Q4 2024 First BanCorp Earnings Call
The World War II
Aurelio Aleman,
Becky: Hello everyone and thank you for joining the first Bancorp fourth quarter 2024 and full year financial results. My name is Becky and I'll be your operator today. During the presentation you can register a question by pressing star followed by one on your telephone keypad. If you change your mind please press star followed by two. I will now hand over to your host Ramon Rodriguez, Investor Relations Officer to begin. Please go ahead.
Ramon Rodriguez: 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.
Ramon Rodriguez: 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 filing. The company assumes no obligation to update any forward-looking statements made during the call.
Ramon Rodriguez: If anyone does not already have a copy of the webcast presentation or press release, you can access them at our website at fppinvestor.com. At this time, I'd like to turn the call over to our CEO, Aurelio Aleman.
Aurelio Aleman: Thank you, Ramon. Good morning to everyone and thanks for joining our earnings call today.
Aurelio Aleman: I will begin by briefly discussing the business performance for the fourth quarter, then we'll move on to provide some high-level highlights of how we performed during the full year.
Aurelio Aleman: We earned $76 million in net income and grew pre-tax pre-provision income by 5% to $117 million.
Aurelio Aleman: primarily driven by negative margin income expansion and our discipline expense management.
process.
Aurelio Aleman: Return Average Asset was again strong at 1.56% and the organization continued to operate at an efficiency ratio close to 52% which is in line with our guidance.
Aurelio Aleman: Turning to the balance sheet, the quarter was strong. Total loans grew by $310 million, 9.7% in the quarter, annualized, driven by growth, actually, across all business segments, consumer, commercial, and mortgage, and between Puerto Rico and the Florida region, primarily.
particularly within the commercial and
Aurelio Aleman: However, we saw, we were expecting some portfolio repayments in the quarter, which came a little bit lower. We anticipate that some of that will come in, you know, between the first and second quarter of this year.
in the range of probably 50 to 100 million.
Aurelio Aleman: In terms of deposit, core deposit trends were also very encouraging with total deposits other than broker and government up 2% sequentially from prior quarter and 4% when we include, you know, government deposit.
Aurelio Aleman: As we have seen in prior quarters, we did some, we see some seasonality in deposit inflow during the quarter that, you know, they are temporary in nature or they have to do with the variability of the government sector funding of reconstruction activity.
Aurelio Aleman: Credit performance was relatively stable during the quarter with non-performing assets hitting another record low of 61 basis points of total assets.
Aurelio Aleman: On the capital front and liquidity, our liquidity and capital position remains very strong. We sustain our commitment to deliver over 100% of earnings.
Aurelio Aleman: in the form of capital actions by redeeming $50 million of our outstanding junior debentures and paying $26.3 million in common dividends.
Aurelio Aleman: Even when accounting for these actions, our regulatory capital ratios increased during the quarter and remain significantly above what capitalized.
Aurelio Aleman: We still have $200 million left in our capital plan authorization, which we expect to continue deploying through 2025 in a manner that best suits the long-term interest of the franchise.
Aurelio Aleman: Please let's turn to slide 5 to provide some highlights of the year.
Aurelio Aleman: The Solid Performance Report got a year of record results for the franchise in the back of a positive economic backdrop of our operating markets.
Aurelio Aleman: We raised a record revenue, 6% increase in earnings per share and reached a multi-year low in non-performing assets.
The low portfolio expanded by 4.7%.
Aurelio Aleman: of $569 million, we added $267 million in CORE, customer deposit, and distributed 100% of earnings to shareholders. Long growth was actually quite in line with our guidance of mid-single-digit growth.
Aurelio Aleman: Consistent with our strategy, our well-positioned balance sheet allows us to capitalize on bond book and non-repricing opportunities under the current rate environment while proactively managing funding costs that actually will continue through 2025.
