First BanCorp - Q3 2024
October 23, 2024
Transcript
Operator (participant)
Good morning, all, and thank you all for attending the First BanCorp Q3 2024 financial results conference call. My name is Brica, and I will be your moderator for today. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. I would now like to pass the conference over to your host, Ramón Rodríguez, Investor Relations Officer at First BanCorp. Thank you. You may proceed, Ramón.
Ramón Rodríguez (Investor Relations Officer)
Thank you, Brica. Good morning, everyone, and thank you for joining First BanCorp's conference call and webcast to discuss the company's financial results for the third quarter of 2024. Joining you today from First BanCorp are Aurelio Alemán, President and Chief Executive Officer, and Orlando Berges, Executive Vice President and Chief Financial Officer. Before we begin today's call, it is my responsibility to inform you that this call may involve certain forward-looking statements such as projections of revenue, earnings, and capital structure, as well as statements on the plans and objectives of the company's business. The company's actual results could differ materially from the forward-looking statements made due to the important factors described in the company's latest SEC filings. The company assumes no obligation to update any forward statements made during the call.
If anyone does not already have a copy of the webcast presentation or press release, you can access them at our website at fbbinvestor.com. At this time, I'd like to turn the call over to our CEO, Aurelio Alemán.
Aurelio Alemán (President and CEO)
Thank you, Ramón, and good morning. Good morning, everyone, and thank you for joining our call today. This morning, we reported another strong quarter for our franchise, earning $73.7 million in net income, or $0.45 per share, which resulted in a solid return on assets of 1.55%. Adjusted pre-tax pre-provision was slightly down to $1.12, mostly due to an increase in expenses, as we have discussed before. Still, the organization continues to operate in the 52% efficiency ratio range, in line with our guidance. Credit demand continues to be healthy in our environment, resulting in actually our strongest quarter of commercial loan origination for the year. Our loan portfolio grew by $63 million, despite higher levels of unexpected commercial prepayments that amounted to approximately $102 million in the third quarter.
Even though we continue to see a very strong pipeline, and we continue to work towards our 5% loan growth guidance, but we now expect our loan portfolio to grow closer to 4% in 2024, and actually it's primarily driven by the higher-than-forecasted prepayments that I just made reference to. In terms of deposit market dynamics, it seems to be behaving as expected at the start of this easing cycle. Core deposits other than broker and government deposits remain at $12.7 billion. We did prepay some broker CDs. Most of the decline coming from non-interest-bearing deposits. We, you know, we're broadly monitoring deposit flows and potential deposit repricing opportunities as we capitalize on the expected rate environment, which started and will continue in 2025 with our target of achieving NII improvement over the period.
Asset quality also improved during the quarter, with non-performing assets coming down to just 63 basis points of total assets. We think the upcoming rate environment should be favorable to commercial customers and bodes well for additional asset quality improvement. Finally, you know, our liquidity and capital position remains quite strong. This quarter, we were able to sustain our commitment to deliver 100% of earnings in the form of some capital actions by redeeming $50 million of our outstanding junior subordinated debentures and paying $26.3 million in common dividends. Even accounting for these actions, our capital ratios improved during the quarter, and our tangible book value per share grew by 50%, benefiting from the rate backdrop and the short duration of our bond book.
We enjoy a nice degree of capital flexibility and expect to deploy it in a manner that best suits the long-term interest of the franchise. Let's turn to page five to talk a little bit about the environment. You know, we continue to experience, you know, what we consider a stable and positive economic backdrop, is reflected in a good quarter of originations and also in the trends of asset quality. September unemployment in Puerto Rico just came out at 5.5%. Actually, historical lowest in 1976. It also reflecting, you know, year-over-year, uh, payroll employment improvement of 1.6%. Our team remains focused on expanding existing relationships, building commercial loan pipeline, and adopting new platform technology.
We did launch in September our nCino platform, which actually provides a completely digital experience in the commercial lending workflows. We continue to generate a lot of organic capital. Our priority is to fund loan growth, and continue franchising investment in technology to better serve our customers, while deploying any excess capital into ongoing equity balance sheet, you know, management opportunities. We are proud of our third quarter results. We thank all our employees, and we look forward to updating you in January on what to expect during 2025. I will now turn the call over to Orlando, and we'll be back to answer some questions. Thank you.
