Popular, Inc.

Good morning, and thank you for joining us. With us on the call today is our CEO, Ignacio Alvarez, our President and COO, Javier Ferrer, our CFO, Jorge Garcia, and our CRO, Lidio Soriano. They'll review our results for the first 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 during today's call, we may make forward-looking statements regarding Popular, such as projections of revenue, earnings, credit quality, expenses, taxes, and capital structure, as well as statements regarding Popular's plans and objectives. These statements 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 release and our SEC filings. You may find today's press release and our SEC filings on our webpage at popular.com. I will now turn the call over to our CEO, Ignacio Alvarez.

Thank you, Paul. Good morning to all. Before I begin, I'd like to apologize. I'm probably hearing my voice. I'm not feeling 100% today. I'm a bit out of the weather. So I've asked Javier to cover the business highlights. But before turning over to him, I would like to make some comments regarding the announcement we made in February about my upcoming retirement on June 30th and the board's appointment of Javier as my successor. Javier is a proven leader and has assumed increasing responsibilities and has demonstrated that he has the experience and vision to lead Popolar. He fosters a collaborative, high-performance culture and will infuse new energy while ensuring a smooth transition into the CEO role. I am grateful for his support and friendship, which began close to 35 years ago, and I am confident that under his leadership, Popolar will continue to thrive. I have spent 15 incredibly rewarding years at Popolar, Leading this extraordinary organization since 2017 has been a privilege and the opportunity of a lifetime. I am immensely proud of what we have achieved in recent years, thanks to the dedication and the hard work of our entire team. While there's no perfect time to retire, I am confident that the timing is right for this transition. Papa Laura is in a strong position and well prepared for the future. With that, I hand it over to Javier.

Good morning. Thank you, Nacho, for those incredible words. It has been one of my life's true privileges, a gift, to enjoy your company as a mentor, a dear friend, and a partner. That said, please turn to slide three to discuss highlights of the first quarter. Our net interest income increased by $15 million, and the net interest margin expanded by five basis points to 3.4 percent, mainly driven by lower deposit costs. Loan balances increased by $146 million, primarily driven by the commercial and construction segments in Poblar Bank. Deposit balances grew by $935 million, with both banks contributing to the increase. Credit quality improved. led by lower net charges and early delinquency. During the quarter, we repurchased 122 million in shares at an average price of roughly $96 per share. Today, we have repurchased 340 million of our current 500 million authorization. Tangible book value per share increased by nearly $4 to approximately $72 driven by our quarterly net income and lower unrealized losses in our investment portfolio, offsetting part by share repurchase activity and dividends in the period. Please turn to slide four. Before commenting on the business activity for the quarter, we would like to address the recent volatility due to tariff uncertainty, which has impacted markets and raised recession concerns. We are closely monitoring the situation and communicating with clients about its potential effects. Regardless, our strong balance sheet, the diversified business mix, and extraordinary team have consistently enabled us to perform well in uncertain times. This is the time to be focused on supporting and serving our clients and to demonstrate the strength of our great institution. As of the end of the first quarter, This activity in Puerto Rico continues to be solid as reflected in the favorable trends in total employment, consumer spending, and other key economic data. The current employment rate of 5.5% continues to hover around the all-time lows. Consumer spending has been resilient and remains healthy. Combined credit and debit card sales for Banco Popular customers increased by approximately 6% compared to the first quarter of 2024. Mortgage loan balances at Banco Popular increased by 136 million in the first quarter, driven primarily by home purchase activity. Our auto loan and lease balances increased by 21 million compared to the fourth quarter, as demand for new cars continue to be strong in Puerto Rico. The tourism and hospitality sector continues to be a source of strength for the local economy. When compared to the same period, A year ago, passenger traffic at the San Juan International Airport increased by 11% during the quarter, and as of February, the average daily rate and revenue per available room, or REF PAR, increased by 10% and 9%, respectively. Hotel occupancy exceeded 75%. We continue to expect that the ongoing disbursement of federal disaster Puerto Rico for several years. And on that note, I turn the call over to Jorge for more details on our financial results.