX%. pre-provision the to But been don't return last million, values see for impact has potentially quarter could even The level income also on the growth basically It's higher. as the as the real seven analysis same related incorporated mentioned quarter the was we though of projected of

have in Last estimates tax grown quarter rate XX.X% effective as lower. federal down related XX.X%. costs for the is which our mostly was It's funding to taxes The was X% reduce quarter operations. US to

is which was terms in expense $XXX.X In net last million higher of Interest than million, for the income interest million quarter. $X.X $X.X but it interest the quarter lower by $XX.X million quarter. was grew income

grew portfolio the million. yielding originations. new grew points quarter of repricing basically driven $X.X average balance basis loan the up million, commercial commercial the by was and this interest and XX income The portfolio yield $XX.X In higher

As the mentioned, million ending the about $XXX growth Aurelio this in loans was quarter. balance,

In income in loans, basis growth $X.X average mostly yield. consumer the million interest But $XX.X had related increase we to points the also million, XX in balances. terms a of increased the

million bearing deposits. quarter the grew million balances time of deposits we quarter. cost during interest reflects in the increases primarily In on quarter, the in addition, averaged have increase balances deposits government and the for the Interest $XX.X $X.X interest on higher cash as cash expense

The exclude and the only XX time quarter and during commercial of deposits include cost driven average savings of basis government basis XX deposits. non-brokered the checking the points driven to basically cost grew we the bearing all average X.X% government, by points. If cost checking and interest average XX interest accounts, by and of increased basis increased accounts which customers, retail savings bearing and government mostly points,

XX%. bearing our cumulative months Over deposits Rico the data last in government interest was Puerto on XX

a with it quarter this for However, effect, XXX%. was lag

which time, hand the year. on On interest XX% was data the bearing and other the deposits, government over cumulative last exclude

to basis from and Net interest the deposits on definitely increasing the that and margin points not other in effect lending of migration XXX, benefit side. deposits exceeded paid the rates the XX the cost higher of for low the increases rates into noninterest-bearing time mainly the quarter deposits decreased reflecting on

maturities two growing expect getting main flows repricing projected of next the portfolio. over next quarters on rate continue the yields loan couple expectation. we're mature happen will factors, two to XXX and in growth We portfolio the loans cash of at that repricing a from at million low couple cash interest definitely investment The three based and the existing investment the higher from least during of of that will balances securities yielding next the during quarters that quarters income the

some Maturing probably also the with last public growth, into rates deposits it's with at those us Interest we cost expected continue other is interest net higher going the be will to shift some noninterest-bearing we which the and still associated time to feel are hand components reprise led and deposits cost say increase. low to that increases expense felt income that quarter of growth the on with case. And cost deposits in stable deposits other and will should grow rates. higher portfolio

year on of $X an recognize of case junior discount million at $X.X quarter and contingent prior old in which this increased insurance million a also income, subordinated last it other legal productions. by quarter settlement year These we the the based first In $X.X gains of the offset million commissions, had We repurchase million $X.X collected gain collected are $XX.X terms on quarter. million with in debentures. from each basically a of

to expenses, terms during million $X.X properties. in expenses compared net decreased from disposition approximately quarters. the quarter, million million gains to Both the we In $XXX.X operating of $X the $XXX include million last saw of OREO quarters

reserve The second legal $X in releases. operational also million includes and quarter

$X.X the our processing reduce we that expense the collected for in While quarter, million costs incentives credit card first annual quarter.

of Most payroll these Excluding these of approximately tax below in the reduction management compared to employees were also have but delays million, due relates timing amounts general as $XXX.X of initiatives. million reduction. capital our to our in components. last our of some Expenses expenses guidance projects remained taxable expense reach quarter, maximum for to in due of million this $XXX some items, $X.X continuation taxes part to the

point. quarter planned and in anniversary we'll see on to expect for year to we definitely expenses under But guidance the some have What be to the are of that increases merit based slightly will Yes related the the that closer third us provided. for some there compensation the increases increases this expect promotion of These will July, our been on have as business celebration. granted. half several be second we we guidance events part take the at XXth effective

threshold low ratio mentioned. still other to very those low remains efficiency It's closer than at and Our XX% XX.X, mark. of XX% the lower some I excluding very items income