Orlando Berges (EVP and CFO)
Good morning, everyone. As Aurelio mentioned, we reported $74 million in net income for the quarter, $0.45 a share, which compares to $76 million, or $0.46 a share last quarter. The provision for the quarter increased $3.6 million to provide for increases required in the allowance for credit losses on the consumer loan portfolios, based on charge-off trends and the size of the portfolios. We also had some slight reductions on the effective tax rate, as the relationship of projected taxable versus exempt income changed a bit from what we had before. Net interest income for the quarter was $202.1 million, which increased $2.5 million as compared to last quarter.
This quarter, we did have an additional day, which is approximately $1.2 million in improvement in net interest income. And we also had increases of $3.8 million in interest income on loans. But on the other hand, the investment portfolio income was down $1 million as we continue to see repayments and maturities coming in. Loan yields were down one basis point. We did have small impact on the 50 basis points reduction in September. Obviously, the lower yields there are gonna affect the yields on the floating rate component of the portfolio. Overall cost of funds however stayed flat in the quarter.
Net interest margin expanded three basis points to 4.425, mostly reflecting the change in the asset mix from the deployment of the cash flows from the lower yielding investment securities to fund higher yielding loans and bringing down the wholesale funding cost. Regarding net interest margin going forward, what we expect to see the margin to be flat, similar to this quarter last in the fourth quarter of 2024, with improvements going into 2025. Our expectation is that rates will come down an additional 50 basis points this year, and probably 125 basis points in 2025.
But the impact on the downward repricing of the commercial floating rate portfolio, it's gonna be compensated by the repricing of the cash flows from the lower yielding investment portfolio and the repricing of deposits, which typically have a lag in the repricing component. Also, we have been repurchasing the subordinated debentures, which have higher cost. And we have let some brokered CDs maturities not renewing them. And those are higher cost funding, as well as any new renewals would be done at a lower cost. So that will improve the margin.
In terms of the securities that to put in perspective, our estimates are that we'll see another $480 million of repayments and maturities in the portfolio in the fourth quarter of 2024, and approximately $350 million in the first quarter of 2025. This, the repricing of these cash flows either through loans or securities, will be seen in the first half of 2025. Other income was fairly flat in the quarter. We did collect an older insurance claim for $100,000 and enter into other income, but otherwise was fairly stable. Expenses were $122.9 million, which is $4.3 million higher than last quarter.
OREO gains this quarter were $1.3 million as compared to $3.6 million last quarter. We had last quarter we sold a large commercial OREO that had been on the books for a while, and we realized $2.3 million gain on that sale, which was not realized, nothing similar this quarter. If we exclude OREO, expenses for the quarter were $124.3 million, which compares to $122.3 million last quarter. This increase includes about $1.6 million in higher personnel costs related to merit increases, as well as an additional day, payroll day in the quarter.
We also saw increases in consulting costs related to some of the technology projects, like the nCino project Aurelio just mentioned. We had higher electricity costs and higher rental expenses because we're charging to expense over the last four months of the year the remaining rental agreement of one branch that will be closed at the end of December. As Aurelio mentioned, our efficiency ratio continues to be around the 52%. Based on the current stage of several ongoing technology projects, we estimate that our expense base for the next couple of quarters would be in the $123-$124 million range, slightly higher than before.
We will provide more guidance for 2025 as the year ends, and we report full year results. In terms of asset quality, we had a reduction in non-performing of $7.8 million, which represents 63 basis points of total assets. The reduction was mostly on the sale of an $8.2 million nonaccrual commercial loan that we had in Puerto Rico. Inflows to non-performing were down $5.3 million. Commercial loan inflows were $17 million lower, but consumer loans increased $10.5 million. You might remember that second quarter inflows included a $16.5 million commercial relationship in Puerto Rico that was migrated to non-performing.
On the other hand, loans in early delinquency registered a decrease of $4 million. The decrease in the consumer loan portfolios was almost $8 million, $7.9 million exactly, while the commercial portfolios increased $4 million. However, this commercial increase was really a case that matured at the end of the quarter and was in the process of renewal, but it's up today in payment, so it would come out from early delinquency now in October.
