Popular, Inc.

Jordan, and I'll be coordinating your call today. If you'd like to register an audio question, you may do so by pressing star followed by one on your telephone keypad. I'm now going to hand over to Paul Cardillo, Investor Relations Officer of Popular, to begin. Paul, please go ahead.

Good morning, and thank you for joining us. With us on the call today is our CEO, Ignacio Alvarez, our CFO, Carlos Vazquez, and our CRO, Lidio Soriano. They will review our results for the third quarter and then answer your questions. Other members of our management team will also be available during the Q&A session. Before we begin, I would like to remind you that on today's call, we may make forward-looking statements that are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements are set forth within today's earnings press release and are detailed in our SEC filings. You may find today's press release and our SEC filings on our webpage I will now turn the call over to our CEO, Ignacio Alvarez.

Good morning, and thank you for joining the call. We are pleased to report another strong quarter. Net income totaled $137 million, which includes the effect of an after-tax goodwill impairment of $16 million in our U.S.-based equipment leasing subsidiaries. Excluding this impact, net income would have been $153 million, $2 million more than the previous quarter. The increase in net income was driven by lower operating expenses and higher net interest income, offset in part by a higher provision for credit losses and higher income taxes. We grew loan balances by $1 billion during the quarter. BPPR generated loan growth across almost all business segments, reflecting the continued strength of the local economy. Popular Bank achieved growth in commercial and construction loans. Year to date, loan balances have grown by $2 billion. Our net interest margin decreased seven basis points to 3.07% in the quarter, primarily due to a 27 basis points increase in deposit costs. This was partially offset by higher loan balances and the repricing of loans in a higher interest rate environment. Non-interest income remains solid and continues to benefit from steady customer transactional activity. Excluding the goodwill charge, operating expenses decreased $17 million driven by lower professional fees and customer activity-related fees. Credit quality trends generally remain positive. Non-performing loans decreased once again, and net charge-offs remain well below pre-pandemic levels. While we are beginning to see some credit normalization in the Puerto Rico unsecured consumer segments, we are attentive to the evolving credit landscape and have taken action to address these developments. Deposit balances at quarter end decreased by approximately $700 million, primarily due to a lower level of Puerto Rico public deposits. However, average deposits for the period increased by $1.4 billion, also driven by public deposit activity. Borrowings decreased by approximately $300 million due to the redemption of senior notes during the quarter. Tangible book value per share ended the quarter at $60.20, a decrease of $1.17 per share, as net income for the period was offset by an increase in the unrealized losses in our investment portfolio. Regulatory capital levels remained strong. Our common equity tier one ratio in the third quarter was 16.8%. Please turn to slide four. I'm very pleased to highlight that during the third quarter, we crossed a significant milestone in Puerto Rico and now serve more than 2 million unique customers. Utilization of digital channels among our retail customers also remains strong. Active users on our MiBanco platform exceeded 1.1 million or 54% of our customer base. In addition, we continue to capture more than 60% of our deposits through digital channels. In the third quarter, consumer spending remained healthy with combined credit and debit card sales up 6% compared to the third quarter of 2022. Our auto and lease loan balances increased by 104 million compared to the second quarter as demand for cars has continued to be strong in Puerto Rico and available inventories have improved. Mortgage loan balances at BPPR increased by 121 million sequentially in the third quarter driven primarily by home purchase activity. The Puerto Rico economy performed well during the third quarter. Business activity is solid and remains in good shape as reflected in the continued positive trends in total employment and other economic data. The tourism and hospitality sector continues to be a source of strength for the local economy. There are roughly 51 billion of hurricane disaster recovery infrastructure and pandemic-related funds that have yet to be dispersed. The pace of disbursement of these funds has accelerated, and we anticipate that these funds will support future economic activity for several years. As this infrastructure investment in the economy expands, we are well-positioned to serve the needs of our customers and to benefit from such activity. In short, we are pleased with our results for the quarter, particularly our strong loan growth in both Puerto Rico and in the U.S., as well as the continuous strength of our deposit base. We are also encouraged by the strong performance of the Puerto Rico economy. We remain optimistic about the future of our primary market and our ability to manage and serve the needs of our growing customer base. I now turn the call over to Carlos for more details on our financial results.