Aurelio Aleman: We're considering stable deposits going forward. Our asset mix will continue to skew towards higher yielding assets, coupled with gradually declining funding costs, should drive additional net interest income expansion in 2025.
Aurelio Aleman: Over the course of 2024, our franchise made great progress advancing technology initiatives to improve our interaction with customers through both the convenience of digital channels and service-focused relationships with officers.
Aurelio Aleman: We are achieving the target we set to make sure we're starting in success and we're seeing the benefit of the investment we made in technology to accelerate our growth and improve how we serve our communities and customers.
Aurelio Aleman: As we look ahead, the operating environment for 2025, actually the operating environment seems conductive of another year of positive performance and organic capital generation.
Aurelio Aleman: If we look at the key economic metrics in the environment, during the fourth quarter, trains on employment continue to improve. Tourism metrics and passenger activity are at our main airport reach record levels again.
Aurelio Aleman: and Disaster Relief Fund Disbursement Rate Registered Another Year of Sequential Increments in 2024. We do expect this trend to continue as per the Puerto Rico Planning Board is forecasting another year of economic growth in 2025.
Aurelio Aleman: So, given this backdrop for 2025, we're sustaining our meeting of the long-term guidance.
We're sustaining our 100% net payout ratio of our capital.
Aurelio Aleman: That includes redeeming the remaining $61 million towards units related to the ventures and executing reasonable share repurchase opportunities and definitely maintaining a sustainable dividend payout policy.
Aurelio Aleman: In line with this guidance, we are very pleased to announce earlier this week that our board approved 13% increase in our quarterly cost of dividend that was raised to $0.18 per share.
Thank you.
Aurelio Aleman: Again, we will continue to monitor General Macro, how things develop, political changes, as we execute our strategy, as we execute our capital deployment plan.
Aurelio Aleman: and to close I have to say that I'm really really proud of what our teams have accomplished so far. We are very positive and look forward to a very positive 2025 with optimism and excitement of our lives ahead of us.
Orlando: Now, I will turn the call over to Orlando to go over some more details and we will be back for questions. Thanks to all.
Good morning, everyone.
Speaker Change: Aurelio mentioned we recorded very strong results during the quarter, earning $75.7 million in net income or $0.46 a share, which compares with $0.45 a share in the third quarter. We saw the results for the quarter saw improvements in net interest income, which were partially offset by the higher provision for credit losses.
Speaker Change: The provision for the fourth quarter was $5.7 million higher than last quarter, but this was mostly related to a $5.5 million release we had in the allowance for residential mortgage loans during the third quarter based on the consistent positive outlook on microeconomic variables.
Speaker Change: but also this quarter we provided for the higher loan portfolios that we achieved at the end of the quarter. In general, the economic outlook remained fairly consistent going forward from what we had in the third quarter in terms of estimating the allowance.
and Ramon Rodriguez, Aurelio Aleman.
Speaker Change: The income tax expense for the quarter was $20.3 million, which is $2.3 million lower than last quarter. At the end, we ended up with a higher proportion of exempt income for the year, which resulted in a slightly lower effective tax rate.
Speaker Change: effective tax rate was just under 24% for the year 24 and we're expecting that tax rate for 25 will be in that same range from 24 to 24 and a half percent.
Thank you.
Speaker Change: For the full year 24, net income was $299 million, very similar to the $303 million we achieved in 23. But earnings per share were $1.81.
Speaker Change: or for this year, which is 10 cents higher than we had in 2023, which is the benefit of the share count reduction based on the buybacks we have done over the last few years.
Speaker Change: Return on average assets for the year was $158, and return on equity was 19.1% on a gap basis.
Speaker Change: If we were to eliminate the other comprehensive loss impact from the capital on an on-gap basis, the adjusted return equity would be 13.6%.
Thank you. Bye.
Speaker Change: You might recall from last quarter's earnings call, we had mentioned that we were expecting that the net interest margin for the fourth quarter would be similar to the third quarter. However, we were able to achieve an 8 basis points improvement in margin from 425 to 433 in this fourth quarter.