In terms of the allowance for credit losses, it's down $7.5 million to $247 million, with most of the reduction coming from the residential and commercial allowances that declined $12.9 million due to improvements in the macroeconomic forecast and also improved financial conditions of several of the commercial borrowers that we have. On the other hand, the allowance for the consumer portfolio did increase by $5.4 million due to the recent loss trends. The ACL ratio, overall ACL ratio is down to 1.98% from 2.06% on the quarter, as we continue to see good credit trends in the commercial and the residential mortgage portfolios.
Net charge-offs for the quarter were $24 million or 78 basis points of average loans, which compares to 69 basis points last quarter. Including the charge-off, it's $1.2 million on the sale of the commercial loan, nonaccrual loan I just mentioned that represents approximately four basis points of the increase. Consumer net charge-off increased $1 million in the quarter as compared to the third quarter. On the capital front, regulatory ratios increase as we continue to be significantly above well-capitalized. We did deploy, as Aurelio mentioned, 100% of the earnings into the junior subordinated debenture repurchase we did in the quarter, as well as the payment of the common dividends.
But capital did increase based on the excess of earnings over the dividends. The tangible book value per share increased by 15% to $10.09, and the TCE ratio reached 8.79%. Mostly a combination of the $160 million increase in the fair value of the securities as well as the earnings for the quarter. Still, we have remaining AOCL on the books, which represent around $2.92 of tangible book value and over 230 basis points of the TCE ratio.
We will continue with our capital deployment in a way that it's, as Aurelio mentioned, best interest of the franchise and our shareholders and in accordance with our capital plans. This concludes our prepared remarks. Operator, would you please open the call for questions? Thanks.
Operator (participant)
Thank you.
Orlando Berges (EVP and CFO)
Aurelio?
Operator (participant)
If you would like to ask a question, please press star followed by one on your telephone keypads. If you change your mind at any time, please press star, then two. And as a reminder, that is star followed by one to ask any questions. We have the first question on the line from Timur Braziler with Wells Fargo. You may proceed.
Timur Braziler (Analyst)
Hi, good morning. My first question is around the balance sheet. Just wondering, what your thoughts are around when the balance sheet can actually start increasing year? And then as it relates to NII and the release, it sounded a little hopeful for NII growth in 2025 being driven by bond cash flow reinvestment. I'm just wondering, you know, what the correlation is between the ability to grow the balance sheet and grow NII in twenty-five is?
Orlando Berges (EVP and CFO)
There are two things there. The cash flows will continue to come from the investment portfolio and will continue to reprice. As of now, most of that cash flow has been reinvested in loans and either that or staying in cash. That's why necessarily a balance sheet is not necessarily growing. We will continue to put monies into loans. And as Aurelio mentioned, we're expecting like a 4% growth this year. And that will continue to be a stable balance sheet until we feel that the investment portfolio size is at the level that it's on average what we would like to maintain for liquidity needs and for collateral public funds.
At that point, we will start reinvesting some of the money, and there will be some growth on the balance sheet. As I mentioned, Timur, some of the brokered CDs that we had on the books that mature, we're letting them go. They're high cost of funds, and at this point, we still have good liquidity coming in from the investment portfolio. So not necessarily we need to increase the balance sheet to maximize earnings. But clearly, that's something that we should start seeing in the latter part of 2025.
Timur Braziler (Analyst)
Okay. So that latter part of 2025, is that kind of corollary to when you're expecting net deposit growth as well, or could we see some incremental deposit growth here in the near term?
Orlando Berges (EVP and CFO)
Yeah, deposit growth have been sort of flat. It's a little bit up or a little bit down. When I talk about deposit flow, I typically exclude, for this discussion, brokers and government. Brokers, we totally decide, you know, when we want a little bit more or a little bit less. Some of it is being used to fund the Florida, our Florida operations, so we manage that. And government, it's sort of a stable kind of base what we have, so it comes up or down a little bit. Looking at the other deposits, you saw they were just slightly down this quarter, about $36-$37 million. We had a little bit of a shift between interest and non-interest earning.
You know, we feel that the market in general will stay sort of that and maybe grow a little bit, but we don't expect to see significant growth on the deposit portfolios. You know, only the reinvestment of the interest component increases the portfolios typically in the market, but obviously the market is coming from a humongous amount of liquidity from all the funds that were allocated, and most of that it's gone by now.
So what's coming in? It's some of the other programs that we have discussed in terms of still remaining FEMA and some of the pandemic kind of infrastructure funds that are coming into the market and construction-related funds that are coming into the market.