loan recorded to Florida we was million. quarter. that be non-performing moved very and $X.X of million quality charge Asset assets. are OREO properties by to in well. just the points driven XX last $X.X million mortgage $XXX non-performing million non-performing performed Also $X.X Commercial $X.X million, assets and continued on to residential basis has decreased with of million are Non-performing down down $X.X a down

it mostly increased it's in and moved NPLs up to $XX $X.X million, quarter. delinquency still had in we portfolios. million March, which that C&I it's that uptick quarter was X.XX%, represents side, it to was if and [ph] it was X.XX% a what We the since But renewed, quarter. of much that lower it $X.X some Inflows $XX non-performing on process remained though it's had we in in total the higher to Early had the related the million we is than mentioned split commercial for refinance being loan very we early current matured loans, loan delinquency the to X.XX% in similar mostly components last side. I million. consumer which did it's consumer just but in December, Early in the these see in of temporary decreased by even but pre-pandemic than delinquency $XXX million the

it million, at for $XXX Rico impact deterioration loans allowance forecasted is charge-off just the increase case quarter the quarter. the impact the the though leases million in market X.XX%. higher in even on quarter, million XX the again which an increased in This in and national from what was of credit level. $X.X quarter. for impact stands XXXX last losses, consider at loans, which ACL our again out of points have at realize at in The that real than million growth points the the took which and is basis quarter. this to and future was the average is higher value point $XXX and reflects net last lower basis we does $X On which we we CRE Puerto loans the flat than commercial because allowance at have level, for Finally had million, of X.XX% estate commercial last do last case, when the what $X.X a The up to we represent XX Florida compared than it's loans there is portfolio national

as capital be capital the Aurelio to front, very On continues mentioned. strong

could plan. quarter, continue capital be value capitalized capital book of thresholds and significantly the the regulatory our end -- well ratios per execute well to to our tangible above continue We basis share decreased also is TCE the decrease reduction which which the points in XXX. which only by $X.XX value nine in the at now to of driven securities fair a led At

share of represents tangible XXX decreases As ratio quarter the million the book and the a OCI which points. second per the by about $X.XX adjustment of on end about basis TCE was value XXX

next portfolio we growing. analysis has current quarter, Again the on of we investment months. million And XX the last XXX mentioned our as not expect repayments based over been

the That maturities billion another I X.X XXX And XX. through the that middle six includes over months there in of the mentioned. are next

it. and that flow reduce to So adjustments up continue we OCI pick cash with the associated

that, With to open call like I operator, the questions. for would

Operator

Group. Thank you. from of Instructions] comes our [Operator question line So Rabatin the Hovde first of Brett

open. Your lines ahead. Please go are

Brett Rabatin

I guys. wanted with Hey. start … Good morning to

Aurelio Aleman

Good morning, Brett.

Brett Rabatin

hearing the the that Aurelio, quarter. with Hey having a offs. charge-offs. the charge C&I start …the wanted C&I but to you were? I was charge back offs Can difficulty little charge-offs in go over what the

Orlando Berges

moved collectibility loan clear. year hurricane The C&I at we Florida point, charge-offs and case into you is in ended have which specific quarter might non-performing the which case issues industry X.X prior with the non-performing that some energy million had it's this we remember associated the on last of up the the not when that market happened

to be So we approximately ended are amounts expected up that not was million. X.X collected charging the which

more or line everything only the side on So prior else some in was consumer that less components every with slightly lower large on the but quarter. in case thing, was that line,

Brett Rabatin

I first be if the half down trying higher heard the NNI you from than And the like it back in would half. then to notes. you was sounded And I said Okay. the write correctly dollars

I to So repricing. want you have

any I magnitude? thoughts assuming think, back and half margin year say you million guys on higher the reverts Securities of heard the Maturing. Are of I in the $XXX you the

Orlando Berges

There and are repricing portfolio loans, back on the are we expected investment sense the originations Well, half positives I repricing again you increases and on the that's the growth. -- on from, the second of as side of also that see the was on that in half some what growth earnings portfolio cash saying. negatives mentioned

We is not income portfolio the doesn't to slightly up volume feel one growth interest but of again going net margin. flat the portfolio be could to us that the investment clearly to be sure happen to to it's up that up repricing take margin. push the I from quarter, in is going am some that down it start. so going it's It's going

a It or into account something that the of X.X% lending yields move on cash the in better at throughout some X.X%, It's least to happens quarter. side. going sort than

