Q2 2025 OFG Bancorp Earnings Call
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Margot: Good morning, thank you for joining of G's Bank Corp conference. Call, my name is Margot and I'll be your operator. Today, our speakers are Jose Rafael Fernandez, chief executive officer and chairman of the board of directors. Maria is Mindy Chief Financial Officer and Cesar Ortiz. Chief risk officer a presentation accompanies today's remarks. It can be found on the homepage of the ofg website. Under the second quarter of 2025 section, this call May feature certain forward-looking statements about management schools, plans and expectations.
These statements are subject to risks and uncertainties outlined in the risk. Factors section of the ofgs FCC filings.
Margot: Actual results May differ materially from those currently anticipated. We disclaim any obligation to update information, disclosed in this call, as a result of a developments that occur afterwards.
Speaker Change: All lines have been placed on mute to prevent any background noise. After the speakers were marked, there will be a question and answer session. Instructions will be, given at that time, I would now like to turn the call over to Mr. Fernandez, please go ahead.
Speaker Change: Good morning and thank you for joining us. We are pleased to report our second quarter results.
Speaker Change: To start. Let's go to page 3 of the presentation.
Speaker Change: It was another strong quarter ending with regular assets of more than 12 billion dollars and record loans of more than 8 billion dollars.
Speaker Change: We had excellent Financial results, generating earnings per share diluted 1 dollar and 15 cents for a 6.5% increase. Year-over-year on a 1.5%, increase in total core Revenue with a high return on average assets and equity.
Operating execution was highlighted by strong long origination and core deposit flows.
Speaker Change: Credit reflected stable economy in Puerto Rico and high levels of liquidity, held by individuals and businesses.
We announced a new $100 million buyback. Stock buyback. Authorization.
Speaker Change: And bought back more shares, supported by our strong Capital, generation, and balance sheet.
Speaker Change: Please turn to page 4.
Speaker Change: We continue to see strong momentum with our Omni Channel digital platform. Our strategic investments in technology and Innovation through our digital first strategy is paying off.
Speaker Change: We're growing accounts and building deeper customer relationships during the second quarter nearly all of our routine teller. Retail customer transactions and deposits as well as 70% of retail loan payments were made through our details and sales service channels.
This was been driven by continued year-over-year growth in digital enrollment data loan payments, virtual teller utilization and 4% new net. Customer growth.
Speaker Change: In the second quarter, we introduced 2 new products and services, we launched an oriental Marketplace. An online feature that gives our customers exclusive discounts on travel restaurants and Retail products.
Now, here's Marita to go over the financials in more detail.
The first quarter unless otherwise noted.
Marita: Core revenues total. 1882 million. Looking at the key components. Total interest income was 1 194 million and increase of 5 million.
Marita: This mainly reflects higher balance average, balances of loans and cash and 1.5 million from 1 additional business day.
Marita: So, that interest expense was 42 million, an increase of 2 million.
Marita: This mainly reflects higher average, balances of Court, deposits and higher, average, balances of borrowing, some brokerage deposits.
And 0.4 million from 1 additional business day.
Marita: To that Banking and Financial Service revenues were 30 million and increase of 1 million. This mainly reflects increases in Mortgage, Banking activities, and wealth management,
Marita: Looking at not interest expenses, the total 94.8 million up 1.4 million.
Marita: This is in line with our continued Outlook of 95 to 96 million in quarterly non-interest expenses in 20125.
Marita: Compared to the first quarter, the second quarter, reflected, 1.4 million less in seasonal, payroll taxes. And foreclosed real estate costs,
Marita: Keep in mind in the first quarter included, a 3.1 million incentive payment from a business partner.
Marita: In contact income tax expense was 14.1 million with a tax rate of 21.37%.
Marita: That reflects an anticipated rate of 24.90% for the year.
Marita: And the benefits in the second quarter of 1.7 million in discrete items.
Marita: Looking at some other metrics time, they will book value was 27.67 per share during the quarter. We bought back 186,000 shares.
Efficiency ratio was 52%.
Marita: Return on average asset was 1.73% and returned on average. 10 will. Come on Equity was 17%.
Marita: Now, please turn to page 6 to review our operational highlights.
Marita: Total assets were 12.2 billion of 9% from a year ago and 4% from the first quarter.
Marita: Average loan balances were 8 billion dollars up close to 2% from the first quarter.
Marita: End of periods. Loans held for investment total, 8.2 billion dollars.