Speaker Change: At that time, we were expecting loan repricing impact would offset some other improvements.
Speaker Change: Even though we did see that repricing impact on the floating rate commercial loans.
Speaker Change: The commercial portfolio grew on average $192 million, more than compensated for this pricing reduction, while we achieved $37 million in growth in the residential and consumer portfolios.
Speaker Change: Also, growth in deposits for the quarter allowed us to reinvest about $220 million of maturing investment securities.
at a rate of 540.
Speaker Change: We look at cash flows during the quarter, cash flows for the investment portfolio were $470 million.
Speaker Change: That includes 367 million in securities that mature with an average deal of 65 basis points. So the pickup in margin in yield was quite significant as compared to those 65 basis points.
Speaker Change: Deposits on interest-earning retail and commercial transaction accounts grew $348 million on average for the quarter. These deposits have an average cost of $1.52%.
Speaker Change: On the other hand, higher cost time deposits and broker CDs decreased by $130 million.
Speaker Change: Also, during the quarter, junior subordinate debentures with a cost of $78 million decreased by, with a cost of 7.78 percent, I'm sorry, decreased $50 million on average.
Speaker Change: And we did redeem an additional $50 million at the end of the third, of the fourth quarter. The impact would be seen, you know, now in 2025.
Speaker Change: The reduction in borrowings and broker CDs resulted in an interest expense reduction of $2.8 million for the fourth quarter.
Speaker Change: As we look ahead into 2025, we still see opportunities for both net interest income and margin expansion as we redeploy.
Speaker Change: What we estimate to be somewhere between 1.5 to 1.6 billion of investment portfolio cash flows.
Speaker Change: that are currently yielding about 1.25% of our other either loans or higher yield insecurities or paying down some of the higher cost borrowings.
Speaker Change: If we were to assume normal flow of deposits, we expect that margin could improve around 20 basis points by the end of 2025.
Thank you.
Speaker Change: In terms of other income, it was fairly on line, it was down a bit mostly from a decrease in insurance income due to lower production.
Speaker Change: On the expense side, expenses were $124.5 million, $1.6 million increase from the third quarter. Aurelio's gains this quarter were $1 million, or $300,000 less than last quarter.
Speaker Change: Excluding OREO, expenses for the quarter were $125.6 million, which is $1.3 million higher than last quarter, and higher than the top-range guidance we had provided.
Speaker Change: The increase was in part related to business promotion initiatives that took place at the end of the year and were a bit higher than we had originally anticipated.
Speaker Change: However, we did register operating leverage as an increase in direct interest income was enough to offset increases in expenses, resulting in a lower efficiency ratio of 51.6% for the quarter.
Speaker Change: Based on the current stage of several ongoing technology projects, branch network expansions planned for 2025, we estimate that our expense base for the next couple of quarters will be in the range of $125 to $126 million, excluding any Aurelio gains.
Speaker Change: We continue to estimate that our efficiency ratio will be around 52% considering the changes in expenses and income components.
Thank you. Thank you.
Speaker Change: In terms of asset quality, NPAs decreased $800,000. That now represents 61 basis points of assets.
Speaker Change: Also, the reduction was due to a repayment of $1.8 million on a cruel commercial loan.
Speaker Change: Inflows for the quarter were $1.6 million lower than last quarter, mostly consumer, even though we have seen some early delinquency increases.
Speaker Change: Obviously, offset by a decrease of $5.4 million in commercial loans.
Speaker Change: We continue to proactively manage this great cycle that I'm on the consumer side and and the vintages that had impacts.
Speaker Change: And we're estimating somewhere in the middle part of the year, towards the end of the year, to achieve the stability we had anticipated on the consumer.
Speaker Change: The allowance for credit losses decreased $3.1 million to $244 million during the quarter, mostly from a $4 million reduction in the allowance for commercial loans.