But had will the it. one going of do the are side offset as with pickups. yesterday those some So rate re-price we that and government to would increases

Brett Rabatin

like understand on cash. the used brought the I a you some balance quite Okay. look in some it the didn't the quarter CDs -- liquid you during little at and the of more was quarter brokered end anyway sheet

stuff sheet from was to growth? know as higher opposed CDs what well out some balance I cost the but trying thoughts just liquidity get loan any And to to that you on were the using related to using as fund brokered

Orlando Berges

Yeah, expecting we've The in cash, Rico level our been we're sometimes that some Florida that have We of Rico. want the it tax mostly implications. that of what additional function on to because have a it's of in market. some use sheet the on using volatility. mix Puerto balance Puerto brokered we a CDs in things Not use keep government we of deposits

that account, long-term. taken brokers case want and So how cost broker very that that Rico it's all to fund much of some into this in a direct is what of we're been expensive some using -- has the -- operations The in or at function operation. Florida from taking market brokers not the we are but end, Puerto

So that the want we and on sheet. way we've been balance see using the of a of to as future what managing balancing

Q -

Okay. Great. Appreciate all the color.

Orlando Berges

Thanks.

Operator

you. Thank

from Timur line comes Braziler of the Fargo. Wells next Our of question

Please now is open. line ahead. go Your

Timur Braziler

Good Hi morning.

Orlando Berges

Timur. morning, Good

Timur Braziler

the have outlook wondering and sheet is in then is that growth the year. pressure questioning Because securities it the seems funds that and is getting imply end the off following NII would the sheet the and looks just I'm the the loan rolling like be the some size on that to back it what's to the average than public balance the smaller year balance the a in from NII issue? higher. balance it just that back is you're of going balance seasonality a offsets end flat -- up higher some timing of be May period just those like driving to that's on smaller sheet of of structural line book Because NII, seemingly kept from the and Is growth? end and balance. going around the there's headwinds

Aurelio Aleman

mentioned half year yielding Well you Orlando the comes the one replace investment The those it's flows know of the of on that objective and from portfolio to books when second important. the I in products. actually think cash is you loans that example books laws XXX the XXXX about for coming the a X.X% blended on with in on the on are all add about average are

So how that much is The there to on to the NII. will an there side. be improvement deposit offset is delta the obviously

Okay.

because decline on Specifically, money continuation slightly, we that outflow expect goes government They a to was significant water of in. government out. we a There's This but not expect is a positive. Money those. could there net. on decline do lot don't of deposits and decline coming bucket inflow

baton on other The slide core than in doses as higher you put can the we see it's that the deposits. together

that our be we've the day we achieve NII the is is to grow to what's but guidance the on more mature. But that think improvement. are say sense which would in growth I have what's know terms size reality going the achieving important that that know the mid been the off and do a to single-digit, there how to comes that And able is obviously So of of much is than that you replace NII portfolio. up loans I in end to we can -- loans are XXX you that paid the drive at of

plus for we But it would that I to here to grow been about what you. and there's trying simplify If going the if it depend with net-bet lot pressure together CDs and we and what the good much could that it's we I we've because growing happened curves short-term comes of say in just to deposit with again that's the Treasury are the what minuses saw be that. with of adding will comes basically flat curves government the look the you be competing think where at -- how and indicator Treasury deposit. more the a a

the So one the an year as indicator. Treasury especially

Orlando Berges

quarter. loan the portfolio into doesn't average. you at what was mentioned the XXX the portfolio in valuation. Specifically, the which But or less was affect portfolio the OCI doesn't average reduction in than That down on is go on risk that The related growth that. actual grew the dollars investment in goes million also average to you XXX million the and if look the the quarter lending so reflected side about

it's foresee are account us those balance of a this to the on don't composition those sheet have you based we the sheet. reduction that. That's components there of into the consider factors on you the at And of we because is lending level the point which of higher we it a of down don't yield. at deposits I sheet balance when that -- taking see on -- coming why into you cash again balance the we higher a see that reallocating don't So some government end kept that at as reducing not It's the that are out coming of what the deposits. also mentioned of level the

Timur Braziler

some of two of future guess expectation like as shift this isn't those what rolls off for helpful that the MBS actual reinvest just next Okay And at XXX if rolling do kind looks Thanks here a yields Is securities yields quarter quarter just And looking bit like declined maybe color. on yields quarter. that. the of what's bond I in the to it off? quarters? that's mix the then over maturities look good a