Marita: Up to 7% from a year ago and up 300 28 million from the last quarter.
Marita: The sequential increase mainly reflects our strategy to grow commercial lending in the US and Puerto Rico.
Marita: Long yield was 7.91% down 8 basis points.
Marita: New loan, origination of 784 million was up 38% from the from the first quarter and 33% from a year ago.
Marita: Second quarter, originations reflect increases in all lending channels in both Puerto Rico and the US.
Marita: The commercial pipeline continues to look strong.
Marita: Average core deposit were 9.7 billion up close to 1%.
Marita: End of period. Balances of 9.9 billion. Increased 10039 million or 1.4%, quarter over quarter and 291 million or 3% year-over-year.
Marita: Growth reflects increased commercial and government, deposits and reduced. Retail balances in addition it reflects increased time and saving deposits and reduce demand deposits.
Marita: Court deposit cost was even with the first quarter at 1.42%.
Marita: Including public funds cost of deposit was 0.99% compared to 1% last quarter.
Marita: Was 4.11 basis points.
Marita: End of period balances were 732 million compared to 421 million.
The second quarter reflected 200 million in a new 2 year, Federal ban Advance at 4.13%.
Marita: And 82.5 million in additional brokerage deposits.
Marita: We use this phone to increase liquidity. In addition to higher deposit as part of our strategy to grow commercial loans.
Cash at 852 million, was up 20% reflected some of the new wholesale funding pending continued, learn growth.
Marita: Investments, total 2.8 billion. She mainly relatively unchanged this reflected prepayments, mostly upset by purchases of 50 million dollars of mortgage back Securities dealing 5.555% and Jeanne made securitization of our own mortgage lending.
Marita: Net interest margin was 5.31% compared to 5.42%.
Excluding the new federal home loan advance name will have been around the higher end of our 5.30% to 5.40% range.
Marita: All this being equal as long growth continues, we should see name expand from the second quarter levels.
Marita: Please turn to page 7 to review our credit quality and capital strength.
Marita: Credit quality continues to be stable nature of total 30 million down 7.6 million from the first quarter.
Marita: Net charge of rate was 64% down 41 basis point sequentially year-over-year. The net charge of rate was down 15 basis points
Marita: provision for credit losses was 21.7 Million.
Marita: Down 4 million. The second quarter included, 70.2 million for increase. Volume 3.76% for 4.
Marita: and 7 million due to the alignment of model as option and reach weighting factors mail in Puerto Rico,
Marita: Looking at other credit metrics, the early and total delinquency rates were 2.46% and 3.59% respectively.
Marita: And the non-performing loan rate was 1.19%.
Marita: Looking at other Capital Medics, our CD ratio was 13.99% a stockholders Equity total 1.3 billion of 39 million dollars.
Marita: And tangible common equity, ratio decreased 10 basis point to 10.20%.
Marita: To summarize the quarter, net interest income increase due to Long growth in particular, our strategy to grow commercial loans.
Marita: We saw continued deposit growth driven by commercial and government balances.
Marita: Net interest margin was toward the lower end of our expected range reflecting, our decision to put more liquidity in place to fund, future, strategic growth in commercial loans.
Marita: Credit quality continue to reflect the solid economic environment.
In Puerto Rico, for both consumers and businesses.
Marita: Non-interest expense were in line with our expected range and should continue to do so.
Marita: With a strong City, 1 region and earnings power. We put a new 100 million shared by back in place to return Capital to stockholders and we continue to acquire shares in the open market. Now here's Jose.
Jose: Thank you Marissa. Please turn to page 8.
Jose: The Puerto Rico, economy continues to show stable growth, despite concerns about global macroeconomic, and geopolitical political events. The Situation's Remains the Same wages and employment are at a historically high levels. The business environment is constructively positive, the economy continues to grow and the Outlook is positive turning to ofg our continuous Improvement culture. And our digital first strategy is proving to be highly effective. New services are proving are providing customers with better insights to better manage their finances. New tools are giving us the ability.
Jose: We continue to execute our plan strategically and thoughtfully growing market share by creating value and helping helping our customers achieve progress. All this supported by a very strong Capital position. As always, we could not have achieved these results without the hard work of all our team members.
We are very thankful to them.
Jose: And optimistic for the future. With this, we end the formal presentation for operator. Let's start the Q&A.
Speaker Change: Thank you. If you have a question at this time, please press star 1 on your telephone keypad, if you wish to remove yourself from the queue press star 2, we'll take our first question from Tamar Brasilia, please go ahead.