Timur Braziler (Analyst)
Got it. And then just last for me, it looks like although the Puerto Rican banks this quarter had an uptick in some consumer credit. I'm just wondering the broader health of the consumer there. Have we kind of troughed out from some of the pandemic benefits? And I guess, you know, what are we looking at now for general consumer trends on the island?
Aurelio Alemán (President and CEO)
I think we talk about normalization. Early in the year, we talk about, you know, we actually started talking about this in 2023. You know, the post liquidity increase on the consumer pocket by the pandemic, primarily, as that moves out, we're expecting some normalization on the behavior of the consumer portfolio. Started, you know, for the credit card in 2023, continued to 2024. And then, you know, what we see now is that, you know, we're reaching a peak, and we should, going forward, as we're seeing today in some of the early delinquency metrics, show some slight improvement. You know, that is coupled with, you know, whatever happens with the demand. So we're not increasing risk appetite.
We have been very firm in, you know, doing that. We have metrics for each portfolio that and goals of tolerance of delinquency and losses. I will say, you know, we expect stability on that portfolio with some, you know, delinquency and loss improvement over 2025.
Timur Braziler (Analyst)
Great. Thanks for all the color.
Operator (participant)
Your next question comes from Steve Moss with Raymond James. You may proceed, Steve.
Steve Moss (Managing Director)
Good morning. Maybe just starting here-
Aurelio Alemán (President and CEO)
Good morning, Steve.
Steve Moss (Managing Director)
... Morning. Maybe just starting here, or following up on the securities portfolio here. I heard you, Orlando, on the $350 million maturing in the first quarter of 2025. Just wondering, you know, kind of what are the expected cash flows beyond the first quarter?
Aurelio Alemán (President and CEO)
480
Orlando Berges (EVP and CFO)
Yeah, the 480 this quarter and 350 in the first quarter, it's. We have for 2025, full 2025, including the $350, we're estimating that it's gonna be somewhere between $1 billion and $1.1 billion, based on maturities and-
Steve Moss (Managing Director)
Okay
Orlando Berges (EVP and CFO)
... and repayments. That's full 2025, including the $350 on the first quarter.
Steve Moss (Managing Director)
And the coupon on that, I'm assuming, is around 2%±?
Orlando Berges (EVP and CFO)
It's minus. It's really about the maturing component is probably gonna be somewhere between 150 and 160.
Steve Moss (Managing Director)
Okay
Orlando Berges (EVP and CFO)
... so it's the overall yield, it's about one ninety, one eighty something. But some of it, it's also things that don't mature until later in 2026 and 2027.
Steve Moss (Managing Director)
Okay. Great. Appreciate that. And then in terms of... Just curious here, you know, with the Fed rate cuts, kind of want to get a sense as to how you're thinking about the deposit, the pace of deposit repricing and kind of what you're seeing here with the 50 basis points cut?
Orlando Berges (EVP and CFO)
... Deposit repricing, you know, obviously have to be divided into three components. The typical non-interest-bearing account, those had a beta coming up of about 13%-14%, so we're assuming that's gonna be following that same pattern. In the case of the government side, betas were about 78%. We feel those are gonna come down at maybe slightly lower beta than that 78% that we had coming up. But clearly, those are the ones that do have some components that will reprice faster. Then, in terms of time deposits, we have already started adjusting some rates on new issuance, but obviously, the repricing will follow whatever terms.
Clearly, people were not making, you know, the average time deposit. It was mostly one to one and a half years. We didn't have much in terms of longer things being originated. So it doesn't take that long to start repricing, but we've already repriced some of our table rates for those terms going forward. So, I mean, again, I always see a lag on the typical deposit portfolios repricing. That's why I mentioned that we are expecting margin for the fourth quarter to be sort of the same line of the third quarter, because some of the repricing on the lending side, on the floating rate portfolio, will be faster than some of that on the deposit.
But also on the other hand, obviously, we are eliminating some of that, those higher cost broker CDs that are not long term, that are being either repriced lower or eliminated at a, you know, full benefit.
Steve Moss (Managing Director)
Okay, great. I appreciate all that color. And in terms of just kind of, you know, commercial originations, you know, remain quite strong here, just kind of curious, you know, where are you seeing, you know, the most demand there? And, you know, sounds like the pipeline's improved, so probably an uptick in is coming in terms of total originations for the fourth quarter.