Orlando Berges

especially, that that reduce prepayments it's to we of average function also and On and over repayment but created of affected an also is bit quarter-to-quarter two incorporate running from discount some And some there amortization the things of side, time that are assumptions. CMO the had that there the assumptions the on had that the what's on that bit a if changes, saying. that premiums prepayments done we variability changes the a obviously calculation you of the are as it of affects investment of is repayment on that assumptions changes portfolio the a some off,

mostly As that coming maturities those on clearly going XXX are quarters. are significant to But are yield don't those three seen on to that expect two that last are contractual next due remaining over with the or matures, and we on reprice. the things the have changes are yields that two the we And lower see portfolio quarters. from what the

Timur Braziler

those it. I there expense a responsible delayed for Got to And in fact expense that the is for expenditures look what's the comment switching rate. the and remarks partially then side, like timeline better was prepared expenditures the there those the guess and capital run does magnitude capital that is then be mean that those when maybe to timeline what rate hit? expenditures the going just to the initially of that actually delay? some Does bit talk starts the larger? that once to to is start a little So expense

Orlando Berges

projects on say that were I we these when delays not said of they When in some there put delays hold. –

It's Some stages the of project. some of these are longer of the ongoing. taking

of it's of couple the at that's are those ongoing affecting because So what lower, at why all which projects And be once next some no to going – quarters, thing. of to happen over It's be of on point. to matter the pace this it's going kind time. going at not it's

to unless you'll that it at the we are we going it's able some that something of projects. not to be at once hit because which larger see on it's this point foresee accelerate don't So

continue that's that why anticipated. we originally be than the on So had specific run will on component lower rate – to

Timur Braziler

modeling have a Got balance average public it. the funds just And the lastly quarter? of for you Do then question.

Orlando Berges

– don't can balance. ended to I it I the think we'll But the had you top of with can get average average. in handy get of end Timur. exactly government the quarter. it from The with I you. I I Puerto billion remember have head We deposits. billion We don't X.X last at of Rico the what's X.X my up I average.

Timur Braziler

very you much. Thank Okay.

Operator

you. Thank

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

now Your go ahead. Please open. line is

Alex Twerdahl

guys. morning, Good

Aurelio Aleman

Alex. morning, Good

Alex Twerdahl

the are off those next the over First your quarters. curious of expectations what I of couple balances for was government just deposits

those to or out If seasonality sort to the end I year. with you flow them of where guess expect maybe you two expect

Aurelio Aleman

say around will I are we where we'll stay today. most probably

and the those think some to to initiatives There's of energy that are energy related outs. couple deposits of I we in a some plan. the see linked will

So they if those the a this next are is year not year is move deposit definitely timeline, ahead plan. early which of those will for the by

So the it's just behind that is volatility firm is answer but a know those. I not that

timing ahead are today say we it based those think are see I we projects I on to the of to projects us. of we what that know quarter have of okay for on this. But you linked the aside this some know, should that and be what from that will depend

Alex Twerdahl

you sort tell are just the have those if are you maybe of cost each also funds, the have in the actual then in betas I funds. buckets that's various But the out level put do interest peak And the Despite might mean nature. us of interest of then here mean Fed you some deposits that I time of public category? the cost deposits, bearing out going of peak assume cost. And high terms the bid Okay. at the and the in those core I then can where those to below you

Orlando Berges

bearing not point. about changes interest XXX.It accounts accounts on low average are some differently. a are But accounts straight for Puerto same of accounts. more it's quarter Yeah that of the the move accounts. bit bearing that not that little very move type some rates was cost in kind non-interest we there or of Rico others accounts at at average And same are obviously, of – in are XXX this include with government deposits broker Obviously, the all of – that does

So that's sorry where last I'm about last was about than ,mean we points that. have lower I than quarter. the higher average quarter. cost XX basis

Alex Twerdahl

deposits? non And what fund public for Okay. about

Orlando Berges

a I have don't don't the include the I at out. it need broken we sorry. take can Non-public down. as that you funds non-government I it look only to that disclosures. broken one have I to down I'm includes it part of would if have separately. Alex take deposits that