Speaker Change: based on the improvements we have seen on both the financial condition of borrowers and obviously the macroeconomic forecast, particularly on the consumer real estate indexes, which have continued to show improvement.
Speaker Change: The allowance for the consumer portfolios did increase $1 million due to the recent loss trends.
Speaker Change: Overall, the allowance came down to 1.91% of loan from 1.98% as we continue to see these good credit trends in the commercial and residential mortgage portfolio.
Speaker Change: However, the allowance on consumer loan has gone up to 3.85% of loans based on lost rents that we have had in the portfolio.
Speaker Change: Net charge-off for the quarter were 24.6 million or 78 basis points of average loans, pretty much in line with the prior quarter.
Speaker Change: Consumer charge of increase 1.3 million but we had a 1.2 million decrease in commercial charges.
Speaker Change: on the capital front regulatory ratios increase during the quarter and we continue to operate significantly above the regulatory well capitalized levels
Speaker Change: We deployed, as Aurelio mentioned, 100% of our quarterly earnings for the redemption of $50 million in the Junior Subordinated Ventures and $26 million payment of common dividends, consistent with the guidance we have provided.
Speaker Change: The tangible value per share did decrease to $9.91 and TCE decreased to $8.4, which was mostly due to $182 million decrease in the fair value of available for sale investment portfolio.
Speaker Change: The remaining, just another comprehensive loss that we have on the books still represent $3.41 in tangible book value per share and over 258 basis points in tangible common equity ratio.
Speaker Change: You know, we, as Aurelio mentioned, we will continue to deploy ERC6 capital in a thoughtful manner, always looking for the long-term best interest of our franchise and our shareholders.
Speaker Change: This concludes our remarks. Operator, please open the call for questions.
Speaker Change: This is a test. Please stand by. This is a test.
Speaker Change: Thank you. As a reminder to ask a question, please press star followed by 1 on your telephone keypad now. If you change your mind, please press star followed by 2. When preparing to ask your question, please ensure your device is unmuted locally.
Speaker Change: Our first question is from Frank Schiraldi from Piper Sandler. Frank your line is not open, please go ahead.
Thanks. Good morning. Good morning, Greg.
I don't know, 52% efficiency ratio for 2025.
Speaker Change: You know, I guess that's just sustaining where you are, right? I mean, I believe that's non-FTE NII is in that calculation. But then, can you just remind us, are Oreo gains...
Speaker Change: Is there some level of that assumed in 2025 that's also in that calc? Or could Oreo games kind of move that even lower?
Speaker Change: No, it's included in that, we do, you know, the numbers have been coming down as we have mentioned. We do expect to still achieve probably Aurelio gains on the first half of the year.
Speaker Change: But that's significantly going to go down by the second half of 2025.
Speaker Change: So it's mostly the other expense components and obviously the income side as you mentioned.
Okay, and...
and it's pretty consistent there around that 52% level.
Speaker Change: How focused are you, I guess, in 2025 on that? Do you see opportunities to ramp up or delay investments depending upon the revenue outlook to kind of really hone in on that 52%?
Speaker Change: So those components, you know, we bring some revenue. We're not really stopping on investments. You know, we have included, we are including, you know, significant investment in technology to continue, which is bringing other benefits, which some of them would be more long-term, but they are.
Speaker Change: and we also have some branch openings that are part of that number that will start you know happening during the you know we're moving branches into areas that we're not we don't have a presence where there is a deposit opportunity
Speaker Change: and a commercial bank opportunity on the small and medium market side. So, you know, we're not really halting on those investments.
[inaudible]
Speaker Change: Okay and then just a point of clarification I just Orlando I heard you mention the NIM I think you said NIM could be up 20 basis points year over year is that the number you gave?
Speaker Change: 20 basis points is, you know, based on the quarterly pickup we expect, it would be like the margin at the end of the fourth quarter of the year as compared to the fourth quarter of 2024.