Aurelio Alemán (President and CEO)
Well, you know, on the commercial side, you know, there is a combination of, well, construction deals that continues to move into the book. You know, some of them related to the CDBG projects. There is auto industry deals, transactions that are, you know, coming into the book also as new deals that are being happening. There's also C&I components on the commercial side. You know, we're very active on the street looking for new clients. There is some, you know, distribution industry, supermarkets. So it's a combination of, you know, not a, not necessarily a concentration in any asset class itself. And there's some government activity also that we expect during the quarter.
Florida actually continues to be, you know, the contributor to that commercial pipeline. Yeah. The consumer, we-
Steve Moss (Managing Director)
Great
Aurelio Alemán (President and CEO)
... we will say it's stable more than, than just, you know, a growing market right now. Yeah.
Steve Moss (Managing Director)
Right. Okay, great. Aurelio, and Orlando, and Ramón, really appreciate it. Thank you very much for the call.
Aurelio Alemán (President and CEO)
Thank you, Steve.
Operator (participant)
Thank you, Steve. We now have Frank Schiraldi with Piper Sandler. You may proceed.
Frank Schiraldi (Managing Director)
Good morning. Wondering if you guys could just remind us on, Orlando, I know you talked about the lag generally on the deposit side. Specifically on the public sector deposits, as far as, you know, I guess, a large portion of that is indexed. You know, is it still reasonable to think a one-quarter lag in terms of those public sector deposits coming down in cost?
Orlando Berges (EVP and CFO)
Yeah, you have on average, clearly, yes, you have some that will reprice faster, but others have longer lags because they didn't necessarily reprice up the same way. Some, depending on the type of account. So the average of one quarter lag, it's a good proxy, Frank.
Frank Schiraldi (Managing Director)
Okay. And then just in terms another question on loan growth. You mentioned the prepayments in the quarter and so, you know, closer to 4% this year. I guess with the stronger this continued strong pipeline, you know, mid-single digits is still a reasonable place to expect future loan growth in coming quarters?
Aurelio Alemán (President and CEO)
Yeah, I would say, I would say yes. You know, this obviously, we, that was our goal this year, and we, we've just been hampered by decided unexpected prepayments or. But, you know, when you look at the origination volumes, they are in line with what we targeted. In terms of, you know, well, you know, early to anticipate next year, but, you know, based on what we see and, you know, what the economic activity is bringing, you know, it's a good number for next year, too.
... you know, mid-single digit for now. Yeah.
Frank Schiraldi (Managing Director)
Okay. And then just lastly on Orlando, you mentioned expense expectations on the expenses over the next, I think, couple of quarters. So just want to make sure I heard that correctly, that 123 to 124, is that 4Q and beyond? Was that just 4Q? And then, you know, as we think about you guys, the targeted efficiency ratio of 52%, is it kind of reasonable to assume maybe that ticks up a little bit in the near term, just given the expense guide, and then you get back to that 52% over time? You know, is that reasonable when thinking about trends into 2025?
Orlando Berges (EVP and CFO)
The 123, 124, it's what we estimate based on the stage of some of these projects I mentioned between fourth quarter of 2024 and fourth quarter of 2025. That obviously excludes any kind of OREO. We're still seeing some positive numbers coming out of the OREO portfolio that would offset some of it. As you saw now, this quarter, we had $1.3 million in OREO gains. So that would be on the numbers, and that's part of the 52%. So that's what. That's why, you know, we feel that with the pick up through the year on earnings that from the repricing dynamics of the investment and loan portfolios.
And so, with those levels of expenses, the 52% sort of holds on a GAAP basis, including the OREO component. If you exclude OREO, it would be clearly a bit higher on the first couple of quarters, definitely.
Frank Schiraldi (Managing Director)
Okay. All right. Got you. Thank you.
Operator (participant)
Thank you, Frank. We have our final question on the line from Kelly Motta with KBW. You may proceed, Kelly.
Kelly Motta (Managing Director of Equity Research)
Hi, good morning. Thanks for the question. I was hoping maybe you could expand a bit more on capital return. I know you did the sub-debt repurchase this quarter. Historically, you've paid out about 100% of earnings. Wondering, thoughts on stepping back in here with the buyback, as well as, you know, paying out earnings given 16%+ CET1, if that's a reasonable expectation as we look out to next year?