Alex Twerdahl

at based Okay. that the loan of X.X% Understood. what on think outlook your you you are strong pipelines bulk for cause the And I expect and I chunky there that guess comments in that thinking moving of referring in of just your you're through or or come about commercial it should and you going big back any then like assumption or maybe the year. the to the looking the yields better, worse in that loan maybe very we Is there's be any to just maybe if nature, sort comment paydowns parts were complexion to range. anything And could then about said in growth remainder that just third is of Aurelio loan the new the that talk the on quarter? the

Aurelio Aleman

in that first normal for will I normal in that is of Yes, chunky are rate There the a the fourth a the of that we quarter. quarter I had in half. run close, the quarter I'm ones sorry third the think, fourth kind should in couple

do. How have a that I year portfolio is rates we and a the of It's portfolio we that basis. the There There is. all on Yes, combination the they're yield. the with of like evolved mentioned on production a there terms trends In chart XX. is.

You that consumer accumulated that about when look basis know points the higher in But the at comes versus depends happens you number to XXX of commercial. on around mix blended overall. be a bit little it has

Orlando Berges

government out points pull deposits. number. of XX of the I was deposits points quarter. and question, your time the XX excluding for to other It's It's for cost basis deposits the Alex basis

Alex Twerdahl

That's Okay. Thanks. great.

Aurelio Aleman

can last that the cost on on average had we we the average everything. that chart and the includes presentation, was did non-interest the the on average chart and on government we cost the And Including include on XXX movement presentation. four funding included quarters bearing, on That sources. the all that you the the the funding on of the over cost wholesale has the see that how And moved.

Alex Twerdahl

security first alluded the year. XXX I us think you prepared it break and to The I the by well? that you half the that guess, back Can think you that for the quarter the, out in aggregated all as maturity the your together second said or for you just tell remarks. was and back it. of I Got quarter XXX

Orlando Berges

-- It was on It the aggregated the quarter. exactly it XX-XX. the was not rest -- quarter third the the fourth about and on other XXX was in

Alex Twerdahl

you And expense your getting Okay. back then about to guidance. talked

I was $XXX that us per remind Just think million quarter.

Orlando Berges

XXX. was guidance The

Aurelio Aleman

Excluding excludes Oreo. Oreo. That

like gain because look We're that million this we the Oreo we quarter been values XXX. you or still that and That so had profits. exclude we're would quarters. if been So lower it the we've eventually the issues But Oreo different generating of could to clearing still kinds the We number properties sustained over should at had that assuming have of all with properties equivalent X selling volatility. of with couple at down. there still we have first has come been

in to positive be what bit be a to going number than probably that the lower we this expect had it's third little quarter. quarter, We but

Alex Twerdahl

for questions. Great. taking Thanks my

Aurelio Aleman

Thank you, Alex.

Orlando Berges

Thanks.

Operator

you. Thank

line of Motta, from Kelly question next comes KBW. the Our

open. is Please now go ahead. line Your

Kelly Motta

Hey, everyone. Good morning.

Aurelio Aleman

morning. Good

Orlando Berges

Good morning, Kelly.

Kelly Motta

can look may year or share? your you you expense I guess, as able expenses again, has circling us know projects whatever at some just you we just what can comprise I lower focused broad with projects of to on things now two are the next right like the to of rate these on of that to of and the strategically ahead on you're part timeline a back of remind the undertaking do that level length that the touched special these over you've run of some remind as kind

Ramon Rodriguez

cloud encompass IT of largest number significant all to a migration that components is Well, the I of think projects. component

other the in terms is I is think that one investment of obviously second activity. automated process improvement will efficient more make us technology in

So my RPA. robotics to it and behind

And facilities say forecasted and at XX it's but components So -- will slower. it's technology side. that as Orlando But in being over primarily it's we pace will it's probably really faster XX mentioned happening it's to with technology not a accumulated a it. line taking it's meaning that some I it's the be happening

Kelly Motta

cadence That's back. it. for guess I’ll you. helpful. I Thank that's step side. Got

Ramon Rodriguez

Kelly. Thanks,

Operator

second this BanCorp are that said and no I at for quarter time. concludes gentlemen questions additional you. joining earnings Thank Ladies First results there call. you today's Thank XXXX call.

You may lines. now disconnect your

First BanCorp. (FBP) 27 Jul 232023 Q2 Earnings call transcript