Tamar Brasilia: Hi, good morning.
Tamar Brasilia: Good morning. Good morning.
Uh, maybe starting off on the margin. Um, that's good. Commentary that you think margin starts to expand off of these levels. I'm just wondering maybe from a deposit standpoint. Those costs seem to tick higher a little bit in the second quarter. I I guess as you look out into the back, end of the year is it just the the better loan growth trajectory that drives margin higher? Um I guess can you just talk to the interplay between the the expected loan growth and maybe what the deposit competition is doing on the island?
Speaker Change: Yep. So thank you for your question Timur. Uh, I'll take I'll take a stab at it first and then I'll let Marita give you additional color. So uh, when you, we're back on the point on on
Speaker Change: Deposit cost, ticking higher. Remember that that the uh government deposits are are tied to uh variable rate treasury bill. Uh,
Speaker Change: Kind of formula and uh during the quarter, you have that those fluctuations kind of trend up and down. So this quarter, we have a little bit of that noise there. That's why you're seeing a little bit of that.
Optic on the cost of deposits. But uh, let me, let me just also step back also and give you a little bit of our thoughts on on deposits. And, uh, and how we see customer deposits moving forward because what you have seen throughout the last uh, year and a half. If is that our net new account growth in retail, customers has continued to grow particularly in checking. During as I said the past year and a half
Speaker Change: Uh, so that's 1 of the key drivers for us. Also, you have to
Speaker Change: look at the, um,
changes that we have.
Speaker Change: Implemented within our value proposition. And our differentiation for custom for retail customers. We have added a couple, new targeted, products, deposit, products, and services. We have expanded as, you know, the self-service capabilities and also the detail capabilities.
Speaker Change: We have provided additional insights for our customers to help them manage their finances. So, we are adding additional uh, tools for them to, um, help them Achieve Financial Health,
Speaker Change: And and we are starting to see we're in the early Innings but we're starting to see some of the loan. Only clients starting to add relationships and deepening their relationship with us by uh uh opening checking and savings accounts with us. So,
And and and I'm speaking particularly from Auto and mortgage and as well as small and mid-size, uh, commercial clients owners and employees. So, so that's, that's a little bit of a context on on why we are seeing good momentum across the board on the deposits, particularly on the, on the retail side. Uh, so so when you put all this together, the overall retail customer deposit will continue to grow in the second half. We expect that to continue.
Speaker Change: Continue uh, and uh, and also into 2026.
Speaker Change: And then then I I like to add, also the commercial side. It's a little trickier, right? Because as I said, we have government deposits that are variable rate and uh, and and tied to treasury bills, but we also have some larger clients that have, uh, ins and outs during the quarter that might, uh,
Speaker Change: Kind of, give us a little bit volatility on the commercial side, but all in all, we're really happy with the the path that we're taking on on our deposit, um, growth as well as, uh, the cost of deposits from a competition. What we're seeing, you know, we're seeing a little bit more competition from, uh, a small, uh,
Speaker Change: That has operations in Florida that they're, they're, they're kind of positioning themselves as higher yielding higher higher kind of paying CDs. We're also seeing some competition from, uh, Us credit unions that that have been doing the same for the last couple of years. But uh, all in all, I, I would say that, uh, the competition is pretty rational on this side.
Speaker Change: I need to take is there anything? You want to add on the margin? I'm not sure if uh it is Timor. If that clear up your your uh question or you need more color on on other aspect of the name.
Speaker Change: No, I I I think that's helpful, thank you. Um, maybe switching to loan growth,
Speaker Change: Pretty impressive here. It seems like both in in Puerto Rico and, and on the mainland, I'm just wondering the Cadence there. Did you see a, a real pick up early in the quarter? And then maybe that tapered off towards the back end of the quarter was that growth consistent throughout the the quarter and just maybe give us a lay of the land for borrower appetite both in Puerto Rico and then maybe on your Mainland operations as well.
Speaker Change: For sure. Yep um so yeah we we had a really strong uh quarter on on loan growth, this second quarter so what drove it is, what drove it was. Primarily a very strong pipeline coming into the second quarter in both, Puerto Rico and the us. And we mentioned in the in our last earnings. Call that we we felt that we
Speaker Change: We had a very strong, uh, Pipeline and, uh, some some credits were kind of pushed into the second quarter, so that's number 1. In addition to that, uh, this quarter, we also saw an increase in commercial line, utilization from some larger commercial clients.