Speaker Change: That's what we're talking, it's like with the reinvestment of the portfolio and obviously considering expected deposit flows and expected new loan productions.
Speaker Change: We believe margin will continue to pick up based on that, as I mentioned, the cash flows.
On average, Gila 125
Speaker Change: It's not equally distributed. It's the ones that mature in the first half of the year are like 150, and then the other half it's smaller. It's a lower amount of yield, but it's still, you're gonna get a good takeoff on the...
Speaker Change: Reinvestment or the or the the amounts that could be channeled to to loan portfolios
Speaker Change: You know, obviously, we're still, you know, dealing with what's the expectation on rates. We had a 100 basis points assumption originally like three months ago that would happen in 2025.
but now we feel it's probably going to be him.
Speaker Change: 25 or 50 basis points so we will see that part of it out but still you know the assuming these rates and the pickup on on those components we will have a good push on the margin
Okay, and then just lastly on the...
Speaker Change: I think there's about $60 million, I think you said, in redemption left, so is it a pretty fair expectation or assessment that
Speaker Change: stock buybacks is probably another quarter of to go before you get back into the market there and and and
Speaker Change: and repurchases will be sort of the return to capital story more for the last three quarters of the year.
Okay.
All right. Great.
Speaker Change: Thank you. Our next question is from Tima Brasilia from Wells Fargo. Your line is now open, please go ahead.
Hi, good morning.
Good morning, Debra. Looking at the...
Speaker Change: Looking at the LinkedQuarter deposit growth, particularly on the public fund side,
Speaker Change: I guess, what was the dynamic this quarter that drove balances higher in a period that maybe typically sees some seasonal outflows? Was that market share gain? Is that a little bit transitory in nature? Maybe just give us a dynamic to some of the deposit growth scenes, for example.
Thank you.
Speaker Change: on the infrastructure side, there's always some chunkiness of funds that come in and out.
So that was not, the growth was not necessarily...
Speaker Change: The world is really the net of what came in and out, so it was a...
a significant quarter of projects and funds moving.
from FEMA or CDBG.
Speaker Change: but yes there's always some seasonality in the later part of the year.
Thank you.
Okay, um, are the long roads
Speaker Change: You know, the U.S. mainland loan growth was strong in 4Q, looked like C&I.
Speaker Change: on the Virgin Islands is also pretty strong in fourth view. Can you just maybe give us a little bit of color of where you're seeing the growth on the mainland? And is that primarily where you were expecting maybe some elevated payoff activity that didn't come to bear in the fourth quarter?
and Ramon Rodriguez, Aurelio Aleman.
Speaker Change: Yeah, I think when you look at the core strategy of Florida, again, it's commercial in all the segments, small, middle, and large.
Speaker Change: with the balance sheet of the larger corporation, which is part of the region, is part of the larger bank.
Speaker Change: So, you know, if you look through the year, there was also, you know, good quarters and active quarters, obviously.
Speaker Change: It happened last year too, that we have supported up some of the cases that closed, that were pending to close, finally concluding the year. And then in Puerto Rico, there's some large-scale construction noise that happened also in the quarter. Some of them moved ahead.
or completed.
So, again, it's very difficult to predict the pace.
Speaker Change: That's why we focus on the mixing of DG when we add and subtract.
Speaker Change: So we do expect more growth in the commercial this year.
Speaker Change: We expect some growth in the mortgage we didn't have last, you know, in the plans before and then continue to have growth in the consumer even though we acknowledge it's a lower rate, growth rate, than we have achieved over the last five years.
Speaker Change: of each of the business and portfolios, and then, you know, we have both.
you know, construction loans that we'll continue to fund.
until completion.
Speaker Change: which was probably one of the highlights of 2024, the Bolivian construction activity that was booked, that is there and will continue to. It doesn't need to close along for this person to continue to move on. Go ahead.
Speaker Change: So it's a mix that, you know, predicting quarter by quarter, you know, it's almost impossible for this commercial activity, yeah.
