BPOP - Earnings call transcript Q1 2021

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Operator

Good morning, and welcome to the Popular, Inc.

First Quarter 2021 Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to Paul Cardillo, Investor Relations Officer of Popular. Please go ahead.

Paul Cardillo

you us. thank and morning, for joining Good With Ignacio and Alvarez; the call our our CEO, today is our Lidio us Soriano. on CRO, CFO, Carlos Vázquez; answer the They quarter results review for will and our then your questions. first members available the be Q&A will during our team Other of also management session.

could on are uncertainties. that Before filings. on are press I that management's to actual in subject detailed may and we cause current remind like start, our call, differ and that release set make these and to to based Factors risks statements we forward-looking SEC are you earnings forth expectations materially would today's results forward-looking statements today's within from are

popular.com. our press call and on find I Ignacio SEC CEO, today's now may You turn over release the page to our filings will Alvarez. at our web

Ignacio Alvarez

and that hope million. We very Good of net call. for are you the income and you strong year morning, the well. loved with a ones achieving began joining I thank quarter your $XXX

while Please of our shareholders, of our share strength our needs position, capital our Before Slide series a to I earlier company's turn franchise repurchase announced These These execute include for of we program year. I in quarter, capital increase and to dividend actions month, this report per X. common allows first to actions a and which pleased this the to quarterly $X.XX to planned stock the a we evidence continue up am to the common customers. intend that capital actions that $X.XX to invest serve discuss the stock from return XX.X% million. of us we $XXX in the highlights to

on same pandemic quarter. due higher forecasts was in last due the income direction of and albeit opposite to impact quarter higher These the year. season. to net than the fourth economic the changes current million $XX quarters Both impacted, its were $XXX million were results Our million $XXX than in

well were revenues. provision First increase million PPP investment driven net an costs. an our in in results as higher in increase higher driven primarily by was $XX benefit and deposit as The lower by income fees, related the quarter losses credit for portfolio interest

higher by valuation. Our trends quarter income with noninterest mortgage positive higher NPLs, banking net inflows MSR to in Credit were and driven charge-offs. due increased lower quality lower NPL income lower the

million. Please unprecedented end Island the the reflect over In Puerto rebound results have programs. as as as the large on in that quarter. With update of turn had loans economic X PPP other totaling on in both the operational well XX,XXX we stimulus an originated $XXX Of better of ongoing been experienced loans diversified forgiven quarters, our Our loans rounds. of billion we nearly we PPP and loans In to have the X revenue have in or and originated two, past both XX,XXX for Slide activity XX, to risk Round in the XX% Rico, funded level of funded in for part due have few close March as $X.X management. PPP of of matters. been prudent million respect the originated to to all the first $XXX Round sources program, XX%

covered by digital an the through quarter in XXXX. acceleration in platform seen We Mi Rico We of in Puerto have March Active XX% Banco XX% in our deposits since of adoption digital grown channels. the users channels. have first

as but adjust higher to the considerably to levels. lower higher economy fourth quarter, the in pre-pandemic remain these them than it the quarter we XX% year. last in continues believe was downward While slightly observed that of reopen, the may registered in XX% first the We somewhat than expect trends

first the continues macroeconomic environment Rico Puerto XX,XXX current In an customers. in more than the to Please on quarter turn first in Finally, our in Rico. for Slide million base update to customer trends grow, X reach gradually Puerto trajectory momentum to were unique X.X the Vaccinations in by the increasing to a as and Puerto the half in Mainland. of of restrictions in XXXX customer that building improve, seen place many have along loosen. second business upon activity the Rico progressed the continue were in as similar quarter,

still X% of national in increased island hospitalizations below levels. the X% below While Employment has by but the to number level. levels year. remain March XXXX has improved increased Total last the since weeks, XXXX, non-farm but cases are COVID-related remains the lower recent compared had employment on December

a the sales the level. the is since record Cement continued the New period, auto sector XX% ago improve, the by Rico become with robust remained hospitality which highest is the least have increased at rapid to the popular units world in This level, a Mainland highest during as for level Puerto by traffic to is pandemic. quarterly only destination quarter's pace. sales prior much The second in of XX,XXX quarter compared first year the improving tourism residents has sales first at quarter. XXXX. limited, travel with Airport of exceeded