Speaker Change: Hey, third. Puerto Rico's economy. Continues to be doing well, and it's in solid shape.
Speaker Change: Clearly the Puerto Rico paradigm shift in Puerto Rico economy. Paradigm shift shift continues to play out and businesses are building up their capabilities and infrastructure. So some Industries are consolidating. Uh, Puerto Rico is investing in its infrastructure, etc, etc. You you've heard me talk about it in the last year and a half or so, or 2 years. So, we continue to see solid pipeline for commercial loans. Um, consumers are in good shape, so we expect loan balances to grow for the full 2025. Now closer to the 56% versus the 34% that we previously guided. So, you know, uh, things continue to be moving in the right direction and, uh,
Speaker Change: And in spite of all the global geopolitical and all the uncertainty created, by all the things that you guys know better than I do. Uh, I think, uh, Puerto Rico remains resilient and uh, and building a big big, uh, hole in the economy that was created after 10 years of, of a kind of a 20 percent, economic contraction. So, you know, sometimes sometimes the the, the, the economies numbers.
Speaker Change: Which, which are correct show. A very slow moving economy, but if you put it in the context of
Building up a whole or filling up a hole that was created after 10 years of aggregate 20% contraction, really the the economy is doing pretty strong from the consumer and the commercial side. So,
Being a bank and having a strong Capital base with, um, a very prudent and, uh, a, a risk culture, it's it's this is what we got. And uh, and we're really excited to be able to continue to grow and uh, and deploy our capital for for our customers.
Speaker Change: Great. Thank you. I'll step back.
Yep, thank you for your question, Steve more. Well next go to Kelly MTO with KBW. Please go ahead.
Kelly MTO: Hey, good morning, thanks for the question. Um you know I would I would love to Circle back to this concept of margin. Um you know looking at your balance sheet it looks like and Marissa you called out the fhlb and wholesale funding. Um you put on it looks like liquidity was somewhat elevated um during the quarter um just just thinking through the expectations of margin and how you're thinking about funding and moving the balance sheet ahead. Um, from here. Can you can you just help us with some of the Dynamics of the moving parts of maybe the the timing of the wholesale funding? And how to think about um, threading that with liquidity and Loan growth ahead given your expectations? Thank you.
Kelly MTO: For a Kelly, the driver was a volume factor for the nii to continue expanding. That's something that we have, uh, consistently sharing with the market. That Nim probably will range between 5.30 to 5.4 and compared to Prior years, Nim, there is a, a contraction, but volume will be the driver on on, on the knee. And that's what happened this quarter. And as we continue to see long growth as a, a good Dynamic here, that's also was mentioning we decided to to accelerate and and put funding into the books when with a good rate because at the end it's 4, uh, 13. We we have margin if we put it in cash but we wanted to anticipate that liquidity at that moment we were opportunistic and now we have flexibility to continue investing. Going forward with the opportunity as I mentioned before, we have a great pipeline, good potential.
Kelly MTO: And we wanted to have that flexibility, and that's why we decided to put that into into work. Okay? Yeah.
Got it, got it. And, and and and and and specifically to to your very specific question about the timing of those. It was halfway through the, through the quarter, that that we made. Those that, that call we, we, we saw the pipelines. We're seeing the, the loan, the loan originations. We see that the line, um, utilization levels, inching up, and that's when we decided,
Because we also saw the the good rate like Marissa mentioned from from our perspective.
Kelly MTO: Got it? That's, that's helpful.
Speaker Change: You guys just had such strong loan growth. I'm just wondering, um, how, how are spreads holding up? Um, any kind of like competitive Dynamics there because, um, Jose Rafael, you said, you know, you now are expecting a bit higher loan growth for the year, just wondering. I mean, I I understand some of the Dynamics and the push into to 2 Cube, but it, it really was remarkable. So I'm hoping you can discuss some of of the pricing Dynamics there and kind of how sure that new business is coming from sure. Sure, sure.
Speaker Change: Yep. So pricing Dynamics uh uh different than deposits. The market is much more competitive on the lending side. Uh, and uh, and we're seeing um,
A particularly on the uh commercial side. We're seeing a little bit more uh, pricing pressure. And that's that's part of uh also what we're seeing uh that's mostly on the pricing side, in terms of uh loan growth, well, Auto auto had a little bit of a benefit this quarter because of the announcement of the tariffs and and like it happened in the states too. There was, uh, a little bit of a, uh, let me go out and buy the car before tariffs come in type of
Speaker Change: thing, uh, but but we're still seeing a pretty steady
Speaker Change: um,
Speaker Change: Loan. Origination
Speaker Change: Pipeline there, from from the car dealers in spite of uh, some stabilization in the in the auto sales in Puerto Rico.