Aurelio Alemán (President and CEO)
Well, you know, as I said before, Kelly, you know, we like to keep optionality, so we still have, you know, a capital plan that has, you know, plenty, you know, space approved for execution. We decided, you know, to focus on the last quarter on paying the TruPS. And, you know, this quarter, we'll see what happens. But definitely, you know, we keep the optionality. I think they keep in mind, you know, the 100% goal continues to be for now and through to 2025. That is our position today, but that obviously could change as we move into 2025. Yeah.
Kelly Motta (Managing Director of Equity Research)
Understood. That's really helpful, and then can you remind us what happened with the Virgin Islands? I know there was some deposit outflow, and that's where the commercial prepayment was. Just wondering if there's anything, you know, unique going on that drove kind of that variance on both sides of the balance sheet this quarter and how we should be thinking about that?
Orlando Berges (EVP and CFO)
Yeah, the Virgin Islands. It's two things that we did have a repayment on the government side. They used their funds, available funds, to repay some lines. So that came down on the deposits they had on the bank. But the other thing is that you have to, if you go back, typically the third quarter, there is a seasonality component in the Virgin Islands. There's slow season. If you go back to third quarter of last year, we had about a $60 million reduction in the quarter, from June to September, which compares with a $50 million or so reduction we had this quarter. The island has a big component is tourism, and it comes down this quarter, and you see deposit movements at a...
And that's. There was nothing, you know, unusual. It was not like one account or one sector. It was sort of across the different business and retail components. And again, similar to what we saw in last year.
Kelly Motta (Managing Director of Equity Research)
Got it. Got it. That's really helpful. Most of my questions have been asked and answered at this point. I guess on mortgage banking with you know, the move in rates, any expectation that that revenue line could pick up here as we look ahead?
Aurelio Alemán (President and CEO)
Yeah, I think, you know, the monthly applications reported in the market is really a good proxy. You know, the industry move with rates, and we move as well. You know, we have a, you know, a pretty good market share on the overall origination of the market and, you know, some shifting from conforming to non-conforming takes place based on, you know, where the rates are. And so, you know, I would consider, you know, the portfolio has stabilized, has achieved some growth this year, driven by, you know, more non-conforming paper based on rates, and that could change, and that would bring, you know, more noninterest income into the picture.
So if rates go lower in the non-conforming side, in the conforming side, you definitely will see that piece increase or then you see it in the portfolio, the rates go to the other side. So the portfolio is very healthy. We, you know, we are achieving, you know, the best asset quality that we ever had in that portfolio. So we, you know, we're very pleased with the performance of the business, and, you know, any opportunity that we see to grow it, you know, will probably be taken next year.
Kelly Motta (Managing Director of Equity Research)
Got it. And then, last question for me. Your commentary around NII and margin, one factor in it is the repricing of some of these loans down in response to the rate cuts. Can you remind us how much of the book floats?
Orlando Berges (EVP and CFO)
Yeah, we have 54% of the commercial book. The consumer book is a fixed-rate portfolio, other than credit card, that do have some repricing with prime. But the commercial side, it's 54%, it's floating, mostly on the C&I. The CRE is basically fixed. And that 54%, it's about 33%, it's SOFR-based. We have about 12% prime-based, and, you know, 9%, it's basically treasury-based. So we-
Kelly Motta (Managing Director of Equity Research)
Got it.
Orlando Berges (EVP and CFO)
You know, obviously, the prime-based loans have impact as we saw, you know, in the second half of September. Some of the other SOFR-based, we've had some movement already, as SOFR has come down through the quarter.
Kelly Motta (Managing Director of Equity Research)
Thank you.
Operator (participant)
Thank you, Kelly. I can confirm that has now concluded today's question and answer session, and I would like to hand it back to Ramón Rodríguez for some final remarks.
Ramón Rodríguez (Investor Relations Officer)
Thanks to everyone for participating in today's call. We will be attending Hovde Financial Services Conference in Miami on November 7th, and Piper Sandler's conference in Naples on November 14th. We look forward to seeing a number of you at these events, and we greatly appreciate your continued support. Have a great day.
Operator (participant)
Thank you all for joining today's conference call with First BanCorp. I can confirm today's call has now concluded. Please enjoy the rest of your day, and you may now disconnect from the call.