at last remainder compared dollars clientele, has booking a XX% by record arrivals Similarly, ago and and arrivals The quarter year the by to year current continued same higher card is also booking the ago for levels. picked increased period, period. higher at strength sales Within pre-pandemic down rate the year-to-date XX% XXXX, level time were from XXXX during Popular's the than been housing increased credit the above year. than market. of have tourism March has loan of we Puerto see compared which debit in for to to in XX% previous the Hotel Rico. in year's hotel up year While the the XX% first were in month demand originations BPPR significantly. Auto was

XXXX. While All and on quarter economic quarter, results our pleased financials. of decreased the quarter in XX% the by by encouraged it originations I extremely more over BPPR has call our to for the we the Carlos to of volume mortgage versus outlook. XXX% are details all, now turn the first dollar first for compared increased at with last

Carlos Vázquez

morning. Good you, Thank X. Slide Please to Ignacio. turn

QX. operating portfolio additional equity to a expenses A activity. $XXX mortgage $XXX expand method. the benefit million, PPP As in for provided loan the the at The of the $XXX first the quarter-over-quarter actions valuation million Popular held expense out slightly primarily fourth driven to driven which positive from was for reclassification closed from million. Today's quarter decreased were branch the by net million QX credit in quarter is for investments higher MSR by quarter. to quarter included this the down a $XX $X.X million, provision $XX under later. commitments, category as closure variances losses. slide increase million press of banking mainly provision interest deck. the moved of will by by noninterest $X by well of was loan to as of fourth earnings for Lidio from $XX expenses details million first million related quarter, Bank million increased an to in Total to the $X.X income unfunded due million variance release higher $X.X million, information million QX $XXX income in appendix Net the usual, from $X earnings income

$XX.X net included increase costs the adjusted higher a fourth have these items, million. personnel in variances and The commissions, X due in quarter the the in first $XX million which corporation, expenses incentives compensation Excluding to lower $X.X by progresses. employee ramp on increase for are other to been offset to quarter the million the that tend performance financial expenses lower costs, advisory partially tied by of as were which year up the professional fees would

As lower expenses. down expenses were seasonal business $X.X million due that promotional to advertising

For and million. quarterly to expenses XXXX, between we average $XXX expect continue million to $XXX be

a sentiment to could of in later year, bonuses. business and improved Continued and credit lead in higher especially result outperformance expenses incentives, commission the as

the quarter effective to rate quarter. XX% was Our in for tax fourth compared the XX%

and roughly the was is mostly Bank. quarter. few interest in loans XX lower by primarily offset will million in PPP the The X.XX% quarter. increase by of this increase fee million, and to improved PPP than QX tax seen These third rate by higher $XX primary approximately XX% year. in points deposit by the Slide year, reduced of approximately mostly NII basis, to a this commercial from related of Due from income $XX.X during X equivalent fees time, quarter. deposit for and quarter, For equivalent million, round. yields in of in interest million. the of PPP in fourth XX% Total the XXXX, X.XX% higher-margin retail expect and mostly tactical an XX%. most were Net equivalent at of by higher the to to next higher increase $XXX is NII income on of a fees quarter, On million the The a recognition in forgiveness, higher quarter these of ground NIM loans $X costs, result $XX.X remaining in proportion interest points. taxable year. round on the loans NII is grew million net income $X.X Deposits and loan first correspond $X.X compared was the drivers higher fourth last margin portion the to were be BPPR's the increase loans fees income costs. of the basis quarter guidances This income of income commercial to the unamortized of due we PPP million X lower increase this This generating second as $X X.XX%, yielded of by majority At of PPP factual quarter was range segments. that by anticipate now second of QX. an the we X. higher basis million, compared a second which quarter. PPP basis in $XXX Please million was increased taxable by $XX.X and forgiven than believe last $X an X between the interest we be as driven billion indicated which this points to days middle basis million, accelerated to QX. and turn The Popular effective X.XX% partially related