Thank you.
Aurelio Aleman,
Speaker Change: Six straight quarters, it looks like. Are we nearing a plateau there for allowance, or do you foresee continued mix shift and continued ability to maybe continue releasing some reserves here throughout the course of the year?
Thank you. Thank you.
Aurelio Aleman, Ramon Rodriguez
Speaker Change: We have to divide it by portfolio. We feel that the residential mortgage portfolio has continued to behave extremely well.
were ended up resulting in some releases on Price Index.
has been very strong and home sale prices at a
Speaker Change: that we see, even on the Oreos, we tell are definitely strong.
Speaker Change: So that helps. I think that probably there's a little bit in there, not necessarily a lot, based on the size of the portfolio. The portfolio has been growing a little bit as compared to what we had before.
Speaker Change: that we were coming down. On the commercial side, probably we're there. I mean, it's been quite good for quite a long time.
Speaker Change: On the consumer side, we still, as I mentioned, feel, you know, there is some volatility, you know, the allowance on the consumer side.
Speaker Change: has gone up like 20 basis points from the end of 23 to the end of 24 or something like that and obviously the growth has mostly been on the auto portfolios that entail lower losses.
Speaker Change: But there is still going to be a little bit of noise, I would say, on the allowance. So in general, we would be sort of at this level is my expectation for the next couple of quarters.
Aurelio Aleman, Ramon Rodriguez
Great. Thank you.
Speaker Change: Thank you. Our next question is from Kelly Mota from KBW. Your line is now open, please go ahead.
Speaker Change: on expenses. I appreciate the, I think you said 125 to.
Aurelio Aleman, Ramon Rodriguez
Looking at fourth quarter, can you remind us
Speaker Change: It looks like you've had a larger kickup in business promotion expenses in the fourth quarter these past two years. Could you write up the seasonality of that and kind of...
if that had any relation to...
Speaker Change: you know, the meaningful increase in deposits we saw this quarter.
[inaudible]
Uh, babe...
Speaker Change: The end of the year typically has a combination of things. It's events we do for customers as part of the year-end kind of Christmas celebrations and recognition of us recognizing our customers' loyalty.
Speaker Change: So that's one thing. There are trends on campaigns that we would like to start early in 2025, that we start towards the end of the year to start moving some things.
Speaker Change: Those are mostly on the lending side, not so much on the deposit side.
Speaker Change: Obviously, you know, things on the digital front on the deposits are big, and we try to push for that, and participation in activities that happen at the end of the year.
Speaker Change: So it's a combination, is it directly completely related to what the deposit, the deposit growth, I won't say that. But clearly our marketing people are going to say yes, that it has to do with all the different efforts they put out there.
Thank you. Bye-bye.
You know, unique.
The
Flows that's what's happening with government deposits, but
Speaker Change: I'm hoping just on the core Puerto Rico deposit base. I was hoping you could provide an update on
Aurelio Aleman, Ramon Rodriguez
You know
pretty low when compared to mainland banks and rationally priced.
Thank you.
Speaker Change: To be honest, you know, if rates don't move lower than they are today, we don't see a lot of opportunities in what is in the core. I think competition is reasonable.
Speaker Change: But obviously, the movement in rates is not supporting at this stage that any other competitor, you know, behaving like in that scenario of lowering rates.
and the potential in a unilateral mode.
Speaker Change: On the other hand, there is, you know, a lot of funding that is
Speaker Change: that is maturing and it's already being, you know, either eliminated or out of the cost or it's being renewed at a lower rate.
Speaker Change: Yeah, there are opportunities on the broker CDs, whatever we renew. If we renew anything, rates are lower than what they're coming due. Same thing, we see some opportunities in some of the advances we take from the FHLB.