Speaker Change: On the, uh, as I mentioned on on the Puerto Rico commercial, we see still a good a good Pipeline and it's very well Diversified from Industries, as well as from, uh, as well as from uh, the type of kind of uh loans that they're seeking. Some of them are part of a consolidation strategy in the industry. Some of it is um building infrastructure. As I mentioned in my prepared remarks Etc.
Speaker Change: Uh, on the uh mortgage. We we really have have uh, in stop in the last several quarters and this quarter. We we did a a 22 million dollars more than the in the first half of this year. We've done 22 million dollars more than this the first half of last year and it's mostly driven by stabilization in the real estate, uh, prices. We, we, they, they've gone up and they remain relatively stable at those levels. And, uh, and our ability also
Speaker Change: To, uh, to look at the non-conforming market. And, and be able to
Speaker Change: Segment in the US and the economy in the US remains uh, resilient also and um, in spite of all the things that are going out there, so um, again, it's a, it's a pretty good, uh, economic picture that we're seeing in spite of all the clouds, and we're on the lookout, we're we're not going to, uh, we're going to be relentless in looking for opportunities to grow, but we're going to also be uh, making sure that we don't become complacent. And uh, and that's why uh, Cesar and his team on the wrist side, are keeping a close eye on all, all the risks, to make sure that we, uh, that we keep the, uh, the focus on on both sides. So, that's my, my, my my view on, on, on the loan Side Kelly.
Kelly MTO: Got it, I will step back. Thank you very much.
Speaker Change: Yep. You're welcome Kelly. Thanks for your question.
As a reminder, if you would like to ask a question, please press star 1 on your telephone keypad, we'll take our very next question. From Brett rabbit on. With Hoppy group, please go ahead.
Brett Rabbit: Hey, good morning everyone. Um, I wanted to start
I I'm, I'm good. Um, Jose wanted to start with, um, just talking about what's going on with the with the power grid here recently. And, and the the new Fortress, um, contract, can you give us any color on your your Vantage Point? You know what? What's going on with the
Brett Rabbit: This energy in Puerto Rico and just I know we've talked about this before but you you know, just any update would be helpful.
Brett Rabbit: Sure sure. Um, so what what's going on right now? Is they're trying to bring in
Brett Rabbit: uh,
Brett Rabbit: Natural gas to fill in some generators that would potentially cover the Grid in case of uh higher demands during the summer, which will happen. And that way minimize or mitigate some of the, uh, potential shutdowns that the system is having, or the, um, kind of turn Downs that, that the system is having. So that's the objective of the, uh, you know, well, documented contract that the fiscal board has canceled. But, uh, you know, but I look at, I look at this as I've said in the past, this is a long long journey for energy in Puerto Rico. This is year 5 or so they're they're still in bankruptcy, they're 2 private Resorts. Uh, the government is in the middle. So, you know, they they're in the ring and they are they are they are, they're throwing punches at each other. And, and and sometimes they pat themselves in the back, depends on on the perspective. So it's going to be noisy, but at the end,
Brett Rabbit: Just get resolved and it's going to take a while.
Speaker Change: Okay, that's helpful. Um, and then I'm from a credit.
Brett Rabbit: I'm sorry.
Brett Rabbit: I hold, that helps.
Speaker Change: Yes, that was helpful. Um, and then from a a, a credit quality perspective, um, you know the delinquencies and the early stage Auto tick back up from being really low last quarter. Um, but charge offs were really low this quarter and, uh, you know, I know the USA portfolio didn't have any charge offs, but just wanted to get um, you know, your your thoughts on the charge off levels and 2 q and if if if that was an anomaly or if this is just kind of a new a new level of of Benchmark to think about for for credit, for you guys,
Speaker Change: Yeah, let's just give you uh, the specifics on that, okay? Clarify the first quarter, I always benefit from in the Linux and non-performing Loan, uh, statistics because it's a seasonal positive quarter because of tax returns and of holiday season, Etc. So we always expect, you know, a 3, uh, ah, ah, pick up in the second quarter and third quarter uh, from the first quarter because as as seasonality, but when we compare it to last year's uh same quarter, it's much better. So it's a new uh vintage coming in better. Vintage is coming in that we adjusted back in 2022. So those new vintages with better grade performance are going to continue coming in into the statistics
Speaker Change: So that's going to continue stabilizing, I'm getting hopefully better, you know, better uh charge of rates and non-performing Loan and the equity rate that, that previous Ventures. So that's that's basically the outcome. Yep, thank you, sir.