these PPP be result our the guaranteed ultimate speed forgiven. at to depend of asset rest We which XXXX. the The expect stable SBA are X and will margins mix, loans round origination on

factor of public quarter. with end As most The the received $X,XXX These quarter, not in billion, important of person, Government increase in will amount public the revenues first the Act and quickly do CARES deposit net early deposits include to the of the of timing the is tax recent which will be year, and benefit additional balances which April. an on first half Rico $XX In in were residents balances, disbursing were in Puerto the stimulus Rico Puerto roughly of action. federal line stimulus depending Federal last corporation's margin. per interest the this

expect down current public the deposit eventual debt of come by We restart driven service. restructuring continue time, over the and to to of public the balances sector debt

accounted in portfolio ending decrease. of by first Our quarter. balances in for decreased round dropped $XXX loans were PPP million, $XX the issued second the million loan while round, million. by The million PPP disbursements $XXX $XXX the

strong fourth to We since quarter. portfolio have see growth are either the other and loan our continue of and auto while in flat demand leases, loans or portfolios all net decreased

PPP We of expect client as limited resulting impacted by be to liquidity. continue will demand levels well as unprecedented loan from losses forgiveness

next turn from X. for to until As loan materialize resulting economic outpace do demand PPP should to when loans. of expect such, we Slide Please year not expected goodness overall growth growth

capital remain Our strong mainland peers to and regulatory requirements. relative levels well-capitalized

XX equity up XX.X%, ratio Our QX points Tier in basis QX. was common from X

this our of includes plan XXXX capital As Ignacio start mentioned call, X the announced actions. at

per First, an of quarterly $X.XX common $X.XX to dividend Popular's share. of increase or XX.X%

dividend payment Board We in expect third quarter. declare our QX to in the the for

of a consideration. million. program execute to is recent up been $XXX mechanism common we still of implementation for the our have Well, will buyback Secondly, under ASRs, stock programs the executed via buyback repurchase this

capital to the during in to XXXX our continue will of and explore periods. manage future remainder We opportunities

offset decrease stock capital XXXX capital resulting announcement filing $X.XX plan capital decreased common normal Popular's do for by of hopefully We of lower However, of further by book our year. now to to January our plan by X in share net gains dividend quarter. no expect or our was -- value This execution on we delayed this repurchases Annual later and schedule planning The $XX.XX. by cumulative XXXX return increases quarterly not our partially an XXXX than unrealized driven per webcast. was our investments, actions income. to

to Lidio. With quarter. equity turn the call the first Our return on tangible XX.X% that, in was over I

Lidio Soriano

Thank and morning. Carlos, you, good

million on During quarter, to with Puerto results, loan the the of inflows metrics. to a our quarter. of the mostly by loans, was days consumer NPL the #X of related U.S., loan the $XX mainly current loan NPL as quarter. first pandemic. COVID by in Puerto discuss of Slide amount unprecedented in turn pandemic improving million, to NPL NPLs during a an driven driven inflows economic million, corporation disruption or million entire this credit million decrease of to continue by portfolio. the of decreased mostly another decrease cost turn decrease reflecting by the million discuss quality a by decreased $XX to by NPL excluding a end million, result Nonperforming X.X% charged by its post Rico, positive government lower ratio lower our uncertainty NPLs of to increased partially of quarter payment mainly stimulus in that to in to $X the compared the the lower Please fourth activity. to mainly quarter, inflows, due metrics $X NPL million. $XX of the portfolio process was given the The held impact exhibited to improved Compared of that XX off. million assets to was In decreased by coupled $XXX $XX mortgage driven Construction environment, the of credit the reached NPL inflows. due in $XX renewal $XX construction to Slide $XX driven decrease was At improved year, to the by at reserved prior caused total Rico, credit loans million. cost, monitor by #XX quarter, moratorium X.X% mortgage previously the Notwithstanding economic response NPLs we'll end and the Please and