Speaker Change: Got it. Maybe last question for me is just on balance sheet size. I think you you already hit on this pretty well but just as a
Point of clarification, earning assets for the quarter were about
Speaker Change: Just over 19 billion. It sounds like based on the cadence of Investment portfolio maturities like 1.5 to 1.6 coupled with
Ramon Rodriguez, Aurelio Aleman, Ramon Rodriguez
Ramon Rodriguez, Aurelio Aleman, Ramon Rodriguez
The, yeah, the, the...
Speaker Change: There is a level of investment that we need to keep on the books for collateral for public funds and some of the other things that we do.
Speaker Change: So, we have taken out that portfolio significantly on all the excess that we had, but it's now reaching a level that we are probably going to be, you know, either going to loans or slightly or going to securities.
Speaker Change: So that would keep the balance sheet sort of where we are, you know, we grow the investment, the loan portfolio as expected, it's going to push that a little bit up, obviously the profits have a lot to do with it.
Speaker Change: So, you know, the assumption that it's sort of flat to...
Speaker Change: I would say flat to slightly higher other than some of the seasonality Aurelio mentioned on the deposit. So that range of 18A to 19, 3 or 4, it's probably going to be a reasonable range of the balance sheet size.
Speaker Change: Awesome, thank you so much for all the color. I'll step back.
Thank you, Kelly.
Speaker Change: Thank you. Our next question is from Steve Moss from Raymond James. Your line is now open, please go ahead.
Good morning.
or the floor is being... Maybe just,
Speaker Change: Morning. Just on loan pricing here, I apologize if I missed it, but just kind of curious, you know, given the rate volatility we've seen here over the last couple of months, you know, what you guys are seeing for loans these days?
Lone Brighton you mean?
Yeah.
Speaker Change: Well, we, I mean, it hasn't changed much in terms of what you would call the spread, no? Obviously, pricing has come down a bit in, because, you know, we, most of the pricing is either LIBOR based or SOFR based.
Speaker Change: So far it's down, and Prime is down. So that means that pricing on some of the portfolios have been down. It doesn't necessarily mean that the spread is down from what it used to be.
I'm talking commercial at this point.
Speaker Change: on the consumer side. It has changed a bit but you know the credit cards we do we do adjust based on prime but some of the other portfolios have remained fairly consistent.
Speaker Change: So if you think about deals, the loan deals are down like 20 basis points or 10 basis points compared to last quarter. Actually, 12. We look at the loan portfolio deal on page 8 of the presentation.
Speaker Change: that reprised with Prime and so forth mostly, a little bit with Treasury.
Speaker Change: But other than that, I would say it's a similar kind of writing strategy.
[inaudible]
Speaker Change: Okay, great, appreciate that. And then in terms of just the billion five in cash flows, it sounds like it's fairly equally distributed over the four quarters, is that a fair assumption?
Aurelio Aleman, Ramon Rodriguez
Speaker Change: No, let me give you some color of that. It's not equally.
Hold on one second.
Thank you for watching!
and the other one.
Thank you.
Speaker Change: So, it's going to be about, first quarter it's maybe somewhere between 325 and 375. It's a range we estimate. Second quarter it's going to be around 240 to 260. Fourth quarter, third quarter, I'm sorry, it's somewhere around 400 and the last quarter it's going to be about 525 to 550.
Okay.
Great.
Speaker Change: Appreciate all that. Most of my questions, all my questions have been answered at this point, so thank you very much.
Thank you Steve.
Speaker Change: Thanks to everyone for participating in today's call. We will be attending BOA's conference in Miami on February 11, KBW's conference in Boca on February 13, and Raymond James' conference in Orlando on March 4. We look forward to seeing a number of you at these events, and we greatly appreciate your continued support. Have a great day. Thank you. Thank you all.
Speaker Change: This concludes today's call. Thank you for joining. You may now disconnect your lines.
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Aurelio Aleman, Ramon Rodriguez
Aurelio Aleman, Ramon Rodriguez
Aurelio Aleman, Ramon Rodriguez