Speaker Change: Okay. Um, so if I if I heard that correctly you know it sounds like the Outlook from here is is that that improved
Speaker Change: Um, just kind of giving the vintages, you know, in the, in the recent performance, right?
Speaker Change: Correct, correct. Correct.
Speaker Change: Okay.
Speaker Change: Um, all right, great. Appreciate all the caller.
Thank you. Have a great day.
Speaker Change: And we'll go next again to Kelly Mata with KBW, please go ahead.
Kelly MTO: Kelly your line is open. Please go ahead.
Kelly Mata: Hi. Um thanks for letting me jump back on. Um
Speaker Change: I apologize. If you you answered this more directly if so I may have missed it. Um, but um, on the on the government deposits, I think last quarter, you talked about a billion left that had signed on a couple months to stay and that was kind of the determinant.
The determining factor for kind of where you would um, end up in the the margin range. Just wondering if you have an update as to your expectations for, you know, the potential of those deposits to remain with ofg, at least for here now.
Yeah, so the the uh expectation is relatively the same as in past uh, quarters. It's uh, it's an ongoing uh kind of every 3, 4 months and we feel that uh, we are
Speaker Change: You know, we're going to see this this deposit kind of roll over in several more quarters.
Speaker Change: Okay.
Speaker Change: That's helpful. And then um, maybe if we could touch on expenses, I don't think we addressed that yet. Um, you guys did an excellent job, controlling the expenses. And you mentioned, um, you know, you've been investing a lot in, um, the tech and certain efficiencies to just drive customer experience. Just wondering, you know, if you could provide a high level update, as to, you know, what other um, sort of um, Investments are in the works. And how you think about, you know, balancing, you know, your investment in the business and your ability to serve your customers ahead with capital return, uh, to to investors given your strong Capital position.
Speaker Change: Uh, so because we have to continue to invest in technology, we need to continue to invest for the, uh, Improvement of the customer experience. We need to continue to create value for our customers, not only on the retail side, but also on the commercial side. Uh, you know, look, we we we have, we have formidable competitors that are really really, uh, aggressive and in their Investments, they have deep deeper Pockets. So we need to play it, uh, both ways. We need to invest, but we need to be very much uh, intentional in uh, eching out efficiencies uh, constantly on all our processes. And that's, that's why. Um, what we're asking internally is also to to uh, continue to transform our our culture to 1 where we have to be a lot more focused on change management and uh and challenging each other to uh to to do better. And and that's that's the best I can. I can share with you Kelly because
Speaker Change: Otherwise, I, I would have said, it's just an art and it's sometimes like a picture and sometimes it's a awful picture. But it's, it's an art, it it takes a, it takes a team to work and a team to be buying in into what we need to achieve. And, uh, and we are very, uh,
Speaker Change: Happy to have that team in Oriental right now and uh excited to uh continue to grow and to show value to our customers and uh and and shareholders as well.
Speaker Change: Got it last very little ticky-tacky. Question from me for Marissa is um the tax rate guidance that you provided in the earnings release. Um you did have the tax benefit in 1 Q was wondering if that was
Speaker Change: Including or excluding that, I just just wanted to get clarification, so I can model the second half of the year ahead.
Speaker Change: excuse me, the expectation that we share with you is
Speaker Change: 24.9 for the year and and and it doesn't have any, um,
Speaker Change: Discrete items included within that. I'm not sure if that's your question, but is, uh, is the flat rate for the year without any any benefits. So the excluding that 1.7 million benefit that you had. Okay, perfect. Thank you so much
Speaker Change: Okay, thank you. I will step back. Thank you guys. Great quarter.
Speaker Change: Yeah, thank you. Thank you. Thank you for your questions, Kelly. At this time. There are no further questions. I will now turn the call back over to Jose. Rafael Fernandez for closing remarks.
Speaker Change: Thank you, operator. Thanks again for to all our team members and thank to all our stakeholders, who have listening looking forward to see you next quarter, have a great day.
Speaker Change: Thank you, and ladies and gentlemen, that does conclude today's conference. We appreciate your participation and you may. Now disconnect