quarter. reserved to allowance in X.XX% further annualized charge-offs outlook quarter. decreases related million, net lower in discussed $XXX quarter. losses million previously prior to the loans. XX economic that the were commercial average compared losses the $X the million net $XX loans The $XX decreased million credit allowance by fully quarter-over-quarter. net points previously offset by improved to charge-offs higher impairment quarter construction corporation's improved charge-off charged for $XX decreased partially quarter Turning charged flat by Rico, partially mainly charge-offs credit from during million an or for by in loans. by XX charge-offs prior was million loan as included and U.S., $XX the of amounted million, the following to portfolio the to X.XX% held $X the decreased related to due to driven sale $XX prior by driven of quality or the primarily Slide off Puerto in as points in Net by ratio were The of recoveries credit to mainly Consumer off In the million decreased $XX loans #XX. The to slide. basis million portfolio of by held from basis In during reserve

discuss last Program in Protection Payment quarter year. for of to guaranteed loans allowance allowance in X.XX%. drivers XXX% The losses. to ratio the losses loans, the to compared and turn XXX% is this details was ratio for the variance #XX mortgage to portfolio credit credit fourth of of Slide NPLs Excluding held the in Please on

mix. compared quarter. changes credit quarter, reserves by outlook, $XX the the the were quality decreased Variances and to qualitative well million, allowance by previous economic as to losses the portfolio as for when During credit driven

probability We framework estimation and weights to process. ACL combine analytics, different realizes scenarios. SX Moody's of scenarios baseline our SX, Our

strains evident, While this Rico strong utilize around is for systems. cautious the recovery given to outcomes available the we uncertainties virus the impact remain to adverse Puerto government's new of ability all and

followed scenario, highest scenario. by a the As the baseline to continue result, to probability, more pessimistic the assign we

growth, Our baseline in X.X% rate X.X% when unemployment rate growth to number Rico. Puerto for GDP an largest U.S. being XXXX improvements the the previous XXXX economic estimates. drivers. unemployment for is with scenario current macroeconomic the at The forecast forecast the GDP variables and down shows uses both GDP compared a The of for

XXXX the the While X.X% for for now unemployment in average and The macroeconomic million. the scenario Puerto for rate decrease X% ACL is forecasted change to U.S. Rico. caused by $XX

we improved by metrics exhibited a To first commercial deferrals payment cost During Total changes summarize, the sales million. in quality and credit during added by aided estate fluctuations credit related quarter, quality volume quarter, include portfolio loan $XX U.S. reserves and qualitative stimulus. million exposure in Portfolio decreased our mix. $XX portfolio our the changes the to government in real

will related that, I economic remarks. to for would portfolios the of carefully risk outlook. to turn pandemic and over continue Thank like We Ignacio the monitor to the exposure call concluding in With you. changes the to his

Ignacio Alvarez

Thank updates. you, Carlos, and your Lidio for

Our earnings, under XXXX continue planned to deposit impressive continued Popular quality, improved momentum, off with colleagues levels, driven very start strong credit growth actions. positive challenging by circumstances. achieve capital results and record customer

about our optimistic opportunities economic environment remainder are the and of for the the We year.

considerable vaccination a such we from is to of Recovery In and to stimulus related level faster pace. be yet unprecedented now economic sectors are Puerto expect a to for to activity will encouraging. coming at Their also in The significant benefit still dispersed, of we and positioned generate addition impact of well combined COVID, activity. that Rico the should which the start has Funds have flowing amount years, many Hurricane Federal pace

lending authorities local in vaccination employees markets, in has now other XX% vaccination the our that more to facilitating I to to am have are we still X particularly personal of As opportunities proud by virus. committed the colleagues. been data We work dose more am all least help of vaccination Puerto Rico facilities our I and Rico. and happy accelerate massive health than we in and demonstrated, efforts to received Puerto report for community key with controlling our the do is organizations have the at collaborating of have to vaccine. and encouraging how our

supporting and focused in opportunities strong transition team ahead. our communities Our to through that to post-COVID customers to is position reality. that lie recovery on a the We're and our leverage the contribute a

We are answer your to now questions. ready

Operator

[Operator Instructions].

of question is from UBS. first Our Brock Vandervliet

Brock Vandervliet

Rican as Puerto looking off a number GDP. for believe baseline picture on starting guess, is I big that X.X%. I

of just time that the a context in saw was could talk kind that when and like you put Puerto it number If last we Rico? for

Ignacio Alvarez

trouble. mean, I we've Wow, that I'm having think seen maybe I don't XXXX. since

Carlos Vázquez

Yes, exactly.

The it's probably XXXX happened. first that few years last the after time

Ignacio Alvarez

time. long A Yes.

Brock Vandervliet

Yes. to the I run you it Could your this I than gearing that? sooner expect loan where could be should of That's growth guess, recovery continued kind share growing what sound overpower year. project material in and the next be really given greater we you customers, what figured. momentum market to off until like than don't PPP

Ignacio Alvarez

the mean doesn't see that economy. now the it of at Puerto bidding money I flow Rico have require will it this because for to something is this with bidding most could and the doesn't it kind agreed whatnot. government year, we through see of end on these we but of the process. think start the some that the of And What out projects be come federal much a example, you'll time for to to process of takes for government government work mean But the I take pace of time the money. procedures that maybe the hopefully, funds sooner, expect

that businesses lot And to believe that there's large systems of time going both consumers mind and liquidity of such amount a we the in have for it's to liquidity. a So still take flow. again,

be a we off the coming the So maybe will portfolio from bit. also western runoff but PPP. do have it surprised, We still have running

So we loan to in be will what trying prudent eventually. be general, in there projecting. we're growth believe we're But do

to it. start predict to we'll hard see Just when

Carlos Vázquez

outweigh whether far in we're what payouts feel PPP just past, it's adding the the and probably we in timing short is is coming, of liquidity Brock, as term, than that to As portfolio. the the it the

Operator

from Cassidy is Gerard Capital Markets. RBC The of next question

Gerard Cassidy

you $XX public restructuring, the billion Rican March that going public beginning us debt? was to on with an of then Ignacio, PREPA of debt, in the any maybe pensions. Puerto year what's so, there share this and the on made could be also at And update addition I the or think may in a debt with on updates restructuring the that, then on proposal

Ignacio Alvarez

I The the was mitigation that close it is they're and getting moving say Okay. pretty arbitration, going can an on forward, significant the it's sign on looks of but debt to public like along. amount the mean, the to. to a going mediation, really agreement I creditors

But said, the that put to goal which The fiscal that pension done think trying some significant they've think board a of process. is rumors be in pensions, because, I restructuring this and made has I XXXX, the very the get tied would into that plan. Currently, heard one. we've it reduction albeit require a the at deal some small much obviously, least of elements in optimistic. different

now. that's So think negotiated being I

that's sticky in is think government than expected, can the way. that you some And that revenues make The than do given up I resolve its another how government of have point most expected. can perhaps economy better done probably is better the doing the important that?

optimistic they're deal. year wouldn't so progress. relatively predict I because a that see. but they're complicated, I'm this making it's getting close to will we'll So just happen it

On now. the right that PREPA I don't where know is restructuring,

the hope asking be and they fiscal I Luma the put had motions contract, they most those government to electrical color. payments board the approve sides that of approved the them. some a be of the filings issue in union transition right had have sorry, and both think to gives payments one to to the those bankruptcy I'm that under from phase. over workers' approved are and for pressing proceeding -- I to you payments And X. the fiscal June opposing the some starting and payments court the distribution and supposed the motion that -- is to the Luma prove is take transmission forward initial now the the

Gerard Cassidy

Yes. good. No, very

sitting step, can initiative debt restructured the guys resolved let's to next take you think through point, public at the it Can they they're place, billion. we some once how the you are said you assume now well. see the their any you given you Now it working How us are the about start approvals think, here, as that and in debt they now service walk do all down is again? Carlos, $XX public deposits pension those I thought? way Have that

Carlos Vázquez

-- the know, Well, something Gerard, exact the of execution be have do not we of no, things for $X plan an upfront Yes. magnitude we seen onetime the there in restructuring. the billion. will But that imply the payment

necessarily Now they a a government high that the of the that be come good in of probability chunk as other accounts from in Not good will will chunk probably from banks accounts the has us. it Popular. well. have payment funded all, But

whatever So effect That then that liquidity if million $X amount, will we'll all is. or to million, deposits a as to were of deposits not million, happen, that see collateralized. because, $X fully need deposits be know, in outflow go by probably $X Popular have you some down

whatever we back collateral do. it will our get we repay So want to said and we

our So or closings this. little a is a of sheet material deposits net lot liquidity sheet balance an material it's is our balance on also closer R&D. significant on But and also is this funds bit when a will the because little. in outsized have sheet. business -- effect of now rate the leave in right because balance upon for bank environment, the cash income a interest a it's cash the balance a amount of to not of And it to course event not start sheet But would this liquidity earning are very because those interest event. normal departure Obviously, of looking event

Gerard Cassidy

And good. then just finally Very capital. on

to know, Reserve third buffer the you've need pre-approval DFAST I construct, all here your and these Fed that starting mainland not and on you the banks you And the and construct look go through, to capital to do action largest of our the plans in that banks came do you there's their the capital at out them assuming the had the When share with go quarter. to going be will for on the past? of part you'll approvals we still dividend think not Federal of obviously, as pre-approval plans that stress be going for you know, the process we're relationships increases. the forward of, repurchase in going process in any know for gotten need 'XX? you Or as big your think the you've pre part have in banks past, relieved the you're As

Ignacio Alvarez

Yes.

the we've I good say, don't is think Fed our I to approve we've checks, the what been we've I done -- think, I is with think, a And established relationship. careful technically, word stimulus they the in would releases.

We And for better than faster much tell become in us. we at So I responding them thinking. we're them generally, much with past. process. capital plan. worked what We share think our are going to It's continue the that they've

I for it's think worked us. So

I process. think that we'll stick to

Operator

Cyganovich of is Citi. question Arren next The from

Arren Cyganovich

on up the following Just debt restructuring.

terms out, new the of that would going or through either development to that business? business impact in how Beyond just the you deposits kind island to how of Popular? new flow And do expect

Ignacio Alvarez

it's and believe can the It's going to we more I be positive. lot stripe are guess. of get personally here, a I a personally good -- tiger I off the restructuring. I happening mean, one things if

of that negative will show had -- Rico a moving the is Puerto past. has lot of headlines all, in it First the forward. We world

-- will know headlines seeing what be budget much can Obviously, going predict will it to be that its one. Puerto out Rico how we're more I positive think you easier this count. to for start priorities, future build and

but it's a count priorities we from a priority it's strategic We'll know positive psychological, now planning can how big So positive just potato I and think much money a also consent. that on. big

a to big be I positive. it's So going think

Arren Cyganovich

year? I And And loan loans then PPP what your would excluding PPP, Okay. flat at guess, of the modest the growth with growth loans? you being kind least be or of expected expected have current year, to balance the for the this is

Carlos Vázquez

is $XXX -- $XXX -- million, about balance X in think, the PPP the the in and The PPP first first million in X. I

designed dollars second we phase take change it, remember, whether the leaving forgiveness see of phase until evolve about that, the that smaller can some -- will was growth this a million a is PPP second of it smaller XXX it's going wait of they forgiven, goals. be is has when so the And what get process. to the have of what's of and but right? simplified ex loans it next Because on lot the rest the more than year in year of it's And actually depend and lot PPP this to advantage beginning

that impossible phase we second the see accelerate. not it's forgiveness might of So the

mentioned, at time, But this it things clients their on next point we first half I to year. be could if think be row, get the earlier. going As in the it's

of that what So to chunk is time be. depend going it on will this don't one XXX we know exactly

Ignacio Alvarez

we like as that's are that's areas auto mentioned seeing a loans. And strong, in times, several growing. strong growth we've Definitely, portfolio

think expect. in York And back most Florida U.S. expect is I come back to people New we think I more we momentum believe will South the than basically mainland normal. can also, that faster

closing. also those So looking at that areas are we're

Operator

question Instructions]. Piper from Twerdahl [Operator of Sandler. The is Alex

Alex Twerdahl

of stuff. modeling couple First around off, a just questions some

have get change Carlos, maybe NII, year see that. you like NII at look if any that this to been you've of or about or can even the rates some we in you increase levers talk that I anything As actually don't doing

those you your quarter. And there in the of next What seems of could couple some it then think quarters? billion or was out to me timing sort on rates, or debt, cetera? debt of I securities securities put help the preferreds et look some like the at that as I first purchases there. of For there's the example, NII over some some some opportunities cost including to Are $X there out higher actually in retire trust debt, over of purchased that

Carlos Vázquez

portfolio the cash Yes. quarter, you it in also right, some the largely some that Alex, first Well, are quarter. movement did quarter, investment we of was the we recall, at in we the part In did you -- quarter. in that first latter the as of the into fourth more of

core. maybe to lot income up. the difference its core a going in down quarter. actually between that versus bit margins a PPP the to up, want But just of is quarter the see is you net the flat effect or and you So The second staying of PPP. going while made even movement The happen going reduce first what the little will balances

to If So in deposits, elephant have in And big us the level be second depending as that asset of our will continue big and will mix. say room true margin quarter. of on as we the -- well. is magnitude the influx you a for the big, know, in other that then

Alex Twerdahl

of NII obviously just we at be take ignore right, going look cash those the down, was NIM. what And kind purchases, maybe it the out little potentially what out quarter? PPP, the that's mistaken, yield blended a help for on to was $X.X securities -- the just second If just that, take not boil there's because if could volatile, and I'm billion, bit that in

Carlos Vázquez

exactly. I don't remember

range those are stuff off. the under of the the don't remember the puzzle all don't under course, are we're remember of that having keeps that slightly portfolio. point from probably higher-yielding mostly other X%. -- But -- of But X%. probably which the they're is, from that runoff Fed something from treasury, at so investment was, in the piece goes is that Alex. I probably tax-free It's piece our they running it it That's $X.XX up to that think I view.

it's NIM on points. So yes, X.X%, X% still that -- running you out, weighs is stop the than NII. better But basis have a if was on XX

Alex Twerdahl

cost Got at it. to some what about debt? point the retire of or then higher XXXX? that opportunity in an preferreds Is there other And trust

Carlos Vázquez

in We the capital year. to remainder manage of our to opportunities the will continue look

statement our think for itself. stands I

Alex Twerdahl

on the question, -- kind of And back just up some it's then unemployment the the of loan tough power putting current in obviously, just as is going bankruptcy, rebuilding what next to the benefits, the be thinking that's growth are to resurgence against like so, are growth in circling growth or end ramp-up X that a as really you just housing trickle flawed? the explode to with huge seems back of Okay. into I And things some stock, it expanded prepare guys you possible? for as It gates. into you doing workforce. might maybe back Is potential this that of tourism, think year XXXX, over if year. exiting next we rebuilding anything there the But pretty grid, out the loan is a that but happening year, people not just loan look line the

Ignacio Alvarez

The about Rico in loan think to handle over the I have and grown have resources and years. the human we Well, sizes Puerto that. thinking technical resources the

different closely lot bit it's something expecting be potential talking the that handle. of loans, looking that We're a We're will and that clients. our a to to we're in for at that efficient larger more So that's have growth. industries

investors that renewed are mainland referrals coming seeing for looking good Puerto interest people from opportunities. we're know Rico getting to And We lot of from a us.

talking waiting our predict the to in what's are We're for we people and to not to going in people. So to just office. happen we're come trying future,

expect needs they their what Asking are to be. going

see just I I really, we're position And that are coming. ready. -- take of see that good think opportunities just a said remarks, materialize. advantage really in in we as we're we see to to we the it We So my need

Operator

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

Ignacio Alvarez

crisis. your you out July. updating you Thanks We again joining to look COVID Thank as and in for our today for much. stay progress we way this of work all please our safe us on questions. very forward And

Operator

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

now may disconnect. You

Popular (BPOP) 28 Apr 212021 Q1 Earnings call transcript